Common use of Ownership of Property; Insurance Coverage Clause in Contracts

Ownership of Property; Insurance Coverage. 5.8.1. Somerset Bank and each Somerset Bank Subsidiary has good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank or each Somerset Bank Subsidiary in the conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheets), subject to no material Liens, except (i) those items that secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLB, inter-bank credit facilities, or any transaction by a Somerset Bank Subsidiary acting in a fiduciary capacity, and (ii) statutory liens for amounts not yet delinquent or that are being contested in good faith. Somerset Bank and the Somerset Bank Subsidiaries, as lessee, have the right under valid and subsisting leases of real and personal properties used by Somerset Bank and its Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. 5.8.2. Somerset Bank and each Somerset Bank Subsidiary currently maintain insurance considered by Somerset Bank to be reasonable for their respective operations. Neither Somerset Bank nor any Somerset Bank Subsidiary has received notice from any insurance carrier that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank or any Somerset Bank Subsidiary under such policies. All such insurance is valid and enforceable and in full force and effect, and within the last three years Somerset Bank and each Somerset Bank Subsidiary has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 identifies all policies of insurance maintained by Somerset Bank and each Somerset Bank Subsidiary.

Ownership of Property; Insurance Coverage. 5.8.14.9.1. Somerset Bank Regal Bancorp and each Somerset Bank Regal Bancorp Subsidiary has good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank Regal Bancorp or each Somerset Bank Regal Bancorp Subsidiary in the conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Regal Bancorp Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheets), subject to no material Liens, and except for (i) those items that secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLB, inter-bank credit facilities, or any transaction by a Somerset Bank Regal Bancorp Subsidiary acting in a fiduciary capacity, and (ii) statutory liens for amounts not yet delinquent or that are being contested in good faith. Somerset Bank Regal Bancorp and the Somerset Bank Regal Bancorp Subsidiaries, as lessee, have the right under valid and subsisting existing leases of real and personal properties used by Somerset Bank Regal Bancorp and its Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. Such existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in all material respects in the notes to the Regal Bancorp Financial Statements. 5.8.24.9.2. Somerset Bank With respect to all material agreements pursuant to which Regal Bancorp or any Regal Bancorp Subsidiary has purchased securities subject to an agreement to resell, if any, Regal Bancorp or such Regal Bancorp Subsidiary, as the case may be, has a lien or security interest (which to Regal Bancorp’s Knowledge is a valid, perfected first lien) in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. 4.9.3. Regal Bancorp and each Somerset Bank Regal Bancorp Subsidiary currently maintain insurance considered by Somerset Bank each of them to be reasonable for their respective operations. Neither Somerset Bank Regal Bancorp nor any Somerset Bank Regal Bancorp Subsidiary has received notice from any insurance carrier that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank Regal Bancorp or any Somerset Bank Regal Bancorp Subsidiary under such policies. All such insurance is valid and enforceable and in full force and effect, and within the last three years Somerset Bank Regal Bancorp and each Somerset Bank Regal Bancorp Subsidiary has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR REGAL BANCORP DISCLOSURE SCHEDULE 5.8.2 4.9.3 identifies all policies of insurance maintained by Somerset Bank Regal Bancorp and each Somerset Bank Regal Bancorp Subsidiary.

Ownership of Property; Insurance Coverage. 5.8.1. Somerset Bank (a) Except as disclosed in PFC DISCLOSURE SCHEDULE 3.09, PFC and each Somerset Bank Subsidiary has the PFC Subsidiaries have good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank PFC or each Somerset Bank any PFC Subsidiary in the conduct of its their businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Financial Statements PFC Regulatory Reports and in the PFC Financials or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheets), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLBFHLB of New York, inter-bank credit facilities, or any transaction by a Somerset Bank PFC Subsidiary acting in a fiduciary capacity, and (ii) statutory liens for amounts not yet delinquent or that which are being contested in good faith. Somerset Bank , and (iii) items permitted under Article V. PFC and the Somerset Bank PFC Subsidiaries, as lessee, have the right under valid and subsisting leases of real and personal properties used by Somerset Bank PFC and its Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. Except as disclosed in PFC DISCLOSURE SCHEDULE 3.09, such existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in the Notes to the PFC Financials. 5.8.2. Somerset Bank (b) With respect to all material agreements pursuant to which PFC or any PFC Subsidiary has purchased securities subject to an agreement to resell, if any, PFC or such PFC Subsidiary, as the case may be, has a lien or security interest (which to PFC's knowledge is a valid, perfected first lien) in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. (c) PFC and each Somerset Bank PFC Subsidiary currently maintain maintains insurance considered by Somerset Bank PFC to be reasonable for their respective operations, in accordance with good business practice. Neither Somerset Bank nor any Somerset Bank Subsidiary PFC has not received notice from any insurance carrier that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank or any Somerset Bank Subsidiary PFC under such policies. All such insurance is valid and enforceable and in full force and effect, and within the last three years Somerset Bank and each Somerset Bank Subsidiary PFC has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 identifies all policies of insurance maintained by Somerset Bank and each Somerset Bank Subsidiary.

Ownership of Property; Insurance Coverage. 5.8.1. Somerset Bank (a) Except as disclosed in SWB Disclosure Schedule 3.09, SWB and each Somerset Bank Subsidiary has the SWB Subsidiaries have good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank SWB or each Somerset Bank any SWB Subsidiary in the conduct of its their businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Financial Statements SWB Regulatory Reports and in the SWB Financials or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheets), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLBany Federal Reserve Bank or any Federal Home Loan Bank, inter-bank credit facilities, or any transaction by a Somerset Bank SWB Subsidiary acting in a fiduciary capacity, and (ii) statutory liens for amounts not yet delinquent or that which are being contested in good faith, and (iii) items permitted under Article IV. Somerset Bank SWB and the Somerset Bank SWB Subsidiaries, as lessee, have the right under valid and subsisting leases of real and personal properties used by Somerset Bank SWB and its Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. Except as disclosed in SWB Disclosure Schedule 3.09, such existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in the Notes to the SWB Financials. 5.8.2. Somerset Bank (b) With respect to all material agreements pursuant to which SWB or any SWB Subsidiary has purchased securities subject to an agreement to resell, if any, SWB or such SWB Subsidiary, as the case may be, has a lien or security interest (which to SWB's knowledge is a valid, perfected first lien) in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. (c) SWB and each Somerset Bank SWB Subsidiary currently maintain maintains insurance considered by Somerset Bank SWB to be reasonable for their respective operationsoperations and similar in scope and coverage to that customarily maintained by other businesses similarly engaged in a similar location, in accordance with good business practice. Neither Somerset Bank nor any Somerset Bank Subsidiary SWB has not received notice from any insurance carrier that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank or any Somerset Bank Subsidiary SWB under such policies. All such insurance is valid and enforceable and in full force and effect, and within the last three years Somerset Bank and each Somerset Bank Subsidiary SWB has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 identifies all policies of insurance maintained by Somerset Bank and each Somerset Bank Subsidiary.

Ownership of Property; Insurance Coverage. 5.8.14.10.1. Somerset Bank LNB Bancorp and each Somerset Bank LNB Bancorp Subsidiary has have good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank LNB Bancorp or each Somerset Bank LNB Bancorp Subsidiary in the conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank LNB Bancorp Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheets), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLBFHLB of Cincinnati, inter-bank credit facilities, reverse repurchase agreements or any transaction by a Somerset Bank LNB Bancorp or an LNB Bancorp Subsidiary acting in a fiduciary capacity, (ii) mechanics liens and similar liens for labor, materials, services or supplies provided for such property and incurred in the ordinary course of business for amounts not yet delinquent or which are being contested in good faith, and (iiiii) statutory liens for amounts not yet delinquent or that which are being contested in good faith. Somerset Bank LNB Bancorp and the Somerset Bank Subsidiarieseach LNB Bancorp Subsidiary, as lessee, have the right under valid and subsisting existing leases of real and personal properties used by Somerset Bank LNB Bancorp and its the LNB Bancorp Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. 5.8.24.10.2. Somerset Bank With respect to all material agreements pursuant to which LNB Bancorp or any LNB Bancorp Subsidiary has purchased securities subject to an agreement to resell, if any, LNB Bancorp or such LNB Bancorp Subsidiary, as the case may be, has a lien or security interest (which to LNB Bancorp’s Knowledge is a valid, perfected first lien) in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. 4.10.3. LNB Bancorp and each Somerset Bank LNB Bancorp Subsidiary currently maintain insurance considered by Somerset Bank LNB Bancorp to be reasonable for their respective operations. Neither Somerset Bank LNB Bancorp nor any Somerset Bank LNB Bancorp Subsidiary has received notice from any insurance carrier that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank LNB Bancorp or any Somerset Bank LNB Bancorp Subsidiary under such policies. All such insurance is valid and enforceable and in full force and effecteffect (other than insurance that expires in accordance with its terms), and within the last three years Somerset Bank LNB Bancorp and each Somerset Bank LNB Bancorp Subsidiary has have received each type of insurance coverage for which it has they have applied and during such periods has have not been denied indemnification for any material claims submitted under any of its their insurance policies. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 LNB Bancorp Disclosure Schedule 4.10.3 identifies all policies of insurance maintained by Somerset Bank LNB Bancorp and each Somerset Bank SubsidiaryLNB Bancorp Subsidiary as well as the other matters required to be disclosed under this Section 4.10.3.

