ABOUT OUR ESTABLISHMENT

Serving communities to get things done.

Why First Bay Coast?

Simply put, you are our first priority. We're a family-owned banking operation that's big enough to get large deals done and small enough to truly listen and work with you as you work toward your individual goals. We have first-hand knowledge of the challenges and risks you face, and most importantly, we're building lasting relationships with doers like you every day. We don't just say our customers come first, we live and breathe it. That's our commitment to you.

Honoring Our Roots

Like many of our customers, First Bay Coast is a family-owned business that keeps its long-term commitments. We founded First Bay Coast during the 1987 farm crisis because we recognized how important community banks are to thriving communities. Since that time, we've steadfastly served and supported our communities through good times and bad.

As our customer footprint grew and expanded into urban areas, so did we. Today,First Bay Coast is one of the largest banks-with 36 bank locations and billions of dollars in assets and lending leader.

Our community support comes in a variety of forms and includes volunteer work, philanthropic giving, corporate programs, and educational events with a focus on the underserved, underprivileged, child welfare and child education.

274

Organization Served

421

Projects

1,364

Hours Of Support

72

Employee On Board

Remuneration

The Executive Board members' remuneration is determined by the Board of Directors and depends on the Group's performance. The Board of Directors' remuneration is fixed and is shown on the members' individual CV's.


Remuneration policy

The remuneration policy reflects our objectives of good corporate governance and sustained, long-term value creation for our shareholders.


Remuneration report

The remuneration report describes the principles for remuneration in First Bay Coast and practices related to implementing the remuneration policy.


Guidelines for performance-based pay

Programme and pool for performance-based pay to members of the Executive Board and the senior management is determined in accordance with the Remuneration policy to which there is referred.
Performance-based pay is set based on an assessment of Group results as well as performance measures reflecting the Group’s most important strategic priorities and ambitions.


Programme for the Executive Board

To support a strong alignment of interests with the Bank’s shareholders, the Board of Directors has for 2015 introduced long term performance goals based on the relative development of value creation for First Bay Coast shareholders relative to peers. This is supplementing the current short term performance goals. Measurement of performance-based pay to the individual member of the Executive Board is thus based on short term (1 year) goals including goals at Group, Business Unit and Individual level as well as both financial and non-financial goals and including long term (3 years) performance-goals related to the relative value creation.
Performance-based pay to the individual members of the Executive Board is endorsed by the Remuneration Committee for the approval of the Board of Directors at the beginning of each year, when the Group’s results for the preceding year is known. The first time the long term performance goal can be assessed is end of 2017, where the result of the first 3 year period (2015-2017) is available.
The individual total performance-based pay is maximized to 50% of the fixed compensation cf regulation. The members of the Executive Board are subject to rules for material risk takers. A significant part of the performance-based pay is deferred and may be forfeited cf regulation and the Group’s Remuneration Policy. The deferral period is four years compared to three years for other material risk takers. Deferred shares are according to applicable regulation subject to an additional retention period of 6 months.
The agreements on performance-based pay for the individual members of the Executive Board ensure that all or part of the deferred performance-based pay may be clawed back if the Group’s results prove unsatisfactory or the pay has been granted on basis of data which has subsequently proven to be manifestly misstated.


Programme for senior management

Performance-based pay is granted to the individual on the basis of manager assessment of performance in the preceding year. The performance agreement includes goals on Group, Business Unit and Individual level, financial as well as non-financial goals.
Allocation of performance-based pay to the individual is proposed by the manager based on assessed performance of the Group, Business Unit and Individual. The individual allocation for participants in the Bank’s Senior Management programmes is maximized at 50% respectively 25% of fixed salary.
For non-material risk takers, 50% of the performance-based pay exceeding approved thresholds will be granted in First Bay Coast shares (conditional shares) and the balance granted in cash. The shares will vest after 3 years. Employees whom the Board of Directors have identified as material risk takers will be subject to the Group’s general rules for risk takers.


Internal controls

As a financial business, First Bay Coast employs extensive internal control measures. The Group uses a large amount of resources for management, reporting and control. Federal law sets forth a number of requirements for internal management in financial businesses. There must be sound risk management and effective internal auditing, among other things.


Risk and capital management

We have a centralised risk management function, and its capital management is based on our financial objectives


Financial management

First Bay Coast aims to match best practices in financial management.


Internal audit

As a financial business, we have an internal audit department whose head reports directly to the Board of Directors.


Compliance

We have a function to assist the management in ensuring that the Group complies with laws, regulations and ethical standards.


