Common use of PROBLEM LOAN MANAGEMENT Clause in Contracts

PROBLEM LOAN MANAGEMENT. (1) Effective as of the date of this Agreement, the Board shall take immediate and continuing action to protect its interest in those assets criticized in the ▇▇▇, in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the Comptroller's Examiners during any examination. (2) Within ninety (90) days of this Agreement, the Board shall prepare and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a written program designed to reduce the Bank's criticized assets (the "Problem Assets Plan"). The Problem Assets Plan shall include or address the following matters: (a) aggregate reporting of criticized asset levels by type to the Board or a designated committee thereof every month; (b) specific plans for the reduction of criticized assets by asset type with target reductions by month; and (c) procedures for the monthly review and preparation of written determinations by the Board or a designated committee thereof regarding the effectiveness of the responsible officer's efforts to eliminate the weaknesses in each criticized credit relationship or Real Estate Owned ("REO") totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion). (3) The Board's compliance with Paragraph (2) of this Article shall include the development of procedures for the monthly submission and review of problem asset reports for all criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion), that require, at a minimum, analysis and documentation of the following: (a) an identification of the expected sources of repayment; (b) the current appraised value of supporting collateral and the position of the Bank's lien on such collateral where applicable, as well as other necessary documentation to support the collateral valuation; (c) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; (d) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment; (e) trigger dates for borrower actions or for loan officers to reassess the strategy and enact collection plans; (f) specific action plans and trigger dates for risk rating changes and documentation of the analysis and reasoning to support the current risk rating; (g) for criticized relationships of two-hundred fifty thousand dollars ($250,000) or above (including any sold portion) that were made for the purpose of constructing or developing commercial real estate, the reports shall also include: (i) the initial scheduled maturity date of the loan, number of extensions and/or renewals, and current maturity date; (ii) project development status; (iii) a comparison of development costs to the budgeted amount; (iv) a comparison of sales activity to the original sales projections; (v) current market conditions and activity; (vi) amount and source of initial interest reserve and the amount and source of any subsequent additions to the reserve; (vii) an assessment of the borrower's global cash flow; (viii) an assessment of the guarantor's ability to support the project; (ix) any other significant information relating to the project; and (h) a determination of whether the loan is impaired and the amount of the impairment, consistent with Accounting Standards Codification 310-10 (formerly known as FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan). (4) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the program required by this Article. (5) A copy of each problem asset report relating to criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion) prepared during the last month of each quarter end (e.g., March, June, September, December) along with any Board comments regarding the effectiveness of the effort to eliminate the weaknesses in each credit or to dispose of the REO, shall be submitted to the Assistant Deputy Comptroller within thirty (30) days of each calendar quarter end, with the first set of reports due by no later than April 30, 2012. (6) Effective as of the date of this Agreement, the Bank may not extend credit, directly or indirectly, including renewals, extensions or capitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the ▇▇▇, in any subsequent Report of Examination, in any internal or external loan review, or in any list provided to management by the Comptroller's Examiners during any examination and whose aggregate loans or other extensions equal or exceed two-hundred fifty thousand dollars ($250,000) (including any sold portion), unless each of the following conditions is met: (a) the Board or a designated committee thereof finds that the extension of additional credit is necessary to promote the best interests of the Bank and that prior to renewing, extending or capitalizing any additional credit, a majority of the Board or a designated committee thereof approves the credit extension and documents in writing the Bank’s rationale for the renewal. (b) the Board's formal plan to collect or strengthen the criticized asset will not be compromised.