Ownership of Property; Insurance Coverage. 5.8.14.10.1. Somerset Bank CNB and each Somerset Bank CNB Subsidiary has good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank CNB or each Somerset Bank CNB Subsidiary in the conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets sheet contained in the Somerset Bank most recent CNB Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheetssheet), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLB, inter-bank credit facilities, reverse repurchase agreements or any transaction by a Somerset Bank CNB Subsidiary acting in a fiduciary capacity, and (ii) statutory liens for amounts not yet delinquent or that which are being contested in good faith. Somerset Bank CNB and the Somerset Bank CNB Subsidiaries, as lessee, have the right under valid and subsisting existing leases of real and personal properties used by Somerset Bank CNB and its the CNB Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. Such existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in the notes to the CNB Financial Statements. 5.8.24.10.2. Somerset Bank With respect to all material agreements pursuant to which CNB or any CNB Subsidiary has purchased securities subject to an agreement to resell, if any, CNB or such CNB Subsidiary, as the case may be, has a lien or security interest in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. 4.10.3. CNB and each Somerset Bank CNB Subsidiary currently maintain insurance considered by Somerset Bank each of them to be reasonable for their respective operations. Neither Somerset Bank CNB nor any Somerset Bank Subsidiary CNB Subsidiary, has received notice from any insurance carrier on or before the date hereof that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank CNB or any Somerset Bank CNB Subsidiary under such policies. All such insurance is valid and enforceable and in full force and effecteffect (other than insurance that expires in accordance with its terms), and within the last three years Somerset Bank CNB and each Somerset Bank CNB Subsidiary has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 identifies all policies of insurance maintained by Somerset Bank and each Somerset Bank SubsidiaryCNB Disclosure Schedule 4.

Ownership of Property; Insurance Coverage. 5.8.1. Somerset Bank (a) FLC and each Somerset Bank Subsidiary has the FLC Subsidiaries have, or will have as to property acquired after the date hereof, good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank FLC or each Somerset Bank any FLC Subsidiary in the conduct of its their businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Financial Statements FLC Regulatory Reports and in the FLC Financials or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of for fair value, in the ordinary course of business, since the date of such balance sheets), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that which secure repurchase agreements and liabilities for public or statutory obligations or any discount withborrowed money from a Federal Home Loan Bank, borrowing from or other obligations to the FHLB, inter-bank credit facilities, or any transaction by a Somerset Bank Subsidiary acting in a fiduciary capacity, and (ii) statutory liens for amounts not yet delinquent or that which are being contested in good faith, (iii) items permitted under Article IV, and (iv) the items disclosed in the FLC Disclosure Schedule. Somerset Bank FLC and the Somerset Bank FLC Subsidiaries, as lessee, have the right under valid and subsisting leases of real and personal properties used by Somerset Bank FLC and its Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. Except as disclosed in the FLC Disclosure Schedule, such existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in the notes to the FLC Financials. 5.8.2. Somerset Bank (b) With respect to all agreements pursuant to which FLC or any FLC Subsidiary has purchased securities subject to an agreement to resell, if any, FLC or such FLC Subsidiary, as the case may be, has a valid, perfected first lien or security interest in the securities or other collateral securing the repurchase agreement, and each Somerset Bank Subsidiary the value of such collateral equals or exceeds the amount of the debt secured thereby. (c) FLC and the FLC Subsidiaries currently maintain insurance considered by Somerset Bank FLC to be reasonable for their respective operationsoperations and similar in scope and coverage to that maintained by other businesses similarly engaged. Neither Somerset Bank FLC nor any Somerset Bank FLC Subsidiary has received notice from any insurance carrier that (i) such insurance will be canceled cancelled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs with respect to such policies of insurance will be substantially increased. There Except as set forth on the FLC Disclosure Schedule, there are presently no material claims pending under such policies of insurance and no notices have been given by Somerset FLC or First Lehigh Bank or any Somerset Bank Subsidiary under such policies. All such insurance is valid and enforceable and in full force and effect, and within the last three ten years Somerset Bank and each Somerset Bank Subsidiary FLC has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 identifies all policies of insurance maintained by Somerset Bank and each Somerset Bank Subsidiary.

Ownership of Property; Insurance Coverage. 5.8.14.10.1. Somerset Bank Yardville and each Somerset Bank Yardville Subsidiary has good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank Yardville or each Somerset Bank Yardville Subsidiary in the conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Yardville Regulatory Reports and in the Yardville Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheets), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLB, inter-bank credit facilities, or any transaction by a Somerset Bank Yardville Subsidiary acting in a fiduciary capacity, (ii) those reflected in the notes to the Yardville Financial Statements, and (iiiii) statutory liens for amounts not yet delinquent or that which are being contested in good faithfaith (collectively “Yardville Permitted Encumbrances”). Somerset Bank Yardville and the Somerset Bank Yardville Subsidiaries, as lessee, have the right under valid and subsisting existing leases of real and personal properties used by Somerset Bank Yardville and its Subsidiaries in the conduct of their businesses or otherwise reflected in the Yardville Financial Statements to occupy or use all such properties as presently occupied and used by each of themthem and such right is free and clear of all material encumbrances, liens, mortgages, security interests or pledges of any nature whatsoever, except for Yardville Permitted Encumbrances. Such existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in all material respects in the notes to the Yardville Financial Statements. There are no pending or, to Yardville’s Knowledge, threatened condemnation proceedings against such leased or owned real property. To Yardville’s Knowledge, Yardville and its Subsidiaries are in compliance with all applicable health and safety related requirements for such owned and leased real property, including those under the Americans with Disabilities Act of 1990 and the Occupational Health and Safety Act of 1970. 5.8.24.10.2. Somerset Bank Each of Yardville and its Subsidiaries has good title to all securities owned by it (except those sold under repurchase agreements or held in any fiduciary or agency capacity), free and clear of any liens, except to the extent such securities are pledged in the ordinary course of business to secure obligations of Yardville or its Subsidiaries. Such securities are valued on the books of Yardville in accordance with GAAP in all material respects. Yardville and its Subsidiaries and their respective businesses employ investment, securities, commodities, risk management and other policies, practices and procedures which Yardville believes are prudent and reasonable in the context of such businesses. With respect to all agreements pursuant to which Yardville or any Yardville Subsidiary has purchased securities subject to an agreement to resell, if any, Yardville or such Yardville Subsidiary, as the case may be, has a lien or security interest (which to Yardville’s Knowledge is a valid, perfected first lien) in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. 4.10.3. Yardville and each Somerset Bank Yardville Subsidiary currently maintain insurance considered by Somerset Bank each of them to be reasonable for their respective operations. Neither Somerset Bank Yardville nor any Somerset Bank Yardville Subsidiary has received notice from any current insurance carrier that that: (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, ; or (ii) premium costs with respect to such policies of insurance will be substantially increased. There Except as disclosed in YARDVILLE DISCLOSURE SCHEDULE 4.10.3, there are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank Yardville or any Somerset Bank Yardville Subsidiary under such policies. All such insurance is valid and enforceable and in full force and effect, and within the last three years Somerset Bank Yardville and each Somerset Bank Yardville Subsidiary has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP YARDVILLE DISCLOSURE SCHEDULE 5.8.2 4.10.3 identifies all material policies of insurance maintained by Somerset Bank Yardville and each Somerset Bank SubsidiaryYardville Subsidiary (other than those providing for employee or director welfare or similar benefits) as well as the other matters required to be disclosed under this Section.

Ownership of Property; Insurance Coverage. 5.8.14.10.1. Somerset Bank Colonial Financial and each Somerset Bank Colonial Financial Subsidiary has have good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank Colonial Financial or each Somerset Bank Colonial Financial Subsidiary in the conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Colonial Financial Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheets), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLB, inter-bank credit facilities, reverse repurchase agreements or any transaction by Colonial Financial or a Somerset Bank Colonial Financial Subsidiary acting in a fiduciary capacity, (ii) mechanics liens and similar liens for labor, materials, services or supplies provided for such property and incurred in the ordinary course of business for amounts not yet delinquent or which are being contested in good faith, and (iiiii) statutory liens for amounts not yet delinquent or that which are being contested in good faith. Somerset Bank Colonial Financial and the Somerset Bank Subsidiarieseach Colonial Financial Subsidiary, as lessee, have the right under valid and subsisting existing leases of real and personal properties used by Somerset Bank Colonial Financial and its the Colonial Financial Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. 5.8.24.10.2. Somerset Bank With respect to all material agreements pursuant to which Colonial Financial or any Colonial Financial Subsidiary has purchased securities subject to an agreement to resell, if any, Colonial Financial or such Colonial Financial Subsidiary, as the case may be, has a lien or security interest (which to Colonial Financial’s Knowledge is a valid, perfected first lien) in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. 4.10.3. Colonial Financial and each Somerset Bank Colonial Financial Subsidiary currently maintain insurance considered by Somerset Bank Colonial Financial to be reasonable for their respective operations. Neither Somerset Bank Colonial Financial nor any Somerset Bank Colonial Financial Subsidiary has received notice from any insurance carrier that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank Colonial Financial or any Somerset Bank Colonial Financial Subsidiary under such policies. All such insurance is valid and enforceable and in full force and effect, and within the last three years Somerset Bank Colonial Financial and each Somerset Bank Colonial Financial Subsidiary has have received each type of insurance coverage for which it has they have applied and during such periods has have not been denied indemnification for any material claims submitted under any of its their insurance policies. SR BANCORP Colonial Financial DISCLOSURE SCHEDULE 5.8.2 4.10.3 identifies all policies of insurance maintained by Somerset Bank Colonial Financial and each Somerset Bank SubsidiaryColonial Financial Subsidiary as well as the other matters required to be disclosed under this Section.