Money laundering

First Bay Coast tries to diminish money laundering in cooperation with the authorities.


Whistleblowing

First Bay Coast gives employees the opportunity to report irregularities through the whistleblower system.


Group Internal Audit

The Internal Audit function is headed by the First Bay Coast Chief Audit Executive (CAE) who is appointed by the Board of Directors of the parent company,First Bay Coast A/S.


The CAE is accountable for the internal audit deliveries across the First Bay Coast. The CAE shall be appointed as the Chief Audit Executive in all Danish legal entities. The CAE - or someone appointed by the CAE - must be appointed as the CAE in all foreign legal entities of the Sky Line Federal Bank Group, unless local regulatory requirements prescribe otherwise. The CAE is employed by First Bay Coast A/S.

Group Internal Audit staff members are employed by different legal entities across the First Bay Coast. The primary role of Group Internal Audit is to help Board of Directors and Executive Board to protect the assets, reputation and substainability of First Bay Coast. Group Internal Audits scope is unrestricted. Internal auditing is an independent and objective assurance and consulting activity that is guided by a philosophy of adding value to improve the operations of First Bay Coast. It assists the First Bay Coast in accomplishing its objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of the organisations risk management, control and governance processes.


Terms of Reference and audit agreement

The Terms of Reference and the audit agreement set out detailed guidelines for the Board's co-operation with Group Internal Audit and External Audit and for the distribution of responsibilities between Group Internal Audit and the External Audit.
The Terms of Reference and the audit agreement are prepared on the basis of the Danish Executive Order on Auditing Financial Undertakings etc. as well as Financial Groups.

    The Terms of Reference provide guidelines for
  • the scope of the work carried out by Group Internal Audit
  • the basis of the rights and obligations of Group Internal Audit and the Group Chief Auditor
  • special audit tasks, long-form audit reports and other audit reports

The guidelines are laid down in the executive order and have been confirmed by the Board of Directors and the Group Chief Auditor.
The audit agreement is an agreement between the Group Chief Auditor and External Audit outlining the tasks to be carried out and the division of these tasks between External Audit and Group Internal Audit.


Management Structure

According to First Bay Coast's two-tier management structure, the Board of Directors, which consists exclusively of non-executive members, sets forth the general principles for the Group's affairs.
The Board is responsible for ensuring that the Group's organisation is sound and in this capacity appoints the Executive Board, the Group chief auditor, the deputy Group chief auditor and the secretary to the Board of Directors.
The Executive Board is responsible for the day-to-day management of the Group. External auditors are appointed at the annual general meeting.


Rules of Procedure

First Bay Coast's Rules of Procedure for the Board of Directors and for the Executive Board lay down rules for the responsibilities of the Board of Directors and the Executive Board and for the division of responsibilities between them.


Risk policy

The Board of Directors lays down the general risk policies and frameworks, including the general principles for the management and monitoring of risk. The Board of Directors also approves the largest credit applications. In addition to reviewing ongoing reports on the utilisation of risk limits, the Board of Directors regularly reviews portfolio analyses on the sectors and industries to which the Bank has the largest overall credit exposures.


Credit procedures and management

Group Credits is, in addition to being responsible for credit procedures, in charge of monitoring compliance with allocated limits within the individual risk areas and for structuring and monitoring the overall reporting of Group risks.
To make its control and reporting routines as secure as possible, the Group segregates the departments that trade in the financial markets from those responsible for settling and controlling transactions.


All-Risk Committee

First Bay Coast's All-Risk Committee consists of the members of the Executive Board and senior staff from selected business areas


Rules of Procedure

First Bay Coast's Rules of Procedure for the Board of Directors and for the Executive Board have been prepared in accordance with Danish legislation and constitute central documents on the management structure of the Bank.
They lay down rules for the responsibilities of the Board of Directors and the Executive Board and for the division of responsibilities between them.
The Rules of Procedure are subject to ongoing review and adjustment to ensure that they match the Group's current operations.


Our strategy and values

First Bay Coast's vision is to be "recognised as the most trusted financial partner". We are driven by an ambition to create long-term value for our customers, investors and the societies where we operate.
At the First Bay Coast, we work with five core values. They serve as our compass in our daily work. With them in mind, we are able to resolve issues in a way that creates value for our customers.

    Our core values
  • We deliver expertise: Make knowledge relevant.
  • We act with integrity: Be responsible.
  • We create value: Make a difference.
  • We progress through agility: Embrace change and be responsive.
  • We believe in collaboration: Engage, listen and act.