Regulatory Matters

12 Months Ended

Dec. 31, 2011

Deposits and Regulatory Matters [Abstract]

REGULATORY MATTERS

19. REGULATORY MATTERS

The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking regulatory agencies. Failure to meet minimum capital requirements can initiate certain mandatory — and possibly additional 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 Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgment by the regulators about components, risk-weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

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 table below) of total and Tier 1 capital (primarily common stock and retained earnings, less goodwill) to risk-weighted assets, and of Tier 1 capital to average assets. Management believes that, as of December 31, 2011 and 2010, the Company and the Bank meet all capital adequacy requirements to which they are subject.

As of December 31, 2011 and 2010, the most recent notifications from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage (tangible Tier 1 capital divided by average total assets) ratios as set forth in the table below must be maintained. There are no conditions or events since said notification that management believes have changed the Bank’s category.

As of December 31, 2011 and 2010, the Company had $115.1 million of trust-preferred securities, which were included in Tier 1 capital for regulatory purposes. The actual amount and capital ratios of the Company and the Bank at December 31 are as follows (Dollar amounts in thousands):

	Actual					For Capital Adequacy Purposes						To Be Well Capitalized under Prompt Corrective Action Provisions
	Amount (000s)		Ratio			Amount (000s)			Ratio			Amount (000s)			Ratio
As of December 31, 2011:
Total Capital (to Risk-Weighted Assets)
Company	$	774,809		19.05	%	$	325,379	>		8.00	%					N/A
Bank	$	756,702		18.63	%	$	324,939	>		8.00	%	$	406,174	>		10.00	%
Tier I Capital (to Risk- Weighted Assets)
Company	$	723,329		17.79	%	$	162,637	>		4.00	%					N/A
Bank	$	705,273		17.36	%	$	162,505	>		4.00	%	$	243,758	>		6.00	%
Tier I Capital (to Average-Assets)
Company	$	723,329		11.19	%	$	258,563	>		4.00	%					N/A
Bank	$	705,273		10.92	%	$	258,342	>		4.00	%	$	322,927	>		5.00	%
As of December 31, 2010:
Total Capital (to Risk-Weighted Assets)
Company	$	741,073		18.00	%	$	329,366	>		8.00	%					N/A
Bank	$	732,896		17.82	%	$	329,022	>		8.00	%	$	411,277	>		10.00	%
Tier I Capital (to Risk-Weighted Assets)
Company	$	683,811		16.61	%	$	164,675	>		4.00	%					N/A
Bank	$	680,680		16.55	%	$	164,515	>		4.00	%	$	246,772	>		6.00	%
Tier I Capital (to Average-Assets)
Company	$	683,811		10.58	%	$	258,530	>		4.00	%					N/A
Bank	$	680,680		10.54	%	$	258,323	>		4.00	%	$	322,903	>		5.00	%

In addition, California Banking Law limits the amount of dividends a bank can pay without obtaining prior approval from bank regulators. Under this law, the Bank could, as of December 31, 2011, declare and pay additional dividends of approximately $80.4 million.