Ownership of Property; Insurance Coverage. 5.8.14.10.1. Somerset Bank Synergy and each Somerset Bank Synergy Subsidiary has good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank Synergy or each Somerset Bank Synergy Subsidiary in the conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Synergy Regulatory Reports and in the Synergy Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheets), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLB, inter-bank credit facilities, or any transaction by a Somerset Bank Synergy Subsidiary acting in a fiduciary capacity, (ii) those reflected in the notes to the Synergy Financial Statements, and (iiiii) statutory liens for amounts not yet delinquent or that which are being contested in good faith. Somerset Bank Synergy and the Somerset Bank Synergy Subsidiaries, as lessee, have the right under valid and subsisting existing leases of real and personal properties used by Somerset Bank Synergy and its Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. Such existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in all material respects in the notes to the Synergy Financial Statements. 5.8.24.10.2. Somerset Bank With respect to all agreements pursuant to which Synergy or any Synergy Subsidiary has purchased securities subject to an agreement to resell, if any, Synergy or such Synergy Subsidiary, as the case may be, has a lien or security interest (which to Synergy’s Knowledge is a valid, perfected first lien) in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. 4.10.3. Synergy and each Somerset Bank Synergy Subsidiary currently maintain insurance considered by Somerset Bank each of them to be reasonable for their respective operations. Neither Somerset Bank Synergy nor any Somerset Bank Synergy Subsidiary has received notice from any current insurance carrier that that: (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, ; or (ii) premium costs with respect to such policies of insurance will be substantially increased. There Except as disclosed in SYNERGY DISCLOSURE SCHEDULE 4.10.3, there are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank Synergy or any Somerset Bank Synergy Subsidiary under such policies. All such insurance is valid and enforceable and in full force and effect, and within Within the last three years Somerset Bank Synergy and each Somerset Bank Synergy Subsidiary has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP SYNERGY DISCLOSURE SCHEDULE 5.8.2 4.10.3 identifies all material policies of insurance maintained by Somerset Bank Synergy and each Somerset Bank SubsidiarySynergy Subsidiary (other than those providing for employee or director welfare or similar benefits) as well as the other matters required to be disclosed under this Section.

Ownership of Property; Insurance Coverage. 5.8.1. Somerset Bank 5.10.1 CUNB and each Somerset Bank Subsidiary has CUB have good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank CUNB or each Somerset Bank Subsidiary of CUNB in the conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Financial Statements CUNB SEC Documents or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheets), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLBFHLB or Federal Reserve Bank, inter-bank credit facilities, or any transaction by a Somerset Bank Subsidiary of CUNB acting in a fiduciary capacity, and ; (ii) statutory liens for amounts not yet delinquent or that which are being contested in good faith; (iii) non-monetary liens affecting real property which do not adversely affect the value or use of such real property, and (iv) those described and reflected in the CUNB SEC Documents. Somerset Bank CUNB and the Somerset Bank SubsidiariesSubsidiaries of CUNB, as lessee, have the right under valid and subsisting existing leases of real and personal properties used by Somerset Bank CUNB and its Subsidiaries CUB in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. Such existing leases and commitments to lease constitute or will constitute operating leases for both Tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in all material respects in notes to the Financial Statements of CUNB. 5.8.25.10.2 With respect to all material agreements pursuant to which CUNB or CUB has purchased securities subject to an agreement to resell, if any, CUNB or such Subsidiary of CUNB, as the case may be, has a lien or security interest (which to CUNB’s Knowledge is a valid, perfected first lien) in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. 5.10.3 CUNB currently maintains insurance with reputable insurers against such risks and in such amounts as constitute reasonably adequate coverage against all risks customarily insured against by banking institutions of comparable size and operations to CUNB. Somerset Bank and each Somerset Bank Subsidiary currently maintain insurance considered by Somerset Bank to be reasonable for their respective operations. Neither Somerset Bank nor any Somerset Bank Subsidiary Except as disclosed in CUNB Disclosure Schedule 5.10.3, CUNB has not received notice from any insurance carrier during the past three years that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs (other than with respect to health insurance) with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices of claims have been given by Somerset Bank or any Somerset Bank Subsidiary CUNB under such policies. All such insurance is valid and enforceable and in full force and effect, and within the last three years Somerset Bank and each Somerset Bank Subsidiary CUNB has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 CUNB Disclosure Schedule 5.10.3 identifies all material policies of insurance maintained by Somerset Bank CUNB as well as the other matters required to be disclosed under this 5.9.3 and each Somerset Bank Subsidiaryspecifies policy type, whether such policy is claims-made, policy numbers, applicable deductible levels, policy periods, available limits of coverage and other pertinent policy information. There are no claims for coverage by CUNB pending under any of such policies and, since January 1, 2011, no claims been questioned, denied, or disputed.

Ownership of Property; Insurance Coverage. 5.8.14.10.1. Somerset Bank A list of all real property owned or leased by VSB Bancorp or any VSB Bancorp Subsidiary is set forth in DISCLOSURE SCHEDULE 4.10.1. VSB Bancorp and each Somerset Bank VSB Bancorp Subsidiary has good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank VSB Bancorp or each Somerset Bank VSB Bancorp Subsidiary in the conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets statements of financial condition contained in the Somerset Bank most recent VSB Bancorp Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheetsstatements of financial condition), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLBFHLB of New York, inter-bank credit facilities, reverse repurchase agreements or any transaction by VSB Bancorp or a Somerset Bank VSB Bancorp Subsidiary acting in a fiduciary capacity, (ii) mechanics liens and similar liens for labor, materials, services or supplies provided for such property and incurred in the ordinary course of business for amounts not yet delinquent or that are being contested in good faith, and (iiiii) statutory liens for amounts not yet delinquent or that are being contested in good faith. Somerset Bank VSB Bancorp and the Somerset Bank VSB Bancorp Subsidiaries, as lessee, have the right under valid and subsisting existing leases of real and personal properties used by Somerset Bank VSB Bancorp and its the VSB Bancorp Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. All real property owned or leased by VSB Bancorp or any of its Subsidiaries are in a good state of maintenance and repair (normal wear and tear expected), conforms in all material respects with all applicable ordinances, regulations and zoning laws and are considered by VSB Bancorp to be adequate for the current business of VSB Bancorp and its Subsidiaries. To the knowledge of VSB Bancorp, none of the buildings, structures or other improvements located on any real property owned or leased by VSB Bancorp or any of its Subsidiaries encroaches upon or over any adjoining parcel or real estate or any easement or right-of-way. 5.8.24.10.2. Somerset Bank With respect to all material agreements pursuant to which VSB Bancorp or any VSB Bancorp Subsidiary has purchased securities subject to an agreement to resell, if any, VSB Bancorp or such VSB Bancorp Subsidiary, as the case may be, has a lien or security interest (which to the Knowledge of VSB Bancorp is a valid, perfected first lien) in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. 4.10.3. VSB Bancorp and each Somerset Bank VSB Bancorp Subsidiary currently maintain insurance considered by Somerset Bank each of them to be reasonable for their respective operations. Neither Somerset Bank VSB Bancorp nor any Somerset Bank VSB Bancorp Subsidiary has received notice from any insurance carrier that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank VSB Bancorp or any Somerset Bank VSB Bancorp Subsidiary under such policies. All such insurance is valid and enforceable and in full force and effect, and within the last three years Somerset Bank years, VSB Bancorp and each Somerset Bank VSB Bancorp Subsidiary has have received each type of insurance coverage for which it has they have applied and during such periods has have not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP VSB Bancorp DISCLOSURE SCHEDULE 5.8.2 4.10.3 identifies all policies of insurance maintained by Somerset Bank VSB Bancorp and each Somerset Bank SubsidiaryVSB Bancorp Subsidiary (including the name of the insurance company and agent, the nature of the coverage, the policy limit, the annual premiums and the expiration date) as well as the other matters required to be disclosed under this Section 4.10.3.

Ownership of Property; Insurance Coverage. 5.8.14.9.1. Somerset Bank Boardwalk Bancorp and each Somerset Bank Boardwalk Bancorp Subsidiary has good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank Boardwalk Bancorp or each Somerset Bank Boardwalk Bancorp Subsidiary in the conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Boardwalk Bancorp Regulatory Reports and in the Boardwalk Bancorp Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheets), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, and except for (i) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLB, inter-bank credit facilities, or any transaction by a Somerset Bank Boardwalk Bancorp Subsidiary acting in a fiduciary capacity, and (ii) statutory liens for amounts not yet delinquent or that which are being contested in good faith. Somerset Bank Boardwalk Bancorp and the Somerset Bank Boardwalk Bancorp Subsidiaries, as lessee, have the right under valid and subsisting existing leases of real and personal properties used by Somerset Bank Boardwalk Bancorp and its Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. Such existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in all material respects in the notes to the Boardwalk Bancorp Financial Statements. 5.8.24.9.2. Somerset Bank With respect to all material agreements pursuant to which Boardwalk Bancorp or any Boardwalk Bancorp Subsidiary has purchased securities subject to an agreement to resell, if any, Boardwalk Bancorp or such Boardwalk Bancorp Subsidiary, as the case may be, has a lien or security interest (which to Boardwalk Bancorp’s Knowledge is a valid, perfected first lien) in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. 4.9.3. Boardwalk Bancorp and each Somerset Bank Boardwalk Bancorp Subsidiary currently maintain insurance considered by Somerset Bank each of them to be reasonable for their respective operations. Neither Somerset Bank Boardwalk Bancorp nor any Somerset Bank Boardwalk Bancorp Subsidiary has received notice from any insurance carrier that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank Boardwalk Bancorp or any Somerset Bank Boardwalk Bancorp Subsidiary under such policies. All such insurance is valid and enforceable and in full force and effect, and within the last three years Somerset Bank Boardwalk Bancorp and each Somerset Bank Boardwalk Bancorp Subsidiary has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BOARDWALK BANCORP DISCLOSURE SCHEDULE 5.8.2 4.9.3 identifies all policies of insurance maintained by Somerset Bank Boardwalk Bancorp and each Somerset Bank Boardwalk Bancorp Subsidiary.

