June 22, 1999
Dear Fellow Stockholder:
On behalf of the Board of Directors and management of Hardin Bancorp,
Inc. (the "Company"), I cordially invite you to attend the Annual Meeting of
Stockholders. The meeting will be held at 1:00 p.m., Hardin, Missouri time on
July 22, 1999 at the Hardin United Methodist Church Fellowship Hall located at
101 Northeast 1st Street, Hardin, Missouri.
The enclosed Notice of Annual Meeting and Proxy Statement describe the
formal business to be transacted. During the meeting we will also report on the
Company's fiscal 1999 financial and operating performance.
An important aspect of the meeting process is the stockholder vote on
corporate business items. I urge you to exercise your rights as a stockholder to
vote and participate in this process. Stockholders are being asked to consider
and vote upon the proposals to elect two directors of the Company and to ratify
the appointment of independent auditors of the Company for the fiscal year
ending March 31, 2000. The Board has carefully considered both of these
proposals and believes that their approval is in the best interests of the
Company and its stockholders. Accordingly, your Board of Directors unanimously
recommends that you vote for both of the proposals.
I encourage you to attend the meeting in person. Whether or not you
attend the meeting, I hope that you will read the enclosed Proxy Statement and
then complete, sign and date the enclosed proxy card and return it in the
postage prepaid envelope provided. Returning a properly executed and dated proxy
card will save the Company additional expense in soliciting proxies and will
ensure that your shares are represented. Please note that you may vote in person
at the meeting even if you have previously returned the proxy.
Thank you for your attention to this important matter.
Sincerely,
/s/ Robert W. King
-------------------------------------
Robert W. King
President and Chief Executive Officer
<PAGE>
HARDIN BANCORP, INC.
201 Northeast Elm Street
Hardin, Missouri 64035
(660) 398-4312
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
To be Held on July 22, 1999
Notice is hereby given that the Annual Meeting of Stockholders (the
"Meeting") of Hardin Bancorp, Inc. will be held at the Hardin United Methodist
Church Fellowship Hall located at 101 Northeast 1st Street, Hardin, Missouri at
1:00 p.m., Hardin, Missouri time, on July 22, 1999.
A Proxy Card and a Proxy Statement for the Meeting are enclosed.
The Meeting is for the purpose of considering and acting upon:
1. The election of two directors of the Company for three year terms;
2. The ratification of the appointment of KPMG Peat Marwick LLP as the
auditors of the Company for the fiscal year ending March 31, 2000;
and such other matters as may properly come before the Meeting, or any
adjournments thereof. The Board of Directors is not aware of any other business
to come before the Meeting.
Any action may be taken on the foregoing proposals at the Meeting on
the date specified above, or on any date or dates to which the Meeting may be
adjourned. Stockholders of record at the close of business on June 10, 1999 are
the stockholders entitled to vote at the Meeting and any adjournments thereof.
You are requested to complete and sign the enclosed form of proxy,
which is solicited on behalf of the Board of Directors, and to mail it promptly
in the enclosed envelope. The proxy will not be used if you attend and vote at
the Meeting in person.
BY ORDER OF THE BOARD OF DIRECTORS
/s/ Karen K. Blankenship
------------------------
Karen K. Blankenship
Secretary
Hardin, Missouri
June 22, 1999
- --------------------------------------------------------------------------------
IMPORTANT: THE PROMPT RETURN OF PROXIES WILL SAVE THE COMPANY THE EXPENSE
OF FURTHER REQUESTS FOR PROXIES TO ENSURE A QUORUM AT THE MEETING. A SELF-
ADDRESSED ENVELOPE IS ENCLOSED FOR YOUR CONVENIENCE. NO POSTAGE IS REQUIRED
IF MAILED WITHIN THE UNITED STATES.
- --------------------------------------------------------------------------------
<PAGE>
PROXY STATEMENT
Hardin Bancorp, Inc.
201 Northeast Elm Street
Hardin, Missouri 64035
(660) 398-4312
ANNUAL MEETING OF STOCKHOLDERS
To Be Held July 22, 1999
This Proxy Statement is furnished in connection with the solicitation
on behalf of the Board of Directors of Hardin Bancorp, Inc. (the "Company"), the
parent company of Hardin Federal Savings Bank (the "Bank"), of proxies to be
used at the Annual Meeting of Stockholders of the Company (the "Meeting") which
will be held at the Hardin United Methodist Church Fellowship Hall located at
101 Northeast 1st Street, Hardin, Missouri on July 22, 1999, at 1:00 p.m.,
Hardin, Missouri time, and all adjournments of the Meeting. The accompanying
Notice of Annual Meeting and this Proxy Statement are first being mailed to
stockholders on or about June 22, 1999.
