10-Q

UNITED STATES

securities and exchange commission

Washington, D.C. 20549

form 10-q

(Mark One)

[ X ]      quarterly report pursuant to section 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended                                September 30, 2013

OR

[     ]     transition report pursuant to section 13 or 15 (d) OF The SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 0-18630

CATHAY GENERAL BANCORP

(Exact name of registrant as specified in its charter)

Delaware	95-4274680
(State of other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
777 North Broadway, Los Angeles, California	90012
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (213) 625-4700

 (Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.             Yes ☑          No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).           Yes ☑          No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer    ☑		Accelerated filer ☐
Non-accelerated filer      ☐	(Do not check if a smaller reporting company)	Smaller reporting company☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).                                Yes ☐          No ☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common stock, $.01 par value, 79,060,396 shares outstanding as of October 31, 2013.

1

CATHAY GENERAL BANCORP AND SUBSIDIARies

3rd quarter 2013 REPORT ON FORM 10-Q

table of contents

PART I – FINANCIAL INFORMATION			5
	Item 1.	FINANCIAL STATEMENTS (Unaudited).	5
		NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited).	8
	Item 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.	35
	Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.	64
	Item 4.	CONTROLS AND PROCEDURES.	65
PART II - OTHER INFORMATION			65
	Item 1.	LEGAL PROCEEDINGS.	65
	Item 1A	RISK FACTORS.	65
	Item 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.	66
	Item 3.	DEFAULTS UPON SENIOR SECURITIES.	66
	Item 4.	MINE SAFETY DISCLOSURES.	66
	Item 5.	OTHER INFORMATION.	66
	Item 6.	EXHIBITS.	67
	SIGNATURES		68

2

Forward-Looking Statements

In this Quarterly Report on Form 10-Q, the term “Bancorp” refers to Cathay General Bancorp and the term “Bank” refers to Cathay Bank. The terms “Company,” “we,” “us,” and “our” refer to Bancorp and the Bank collectively.

The statements in this report include forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995 regarding management’s beliefs, projections, and assumptions concerning future results and events. We intend such forward-looking statements to be covered by the safe harbor provision for forward-looking statements in these provisions. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including statements about anticipated future operating and financial performance, financial position and liquidity, growth opportunities and growth rates, growth plans, acquisition and divestiture opportunities, business prospects, strategic alternatives, business strategies, financial expectations, regulatory and competitive outlook, investment and expenditure plans, financing needs and availability, and other similar forecasts and statements of expectation and statements of assumptions underlying any of the foregoing. Words such as “aims,” “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “hopes,” “intends,” “may,” “optimistic,” “plans,” “potential,” “possible,” “predicts,” “projects,” “seeks,” “shall,” “should,” “will,” and variations of these words and similar expressions are intended to identify these forward-looking statements. Forward-looking statements by us are based on estimates, beliefs, projections, and assumptions of management and are not guarantees of future performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. Such risks and uncertainties and other factors include, but are not limited to, adverse developments or conditions related to or arising from:

● U.S. and international business and economic conditions;

● credit risks of lending activities and deterioration in asset or credit quality;

● potential supervisory action by bank supervisory authorities;

● increased costs of compliance and other risks associated with changes in regulation and the current regulatory environment, including the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), and the potential for substantial changes in the legal, regulatory, and enforcement framework and oversight applicable to financial institutions in reaction to recent adverse financial market events, including changes pursuant to the Dodd-Frank Act;

● potential goodwill impairment;

● liquidity risk;

● fluctuations in interest rates;

● inflation and deflation;

● risks associated with acquisitions and the expansion of our business into new markets;

● real estate market conditions and the value of real estate collateral;

● environmental liabilities;

● our ability to compete with larger competitors;

3

● the possibility of higher capital requirements, including implementation of the Basel III capital standards of the Basel Committee;

● our ability to retain key personnel;

● successful management of reputational risk;

● natural disasters and geopolitical events;

● general economic or business conditions in California, Asia, and other regions where the Bank has operations;

● failures, interruptions, or security breaches of our information systems;

● our ability to adapt our systems to technological changes, including successfully implementing our core system conversion;

● adverse results in legal proceedings;

● changes in accounting standards or tax laws and regulations;

● market disruption and volatility;

● restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure;

● successfully raising additional capital, if needed, and the resulting dilution of interests of holders of our common stock; and

● the soundness of other financial institutions.

These and other factors are further described in Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2012 (Item 1A in particular), other reports and registration statements filed with the Securities and Exchange Commission (“SEC”), and other filings it makes with the SEC from time to time. Actual results in any future period may also vary from the past results discussed in this report. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements, which speak to the date of this report. We have no intention and undertake no obligation to update any forward-looking statement or to publicly announce any revision of any forward-looking statement to reflect future developments or events, except as required by law.

Bancorp’s filings with the SEC are available at the website maintained by the SEC at http://www.sec.gov, or by request directed to Cathay General Bancorp, 9650 Flair Drive, El Monte, California 91731, Attention: Investor Relations (626) 279-3286.

4

PART I – FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS (Unaudited)

CATHAY GENERAL BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and per share data)	September 30, 2013			December 31, 2012
Assets
Cash and due from banks	$	201,815		$	144,909
Short-term investments and interest bearing deposits		389,024			411,983
Securities held-to-maturity (market value of $823,906 in 2012)		-			773,768
Securities available-for-sale (amortized cost of $1,779,859 in 2013 and $1,290,676 in 2012)		1,743,309			1,291,480
Trading securities		4,855			4,703
Loans		7,832,013			7,429,147
Less: Allowance for loan losses		(181,452	)		(183,322	)
Unamortized deferred loan fees, net		(12,933	)		(10,238	)
Loans, net		7,637,628			7,235,587
Federal Home Loan Bank stock		28,683			41,272
Other real estate owned, net		49,777			46,384
Affordable housing investments, net		86,381			85,037
Premises and equipment, net		102,379			102,613
Customers’ liability on acceptances		42,533			41,271
Accrued interest receivable		23,367			26,015
Goodwill		316,340			316,340
Other intangible assets, net		2,765			6,132
Other assets		192,590			166,595
Total assets	$	10,821,446		$	10,694,089
Liabilities and Stockholders’ Equity
Deposits
Non-interest-bearing demand deposits	$	1,385,430		$	1,269,455
Interest-bearing deposits:
NOW deposits		653,903			593,133
Money market deposits		1,303,121			1,186,771
Savings deposits		498,246			473,805
Time deposits under $100,000		889,828			644,191
Time deposits of $100,000 or more		3,188,015			3,215,870
Total deposits		7,918,543			7,383,225
Securities sold under agreements to repurchase		800,000			1,250,000
Advances from the Federal Home Loan Bank		376,200			146,200
Other borrowings for affordable housing investments		19,108			18,713
Long-term debt		171,136			171,136
Acceptances outstanding		42,533			41,271
Other liabilities		58,624			54,040
Total liabilities		9,386,144			9,064,585
Commitments and contingencies		-			-
Stockholders’ Equity
Preferred stock, 10,000,000 shares authorized, none issued and outstanding at September 30, 2013, and 258,000 issued and outstanding at December 31, 2012		-			254,580
Common stock, $0.01 par value, 100,000,000 shares authorized, 83,113,308 issued and 78,905,743 outstanding at September 30, 2013, and 82,985,853 issued and 78,778,288 outstanding at December 31, 2012		831			830
Additional paid-in-capital		771,759			768,925
Accumulated other comprehensive (loss)/income, net		(21,183	)		465
Retained earnings		801,184			721,993
Treasury stock, at cost (4,207,565 shares at September 30, 2013, and at December 31, 2012)		(125,736	)		(125,736	)
Total Cathay General Bancorp stockholders' equity		1,426,855			1,621,057
Noncontrolling interest		8,447			8,447
Total equity		1,435,302			1,629,504
Total liabilities and equity	$	10,821,446		$	10,694,089

See accompanying notes to unaudited condensed consolidated financial statements.