Ownership of Property; Insurance Coverage. 5.8.1. Somerset Bank and (a) Except as set forth in First Bell Bancorp Disclosure Schedule 3.09(a), First Bell Bancorp axx xhe Bell Federal Savings each Somerset Bank Subsidiary has good and, as to real tx xxal property, marketable marxxxxble title to all material assets and properties owned by Somerset Bank First Bell Bancorp or each Somerset Bank Subsidiary Bell Federal Savings in the conduct of its businessestheir busixxxx, whether such assets suxx xssets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Financial Statements First Bell Bancorp Regulatory Reports and in the First Bell Bancorp Fixxxxials or acquired subsequent thereto (except to xx the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheets), subject to no material Liensliens, mortgages, security interests or pledges, or to the Knowledge of First Bell Bancorp, adverse encumbrances, except (i) those items that whxxx secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLBFHLB of Pittsburgh, inter-bank credit facilities, or any transaction by a Somerset Bank Subsidiary Bell Federal Savings acting in a fiduciary capacity, and (ii) statutory sxxxxtory liens for amounts not yet delinquent or that which are being contested in good faith. Somerset Bank First Bell Bancorp and the Somerset Bank SubsidiariesBell Federal Savings, as lessee, have the right under uxxxx valid and subsisting suxxxxting leases of real and personal properties used by Somerset Bank First Bell Bancorp and its Subsidiaries Bell Federal Savings in the conduct of their businesses busxxxxs to occupy or use ox xxe all such properties as presently occupied and used by each of them. Such existing leases and commitments to lease constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in the notes to the First Bell Bancorp Financials. 5.8.2. Somerset Bank (b) With respect to all agreemexxx pursuant to which First Bell Bancorp or Bell Federal Savings has purchased securities xxxject to an axxxxment to resell, if any, First Bell Bancorp or Bell Federal Savings has a lien or security ixxxxest (which to Xxxxt Bell Bancorp's Knowledge is a valid, perfected first lien) in the xxcurities or other collateral securing the repurchase agreement, and each Somerset Bank Subsidiary the value of such collateral equals or exceeds the amount of the debt secured thereby. (c) First Bell Bancorp and Bell Federal Savings currently maintain insurance insuxxxxe considered by Somerset Bank bx Xxrst Bell Bancorp to be reasonable for their respective operations. Neither Somerset Bank nor any Somerset Bank Subsidiary Fixxx Bell Bancorp has not received notice from any insurance carrier carrxxx that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank or any Somerset Bank Subsidiary First Bell Bancorp under such policies. All such insurance is valid and valix xxd enforceable and in full force and effect, and within the last three (3) years Somerset Bank and each Somerset Bank Subsidiary First Bell Bancorp has received each type of insurance coverage for which it whicx xx has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 identifies all policies of insurance maintained by Somerset Bank and each Somerset Bank Subsidiary.First Bell Bancorp Disclosure Schedule 3.09

Ownership of Property; Insurance Coverage. 5.8.14.10.1. Somerset Bank FCB and each Somerset Bank FCB Subsidiary has good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank FCB or each Somerset Bank FCB Subsidiary in the conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets sheet contained in the Somerset Bank most recent FCB Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheetssheet), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLB, inter-bank credit facilities, reverse repurchase agreements or any transaction by a Somerset Bank FCB Subsidiary acting in a fiduciary capacity, and (ii) statutory liens for amounts not yet delinquent or that which are being contested in good faith. Somerset Bank FCB and the Somerset Bank FCB Subsidiaries, as lessee, have the right under valid and subsisting existing leases of real and personal properties used by Somerset Bank FCB and its the FCB Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. Such existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in all material respects in the notes to the FCB Financial Statements. 5.8.24.10.2. Somerset Bank With respect to all material agreements pursuant to which FCB or any FCB Subsidiary has purchased securities subject to an agreement to resell, if any, FCB or such FCB Subsidiary, as the case may be, has a lien or security interest (which to FCB's Knowledge is a valid, perfected first lien) in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. 4.10.3. FCB, First Community Bank, and each Somerset Bank other Subsidiary of FCB currently maintain insurance considered by Somerset Bank each of them to be reasonable for their respective operations. Neither Somerset Bank FCB, First Community Bank, nor any Somerset Bank other Subsidiary of FCB, has received notice from any insurance carrier on or before the date hereof that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank FCB, First Community Bank, or any Somerset Bank other Subsidiary of FCB under such policies. All such insurance is valid and enforceable and in full force and effecteffect (other than insurance that expires in accordance with its terms), and within the last three years Somerset Bank FCB, First Community Bank, and each Somerset Bank other Subsidiary of FCB has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP FCB DISCLOSURE SCHEDULE 5.8.2 4.10.3 identifies all policies of insurance maintained by Somerset Bank FCB, First Community Bank, and each Somerset Bank SubsidiarySubsidiary of FCB as well as the other matters required to be disclosed under this Section 4.10.3.

Ownership of Property; Insurance Coverage. 5.8.14.10.1. Somerset Bank PennFed and each Somerset Bank PennFed Subsidiary has good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank PennFed or each Somerset Bank PennFed Subsidiary in the conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank PennFed Regulatory Reports and in the PennFed Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheets), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLB, inter-bank credit facilities, or any transaction by a Somerset Bank PennFed Subsidiary acting in a fiduciary capacity, (ii) those reflected in the notes to the PennFed Financial Statements, and (iiiii) statutory liens for amounts not yet delinquent or that which are being contested in good faith. Somerset Bank PennFed and the Somerset Bank PennFed Subsidiaries, as lessee, have the right under valid and subsisting existing leases of real and personal properties used by Somerset Bank PennFed and its Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. Such existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in all material respects in the notes to the PennFed Financial Statements. 5.8.24.10.2. Somerset Bank With respect to all agreements pursuant to which PennFed or any PennFed Subsidiary has purchased securities subject to an agreement to resell, if any, PennFed or such PennFed Subsidiary, as the case may be, has a lien or security interest (which to PennFed’s Knowledge is a valid, perfected first lien) in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. 4.10.3. PennFed and each Somerset Bank PennFed Subsidiary currently maintain insurance considered by Somerset Bank each of them to be reasonable for their respective operations. Neither Somerset Bank PennFed nor any Somerset Bank PennFed Subsidiary has received notice from any current insurance carrier that that: (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, ; or (ii) premium costs with respect to such policies of insurance will be substantially increased. There Except as disclosed in PENNFED DISCLOSURE SCHEDULE 4.10.3, there are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank PennFed or any Somerset Bank PennFed Subsidiary under such policies. All such insurance is valid and enforceable and in full force and effect, and within the last three years Somerset Bank PennFed and each Somerset Bank PennFed Subsidiary has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP PENNFED DISCLOSURE SCHEDULE 5.8.2 4.10.3 identifies all material policies of insurance maintained by Somerset Bank PennFed and each Somerset Bank SubsidiaryPennFed Subsidiary (other than those providing for employee or director welfare or similar benefits) as well as the other matters required to be disclosed under this Section.

Ownership of Property; Insurance Coverage. 5.8.1. Somerset Bank (a) Peoples and each Somerset Bank Subsidiary has the Peoples Subsidiaries have, or will have as to property acquired after the date hereof, good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank Peoples or each Somerset Bank any Peoples Subsidiary in the conduct of its their businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Financial Statements Peoples Regulatory Reports and in the Peoples Financials or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of for fair value, in the ordinary course of business, since the date of such balance sheets), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that which secure repurchase agreements and liabilities for public or statutory obligations or any discount withborrowed money from a Federal Home Loan Bank, borrowing from or other obligations to the FHLB, inter-bank credit facilities, or any transaction by a Somerset Bank Subsidiary acting in a fiduciary capacity, and (ii) statutory liens for amounts not yet delinquent or that which are being contested in good faithfaith and (iii) items permitted under Article IV. Somerset Bank Peoples and the Somerset Bank Peoples Subsidiaries, as lessee, have the right under valid and subsisting leases of real and personal properties used by Somerset Bank Peoples and its Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. Such existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in the Notes to the Peoples Financials. 5.8.2. Somerset Bank (b) With respect to all agreements pursuant to which Peoples or any Peoples Subsidiary has purchased securities subject to an agreement to resell, if any, Peoples or such Peoples Subsidiary, as the case may be, has a valid, perfected first lien or security interest in the securities or other collateral securing the repurchase agreement, and each Somerset Bank Subsidiary the value of such collateral equals or exceeds the amount of the debt secured thereby. (c) Peoples and the Peoples Subsidiaries currently maintain insurance considered by Somerset Bank Peoples to be reasonable for their respective operationsoperations and similar in scope and coverage to that maintained by other businesses similarly engaged. Neither Somerset Bank Peoples nor any Somerset Bank Peoples Subsidiary has received notice from any insurance carrier that (i) such insurance will be canceled cancelled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank Peoples or any Somerset Bank Subsidiary Trenton Savings under such policies. All such insurance is valid and enforceable and in full force and effect, and within the last three years Somerset Bank Peoples and each Somerset Bank Subsidiary has Trenton Savings have received each type of insurance coverage for which it has they have applied and during such periods has have not been denied indemnification for any material claims submitted under any of its their insurance policies. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 identifies all policies of insurance maintained by Somerset Bank and each Somerset Bank Subsidiary.

Ownership of Property; Insurance Coverage. 5.8.1. Somerset Bank (a) BCB and each Somerset Bank Subsidiary has the BCB Subsidiaries have good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank BCB or each Somerset Bank Subsidiary any of its Subsidiaries in the conduct of its their businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Financial Statements BCB Regulatory Reports and in the BCB Financials or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of for fair value, in the ordinary course of business, since the date of such balance sheets), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that secure repurchase agreements and liabilities for public or statutory obligations or any discount withborrowed money, borrowing from or other obligations to the FHLB, inter-bank credit facilities, or any transaction by a Somerset Bank Subsidiary acting in a fiduciary capacity, and (ii) statutory liens for amounts not yet delinquent or that which are being contested in good faith, and (iii) items permitted under Article IV. Somerset Bank BCB and the Somerset Bank BCB Subsidiaries, as lessee, have the right under valid and subsisting leases of real and personal properties used by Somerset Bank BCB and its Subsidiaries in the conduct of their businesses to occupy or and use all such properties as presently occupied and used by each of them. Except as set forth in the BCB Disclosure Schedule, such existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in the notes to the BCB Financials. 5.8.2. Somerset Bank (b) With respect to all agreements pursuant to which BCB or any BCB Subsidiary has purchased securities subject to an agreement to resell, if any, BCB or such BCB Subsidiary, as the case may be, has a valid, perfected first lien or security interest in the securities or other collateral securing the repurchase agreement, and each Somerset Bank Subsidiary the value of such collateral equals or exceeds the amount of the debt secured thereby. (c) BCB and the BCB Subsidiaries currently maintain insurance in amounts considered by Somerset Bank BCB to be reasonable for their respective operations, and such insurance is similar in scope and coverage to that maintained by other businesses similarly engaged. Neither Somerset Bank BCB nor any Somerset Bank BCB Subsidiary has received notice from any insurance carrier that (i) such insurance will be canceled cancelled or that coverage thereunder will be reduced or eliminated, eliminated or (ii) premium costs with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Somerset BCB or Berks County Bank or any Somerset Bank Subsidiary under such policies. All such insurance is valid and enforceable and in full force and effect, and within the last three years Somerset Bank and each Somerset Bank Subsidiary BCB has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 identifies all policies of insurance maintained by Somerset Bank and each Somerset Bank Subsidiary.