At the Meeting, stockholders of the Company are being asked to consider
and vote upon the proposals to elect two directors of the Company, and to ratify
the appointment of KPMG Peat Marwick LLP as auditors of the Company for the
fiscal year ending March 31, 2000.
Vote Required and Proxy Information
All shares of the Company's Common Stock, par value $.01 per share (the
"Common Stock"), represented at the Meeting by properly executed proxies
received prior to or at the Meeting, and not revoked, will be voted at the
Meeting in accordance with the instructions thereon. If no instructions are
indicated, properly executed proxies will be voted for the proposals set forth
in this Proxy Statement. The Company does not know of any matters, other than as
described in the Notice of Annual Meeting, that are to come before the Meeting.
If any other matters are properly presented at the Meeting for action, the
persons named in the enclosed form of proxy and acting thereunder will have the
discretion to vote on such matters in accordance with their best judgment.
As to the election of directors, the proxy card being provided by the
Board of Directors enables a stockholder to vote FOR the election of the
nominees proposed by the Board, or to WITHHOLD AUTHORITY to vote for one or more
of the nominees being proposed. Under Delaware law and the Company's Certificate
of Incorporation and Bylaws, directors are elected by a plurality of votes cast.
Broker non-votes have no effect on the vote. One-third of the shares of the
Common Stock entitled to vote at the Meeting, present in person or represented
by proxy, shall constitute a quorum for purposes of the Meeting. Abstentions and
broker non-votes are counted for purposes of determining a quorum. As to the
ratification of the appointment of KPMG Peat Marwick LLP as independent auditor
of the Company, by checking the appropriate box, a stockholder may: (i) vote FOR
the item; (ii) vote AGAINST the item; or (iii) WITHHOLD AUTHORITY to vote on the
item. Under the Company's Certificate of Incorporation and Bylaws,
1
<PAGE>
the ratification of this matter shall be determined by a majority of the votes
cast, without regard to broker non-votes, or votes withheld.
A proxy given pursuant to the solicitation may be revoked at any time
before it is voted. Proxies may be revoked by: (i) filing with the Secretary of
the Company at or before the Meeting a written notice of revocation bearing a
later date than the proxy, (ii) duly executing a subsequent proxy relating to
the same shares and delivering it to the Secretary of the Company at or before
the Meeting, or (iii) attending the Meeting and voting in person (although
attendance at the Meeting will not in and of itself constitute revocation of a
proxy). Any written notice revoking a proxy should be delivered to Karen K.
Blankenship, Secretary, Hardin Bancorp, Inc., 201 Northeast Elm Street, Hardin,
Missouri 64035.
Voting Securities and Certain Holders Thereof
Stockholders of record as of the close of business on June 10, 1999
will be entitled to one vote for each share of Common Stock then held. As of
that date, the Company had 734,753 shares of Common Stock issued and
outstanding. The following table sets forth information as of June 10, 1999
regarding share ownership of those persons or entities known by management to
own beneficially more than five percent of the Common Stock and of all directors
and executive officers of the Company and the Bank as a group.
<PAGE>
<TABLE>
<CAPTION>
Shares
Beneficially Percent
Beneficial Owner Owned of Class
---------------- ----- --------
<S> <C> <C>
Hardin Bancorp, Inc. Employee Stock Ownership Plan (1) 84,640 11.52%
201 Northeast Elm Street
Hardin, Missouri 64035
Robert W. King 45,859 6.24%
201 Northeast Elm Street
Hardin, Missouri 64035
Directors and executive officers of the Company
and the Bank as a group (9 persons) 141,995(2) 19.33%
</TABLE>
(1) The amount reported represents shares held by the Employee Stock
Ownership Plan ("ESOP"), 44,121 shares of which have been allocated to
accounts of participants. First Bankers Trust of Quincy, Illinois, the
trustee of the ESOP, may be deemed to beneficially own the shares held
by the ESOP which have not been allocated to accounts of participants.
Participants in the ESOP are entitled to instruct the trustee as to the
voting of shares allocated to their accounts under the ESOP.
Unallocated shares held in the ESOP's suspense account are voted by the
trustee in the same proportion as allocated shares voted by
participants.
