Common use of PROBLEM LOAN MANAGEMENT Clause in Contracts

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

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

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

PROBLEM LOAN MANAGEMENT. (1) Effective as of the date Within thirty (30) days of this Agreement, the Board shall take immediate submit the name and continuing action qualifications of the proposed individual pursuant to protect its interest in those assets criticized in paragraph (2) of this Article to the XXX, in any subsequent Report Assistant Deputy Comptroller for a prior written determination of Examination, by internal or external loan review, or in any list provided to management by the Comptroller's Examiners during any examinationno objection. (2) Within ninety seven (907) days after receipt of a written determination of no objection from the Assistant Deputy Comptroller, the Board shall appoint an individual (“loan workout specialist”) charged with implementation and supervision of the formal written program, internal or external, who shall be independent and report directly to the Board, for the purpose of collecting or resolving classified assets, consistent with OCC Banking Circular 255, including CRE loans. (3) Within sixty (60) days of this Agreement, the Board shall prepare and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a written program designed to reduce the Bank's criticized ’s classified assets (the "“Problem Assets Plan"Program”). The Problem Assets Plan Program shall include or address the following matters: (a) aggregate reporting of criticized classified asset levels by type to the Board or a designated committee thereof every month;; and (b) specific plans for the reduction of criticized classified assets by asset type with target reductions by month; and. (c4) The Board’s compliance with Paragraph (3) of this Article shall include the development of procedures for the monthly quarterly review and preparation of written determinations by the Board or a designated committee thereof regarding the effectiveness of the responsible officer's ’s efforts to eliminate the weaknesses in each criticized credit relationship or Other Real Estate Owned ("REO"“ORE”) totaling twoone-hundred fifty thousand dollars ($250,000100,000) or above more, and that require the preparation of Problem Asset Reports (including any sold portion). (3“PARs” or “PAR”) The Board's compliance with Paragraph (2) of this Article shall include the development of procedures for the monthly submission and review of problem asset reports for all criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion), that requirecontain, at a minimum, analysis and documentation of the following: (a) the origination data for each criticized asset, including date, amount, and purpose of the loan; (b) an identification of the expected sources of repaymentrepayment and an analysis of their adequacy; (bc) the current appraised value of supporting collateral and the position of the Bank's ’s lien on such collateral where applicable, applicable as well as other necessary documentation to support the collateral valuation; (cd) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; (de) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment; (ef) trigger dates for positive borrower actions or for loan officers to reassess the strategy and strategy, enact collection plans; (f) specific action plans , and trigger dates for risk rating changes and documentation of the analysis and reasoning to support the current risk ratingmake appropriate downgrades or place on nonaccrual; (g) a determination of whether the loan is impaired and the amount of the impairment, consistent with FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan; and (h) for criticized relationships of twoone-hundred fifty thousand dollars ($250,000100,000) or above (including any sold portion) that were made for the purpose of constructing or developing commercial real estateCRE, the reports PARs shall also include: (i) the initial scheduled maturity date of the loan, number of extensions and/or renewals, and current maturity date; (ii) project development status; (iii) a comparison of development costs to the budgeted amount; (iv) a comparison of sales activity to the original sales projections; (v) current market conditions and activity; (vi) amount and source of initial interest reserve and the amount and source of any subsequent additions to the reserve; (viivi) an assessment of the borrower's ’s global cash flow; (viiivii) an assessment of the any guarantor's ability to support the project;’s global cash flow; and (ixviii) any other significant information relating to the project; and (h) a determination of whether the loan is impaired and the amount of the impairment, consistent with Accounting Standards Codification 310-10 (formerly known as FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan). (45) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement adopt, implement, and thereafter ensure adherence to the program required by this Article. (5) A copy of each problem asset report relating to criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion) prepared during the last month of each quarter end (e.g., March, June, September, December) along with any Board comments regarding the effectiveness of the effort to eliminate the weaknesses in each credit or to dispose of the REO, shall be submitted to the Assistant Deputy Comptroller within thirty (30) days of each calendar quarter end, with the first set of reports due by no later than April 30, 2012. (6) Effective as of the date of this Agreement, the Bank may not extend credit, directly or indirectly, including renewals, extensions or capitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the XXX, in any subsequent Report of Examination, in any internal or external loan review, or in any list provided to management by the Comptroller's National Bank Examiners during any examination and whose aggregate loans or other extensions of credit equal or exceed twoone-hundred fifty thousand dollars ($250,000) (including any sold portion100,000), unless each of the following conditions is met: (a) the Board or a designated committee thereof finds that the extension of additional credit is necessary to promote the best interests of the Bank and that prior to renewing, extending or capitalizing any additional credit, a majority of the Board or a designated committee thereof approves the credit extension and documents in writing writing, the reasons that such extension is necessary to promote the best interests of the Bank’s rationale for the renewal.; and (b) the Board's ’s formal plan to collect or strengthen the criticized asset will not be compromisedcompromised by the extension of credit.