5

CATHAY GENERAL BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS)

(Unaudited)

	Three months ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
	(In thousands, except share and per share data)
Interest and Dividend Income
Loans receivable, including loan fees	$	90,838		$	90,024		$	267,557		$	269,486
Investment securities- taxable		10,868			15,157			34,986			50,046
Investment securities- nontaxable		-			1,036			995			3,127
Federal Home Loan Bank stock		449			57			1,041			190
Federal funds sold and securities purchased under agreements to resell		-			2			-			18
Deposits with banks		307			471			796			1,596
Total interest and dividend income		102,462			106,747			305,375			324,463
Interest Expense
Time deposits of $100,000 or more		6,887			7,970			20,466			26,152
Other deposits		3,485			3,261			9,244			11,045
Securities sold under agreements to repurchase		8,402			13,734			29,778			42,987
Advances from Federal Home Loan Bank		150			74			375			196
Long-term debt		930			1,291			2,778			3,895
Total interest expense		19,854			26,330			62,641			84,275
Net interest income before provision for credit losses		82,608			80,417			242,734			240,188
Provision/(credit) for loan losses		(3,000	)		-			(3,000	)		(9,000	)
Net interest income after provision/(credit) for loan losses		85,608			80,417			245,734			249,188
Non-Interest Income
Securities gains, net		8,688			8,652			27,157			13,241
Letters of credit commissions		1,698			1,728			4,608			4,873
Depository service fees		1,371			1,342			4,330			4,114
Other operating income		4,963			3,900			15,867			12,077
Total non-interest income		16,720			15,622			51,962			34,305
Non-interest Expense
Salaries and employee benefits		22,751			18,451			67,192			58,426
Occupancy expense		3,812			3,853			10,966			10,926
Computer and equipment expense		2,446			2,340			7,488			7,194
Professional services expense		5,813			5,273			18,484			15,224
FDIC and State assessments		1,712			2,094			5,431			6,554
Marketing expense		1,097			519			2,703			3,408
Other real estate owned expense		527			1,794			886			13,548
Operations of affordable housing investments, net		1,234			476			4,952			4,387
Amortization of core deposit intangibles		1,363			1,404			4,097			4,265
Costs associated with debt redemption		6,861			3,450			22,557			6,200
Other operating expense		3,054			8,190			8,758			12,925
Total non-interest expense		50,670			47,844			153,514			143,057
Income before income tax expense		51,658			48,195			144,182			140,436
Income tax expense		19,029			17,686			52,489			50,852
Net income		32,629			30,509			91,693			89,584
Less: net income attributable to noncontrolling interest		151			151			452			452
Net income attributable to Cathay General Bancorp		32,478			30,358			91,241			89,132
Dividends on preferred stock and noncash charge from repayment		(2,434	)		(4,123	)		(9,685	)		(12,361	)
Net income attributable to common stockholders		30,044			26,235			81,556			76,771
Other comprehensive (loss)/income, net of tax
Unrealized holding (loss)/gain arising during the period		(1,074	)		10,650			(5,908	)		18,353
Less: reclassification adjustments included in net income		5,036			5,015			15,740			7,674
Total other comprehensive (loss)/gain, net of tax		(6,110	)		5,635			(21,648	)		10,679
Total comprehensive income	$	26,368		$	35,993		$	69,593		$	99,811
Net income per common share:
Basic	$	0.38		$	0.33		$	1.03		$	0.98
Diluted	$	0.38		$	0.33		$	1.03		$	0.98
Cash dividends paid per common share	$	0.01		$	0.01		$	0.03		$	0.03
Average common shares outstanding
Basic		78,894,262			78,729,272			78,853,333			78,706,150
Diluted		79,114,122			78,731,180			78,944,152			78,711,235

See accompanying notes to unaudited condensed consolidated financial statements.

6

CATHAY GENERAL BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine months ended September 30
	2013			2012
	(In thousands)
Cash Flows from Operating Activities
Net income	$	91,693		$	89,584
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Credit for loan losses		(3,000	)		(9,000	)
Provision/(credit) for losses on other real estate owned		(675	)		10,362
Deferred tax (asset)/liability		(12,325	)		5,901
Depreciation		4,899			4,435
Net losses on sale and transfer of other real estate owned		(843	)		(700	)
Net gains on sale of loans		(864	)		(618	)
Proceeds from sales of loans		41,219			58,505
Originations of loans held-for-sale		(40,356	)		(57,861	)
Net change in trading securities		(152	)		(79	)
Write-downs on venture capital investments		295			226
Gain on sales and calls of securities		(27,157	)		(13,241	)
Amortization/accretion of security premiums/discounts, net		3,439			3,800
Amortization of other intangible assets		4,192			4,368
Excess tax short-fall from share-based payment arrangements		143			679
Stock based compensation and stock issued to officers as compensation		2,775			2,251
Net change in accrued interest receivable and other assets		24,875			31,746
Net change in other liabilities		4,195			(3,999	)
Net cash provided by operating activities		92,353			126,359
Cash Flows from Investing Activities
Decrease/(increase) in short-term investments		22,959			(131,500	)
Purchase of investment securities available-for-sale		(1,026,659	)		(971,983	)
Proceeds from sale of investment securities available-for-sale		903,915			429,923
Proceeds from repayments, maturities and calls of investment securities available-for-sale		367,026			572,957
Proceeds from repayments, maturities and calls of investment securities held-to-maturity		50,973			301,981
Redemptions of Federal Home Loan Bank stock		12,589			7,496
Net increase in loans		(413,405	)		(224,244	)
Purchase of premises and equipment		(4,734	)		(2,312	)
Proceeds from sale of other real estate owned		9,926			33,167
Net increase in investment in affordable housing		(6,167	)		(2,639	)
Net cash (used in)/provided by investing activities		(83,577	)		12,846
Cash Flows from Financing Activities
Net increase in deposits		534,306			124,090
Net decrease in federal funds purchased and securities sold under agreements to repurchase		(450,000	)		(50,000	)
Advances from Federal Home Loan Bank		1,742,396			406,200
Repayment of Federal Home Loan Bank borrowings		(1,512,000	)		(610,000	)
Cash dividends paid		(8,631	)		(12,036	)
Redemption of series B preferred stock		(258,000	)		-
Repayment of other borrowings		-			(880	)
Proceeds from shares issued under Dividend Reinvestment Plan		202			211
Proceeds from exercise of stock options		-			647
Excess tax short-fall from share-based payment arrangements		(143	)		(679	)
Net cash provided by/(used in) in financing activities		48,130			(142,447	)
(Decrease)/increase in cash and cash equivalents		56,906			(3,242	)
Cash and cash equivalents, beginning of the period		144,909			117,888
Cash and cash equivalents, end of the period	$	201,815		$	114,646
Supplemental disclosure of cash flow information
Cash paid during the period:
Interest	$	65,372		$	87,383
Income taxes paid	$	55,537		$	24,908
Non-cash investing and financing activities:
Net change in unrealized holding (loss)/gain on securities available-for-sale, net of tax	$	(21,648	)	$	10,679
Transfers investment securities to available-for-sale from held-to-maturity	$	722,466		$	-
Transfers to other real estate owned from loans held for investment	$	11,877		$	13,216
Loans transferred from held for investment to held for sale, net	$	-		$	234
Loans to facilitate the sale of other real estate owned	$	75		$	1,785
Transfer of securities sold but not yet settled to other assets	$	12,469		$	-