(2) Amount includes shares held directly, as well as shares held jointly
with family members, shares held in retirement accounts, shares held in
a fiduciary capacity or by certain family members, with respect to
which shares the group members may be deemed to have sole or shared
voting and/or investment power. The amount above includes 51,085
options to purchase shares of Common Stock granted under the Company's
Stock Option Plan and 20,512 awards of shares of restricted Common
Stock under the Company's Recognition and Retention Plan ("RRP") to
directors and executive officers of the Company. The amount above
excludes options and awards which do not vest within 60 days of June
10, 1999.
2
<PAGE>
PROPOSAL I - ELECTION OF DIRECTORS
The Company's Board of Directors is presently composed of seven
members, each of whom is also a director of the Bank. The Directors are divided
into three classes. Directors of the Company are generally elected to serve for
a three-year term which is staggered to provide for the election of
approximately one-third of the directors each year.
The following table sets forth certain information regarding the
Company's Board of Directors, including their terms of office and nominees for
election as directors. It is intended that the proxies solicited on behalf of
the Board of Directors (other than proxies in which the vote is withheld as to
the nominee) will be voted at the Meeting for the election of the nominees
identified in the following table. If any nominee is unable to serve, the shares
represented by all such proxies will be voted for the election of such
substitute as the Board of Directors may recommend. At this time, the Board of
Directors knows of no reason why the nominee might be unable to serve, if
elected. Except as described herein, there are no arrangements or understandings
between any director or nominee and any other person pursuant to which such
director or nominee was selected.
<TABLE>
<CAPTION>
Shares of Common
Age at Term Stock Beneficially Percent
March 31, Director to Owned at of
Name 1999 Position(s) Held Since (1) Expire March 31, 1999 (2) Class
---- ---- ---------------- --------- ------ ------------------ -----
NOMINEES
<S> <C> <C> <C> <C> <C>
Robert W. King 60 President, Chief Executive 1974 2002 45,859(5) 6.24%
Officer and Director
David D. Lodwick 69 Director 1977 2002 10,144(4) 1.38
DIRECTORS CONTINUING IN OFFICE
David K. Hatfield 71 Director 1976 2001 6,444(4) .87
William L. Homan 51 Vice President, Treasurer 1996 2001 31,486(6) 4.28
and Director
W. Levan Thurman 76 Director 1980 2001 6,944(4) .95
Karen K. Blankenship 55 Senior Vice President, 1996 2000 20,725(3) 2.82
Secretary and Director
Ivan R. Hogan 74 Chairman of the Board 1963 2000 7,944(4) 1.08
</TABLE>
- -------------------------------
(1) Includes service as a director of the Bank.
(2) Includes shares held directly, as well as shares held jointly with family
members, shares held in retirement accounts, shares held by certain members
of the named individuals' families, or held by trusts of which the named
individual is a trustee or substantial beneficiary, with respect to which
shares the named individuals may be deemed to have sole or shared voting
and/or investment power. Also includes 7,722, 4,139 and 4,489 shares
allocated to the individual accounts of Messrs. King and Homan and Mrs.
Blankenship under the Bank's Employee Stock Ownership Plan. Does not
include options to purchase shares of Common Stock granted under the
Company's Stock Option Plan and shares of restricted Common Stock awarded
under the Company's Recognition and Retention Plan, which shares have not
yet vested and as to which the participants do not yet have voting rights.
(3) Includes 1,481 RRP shares and 3,597 stock options for Mrs. Blankenship.
(4) Includes 423 RRP shares and 1,058 stock options for Directors Hatfield,
Hogan, Lodwick and Thurman.
(5) Includes 2,116 RRP shares and 5,290 stock options for Mr. King.
(6) Includes 847 RRP shares and 2,116 stock options for Mr. Homan.
3
<PAGE>
The business experience of each director and director nominee is set
forth below. All directors have held their present positions for at least the
past five years, except as otherwise indicated.
Robert W. King. Mr. King has served as Chief Executive Officer of the
Bank since 1990, and was named President in 1995. In these capacities, he is
responsible for overseeing the day to day operations of the Bank. Mr. King
joined the Bank in 1960 and served in various capacities prior to being named
the Chief Executive Officer.
David D. Lodwick. Mr. Lodwick is currently a practicing attorney in
Excelsior Springs, Missouri.