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

PROBLEM LOAN MANAGEMENT. (1) Effective as of the date of this Agreement, the Board shall take immediate and continuing action to protect its interest in those assets criticized in the XXX, in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the Comptroller's National Bank Examiners during any examination. (2) Within ninety The Board’s compliance with Paragraph (901) days of this Agreement, Article shall require the Board shall prepare quarterly submission and submit to the Assistant Deputy Comptroller for a prior written determination review of no supervisory objection, a written program designed to reduce the Bank's criticized assets (the "Problem Assets Plan"). The Problem Assets Plan shall include or address the following matters: (a) aggregate reporting reports of criticized asset levels by type to the Board or a designated committee thereof every month; (b) specific plans for the reduction of criticized assets by asset type with target reductions by month; and (c) procedures for the monthly review and preparation of written determinations by the Board or a designated committee thereof regarding the effectiveness of the responsible officer's efforts to eliminate the weaknesses in each all criticized credit relationship relationships or Other Real Estate Owned ("REO"“ORE”) totaling two-two hundred fifty thousand dollars ($250,000) or above more, and require the preparation of Problem Asset Reports (including any sold portion). (3“PARs” or “PAR”) The Board's compliance with Paragraph (2) of this Article shall include the development of procedures for the monthly submission and review of problem asset reports for all criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion), that requirecontain, at a minimum, analysis and documentation of the following:documentation (a) an identification of the expected sources of repaymentrepayment and an analysis of their adequacy; (b) the current appraised value of supporting collateral and the position of the Bank's ’s lien on such collateral where applicable, applicable as well as other necessary documentation to support the collateral valuation; (c) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; (d) the current loan grade and proposed action to eliminate the basis of criticism and the time frame for its accomplishmentsuch elimination; (e) trigger dates for positive borrower actions or for loan officers to reassess the strategy and strategy, enact collection plans; (f) specific action plans and trigger dates for risk rating changes and documentation of the analysis and reasoning to support the current risk rating; (g) for criticized relationships of two-hundred fifty thousand dollars ($250,000) or above (including any sold portion) that were made for the purpose of constructing or developing commercial real estate, the reports shall also include: (i) the initial scheduled maturity date of the loan, number of extensions and/or renewals, and current maturity date; (ii) project development status; (iii) a comparison of development costs to the budgeted amount; (iv) a comparison of sales activity to the original sales projections; (v) current market conditions and activity; (vi) amount and source of initial interest reserve and the amount and source of any subsequent additions to the reserve; (vii) an assessment of the borrower's global cash flow; (viii) an assessment of the guarantor's ability to support the project; (ix) any other significant information relating to the projectmake appropriate downgrades or place on nonaccrual; and (hf) a determination of whether the a loan is impaired and measuring the amount of the impairment, consistent with the guidance set forth in the Federal Financial Institutions Examination Council’s “Interagency Policy Statement on the Allowance for Loan and Lease Losses” dated December 13, 2006 (OCC Bulletin 2006-47), and July 20, 2001 (OCC Bulletin 2001-37), and Accounting Standards Codification 310-10 (formerly known as FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan). (4) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the program required by this Article. (53) A copy of each problem asset report relating to criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion) PAR prepared during the last month of each quarter end (e.g., March, June, September, and December) ), along with any Board comments regarding the effectiveness of the effort to eliminate the weaknesses in each credit or to dispose of the REOORE, shall be submitted to the Assistant Deputy Comptroller within thirty (30) days of each calendar quarter end, with the first set of reports due by no later than April 30, 2012. (64) Effective as of the date of this Agreement, the Bank may not extend credit, directly or indirectly, including renewals, extensions or capitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the XXX, in any subsequent Report of Examination, in any internal or external loan review, or in any list provided to management by the Comptroller's National Bank Examiners during any examination and whose aggregate loans or other extensions of credit equal or exceed two-two hundred fifty thousand dollars ($250,000) (including any sold portion), unless each of the following conditions is met: (a) the Board or a designated committee thereof finds that the extension of additional credit is necessary to promote the best interests of the Bank and that prior to renewing, extending or capitalizing any additional credit, a majority of the Board or a designated committee thereof approves the credit extension and documents in writing writing, the reasons that such extension is necessary to promote the best interests of the Bank’s rationale for the renewal.; and (b) the Board's ’s formal plan to collect or strengthen the criticized asset will not be compromisedcompromised by the extension of credit. (5) Within ninety (90) days of this Agreement, the Board shall ensure that the President, Senior Loan Officer, and all lending officers receive appropriate training on the development of prudent workout plans and strategies for problem borrowers.

