Pennsylvania Statutes Title 7 P.S. Banks and Banking § 6020-132. Reserves

(a) Every association shall maintain general reserves which shall be used solely for the purpose of absorbing losses. Such reserves shall consist of all or any of the following:

(b) Whenever the general reserves plus capital and capital surplus of an association are not equal to at least eight percent of the savings accounts and whenever the net worth of an association is not equal to at least ten percent of such savings accounts it shall credit to its general reserves each year an amount equal to not less than five percent, and as much more as it may deem desirable, of its net profits for the year.

(c) Any net income remaining after reserve requirements are met and earnings distributions have been made may be retained in a surplus account.