The Bank is subject to the Pennsylvania Banking Code of (the “Code”), as amended, and is restricted in the amount of dividends that can be paid to its sole shareholder, the Corporation. The Code restricts the payment of dividends by the Bank to the amount of its net income during the current calendar year and the retained net income of the prior calendar years, unless the dividend has been approved by the Board of Governors of the Federal Reserve System. The Bank’s total retained net income for the combined years ended and was thousand. During the months ended the Bank issued dividends to the Corporation totaling million. Accordingly, the dividend payable by the Bank to the Corporation beginning on is limited to net income not yet earned in plus thousand. The amount of dividends paid by the Bank not exceed a level that reduces capital levels to below levels that would cause the Bank to be considered less than adequately capitalized as detailed in Note – “Regulatory Capital Requirements”.