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William C. Mitchell

Senior Executive Vice President, Consumer Lending at FIRST US BANCSHARES
Executive

About William C. Mitchell

William C. Mitchell is Senior Executive Vice President, Consumer Lending at First US Bank (FUSB). He was named SEVP, Consumer Lending in September 2022 after serving as SEVP, Consumer Banking from August 2020–September 2022 and previously in the Consumer Lending role from January–August 2020; he led Acceptance Loan Company, Inc. (ALC), the Bank’s former subsidiary, as President & CEO from February 2008–January 2020 and worked at ALC since May 1997 before transferring to the Bank in January 2020 . Age: 59 (2025 proxy) . Tenure at FUSB began in 1997 (corporate profile) . Pay-versus-performance indicates Company TSR improved from 101.29 (as-of 2023) to 126.10 (as-of 2024), while net income was $8.485 million (2023) and $8.170 million (2024) .

Past Roles

OrganizationRoleYearsStrategic Impact
First US BankSEVP, Consumer BankingAug 2020–Sep 2022Led consumer banking; transition preceding current Consumer Lending remit
First US BankSEVP, Consumer LendingJan–Aug 2020; reappointed Sep 2022Oversight of consumer lending strategy and growth initiatives
Acceptance Loan Company, Inc. (ALC – former bank subsidiary)President & CEOFeb 2008–Jan 2020 (Interim Nov 2007–Feb 2008)Ran ALC; drove consumer finance operations and dealer relationships
Acceptance Loan Company, Inc.Various rolesMay 1997–Jan 2020Progressive leadership culminating in CEO; foundational consumer lending expertise

External Roles

No public company board or external directorships disclosed in Company proxy biographies for Mitchell .

Fixed Compensation

Component20242023
Base Salary$260,200 $252,200
Target Bonus % of Salary35.0% 35.0%
Threshold/Max Bonus %17.5% / 52.5% 17.5% / 52.5%
Actual Cash Incentive Paid$68,253 $118,927
Stock Awards (grant-date fair value)$41,640 $39,400
All Other Compensation (total)$19,276 $20,219

All Other Compensation Breakdown (select items):

  • 401(k): $13,800 (2024); $13,200 (2023)
  • Life Insurance Premiums: $564 (2024 & 2023)
  • LTD Insurance Premiums: $326 (2024; new coverage effective Dec 2024)
  • AD&D: $96 (2024 & 2023)
  • Automobile Reimbursements: $3,174 (2024); $5,036 (2023)
  • Cell Phone Fees: $1,170 (2024 & 2023)
  • Other: $146 (2024 radio subscription); $153 (2023 radio subscription)

Performance Compensation

Metric (2024 CIP)WeightingThresholdTargetStretchActualPayout
Consolidated pre-tax income25% $9,840,000 $12,300,000 $14,760,000 $10,754,000 $68,253 (total cash incentive earned)
Pre-tax ROAA25% 0.90% 1.12% 1.34% 1.00%
Pre-tax ROATE15% 11.56% 14.45% 17.34% 12.33%
Net loan growth – indirect lending15% $24,000,000 $30,000,000 $36,000,000 ($2,220,000)
Discretionary20% 80% 100% 120% Approved at 120% (Mitchell)

Notes:

  • Discretionary factors included reorganization and cost control initiatives, TSR improvement in 2024, and expansion of indirect lending dealer relationships .
  • 2025 CIP continues identical weightings for Mitchell (Target bonus 35% of 2025 base salary; performance thresholds ~80% of budget; max ~120%) .
  • Annual programs include clawback on restatement, material inaccuracy, or certain misconduct .

Equity Ownership & Alignment

ItemDetail
Total Beneficial Ownership (as of Mar 6, 2024)66,171 shares; 1.14% of class
Components (2025 proxy footnote)8,204 shares in 401(k); 24,500 options exercisable within 60 days; 7,201 unvested restricted shares (voting rights); 1,209 spouse shares (disclaimed)
Hedging/PledgingProhibited by Insider Trading Policy; none of directors or executive officers currently engage in hedging or pledging
Equity Award RepricingProhibited under 2023 Incentive Plan (no option/SAR repricing or cash-out under Nasdaq rules)
Ownership GuidelinesFormal guidelines disclosed for non-employee directors (≥400 shares); executive ownership guidelines not disclosed

Outstanding Equity Awards at FY 2024 Year-End (Unvested RS and Options):

Award TypeGrant DateQuantityTermsStatus/Value
Restricted Stock02/22/20221,067Vests in equal increments on first 3 anniversaries$13,434 MV at $12.59 close (12/31/24)
Restricted Stock02/10/20232,667Vests in equal increments on first 3 anniversaries$33,578 MV
Restricted Stock02/09/20244,000Vests in equal increments on first 3 anniversaries$50,360 MV
Stock Options (Exercisable)02/24/20166,800$8.30 strike; 10-year term; vested over first 3 anniversariesExpires 02/24/2026
Stock Options (Exercisable)02/22/20177,000$14.11 strike; vested over first 3 anniversariesExpires 02/22/2027
Stock Options (Exercisable)02/12/20185,100$11.71 strike; vested over first 3 anniversariesExpires 02/12/2028
Stock Options (Exercisable)02/27/20195,600$10.01 strike; vested over first 3 anniversariesExpires 02/27/2029

