Independent Banker - August 2021 - 17

now might be more interested in
supplemental medical products like a
critical illness plan than they would be
in an employer helping them pay off
student loans, " Jilek says.
In addition to the more traditional
benefits offerings of medical, life
insurance and 401(k) plans, here are
seven benefits that may not be on
community banks' radars that could
attract and retain the talent they need.
1. Employee stock ownership
plans (ESOPs)
ESOPs have a number of significant
tax benefits for both employees and
employers, according to the National
Center for Employee Ownership.
Employees pay no tax on their
contributions, only the distribution
of their accounts, and that can be at a
favorable rate. Employers can deduct
for stock contributions to employees,
as well as for cash contributions to
ESOP reserves or to buy back shares,
among other tax deductions.
Alpine Bank in Glenwood Springs,
Colo., has an ESOP that's free to
employees after one year of service,
says Kristi Shelton, executive
vice president. The $5.6 billionasset
community bank makes a
discretionary contribution each year,
which historically has been 7% of
total salaries.
" [Our ESOP] is an important part
of our culture, as well as a valuable
retirement benefit plan, " Shelton says.
" Alpine gains long-term employees
and the employees benefit from the
company's success. "
Having an ESOP or some sort of
ownership structure for employees is
" more meaningful now than it's ever
been, " says Jason Lavender, senior
vice president, director of strategic
initiatives at $752 million-asset TFNB
Your Bank for Life in McGregor, Texas.
" COVID has certainly changed
how employees view their job,
" Having ownership in the success of our bank
through an ESOP changes the mindset of
employees. It's not just a job for them. "
-JASON LAVENDER, TFNB YOUR BANK FOR LIFE
responsibilities and life in general, "
he says. " Having ownership in the
success of our bank through an ESOP
changes the mindset of employees. It's
not just a job for them. "
2. Education-related benefits
Education-related benefits can pay
off for both employees, who gain new
skills and insights, and employers,
who keep talented workers instead of
having to find new ones.
Julie Waddle, assistant vice
president and digital marketing
manager at $570 million-asset FNB
Community Bank of Midwest City,
Okla., is taking advantage of the
bank's tuition assistance benefit
to attend the Graduate School of
Banking at Colorado. " I feel extremely
fortunate for this opportunity and
working for a financial institution
that values continued learning and
education, " she says.
Bank of Clarke County in Berryville,
Va., pays the cost of continuing
education classes for any employee
who holds a professional license such
as a CPA and is required to complete
classes to maintain the certification,
says Kaley P. Crosen, executive vice
president and chief human resources
officer. The $1.2 billion-asset bank
also reimburses all tuition fees
for community college courses in
business or banking and half for those
at four-year institutions.
And thanks to the Consolidated
Appropriations Act passed by
Congress in December, all of these
education-related benefits will
continue to be tax-free for employees
through 2025.
3. Pet insurance
QUICK STAT
7%
The typical percentage of
total salaries that Alpine Bank
contributes to its ESOP annually
Source: Alpine Bank
More and more Americans are buying
health insurance for their pets. The
pet insurance market has grown an
average of 24.2% over the past five
years. In fact, these plans covered
3.1 million pets in 2020, according
to the North American Pet Health
Insurance Association.
While there is a variety of pet
insurance policies, they are generally
designed to cover accidents, illnesses
and hospital visits, according to
Canine Journal.
The reasons to obtain pet insurance
are considerable. The average cost of
unexpected veterinary care for dogs
independentbanker.org Q 17
http://www.independentbanker.org
Independent Banker - August 2021

Table of Contents for the Digital Edition of Independent Banker - August 2021