PROBLEM LOAN MANAGEMENT. (1) Effective as of the date of this Agreement, the Board shall take immediate and continuing action to protect its interest in those assets criticized in the ▇▇▇, in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the Comptroller's National Bank Examiners during any examination. (2) Within ninety sixty (9060) days of this Agreement, the Board shall prepare revise, adopt, implement and submit thereafter ensure Bank adherence to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a written program of policies and procedures designed to reduce the Bank's ’s criticized assets (the "“Problem Assets Plan"Program”). The Problem Assets Plan Program shall include or address the following matters: (a) aggregate reporting of criticized asset levels by type to the Board or a designated committee thereof every month;; and (b) specific plans for the reduction of criticized assets by asset type with target reductions by month; and. (c3) The Board’s compliance with Paragraph (2) of this Article shall include the development of procedures for the monthly review and preparation of written determinations by the Board or a designated committee thereof regarding the effectiveness of the responsible officer's ’s efforts to eliminate the weaknesses in each criticized credit relationship or Real Estate Owned ("REO") totaling two-two hundred and fifty thousand dollars ($250,000) or above more, and that require the preparation of Problem Asset Reports (including any sold portion). (3“PARs” or “PAR”) The Board's compliance with Paragraph (2) of this Article shall include the development of procedures for the monthly submission and review of problem asset reports for all criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion), that requirecontain, at a minimum, analysis and documentation of the following: (a) an identification of the expected sources of repaymentrepayment and an analysis of their adequacy; (b) the current appraised value of supporting collateral and the position of the Bank's ’s lien on such collateral where applicable, as well as other necessary documentation to support the collateral valuation; (c) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; (d) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment; (e) trigger dates for positive borrower actions or for loan officers to reassess the strategy and strategy, enact collection plans, and make appropriate downgrades or place on nonaccrual; (f) specific action plans a determination of whether the loan is impaired and trigger dates for risk rating changes and documentation the amount of the analysis and reasoning to support the current risk rating;impairment, consistent with Accounting Standards Codification 310-10 (formerly known as FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan); and (g) for criticized relationships of two-two hundred and fifty thousand dollars ($250,000) or above (including any sold portion) that were made for the purpose of constructing or developing commercial real estate, the reports PARs shall also include: (i) the initial scheduled maturity date of the loan, number of extensions and/or renewals, and current maturity date; (ii) project development status; (iii) a comparison of development costs to the budgeted amount; (iv) a comparison of sales activity to the original sales projections; (v) current market conditions and activity; (vi) amount and source of initial interest reserve and the amount and source of any subsequent additions to the reserve; (viivi) an assessment of the borrower's ’s global cash flow; (viiivii) an assessment of the any guarantor's ability to support the project;’s global cash flow; and (ixviii) any other significant information relating to the project; and (h) a determination of whether the loan is impaired and the amount of the impairment, consistent with Accounting Standards Codification 310-10 (formerly known as FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan). (4) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the program required by this Article. (5) A copy of each problem asset report relating to criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion) PAR prepared during the last month of each quarter end (e.g., March, June, September, and December) ), along with any Board comments regarding the effectiveness of the effort to eliminate the weaknesses in each credit or to dispose of the REOcredit, shall be submitted to the Assistant Deputy Comptroller within thirty fifteen (3015) days of each calendar quarter end, with the first set of reports due by no later than April 30, 2012. (65) Effective as of the date of this Agreement, the Bank may not extend credit, directly or indirectly, including renewals, extensions or capitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the ▇▇▇, in any subsequent Report of Examination, in any internal or external loan review, or in any list provided to management by the Comptroller's National Bank Examiners during any examination and whose aggregate loans or other extensions of credit equal or exceed two-two hundred and fifty thousand dollars ($250,000) (including any sold portion), unless each of the following conditions is met: (a) the Board or a designated committee thereof finds that the extension of additional credit is necessary to promote the best interests of the Bank and that prior to renewing, extending extending, or capitalizing any additional credit, a majority of the Board or a designated committee thereof approves the credit extension and documents in writing writing, the reasons that such extension is necessary to promote the best interests of the Bank’s rationale for the renewal.; and (b) the Board's ’s formal plan to collect or strengthen the criticized asset will not be compromisedcompromised by the extension of credit.