Ownership of Property; Insurance Coverage. 5.8.1. Somerset Bank (a) FC Bancorp and each Somerset Bank Subsidiary has of the FC Bancorp Subsidiaries has, or will have as to property acquired after the date hereof, good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank FC Bancorp or each Somerset Bank any FC Bancorp Subsidiary in the conduct of its businessestheir businesses (“Owned Properties”), whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Financial Statements FC Bancorp Regulatory Reports and in the FC Bancorp Financials or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of for fair value, in the ordinary course of business, since the date of such balance sheets), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that which secure repurchase agreements and liabilities for public or statutory obligations or any discount withborrowed money from a Federal Home Loan Bank, borrowing from or other obligations to the FHLB, (ii) inter-bank credit facilities, or any transaction by a Somerset Bank FC Bancorp Subsidiary acting in a fiduciary capacity, and (iiiii) those reflected in the notes to the FC Bancorp Financials, (iv) statutory liens for amounts not yet delinquent or that which are being contested in good faith, and (v) the items disclosed in FC Bancorp Disclosure Schedule 2.11 (collectively the “FC Bancorp Permitted Encumbrances”). Somerset Bank FC Bancorp and the Somerset Bank FC Bancorp Subsidiaries, as lessee, have the right under valid and subsisting leases of real and personal properties used by Somerset Bank FC Bancorp and its Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. Except as disclosed in Section FC Bancorp Disclosure Schedule 2.11, such existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in the notes to the FC Bancorp Financials. 5.8.2(b) With respect to all agreements pursuant to which FC Bancorp or any FC Bancorp Subsidiary has purchased securities subject to an agreement to resell, if any, FC Bancorp or such FC Bancorp Subsidiary, as the case may be, has a valid, perfected first lien or security interest in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. (c) A true and complete copy of each agreement pursuant to which FC Bancorp or any of the FC Bancorp Subsidiaries leases any real property (such agreements, together with any amendments, modifications and other supplements thereto, collectively, the “Leases”), has heretofore been delivered to ACNB. Somerset Bank Assuming due authorization, execution and delivery by each Somerset Bank Party thereto other than FC Bancorp or an FC Bancorp Subsidiary party thereto, as the case may be, each Lease is enforceable in accordance with its terms and is in full force and effect, except as may be limited by bankruptcy, insolvency, moratorium, reorganization or similar laws affecting the rights of creditors generally and the availability of equitable remedies. There is not under any such Lease any material existing default by FC Bancorp or any of the FC Bancorp Subsidiaries or, to the Knowledge of FC Bancorp, any party thereto, or any event which with notice of lapse of time or both would constitute such a default. The consummation of the transactions this Agreement contemplates will not cause any default under the Leases, provided the consents and notices disclosed in FC Bancorp Disclosure Schedule 2.04 have been obtained or made, except for any such default which would not, individually or in the aggregate, have a Material Adverse Effect on FC Bancorp. (d) The Owned Properties and the properties leased pursuant to the Leases (the “Leased Properties”) constitute all of the real estate on which FC Bancorp and the FC Bancorp Subsidiaries maintain their facilities or conduct their business as of the date of this Agreement, except for locations the loss of which would not result in a Material Adverse Effect on FC Bancorp. (e) A true and complete copy of each agreement pursuant to which FC Bancorp or any of the FC Bancorp Subsidiaries leases real property to a third party (such agreements, together with any amendments, modifications and other supplements thereto, collectively, the “Third Party Leases”) has heretofore been delivered to ACNB. Assuming the due authorization, execution and delivery by the counterparty thereto, each Third Party Lease is valid, binding and enforceable in accordance with its terms and is in full force and effect, except as may be limited by bankruptcy, insolvency, moratorium, reorganization or similar laws affecting the rights of creditors generally and the availability of equitable remedies. To the Knowledge of FC Bancorp, there are no existing defaults by the tenant under any Third Party Lease, and no event has occurred which with notice or lapse of time or both would constitute such a default or which individually or in the aggregate would have a Material Adverse Effect on FC Bancorp. (f) FC Bancorp and the FC Bancorp Subsidiaries currently maintain insurance considered by Somerset Bank FC Bancorp to be reasonable for their respective operationsoperations and similar in scope and coverage to that maintained by other businesses similarly engaged. Neither Somerset Bank FC Bancorp nor any Somerset Bank FC Bancorp Subsidiary has received notice from any insurance carrier that (i) such insurance will be canceled cancelled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank FC Bancorp or any Somerset Bank FC Bancorp Subsidiary under such policies. All such insurance is valid and enforceable and in full force and effect, and within the last three five (5) years Somerset Bank and each Somerset Bank Subsidiary FC Bancorp has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 identifies all policies of insurance maintained by Somerset Bank and each Somerset Bank Subsidiary.

Ownership of Property; Insurance Coverage. 5.8.1. Somerset (a) Except as set forth in Prestige Bancorp Disclosure Schedule 3.09(a), Prestige Bancorp and the Prestige Bank and each Somerset Bank Subsidiary has good and, as to real property, marketable title to all material assets and properties owned by Somerset Prestige Bancorp or Prestige Bank or each Somerset Bank Subsidiary in the conduct of its businessestheir business, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Financial Statements Prestige Bancorp Regulatory Reports and in the Prestige Bancorp Financials or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheets), subject to no material Liensliens, mortgages, security interests or pledges, or to the Knowledge of Prestige Bancorp, material and adverse encumbrances, except (i) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLBFHLB of Pittsburgh, inter-bank credit facilities, or any transaction by a Somerset Prestige Bank Subsidiary acting in a fiduciary capacity, and (ii) statutory liens for amounts not yet delinquent or that which are being contested in good faith. Somerset Bank Prestige Bancorp and the Somerset Bank SubsidiariesPrestige Bank, as lessee, have the right under valid and subsisting leases of real and personal properties used by Somerset Prestige Bancorp and Prestige Bank and its Subsidiaries in the conduct of their businesses business to occupy or use all such properties as presently occupied and used by each of them. Such existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in the notes to the Prestige Bancorp Financials. 5.8.2. Somerset (b) With respect to all material agreements pursuant to which Prestige Bancorp or Prestige Bank has purchased securities subject to an agreement to resell, if any, Prestige Bancorp or Prestige Bank has a lien or security interest (which to Prestige Bancorp's Knowledge is a valid, perfected first lien) in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. (c) Prestige Bancorp and Prestige Bank each Somerset Bank Subsidiary currently maintain maintains insurance considered by Somerset Bank Prestige Bancorp to be reasonable for their respective operations. Neither Somerset Bank nor any Somerset Bank Subsidiary Prestige Bancorp has not received notice from any insurance carrier that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs with respect to such policies of insurance will be substantially increased. There Except as set forth in Prestige Bancorp Disclosure Schedule 3.09(c), there are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank or any Somerset Bank Subsidiary Prestige Bancorp under such policies. All such insurance is valid and enforceable and in full force and effect, and within the last three (3) years Somerset Bank and each Somerset Bank Subsidiary Prestige Bancorp has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 Prestige Bancorp Disclosure Schedule 3.09(c) identifies all policies of insurance maintained by Somerset Bank Prestige Bancorp and each Somerset Bank SubsidiaryPrestige Bank.

Ownership of Property; Insurance Coverage. 5.8.14.10.1. Somerset Bank Synergy and each Somerset Bank Synergy Subsidiary has good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank Synergy or each Somerset Bank Synergy Subsidiary in the conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Synergy Regulatory Reports and in the Synergy Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheets), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLB, inter-bank credit facilities, or any transaction by a Somerset Bank Synergy Subsidiary acting in a fiduciary capacity, (ii) those reflected in the notes to the Synergy Financial Statements, and (iiiii) statutory liens for amounts not yet delinquent or that which are being contested in good faith. Somerset Bank Synergy and the Somerset Bank Synergy Subsidiaries, as lessee, have the right under valid and subsisting existing leases of real and personal properties used by Somerset Bank Synergy and its Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. Such existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in all material respects in the notes to the Synergy Financial Statements. 5.8.24.10.2. Somerset Bank With respect to all agreements pursuant to which Synergy or any Synergy Subsidiary has purchased securities subject to an agreement to resell, if any, Synergy or such Synergy Subsidiary, as the case may be, has a lien or security interest (which to Synergy's Knowledge is a valid, perfected first lien) in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. 4.10.3. Synergy and each Somerset Bank Synergy Subsidiary currently maintain insurance considered by Somerset Bank each of them to be reasonable for their respective operations. Neither Somerset Bank Synergy nor any Somerset Bank Synergy Subsidiary has received notice from any current insurance carrier that that: (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, ; or (ii) premium costs with respect to such policies of insurance will be substantially increased. There Except as disclosed in SYNERGY DISCLOSURE SCHEDULE 4.10.3, there are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank Synergy or any Somerset Bank Synergy Subsidiary under such policies. All such insurance is valid and enforceable and in full force and effect, and within Within the last three years Somerset Bank Synergy and each Somerset Bank Synergy Subsidiary has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP SYNERGY DISCLOSURE SCHEDULE 5.8.2 4.10.3 identifies all material policies of insurance maintained by Somerset Bank Synergy and each Somerset Bank SubsidiarySynergy Subsidiary (other than those providing for employee or director welfare or similar benefits) as well as the other matters required to be disclosed under this Section.