See accompanying notes to unaudited condensed consolidated financial statements.

7

CATHAY GENERAL BANCORP AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1. Business

Cathay General Bancorp (“Bancorp”) is the holding company for Cathay Bank (the “Bank” and, together, the “Company”), six limited partnerships investing in affordable housing investments in which the Bank is the sole limited partner, and GBC Venture Capital, Inc. The Bancorp also owns 100% of the common stock of five statutory business trusts created for the purpose of issuing capital securities. The Bank was founded in 1962 and offers a wide range of financial services. As of September 30, 2013, the Bank operated twenty branches in Southern California, eleven branches in Northern California, eight branches in New York State, three branches in Illinois, three branches in Washington State, two branches in Texas, one branch in Massachusetts, one branch in New Jersey, one branch in Nevada, one branch in Hong Kong, and a representative office in Shanghai and in Taipei. Deposit accounts at the Hong Kong branch are not insured by the Federal Deposit Insurance Corporation (the “FDIC”).

2. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. For further information, refer to the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

The preparation of the condensed consolidated financial statements in accordance with GAAP requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. The most significant estimates subject to change are the allowance for loan losses, goodwill impairment, and other-than-temporary impairment.

3. Recent Accounting Pronouncements

In January 2013, the Financial Accounting Standard Board (“FASB”) issued ASU 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” ASU No. 2013-01 clarifies that the scope of Update 2011-11 applies to derivatives, repurchase agreements, and securities lending transactions to the extent that they are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement. ASU 2013-01 became effective for interim and annual periods beginning on or after January 1, 2013. Adoption of ASU 2013-01 did not have a significant impact on the Company’s consolidated financial statements. See Note 15 to the Company’s consolidated financial statements for the disclosure of adoption of ASU 2013-01.

8

In February 2013, the FASB issued ASU 2013-02 “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” ASU 2013-02 amends Topic 220, “Comprehensive Income,” to improve the reporting of reclassification out of accumulated other comprehensive income. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified and to present significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. ASU 2013-02 became effective prospectively for reporting periods beginning after December 15, 2012. Adoption of ASU 2013-02 did not have a significant impact on the Company’s consolidated financial statements. See Note 16 to the Company’s condensed consolidated financial statements for the disclosure of adoption of ASU 2013-02.

4. Earnings per Share

Basic earnings per share exclude dilution and is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and resulted in the issuance of common stock that then shared in earnings. Potential dilution is excluded from computation of diluted per-share amounts when a net loss from operations exists.

Outstanding stock options with anti-dilutive effect were not included in the computation of diluted earnings per share. The following table sets forth earnings per common share calculations:

 

	Three months ended September 30,						Nine months ended September 30,
(Dollars in thousands, except share and per share data)	2013			2012			2013			2012
Net income attributable to Cathay General Bancorp	$	32,478		$	30,358		$	91,241		$	89,132
Dividends on preferred stock and noncash charge from repayment		(2,434	)		(4,123	)		(9,685	)		(12,361	)
Net income available to common stockholders	$	30,044		$	26,235		$	81,556		$	76,771
Weighted-average shares:
Basic weighted-average number of common shares outstanding		78,894,262			78,729,272			78,853,333			78,706,150
Dilutive effect of weighted-average outstanding common share equivalents
Warrants		171,426			-			57,771			-
Restricted stock units		48,434			1,908			33,048			5,085
Diluted weighted-average number of common shares outstanding		79,114,122			78,731,180			78,944,152			78,711,235
Average stock options and warrants with anti-dilutive effect		3,668,285			6,080,292			4,958,218			6,133,089
Earnings per common share:
Basic	$	0.38		$	0.33		$	1.03		$	0.98
Diluted	$	0.38		$	0.33		$	1.03		$	0.98

9

5. Stock-Based Compensation

Under the Company’s equity incentive plans, directors and eligible employees may be granted incentive or non-statutory stock options and/or restricted stock units, or awarded non-vested stock. As of September 30, 2013, the only options granted by the Company were non-statutory stock options to selected Bank officers and non-employee directors at exercise prices equal to the fair market value of a share of the Company’s common stock on the date of grant. Such options have a maximum ten-year term and vest in 20% annual increments (subject to early termination in certain events) except certain options granted to the Chief Executive Officer of the Company in 2005 and 2008. If such options expire or terminate without having been exercised, any shares not purchased will again be available for future grants or awards. There were no options granted during the first nine months of 2013 or during 2012.

Option compensation expense was zero for the three months ended September 30, 2013, and $194,000 for the three months ended September 30, 2012. For the nine months ended September 30, option compensation expense totaled $129,000 for 2013 and $581,000 for 2012. Stock-based compensation is recognized ratably over the requisite service period for all awards. All unrecognized stock-based compensation expense was fully recognized as of September 30, 2013.

No stock options were exercised in the first nine months of 2013 compared to 39,784 shares issued on the exercise of stock options in the first nine months 2012. Cash received totaled $647,000 and the aggregate intrinsic value totaled $34,000 from the exercise of stock options during the nine months ended September 30, 2012. The table below summarizes stock option activity for the periods indicated:

	Shares			Weighted-average exercise price		Weighted-average remaining contractual life (in years)		Aggregate intrinsic value (in thousands)
Balance, December 31, 2012		3,996,630		$	29.45		2.2	$	-
Exercised		-			-
Forfeited		(339,340	)		20.45
Balance, March 31, 2013		3,657,290		$	30.28		2.2	$	-
Exercised		-			-
Forfeited		(2,980	)		30.79
Balance, June 30, 2013		3,654,310		$	30.28		1.9	$	-
Forfeited		(21,970	)		32.81
Balance, September 30, 2013		3,632,340		$	30.27		1.7	$	-
Exercisable, September 30, 2013		3,632,340		$	30.27		1.7	$	-

  

At September 30, 2013, 2,655,759 shares were available under the Company’s 2005 Incentive Plan for future grants.