Vesting and potential selling pressure:

  • 2022 RSU tranche final vest expected by 02/22/2025; 2023 grant tranches vest on 02/10/2025–2027; 2024 grant tranches vest on 02/09/2025–2027 (equal increments per plan) .
  • Multiple option blocks approach expirations in 2026–2029, potentially influencing exercise/sale timing .

Employment Terms

ProvisionKey Terms
Employment AgreementCEO has employment agreement; Mitchell does not. Mitchell is covered by Change-in-Control (CIC) agreements .
CIC (Second Amended & Restated, Mar 1, 2022; prior amendment Feb 22, 2021)If qualifying termination within 18 months post-CIC: lump sum equal to 200% of (base salary + target bonus), pro-rata target bonus for year of termination, and reimbursement of health insurance continuation; if voluntary resignation without “good reason” within 6 months post-CIC: 100% of Severance Benefit .
Non-Compete/Non-SolicitApplies during employment and 2 years post-termination if 200% payout; 1 year if 100% payout .
Equity in CICRestricted stock fully accelerates upon CIC at Compensation Committee discretion; full vest on death, disability, or retirement; forfeiture on other terminations .
Clawback PolicyAdopted Nov 2023; recovery of erroneously awarded incentive comp for covered officers on financial restatement (3-year lookback) .
Perquisites & LTDLimited perqs; guaranteed-issue LTD policy effective Dec 2024 with monthly benefits of $8,195 for Mitchell .

Performance & Track Record

Indicator202220232024
TSR (value of initial $100)83.33 101.29 126.10
Net Income ($ thousands)$6,864 $8,485 $8,170

Revenue trend (Company-level):

MetricFY 2020FY 2021FY 2022FY 2023FY 2024
Revenues ($USD)$4,544,000 *$3,371,000*$3,451,000*$3,381,000 *$3,583,000 *

*Values retrieved from S&P Global.

Compensation Committee Analysis, Peer Group, and Say‑on‑Pay

  • Compensation Committee members (2025): Bruce N. Wilson (Chair), J. Lee McPhearson, Jack W. Meigs, Aubrey S. Miller, Staci M. Pierce .
  • 2024 Say‑on‑Pay approval: ~86% support; Committee made no significant structural changes for 2025 .
  • Compensation peer group (2024; selected community banks in similar geographies/size):
    CompanyAssets (mm)Market Cap (mm)
    Colony Bankcorp, Inc.$3,053 $272
    Investar Holding Corporation$2,815 $182
    Southern States Bancshares, Inc.$2,447 $291
    First Community Corporation$1,828 $172
    Peoples Bancorp of North Carolina, Inc.$1,636 $168
    Citizens Holding Company$1,405 $51
    Auburn National Bancorporation, Inc.$975 $65
    Bank of the James Financial Group, Inc.$969 $62
    Affinity Bancshares, Inc.$843 $138
    United Bancorp, Inc.$819 $74
    Village Bank and Trust Financial Corp.$737 $70
    Bank of South Carolina Corporation$640 $68

Compensation governance practices include independent consultant support (Willis Towers Watson), clawbacks, no repricing, no tax gross-ups, restrictions on hedging/pledging, and limited perqs .

Risk Indicators & Red Flags

  • Hedging/pledging prohibited; currently no such transactions among directors or executive officers .
  • No tax gross-ups; no active SERPs; equity repricing prohibited .
  • Negative indirect lending loan growth in 2024 (−$2.22mm) despite discretionary overachievement—watch for execution on consumer lending expansion in 2025 .
  • Multiple option expirations 2026–2029 could prompt exercises/sales, creating potential insider selling windows .

Investment Implications

  • Pay-for-performance alignment is reasonably tight: incentives tied to pre-tax profitability, ROAA/ROATE, and business-unit loan growth, plus a disciplined clawback and hedging/pledging ban—supportive of investor alignment .
  • Retention risk mitigated by 3-year RS vesting cadence and robust CIC protection (200% of salary+target bonus, with non-compete), though discretionary bonuses can buffer underperformance in unit-specific metrics .
  • Ownership is meaningful for a community bank NEO (1.14% as of March 2024) with sizable exercisable option inventory and unvested RS; watch February vesting dates (2025–2027) and 2026–2029 option expirations for potential selling pressure cues .
  • TSR improved in 2024 while net income dipped modestly; sustaining ROAA/ROATE targets and reversing indirect lending contraction will be key execution tests for Mitchell’s remit—2025 CIP maintains focused metrics and accountability .