Ownership of Property; Insurance Coverage. 5.8.1. Somerset Bank 5.9.1 Middlefield Banc Corp. and each Somerset Bank Middlefield Subsidiary has good and, as to regarding real property, marketable title to all material assets and properties owned used by Somerset Bank Middlefield Banc Corp. or each Somerset Bank the Middlefield Subsidiary in the conduct of its businesses, whether such the assets and properties are real or personal, tangible or intangible, including assets and property reflected in the most recent consolidated balance sheets contained sheet in the Somerset Bank Middlefield Financial Statements or acquired subsequent thereto thereafter (except to the extent that such excepting assets and properties have been disposed of in the ordinary course of business, business since the date of such the balance sheetssheet), subject to no material Liensencumbrances, liens, mortgages, security interests, or pledges, except (i1) those items that secure securing liabilities for public or statutory obligations or any discount with, borrowing from from, or other obligations to the FHLB, inter-bank credit facilities, reverse repurchase agreements, or any transaction by a Somerset Bank Middlefield Subsidiary acting in a fiduciary capacity, and (ii2) statutory liens for amounts not yet delinquent or that are being contested in good faith. Somerset Bank Middlefield Banc Corp. and the Somerset Bank Middlefield Subsidiaries, as lessee, have the right under valid and subsisting existing leases of real and personal properties used by Somerset Bank Middlefield Banc Corp. and its the Middlefield Subsidiaries in the conduct of their businesses business to occupy or use all such properties as presently occupied and used by each of them. Existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments for the leases and lease commitments are as disclosed in all material respects in the notes to the Middlefield Financial Statements. 5.8.2. Somerset Bank and each Somerset Bank Subsidiary currently maintain insurance considered by Somerset Bank to be reasonable for their respective operations. Neither Somerset Bank nor any Somerset Bank 5.9.2 For all material agreements under which Middlefield Banc Corp. or a Middlefield Subsidiary has received notice from any insurance carrier that purchased securities subject to an agreement to resell, if any, Middlefield Banc Corp. or the Middlefield Subsidiary has a lien or security interest (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs with respect which to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank or any Somerset Bank Subsidiary under such policies. All such insurance Middlefield Banc Corp.’s Knowledge is a valid and enforceable and perfected first lien) in full force and effectthe securities or other collateral securing the repurchase agreement, and within the last three years Somerset Bank and each Somerset Bank Subsidiary has received each type value of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any collateral equals or exceeds the amount of its insurance policies. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 identifies all policies of insurance maintained by Somerset Bank and each Somerset Bank Subsidiarythe debt secured thereby.

Ownership of Property; Insurance Coverage. 5.8.1. Somerset Bank Bridge Bancorp and each Somerset Bank Bridge Bancorp Subsidiary has good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank Bridge Bancorp or each Somerset Bank Bridge Bancorp Subsidiary in the conduct of its their businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Bridge Bancorp Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheets), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLB, inter-bank credit facilities, or any transaction by a Somerset Bank Bridge Bancorp Subsidiary acting in a fiduciary capacity, and (ii) statutory liens for amounts not yet delinquent or that which are being contested in good faith, (iii) non-monetary liens affecting real property which do not adversely affect the value or use of such real property, and (iv) those described and reflected in the Bridge Bancorp Financial Statements. Somerset Bank Bridge Bancorp and the Somerset Bank Bridge Bancorp Subsidiaries, as lessee, have the right under valid and subsisting leases of real and personal properties used by Somerset Bank Bridge Bancorp and its Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. 5.8.2. Somerset Bank Bridge Bancorp and each Somerset Bank Bridge Bancorp Subsidiary currently maintain insurance considered by Somerset Bank each of them to be reasonable for their respective operations. Neither Somerset Bank Bridge Bancorp nor any Somerset Bank Bridge Bancorp Subsidiary has received notice from any insurance carrier during the past 3 years that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs (other than with respect to health or disability insurance) with respect to such policies of insurance will be substantially materially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank Bridge Bancorp or any Somerset Bank Bridge Bancorp Subsidiary under such policiespolicies (other than with respect to health or disability insurance). All such insurance is valid and enforceable and in full force and effect, and within the last three years Somerset Bank Bridge Bancorp and each Somerset Bank Bridge Bancorp Subsidiary has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP DISCLOSURE SCHEDULE Bridge Bancorp Disclosure Schedule 5.8.2 identifies all material policies of insurance maintained by Somerset Bank Bridge Bancorp and each Somerset Bank SubsidiaryBridge Bancorp Subsidiary as well as the other matters required to be disclosed under this Section.

Ownership of Property; Insurance Coverage. 5.8.14.9.1. Somerset Bank CLFC and each Somerset Bank CLFC Subsidiary has good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank CLFC or each Somerset Bank CLFC Subsidiary in the conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank CLFC Regulatory Reports and in the CLFC Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheets), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, and except for (i) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLB, inter-bank credit facilities, or any transaction by a Somerset Bank CLFC Subsidiary acting in a fiduciary capacity, and (ii) statutory liens for amounts not yet delinquent or that which are being contested in good faith. Somerset Bank CLFC and the Somerset Bank CLFC Subsidiaries, as lessee, have the right under valid and subsisting existing leases of real and personal properties used by Somerset Bank CLFC and its Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. Such existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in all material respects in the notes to the CLFC Financial Statements. 5.8.24.9.2. Somerset Bank With respect to all material agreements pursuant to which CLFC or any CLFC Subsidiary has purchased securities subject to an agreement to resell, if any, CLFC or such CLFC Subsidiary, as the case may be, has a lien or security interest (which to CLFC's Knowledge is a valid, perfected first lien) in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. 4.9.3. CLFC and each Somerset Bank CLFC Subsidiary currently maintain insurance considered by Somerset Bank each of them to be reasonable for their respective operations. Neither Somerset Bank CLFC nor any Somerset Bank CLFC Subsidiary has received notice from any insurance carrier that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank CLFC or any Somerset Bank CLFC Subsidiary under such policies. All such insurance is valid and enforceable and in full force and effect, and within the last three years Somerset Bank CLFC and each Somerset Bank CLFC Subsidiary has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP CLFC DISCLOSURE SCHEDULE 5.8.2 4.9.3 identifies all policies of insurance maintained by Somerset Bank CLFC and each Somerset Bank CLFC Subsidiary.

Ownership of Property; Insurance Coverage. 5.8.14.9.1. Somerset Bank DCB and each Somerset Bank DCB Subsidiary has good and, as to real property, marketable title title, to all material assets and properties owned by Somerset Bank DCB or each Somerset Bank any DCB Subsidiary in the conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank DCB Regulatory Reports and in the DCB Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheets), subject to no material Liens, except (i) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLB, inter-bank credit facilities, or any transaction by a Somerset Bank Subsidiary DCB acting in a fiduciary capacity, and (ii) statutory liens Liens for amounts not yet delinquent or that which are being contested in good faith, (iii) non-monetary Liens affecting real property which do not adversely affect the value or use of such real property, and (iv) those described and reflected in the DCB Financial Statements. Somerset Bank DCB and the Somerset Bank Subsidiarieseach DCB Subsidiary, as lessee, have has the right under valid and subsisting existing leases of real and personal properties used by Somerset Bank and its Subsidiaries DCB or such DCB Subsidiary in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. 5.8.24.9.2. Somerset Bank With respect to all material agreements pursuant to which DCB or any DCB Subsidiary has purchased securities subject to an agreement to resell, if any, DCB or any DCB Subsidiary has a Lien (which to DCB’s Knowledge is a valid, perfected first lien) in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. 4.9.3. DCB and each Somerset Bank DCB Subsidiary currently maintain insurance considered by Somerset Bank are insured with reputable insurers against such risks and in such amounts that management of DCB reasonably determined to be reasonable for prudent, sufficient and consistent with industry practice, and DCB and each DCB Subsidiary are in compliance in all material respects with their respective operationsinsurance policies. Neither Somerset Bank DCB nor any Somerset Bank DCB Subsidiary has received notice from any insurance carrier during the past two (2) years that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs (other than with respect to health or disability insurance) with respect to such policies of insurance will be substantially materially increased. There Except as disclosed in DCB Disclosure Schedule 4.9.3, there are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank DCB or any Somerset Bank DCB Subsidiary under such policiespolicies (other than with respect to health or disability insurance). All such insurance is valid and enforceable and in full force and effect, and within the last three years Somerset Bank DCB and each Somerset Bank DCB Subsidiary has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 DCB Disclosure Schedule 4.9.3 identifies all material policies of insurance maintained by Somerset Bank DCB and each Somerset Bank Subsidiarythe DCB Subsidiaries as of the date of this Agreement.

