Regulatory Matters

12 Months Ended

Dec. 31, 2014

Banking and Thrift [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, 2014 and 2013, the Company and the Bank meet all capital adequacy requirements to which they are subject.

As of December 31, 2014 and 2013, 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, 2014 and 2013, the Company had $25.0 million of trust-preferred securities, which were included in Tier 1 capital for regulatory purposes, respectively. The following table summarizes regulatory capital amounts and ratios for the Company and the Bank as of December 31, 2014, and 2013:

												To Be Well Capitalized
						For Capital						under Prompt Corrective
	Actual					Adequacy Purposes						Action Provisions
	Amount		Ratio			Amount			Ratio			Amount			Ratio
	(Dollars in thousands)
As of December 31, 2014:
Total Capital (to Risk- Weighted Assets)
Company	$	853,147		18.24	%	$	374,144	³		8.00	%					N/A
Bank	$	845,951		18.11	%	$	373,758	³		8.00	%	$	467,197	³		10.00	%
Tier I Capital (to Risk- Weighted Assets)
Company	$	794,576		16.99	%	$	187,072	³		4.00	%					N/A
Bank	$	787,439		16.85	%	$	186,879	³		4.00	%	$	280,318	³		6.00	%
Tier I Capital (to Average- Assets)
Company	$	794,576		10.86	%	$	292,615	³		4.00	%					N/A
Bank	$	787,439		10.77	%	$	292,392	³		4.00	%	$	365,490	³		5.00	%
As of December 31, 2013:
Total Capital (to Risk- Weighted Assets)
Company	$	801,719		19.09	%	$	336,008	³		8.00	%					N/A
Bank	$	794,239		18.93	%	$	335,740	³		8.00	%	$	419,675	³		10.00	%
Tier I Capital (to Risk- Weighted Assets)
Company	$	748,825		17.83	%	$	168,004	³		4.00	%					N/A
Bank	$	741,386		17.67	%	$	167,870	³		4.00	%	$	251,805	³		6.00	%
Tier I Capital (to Average- Assets)
Company	$	748,825		11.30	%	$	265,035	³		4.00	%					N/A
Bank	$	741,386		11.20	%	$	264,893	³		4.00	%	$	331,117	³		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, 2014, declare and pay additional dividends of approximately $98 million.