NEW YORK PRIVATE BANK & TRUST CORPORATION

Excessive or Luxury Expenditures Policy

This policy addresses the requirement under Section 111(d) of Emergency Economic Stabilization Act of 2008 (EESA), as amended by the American Recovery and Reinvestment Act of 2009 (ARRA) that each recipient of funds under the Capital Purchase Program (CPP) of the Troubled Assets Relief Program (TARP) to adopt a company-wide policy regarding excessive or luxury expenditures, as identified by the Secretary of the Department of the U.S. Treasury.

New York Private Bank & Trust Corporation (“NYPB&T”) prohibits excessive or luxury expenditures on (1) entertainment or events expensed to the organization, (2) office or facility renovations, (3) aviation or other transportation services, and (4) other similar items, activities or events that are not reasonable expenditures for staff development, reasonable performance incentives or other similar measures conducted in the normal course of business operations.

This Policy is applicable to NYPB&T, Emigrant Bancorp, Inc. (“Bancorp”), Emigrant Bank, Emigrant Savings Bank-Manhattan, Emigrant Savings Bank-Bronx/Westchester, Emigrant Savings Bank-Brooklyn/Queens, Emigrant Savings Bank-Long Island, Emigrant Mercantile Bank and New York Private Bank & Trust, FSB, and the respective subsidiaries of said entities.
    Entertainment or Events
  1. All entertainment expenses should serve NYPB&T purposes. Occasional events such as hosting customers or prospects on trips, meals, or sporting or other events to advance the customer/prospect relationships can be a necessary part of NYPB&T’s business marketing efforts and is not deemed a luxury or excess expenditure or a violation of this Policy unless the expense incurred is excessive in relation to the business rationale. All such expenses should be documented through the normal accounts payable process and detailed as to the benefit derived by NYPB&T. Employee recognition/holiday parties should be local in geographic nature, and should include costs for such items as service awards and similar items, as appropriate. Entertainment or event expenses exceeding $1,000 per event should be reviewed in advance by the employee’s Division or Subsidiary head. Division or Subsidiary head and Executive Management entertainment expenses exceeding $5,000 per event should be reviewed in advance by the Principal Executive Officer (PEO) of NYPB&T or other officer designated by him for review of such items (“Designated Officer”). Event expenses exceeding $10,000 per event require the approval of the Audit and Examining Committee of the Board of Bancorp.
  2. Officers and employees may attend conferences that are appropriate educational opportunities. These conferences should be related to the financial services industry or to maintenance of professional qualifications requirements, and thus have a direct correlation to the employee’s job.


    3. Office or Facility Renovations
  3. Renovations of facilities and office spaces should be related to the approved project and current business plan, and tracked within the capital expenditure policy of NYPB&T. Exceptions to this are permitted if management must deal with an emergency situation, such as damage due to fire, storm or other act of nature, and the expenditure is necessary to render a facility operational for office or customer use. Renovations should not be or have the appearance of being extraordinary or excessive. Renovation or construction projects having an estimated cost in excess of $100,000 shall be reviewed and approved in advance by the PEO or his Designated Officer and the Audit and Examining Committee of the Board of Directors of Bancorp.


    4. Aviation or Other Transportation Services
  4. Transportation for NYPB&T officers and staff to outside locations, including NYPB&T locations, business meetings, conferences, and business development purposes, should be conducted in the most cost appropriate way for NYPB&T. Modes of transportation to be used may consist of vehicle, commercial air or rail service. The selection of transportation services shall factor in cost, efficiency and timeliness of travel. The Division or Subsidiary head should approve such expenses. Private air services are not allowed without the approval of the PEO of NYPB&T.


    5. Other Activities or Events
  5. All proposed activities or events organized by NYPB&T must serve one or more legitimate business purposes. Each proposed event with a total cost exceeding $1,000 must be supported by a written business case identifying a specific business purpose, and must be approved in advance by the Division or Subsidiary head. Such expenses proposed to be incurred by a Division or Subsidiary head or member of Executive Management should be reviewed in advance by the PEO or his Designated Officer.


    6. Oversight
  6. The Audit and Examining Committee of the Board of Directs of Bancorp shall be responsible for maintaining organization-wide standards reasonably designed to eliminate excessive and luxury expenditures on entertainment and NYPB&T-sponsored events, office or facility renovations, aviation or other transportation services or other activities or events, other than reasonable expenditures for staff development, reasonable performance incentives, or other similar measures conducted in the normal course of NYPB&T’s business operations, by assuring that all such events serve legitimate business purposes and are cost-justified. All matters covered by this Policy are subject to examination by Internal Audit of Bancorp and/or Emigrant Bank.

    7. Term
  7. This Policy shall remain in effect throughout the period in which NYPB&T is a TARP recipient. A copy of this Policy, and any material amendments to this Policy, shall be filed with the Department of the Treasury and the organization’s primary regulatory agency, and posted on the organization’s website, in accordance with applicable government regulations and guidance.

    8. Violations
  8. Any violation of this Policy must be promptly reported to the Chairman of the Audit and Examining Committee of the Board of Bancorp. Violation of this Policy may result in disciplinary action, as determined by the Audit and Examining Committee against those accountable for policy adherence, up to and including termination of employment.

    9. Certification
  9. The PEO and PFO of NYPB&T shall certify to the Board, to the Department of the Treasury and to the organization’s primary regulatory agency at least annually, in accordance with applicable government regulations and guidance, that the organization and its employees have complied with this Policy during the applicable period, and that approvals of all expenditures requiring approval of the Board or a Committee thereof, the PEO, a Senior Executive Officer (SEO) or any executive of substantially similar level of responsibility pursuant to this Policy have been properly obtained with respect to each such expenditure. Appropriate documentation and records to substantiate such certifications shall be preserved for six (6) years after the date of each such certification in accordance with applicable government regulations and guidance.


    10. Relation to Other Corporate Policies
  10. This Policy shall supplement and be read in conjunction with Emigrant Bank’s Corporate Policy #4 (Business Travel and Entertainment), provided, however, that in the event of a conflict of terms, the provisions of this Policy shall govern.