Business Context and Reporting Period
This Form 8-K filing by First Internet Bancorp covers the event date of July 29, 2013. The report details a corporate governance action regarding the termination of Supplemental Executive Retirement Agreements (SERAs) for the Company's Chairman and CEO, David B. Becker, and three other senior executives.
Key Financial Metrics
The filing does not provide standard financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity. The only financial figures disclosed relate to the specific executive compensation event:
- Accrued Benefit for CEO: $519,950
- Aggregate Accrued Benefit for Three Other Executives: $199,223
- Total Accrued Liability: $719,173
Material Changes
The material change reported is the termination of the SERAs entered into in 2005 and 2008. The Company states that this termination will not impact results of operations because the accrued amounts were fully expensed as of July 31, 2013, and no further accruals will occur.
Outlook, Risks, and Unusual Items
Payment Terms: In compliance with Section 409A of the Internal Revenue Code, the accrued benefits are scheduled for payment on August 1, 2014. Payment is contingent upon the executives executing a release satisfactory to the Company, waiving further liability against the Bank and its affiliates.
Unusual Items: The filing notes that these terminated agreements were the only supplemental executive retirement arrangements held by the Company or its subsidiary.
Investor Verification Checklist
- Verify the total cash outflow of approximately $719,173 scheduled for August 1, 2014.
- Confirm that the accrued liabilities were fully expensed in the financial statements prior to July 31, 2013.
- Ensure that the executives have executed the required release forms to trigger the payment.
- Review subsequent filings to confirm no new executive retirement arrangements have been established.