Common use of Loan Loss Reserves Clause in Contracts

Loan Loss Reserves. The reserve for loan losses in BANK consolidated balance sheets dated December 31, 1996, March 31, 1997, June 30, 1997 and each subsequent period end prior to the Effective Date and as of the Effective Date are or will be adequate in all material respects under the requirements of all applicable state and federal laws and regulations to provide for possible loan losses on outstanding loans but in no event will be less than sufficient to reserve for Nonperforming Loans outstanding consistent with BANK's past practices. For purposes of this Agreement, "Nonperforming Loans" means the sum of all accruing loans over 90 days past due in the payment of principal or interest plus any loans no longer accruing interest. Nonperforming Loans does not include OREO. BANK has disclosed to PACIFIC in the BANK Disclosure Statement, and will promptly inform PACIFIC of the amounts of all loans, leases, other extensions of credit or commitments, or other interest-bearing assets of BANK, that have been classified as of the date hereof or hereafter by any internal bank examiner or any bank regulatory agency as "Other Loans Especially Mentioned", "Substandard", "Doubtful", "Loss", or words of similar import in the case of loans (or that would have been so classified, in the case of other assets, had they been loans). Notwithstanding the above, BANK shall be under no obligation to disclose to PACIFIC any such classification by any bank regulatory agency where such disclosure would violate any obligation of confidentiality of BANK imposed by such bank regulatory agency. BANK has furnished and will continue to furnish to PACIFIC true and accurate information concerning the loan portfolio of BANK, and no material information with respect to the loan portfolio has been or will be withheld from PACIFIC.

Loan Loss Reserves. The reserve allowance for loan losses in BANK the NVBancorp consolidated balance sheets dated December 31, 1996, March 31, 1997, 1998 and June 30, 1997 and each subsequent period end prior to the Effective Date 1999, are, and as of the Effective Determination Date are or will be be, adequate in all material respects under the requirements of all applicable state and federal laws and regulations to provide for possible loan losses on outstanding loans but in no event will be less than sufficient to reserve for Nonperforming Loans outstanding consistent with BANK's past practicesloans, net of recoveries. For purposes of this Agreement, "Nonperforming Loans" means the sum of all accruing loans over 90 days past due in the payment of principal or interest plus any loans no longer accruing interest. Nonperforming Loans does not include OREO. BANK NVBancorp has disclosed to PACIFIC SRNB in writing prior to the BANK Disclosure Statementdate hereof, and will promptly inform PACIFIC SRNB of the amounts of all loans, leases, other extensions of credit or commitments, or other interest-bearing assets of BANKNVBancorp and NVB, that have been classified as of the date hereof or hereafter by NVBancorp or NVB management or NVBancorp or NVB internal policy or procedure, any internal bank examiner outside review examiner, accountant or any bank regulatory agency authority as "Non-Accrual," "Watch," "Other Loans Especially Assets Specially Mentioned", ," "Substandard", ," "Doubtful", ," or "Loss", " or classified using categories or words of with similar import in the case of loans (or that would have been so classified, in the case of other interest-bearing assets, had they been loans). Notwithstanding the above, BANK NVBancorp shall be under no obligation to disclose to PACIFIC SRNB any such classification by any bank regulatory agency authority, where such disclosure would violate any obligation of confidentiality of BANK NVBancorp or NVB imposed by such bank regulatory agencyauthority. BANK NVBancorp has furnished and will continue to furnish to PACIFIC SRNB true and accurate information concerning the loan portfolio of BANKNVBancorp and NVB, and no material information with respect to the loan portfolio has been or will be withheld from PACIFICSRNB.

Loan Loss Reserves. The reserve allowance for loan losses in BANK consolidated the Scripps balance sheets dated December 31, 19961997, March 31, 19971998, June 30, 1997 and each subsequent period end prior to the Effective Date and as of the Effective Valuation Date are or and will be adequate in all material respects under the requirements of all applicable state and federal laws and regulations to provide for possible loan losses on outstanding loans but in no event will be less than sufficient to reserve for Nonperforming Loans outstanding consistent with BANK's past practicesloans, net of recoveries. For purposes of this Agreement, "Nonperforming Loans" means the sum of all accruing loans over 90 days past due in the payment of principal or interest plus any loans no longer accruing interest. Nonperforming Loans does not include OREO. BANK Scripps has disclosed to PACIFIC PCB in writing prior to the BANK Disclosure Statementdate hereof, and will promptly inform PACIFIC Scripps of the amounts of all loans, leases, other extensions of credit or commitments, or other interest-bearing assets of BANKScripps, that have been classified as of the date hereof or hereafter by Scripps management or Scripps internal policy or procedure, any internal bank examiner outside review examiner, accountant or any bank regulatory agency as "Other Loans Especially Specially Mentioned," ", Special Mention," "Substandard", ," "Doubtful", ," or "Loss", " or classified using categories or words of with similar import in the case of loans (or that would have been so classified, in the case of other interest-bearing assets, had they been loans). Notwithstanding the above, BANK Scripps shall be under no obligation to disclose to PACIFIC PCB any such classification by any bank regulatory agency where such disclosure would violate any obligation of confidentiality of BANK Scripps imposed by such bank regulatory agency. BANK Scripps has furnished and will continue to furnish to PACIFIC PCB true and accurate information concerning the loan portfolio of BANKScripps, and no material information with respect to the loan portfolio has been or will be withheld from PACIFICPCB.

