Common use of LOAN PORTFOLIO MANAGEMENT Clause in Contracts

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty (60) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (b) a system to track and analyze exceptions; (c) procedures to ensure continued conformance with Call Report instructions; (d) procedures to ensure the continued accuracy of internal management information systems; (e) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters; (f) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's loan and lease portfolios; (g) a process to ensure market analysis is performed for various property types and geographic markets represented in the banks portfolio no less than quarterly; (h) a comprehensive loan review process that quantifies the overall level of credit risk and assesses the quality of credit risk management; and (i) procedures to ensure the re-appraisal of property that defines the criteria for when a new or adjusted appraisal is required based upon changes in market conditions or original project plans. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller. (3) Within sixty (60) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (e) adequacy of credit and collateral documentation; and (f) concentrations of credit. (4) Beginning December 2008, on a monthly basis management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions; (d) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank's lending and leasing policies. (5) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty ninety (6090) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) procedures to ensure that extensions address and correct credit administration deficiencies detailed in the MRAs in the Report of credit are grantedExamination as of March 31, by renewal or otherwise, 2012 (including but not limited to any borrower only after obtaining and analyzing current and satisfactory credit informationdeficiencies involving investor-owned residential real estate); (b) a system to track and analyze exceptions; (c) procedures to ensure continued conformance with Call Report instructions; (d) procedures to ensure the continued accuracy of internal management information systems; (ed) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters;; and (fe) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) a process to ensure market analysis is performed for various property types and geographic markets represented in the banks portfolio no less than quarterly; (h) a comprehensive loan review process that quantifies the overall level of credit risk and assesses the quality of credit risk management; and (i) procedures to ensure the re-appraisal of property that defines the criteria for when a new or adjusted appraisal is required based upon changes in market conditions or original project plans. (2) Upon completionadoption, a copy of the program shall be forwarded to the Assistant Deputy Comptroller. (3) Within sixty one hundred twenty days (60120) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (e) adequacy of credit and collateral documentation; and (f) concentrations of credit. (4) Beginning December 2008, on a monthly quarterly basis thereafter, management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions; (d) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank's ’s lending and leasing policies. (54) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty (60) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (b) a system to track and analyze exceptions; (c) procedures to ensure continued conformance with Call Report instructions; (d) procedures to ensure the continued accuracy of internal management information systems; (e) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters; (f) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's loan and lease portfolios; (g) a process to ensure market analysis is performed for various property types and geographic markets represented in the banks portfolio no less than quarterly; (h) a comprehensive loan review process that quantifies the overall level of credit risk and assesses the quality of credit risk management; and (i) procedures to ensure the re-appraisal of property that defines the criteria for when a new or adjusted appraisal is required based upon changes in market conditions or original project plans. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller. (3) Within sixty (60) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) previously charged-off assets and their recovery potential; (dc) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (ed) adequacy of credit and collateral documentation; and (fe) concentrations of credit. (42) Beginning December June 1, 2008, on a monthly basis management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions; (d) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank's ’s lending and leasing policies; and (h) an analysis of all the exceptions to the Bank’s underwriting policy, including all loans that were originated with an underwriting exception. This analysis should aggregate the volume of underwriting exceptions by exception type. (3) The Board shall, within ninety (90) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank’s loan portfolio management using a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately considers their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters. (4) A copy of the programs required in paragraphs 1 and 3 of this Article shall be submitted to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Assistant Deputy Comptroller for each program, the Bank shall implement and adhere to the program. (5) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty thirty (6030) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) procedures to ensure satisfactory and perfected collateral documentation; (b) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (bc) procedures to ensure conformance with loan approval requirements; (d) a system to track and analyze exceptions; (c) procedures to ensure continued conformance with Call Report instructions; (d) procedures to ensure the continued accuracy of internal management information systems;; and, (e) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters; (f) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) a process to ensure market analysis is performed for various property types and geographic markets represented in the banks portfolio no less than quarterly; (h) a comprehensive loan review process that quantifies the overall level of credit risk and assesses the quality of credit risk management; and (i) procedures to ensure the re-appraisal of property that defines the criteria for when a new or adjusted appraisal is required based upon changes in market conditions or original project plans. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller. Within thirty (3) Within sixty (6030) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems a written program which provide provides for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) previously charged-off assets and their recovery potential; (dc) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (ed) adequacy of credit and collateral documentation; and, (fe) concentrations of credit. (43) Beginning December 2008January 2006, on a monthly basis management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leasesloans; (b) the identification and amount of delinquent loans and leasesloans; (c) credit and collateral documentation exceptions; (d) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and, (h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank's ’s lending and leasing policies. (54) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article. (5) Upon completion, a copy of the programs shall be forwarded to the ADC for review and prior written determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the ADC, the Bank shall implement and adhere to the programs.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty Within ninety (6090) days, developthe Board shall review, implementrevise, and thereafter ensure Bank adherence to a its written program to improve reduce the high level of credit risk in the Bank's loan portfolio management. The program shall include, but not be limited to: (a) procedures to ensure satisfactory and perfected collateral documentation; (b) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (bc) procedures to ensure conformance with loan policy requirements; (d) a system to track and analyze credit, collateral, and loan policy exceptions; (ce) procedures to ensure continued conformance with Call Report instructionsperiodic post-funding analysis; (df) procedures to ensure the continued accuracy of internal management information systems; (eg) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters;; and (fh) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) a process to ensure market analysis is performed for various property types and geographic markets represented in the banks portfolio no less than quarterly; (h) a comprehensive loan review process that quantifies the overall level of credit risk and assesses the quality of credit risk management; and (i) procedures to ensure the re-appraisal of property that defines the criteria for when a new or adjusted appraisal is required based upon changes in market conditions or original project plans. (2) Upon completioncompletion of the revisions to the Bank’s written program, a copy of the program shall be forwarded to maintained in the Assistant Deputy ComptrollerBank and available for inspection by OCC examiners. (3) Within sixty (60) daysBeginning on December 31, the Board shall develop, implement2009, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (e) adequacy of credit and collateral documentation; and (f) concentrations of credit. (4) Beginning December 2008, on a monthly quarterly basis thereafter, management will shall provide the Board with written reports. The written reports includingshall include, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions; (d) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (hf) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank's ’s lending and leasing policies. (54) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty (60) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio managementmanagement of the consumer and commercial portfolios. The program shall include, but not be limited to: (a) procedures to ensure satisfactory and perfected collateral documentation; (b) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (bc) procedures to ensure conformance with loan approval requirements; (d) a system to track and analyze exceptions; (ce) procedures to ensure continued conformance with Call Report instructions; (df) procedures to ensure the continued accuracy of internal management information systems; (eg) an adequate training program for all loan officers to ensure that the Bank maintains adequate, qualified staff in all loan administration areas; (h) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters;; and (fi) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) a process to ensure market analysis is performed for various property types and geographic markets represented in the banks portfolio no less than quarterly; (h) a comprehensive loan review process that quantifies the overall level of credit risk and assesses the quality of credit risk management; and (i) procedures to ensure the re-appraisal of property that defines the criteria for when a new or adjusted appraisal is required based upon changes in market conditions or original project plans. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy ComptrollerComptroller and prior written determination of no supervisory objection. (3) Within sixty (60) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which that provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (e) adequacy of credit and collateral documentation; and; (f) concentrations of credit; and (g) loan growth. (4) Beginning December 2008sixty (60) days after the effective date of this Agreement, and on a monthly basis thereafter, management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions; (d) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank's ’s lending and leasing policies. (5) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty one hundred twenty (60120) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining satisfactory and analyzing current and satisfactory credit informationperfected collateral documentation; (b) procedures to ensure compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (c) a system to track and analyze exceptions; (c) procedures exceptions to ensure continued conformance with Call Report instructionsthe loan policy; (d) procedures a system to ensure the continued accuracy of internal management information systemstrack and analyze all credit exceptions; (e) a system to track and analyze all collateral exceptions; and (f) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters; (f) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's loan and lease portfolios; (g) a process to ensure market analysis is performed for various property types and geographic markets represented in the banks portfolio no less than quarterly; (h) a comprehensive loan review process that quantifies the overall level of credit risk and assesses the quality of credit risk management; and (i) procedures to ensure the re-appraisal of property that defines the criteria for when a new or adjusted appraisal is required based upon changes in market conditions or original project plans. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller. (3) Within sixty (60) daysBeginning no later than June 30, the Board shall develop, implement, 2007 and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (e) adequacy of credit and collateral documentation; and (f) concentrations of credit. (4) Beginning December 2008, on a monthly quarterly basis thereafter, management will provide the Board with written reports including, that include at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of of (i) delinquent loans and leases; (cii) credit and documentation exceptions; and (iii) collateral documentation exceptions; (dc) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank's ’s lending and leasing policies; and (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (3)(a) through (3)(d) of this Article and Paragraph. (54) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty ninety (6090) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) procedures to ensure satisfactory and perfected collateral documentation; (b) an appraisal review process which includes the review and testing of assumptions; (c) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (bd) procedures to ensure conformance with loan approval requirements; (e) a system to track and analyze exceptions; (c) procedures to ensure continued conformance with Call Report instructions; (df) procedures to ensure the continued accuracy of internal management information systems; (eg) procedures to ensure loan files are maintained with the most current information; (h) procedures to ensure annual review of credit relationships above $500 thousand dollars; (i) a performance appraisal process, including performance appraisals, appraisals and job descriptions, and incentive programs for loan officers, descriptions which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters;; and (fj) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's loan and lease portfolios; (g) a process to ensure market analysis is performed for various property types and geographic markets represented in the banks portfolio no less than quarterly; (h) a comprehensive loan review process that quantifies the overall level of credit risk and assesses the quality of credit risk management; and (i) procedures to ensure the re-appraisal of property that defines the criteria for when a new or adjusted appraisal is required based upon changes in market conditions or original project plans. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller. (3) Within sixty ninety (6090) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officerofficer or any other relevant measure; (c) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (ed) adequacy of credit and collateral documentation; and (fe) concentrations of credit. (4) Beginning December 2008June 30, 2009, on a monthly quarterly basis management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation documentation, including financial statement, exceptions; (d) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (hg) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, including applicable underwriting guidelines, and exceptions to the Bank's lending and leasing policies. (5) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty (60) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) procedures to ensure satisfactory and perfected collateral documentation; (b) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (bc) procedures to ensure conformance with loan approval requirements; (d) a system to track and analyze exceptions; (ce) procedures to ensure continued conformance with Call Report instructions; (df) procedures to ensure the continued accuracy of internal management information systems;; and, (e) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters; (fg) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) a process to ensure market analysis is performed for various property types and geographic markets represented in the banks portfolio no less than quarterly; (h) a comprehensive loan review process that quantifies the overall level of credit risk and assesses the quality of credit risk management; and (i) procedures to ensure the re-appraisal of property that defines the criteria for when a new or adjusted appraisal is required based upon changes in market conditions or original project plans. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller. (3) Within sixty (60) daysBeginning March 31, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (e) adequacy of credit and collateral documentation; and (f) concentrations of credit. (4) Beginning December 20082002, on a monthly quarterly, basis management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions; (d) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank's ’s lending and leasing policies. (5) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty one hundred twenty (60120) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) staffing and organizational structure within the credit administration/credit policy department that ensures: (i) competent management overseeing this function with the appropriate credit skills and leadership abilities; (ii) complete and timely financial analysis including stress testing prior to loan approval and at each annual update; and (iii) assignment of appropriate risk ratings at inception and throughout the life of the credit. (b) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (bc) procedures to ensure conformance with loan approval requirements; (d) a system to track and analyze exceptions; (ce) procedures to ensure continued conformance with Call Report instructions; (df) procedures to ensure the continued accuracy of internal management information systems;; and (e) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters; (fg) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) a process to ensure market analysis is performed for various property types and geographic markets represented in the banks portfolio no less than quarterly; (h) a comprehensive loan review process that quantifies the overall level of credit risk and assesses the quality of credit risk management; and (i) procedures to ensure the re-appraisal of property that defines the criteria for when a new or adjusted appraisal is required based upon changes in market conditions or original project plans. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller. (3) Within sixty thirty (6030) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (e) adequacy of credit and collateral documentation; and (f) concentrations of credit. (4) Beginning December 2008, on a monthly basis management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions; (db) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (hc) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank's ’s lending and leasing policies. (54) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty ninety (6090) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) procedures to strengthen credit underwriting; (b) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (bc) procedures to ensure conformance with loan approval requirements; (d) a system to track and analyze exceptions; (c) procedures to ensure continued conformance with Call Report instructions; (de) procedures to ensure the continued accuracy of internal management information systems;; and (ef) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters; (f) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's loan and lease portfolios; (g) a process to ensure market analysis is performed for various property types and geographic markets represented in the banks portfolio no less than quarterly; (h) a comprehensive loan review process that quantifies the overall level of credit risk and assesses the quality of credit risk management; and (i) procedures to ensure the re-appraisal of property that defines the criteria for when a new or adjusted appraisal is required based upon changes in market conditions or original project plans. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller. (3) Within sixty ninety (6090) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) previously charged-off assets and their recovery potential; (dc) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (ed) adequacy of credit and collateral documentation; and (fe) concentrations of credit. (4) Beginning December 2008July 31, 2002, on a monthly basis management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions; (d) the identification and status of credit related violations of law, rule or regulation; (ed) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (he) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank's ’s lending and leasing policies. (5) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty ninety (6090) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) procedures to ensure satisfactory and perfected collateral documentation; (b) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (bc) procedures to ensure conformance with loan approval requirements; (d) a system to track and analyze exceptions; (c) procedures to ensure continued conformance with Call Report instructions; (de) procedures to ensure the continued accuracy of internal management information systems; (e) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters; (f) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) a process to ensure market analysis is performed for various property types and geographic markets represented in the banks portfolio no less than quarterly; (h) a comprehensive loan review process that quantifies the overall level of credit risk and assesses the quality of credit risk management; and (i) procedures to ensure the re-appraisal of property that defines the criteria for when a new or adjusted appraisal is required based upon changes in market conditions or original project plans. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller. (3) Within sixty ninety (6090) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (ec) adequacy of credit and collateral documentation; and (fd) concentrations of credit. (4) Beginning December 2008immediately, on a monthly quarterly basis management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions; (d) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank's ’s lending and leasing policies. (5) Within thirty (30) days, the Board shall adopt and implement written policies and procedures governing the supervision and control of nonaccrual loans. Such policies and procedures shall: (a) be consistent with the accounting requirements contained in the Call Report Instructions; (b) address the circumstances under which accrued interest due on a loan may be added to the outstanding principal amount when the loan is renewed or restructured; and (c) require the monthly presentation to the Board of all loans meeting any of the nonaccrual criteria. (6) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty ninety (6090) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) procedures to strengthen credit underwriting, particularly in the commercial and commercial real estate loan portfolio; (b) procedures to ensure satisfactory and perfected collateral documentation; (c) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (bd) procedures to ensure conformance with loan approval requirements; (e) a system to track and analyze exceptions; (c) procedures to ensure continued conformance with Call Report instructions; (df) procedures to ensure the continued accuracy of internal management information systems; (eg) procedures to strengthen management of loan operations and to maintain an adequate, qualified staff in all Credit Department functional areas; (h) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters;; and (fi) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) a process to ensure market analysis is performed for various property types and geographic markets represented in the banks portfolio no less than quarterly; (h) a comprehensive loan review process that quantifies the overall level of credit risk and assesses the quality of credit risk management; and (i) procedures to ensure the re-appraisal of property that defines the criteria for when a new or adjusted appraisal is required based upon changes in market conditions or original project plans. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller. (3) Within sixty ninety (6090) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (ec) adequacy of credit and collateral documentation; and (fd) concentrations of credit. (4) Beginning December 2008October 31, 2001, on a monthly basis management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions; (d) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank's ’s lending and leasing policies. (5) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty one hundred twenty (60120) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's ’s loan portfolio management. The program shall include, but not be limited to: (a) staffing and organizational structure within the credit administration/credit policy department that ensures: (i) competent management overseeing this function with the appropriate credit skills and leadership abilities; (ii) complete and timely financial analysis including stress testing prior to loan approval and at each annual update; and (iii) assignment of appropriate risk ratings at inception and throughout the life of the credit. (b) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (bc) procedures to ensure conformance with loan approval requirements; (d) a system to track and analyze exceptions; (ce) procedures to ensure continued conformance with Call Report instructions; (df) procedures to ensure the continued accuracy of internal management information systems;; and (e) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters; (fg) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) a process to ensure market analysis is performed for various property types and geographic markets represented in the banks portfolio no less than quarterly; (h) a comprehensive loan review process that quantifies the overall level of credit risk and assesses the quality of credit risk management; and (i) procedures to ensure the re-appraisal of property that defines the criteria for when a new or adjusted appraisal is required based upon changes in market conditions or original project plans. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller. (3) Within sixty thirty (6030) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (e) adequacy of credit and collateral documentation; and (f) concentrations of credit. (4) Beginning December 2008, on a monthly basis management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions; (db) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (hc) the identification of loans and leases not in conformance with the Bank's ’s lending and leasing policies, and exceptions to the Bank's ’s lending and leasing policies. (54) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty ninety (6090) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) review and revise the Bank's written loan policy wherein the Board shall refer to “Loan Portfolio Management” booklet of the Comptroller’s (b) procedures to ensure satisfactory and perfected collateral documentation; (c) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (bd) procedures to ensure conformance with loan approval requirements; (e) a system to track and analyze underwriting policy, credit and collateral exceptions; (cf) procedures to ensure continued conformance with Call Report instructions; (dg) procedures to ensure the continued accuracy of internal management information systems; (eh) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters;; and (fi) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) a process to ensure market analysis is performed for various property types and geographic markets represented in the banks portfolio no less than quarterly; (h) a comprehensive loan review process that quantifies the overall level of credit risk and assesses the quality of credit risk management; and (i) procedures to ensure the re-appraisal of property that defines the criteria for when a new or adjusted appraisal is required based upon changes in market conditions or original project plans. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller. (3) Within sixty thirty (6030) days, the Board shall adopt and implement written policies and procedures governing the supervision and control of nonaccrual loans. Such policies and procedures shall: (a) be consistent with the accounting requirements contained in the Call Report Instructions; (b) address the circumstances under which accrued interest due on a loan may be added to the outstanding principal amount when the loan is renewed or restructured; and (c) require the monthly presentation to the Board of all loans meeting any of the nonaccrual criteria. (4) Within ninety (90) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) previously charged-off assets and their recovery potential;; and, (dc) compliance with the Bank's loan approval requirements and lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (e) adequacy of credit and collateral documentation; and (f) concentrations of credit. (45) Beginning December 2008June 30, 2010, on a monthly quarterly basis management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions; (d) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank's ’s lending and leasing policies. (5) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty (60) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (b) a system to track and analyze exceptions; (c) procedures to ensure continued conformance with Call Report instructions; (d) procedures to ensure the continued accuracy of internal management information systems; (e) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters; (f) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) a process to ensure market analysis is performed for various property types and geographic markets represented in the banks portfolio no less than quarterly; (h) a comprehensive loan review process that quantifies the overall level of credit risk and assesses the quality of credit risk management; and (i) procedures to ensure the re-appraisal of property that defines the criteria for when a new or adjusted appraisal is required based upon changes in market conditions or original project plans. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller. (3) Within sixty (60) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (e) adequacy of credit and collateral documentation; and (f) concentrations of credit. (4) Beginning December 2008, on a monthly basis management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions; (d) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank's ’s lending and leasing policies. (5) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty ninety (6090) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) procedures to ensure satisfactory and perfected collateral documentation; (b) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (bc) procedures to ensure conformance with loan approval requirements; (d) a system to track and analyze exceptions; (ce) procedures to ensure continued conformance with Call Report instructions; (df) procedures to ensure the continued accuracy of internal management information systems;; and (e) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters; (fg) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) a process to ensure market analysis is performed for various property types and geographic markets represented in the banks portfolio no less than quarterly; (h) a comprehensive loan review process that quantifies the overall level of credit risk and assesses the quality of credit risk management; and (i) procedures to ensure the re-appraisal of property that defines the criteria for when a new or adjusted appraisal is required based upon changes in market conditions or original project plans. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller. (3) Within sixty ninety (6090) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (ec) adequacy of credit and collateral documentation; and (fd) concentrations of credit. (4) Beginning December 2008May 31, 2012, on a monthly quarterly basis management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions; (d) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (hf) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank's ’s lending and leasing policies. (5) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within Within sixty (60) days, the Board shall develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) procedures to ensure satisfactory and perfected collateral documentation; (b) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (bc) procedures to ensure conformance with loan approval requirements; (d) a system to track and analyze exceptions; (ce) procedures to ensure continued conformance governing the identification and accounting for nonaccrual loans that are consistent with the requirements contained in the Call Report instructionsInstructions; (df) procedures to ensure the continued accuracy of internal management information systems;; and (e) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters; (fg) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) a process to ensure market analysis is performed for various property types and geographic markets represented in the banks portfolio no less than quarterly; (h) a comprehensive loan review process that quantifies the overall level of credit risk and assesses the quality of credit risk management; and (i) procedures to ensure the re-appraisal of property that defines the criteria for when a new or adjusted appraisal is required based upon changes in market conditions or original project plans. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller. (3) Within sixty (60) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans by type, collateral and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (e) adequacy of credit and collateral documentation; and (f) concentrations of credit. (4) Beginning December 2008June 30, 2012, on a monthly basis quarterly basis, management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions; (d) the identification and status of credit credit-related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank's ’s loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank's ’s lending and leasing policies. (5) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.