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EXECUTIVE COMPENSATION

Company 401 (k) Plan Total “All Other

Year Perquisites (i)

Contribution (ii)

Compensation”

Name

Jerry J. Baack

2020 2020 2020

$15,381 11,754 11,754

$19,950 19,950 19,950

$35,331 31,704 31,704

Mary Jayne Crocker Jeffrey D. Shellberg

(i) Amounts reflect automobile allowances, health club memberships, and the portion of health and dental insurance premiums paid for by the Company in excess of what is paid for employees generally. No named executive officers used the Mayo Clinic benefit described below in 2020. (ii) Amounts reflect Company matching and profit sharing contributions under the 401(k) Plan. General We compensate our named executive officers through a combination of base salary, annual bonus, equity awards, earnings credited under our Deferred Incentive Plan, and other benefits including perquisites. Our Board believes the executive compensation packages that we provide to our executives, including the named executive officers, should include both cash and equity compensation that reward performance as measured against established corporate and individual goals. Each element of compensation is designed to achieve a specific purpose and to contribute to a total package that is competitive with similar packages provided by other institutions that compete for the services of individuals like our named executive officers. In 2020, the Compensation Committee retained an independent compensation consultant, Pearl Meyer, to provide a summary of market compensation and pay levels to executive officers, key findings, and preliminary recommendations with respect to the compensation of our executive officers as compared to those of our peers. Based on its analysis, Pearl Meyer recommended that we maintain the current base salary of each of our named executive officers and provided proposed base salary ranges that are commensurate with our high performance compared to our peers. The Compensation Committee considered the analysis provided by Pearl Meyer in making its decision to issue discretionary annual bonuses to each of the Company’s named executive officers and to approve and recommend that the Board issue restricted stock units to the Company’s named executive officers, each effective December 7, 2020. Base Salary Our Compensation Committee reviews and approves the base salaries of our named executive officers and relied on the recommendations of Pearl Meyer and survey data from industry resources in setting the base salary for each of our named executive officers. Salary levels are typically reviewed annually as part of our performance review process and upon a promotion or other change in job responsibility. Annual Bonus All of our named executive officers are eligible to receive an annual bonus payment at the discretion of the Compensation Committee. Annual bonus awards are intended to recognize and reward those named executive officers who contribute meaningfully to our performance for the year. In 2020 and prior years, the Compensation Committee has typically considered Company, Bank and individual performance factors in its determination of the amount of the annual bonus awards granted to each named executive officer. Deferred Incentive Plan The Compensation Committee may award each named executive officer a discretionary contribution to the Deferred Incentive Plan, described in more detail below, based on Company and individual performance for each calendar year. To encourage retention, amounts contributed to the Deferred Incentive Plan are subject to forfeiture contingent on the named executive officer’s continued employment. Equity Awards All of our named executive officers are eligible to receive grants of equity awards, including incentive and non- statutory stock options, restricted stock, and restricted stock units at the discretion of Compensation Committee or the

2021 Proxy Statement

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