Horizon Bancorp Adopts Nonqualified Deferred Compensation Plan

Horizon Bancorp (NASDAQ:HBNC) has recently announced the adoption of a Nonqualified Deferred Compensation Plan. This plan, intended for members of a select group of management or highly compensated employees, aims to serve as an unfunded, nonqualified deferred compensation solution. The adoption of this plan aligns with the Employee Retirement Income Security Act of 1974 (“ERISA”) under Sections 201(2), 301(a)(3), and 401(a)(l).

The company, with an Employer Identification Number (EIN) of 35-1562417, sought to comply with the requirements of Section 409A of the Internal Revenue Code and its accompanying regulations. Principal Life Insurance Company recommended that the company seek legal and tax advice from professional advisors before implementing the plan.

The adoption agreement encompasses various key designations and elections. It includes effective dates for the establishment and amendment of the Plan, specifying provisions for base salary deferral, performance-based compensation, and employer discretionary contributions. The agreement also outlines vesting schedules based on years of service, with full vesting occurring at age 65, in case of death, or due to disability.

Furthermore, provisions for deferred compensation accounts, distribution options in the event of separation from service, disability, death, or unforeseeable emergencies have been detailed. The agreement also allows for in-service distributions, specifying permissible accounts and payment methods, such as lump-sum payments or annual installments over a set term.

The plan’s construction will adhere to the laws of the State/Commonwealth of Indiana, unless superseded by ERISA and relevant provisions of the Internal Revenue Code. The agreement was signed by Horizon Bancorp’s authorized representative, Diane L. Garwood, on December 20, 2024.

This strategic move by Horizon Bancorp underscores its commitment to offering competitive compensation packages to its key employees, ensuring their financial security and well-being within the organization.

This article does not constitute legal, tax, investment, or accounting advice, and for specific guidance on these matters, relevant professional advisors should be consulted.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Horizon Bancorp’s 8K filing here.

About Horizon Bancorp

Horizon Bancorp, Inc operates as the bank holding company for Horizon Bank that engages in the provision of commercial and retail banking services. The company offers checking, saving, money market, certificate of deposits, individual retirement accounts, and time deposits, as well as non-interest- and interest-bearing demand deposits.