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REGULATORY REQUIREMENTS
12 Months Ended
Dec. 31, 2011
REGULATORY REQUIREMENTS  
REGULATORY REQUIREMENTS

25.         REGULATORY REQUIREMENTS

              Risk-Based Capital—The Bank is a member bank of the Federal Reserve System and the FRB is the Bank's primary regulator. The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory actions by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. Under capital adequacy guidelines, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

              As of December 31, 2011 and 2010, the Bank is categorized as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain specific total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table below. There are no conditions or events since December 31, 2011 which management believes have changed the category of the Bank.

              The actual and required capital amounts and ratios at December 31, 2011 and 2010 are presented as follows:

 
  Actual   For Capital Adequacy Purposes   To Be Well
Capitalized
Under Prompt Corrective
Action Provisions
 
 
  Amount   Ratio   Amount   Ratio   Amount   Ratio  
 
  (Dollars in thousands)
 

As of December 31, 2011:

                                     

Total Capital (to Risk-Weighted Assets)

                                     

Consolidated Company

  $ 2,296,274     16.4 % $ 1,123,413     8.0 %   N/A     N/A  

East West Bank

  $ 2,283,178     16.3 % $ 1,123,228     8.0 % $ 1,404,035     10.0 %

Tier I Capital (to Risk-Weighted Assets)

                                     

Consolidated Company

  $ 2,074,963     14.8 % $ 561,706     4.0 %   N/A     N/A  

East West Bank

  $ 2,061,896     14.7 % $ 561,614     4.0 % $ 842,421     6.0 %

Tier I Capital (to Average Assets)

                                     

Consolidated Company

  $ 2,074,963     9.7 % $ 859,098     4.0 %   N/A     N/A  

East West Bank

  $ 2,061,896     9.6 % $ 858,765     4.0 % $ 1,073,457     5.0 %

As of December 31, 2010:

                                     

Total Capital (to Risk-Weighted Assets)

                                     

Consolidated Company

  $ 2,075,480     17.5 % $ 950,680     8.0 %   N/A     N/A  

East West Bank

  $ 2,068,922     17.4 % $ 950,301     8.0 % $ 1,187,877     10.0 %

Tier I Capital (to Risk-Weighted Assets)

                                     

Consolidated Company

  $ 1,865,602     15.7 % $ 475,340     4.0 %   N/A     N/A  

East West Bank

  $ 1,859,102     15.7 % $ 475,151     4.0 % $ 712,726     6.0 %

Tier I Capital (to Average Assets)

                                     

Consolidated Company

  $ 1,865,602     9.3 % $ 801,850     4.0 %   N/A     N/A  

East West Bank

  $ 1,859,102     9.3 % $ 800,863     4.0 % $ 1,001,079     5.0 %

              Under the Dodd-Frank Act, bank holding companies with more than $15 billion in total consolidated assets will no longer be able to include trust preferred securities as Tier I regulatory capital as of the end of the phase-out period in 2016. As of December 31, 2011 and 2010, trust preferred securities comprised 6.4% and 8.3%, respectively, of the Company's Tier I capital.

              Reserve Requirement—The Bank is required to maintain a percentage of its deposits as reserves at the Federal Reserve Bank. The daily average reserve requirement was approximately $186.5 million and $80.9 million for December 31, 2011 and 2010, respectively.