PROBLEM LOAN MANAGEMENT. (1) Effective as of the date of this Agreement, the Board shall take immediate and continuing action to protect its interest in those assets criticized in the ▇▇▇, in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the Comptroller's National Bank Examiners during any examination. (2) Within ninety sixty (9060) days of this Agreement, the Board shall prepare and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a written program designed to reduce the Bank's criticized ’s classified assets (the "“Problem Assets Plan"Program”). The Problem Assets Plan Program shall include or address the following matters: (a) aggregate reporting of criticized classified asset levels by type to the Board or a designated committee thereof every month;; and (b) specific plans for the reduction of criticized classified assets by asset type with target reductions by month; and. (c3) The Board’s compliance with Paragraph (2) of this Article shall include the development of procedures for the monthly review and preparation of written determinations by the Board or a designated committee thereof regarding the effectiveness of the responsible officer's ’s efforts to eliminate the weaknesses in each criticized credit relationship or Other Real Estate Owned ("REO"“ORE”) totaling twoone-hundred fifty thousand dollars ($250,000100,000) or above more, and that require the preparation of Problem Asset Reports (including any sold portion). (3“PARs” or “PAR”) The Board's compliance with Paragraph (2) of this Article shall include the development of procedures for the monthly submission and review of problem asset reports for all criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion), that requirecontain, at a minimum, analysis and documentation of the following: (a) an identification of the expected sources of repaymentrepayment and an analysis of their adequacy; (b) the current appraised value of supporting collateral and the position of the Bank's ’s lien on such collateral where applicable, applicable as well as other necessary documentation to support the collateral valuation; (c) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; (d) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment; (e) trigger dates for positive borrower actions or for loan officers to reassess the strategy and strategy, enact collection plans, and make appropriate downgrades or place on nonaccrual; (f) specific action plans a determination of whether the loan is impaired and trigger dates for risk rating changes and documentation the amount of the analysis and reasoning to support the current risk rating;impairment, consistent with FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan; and (g) for criticized relationships of twoone-hundred fifty thousand dollars ($250,000100,000) or above (including any sold portion) that were made for the purpose of constructing or developing commercial real estateCRE, the reports PARs shall also include: (i) the initial scheduled maturity date of the loan, number of extensions and/or renewals, and current maturity date; (ii) project development status; (iii) a comparison of development costs to the budgeted amount; (iv) a comparison of sales activity to the original sales projections; (v) current market conditions and activity; (vi) amount and source of initial interest reserve and the amount and source of any subsequent additions to the reserve; (viivi) an assessment of the borrower's ’s global cash flow; (viiivii) an assessment of the any guarantor's ability to support the project;’s global cash flow; and (ixviii) any other significant information relating to the project; and (h) a determination of whether the loan is impaired and the amount of the impairment, consistent with Accounting Standards Codification 310-10 (formerly known as FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan). (4) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the program required by this Article. (5) A copy of each problem asset report relating to criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion) PAR prepared during the last month of each quarter end (e.g., March, June, September, and December) ), along with any Board comments regarding the effectiveness of the effort to eliminate the weaknesses in each credit or to dispose of the REOORE, shall be submitted to the Assistant Deputy Comptroller within thirty fifteen (3015) days of each calendar quarter end, with the first set of reports due by no later than April 30, 2012. (6) Effective as of the date of this Agreement, the Bank may not extend credit, directly or indirectly, including renewals, extensions or capitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the ▇▇▇, in any subsequent Report of Examination, in any internal or external loan review, or in any list provided to management by the Comptroller's National Bank Examiners during any examination and whose aggregate loans or other extensions of credit equal or exceed twoone-hundred fifty thousand dollars ($250,000) (including any sold portion100,000), unless each of the following conditions is met: (a) the Board or a designated committee thereof finds that the extension of additional credit is necessary to promote the best interests of the Bank and that prior to renewing, extending or capitalizing any additional credit, a majority of the Board or a designated committee thereof approves the credit extension and documents in writing writing, the reasons that such extension is necessary to promote the best interests of the Bank’s rationale for the renewal.; and (b) the Board's ’s formal plan to collect or strengthen the criticized asset will not be compromisedcompromised by the extension of credit.

