David Reetz
About David Reetz
David J. Reetz (age 64) served as Chief Lending Officer (CLO) of Isabella Bank and has been with the Bank since 1987, holding the CLO role since 2003; he retired effective July 1, 2025 . He holds a Bachelor’s in Business Administration from Ferris State University and previously worked at GreenStone Farm Credit Services in lending . Company performance context during his recent tenure: TSR declined from a $100 base value of 131 in 2022 to 127 in 2023 and 119 in 2024, while net income fell from $22.238 million (2022) to $18.167 million (2023) and $13.889 million (2024) .
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| TSR value of $100 initial investment ($) | 131 | 127 | 119 |
| Net Income ($000s) | 22,238 | 18,167 | 13,889 |
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Isabella Bank | Chief Lending Officer | 2003–2025 | Led enterprise lending strategy; >40 years lending experience |
| Isabella Bank | Branch Manager (Clare) | 1993 | Branch leadership; relationship and portfolio growth |
| Isabella Bank | Commercial Loan Officer | 1987–1993 | Originations and portfolio management in commercial lending |
| GreenStone Farm Credit Services | Loan Officer | 1983–1987 | Agricultural/commercial lending foundation |
External Roles
| Organization | Role | Years |
|---|---|---|
| Summit Clubhouse Advisory Board | Member | Not disclosed |
| Mt. Pleasant Rotary Club | Member | Not disclosed |
| Exchange Club of Isabella County | Past President | Not disclosed |
| Isabella County Co-Expo Board | Treasurer | Not disclosed |
Fixed Compensation
- Reetz was not a named executive officer (NEO) in recent proxies; individual base salary, target bonus, and grant values for CLO were not disclosed. NEO tables covered CEO, Bank President, and CFO .
- Executive Cash Incentive Plan: applies to President & CEO, Bank President, and CFO; maximum potential payouts range 22%–35% of salary; goals include personal and corporate measures set by the Compensation & Human Resource Committee (CHRC) .
- Restricted Stock Plan (RSP): equity bonus plan for executive officers/key employees; maximum annual award of 25%–40% of salary; grants based on satisfaction of Board-established performance targets; three-year vesting; subject to clawback .
- Clawback Policy: recoupment of cash/equity tied wholly or partly to financial reporting measures in case of material noncompliance resulting in restatement; applies to SERP, Cash Incentive Plan, and RSP .
Performance Compensation
| Plan | Eligibility | Max Award % of Salary | Performance Metrics | Vesting | Notes |
|---|---|---|---|---|---|
| Executive Cash Incentive Plan | President & CEO, Bank President, CFO | 22%–35% | Personal and corporate goals set by CHRC; includes financial measures such as net income | N/A | Structure disclosed; CLO specifics not disclosed |
| Restricted Stock Plan (RSP) | Executive officers/key employees | 25%–40% | Board-established performance targets; grants lapse/adjust if targets not met | 3 years | 2023 stock award financial goals were not met (no vesting for that tranche) |
| SERP (deferred comp) | Select management/highly compensated | N/A | Annual/discretionary credits per participation agreements | Default 100% vesting upon normal retirement, retirement, involuntary termination w/o cause, death, disability, or change in control | Includes restrictive covenants and lump-sum payment terms |
Equity Ownership & Alignment
| Date | Security | Shares | Ownership Type | Price | Transaction | Source |
|---|---|---|---|---|---|---|
| 2021-10-27 | Common stock | 1,754 | Direct | $27.00 | Sale | |
| 2021-10-27 | Common stock | 9,000 | Direct (post-transaction reported holdings) | N/A | Holdings |
- Options: No options reported in recent proxy tables; equity incentives primarily via restricted stock (RSP) .
- Pledging/hedging: No pledging or hedging disclosures identified for Reetz; security ownership tables cover directors/NEOs and group totals without a specific line for CLO .
- Stock ownership guidelines: Directors must invest at least 25% of board fees in common stock via Directors Plan/DRIP; executive officer-specific ownership guidelines not disclosed .
Employment Terms
| Topic | Key Terms | Source |
|---|---|---|
| Role tenure | Employed since 1987; CLO since 2003; retirement effective July 1, 2025 | |
| Contract term | Individual CLO employment agreement terms not disclosed | |
| Change-in-control agreements | No separate CIC agreements for executive officers | |
| SERP vesting/payment | Default 100% vesting upon normal retirement/retirement/involuntary separation w/o cause/death/disability/change in control; lump-sum payment within 90 days (subject to six-month delay for specified employees) | |
| RSP CIC treatment | 100% vesting upon change in control; full vesting of nonvested shares if involuntary termination without cause or voluntary for good reason after CIC | |
| Clawback | Applies to cash/equity tied to financial reporting measures (SERP credits tied to such measures, Cash Incentive, RSP) in case of restatement | |
| Non-compete/Restrictive covenants | SERP includes restrictive covenants limiting competition and certain activities |
Investment Implications
- Long-tenured lending leader exiting July 2025; succession named (Huenemann), reducing near-term retention risk but introducing transition execution risk in loan growth and credit discipline as responsibilities shift .
- Incentive structures favor conservative alignment: equity via restricted stock with three-year vesting and clawback; no CIC severance multipliers and no separate CIC agreements limit windfall risk, while SERP/RSP accelerate vesting on CIC under defined conditions .
- Insider selling pressure appears limited historically: one reported open-market sale of 1,754 shares in 2021 with 9,000 shares held thereafter; no recent Form 4 activity found, suggesting low near-term selling flow tied to Reetz personally .
- Company performance context indicates net income and TSR pressure from 2022–2024; incentive plans reference net income among metrics, which may constrain equity awards when goals are not met (e.g., 2023 RSP goals not achieved), supporting disciplined pay-for-performance posture .