The Company granted restricted stock units for 125,133 shares at an average closing price of $18.24 per share in 2012. The Company granted restricted stock units for 14,416 shares on March 14, 2013, at the closing price of $20.57, 6,729 shares on April 15, 2013, at the closing price of $18.91, and 1,454 shares on May 17, 2013, at the closing price of $20.63. The restricted stock units granted in 2012 and 2013 are scheduled to vest two years from grant date.

10

The following table presents information relating to the restricted stock units as of September 30, 2013:

 

	Units
Balance at December 31, 2012		256,616
Granted		22,599
Forfeited		-
Vested		(66,539	)
Balance at September 30, 2013		212,676

The compensation expense related to the restricted stock units was $476,000 for the three months ended September 30, 2013, compared to $459,000 for the three months ended September 30, 2012. For the nine months ended September 30, compensation expense recorded related to the restricted stock units was $1.6 million in 2013 and $1.2 million in 2012. Unrecognized stock-based compensation expense related to restricted stock units was $1.6 million at September 30, 2013, and is expected to be recognized over the next 1.1 years.

The following table summarizes the tax short-fall from share-based payment arrangements:

	Three months ended September 30,						Nine months ended September 30,
(Dollars in thousands)	2013			2012			2013			2012
Short-fall of tax deductions in excess of grant-date fair value	$	(63	)	$	(114	)	$	(143	)	$	(679	)
Benefit of tax deductions on grant-date fair value		95			114			702			777
Total benefit of tax deductions	$	32		$	-		$	559		$	98

 

6. Investment Securities

Investment securities were $1.7 billion at September 30, 2013, compared to $2.1 billion at December 31, 2012. During the first quarter of 2013, due to the ongoing discussions regarding corporate income tax rates which could have a negative impact on the after-tax yields and fair values of the Company’s portfolio of municipal securities, the Company determined it may sell such securities in response to market conditions. As a result, the Company reclassified its municipal securities from securities held-to-maturity to securities available-for-sale. Concurrent with this reclassification, the Company also reclassified all other securities held-to-maturity, which together with the municipal securities had an amortized cost on the date of transfer of $722.5 million, to securities available-for-sale. At the reclassification date, a net unrealized gain was recorded in other comprehensive income for these securities totaling $40.5 million.

11

The following table reflects the amortized cost, gross unrealized gains, gross unrealized losses, and fair values of investment securities as of September 30, 2013, and December 31, 2012:

 

	September 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Securities Available-for-Sale
U.S. treasury securities	$	460,119	$	214	$	-	$	460,333
Mortgage-backed securities		1,131,602		9,364		45,947		1,095,019
Collateralized mortgage obligations		6,489		268		60		6,697
Asset-backed securities		127		1		-		128
Corporate debt securities		174,953		186		7,299		167,840
Mutual funds		6,000		-		188		5,812
Preferred stock of government sponsored entities		569		6,911		-		7,480
Total securities available-for-sale	$	1,779,859	$	16,944	$	53,494	$	1,743,309
Total investment securities	$	1,779,859	$	16,944	$	53,494	$	1,743,309

	December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Securities Held-to-Maturity
State and municipal securities	$	129,037	$	9,268	$	-	$	138,305
Mortgage-backed securities		634,757		40,801		-		675,558
Corporate debt securities		9,974		69		-		10,043
Total securities held-to-maturity	$	773,768	$	50,138	$	-	$	823,906
Securities Available-for-Sale
U.S. treasury securities	$	509,748	$	228	$	5	$	509,971
Mortgage-backed securities		404,505		12,194		5		416,694
Collateralized mortgage obligations		9,772		430		34		10,168
Asset-backed securities		145		-		4		141
Corporate debt securities		349,973		106		14,102		335,977
Mutual funds		6,000		79		-		6,079
Preferred stock of government sponsored entities		569		1,766		-		2,335
Trust preferred securities		9,964		151		-		10,115
Total securities available-for-sale	$	1,290,676	$	14,954	$	14,150	$	1,291,480
Total investment securities	$	2,064,444	$	65,092	$	14,150	$	2,115,386

 

The amortized cost and fair value of investment securities at September 30, 2013, by contractual maturities, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or repayment penalties.  

	Securities available-for-sale
	Amortized cost		Fair value
	(In thousands)
Due in one year or less	$	460,141	$	460,355
Due after one year through five years		98,079		98,283
Due after five years through ten years		119,240		114,235
Due after ten years (1)		1,102,399		1,070,436
Total	$	1,779,859	$	1,743,309

(1) Equity securities are reported in this category

12

Proceeds from sales of mortgage-backed securities were $348.7 million and repayments, maturities and calls of mortgage-backed securities were $237.9 million during the first nine months of 2013 compared to proceeds from sales of $369.0 million and repayments, maturities, and calls of $280.7 million during the same period a year ago. Proceeds from sales of other investment securities were $555.2 million during the first nine months of 2013 compared to $61.0 million during the same period year ago. Proceeds from maturity and calls of other investment securities were $180.1 million during the first nine months of 2013 compared to $494.2 million during the same period a year ago. Gains of $27.2 million and no losses were realized on sales and calls of investment securities during the first nine months of 2013 compared to gains of $13.8 million and losses of $607,000 realized for the same period a year ago.

The unrealized loss on investments in corporate bonds relates to the Company’s investment in 14 issues of bonds of financial institutions, all of which were investment grade at the date of acquisition and as of September 30, 2013. The unrealized losses for these now floating rate securities were primarily caused by the widening of credit spreads since the dates of acquisition. The contractual terms of those investments do not permit the issuers to settle the security at a price less than the amortized cost of the investment. The Company currently does not believe it is probable that it will be unable to collect all amounts due according to the contractual terms of the investments. Therefore, it is expected that these bonds would not be settled at a price less than the amortized cost of the investment. Because the Company does not intend to sell and would not be required to sell these investments until a recovery of fair value, which may be at maturity, it does not consider its investments in these corporate bonds to be other-than-temporarily impaired at September 30, 2013.

The temporarily impaired securities represent 58.6% of the fair value of investment securities as of September 30, 2013. Unrealized losses for securities with unrealized losses for less than twelve months represent 4.9%, and securities with unrealized losses for twelve months or more represent 5.6%, of the historical cost of these securities. Unrealized losses on these securities generally resulted from increases in interest rates or spreads subsequent to the date that these securities were purchased.

At September 30, 2013, management believed the impairment was temporary and, accordingly, no impairment loss has been recognized in our condensed consolidated statements of operations. The Company expects to recover the amortized cost basis of its debt securities, and has no intent to sell and will not be required to sell available-for-sale debt securities that have declined below their cost before their anticipated recovery.