PROBLEM LOAN MANAGEMENT. (1) Effective as of the date of this Agreement, the Board shall take immediate and continuing action to protect its interest in those assets criticized in the ▇▇▇, in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the Comptroller's National Bank Examiners during any examination. (2) Within ninety sixty (9060) days of this Agreement, the Board shall prepare and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a written program designed to reduce the Bank's ’s criticized assets (the "“Problem Assets Plan"Program”). The Problem Assets Plan Program shall include or address the following matters: (a) aggregate reporting of criticized asset levels by type to the Board or a designated committee thereof every month;; and (b) specific plans for the reduction of criticized assets by asset type with target reductions by month; and. (c3) The Board’s compliance with Paragraph (2) of this Article shall include the development of procedures for the monthly review and preparation and review of written determinations by the Board or a designated committee thereof regarding the effectiveness of the responsible officer's ’s efforts to eliminate the weaknesses in each criticized credit relationship or Real Estate Owned ("REO") totaling two-two hundred fifty thousand dollars ($250,000200,000) or above more, and that require the preparation of Problem Asset Reports (including any sold portion). (3“PARs” or “PAR”) The Board's compliance with Paragraph (2) of this Article shall include the development of procedures for the monthly submission and review of problem asset reports for all criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion), that requirecontain, at a minimum, analysis and documentation of the following: (a) an identification of the expected sources of repaymentrepayment and an analysis of their adequacy; (b) the current appraised value of supporting collateral and the position of the Bank's ’s lien on such collateral where applicable, applicable as well as other necessary documentation to support the collateral valuation; (c) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; (d) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment; (e) trigger dates for positive borrower actions or for loan officers to reassess the strategy and strategy, enact collection plans, and make appropriate downgrades or place on nonaccrual; (f) specific action plans a determination of whether the loan is impaired and trigger dates for risk rating changes and documentation the amount of the analysis and reasoning to support the current risk rating;impairment, consistent with FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan; and (g) for criticized relationships of two-two hundred fifty thousand dollars ($250,000200,000) or above (including any sold portion) that were made for the purpose of constructing or developing commercial real estateCRE, the reports PARs shall also include: (i) the initial scheduled maturity date of the loan, number of extensions and/or renewals, and current maturity date; (ii) project development status; (iii) a comparison of development costs to the budgeted amount; (iv) a comparison of sales activity to the original sales projections; (v) current market conditions and activity; (vi) amount and source of initial interest reserve and the amount and source of any subsequent additions to the reserve; (viivi) an assessment of the borrower's ’s global cash flow; (viiivii) an assessment of the any guarantor's ability to support the project;’s global cash flow; and (ixviii) any other significant information relating to the project; and (h) a determination of whether the loan is impaired and the amount of the impairment, consistent with Accounting Standards Codification 310-10 (formerly known as FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan). (4) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the program required by this Article. (5) A copy of each problem asset report relating to criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion) PAR prepared during the last month of each quarter end (e.g., March, June, September, and December) ), along with any Board comments regarding the effectiveness of the effort to eliminate the weaknesses in each credit or to dispose of the REOcredit, shall be submitted to the Assistant Deputy Comptroller within thirty fifteen (3015) days of each calendar quarter end, with the first set of reports due by no later than April 30, 2012. (6) Effective as of the date of this Agreement, the Bank may not extend credit, directly or indirectly, including renewals, extensions or capitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the ▇▇▇, in any subsequent Report of Examination, in any internal or external loan review, or in any list provided to management by the Comptroller's National Bank Examiners during any examination and whose aggregate loans or other extensions of credit equal or exceed two-two hundred fifty thousand dollars ($250,000) (including any sold portion200,000), unless each of the following conditions is met: (a) the Board or a designated committee thereof finds that the extension of additional credit is necessary to promote the best interests of the Bank and that prior to renewing, extending or capitalizing any additional credit, a majority of the Board or a designated committee thereof approves the credit extension and documents in writing writing, the reasons that such extension is necessary to promote the best interests of the Bank’s rationale for the renewal.; and (b) the Board's ’s formal plan to collect or strengthen the criticized asset will not be compromisedcompromised by the extension of credit.

