§ 112. Dividends; payable from net profits; restrictions. 1. The
directors of a bank or trust company may annually, semi-annually or
quarterly, but not more frequently unless authorized by the
superintendent by regulation or otherwise, declare such dividends as
they deem judicious to be paid from net profits. No dividend shall be
declared, credited or paid so long as there is any impairment of capital
stock. No bank or trust company having outstanding preferred stock
shall, except as otherwise authorized by the superintendent, declare
dividends upon common stock for any period other than a period for which
dividends are declared upon preferred stock.

2. The approval of the superintendent shall be required if the total
of all dividends declared by a bank or trust company in any calendar
year shall exceed the total of its net profits for that year combined
with its retained net profits of the preceding two years, less any
required transfer to surplus or a fund for the retirement of any
preferred stock.

3. For the purposes of this section, the term "net profits" shall mean
the remainder of all earnings from current operations plus actual
recoveries on loans and investments and other assets, after deducting
from the total thereof all current operating expenses, actual losses,
accrued dividends on preferred stock, if any, and all federal and state
taxes.