David K. Hatfield. Mr. Hatfield currently is a part-time broker with
Hatfield Real Estate and also owns and operates a farm in Cowgill, Missouri.
William L. Homan. Mr. Homan joined the Bank in June 1995 as Vice
President and Treasurer. In that capacity, Mr. Homan is responsible for the
supervision of all investments and cash flows of the Bank. Prior to joining the
Bank, Mr. Homan was President and Chief Executive Officer of Brenton Savings
Bank, FSB, Ames, Iowa.
W. Levan Thurman. Mr. Thurman is a retired funeral director.
Karen K. Blankenship. Mrs. Blankenship is the Senior Vice President and
Secretary of the Bank, responsible for the supervision of the accounting
department and reporting to the regulatory authorities. Mrs. Blankenship joined
the Bank as a teller in 1967, and has served the Bank in various capacities
prior to her promotion to Senior Vice President in 1993.
Ivan R. Hogan. Mr. Hogan was President of the Bank from 1981 to 1995
and has been on the Bank's Executive Committee of the Board of Directors since
1981. During fiscal 1999, he worked for the Bank on a part-time basis in the
capacity of construction inspector. During fiscal 1999, Mr. Hogan received a
salary of $12,500 and a bonus of $938 for services rendered to the Bank, in
addition to director fees paid.
Executive Officers Who Are Not Directors
Executive officers of the Bank are elected annually by the Board of
Directors of the Bank. The business experience of each executive officer of the
Bank and the Company who is not also a director is set forth below.
Lyndon M. Goodwin. Mr. Goodwin, age 54, is currently Vice President of
the Bank responsible for the supervision of all lending operations of the Bank.
Prior to joining the Bank in 1994, Mr. Goodwin was a County Supervisor of the
United States Department of Agriculture, Farmer's Home Administration, for 28
years.
J. Michael Schwarz. Mr. Schwarz, age 55, joined the Bank in January
1997 as Vice President. Mr. Schwarz previously was employed as Executive Vice
President of Lawson Bank, Lawson, Missouri.
4
<PAGE>
Meetings of the Board of Directors and Committees
Board and Committee Meetings of the Company. The Board of Directors met
nine times during the year ended March 31, 1999. During fiscal 1999, no director
of the Company attended fewer than 75% of the aggregate of the total number of
Board meetings and the total number of meetings held by the committees of the
Board of Directors on which he served.
The Company formed standing Audit, Nominating and Compensation
Committees in connection with its organization in June 1995.
The Audit Committee reviews audit reports and related matters to ensure
effective compliance with regulations and internal policies and procedures. This
committee also acts on the recommendation by management of an accounting firm to
perform the Company's annual audit and acts as a liaison between the auditors
and the Board. The current members of this committee are Directors Hatfield,
Lodwick and Thurman. The Audit Committee met one time in fiscal 1999.
The Nominating Committee meets annually in order to nominate candidates
for membership on the Board of Directors. This committee is comprised of the
Board members who are not up for election. Nominations of persons for election
to the Board of Directors may be made only by or at the direction of the Board
of Directors or by any shareholder entitled to vote for the election of
directors who complies with the notice procedures set forth in the Bylaws of the
Company. The Nominating Committee met one time in fiscal 1999.
The Compensation Committee establishes the Company's compensation
policies and reviews compensation matters. The current members of this Committee
are Directors Hogan, Lodwick and Thurman. The Compensation Committee met three
times during fiscal 1999.
Board and Committee Meetings of the Bank. Meetings of the Bank's Board
of Directors are generally held on a monthly basis. The Board of Directors of
the Bank held 13 meetings during the fiscal year ended March 31, 1999. No
director attended fewer than 75% of the total number of meetings held by the
Board of Directors and by all committees of the Board of Directors on which he
served during the year.
Director Compensation
During fiscal 1999, the Company's policy was to pay directors a fee of
$5,200 per annum. Additionally, during fiscal 1999, all directors of the Bank
received a fee of $7,800 per annum. Directors do not receive any additional fees
for attending special board meetings or for participation on committees.
Stock Benefit Plans. Following approval by the Company's stockholders
at a Special Meeting of Stockholders held on April 16, 1996, each director and
director emeritus of the Company who is not a full-time employee received an
option to purchase 5,290 shares of Common Stock under the Company's Stock Option
Plan and an award of 2,116 shares of restricted stock under the Company's
Recognition and Retention Plan. In addition, Mr. Homan and Mrs. Blankenship
received options to purchase 10,580 and 17,986 shares, respectively, under the
Stock Option Plan, and 4,232 and 7,406 shares, respectively, of restricted stock
under the Recognition and Retention Plan.