PROBLEM LOAN MANAGEMENT. (1) Effective as of the date of this Agreement, the Board shall take immediate and continuing action to protect its interest in those assets criticized in the ▇▇▇, in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the Comptroller's National Bank Examiners during any examination. (2) Within ninety sixty (9060) days of this Agreement, the Board shall prepare and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a written program designed to reduce the Bank's ’s criticized assets (the "“Problem Assets Plan"Program”). The Problem Assets Plan Program shall include or address the following matters: (a) aggregate reporting of criticized asset levels by type to the Board or a designated committee thereof every month;; and (b) specific plans for the reduction of criticized assets by asset type with target reductions by month; andquarter. (c3) The Board’s compliance with Paragraph (2) of this Article shall include the development of procedures for the monthly review and preparation of written determinations by the Board or a designated committee thereof regarding the effectiveness of the responsible officer's ’s efforts to eliminate the weaknesses in each criticized credit relationship or Other Real Estate Owned ("REO"“ORE”) totaling two-two hundred fifty thousand dollars ($250,000) or above more, and that require the preparation of Problem Asset Reports (including any sold portion). (3“PARs” or “PAR”) The Board's compliance with Paragraph (2) of this Article shall include the development of procedures for the monthly submission and review of problem asset reports for all criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion), that requirecontain, at a minimum, analysis and documentation of the following: (a) an identification of the expected sources of repaymentrepayment and an analysis of their adequacy; (b) the current appraised value of supporting collateral and the position of the Bank's ’s lien on such collateral where applicable, applicable as well as other necessary documentation to support the collateral valuation; (c) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; (d) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment; (e) trigger dates for positive borrower actions or for loan officers to reassess the strategy and strategy, enact collection plans, and make appropriate downgrades or place on nonaccrual; (f) specific action plans a determination of whether the loan is impaired and trigger dates for risk rating changes and documentation the amount of the analysis and reasoning to support the current risk rating;impairment, consistent with FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan; and (g) for criticized relationships of two-two hundred fifty thousand dollars ($250,000) or above (including any sold portion) that were made for the purpose of constructing or developing commercial real estateCRE, the reports PARs shall also include: (i) the initial scheduled maturity date of the loan, number of extensions and/or renewals, and current maturity date; (ii) project development status; (iii) a comparison of development costs to the budgeted amount; (iv) a comparison of sales activity to the original sales projections; (v) current market conditions and activity; (vi) amount and source of initial interest reserve and the amount and source of any subsequent additions to the reserve; (viivi) an assessment of the borrower's ’s global cash flow; (viiivii) an assessment of the any guarantor's ability to support the project;’s global cash flow; and (ixviii) any other significant information relating to the project; and (h) a determination of whether the loan is impaired and the amount of the impairment, consistent with Accounting Standards Codification 310-10 (formerly known as FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan). (4) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the program required by this Article. (5) A copy of each problem asset report relating to criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion) PAR prepared during the last month of each quarter end (e.g., March, June, September, and December) ), along with any Board comments regarding the effectiveness of the effort to eliminate the weaknesses in each credit or to dispose of the REOORE, shall be submitted to the Assistant Deputy Comptroller within thirty fifteen (3015) days of each calendar quarter end, with the first set of reports due by no later than April 30, 2012. (6) Effective as of the date of this Agreement, the Bank may not extend credit, directly or indirectly, including renewals, extensions or capitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the ▇▇▇, in any subsequent Report of Examination, in any internal or external loan review, or in any list provided to management by the Comptroller's National Bank Examiners during any examination and whose aggregate loans or other extensions of credit equal or exceed two-five hundred fifty thousand dollars ($250,000) (including any sold portion500,000), unless each of the following conditions is met: (a) the Board or a designated committee thereof finds that the extension of additional credit is necessary to promote the best interests of the Bank and that prior to renewing, extending or capitalizing any additional credit, a majority of the Board or a designated committee thereof approves the credit extension and documents in writing writing, the reasons that such extension is necessary to promote the best interests of the Bank’s rationale for the renewal.; and (b) the Board's ’s formal plan to collect or strengthen the criticized asset will not be compromisedcompromised by the extension of credit.