13

The table below shows the fair value and unrealized losses of the temporarily impaired securities in our investment securities portfolio as of September 30, 2013, and December 31, 2012:

	September 30, 2013
	Temporarily impaired securities
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
Securities Available-for-Sale
Mortgage-backed securities	$	882,851	$	45,944	$	154	$	2	$	883,005	$	45,946
Mortgage-backed securities-Non-agency		94		1		-		-		94		1
Collateralized mortgage obligations		68		1		332		59		400		60
Corporate debt securities		9,984		16		122,717		7,283		132,701		7,299
Mutual funds		5,812		188		-		-		5,812		188
Total securities available-for-sale	$	898,809	$	46,150	$	123,203	$	7,344	$	1,022,012	$	53,494
Total investment securities	$	898,809	$	46,150	$	123,203	$	7,344	$	1,022,012	$	53,494

 

 

	December 31, 2012
	Temporarily impaired securities
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
Securities Available-for-Sale
U.S. treasury securities	$	49,969	$	5	$	-	$	-	$	49,969	$	5
Mortgage-backed securities		231		1		170		1		401		2
Mortgage-backed securities-Non-agency		-		-		96		2		96		2
Collateralized mortgage obligations		-		-		439		35		439		35
Asset-backed securities		-		-		141		4		141		4
Corporate debt securities		52,468		2,532		253,430		11,570		305,898		14,102
Total securities available-for-sale	$	102,668	$	2,538	$	254,276	$	11,612	$	356,944	$	14,150
Total investment securities	$	102,668	$	2,538	$	254,276	$	11,612	$	356,944	$	14,150

Investment securities having a carrying value of $941.8 million at September 30, 2013, and $1.45 billion at December 31, 2012, were pledged to secure public deposits, other borrowings, treasury tax and loan, Federal Home Loan Bank advances, securities sold under agreements to repurchase, interest rate swaps, and foreign exchange transactions. 

7. Loans 

Most of the Company’s business activity is with Asian customers located in Southern and Northern California; New York City, New York; Houston and Dallas, Texas; Seattle, Washington; Boston, Massachusetts; Chicago, Illinois; Edison, New Jersey; Las Vegas, Nevada, and Hong Kong. The Company has no specific industry concentration, and generally its loans are secured by real property or other collateral of the borrowers. Loans are generally expected to be paid off from the operating profits of the borrowers, from refinancing by other lenders, or through sale by the borrowers of the secured collateral.

14

The components of loans in the condensed consolidated balance sheets as of September 30, 2013, and December 31, 2012, were as follows:

	September 30, 2013			December 31, 2012
	(In thousands)
Type of Loans:
Commercial loans	$	2,237,902		$	2,127,107
Residential mortgage loans		1,293,849			1,146,230
Commercial mortgage loans		3,921,348			3,768,452
Equity lines		173,798			193,852
Real estate construction loans		189,867			180,950
Installment and other loans		15,249			12,556
Gross loans		7,832,013			7,429,147
Less:
Allowance for loan losses		(181,452	)		(183,322	)
Unamortized deferred loan fees		(12,933	)		(10,238	)
Total loans, net	$	7,637,628		$	7,235,587

 

At September 30, 2013, recorded investment in impaired loans totaled $215.8 million and was comprised of non-accrual loans of $99.9 million, and accruing troubled debt restructured (“TDR”) loans of $115.9 million. At December 31, 2012, recorded investment in impaired loans totaled $248.6 million and was comprised of non-accrual loans of $103.9 million and accruing TDRs of $144.7 million. For impaired loans, the amounts previously charged off represent 22.2% at September 30, 2013, and 23.2% at December 31, 2012, of the contractual balances for impaired loans. The following table presents the average balance and interest income recognized related to impaired loans for the periods indicated:

	Impaired Loans
	Average Recorded Investment								Interest Income Recognized
	Three months ended September 30,				Nine months ended September 30,				Three months ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012		2013		2012		2013		2012
	(In thousands)
Commercial loans	$	32,187	$	25,987	$	24,873	$	33,672	$	166	$	49	$	395	$	146
Real estate construction loans		34,946		41,404		39,014		51,176		67		177		199		531
Commercial mortgage loans		132,921		178,206		145,380		180,959		730		1,971		3,289		5,477
Residential mortgage and equity lines		16,884		18,370		17,574		18,420		106		49		227		148
Total	$	216,938	$	263,967	$	226,841	$	284,227	$	1,069	$	2,246	$	4,110	$	6,302

 

15

The following table presents impaired loans and the related allowance for credit losses as of the dates indicated:

	Impaired Loans
	September 30, 2013						December 31, 2012
	Unpaid Principal Balance		Recorded Investment		Allowance		Unpaid Principal Balance		Recorded Investment		Allowance
	(In thousands)
With no allocated allowance
Commercial loans	$	20,896	$	17,699	$	-	$	29,359	$	18,963	$	-
Real estate construction loans		25,438		15,135		-		9,304		7,277		-
Commercial mortgage loans		125,489		94,167		-		189,871		152,957		-
Residential mortgage loans and equity lines		2,978		2,969		-		4,303		4,229		-
Subtotal	$	174,801	$	129,970	$	-	$	232,837	$	183,426	$	-
With allocated allowance
Commercial loans	$	22,099	$	17,352	$	10,849	$	7,804	$	4,959	$	1,467
Real estate construction loans		28,847		19,694		5,691		54,718		34,856		8,158
Commercial mortgage loans		35,582		34,688		6,129		14,163		12,928		1,336
Residential mortgage loans and equity lines		15,951		14,097		693		14,264		12,428		1,222
Subtotal	$	102,479	$	85,831	$	23,362	$	90,949	$	65,171	$	12,183
Total impaired loans	$	277,280	$	215,801	$	23,362	$	323,786	$	248,597	$	12,183

 

The following table presents the aging of the loan portfolio by type as of September 30, 2013, and as of December 31, 2012:

	September 30, 2013
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Non-accrual Loans		Total Past Due		Loans Not Past Due		Total
Type of Loans:	(In thousands)
Commercial loans	$	17,034	$	4,136	$	-	$	24,506	$	45,676	$	2,192,226	$	2,237,902
Real estate construction loans		-		-		-		28,995		28,995		160,872		189,867
Commercial mortgage loans		2,396		262		499		35,996		39,153		3,882,195		3,921,348
Residential mortgage loans		3,310		2,237		-		10,364		15,911		1,451,736		1,467,647
Installment and other loans		208		-		-		-		208		15,041		15,249
Total loans	$	22,948	$	6,635	$	499	$	99,861	$	129,943	$	7,702,070	$	7,832,013

	December 31, 2012
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Non-accrual Loans		Total Past Due		Loans Not Past Due		Total
Type of Loans:	(In thousands)
Commercial loans	$	16,832	$	1,610	$	630	$	19,958	$	39,030	$	2,088,077	$	2,127,107
Real estate construction loans		-		1,471		-		36,299		37,770		143,180		180,950
Commercial mortgage loans		21,570		3,627		-		35,704		60,901		3,707,551		3,768,452
Residential mortgage loans		5,324		1,972		-		11,941		19,237		1,320,845		1,340,082
Installment and other loans		-		-		-		-		-		12,556		12,556
Total loans	$	43,726	$	8,680	$	630	$	103,902	$	156,938	$	7,272,209	$	7,429,147

 

The determination of the amount of the allowance for credit losses for impaired loans is based on management’s current judgment about the credit quality of the loan portfolio and takes into consideration known relevant internal and external factors that affect collectibility when determining the appropriate level for the allowance for credit losses. The nature of the process by which the Bank determines the appropriate allowance for credit losses requires the exercise of considerable judgment. This allowance evaluation process is also applied to troubled debt restructurings since they are considered to be impaired loans.

