Neal Koplin
About Neal Koplin
Neal D. Koplin is Senior Executive Vice President and Chief Banking Officer of Peoples Financial Services Corp. (PFIS) and Peoples Security Bank & Trust; age 64, with 43 years in banking and 11 years at the Bank. He was appointed Chief Banking Officer in December 2019 after serving as EVP and Lehigh Valley Division Head since August 2014; he holds a BA in Accounting from Moravian University and oversees multi‑region retail and commercial banking, deposits, lending, cash management, and investment products . Company performance during his recent tenure: cumulative TSR index value rose to 121.93 in 2024 (vs. 110.97 in 2023), net income was $8,498k in 2024, and ROATCE was 2.63% in 2024, with prior years ranging from 10.30% to 14.80% . PFIS’s balance sheet expanded post‑merger: total assets grew from $3.369B (2021) to $5.160B (Q3 2025), loans from $2.301B to $3.977B, and deposits from $3.369B to $5.160B, highlighting scale and integration momentum .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Peoples Security Bank & Trust | EVP & Lehigh Valley Division Head | Aug 2014–Dec 2019 | Led Lehigh Valley division; expanded regional market presence and commercial relationships |
| Peoples Security Bank & Trust | Senior EVP & Chief Banking Officer | Dec 2019–Present | Oversees personal and business banking across NE PA, Lehigh Valley, Greater Delaware Valley, Central PA, NJ, NY; responsible for deposit, lending, cash management and investment product suites |
| National Penn Bank | Various executive positions | Not disclosed (30+ years) | Senior leadership in commercial banking; foundation for PFIS role execution |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Home Easton | President, Board of Directors | Not disclosed | Community development leadership; local impact in housing and social services |
| Lehigh Valley Economic Development Corporation | Board Member | Not disclosed | Regional economic development; business attraction and retention |
| LVIP; Saint Francis Retreat House; Touchstone Theatre; New Bethany Ministries | Board/Leadership roles | Not disclosed | Broadened civic footprint; relationship capital supporting client acquisition and brand |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 290,000 | 295,800 | 295,800 |
| Target Bonus (% of Base) | 30% | 30% | 30% |
| Bonus (Discretionary, $) | 0 | 0 | 73,950 |
| Non‑Equity Incentive Plan Compensation ($) | 78,300 | 28,841 | 0 |
| All Other Compensation ($) | 30,628 | 36,886 | 35,117 |
| Total Compensation ($) | 570,731 | 537,566 | 479,293 |
- 2024 perquisites included country club membership ($12,750), automobile allowance ($2,724), 401(k) contributions and holiday bonus; see All Other Compensation detail .
- Cash bonus design in 2024 was discretionary due to the FNCB merger integration (no formal goals set) .
Performance Compensation
Incentive Program Design and Metrics
- 2024 Cash Incentive Plan goals were not set due to merger; committee exercised discretion on payouts .
- Company identifies EPS growth, asset growth, revenue growth, loan/deposit growth, expense-to-asset ratio, NPA and charge-off ratios as top performance measures linking “compensation actually paid” to outcomes .