PROBLEM LOAN MANAGEMENT. (1) Effective as of the date of this Agreement, the Board shall take immediate and continuing action to protect its interest in those assets criticized in the ▇▇▇, in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the Comptroller's National Bank Examiners during any examination. (2) Within ninety (90) days of this Agreement, the Board shall prepare and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a written program designed to reduce the Bank's criticized assets (the "Problem Assets Plan"). The Problem Assets Plan shall include or address the following matters: (a) aggregate reporting of criticized asset levels by type to the Board or a designated committee thereof every month; (b) specific plans for the reduction of criticized assets by asset type with target reductions by month; and (c) procedures for the monthly review and preparation of written determinations by the Board or a designated committee thereof regarding the effectiveness of the responsible officer's efforts to eliminate the weaknesses in each criticized credit relationship or Real Estate Owned ("REO") totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion). (3) The Board's ’s compliance with Paragraph (21) of this Article shall include the development of procedures for the monthly submission and review of problem asset reports for (beginning no later than December 2009) of all criticized credit relationships and REO or Other Real Estate (“ORE”) totaling two-hundred fifty thousand dollars ($250,00050,000) or above more, and that require the preparation of Problem Asset Reports (including any sold portion), “PARs” or “PAR”) that requirecontain, at a minimum, analysis and documentation of the following: (a) an identification of the expected sources of repaymentrepayment and an analysis of their adequacy; (b) the current appraised value of supporting collateral and the position of the Bank's ’s lien on such collateral where applicable, applicable as well as other necessary documentation to support the collateral valuation; (c) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; (d) the current grade and proposed action to eliminate the basis of criticism and the time frame for its accomplishment; (e) trigger dates for positive borrower actions or for loan officers to reassess the strategy and strategy, enact collection plans, and make appropriate downgrades or place on nonaccrual; (f) specific action plans a determination of whether the loan is impaired and trigger dates for risk rating changes and documentation the amount of the analysis and reasoning to support the current risk rating;impairment, consistent with FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan; and (g) for criticized relationships of two-hundred fifty thousand dollars ($250,00050,000) or above (including any sold portion) that were made for the purpose of constructing or developing commercial real estateCRE, the reports PARs shall also include: (i) the initial scheduled maturity date of the loan, number of extensions and/or renewals, and current maturity date; (ii) project development status;, and if applicable: (iiiA) a comparison of development costs to the budgeted amount; (ivB) a comparison of sales activity to the original sales projections; (v) current market conditions and activity; (viC) amount and source of initial interest reserve and the amount and source of any subsequent additions to the reserve; (viiD) an assessment of the borrower's ’s global cash flow; (viiiE) an assessment of the any guarantor's ability to support the project;’s global cash flow; and (ixF) any other significant information relating to the project; and (h) a determination of whether the loan is impaired and the amount of the impairment, consistent with Accounting Standards Codification 310-10 (formerly known as FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan). (4) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the program required by this Article. (5) A copy of each problem asset report relating to criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion) prepared during the last month of each quarter end (e.g., March, June, September, December) along with any Board comments regarding the effectiveness of the effort to eliminate the weaknesses in each credit or to dispose of the REO, shall be submitted to the Assistant Deputy Comptroller within thirty (30) days of each calendar quarter end, with the first set of reports due by no later than April 30, 2012. (63) Effective as of the date of this Agreement, the Bank may not extend credit, directly or indirectly, including renewals, extensions or capitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the ▇▇▇, in any subsequent Report of Examination, in any internal or external loan review, or in any list provided to management by the Comptroller's National Bank Examiners during any examination and whose aggregate loans or other extensions of credit equal or exceed two-hundred fifty thousand dollars ($250,000) (including any sold portion50,000), unless each of the following conditions is met: (a) the Board or a designated committee thereof finds that the extension of additional credit is necessary to promote the best interests of the Bank and that prior to renewing, extending or capitalizing any additional credit, a majority of the Board or a designated committee thereof approves the credit extension and documents in writing writing, the reasons that such extension is necessary to promote the best interests of the Bank’s rationale for the renewal.; and (b) the Board's ’s formal plan to collect or strengthen the criticized asset will not be compromisedcompromised by the extension of credit. (4) Copies of best interest statements prepared in response to the requirements of Paragraph (3) of this Article shall be maintained in the minutes to the Board of Director meetings and in the relevant credit file(s).