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

PROBLEM LOAN MANAGEMENT. (1) Effective as of the date of this Agreement, the Board shall take immediate and continuing action to protect its interest in those assets criticized as “doubtful”, “substandard”, or “special mention” in the XXX, in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the Comptroller's National Bank Examiners during any examination. (2) Within ninety (90) days of this Agreement, the Board shall prepare and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a written program designed to reduce the Bank's criticized assets (the "Problem Assets Plan"). The Problem Assets Plan shall include or address the following matters: (a) aggregate reporting of criticized asset levels by type to the Board or a designated committee thereof every month; (b) specific plans for the reduction of criticized assets by asset type with target reductions by month; and (c) procedures for the monthly review and preparation of written determinations by the Board or a designated committee thereof regarding the effectiveness of the responsible officer's efforts to eliminate the weaknesses in each criticized credit relationship or Real Estate Owned ("REO") totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion). (3) The Board's ’s compliance with Paragraph (21) of this Article shall include the development of procedures for the monthly submission and review of problem asset reports a written program for all criticized credit relationships and REO totaling two-three hundred fifty thousand dollars ($250,000300,000) or above (including any sold portion), that require, at a minimum, analysis and documentation of the following: (a) an identification of the root cause of the problem, and if the Bank’s plan is to retain or exit the credit relationship; (b) the proposed actions to eliminate the basis of criticism and the time frames for their accomplishment, incorporating: (i) specific workout objectives; (ii) target dates; (iii) performance criteria to measure progress toward problem resolution; and (iv) reinforcement accountability in the workout process. (c) an identification of the expected sources of repayment; (b) the current appraised value of supporting collateral and the position of the Bank's lien on such collateral where applicable, as well as other necessary documentation to support the collateral valuation; (cd) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; (de) the proposed action to eliminate the basis appraised value of criticism supporting collateral and the time frame for its accomplishment;position of the Bank’s lien on such collateral where applicable as well as other necessary documentation to support collateral valuation; and (ef) trigger dates for positive borrower actions or for loan officers to reassess the strategy and enact collection plans;. (f3) specific action plans and trigger dates for risk rating changes and documentation Upon adoption, a copy of the analysis and reasoning program for all criticized assets equal to support the current risk rating; (g) for criticized relationships of two-or exceeding three hundred fifty thousand dollars ($250,000300,000) or above (including any sold portion) that were made for the purpose of constructing or developing commercial real estate, the reports shall also include: (i) the initial scheduled maturity date of the loan, number of extensions and/or renewals, and current maturity date; (ii) project development status; (iii) a comparison of development costs be forwarded to the budgeted amount; (iv) a comparison of sales activity to the original sales projections; (v) current market conditions and activity; (vi) amount and source of initial interest reserve and the amount and source of any subsequent additions to the reserve; (vii) an assessment of the borrower's global cash flow; (viii) an assessment of the guarantor's ability to support the project; (ix) any other significant information relating to the project; and (h) a determination of whether the loan is impaired and the amount of the impairment, consistent with Accounting Standards Codification 310-10 (formerly known as FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan)Assistant Deputy Comptroller. (4) Upon receiving The Board, or a written determination designated committee, shall conduct a review on at least a quarterly basis to determine: (a) the status of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure each criticized asset or criticized portion thereof that equals or exceeds three hundred thousand dollars ($300,000); (b) management’s adherence to the program required by adopted pursuant to this Article; (c) the status and effectiveness of the written program; and (d) the need to revise the program or take alternative action. (5) A copy of each problem asset report relating to criticized credit relationships and REO totaling two-hundred fifty thousand dollars review required by Paragraph ($250,0004) or above (including any sold portion) prepared during the last month of each quarter end (e.g., March, June, September, December) along with any Board comments regarding the effectiveness of the effort to eliminate the weaknesses in each credit or to dispose of the REO, this Article shall be submitted forwarded to the Assistant Deputy Comptroller within thirty (30) days of each calendar quarter end, with the first set of reports due by no later than April 30, 2012on a quarterly basis. (6) Effective as of the date of this Agreement, the Bank may not extend credit, directly or indirectly, including renewals, extensions or extensions, capitalization of accrued interest, or renew its purchase of a participation purchased, to a borrower whose loans or other extensions of credit are criticized in the XXX, in any subsequent Report of Examination, in any internal or external loan review, or in any list provided to management by the Comptroller's National Bank Examiners during any examination and whose aggregate loans or other extensions equal or exceed two-total three hundred fifty thousand dollars ($250,000) (including any sold portion300,000), or more, unless each of the following conditions is met: (a) the Board or a designated committee thereof finds that the extension of additional credit is necessary to promote the best interests of the Bank and that prior to renewing, extending or capitalizing any additional credit, a majority of the full Board (or a designated committee thereof committee) approves the credit extension and documents records, in writing writing, why such extension is necessary to promote the best interests of the Bank’s rationale for the renewal.; (b) the Board's ’s formal plan to collect or strengthen the criticized asset will not be compromised; and (c) a copy of the approval of the Board or of the designated committee shall be maintained in the file of the affected borrower.