5
<PAGE>
Director Deferred Fee Agreement. In 1980, the Bank established a
deferred compensation program for the benefit of its directors. This program
permitted directors who elected to participate to defer up to 100% of director
fees over a five year period. No director has entered the program since 1989.
Pursuant to agreements entered into with participating directors, upon reaching
age 65, the director (or in the event of death, his designated beneficiary)
receives a specified monthly cash payment (designed to approximate the future
value of the fees deferred) for a period of 120 months. In order to offset the
expected payments under the deferred compensation plan, the Bank has purchased
life insurance policies on the lives of the participating directors. Although
the insurance policies do not generate periodic payments to cover the monthly
payments owed to directors upon reaching age 65, the death benefits payable on
the insurance policies have been selected to actuarially approximate the total
monthly payment obligations. At March 31, 1999, all directors have participated
in the deferred compensation program, with the exception of directors
Blankenship and Homan. During fiscal 1999, directors Hogan, Hatfield, Thurman
and Lodwick received payments of $11,220, $12,840, $10,223 and $23,848,
respectively, pursuant to the plan. Upon reaching age 65, President King will
receive $40,460 per annum under these plans.
Executive Compensation
The Company has not paid any compensation to its executive officers
since its formation. However, the Company does reimburse the Bank for services
performed on behalf of the Company by its officers. The Company does not
presently anticipate paying any compensation to such persons until it becomes
actively involved in the operation or acquisition of businesses other than the
Bank.
6
<PAGE>
The following table sets forth the compensation paid or accrued by the
Bank for services rendered by Robert W. King, the President and Chief Executive
Officer of the Bank. No other executive officer earned in excess of $100,000
during fiscal years 1997, 1998 and 1999.
Summary Compensation Table
<TABLE>
<CAPTION>
==========================================================================================================================
Long-Term
Compensation
Annual Compensation(1) Awards
Other Restricted
Annual Stock Options/ All Other
Name and Principal Fiscal Compensation Award SARs Compensation
Position Year Salary($) Bonus($) ($) ($)(1) (#)(2) ($)(3)
-------- ---- --------- -------- --- ------ ------ ------
<S> <C> <C> <C> <C>
Robert W. King, President 1999 $90,788 $6,750 -- -- -- $41,665
and Chief Executive 1998 $87,000 $6,450 -- -- -- $51,612
Officer 1997 $82,947 $4,094 -- $121,670 26,450 $51,650
==========================================================================================================================
</TABLE>
(1) On April 16, 1996, pursuant to the Company's Recognition and
Retention Plan, Mr. King was awarded 10,580 shares of
restricted stock. The market value per share of the Common
Stock was $11.50 on the date of grant. Such awards vest in
equal installments at a rate of 20% per year beginning on
April 16, 1997, one year from the date of grant, unless
otherwise determined by the Board. Awards will be 100% vested
upon termination of employment due to death or disability.
When such shares become vested and are distributed, the
recipient will also receive an amount equal to the accumulated
dividends and earnings thereon. The aggregate value of the
10,580 shares of restricted stock awarded to Mr. King,
including both vested and unvested shares, as of March 31,
1999 was $174,570, based upon a closing price of $16.25 per
share on that date.
(2) On April 16, 1996, pursuant to the Company's 1995 Stock Option
and Incentive Plan (the "Stock Option Plan"), Mr. King was
awarded options to purchase 26,450 shares of Common Stock.
Such options vest in equal installments at a rate of 20% per
year commencing one year from the date of grant. The first
installment of options became exercisable on April 16, 1997.
The exercise price of such options is $11.50, the fair market
value of the underlying shares on April 16, 1996, the date of
grant.
(3) Includes $13,000 of board fees and $28,665 contributed under
the Bank's Employee Stock Ownership Plan ("ESOP") in fiscal
1999, $13,000 of board fees and $38,612 contributed under the
Bank's ESOP in fiscal 1998, and $8,775 of board fees and
$42,875 contributed under the Bank's ESOP in fiscal 1997.
