Form 4: Consumers Bancorp Director Receives Performance-Based Restricted Stock Units

Consumers Bancorp Inc. Director David R. Bickerton was granted 801 restricted stock units, which are set to vest in June 2026 contingent on continued board service and attendance.

Summary

• David R. Bickerton, a Director of Consumers Bancorp Inc. (CBKM), acquired 801 Restricted Stock Units (RSUs).
• The transaction date for the RSU grant was July 7, 2025.
• Each restricted stock unit is the economic equivalent of one share of Consumers Bancorp Inc. common stock.
• The RSUs are performance-based and will vest in June 2026, contingent on meeting attendance requirements and the Reporting Person remaining on the Board of Directors on the vesting date.
• Following this transaction, David R. Bickerton directly beneficially owns 801 derivative securities (RSUs).
• The transaction was made pursuant to a Rule 10b5-1(c) plan, indicating a pre-arranged trading plan.

Sentiment

Score: 5

Explanation: The document is a routine SEC Form 4 filing detailing an equity compensation grant to a director, which is a standard corporate event and does not inherently convey positive or negative sentiment regarding the company's performance or outlook.

Positives

• The grant of Restricted Stock Units aligns the director's long-term interests with those of the shareholders.
• Performance-based vesting, tied to attendance requirements, encourages active participation and commitment from the director.
• The transaction was conducted under a Rule 10b5-1(c) plan, demonstrating a structured and compliant approach to insider equity transactions.

Negatives

• The RSUs do not represent immediate share ownership or cash value, as they are subject to future vesting conditions.
• The value of the compensation is contingent on the future stock price of Consumers Bancorp Inc. at the time of vesting.
• The grant is subject to forfeiture if the director does not meet the vesting conditions, such as continued board service and attendance requirements.

Risks

• Risk of forfeiture of the 801 Restricted Stock Units if the director fails to meet the specified attendance requirements or ceases to be a member of the Board of Directors before the June 2026 vesting date.
• The ultimate value realized from the RSUs is subject to the market price fluctuations of Consumers Bancorp Inc. common stock between the grant date and the vesting date.

Future Outlook

The 801 Restricted Stock Units granted to Director David R. Bickerton are anticipated to vest in June 2026, provided he continues to serve on the Board of Directors and meets attendance requirements.

Industry Context

The grant of Restricted Stock Units to a director is a common practice in the financial services industry, including community banks like Consumers Bancorp Inc., to incentivize long-term commitment and align leadership interests with shareholder value. Such equity compensation is a standard component of director remuneration packages.

Comparison to Industry Standards

• Equity compensation, such as Restricted Stock Units, is a widely adopted practice for compensating non-employee directors across the banking sector, including regional and community banks.
• The use of performance-based vesting, tied to continued service and attendance, is consistent with best practices in corporate governance to ensure directors remain engaged and committed.
• The specific number of units granted (801) would typically be benchmarked against peer companies of similar size and market capitalization within the financial services industry to assess its competitiveness and appropriateness, though specific comparative data is not provided in this filing.

Corporate Governance

Related Party Transactions

• The grant of 801 Restricted Stock Units to David R. Bickerton, a Director of Consumers Bancorp Inc., constitutes a related party transaction as it involves compensation from the company to a member of its board.

Stakeholder Impact

• Shareholders: The equity grant aligns the director's financial interests with the long-term performance of the company, potentially benefiting shareholders through improved governance and strategic oversight.
• Director (David R. Bickerton): Receives future equity compensation tied to continued service and performance, providing an incentive for ongoing commitment to the company.

Next Steps

• David R. Bickerton's continued service on the Board of Directors of Consumers Bancorp Inc.
• David R. Bickerton meeting the attendance requirements for the Board of Directors.
• The vesting of the 801 Restricted Stock Units in June 2026, upon fulfillment of the vesting conditions.

Key Dates

Keywords

Consumers Bancorp, CBKM, Restricted Stock Units, RSU, Director Compensation, SEC Form 4, Insider Transaction, Equity Grant, Corporate Governance, Rule 10b5-1