"Loan Monitor Bank - PDF"
Approved by the Committee April 14, 2011 Approved by the Board April 21, 2011 Charter People’s United Bank Board of Directors Loan Review Committee The Loan Review Committee has been established to oversee management’s execution of the Bank’s 1 credit strategy, as articulated in the Bank’s Strategic Plan. The Committee shall evaluate management’s implementation of strategy, including its credit policies and loan portfolio performance, in light of the credit risk tolerances established in the Bank’s Strategic Plan. The Committee shall meet monthly, except during August, or at the call of the Chairman of the Committee. Minutes of all meetings of the Committee shall be kept and recorded, and shall be provided to the Board at a subsequent meeting of the Board of Directors. The Chairman of the Committee, or his or her designee, shall preside at meetings. A majority of Committee members shall constitute a quorum. In accordance with the Bank’s bylaws, if any member of the Committee is not present at a meeting, or is otherwise disqualified from voting, the remaining Committee members may, by unanimous vote, appoint another member of the Board of Directors to act in his or her stead. The Committee shall coordinate its oversight of credit risk with the People’s United Financial, Inc. Enterprise Risk Committee, which has responsibility for oversight of the enterprise-wide risk management process for People’s United Financial, Inc. and its subsidiaries, including the Bank. In fulfilling its responsibilities, the Committee will: Approve credit policies, taking into consideration the conformity of such credit policies with the Bank’s credit strategy and credit risk tolerance; Monitor economic and competitive trends and assess the impact of such trends on the Bank’s ability to execute its credit strategy while maintaining credit risk within established tolerances; Oversee credit monitoring processes; Monitor the status of loan portfolios, including periodic review of: o pipeline trends; o closed loan trends; o large commercial, commercial real estate, PCLC and PUEFC borrowing relationships; o loan rating trends; o asset classes and asset concentrations ; 1 In this charter the term “Bank” includes the Bank’s lending subsidiaries: People’s Capital and Leasing Corporation (“PCLC”) and People’s United Equipment Finance Corporation. (“PUEFC”). Loan Review Committee – Charter (continued) Monitor concentration limits for conformity with concentration policy; Monitor the integration of acquired credit portfolios into the Bank’s respective portfolios, as appropriate; Monitor loan portfolio quality, including periodic review of o delinquency and non-performing asset trends; o criticized and classified loans; o charge-offs; Review and approve policies regarding the acquisition, management and disposition of collateral, including foreclosed property (REO); o monitor the Bank’s real estate foreclosure and loan modification processes; Monitor management’s response to all credit-related comments made in reports of examination by supervisory agencies; Monitor management’s response to credit-related supervisory and regulatory pronouncements (e.g. new regulations; CEO memos; Interagency Guidance; supervisory letters); Monitor management’s implementation of the Bank’s credit-related business strategy, including introduction of new business lines; significant expansion of existing business lines or entry into new markets; Review and approve exposures and limits associated with trading counterparties; Review loans exceeding supervisory limits; Oversee the Bank’s compliance with the Community Reinvestment Act (“CRA”); o approve Community Reinvestment Act (CRA) investments recommended by the CRA Investment Review Committee pursuant to the Bank’s CRA Investment Policy.