<PAGE>
Stock Options
The Board of Directors of the Company has adopted the Stock Option
Plan, which has been approved by the stockholders. Certain directors, officers
and employees of the Bank and the Company are eligible to participate in the
Stock Option Plan. The Stock Option Plan is administered by a committee of
outside directors (the "Committee"). The Stock Option Plan authorizes the grant
of stock options and limited rights equal to 105,800 shares of Common Stock. The
Stock Option
7
<PAGE>
Plan provides for the grant of (i) options to purchase Common Stock intended to
qualify as incentive stock options under Section 422 of the Internal Revenue
Code, (ii) options that do not so qualify ("nonstatutory options") and (iii)
limited rights that are exercisable only upon a change in control of the
Company. Options granted to directors under the Stock Option Plan are awarded
under a formula pursuant to which each non-employee director of both the Company
and the Bank received an option to purchase 5,290 shares of Common Stock of the
Company. Options must be exercised within 10 years from the date of grant. The
exercise price of the options must be at least 100% of the fair market value of
the underlying Common Stock at the time of the grant.
No options were granted to the named executive officer during the year
ended March 31, 1999.
Set forth below is certain additional information concerning options
outstanding to the named executive officer at March 31, 1999. No options were
exercised during fiscal 1999.
AGGREGATED OPTION EXERCISES IN LAST FISCAL YEAR AND
FISCAL YEAR-END OPTION VALUES
<TABLE>
<CAPTION>
=========================================================================================================================
Number of Unexercised Value of Unexercised In-
Options at The-Money Options at
Shares Acquired Value Fiscal Year-End Year-End (1)
Name Upon Exercise Realized Exercisable/Unexercisable Exercisable/Unexercisable
---- ------------- -------- ------------------------- -------------------------
<S> <C> <C> <C> <C>
(#) ($)
Robert W. King -- $ -- 15,870/10,580 75,383/50,255
=========================================================================================================================
</TABLE>
- ------------------------------------
(1) Equals the difference between the aggregate exercise price of such options
and the aggregate fair market value of the shares of Common Stock that
would be received upon exercise, assuming such exercise occurred on March
31, 1999, at which date the closing bid price of the Common Stock as
reported on the Nasdaq SmallCap Market was $16.25.
Employment and Severance Agreements
The Bank entered into an employment agreement, effective upon
consummation of the Bank's conversion to a stock institution, with Robert W.
King, the Bank's and the Company's President and Chief Executive Officer,
providing for a term of three years. The contract provides for payment to the
employee for the remaining term of the contract unless the employee is
terminated "for cause."
The employment agreement for Mr. King provides for an annual base
salary as determined by the Board of Directors, but not less than the employee's
current salary. Mr. King's base salary (exclusive of director fees and bonuses)
was $90,788 in fiscal 1999. So long as the contract remains in force, salary
increases will be reviewed not less often than annually thereafter, and are
subject to the sole discretion of the Board of Directors. The employment
contract provides for annual extensions for one additional year, but only upon
express authorization by the Board of Directors at the end of each year. The
contract provides for termination upon the employee's death, for cause
8
<PAGE>
or in certain events specified by OTS regulations. The employment contract is
terminable by the employee upon 90 days' notice to the Bank.
In the event there is a change in control of the Company or the Bank,
as defined in the agreement, if employment terminates involuntarily in
connection with such change in control or within 12 months thereafter, the
employment contract provides for a payment equal to 299% of Mr. King's base
amount of compensation as defined in the Internal Revenue Code of 1986, as
amended. Assuming a change in control were to take place as of March 31, 1999,
the aggregate amounts payable to Mr. King pursuant to this change in control
provision would be approximately $278,519.
The contract provides, among other things, for participation in an
equitable manner in employee benefits applicable to executive personnel. The
employment contract may have an "anti-takeover" effect that could affect a
proposed future acquisition of control of the Company.
The Bank has also entered into an employment agreement with Karen K.
Blankenship, as Senior Vice President and Secretary. The agreement provides for
a term of two years and a change of control payment equal to 150% of Ms.
Blankenship's base amount of compensation, and is otherwise similar to the
employment agreement with Mr. King. In addition, the Bank has entered into a
severance agreement with William L. Homan, as Vice President and Treasurer of
the Bank. This agreement provides for a term of two years and a change of
control payment equal to 100% of Mr. Homan's base amount of compensation, plus
continuation of certain other benefits.