PROBLEM LOAN MANAGEMENT. (1) Effective as of the date of this Agreement, the Board shall take immediate and continuing action to protect its interest in those assets criticized in the XXX, in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the Comptroller's Examiners during any examination. (2) Within ninety (90) days of the date of this Agreement, the Board shall prepare and submit to the Assistant Deputy Comptroller ADC for a review and prior written determination of no supervisory objection, a written program designed to reduce identify and manage the Bank's criticized ’s problem assets to maintain safe and sound levels (the "“Problem Assets Plan"Program”). The Problem Assets Plan Program shall include or address policies and procedures for developing action plans for each problem credit that would contain the following mattersinformation: (a) aggregate reporting an identification and explanation of criticized asset levels by type the problems and causes that led to the Board or a designated committee thereof every monthasset’s criticized status; (b) specific plans for a decision of whether to rehabilitate or to exit the reduction of criticized assets by asset type with target reductions by month; andcredit relationship; (c) procedures for the monthly review and preparation of written determinations by the Board or a designated committee thereof regarding the effectiveness of the responsible officer's efforts to eliminate the weaknesses in each criticized credit relationship or Real Estate Owned ("REO") totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion). (3) The Board's compliance with Paragraph (2) of this Article shall include the development of procedures for the monthly submission and review of problem asset reports for all criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion), that require, at a minimum, analysis and documentation of the following: (a) an identification of the expected sources of repaymentrepayment and an analysis of their adequacy; (bd) the current appraised value of supporting collateral collateral, as determined by an appraisal or an evaluation, and the position of the Bank's ’s lien on such collateral where applicable, as well as other necessary documentation to support the collateral valuation; (ce) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; (df) the accrual designation and justification for the designation; (g) the proposed action action, by the Bank or the borrower, to eliminate the basis of criticism and the time frame for its accomplishment; (e) trigger dates for borrower actions or for loan officers to reassess the strategy and enact collection plans; (f) specific action plans and trigger dates for risk rating changes and documentation of the analysis and reasoning to support the current risk rating; (g) for criticized relationships of two-hundred fifty thousand dollars ($250,000) or above (including any sold portion) that were made for the purpose of constructing or developing commercial real estate, the reports shall also include: (i) the initial scheduled maturity date of the loan, number of extensions and/or renewals, and current maturity date; (ii) project development status; (iii) a comparison of development costs to the budgeted amount; (iv) a comparison of sales activity to the original sales projections; (v) current market conditions and activity; (vi) amount and source of initial interest reserve and the amount and source of any subsequent additions to the reserve; (vii) an assessment of the borrower's global cash flow; (viii) an assessment of the guarantor's ability to support the project; (ix) any other significant information relating to the project; and (h) a determination of whether trigger dates for upgrading or downgrading the loan is impaired and the amount of the impairment, consistent with Accounting Standards Codification 310-10 (formerly known as FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan)credit relationship. (42) The Problem Assets Program shall also include policies and procedures to address criticized asset levels including: (a) a threshold level of classified assets based on capital level under which to implement the plan; (b) specific plans for the reduction of problem assets by asset type with target reductions by month; and (c) a documented quarterly review by the Board, or designated committee thereof, of the efforts to execute the specific plans to reduce problem asset levels. (3) Upon receiving a written determination of no supervisory objection from the Assistant Deputy ComptrollerADC, the Board shall immediately implement and thereafter ensure adherence to the program Problem Assets Program required by this Article. (54) A copy of each problem asset report relating to criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion) prepared during the last month of each quarter end (e.g., March, June, September, December) along with any Board comments regarding the effectiveness of the effort to eliminate the weaknesses in each credit or to dispose of the REO, The Bank shall be submitted to the Assistant Deputy Comptroller within thirty (30) days of each calendar quarter end, with the first set of reports due by no later than April 30, 2012. (6) Effective as of the date of this Agreement, the Bank may not extend credit, directly or indirectly, including including, but not limited to, renewals, extensions or capitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized by the OCC in the XXX, in any subsequent a Report of ExaminationExamination or otherwise, or in any internal or external loan review, or in any list provided to management by the Comptroller's Examiners during any examination and whose aggregate loans or other extensions equal or exceed two-of credit, are one hundred fifty thousand dollars ($250,000100,000) (including any sold portion)or more, unless each of the following conditions is met: (a) the Board or a designated committee thereof finds that the extension of additional credit is necessary to promote the best interests of the Bank and that prior to renewing, extending or capitalizing any additional credit, a majority of the Board or a designated committee thereof approves certifies in writing within the credit extension and documents in writing the Bank’s rationale for the renewal.presentation that: (ba) the Board's ’s formal plan to collect or strengthen the criticized asset will not be compromised; and (b) the extension or renewal is necessary to promote the best interests of the Bank, with documentation for the reasons thereof and that include consideration of subparagraphs (a) through (h) under Paragraph (1) of this Article.