Loan Loss Reserves. The reserve allowance for loan losses in BANK consolidated the PCB balance sheets dated December 31, 19961997, March 31, 19971998, June 30, 1997 and each subsequent period end prior to the Effective Date and as of the Effective Valuation Date are or and will be adequate in all material respects under the requirements of all applicable state and federal laws and regulations to provide for possible loan losses on outstanding loans but in no event will be less than sufficient to reserve for Nonperforming Loans outstanding consistent with BANK's past practicesloans, net of recoveries. For purposes of this Agreement, "Nonperforming Loans" means the sum of all accruing loans over 90 days past due in the payment of principal or interest plus any loans no longer accruing interest. Nonperforming Loans does not include OREO. BANK PCB has disclosed to PACIFIC Scripps in writing prior to the BANK Disclosure Statementdate hereof, and will promptly inform PACIFIC Scripps of the amounts of all loans, leases, other extensions of credit or commitments, or other interest-bearing assets of BANKPCB, that have been classified as of the date hereof or hereafter by PCB management or PCB internal policy or procedure, any internal bank examiner outside review examiner, accountant or any bank regulatory agency as "Other Loans Especially Specially Mentioned," ", Special Mention," "Substandard", ," "Doubtful", ," or "Loss", " or classified using categories or words of with similar import in the case of loans (or that would have been so classified, in the case of other interest-bearing assets, had they been loans). Notwithstanding the above, BANK PCB shall be under no obligation to disclose to PACIFIC Scripps any such classification by any bank regulatory agency where such disclosure would violate any obligation of confidentiality of BANK PCB imposed by such bank regulatory agency. BANK PCB has furnished and will continue to furnish to PACIFIC Scripps true and accurate information concerning the loan portfolio of BANKPCB, and no material information with respect to the loan portfolio has been or will be withheld from PACIFICScripps.

Loan Loss Reserves. The reserve allowance for loan losses in BANK consolidated the SRNB balance sheets dated December 31, 1996, March 31, 19971998, June 30, 1997 and each subsequent period end prior to the Effective Date 1999, and as of the Effective Determination Date are or and will be adequate in all material respects under the requirements of all applicable state and federal laws and regulations to provide for possible loan losses on outstanding loans but in no event will be less than sufficient to reserve for Nonperforming Loans outstanding consistent with BANK's past practicesloans, net of recoveries. For purposes of this Agreement, "Nonperforming Loans" means the sum of all accruing loans over 90 days past due in the payment of principal or interest plus any loans no longer accruing interest. Nonperforming Loans does not include OREO. BANK SRNB has disclosed to PACIFIC NVBancorp in writing prior to the BANK Disclosure Statementdate hereof, and will promptly inform PACIFIC NVBancorp of the amounts of all loans, leases, other extensions of credit or commitments, or other interest-bearing assets of BANKSRNB, that have been classified as of the date hereof or hereafter by SRNB management or SRNB internal policy or procedure, any internal bank examiner outside review examiner, accountant or any bank regulatory agency authority as "Other Loans Especially Specially Mentioned," ", Special Mention," "Substandard", ," "Doubtful", ," or "Loss", " or classified using categories or words of with similar import in the case of loans (or that would have been so classified, in the case of other interest-bearing assets, had they been loans). Notwithstanding the above, BANK SRNB shall be under no obligation to disclose to PACIFIC NVBancorp any such classification by any bank regulatory agency authority where such disclosure would violate any obligation of confidentiality of BANK SRNB imposed by such bank regulatory agencyauthority. BANK SRNB has furnished and will continue to furnish to PACIFIC NVBancorp true and accurate information concerning the loan portfolio of BANKSRNB, and no material information with respect to the loan portfolio has been or will be withheld from PACIFICNVBancorp.