Shareholders' Equity

12 Months Ended

Dec. 31, 2011

Shareholders' Equity [Abstract]

Shareholders' Equity

14. Shareholders' Equity

In 1998, the Board approved the Company's first stock repurchase program. This program was extended and expanded in both 2004 and 2006. Most recently, on November 12, 2008, the Board of Directors approved increasing the funds available for the Company's Common Stock Repurchase Program. The Board's resolution authorized up to $20 million in repurchases over the four-year period ending October 31, 2012.

Repurchases under the program will continue to be made on the open market or through private transactions. The repurchase program also requires that no purchases may be made if the Bank would not remain “well-capitalized” after the repurchase.

Dividends from the Bank constitute the principal source of cash to the Company. The Company is a legal entity separate and distinct from the Bank. Under regulations controlling California state chartered banks, the Bank is, to some extent, limited in the amount of dividends that can be paid to the Company without prior approval of the California DFI. These regulations require approval if total dividends declared by a state chartered bank in any calendar year exceed the bank's net profits for that year combined with its retained net profits for the preceding two calendar years. As of December 31, 2011, the Bank could declare dividends of $33,457,000 without approval of the California DFI.

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, and possibly discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company's and the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company and the Bank's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company and the Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios set forth in the following table of Total and Tier 1 capital to risk-weighted assets (as defined in the regulations), and of Tier 1 capital to average assets (as defined in the regulations). Management believes, as of December 31, 2011, that the Company and the Bank meet all capital adequacy requirements to which they are subject.

In addition, the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since that notification that management believes have changed the Bank's category.

The Federal Government passed the Emergency Economic Stabilization Act of 2008, which, among other measures, established the TARP capital purchase program, pursuant to which it provides access to Tier 1 capital through a standardized program to acquire preferred stock (accompanied by warrants) from eligible financial institutions. Based upon the Company's strong capital position and continued earnings strength, the Company elected not to participate in the capital purchase program.

											Well Capitalized
						Regulatory Capital					Under Prompt
(in thousands)	Actual					Requirements					Corrective Action
December 31, 2011	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Bank Capital to Risk Weighted Assets	$	212,590		14.85	%	$	114,508		8.0	%	$	143,135		10.0	%
Total Consolidated Capital to Risk Weighted Assets	$	212,761		14.86	%	$	114,520		8.0	%		N/A		N/A
Tier 1 Bank Capital to Risk Weighted Assets	$	194,509		13.59	%	$	57,254		4.0	%	$	85,881		6.0	%
Tier 1 Consolidated Capital to Risk Weighted Assets	$	194,679		13.60	%	$	57,260		4.0	%		N/A		N/A
Tier 1 Bank Capital to Average Assets	$	194,509		10.22	%	$	76,146		4.0	%	$	95,182		5.0	%
Tier 1 Consolidated Capital to Average Assets	$	194,679		10.22	%	$	76,204		4.0	%		N/A		N/A

											Well Capitalized
						Regulatory Capital					Under Prompt
(in thousands)	Actual					Requirements					Corrective Action
December 31, 2010	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Bank Capital to Risk Weighted Assets	$	200,045		13.84	%	$	115,673		8.0	%	$	144,591		10.0	%
Total Consolidated Capital to Risk Weighted Assets	$	199,879		13.82	%	$	115,677		8.0	%		N/A		N/A
Tier 1 Bank Capital to Risk Weighted Assets	$	181,795		12.57	%	$	57,836		4.0	%	$	86,755		6.0	%
Tier 1 Consolidated Capital to Risk Weighted Assets	$	181,628		12.56	%	$	57,838		4.0	%		N/A		N/A
Tier 1 Bank Capital to Average Assets	$	181,795		10.00	%	$	72,728		4.0	%	$	90,910		5.0	%
Tier 1 Consolidated Capital to Average Assets	$	181,628		9.98	%	$	72,787		4.0	%		N/A		N/A