16

A troubled debt restructuring is a formal modification of the terms of a loan when the lender, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower. The concessions may be granted in various forms, including a change in the stated interest rate, a reduction in the loan balance or accrued interest, or an extension of the maturity date that causes significant delay in payment.

TDRs on accrual status are comprised of the loans that have, pursuant to the Bank’s policy, performed under the restructured terms and have demonstrated sustained performance under the modified terms for nine months before being returned to accrual status. The sustained performance considered by management pursuant to its policy includes the periods prior to the modification if the prior performance met or exceeded the modified terms. This would include cash paid by the borrower prior to the restructure to set up interest reserves.

At September 30, 2013, accruing TDRs were $115.9 million and non-accrual TDRs were $43.6 million compared to accruing TDRs of $144.7 million and non-accrual TDRs of $47.7 million at December 31, 2012. The Company allocated specific reserves of $6.3 million to accruing TDRs and $4.5 million to non-accrual TDRs at September 30, 2013, and $1.1 million to accruing TDRs and $7.8 million to non-accrual TDRs at December 31, 2012. The following table presents TDRs that were modified during the first nine months of 2013 and 2012, their specific reserve at September 30, 2013, and charge-offs during the first nine months of 2013 and 2012:

 

	Nine months ended September 30, 2013								September 30, 2013
	No. of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Charge-offs		Specific Reserve
	(Dollars in thousands)
Commercial loans		9		11,705		10,516	$	1,189	$	71
Commercial mortgage loans		3		7,474		7,474		-		191
Residential mortgage loans and equity lines		11		3,736		3,658		78		125
Total		23	$	22,915	$	21,648	$	1,267	$	387

	Nine months ended September 30, 2012								September 30, 2013
	No. of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Charge-offs		Specific Reserve
	(Dollars in thousands)
Commercial loans		8	$	2,144	$	2,144	$	-	$	75
Commercial mortgage loans		15		59,299		55,610		3,689		-
Residential mortgage loans and equity lines		7		2,895		2,895		-		70
Total		30	$	64,338	$	60,649	$	3,689	$	145

 

17

Modifications of the loan terms during the first nine months of 2013 were in the form of changes in the stated interest rate, and in payment terms to interest only from principal and interest or reduction in monthly payment amount, multiple note structure, and waiver of late charges and collection fees.  The length of time for which modifications involving a reduction of the stated interest rate or changes in payment terms that were documented ranged from twelve months to three years from the modification date. 

We expect that the TDR loans on accruing status as of September 30, 2013, which were all performing in accordance with their restructured terms, will continue to comply with the restructured terms because of the reduced principal or interest payments on these loans. A summary of TDRs by type of concession, and by type of loan as of September 30, 2013, and December 31, 2012, is shown below:

	September 30, 2013
Accruing TDRs	Principal Deferral		Rate Reduction		Rate Reduction and Payment Deferral		Total
	(In thousands)
Commercial loans	$	4,813	$	2,943	$	2,788	$	10,544
Real estate construction loans		-		-		5,833		5,833
Commercial mortgage loans		12,740		9,130		70,991		92,861
Residential mortgage loans		1,573		1,588		3,541		6,702
Total accruing TDRs	$	19,126	$	13,661	$	83,153	$	115,940

  

 

	September 30, 2013
Non-accrual TDRs	Interest Deferral		Principal Deferral		Rate Reduction and Forgiveness of Principal		Rate Reduction and Payment Deferral		Total
	(In thousands)
Commercial loans	$	-	$	3,026	$	1,391	$	-	$	4,417
Real estate construction loans		-		16,199		-		9,301		25,500
Commercial mortgage loans		1,464		1,640		-		6,677		9,781
Residential mortgage loans		249		2,241		-		1,420		3,910
Total non-accrual TDRs	$	1,713	$	23,106	$	1,391	$	17,398	$	43,608

	December 31, 2012
Accruing TDRs	Principal Deferral		Rate Reduction		Rate Reduction and Forgiveness of Principal		Rate Reduction and Payment Deferral		Total
	(In thousands)
Commercial loans	$	531	$	3,020	$	-	$	413	$	3,964
Real estate construction loans		-		-		-		5,834		5,834
Commercial mortgage loans		27,003		16,656		739		85,783		130,181
Residential mortgage loans		1,461		1,024		-		2,231		4,716
Total accruing TDRs	$	28,995	$	20,700	$	739	$	94,261	$	144,695

  

18

 

	December 31, 2012
Non-accrual TDRs	Interest Deferral		Principal Deferral		Rate Reduction		Rate Reduction and Forgiveness of Principal		Rate Reduction and Payment Deferral		Total
	(In thousands)
Commercial loans	$	-	$	912	$	-	$	1,518	$	-	$	2,430
Real estate construction loans		-		16,767		9,579		-		-		26,346
Commercial mortgage loans		1,685		2,817		5,746		-		5,076		15,324
Residential mortgage loans		275		2,010		586		-		760		3,631
Total non-accrual TDRs	$	1,960	$	22,506	$	15,911	$	1,518	$	5,836	$	47,731

The activity within our TDR loans for the periods indicated are shown below:

	Three months ended September 30,						Nine months ended September 30,
Accruing TDRs	2013			2012			2013			2012
	(In thousands)
Beginning balance	$	115,464		$	153,249		$	144,695		$	120,016
New restructurings		10,669			14,765			15,485			53,524
Restructured loans restored to accrual status		5,397			3,957			6,851			6,810
Charge-offs		-			(251	)		(78	)		(251	)
Payments		(15,274	)		(1,569	)		(48,663	)		(4,124	)
Restructured loans placed on nonaccrual		(316	)		-			(2,350	)		(5,824	)
Ending balance	$	115,940		$	170,151		$	115,940		$	170,151

	Three months ended September 30,						Nine months ended September 30,
Non-accrual TDRs	2013			2012			2013			2012
	(In thousands)
Beginning balance	$	48,524		$	23,285		$	47,731		$	50,870
New restructurings		2,415			1,153			6,163			7,124
Restructured loans placed on nonaccrual		316			-			2,350			5,824
Charge-offs		(1,188	)		-			(2,121	)		(4,285	)
Payments		(1,062	)		(1,405	)		(3,664	)		(33,647	)
Restructured loans restored to accrual status		(5,397	)		(3,957	)		(6,851	)		(6,810	)
Ending balance	$	43,608		$	19,076		$	43,608		$	19,076

A loan is considered to be in payment default once it is 60 to 90 days contractually past due under the modified terms.  Two commercial loans of $1.4 million were modified as TDRs during the previous twelve months and subsequently defaulted as of September 30, 2013, within the three months and nine months ended September 30, 2013.  None of these TDRs incurred any charge-offs within the twelve month period.

Under the Company’s internal underwriting policy, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification in order to determine whether a borrower is experiencing financial difficulty.

As of September 30, 2013, there were no commitments to lend additional funds to those borrowers whose loans have been restructured, were considered impaired, or were on non-accrual status.

19

As part of the on-going monitoring of the credit quality of our loan portfolio, the Company utilizes a risk grading matrix to assign a risk grade to each loan. The risk rating categories can be generally described by the following grouping for non-homogeneous loans: 

● Pass/Watch – These loans range from minimal credit risk to lower than average, but still acceptable, credit risk.