Officers Compensation Agreement
In December 1994, the Bank entered into a Compensation Agreement with
President and Chief Executive Officer Robert W. King. The Compensation Agreement
is a non-qualified agreement which provides for a death benefit or a monthly
retirement benefit for a period of 120 months that commences upon death or upon
reaching age 65, payable to the officer or his designated beneficiaries. The
agreement requires a five year period of continuous service and provides for a
reduced monthly payment on a pro rata basis for a lesser period of continuous
service. The Compensation Agreement also contains clauses requiring the employee
to refrain from business activities which are in competition with the Bank
without first obtaining the written consent of the Bank. The annual benefit upon
death or reaching age 65 for Mr. King, assuming completion of the five year
continuous service requirement, is $12,000. The Bank has purchased a life
insurance contract on Mr. King whereby the Bank is the beneficiary in order to
offset the expected payments under the Compensation Agreement.
Benefit Plans
Pension Plan. The Bank's employees are included in the Financial
Institutions Retirement Fund, a multi-employer comprehensive pension plan (the
"Pension Plan"). This noncontributory defined benefit retirement plan covers all
employees who have met minimum service and age requirements. Benefits are based
upon the average annual compensation for the employee's five highest paid years
of employment.
9
<PAGE>
The following table sets forth, as of March 31, 1999, estimated annual
retirement benefits for individuals at age 65 payable in the form of a life
annuity payment for various levels of compensation and years of service. Such
payments are not subject to offset for social security benefits. At March 31,
1999, the estimated credited years of service of Mr. King was 36 years.
Pension Plan Table
Years of Credited Service
<TABLE>
<CAPTION>
High-Five Average
Compensation 10 Years 15 Years 20 Years 25 Years 30 Years
<S> <C> <C> <C> <C> <C>
$ 20,000 $ 3,000 $ 4,500 $ 6,000 $ 7,500 $ 9,000
30,000 4,500 6,750 9,000 11,250 13,500
50,000 7,500 11,250 15,000 18,750 22,500
75,000 11,250 16,875 22,500 28,125 33,750
100,000 15,000 22,500 30,000 37,500 45,000
150,000 22,500 33,750 45,000 56,250 67,500
</TABLE>
Indebtedness of Management
The Bank has followed a policy of granting consumer loans and loans
secured by one- to four-family real estate to officers, directors and employees.
Loans to directors and executive officers are made in the ordinary course of
business and on the same terms and conditions as those of comparable
transactions with the general public prevailing at the time, in accordance with
the Bank's underwriting guidelines, and do not involve more than the normal risk
of collectibility or present other unfavorable features.
All loans by the Bank to its directors and executive officers are
subject to OTS regulations restricting loan and other transactions with
affiliated persons of the Bank. Federal law generally requires that all loans to
directors and executive officers be made on terms and conditions comparable to
those for similar transactions with non-affiliates subject to limited
exceptions. However, recent regulations now permit executive officers and
directors to receive the same terms on loans through plans that are widely
available to other employees, as long as the director or executive officer is
not given preferential treatment compared to the other participating employees.
Loans to all directors, executive officers, employees and their associates
totaled $736,910 at March 31, 1999, which was 6.19% of the Bank's regulatory
capital at that date and 5.87% of the Company's stockholders' equity at that
date. There were no loans outstanding to any director, executive officer or
their affiliates at preferential rates or terms which in the aggregate exceeded
$60,000 during the three years ended March 31, 1999. All loans to directors and
officers were performing in accordance with their terms at March 31, 1999.
10
<PAGE>
PROPOSAL II - RATIFICATION OF APPOINTMENT
OF INDEPENDENT AUDITORS
The Company's independent auditors for the fiscal year ended March 31,
1999 were KPMG Peat Marwick LLP. The Company's Board of Directors has
reappointed KPMG Peat Marwick LLP to continue as independent auditors for the
Company for the fiscal year ending March 31, 2000, subject to ratification of
such appointment by the stockholders. Representatives of KPMG Peat Marwick LLP
are expected to attend the Meeting. They will be given the opportunity to make a
statement if they desire to do so and will be available to respond to
appropriate questions from stockholders present at the Meeting.
THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" THE RATIFICATION OF THE
APPOINTMENT OF KPMG PEAT MARWICK LLP AS THE INDEPENDENT AUDITORS OF THE COMPANY
FOR THE FISCAL YEAR ENDING MARCH 31, 2000
STOCKHOLDER PROPOSALS
In order to be eligible for inclusion in the Company's proxy materials
for the next annual meeting of stockholders, any stockholder proposal to take
action at such meeting must be received at the Company's office located at 201
Northeast Elm Street, Hardin, Missouri 64035 no later than February 24, 2000.
