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SHAREHOLDERS' EQUITY
12 Months Ended
Dec. 31, 2014
Regulatory Capital Requirements [Abstract]  
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY
Cash dividends declared and paid were $0.96, $0.91 and $1.11 per share for the years ended December 31, 2014, 2013 and 2012, respectively.  Future dividends will depend on our earnings, financial condition and other factors which the board of directors considers to be relevant.  Our dividend policy requires that any cash dividend payments made may not exceed consolidated earnings for that year.
We 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 additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our financial statements.  Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices.  Our capital amounts and classification are also subject to qualitative judgments by the regulators regarding components, risk weightings, and other factors.
Quantitative measures established by regulation to ensure capital adequacy require us to maintain minimum amounts and ratios (set forth in the table below) of Total and Tier 1 Capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 Capital (as defined) to average assets (as defined).  At December 31, 2014, we exceeded all regulatory minimum capital requirements.
As of December 31, 2014, the most recent notification from the FDIC categorized us as well capitalized under the regulatory framework for prompt corrective action.  To be categorized as well capitalized we must maintain minimum Total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table.  There are no conditions or events since that notification that management believes have changed our category.
 
 
Actual
 
For Capital
Adequacy Purposes
 
To Be Well Capitalized
Under Prompt
Corrective Actions
Provisions
 
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
As of December 31, 2014:
 
(dollars in thousands)
Total Capital (to Risk Weighted Assets)
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
$
412,893

 
16.69
%
 
$
197,863

 
8.00
%
 
N/A

 
N/A

Bank Only
 
$
398,104

 
16.13
%
 
$
197,503

 
8.00
%
 
$
246,878

 
10.00
%
Tier 1 Capital (to Risk Weighted Assets)
 
 

 
 

 
 

 
 

 
 

 
 

Consolidated
 
$
398,798

 
16.12
%
 
$
98,932

 
4.00
%
 
N/A

 
N/A

Bank Only
 
$
384,009

 
15.55
%
 
$
98,751

 
4.00
%
 
$
148,127

 
6.00
%
Tier 1 Capital (to Average Assets) (1)
 
 

 
 

 
 

 
 

 
 

 
 

Consolidated
 
$
398,798

 
11.35
%
 
$
140,492

 
4.00
%
 
N/A

 
N/A

Bank Only
 
$
384,009

 
10.95
%
 
$
140,329

 
4.00
%
 
$
175,412

 
5.00
%
As of December 31, 2013:
 
 
 
 

 
 

 
 

 
 

 
 

Total Capital (to Risk Weighted Assets)
 
 

 
 

 
 

 
 

 
 

 
 

Consolidated
 
$
335,944

 
21.71
%
 
$
123,776

 
8.00
%
 
N/A

 
N/A

Bank Only
 
$
332,069

 
21.46
%
 
$
123,775

 
8.00
%
 
$
154,719

 
10.00
%
Tier 1 Capital (to Risk Weighted Assets)
 
 

 
 

 
 

 
 

 
 

 
 

Consolidated
 
$
316,754

 
20.47
%
 
$
61,888

 
4.00
%
 
N/A

 
N/A

Bank Only
 
$
312,879

 
20.22
%
 
$
61,888

 
4.00
%
 
$
92,831

 
6.00
%
Tier 1 Capital (to Average Assets) (1)
 
 

 
 

 
 

 
 

 
 

 
 

Consolidated
 
$
316,754

 
9.07
%
 
$
139,665

 
4.00
%
 
N/A

 
N/A

Bank Only
 
$
312,879

 
8.97
%
 
$
139,559

 
4.00
%
 
$
174,449

 
5.00
%
(1) Refers to quarterly average assets as calculated in accordance with policies established by bank regulatory agencies.

Our payment of dividends is limited under regulation.  The amount that can be paid in any calendar year without prior approval of our regulatory agencies cannot exceed the lesser of net profits (as defined) for that year plus the net profits for the preceding two calendar years, or retained earnings.