● Special Mention – Borrower is fundamentally sound and loan is currently protected but adverse trends are apparent that, if not corrected, may affect ability to repay. Primary source of loan repayment remains viable but there is increasing reliance on collateral or guarantor support.

● Substandard – These loans are inadequately protected by current sound net worth, paying capacity, or pledged collateral. Well-defined weaknesses exist that could jeopardize repayment of debt. Loss may not be imminent, but if weaknesses are not corrected, there is a good possibility of some loss.

● Doubtful – The possibility of loss is extremely high, but due to identifiable and important pending events (which may strengthen the loan), a loss classification is deferred until the situation is better defined.

● Loss – These loans are considered uncollectible and of such little value that to continue to carry the loan as an active asset is no longer warranted.

The following table presents loan portfolio by risk rating as of September 30, 2013, and as of December 31, 2012:

	September 30, 2013
	Pass/Watch		Special Mention		Substandard		Doubtful		Total
	(In thousands)
Commercial loans	$	2,047,158	$	84,776	$	94,088	$	11,880	$	2,237,902
Real estate construction loans		151,696		-		34,676		3,495		189,867
Commercial mortgage loans		3,543,731		137,183		240,434		-		3,921,348
Residential mortgage loans and equity lines		1,453,498		-		14,149		-		1,467,647
Installment and other loans		15,249		-		-		-		15,249
Total gross loans	$	7,211,332	$	221,959	$	383,347	$	15,375	$	7,832,013

 

 

	December 31, 2012
	Pass/Watch		Special Mention		Substandard		Doubtful		Total
	(In thousands)
Commercial loans	$	1,944,989	$	76,776	$	94,077	$	11,265	$	2,127,107
Real estate construction loans		109,269		18,000		45,171		8,510		180,950
Commercial mortgage loans		3,344,783		162,455		261,214		-		3,768,452
Residential mortgage loans and equity lines		1,322,768		816		16,084		414		1,340,082
Installment and other loans		12,556		-		-		-		12,556
Total gross loans	$	6,734,365	$	258,047	$	416,546	$	20,189	$	7,429,147

The allowance for loan losses and the reserve for off-balance sheet credit commitments are significant estimates that can and do change based on management’s process in analyzing the loan portfolio and on management’s assumptions about specific borrowers, underlying collateral, and applicable economic and environmental conditions, among other factors.

20

The following table presents the balance in the allowance for loan losses by portfolio segment and based on impairment method as of September 30, 2013, and as of December 31, 2012:

	Commercial Loans		Real Estate Construction Loans		Commercial Mortgage Loans		Residential Mortgage Loans and Equity Lines		Installment and Other Loans		Total
	(In thousands)
September 30, 2013
Loans individually evaluated for impairment
Allowance	$	10,849	$	5,691	$	6,129	$	693	$	-	$	23,362
Balance	$	35,051	$	34,829	$	128,855	$	17,066	$	-	$	215,801
Loans collectively evaluated for impairment
Allowance	$	55,887	$	10,960	$	79,959	$	11,249	$	35	$	158,090
Balance	$	2,202,851	$	155,038	$	3,792,493	$	1,450,581	$	15,249	$	7,616,212
Total allowance	$	66,736	$	16,651	$	86,088	$	11,942	$	35	$	181,452
Total balance	$	2,237,902	$	189,867	$	3,921,348	$	1,467,647	$	15,249	$	7,832,013
December 31, 2012
Loans individually evaluated for impairment
Allowance	$	1,467	$	8,158	$	1,336	$	1,222	$	-	$	12,183
Balance	$	23,922	$	42,133	$	165,885	$	16,657	$	-	$	248,597
Loans collectively evaluated for impairment
Allowance	$	64,634	$	14,859	$	81,137	$	10,481	$	28	$	171,139
Balance	$	2,103,185	$	138,817	$	3,602,567	$	1,323,425	$	12,556	$	7,180,550
Total allowance	$	66,101	$	23,017	$	82,473	$	11,703	$	28	$	183,322
Total balance	$	2,127,107	$	180,950	$	3,768,452	$	1,340,082	$	12,556	$	7,429,147

 

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The following table details activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2013, and September 30, 2012. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

Three months ended September 30, 2013 and 2012

	Commercial Loans			Real Estate Construction Loans			Commercial Mortgage Loans			Residential Mortgage Loans and Equity Lines			Installment and Other Loans			Total
	(In thousands)
June 30, 2012 Ending Balance		66,595			16,360			99,009			10,254			56			192,274
Provision/(credit) for possible credit losses		6,199			(670	)		(6,350	)		740			(23	)		(104	)
Charge-offs		(7,387	)		(39	)		(966	)		(477	)		-			(8,869	)
Recoveries		331			477			318			11			-			1,137
Net (charge-offs)/recoveries		(7,056	)		438			(648	)		(466	)		-			(7,732	)
September 30, 2012 Ending Balance	$	65,738		$	16,128		$	92,011		$	10,528		$	33		$	184,438
June 30, 2013 Ending Balance	$	64,379		$	13,755		$	89,678		$	11,892		$	29		$	179,733
Provision/(credit) for possible credit losses		2,121			1,660			(5,710	)		52			6			(1,871	)
Charge-offs		(200	)		-			(394	)		(160	)		-			(754	)
Recoveries		436			1,236			2,514			158			-			4,344
Net (charge-offs)/recoveries		236			1,236			2,120			(2	)		-			3,590
September 30, 2013 Ending Balance	$	66,736		$	16,651		$	86,088		$	11,942		$	35		$	181,452

Nine months ended September 30, 2013 and 2012

	Commercial Loans			Real Estate Construction Loans			Commercial Mortgage Loans			Residential Mortgage Loans and Equity Lines			Installment and Other Loans			Total
	(In thousands)
2012 Beginning Balance	$	65,658		$	21,749		$	108,021		$	10,795		$	57		$	206,280
Provision/(credit) for possible credit losses		13,329			(10,081	)		(12,937	)		1,150			(2	)		(8,541	)
Charge-offs		(14,479	)		(1,165	)		(10,647	)		(1,805	)		(25	)		(28,121	)
Recoveries		1,230			5,625			7,574			388			3			14,820
Net (charge-offs)/recoveries		(13,249	)		4,460			(3,073	)		(1,417	)		(22	)		(13,301	)
September 30, 2012 Ending Balance	$	65,738		$	16,128		$	92,011		$	10,528		$	33		$	184,438
Reserve for impaired loans	$	1,791		$	279		$	1,729		$	1,626		$	-		$	5,425
Reserve for non-impaired loans	$	63,947		$	15,849		$	90,282		$	8,902		$	33		$	179,013
Reserve for off-balance sheet credit commitments	$	801		$	668		$	104		$	34		$	3		$	1,610
2013 Beginning Balance	$	66,101		$	23,017		$	82,473		$	11,703		$	28		$	183,322
Provision/(credit) for possible credit losses		3,200			(8,622	)		935			780			(4	)		(3,711	)
Charge-offs		(4,580	)		-			(3,425	)		(766	)		-			(8,771	)
Recoveries		2,015			2,256			6,105			225			11			10,612
Net (charge-offs)/recoveries		(2,565	)		2,256			2,680			(541	)		11			1,841
September 30, 2013 Ending Balance	$	66,736		$	16,651		$	86,088		$	11,942		$	35		$	181,452
Reserve for impaired loans	$	10,849		$	5,691		$	6,129		$	693		$	-		$	23,362
Reserve for non-impaired loans	$	55,887		$	10,960		$	79,959		$	11,249		$	35		$	158,090
Reserve for off-balance sheet credit commitments	$	953		$	287		$	799		$	34		$	1		$	2,074