PROBLEM LOAN MANAGEMENT. (1) Effective as of the date of this Agreement, the Board shall take immediate and continuing action to protect its interest in those assets criticized in the ▇▇▇, in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the Comptroller's National Bank Examiners during any examination. (2) Within ninety sixty (9060) days of this Agreement, the Board shall prepare and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a written program designed to reduce the Bank's ’s criticized assets (the "“Problem Assets Plan"Program”). The Problem Assets Plan Program shall include or address the following matters: (a) aggregate reporting of criticized asset levels by type to the Board or on a designated committee thereof every month;quarterly basis; and (b) specific plans for the reduction of criticized assets by asset type with target reductions by month; and. (c3) The Board’s compliance with Paragraph (2) of this Article shall include the development of procedures for the monthly quarterly review and preparation of written determinations by the Board or a designated committee thereof regarding the effectiveness of the responsible officer's ’s efforts to eliminate the weaknesses in each criticized credit relationship or Real Estate Owned ("REO") totaling two-two hundred and fifty thousand dollars ($250,000) or above more, and that require the preparation of Problem Asset Reports (including any sold portion). (3“PARs” or “PAR”) The Board's compliance with Paragraph (2) of this Article shall include the development of procedures for the monthly submission and review of problem asset reports for all criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion), that requirecontain, at a minimum, analysis and documentation of the following: (a) an identification of the expected sources root cause(s) of repaymentcredit weaknesses; (b) an identification of the expected sources of repayment and an analysis of their adequacy; (c) an identification of prior charge-offs; (d) an identification of rehabilitation of the borrower or plan to exit the loan; (e) the current appraised value of supporting collateral and the position of the Bank's ’s lien on such collateral where applicable, applicable as well as other necessary documentation to support the collateral valuation; (cf) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; (dg) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment; (eh) trigger dates for positive borrower actions or for loan officers to reassess the strategy and strategy, enact collection plans, and make appropriate downgrades or place on nonaccrual; (f) specific action plans and trigger dates for risk rating changes and documentation of the analysis and reasoning to support the current risk rating; (g) for criticized relationships of two-hundred fifty thousand dollars ($250,000) or above (including any sold portion) that were made for the purpose of constructing or developing commercial real estate, the reports shall also include: (i) the initial scheduled maturity date of the loan, number of extensions and/or renewals, and current maturity date; (ii) project development status; (iii) a comparison of development costs to the budgeted amount; (iv) a comparison of sales activity to the original sales projections; (v) current market conditions and activity; (vi) amount and source of initial interest reserve and the amount and source of any subsequent additions to the reserve; (vii) an assessment of the borrower's global cash flow; (viii) an assessment of the guarantor's ability to support the project; (ix) any other significant information relating to the project; and (h) a determination of whether the loan is impaired and the amount of the impairment, consistent with Accounting Standards Codification 310-10 (formerly known as FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan). (4) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the program required by this Article. (5) A copy of each problem asset report relating to criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion) PAR prepared during the last month of each quarter end (e.g., March, June, September, and December) ), along with any Board comments regarding the effectiveness of the effort to eliminate the weaknesses in each credit or to dispose of the REOcredit, shall be submitted to the Assistant Deputy Comptroller within thirty fifteen (3015) days of each calendar quarter end, with the first set of reports due by no later than April 30, 2012. (6) Effective as of the date of this Agreement, the Bank may not extend credit, directly or indirectly, including renewals, extensions or capitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the ▇▇▇, in any subsequent Report of Examination, in any internal or external loan review, or in any list provided to management by the Comptroller's National Bank Examiners during any examination and whose aggregate loans or other extensions of credit equal or exceed two-two hundred fifty thousand dollars ($250,000) (including any sold portion), unless each of the following conditions is met: (a) the Board or a designated committee thereof finds that the extension of additional credit is necessary to promote the best interests of the Bank and that prior to renewing, extending or capitalizing any additional credit, a majority of the Board or a designated committee thereof approves the credit extension and documents in writing writing, the reasons that such extension is necessary to promote the best interests of the Bank’s rationale for the renewal.; and (b) the Board's ’s formal plan to collect or strengthen the criticized asset will not be compromisedcompromised by the extension of credit.