Equity Grants (Recent)
| Grant Date | Type | Shares (#) | Grant Value ($) | Vesting |
|---|---|---|---|---|
| Feb 21, 2024 | Time‑vested Restricted Stock | 550 | 22,165 (at $40.30 close) | Ratable over 3 years; installments vest March 11, 2025/2026/2027 |
| 2022–2025 Cycle | Performance‑vested RSUs (target) | 1,184 | Not disclosed | Earned based on 3‑year performance ending Dec 31, 2025 |
Outstanding/Unvested at 12/31/2024
| Component | Amount |
|---|---|
| Restricted Stock (unvested shares) | 151 (vest Mar 11, 2025) |
| Restricted Stock (unvested shares) | 339 (vest Mar 11, 2025 & 2026) |
| Restricted Stock (unvested shares) | 550 (vest Mar 11, 2025, 2026, 2027) |
| Performance‑vested RSUs (target) | 1,184 (3‑yr ending Dec 31, 2025; assumes target) |
Equity Vesting Realized in 2024
| Metric | Amount |
|---|---|
| Time‑vested Restricted Stock vested (shares; $) | 474 shares; $19,534 (closed $41.21 on Mar 11, 2024) |
| Performance‑vested RSUs vested (shares; $) | 530 shares; $27,125 (closed $51.18 on Dec 31, 2024) |
Equity Ownership & Alignment
| Category | Amount | Notes |
|---|---|---|
| Total Beneficial Ownership (shares) | 9,638.7217 | Less than 1% of outstanding shares |
| ESOP Allocated (shares) | 368.9157 | Included in beneficial tally |
| Restricted Shares (unvested, shares) | 1,040 | Included in beneficial tally |
| Performance RSUs (target, units) | 1,184 | Not counted as shares until earned |
| Shares in self‑directed IRA (shares) | 400 | Included in beneficial tally |
| Hedging/Pledging | Hedging/monetization prohibited by policy; pledging not specifically disclosed | |
| Ownership Guideline | Executives expected to own ≥2× base salary; 5‑year compliance window; individual compliance status not disclosed |
Employment Terms
| Provision | Koplin Employment Agreement (Aug 27, 2014) | 2025 Severance & Change‑in‑Control Plan (Tier II; adopted Sep 2, 2025) |
|---|---|---|
| Base Salary reference | $295,800 in 2024 | Not applicable (plan‑based) |
| Target Annual Bonus | 30% of base salary | Plan uses “target bonus” for severance formula |
| Non‑CIC Severance | 12 months of base salary ($295,800 if terminated 12/31/2024), plus SERP $43,173/yr for 15 yrs; COBRA not specified in agreement | 12 months base salary; pro‑rata annual bonus; 12 months COBRA reimbursement |
| CIC Severance | 3 years of base salary ($887,400 if terminated 12/31/2024, CIC), plus accelerated equity and SERP $55,661/yr for 15 yrs | Lump sum equal to 24 months base salary + 2× target bonus; 24 months COBRA; subject to release |
| Restrictive Covenants | Non‑solicitation 12 months post‑termination; 36 months after CIC | Separation agreement requires 12‑month non‑solicitation; benefits conditioned on release |
| Perquisites | Company auto (allowance or vehicle) and country club membership reimbursement; business expense reimbursement | Not applicable |
- The 2025 Plan states benefits are not duplicative of other severance entitlements and are tiered by role; Tier II includes the Chief Banking Officer .
- Clawback policies (Dodd‑Frank and internal plan) cover recovery of incentive compensation on restatements and misconduct .
Performance & Track Record
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Company TSR (index value) | 75.70 | 112.19 | 113.83 | 110.97 | 121.93 |
| Net Income ($000s) | 29,354 | 43,519 | 38,090 | 27,380 | 8,498 |
| ROATCE (%) | 14.80% | 12.94% | 14.80% | 10.30% | 2.63% |
- PFIS’s management presentation highlights post‑merger scale: assets to $5.160B and deposits to $5.160B by Q3 2025 .
Employment Terms (Additional)
- Share ownership/hedging governance: Executives are subject to ownership guidelines and hedging prohibitions; committee affirms compensation programs are designed to avoid imprudent risk‑taking .
- Section 16 compliance: One late Form 4 filing reported for Mr. Koplin in 2024 (one transaction), alongside other officers; company disclosed remediation and transparency .
Investment Implications
- Pay‑for‑performance alignment mixed in 2024: no formal annual goals due to merger (cash bonus discretionary), and equity shifted to 100% time‑vested RS without PSUs—reducing near‑term performance sensitivity while increasing retention value .
- Retention/Protection strong: Employment agreement plus Tier II plan provide meaningful severance, especially under CIC (24 months salary + 2× target bonus), potentially dampening departure risk but creating takeover‑related payout overhang .
- Skin‑in‑the‑game modest: Beneficial ownership is <1% with unvested RS and RSUs outstanding; ownership guidelines exist but individual compliance status is not disclosed—monitor incremental accumulation and vesting events for potential selling pressure .
- Governance/risk: Robust clawback policies and hedging prohibitions reduce misalignment; a single late Form 4 suggests minor administrative risk, not a structural issue .
- Net takeaway: Structure favors retention and integration stability post‑merger; performance linkage should normalize as PFIS resumes metric‑based awards—watch 2025–2026 equity mix (return of PSUs), RSU outcomes in Dec 2025, and any insider trading signals around vest dates.