Ownership of Property; Insurance Coverage. 5.8.1. Somerset Bank Parent and each Somerset Bank Parent Subsidiary has good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank Parent or each Somerset Bank Parent Subsidiary in the conduct of its their businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Parent Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheets), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (ia) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLB, inter-bank credit facilities, or any transaction by a Somerset Bank Parent Subsidiary acting in a fiduciary capacity, and (iib) statutory liens for amounts not yet delinquent or that which are being contested in good faith, (c) non-monetary liens affecting real property which do not adversely affect the value or use of such real property, and (d) those described and reflected in the Parent Financial Statements. Somerset Bank Parent and the Somerset Bank Parent Subsidiaries, as lessee, have the right under valid and subsisting enforceable leases of real and personal properties used by Somerset Bank Parent and its Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. Neither Parent nor any Parent Subsidiary is in default under any lease for any real or personal property to which either Parent or any Parent Subsidiary is a party, and there has not occurred any event that, with lapse of time or the giving of notice or both, would constitute such a default. 5.8.2. Somerset Bank Parent and each Somerset Bank Parent Subsidiary currently maintain insurance considered by Somerset Bank each of them to be reasonable for their respective operations. Neither Somerset Bank nor any Somerset Bank Subsidiary has received notice from any Parent and all Parent Subsidiaries maintain such fidelity bonds and errors and omissions insurance carrier that (i) such insurance will as may be canceled customary or that coverage thereunder will be reduced required under applicable laws or eliminated, or (ii) premium costs with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank or any Somerset Bank Subsidiary under such policiesregulations. All such insurance is valid and enforceable and in full force and effect, and within the last three years Somerset Bank Parent and each Somerset Bank Parent Subsidiary has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. 5.8.3. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 identifies All real property owned by Parent or a Parent Subsidiary is in material compliance with all policies applicable zoning laws and building codes, and the buildings and improvements located on such real property are in good operating condition and in a state of insurance maintained by Somerset Bank good working order, ordinary wear and each Somerset Bank Subsidiarytear and casualty excepted. There are no pending or, to the Knowledge of Parent, threatened condemnation proceedings against such real property. Parent and the applicable Parent Subsidiaries are in material compliance with all applicable health and safety related requirements for the owned real property, including those under the Americans with Disabilities Act of 1990 and the Occupational Safety and Health Act of 1970.

Ownership of Property; Insurance Coverage. 5.8.14.10.1. Somerset Except as set forth in Trinity Bank DISCLOSURE SCHEDULE 4.10.1, Trinity Bank and each Somerset Trinity Bank Subsidiary has good and, as to real property, marketable title to all material assets and properties owned by Somerset Trinity Bank or each Somerset Trinity Bank Subsidiary in the conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets sheet contained in the Somerset most recent Trinity Bank Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheetssheet), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLB, any inter-bank credit facilities, any reverse repurchase agreements or any transaction by a Somerset Trinity Bank Subsidiary acting in a fiduciary capacity, and (ii) statutory liens for amounts not yet delinquent or that which are being contested in good faith. Somerset Trinity Bank and the Somerset Trinity Bank Subsidiaries, as lessee, have the right under valid and subsisting existing leases of real and personal properties used by Somerset Trinity Bank and its the Trinity Bank Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. Such existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in all material respects in the notes to the Trinity Bank Financial Statements. 5.8.24.10.2. Somerset With respect to all material agreements pursuant to which Trinity Bank or any Trinity Bank Subsidiary has purchased securities subject to an agreement to resell, if any, Trinity Bank or such Trinity Bank Subsidiary, as the case may be, has a lien or security interest (which to Trinity Bank's Knowledge is a valid, perfected first lien) in the securities or other collateral securing the repurchase agreement, and, to Trinity Bank's Knowledge, the value of such collateral equals or exceeds the amount of the debt secured thereby. 4.10.3. Trinity Bank and each Somerset other Subsidiary of Trinity Bank Subsidiary currently maintain insurance considered by Somerset Bank each of them to be reasonable for their respective operations. Neither Somerset Trinity Bank nor any Somerset Bank other Subsidiary of Trinity Bank, has received notice from any insurance carrier on or before the date hereof that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices of any claims under such policies have been given by Somerset Trinity Bank or any Somerset other Subsidiary of Trinity Bank Subsidiary under such policies. All To the Knowledge of Trinity Bank, all such insurance is valid and enforceable and in full force and effecteffect (other than insurance that expires in accordance with its terms), and within the last three years Somerset Trinity Bank and each Somerset other Subsidiary of Trinity Bank Subsidiary has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP Trinity Bank DISCLOSURE SCHEDULE 5.8.2 4.10.3 identifies all policies of insurance maintained by Somerset Bank and each Somerset Bank SubsidiaryTrinity Bank.

Ownership of Property; Insurance Coverage. 5.8.14.9.1. Somerset Bank RBPI and each Somerset Bank RBPI Subsidiary has good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank RBPI or each Somerset Bank RBPI Subsidiary in the conduct of its their businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank RBPI Regulatory Reports and in the RBPI Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course Ordinary Course of businessBusiness, since the date of such balance sheets), subject to no material Liens, except (ia) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLB, inter-bank credit facilities, or any transaction by a Somerset Bank RBPI Subsidiary acting in a fiduciary capacity, and (iib) statutory liens Liens for amounts not yet delinquent or that which are being contested in good faith, (c) non-monetary Liens affecting real property which do not adversely affect the value or use of such real property, and (d) those described and reflected in the RBPI Financial Statements. Somerset Bank RBPI and the Somerset Bank RBPI Subsidiaries, as lessee, have the right under valid and subsisting enforceable leases of real and personal properties used by Somerset Bank RBPI and its Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. Neither RBPI nor any RBPI Subsidiary is in default under any lease for any real or personal property to which either RBPI or any RBPI Subsidiary is a party, and there has not occurred any event that, with lapse of time or the giving of notice or both, would constitute such a default. RBPI is not a party to any agreement pursuant to which it has securitized any of its assets. 5.8.24.9.2. Somerset Bank With respect to all agreements pursuant to which RBPI or any RBPI Subsidiary has purchased securities subject to an agreement to resell, if any, RBPI or such RBPI Subsidiary, as the case may be, has a valid, perfected, first priority Lien in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. 4.9.3. RBPI and each Somerset Bank RBPI Subsidiary currently maintain insurance considered by Somerset Bank each of them to be reasonable for their respective operations. Neither Somerset Bank RBPI nor any Somerset Bank Subsidiary RBPI Subsidiary, except as disclosed in RBPI Disclosure Schedule 4.9.3, has received notice from any insurance carrier during the past five years that (ia) such insurance will be canceled cancelled or that coverage thereunder will be reduced or eliminated, or (iib) premium costs (other than with respect to health or disability insurance) with respect to such policies of insurance will be substantially increased. There Except as set forth on RBPI Disclosure Schedule 4.9.3, there are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank RBPI or any Somerset Bank RBPI Subsidiary under such policiespolicies (other than with respect to health or disability insurance). RBPI and all RBPI Subsidiaries maintain such fidelity bonds and errors and omissions insurance as may be customary or required under applicable Law. All such insurance is valid and enforceable and in full force and effect, and within the last three years Somerset Bank RBPI and each Somerset Bank RBPI Subsidiary has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 RBPI Disclosure Schedule 4.9.3 identifies all policies of insurance maintained by Somerset Bank RBPI and each Somerset Bank SubsidiaryRBPI Subsidiary as well as the other matters required to be disclosed under this Section. 4.9.4. All real property owned by RBPI or a RBPI Subsidiary is in material compliance with all applicable zoning laws and building codes, and the buildings and improvements located on such real property are in good operating condition and in a state of good working order, ordinary wear and tear and casualty excepted. There are no pending or, to the Knowledge of RBPI, threatened condemnation proceedings against such real property. RBPI and the applicable RBPI Subsidiaries are in material compliance with all applicable health and safety related requirements for the owned real property, including those under the Americans with Disabilities Act of 1990 and the Occupational Safety and Health Act of 1970. Insurance is currently maintained on all property, including all owned real property, in amounts, scope and coverage reasonably necessary for its operations. Neither RBPI nor any RBPI Subsidiary has received any written notice of termination, nonrenewal or premium adjustment for such policies.

Ownership of Property; Insurance Coverage. 5.8.1. Somerset Bank (a) Flatbush Federal Bancorp and each Somerset Bank Flatbush Subsidiary has good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank it or each Somerset Bank Flatbush Subsidiary in the conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Financial Statements Flatbush Financials or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheets), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLB, inter-bank credit facilities, or any transaction by a Somerset Bank Flatbush Subsidiary acting in a fiduciary capacity, and (ii) statutory liens for amounts not yet delinquent or that are being contested in good faith, (iii) non-monetary liens affecting real property that do not adversely affect the value or use of such real property, and (iv) those described and reflected in the Flatbush Financials. Somerset Bank Flatbush Federal Bancorp and the Somerset Bank Flatbush Federal Bancorp Subsidiaries, as lessee, have the right under valid and subsisting existing leases of real and personal properties used by Somerset Bank Flatbush Federal Bancorp and its Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. 5.8.2. Somerset Bank (b) With respect to all material agreements pursuant to which Flatbush Federal Bancorp or any Flatbush Subsidiary has purchased securities subject to an agreement to resell, if any, Flatbush Federal Bancorp or such Flatbush Subsidiary, as the case may be, has a lien or security interest (which to Flatbush Federal Bancorp’s Knowledge is a valid, perfected first lien) in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. (c) Flatbush Federal Bancorp and each Somerset Bank Flatbush Subsidiary currently maintain insurance considered by Somerset Bank each of them to be reasonable for their respective operations. Neither Somerset Bank Except as Previously Disclosed, neither Flatbush Federal Bancorp nor any Somerset Bank Subsidiary Flatbush Subsidiary, has received notice from any insurance carrier since December 31, 2009 that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs (other than with respect to health or disability insurance) with respect to such policies of insurance will be substantially increased. There Except as Previously Disclosed, there are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank Flatbush Federal Bancorp or any Somerset Bank Flatbush Subsidiary under such policiespolicies (other than with respect to health or disability insurance). All such insurance is valid and enforceable and in full force and effect, and within the last three years Somerset Bank since December 31, 2009, Flatbush Federal Bancorp and each Somerset Bank Flatbush Subsidiary has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 identifies all policies of insurance maintained by Somerset Bank and each Somerset Bank Subsidiary.