PROBLEM LOAN MANAGEMENT. (1) Effective as of the date of this Agreement, the Board shall take immediate and continuing action to protect its interest in those assets criticized in the ▇▇▇, in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the Comptroller's National Bank Examiners during any examination. (2) Within ninety sixty (9060) days of this Agreement, the Board shall prepare and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a written program designed to reduce the Bank's ’s criticized assets (the "“Problem Assets Plan"Program”). The Problem Assets Plan Program shall include or address the following matters: (a) aggregate reporting of criticized asset levels by type to the Board or a designated committee thereof every month; (b) specific plans for the reduction of criticized assets by asset type with target reductions by month; and (c) procedures for the monthly review and preparation of written determinations by the Board or a designated committee thereof regarding the effectiveness of the responsible officer's ’s efforts to eliminate the weaknesses in each criticized credit relationship or Other Real Estate Owned ("REO"“ORE”) totaling twofive-hundred fifty thousand dollars ($250,000500,000) or above (including any sold portion)above. (3) The Board's ’s compliance with Paragraph (2) of this Article shall include the development of procedures for the monthly submission and review of problem asset reports for all criticized credit relationships and REO ORE totaling twofive-hundred fifty thousand dollars ($250,000500,000) or above (including any sold portion)above, that require, at a minimum, analysis and documentation of the following: (a) an identification of the expected sources of repayment; (b) the current appraised value of supporting collateral and the position of the Bank's ’s lien on such collateral where applicable, applicable as well as other necessary documentation to support the collateral valuation; (c) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; (d) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment; (e) trigger dates for borrower actions or for loan officers to reassess the strategy and enact collection plans; (f) specific action plans and trigger dates for risk rating changes and documentation of the analysis and reasoning to support the current risk rating; (g) for criticized relationships of twofive-hundred fifty thousand dollars ($250,000500,000) or above (including any sold portion) that were made for the purpose of constructing or developing commercial real estate, the reports shall also include: (i) the initial scheduled maturity date of the loan, number of extensions and/or renewals, and current maturity date; (ii) project development status; (iii) a comparison of development costs to the budgeted amount; (iv) a comparison of sales activity to the original sales projections; (v) current market conditions and activity; (vi) amount and source of initial interest reserve and the amount and source of any subsequent additions to the reserve; (vii) an assessment of the borrower's ’s global cash flow; (viii) an assessment of the guarantor's ’s ability to support the project;; and (ix) any other significant information relating to the project; and (h) a determination of whether the loan is impaired and the amount of the impairment, consistent with Accounting Standards Codification 310-10 (formerly known as FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan). (4) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the program required by this Article. (5) A copy of each problem asset report relating to criticized credit relationships and REO ORE totaling twofive-hundred fifty thousand dollars ($250,000500,000) or above (including any sold portion) prepared during the last month of each quarter end (e.g., March, June, September, December) along with any Board comments regarding the effectiveness of the effort to eliminate the weaknesses in each credit or to dispose of the REOORE, shall be submitted to the Assistant Deputy Comptroller within thirty five (305) days of each regularly scheduled Board meeting held in the month following the calendar quarter end, beginning with the first set of reports due by no later than April 30, 2012meeting in October 2009. (6) Effective as of the date of this Agreement, the Bank may not extend credit, directly or indirectly, including renewals, extensions or capitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the ▇▇▇, in any subsequent Report of Examination, in any internal or external loan review, or in any list provided to management by the Comptroller's National Bank Examiners during any examination and whose aggregate loans or other extensions equal or exceed twofive-hundred fifty thousand dollars ($250,000) (including any sold portion500,000), unless each of the following conditions is met: (a) the Board or a designated committee thereof finds that the extension of additional credit is necessary to promote the best interests of the Bank and that prior to renewing, extending or capitalizing any additional credit, a majority of the Board or a designated committee thereof approves the credit extension and documents in writing writing, the reasons that such extension is necessary to promote the best interests of the Bank’s rationale for the renewal.; and (b) the Board's ’s formal plan to collect or strengthen the criticized asset will not be compromised.