Common use of PROFIT PLAN Clause in Contracts

PROFIT PLAN. (1) Within sixty (60) days, the Board shall review, revise as needed, and thereafter ensure Bank adherence to its written profit plan to improve and sustain the earnings of the Bank. This plan shall include, at minimum, the following elements: (a) identification of the major areas in and means by which the Board will seek to improve the Bank’s operating performance; (b) realistic and comprehensive budgets, including projected balance sheets and year-end income statements; (c) a budget review process to monitor both the Bank’s income and expenses, and to compare actual figures with budgetary projections; (d) a description of the operating assumptions that form the basis for major projected income and expense components; (e) an action plan to ensure the ongoing adequacy of capital and the availability of sources of additional capital; and, (f) plans to ensure the continued adequacy of the allowance for loan and lease losses, in accordance with the Allowance for Loan and Lease Losses of the Comptroller’s Handbook and OCC Bulletin 2006-47, “Interagency Policy Statement on the Allowance for Loan and Lease Losses.” (2) The budgets and related documents required in paragraph (1) above for 2009 shall be submitted to the Assistant Deputy Comptroller. The Board shall submit to the Assistant Deputy Comptroller annual budgets as described in paragraph (1) above for each year this Formal Agreement remains in effect. A preliminary budget for each year shall be submitted on or before November 30, of the preceding year. A final budget for each year shall be submitted on or before January 31 of the current year. (3) The Board shall forward comparisons of its balance sheet and profit and loss statement to the profit plan projections to the Assistant Deputy Comptroller on a quarterly basis.

PROFIT PLAN. (1) Within sixty (60) days, the Board shall reviewdevelop a revised profit plan for calendar year 2002 to account for extraordinary and other expenses associated with this Agreement and any other significant changes in the bank’s business strategy. (2) In consideration of the Bank’s strategic plan developed in Article V, revise as neededwithin one hundred and eighty (180) days, and thereafter ensure Bank adherence to its written profit the Board shall develop a plan to improve and sustain the earnings of the Bank. This plan shall include, at minimum, the following elements: (a) identification of the major areas in and means by which the Board will seek to improve the Bank’s 's operating performance; (b) realistic and comprehensive budgets, including projected balance sheets and year-end income statements;; and (c) a budget review process to monitor both the Bank’s 's income and expenses, and to compare actual figures with budgetary projections;projections with focus on substantive variances. (d3) a description Upon completion of the operating assumptions that form the basis for major projected income and expense components; (e) an action each plan to ensure the ongoing adequacy of capital and the availability of sources of additional capital; and, (f) plans to ensure the continued adequacy of the allowance for loan and lease losses, in accordance with the Allowance for Loan and Lease Losses of the Comptroller’s Handbook and OCC Bulletin 2006-47, “Interagency Policy Statement on the Allowance for Loan and Lease Losses.” (2) The budgets and related documents required in paragraph under sections (1) above for 2009 and (2), the Board’s profit plan shall be submitted to the Assistant Deputy Comptroller for prior determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall implement and ensure the Bank’s adherence to the profit plan. (4) The budgets and related documents for 2002 required in subparagraph (1)(b) above shall be submitted to the Assistant Deputy Comptroller upon completion. The Board shall submit to the Assistant Deputy Comptroller annual budgets as described in paragraph subparagraph (11)(b) above for each year this Formal Agreement remains in effect. A preliminary The budget for each year shall be submitted on or before November 30, of the preceding year. A final budget for each year shall be submitted on or before January 31 of the current year. (3) The Board shall forward comparisons of its balance sheet and profit and loss statement to the profit plan projections to the Assistant Deputy Comptroller on a quarterly basis.

PROFIT PLAN. (1) Within sixty (60) days, the Board shall review, revise as needed, and thereafter ensure Bank adherence to its written profit plan to improve and sustain the earnings of the Bank. This plan shall include, at minimum, the following elements: (a) identification of the major areas in and means by which the Board will seek to improve the Bank’s 's operating performance; (b) realistic and comprehensive budgets, including projected balance sheets and year-end income statements; (c) a budget review process to monitor both the Bank’s 's income and expenses, and to compare actual figures with budgetary projections; (d) a description of the operating assumptions that form the basis for major projected income and expense components; (e) an action plan to ensure the ongoing adequacy of capital and the availability of sources of additional capital; and, (f) plans to ensure the continued adequacy of the allowance for loan and lease losses, in accordance with the Allowance for Loan and Lease Losses of the Comptroller’s Handbook and OCC Bulletin 2006-47, “Interagency Policy Statement on the Allowance for Loan and Lease Losses.” (2) The budgets and related documents required in paragraph (1) above for 2009 shall be submitted to the Assistant Deputy Comptroller. The Board shall submit to the Assistant Deputy Comptroller annual budgets as described in paragraph (1) above for each year this Formal Agreement remains in effect. A preliminary budget for each year shall be submitted on or before November 30, of the preceding year. A final budget for each year shall be submitted on or before January 31 of the current year. (3) The Board shall forward comparisons of its balance sheet and profit and loss statement to the profit plan projections to the Assistant Deputy Comptroller on a quarterly basis.

PROFIT PLAN. (1) Within sixty one hundred twenty (60120) daysdays of the date of this Agreement, the Board shall reviewrevise, revise as neededimplement, and thereafter ensure Bank adherence to its a written profit plan to improve and sustain the earnings of the Bank. This plan shall include, at minimum, the following elements: (a) identification of the major areas in and means by which the Board will seek to improve the Bank’s 's operating performance, including, but not limited to, loan and deposit pricing strategies; (b) realistic narrative detail as to underlying assumptions and management's plans to reach targeted goals and sustain targeted levels; (c) reasonable and comprehensive budgets, including projected balance sheets and year-end income statements, particularly with regard to noninterest expenses such as professional fees and staffing; (cd) a budget review process to monitor both the Bank’s 's income and expenses, and to compare actual figures with budgetary projections, including, but not limited to the following: (i) processes to incorporate proposed expenditure needs by each department manager for the coming year; (dii) senior management review to ensure that departmental expenditures are reasonable, well supported and documented, and consistent with the goals and objectives of the profitability of the Bank; (iii) documented annual review and approval of the budget by the Board; (iv) quarterly review of budget variances, including detailed explanations for variances; and (v) processes to ensure that any revision to the budget includes a detailed explanation and analysis and is recorded in the Board minutes. (e) a description of the operating assumptions that form the basis for major projected income and expense components; (e) an action plan to ensure the ongoing adequacy of capital and the availability of sources of additional capital; and, (f) plans to ensure the continued adequacy impact of the allowance for loan and lease losses, in accordance with the Allowance for Loan and Lease Losses of the ComptrollerBank’s Handbook and OCC Bulletin 2006-47, “Interagency Policy Statement strategies on the Allowance for Loan and Lease Lossesits capital ratios.” (2) The budgets and related documents required in paragraph (1) above for 2009 2015 shall be submitted to the Assistant Deputy ComptrollerComptroller upon completion. The Board shall submit to the Assistant Deputy Comptroller annual budgets as described in paragraph subparagraph (11)(b) above for each year this Formal Agreement remains in effect. A preliminary The budget for each year following the 2015 budget shall be submitted on or before November 30, of the preceding year. A final budget for each year shall be submitted on or before January 31 of the current year. (3) The Board shall forward comparisons of its balance sheet and profit and loss statement to the profit plan projections to the Assistant Deputy Comptroller on a quarterly basis.