Ownership of Property; Insurance Coverage. 5.8.1. Somerset Bank and each Somerset Bank Subsidiary (a) Scottdale has good and, as to real propertyproperty and securities, marketable title to all material assets and properties owned owned, and as to securities held, by Somerset Bank or each Somerset Bank Subsidiary Scottdale in the conduct of its their businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Scottdale Regulatory Reports and in the Scottdale Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of for fair value in the ordinary course of business, business since the date of such balance sheets), subject to no material Liens, except (i) those items that which secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLB, inter-bank credit facilities, or any transaction by a Somerset Bank Subsidiary acting in a fiduciary capacity, and (ii) statutory liens Liens for amounts not yet delinquent or that are being contested in good faith, (iii) non-monetary Liens affecting real property which do not adversely affect the value or use of such real property, and (iv) those described and reflected in the Scottdale Financial Statements (together “Scottdale Permitted Liens”). Somerset Bank and Such securities are valued on the Somerset Bank Subsidiariesbooks of Scottdale a in accordance with GAAP. Scottdale, as lessee, have has the right under valid and subsisting existing leases of real and personal properties used by Somerset Bank and its Subsidiaries Scottdale in the conduct of their businesses its business to occupy or use all such properties as presently occupied and used by each of them. Scottdale is not in default in any material respect under any lease for any real or personal property to which Scottdale is a party, and there has not occurred any event that, with lapse of time or the giving of notice or both, would constitute such default, except for such defaults that, either individually or in the aggregate, will not have a Material Adverse Effect on Scottdale. 5.8.2(b) With respect to all agreements pursuant to which Scottdale has purchased securities subject to an agreement to resell, if any, Scottdale has a valid, perfected first Lien in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. Somerset Bank Scottdale employs investment, securities risk management and each Somerset Bank Subsidiary other policies, practices and procedures that Scottdale believes are prudent and reasonable in the context of such businesses. (c) Scottdale currently maintain maintains insurance considered by Somerset Bank Scottdale to be reasonable for their respective operationsoperations in accordance with industry practice. Neither Somerset Bank nor any Somerset Bank Subsidiary Scottdale has not received notice during the past five (5) years from any insurance carrier that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs (other than with respect to health or disability insurance) with respect to such policies of insurance will be substantially increased. There Except as provided in Schedule 4.9(c), there are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank or any Somerset Bank Subsidiary Scottdale under such policiespolicies (other than with respect to health or disability insurance). All such insurance is valid and enforceable and in full force and effect, and within the last three years Somerset Bank and each Somerset Bank Subsidiary Scottdale has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 Scottdale Disclosure Schedule 4.9(c) identifies all material policies of insurance maintained by Somerset Bank and each Somerset Bank SubsidiaryScottdale as well as the other matters required to be disclosed under this Section 4.9(c).

Ownership of Property; Insurance Coverage. 5.8.1. Somerset Bank (a) NW Bancorp and each Somerset Bank Subsidiary has of the NW Bancorp Subsidiaries has, or will have as to property acquired after the date hereof, good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank NW Bancorp or each Somerset Bank any NW Bancorp Subsidiary in the conduct of its businessestheir businesses (“Owned Properties”), whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the balance sheets contained in the Somerset Bank Financial Statements NW Bancorp Regulatory Reports and in the NW Bancorp Financials or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of for fair value, in the ordinary course of business, since the date of such balance sheets), subject to no material Liensencumbrances, liens, mortgages, security interests or pledges, except (i) those items that which secure repurchase agreements and liabilities for public or statutory obligations or any discount withborrowed money from a Federal Home Loan Bank, borrowing from or other obligations to the FHLB, (ii) inter-bank credit facilities, or any transaction by a Somerset Bank NW Bancorp Subsidiary acting in a fiduciary capacity, and (iiiii) those reflected in the notes to the NW Bancorp Financials, (iv) statutory liens for amounts not yet delinquent or that which are being contested in good faith, and (v) the items disclosed in NW Bancorp Disclosure Schedule 2.11 (collectively the “NW Bancorp Permitted Encumbrances”). Somerset Bank NW Bancorp and the Somerset Bank NW Bancorp Subsidiaries, as lessee, have the right under valid and subsisting leases of real and personal properties used by Somerset Bank NW Bancorp and its Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. Except as disclosed in Section NW Bancorp Disclosure Schedule 2.11, such existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in the notes to the NW Bancorp Financials. 5.8.2(b) With respect to all agreements pursuant to which NW Bancorp or any NW Bancorp Subsidiary has purchased securities subject to an agreement to resell, if any, NW Bancorp or such NW Bancorp Subsidiary, as the case may be, has a valid, perfected first lien or security interest in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. (c) A true and complete copy of each agreement pursuant to which NW Bancorp or any of the NW Bancorp Subsidiaries leases any real property (such agreements, together with any amendments, modifications and other supplements thereto, collectively, the “Leases”), has heretofore been delivered to ACNB. Somerset Bank Assuming due authorization, execution and delivery by each Somerset Bank Party thereto other than NW Bancorp or an NW Bancorp Subsidiary party thereto, as the case may be, each Lease is enforceable in accordance with its terms and is in full force and effect, except as may be limited by bankruptcy, insolvency, moratorium, reorganization or similar laws affecting the rights of creditors generally and the availability of equitable remedies. There is not under any such Lease any material existing default by NW Bancorp or any of the NW Bancorp Subsidiaries or, to the Knowledge of NW Bancorp, any party thereto, or any event which with notice of lapse of time or both would constitute such a default. The consummation of the transactions this Agreement contemplates will not cause any default under the Leases, provided the consents and notices disclosed in NW Bancorp Disclosure Schedule 2.04 have been obtained or made, except for any such default which would not, individually or in the aggregate, have a Material Adverse Effect on NW Bancorp. (d) The Owned Properties and the properties leased pursuant to the Leases (the “Leased Properties”) constitute all of the real estate on which NW Bancorp and the NW Bancorp Subsidiaries maintain their facilities or conduct their business as of the date of this Agreement, except for locations the loss of which would not result in a Material Adverse Effect on NW Bancorp. (e) A true and complete copy of each agreement pursuant to which NW Bancorp or any of the NW Bancorp Subsidiaries leases real property to a third party (such agreements, together with any amendments, modifications and other supplements thereto, collectively, the “Third Party Leases”) has heretofore been delivered to ACNB. Assuming the due authorization, execution and delivery by the counterparty thereto, each Third Party Lease is valid, binding and enforceable in accordance with its terms and is in full force and effect, except as may be limited by bankruptcy, insolvency, moratorium, reorganization or similar laws affecting the rights of creditors generally and the availability of equitable remedies. To the Knowledge of NW Bancorp, there are no existing defaults by the tenant under any Third Party Lease, and no event has occurred which with notice or lapse of time or both would constitute such a default or which individually or in the aggregate would have a Material Adverse Effect on NW Bancorp. (f) NW Bancorp and the NW Bancorp Subsidiaries currently maintain insurance considered by Somerset Bank NW Bancorp to be reasonable for their respective operationsoperations and similar in scope and coverage to that maintained by other businesses similarly engaged. Neither Somerset Bank NW Bancorp nor any Somerset Bank NW Bancorp Subsidiary has received notice from any insurance carrier that (i) such insurance will be canceled cancelled or that coverage thereunder will be reduced or eliminated, or (ii) premium costs with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Somerset Bank NW Bancorp or any Somerset Bank NW Bancorp Subsidiary under such policies. All such insurance is valid and enforceable and in full force and effect, and within the last three five (5) years Somerset Bank and each Somerset Bank Subsidiary NW Bancorp has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 identifies all policies of insurance maintained by Somerset Bank and each Somerset Bank Subsidiary.

Ownership of Property; Insurance Coverage. 5.8.1. Somerset Bank 4.10.1 SWNB and each Somerset Bank SWNB Subsidiary has good and, as to real property, marketable title to all material assets and properties owned by Somerset Bank SWNB or each Somerset Bank Subsidiary such SWNB Subsidiary, as applicable, in the conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the most recent consolidated balance sheets sheet contained in the Somerset Bank SWNB Financial Statements or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such consolidated balance sheetssheet), subject to no material Liensencumbrances, except liens, mortgages, security interests or pledges, except: (i) those items that secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the FHLB, inter-bank credit facilities, reverse repurchase agreements or any transaction by a Somerset Bank SWNB Subsidiary acting in a fiduciary capacity, ; and (ii) statutory liens for amounts not yet delinquent or that are being contested in good faith. Somerset Bank SWNB and the Somerset Bank SWNB Subsidiaries, as lessee, have the right under valid and subsisting existing leases of real and personal properties used by Somerset Bank SWNB and its the SWNB Subsidiaries in the conduct of their businesses to occupy or use all such properties as presently occupied and used by each of them. Such existing leases and commitments to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and minimum rental commitments with respect to such leases and lease commitments are as disclosed in all material respects in the notes to the SWNB Financial Statements. 5.8.2. Somerset Bank 4.10.2 With respect to all material agreements pursuant to which SWNB or any SWNB Subsidiary has purchased securities subject to an agreement to resell, if any, SWNB or such SWNB Subsidiary, as the case may be, has a lien or security interest (which to SWNB’s Knowledge is a valid, perfected first lien) in the securities or other collateral securing the repurchase agreement, and the value of such collateral equals or exceeds the amount of the debt secured thereby. 4.10.3 SWNB and each Somerset Bank SWNB Subsidiary currently maintain insurance considered by Somerset Bank each of them to be reasonable for their respective operations. Neither Somerset Bank SWNB nor any Somerset Bank SWNB Subsidiary has received notice from any insurance carrier that on or before the date hereof that: (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated, ; or (ii) premium costs with respect to such policies of insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices of claim have been given by Somerset Bank SWNB or any Somerset Bank SWNB Subsidiary under such policies. All such insurance is valid and enforceable and in full force and effecteffect (other than insurance that expires in accordance with its terms), and within the last three years Somerset Bank since January 1, 2015, SWNB and each Somerset Bank SWNB Subsidiary has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies. SR BANCORP DISCLOSURE SCHEDULE 5.8.2 SWNB Disclosure Schedule 4.10.3 identifies all policies of insurance maintained by Somerset Bank SWNB and each Somerset Bank SWNB Subsidiary, including the name of the insurer, the policy number, the type of policy and any applicable deductibles, as well as the other matters required to be disclosed under this Section 4.10.3. SWNB has made available to Hanmi copies of all of the policies listed on SWNB Disclosure Schedule 4.10.3.