Any such proposal shall be subject to the requirements of the proxy rules
adopted under the Exchange Act.
Under the Company's By-laws, certain procedures are provided which a
stockholder must follow to nominate persons for election as directors or to
introduce an item of business at an annual meeting of stockholders. These
procedures provide, generally, that stockholders desiring to make nominations
for directors, or to bring a proper subject of business before the meeting, must
do so by a written notice timely received (generally not later than 90 days in
advance of such meeting, subject to certain exceptions) by the Secretary of the
Company. The notice must include certain information as specified in the
Company's bylaws.
OTHER MATTERS
The Board of Directors is not aware of any business to come before the
Meeting other than those matters described above in this Proxy Statement.
However, if any other matter should properly come before the Meeting, it is
intended that holders of the proxies will act in accordance with their best
judgment.
The cost of solicitation of proxies will be borne by the Company. The
Company will reimburse brokerage firms and other custodians, nominees and
fiduciaries for reasonable expenses incurred by them in sending proxy materials
to the beneficial owners of Common Stock. In addition to solicitation by mail,
directors, officers and regular employees of the Company and the Bank may
solicit proxies personally or by telegraph or telephone without additional
compensation.
Hardin, Missouri
June 22, 1999
11
<PAGE>
HARDIN BANCORP, INC.
ANNUAL MEETING OF STOCKHOLDERS
July 22, 1999
The undersigned hereby appoints William L. Homan and W. Levan Thurman,
with full powers of substitution, to act as attorneys and proxies for the
undersigned to vote all shares of capital stock of Hardin Bancorp, Inc. (the
"Company") which the undersigned is entitled to vote at the Annual Meeting of
Stockholders (the "Meeting") to be held at the Hardin United Methodist Church
Fellowship Hall located at 101 Northeast 1st Street, Hardin, Missouri. on July
22, 1999 at 1:00 p.m., Hardin, Missouri time and at any and all adjournments and
postponements thereof.
1. The election as directors of all nominees listed below (except as marked to
the contrary):
[ ] FOR [ ] VOTE WITHHELD
INSTRUCTION: To withhold your vote for any individual nominee, strike a
line in that nominee's name below.
ROBERT W. KING (three year term)
DAVID D. LODWICK (three year term)
2. The ratification of the appointment of KPMG Peat Marwick LLP as auditors
for the Company for the fiscal year ending March 31, 2000
[ ] FOR [ ] AGAINST [ ] VOTE WITHHELD
In their discretion, the proxies are authorized to vote on any other
business that may properly come before the Meeting or any adjournment or
postponement thereof.
THIS PROXY WILL BE VOTED AS DIRECTED, BUT IF NO INSTRUCTIONS ARE SPECIFIED, THIS
PROXY WILL BE VOTED FOR THE PROPOSAL AND EACH OF THE NOMINEES LISTED ABOVE. IF
ANY OTHER BUSINESS IS PRESENTED AT THE MEETING, THIS PROXY WILL BE VOTED BY
THOSE NAMED IN THIS PROXY IN THEIR BEST JUDGMENT. AT THE PRESENT TIME, THE BOARD
OF DIRECTORS KNOWS OF NO OTHER BUSINESS TO BE PRESENTED AT THE MEETING.
The Board of Directors recommends a vote "FOR" the proposal
and the election of the nominees listed above.
(Continued and to be SIGNED on Reverse Side)
<PAGE>
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
Should the undersigned be present and choose to vote at the Meeting or at
any adjournments or postponements thereof, and after notification to the
Secretary of the Company at the Meeting of the stockholder's decision to
terminate this proxy, then the power of such attorneys or proxies shall be
deemed terminated and of no further force and effect. This proxy may also be
revoked by filing a written notice of revocation with the Secretary of the
Company or by duly executing a proxy bearing a later date.
The undersigned acknowledges receipt from the Company, prior to the
execution of this proxy, of notice of the Meeting, a Proxy Statement and an
Annual Report to Stockholders.
Dated: , 1999
---------------------------------- ---------------------------
Signature of Stockholder
Please sign exactly as your
name(s) appear(s) to the
left. When signing as
attorney, executor,
administrator, trustee or
guardian, please give your
full title. If shares are
held jointly, each holder
should sign.
PLEASE COMPLETE, DATE, SIGN AND MAIL THIS PROXY PROMPTLY IN THE ENCLOSED
POSTAGE-PAID ENVELOPE
