Discount Committee Charter

Charter Of The Discount Committee

Purpose Of The Committee

The purpose of the Discount Committee of the Board of Directors of Hawaii National Bank (the "Bank") is to assist the Board of Directors in overseeing the credit area.

Composition Of The Committee

The Discount Committee shall be comprised of at least three members.

Meetings

The Discount Committee shall meet weekly.

Responsibilities

The Discount Committee's responsibilities include:

• Serving as the highest approving authority for extensions of credit, retention of non accruing credits, compromise settlements, and loan charge-offs.
• Approving the purchase and sale of loans.
• Reviewing loan grades and reports by the independent loan reviewer.
• Supervising the Action Plan Committee, a management committee that oversees problem loans.
• Monitoring asset quality, delinquencies, concentrations of credit, and trends in the loan portfolio.
• Reviewing this Charter and the Bank Loan Policy at least annually and recommending any changes to the full Board for approval.