DISTRIBUTION OF EARNINGS OF FIRST BANK

12 Months Ended

Dec. 31, 2013

Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract]

DISTRIBUTION OF EARNINGS OF FIRST BANK

DISTRIBUTION OF EARNINGS OF FIRST BANK

First Bank is restricted by various state and federal regulations as to the amount of dividends that are available for payment to the Company. Under the most restrictive of these requirements, the payment of dividends is limited in any calendar year to the net profit of the current year combined with the retained net profits of the preceding two years. Permission must be obtained for dividends exceeding these amounts. Under its agreement with the FRB, First Bank has agreed, among other things, not to declare or pay any dividends or make certain other payments without the prior consent of the FRB, as further described in Note 14 to the consolidated financial statements.

On January 31, 2014, the Company received regulatory approval from the FRB, which granted First Bank the authority to pay a dividend to the Company and authority to the Company to utilize such funds, for the sole purpose of paying the accumulated deferred interest payments on the Company's outstanding junior subordinated debentures issued in connection with the Company's trust preferred securities. In February 2014, First Bank paid a dividend of $70.0 million to the Company, as further described in Note 25 to the consolidated financial statements.