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

PROBLEM LOAN MANAGEMENT. ‌ (1) Effective as of the date of this Agreement, the Board shall take immediate and continuing action to protect its the Bank’s interest in those assets criticized in the XXXclassified and special mention loans identified by OCC examiners, in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the Comptroller's Examiners during any examinationBank (hereafter, problem loans). (2) Within ninety (90) days of this AgreementBy October 31, 2022, the Board shall prepare and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, adopt a written program designed to reduce identify, measure, monitor, and control the Bank's criticized assets ’s problem loans (the "Problem Assets Plan"Loan Program). The Problem Assets Plan Loan Program shall include or address address, at a minimum, the following matters: (a) policies that address problem loan management that include, at a minimum, responsibilities and accountability for identifying, measuring, monitoring, and controlling problem loans, risk rating definitions, nonaccrual definition, problem asset report (PAR) requirements and reporting, and collateral valuation requirements; (b) aggregate reporting of criticized classified assets and special mention asset levels by type risk rating as a percentage of Tier 1 capital plus the ALLL with trend analyses to the Board or a designated committee thereof every month; (b) specific plans for the reduction of criticized assets by asset type with target reductions by monthquarter; and (c) procedures training for credit approval committee members, loan officers, and credit staff on problem loan management and the monthly review Bank’s Problem Asset Program, policy, and preparation of written determinations by the Board or a designated committee thereof regarding the effectiveness of the responsible officer's efforts to eliminate the weaknesses in each criticized credit relationship or Real Estate Owned ("REO") totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion)processes. (3) The Board's compliance By October 31, 2022, the Board shall develop written procedures with Paragraph (2) of this Article shall include the development of procedures assigned responsibility for the monthly quarterly submission and review of reports of all problem asset reports for all criticized credit relationships and REO assets totaling two-one hundred fifty thousand dollars ($250,000100,000) or above (including any sold portionPAR), that . Each PAR shall require, at a minimum, analysis and documentation of the following: (a) an identification of the current expected sources of repayment; (b) detailed collateral information, including, as applicable, the current appraised value of supporting collateral collateral, the condition of the collateral, and the position of the Bank's ’s lien on such collateral where applicable, as well as other necessary documentation to support the collateral valuationposition; (c) an analysis concessions made to the terms of current the credit, if any, and satisfactory credit information, including cash flow analysis where loans are to be repaid from operationshow doing so will improve the problem credit; (d) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment; (e) trigger dates for borrower actions or for loan officers to reassess the officer reassessment of strategy and enact enactment of collection plans; (e) the root causes of the credit weakness; (f) specific action plans current and trigger dates for risk rating changes and documentation of the analysis and reasoning to support the current risk ratingsatisfactory credit information; (g) for criticized relationships of two-hundred fifty thousand dollars ($250,000) or above (including any sold portion) that were made for the purpose of constructing or developing commercial real estate, the reports shall also include: (i) the initial scheduled maturity date of the loan, number of extensions and/or renewals, and current maturity date; (ii) project development status; (iii) a comparison of development costs to the budgeted amount; (iv) a comparison of sales activity to the original sales projections; (v) current market conditions and activity; (vi) amount and source of initial interest reserve and the amount and source of any subsequent additions to the reserve; (vii) an assessment of the borrower's global cash flow; (viii) an assessment of the guarantor's ability to support the project; (ix) any other significant information relating to the project; and (h) a determination of whether the loan is impaired and the amount of the impairmentimpairment amount, consistent with Accounting Standards Codification 310-10 generally accepted accounting principles (formerly known as FASB Statement GAAP); (h) analysis and reasoning to support the current risk rating along with specific action plans and triggers for risk rating changes; and (i) a review, at least quarterly, by the Board or a designated committee thereof to: (i) measure progress and reevaluate the suitability of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment the action plans; and (ii) document the effectiveness of a Loan)the responsible officer’s efforts to eliminate the weakness in each problem asset relationship. (4) Upon receiving a written determination adoption of no supervisory objection from the Assistant Deputy ComptrollerProblem Loan Program, the Bank management, subject to Board review and ongoing monitoring, shall immediately implement and thereafter ensure adherence to the program Problem Loan Program and any amendments thereto. The Board shall review the effectiveness of the Problem Loan Program at least annually, and more frequently if necessary or if required by this Articlethe OCC in writing, and amend the Problem Loan Program as needed or directed by the OCC. (5) A copy of each problem asset report relating to criticized credit relationships and REO totaling two-hundred fifty thousand dollars ($250,000) or above (including any sold portion) prepared during the last month of each quarter end (e.g., March, June, September, December) along with any Board comments regarding the effectiveness of the effort to eliminate the weaknesses in each credit or to dispose of the REO, shall be submitted to the Assistant Deputy Comptroller within thirty (30) days of each calendar quarter end, with the first set of reports due by no later than April 30, 2012. (6) Effective as of the date of this Agreement, the Bank may not extend credit, directly or indirectly, including overdrafts, renewals, extensions of the payment or principal due date, or capitalization of accrued interest, but excluding advances on previously approved lines of credit, to a borrower whose loans or other extensions of credit are criticized in considered problem assets by the XXXOCC examiners, in any subsequent Report of Examination, in any internal or external loan review, or in any list provided to management by the Comptroller's Examiners during any examination Bank, and whose aggregate loans or other extensions equal or of credit, exceed two-one hundred fifty thousand dollars ($250,000100,000) (including any sold portion), unless each of the following conditions is are met: (a) a majority of the full Board approves the credit extension; (b) the Board or a designated committee thereof finds that explains in writing how the credit extension of additional credit is necessary to promote the best interests of the Bank and that prior to renewing, extending or capitalizing any additional credit, a majority of Bank; (c) the Board or a designated committee thereof approves explains in writing how the credit extension and documents in writing the Bank’s rationale for the renewal. (b) will not compromise the Board's ’s formal plan to collect or strengthen the criticized asset will not be compromisedproblem asset; and (d) the Board’s written determinations required by this Article are maintained in the borrower’s credit file.

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

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