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8. Commitments and Contingencies

The Company is involved in various litigation concerning transactions entered into during the normal course of business. Management, after consultation with legal counsel, does not believe that the resolution of such litigation will have a material effect upon its consolidated financial condition, results of operations, or liquidity taken as a whole. Although the Company establishes accruals for legal proceedings when information related to the loss contingencies represented by those matters indicates both that a loss is probable and that the amount of loss can be reasonably estimated, the Company does not have accruals for all legal proceedings where there is a risk of loss. In addition, amounts accrued may not represent the ultimate loss to the Company from the legal proceedings in question. Thus, ultimate losses may be higher or lower, and possibly significantly so, than the amounts accrued for legal loss contingencies.

In the normal course of business, the Company becomes a party to financial instruments with off-balance sheet risk to meet the financing needs of its customers. These financial instruments include commitments to extend credit in the form of loans, or through commercial or standby letters of credit, and financial guarantees. These instruments represent varying degrees of exposure to risk in excess of the amounts included in the accompanying condensed consolidated balance sheets. The contractual or notional amount of these instruments indicates a level of activity associated with a particular class of financial instrument and is not a reflection of the level of expected losses, if any.

9. Securities Sold Under Agreements to Repurchase

Securities sold under agreements to repurchase were $800 million with a weighted average rate of 3.87% at September 30, 2013, compared to $1.3 billion with a weighted average rate of 3.84% at December 31, 2012. In 2012, the Company modified $200.0 million of securities sold under agreements to repurchase by extending the term by an additional four years on average, reducing the rate by an average of 168 basis points, and removing the callable feature. In 2012, the Company prepaid securities sold under agreements to repurchase totaling $150 million with a weighted average rate of 4.43% and incurred prepayment penalties of $9.4 million. In the first nine months of 2013, the Company prepaid securities sold under agreements to repurchase totaling $450 million with a weighted average rate of 3.79% and incurred prepayment penalties of $22.6 million. Five floating-to-fixed rate agreements totaling $300.0 million have initial floating rates for a period of time ranging from six months to one year, with floating rates ranging from the three-month LIBOR minus 200 basis points to the three-month LIBOR rate minus 340 basis points. Thereafter, the rates are fixed for the remainder of the term, with interest rates ranging from 4.78% to 5.07%. After the initial floating rate term, the counter parties have the right to terminate the transaction at par at the fixed rate reset date and quarterly thereafter. Six fixed-to-floating rate agreements totaling $300.0 million have initial fixed rates ranging from 1.00% to 3.50% with initial fixed rate terms ranging from six months to 18 months. For the remaining term, the rates float at 8% minus the three-month LIBOR rate with a maximum rate ranging from 3.50% to 3.75% and minimum rate of 0.0%. After the initial fixed rate term, the counter parties have the right to terminate the transaction at par at the floating rate reset date and quarterly thereafter. The table below provides summary data for the $600 million of callable securities sold under agreements to repurchase as of September 30, 2013:

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(Dollars in millions)	Fixed-to-floating									Floating-to-fixed						Total
Rate type	Float Rate									Fixed Rate
Rate index	8% minus 3 month LIBOR
Maximum rate		3.75	%		3.50	%		3.50	%
Minimum rate		0.0	%		0.0	%		0.0	%
No. of agreements		1			2			3			1			4			11
Amount	$	50.0		$	100.0		$	150.0		$	100.0		$	200.0		$	600.0
Weighted average rate		3.75	%		3.50	%		3.50	%		4.78	%		5.00	%		4.24	%
Final maturity	2014			2014			2015			2014			2017

 

The table below provides summary data for non-callable fixed rate securities sold under agreements to repurchase as of September 30, 2013:

 

Maturity	No. of Agreements		Amount (In thousands)		Weighted Average Interest Rate
1 year to 3 years		1	$	50,000		2.69	%
3 years to 5 years		3	$	150,000		2.81	%
Total		4	$	200,000		2.78	%

These transactions are accounted for as collateralized financing transactions and recorded at the amounts at which the securities were sold. The Company may have to provide additional collateral for the repurchase agreements, as necessary. The underlying collateral pledged for the repurchase agreements consists of U.S. Treasury securities, U.S. government agency securities, and mortgage-backed securities with a fair value of $920.1 million as of September 30, 2013, and $1.4 billion as of December 31, 2012.

10. Income Taxes

Income tax expense totaled $52.5 million, or an effective tax rate of 36.5%, for the first nine months of 2013, compared to an income tax expense of $50.9 million, or an effective tax rate of 36.3%, for the same period a year ago. The effective tax rate includes the impact of the utilization of low income housing tax credits and recognition of other tax credits for both years.

As of December 31, 2012, the Company had income tax refunds receivable of $12.4 million. These income tax receivables are included in other assets in the accompanying condensed consolidated balance sheets.

The Company’s tax returns are open for audits by the Internal Revenue Service back to 2010 and by the California Franchise Tax Board back to 2003. The Company is under audit by the California Franchise Tax Board for the years 2003 to 2007. As the Company is presently under audit by a number of tax authorities, it is reasonably possible that unrecognized tax benefits could change significantly over the next twelve months. The Company does not expect that any such changes would have a material impact on its annual effective tax rate.

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11. Fair Value Measurements

The Company adopted ASC Topic 820 on January 1, 2008, and determined the fair values of our financial instruments based on the following:

● Level 1 - Quoted prices in active markets for identical assets or liabilities.

● Level 2 - Observable prices in active markets for similar assets or liabilities; prices for identical or similar assets or liabilities in markets that are not active; directly observable market inputs for substantially the full term of the asset and liability; market inputs that are not directly observable but are derived from or corroborated by observable market data.

● Level 3 – Unobservable inputs based on the Company’s own judgment about the assumptions that a market participant would use.

The Company uses the following methodologies to measure the fair value of its financial assets and liabilities on a recurring basis:

Securities Available for Sale. For certain actively traded agency preferred stocks, mutual funds, and U.S. Treasury securities, the Company measures the fair value based on quoted market prices in active exchange markets at the reporting date, a Level 1 measurement. The Company also measures securities by using quoted market prices for similar securities or dealer quotes, a Level 2 measurement. This category generally includes U.S. Government agency securities, state and municipal securities, mortgage-backed securities (“MBS”), commercial MBS, collateralized mortgage obligations, asset-backed securities, corporate bonds and trust preferred securities.

Trading Securities. The Company measures the fair value of trading securities based on quoted market prices in active exchange markets at the reporting date, a Level 1 measurement. The Company also measures the fair value for other trading securities based on quoted market prices for similar securities or dealer quotes, a Level 2 measurement.

Warrants. The Company measures the fair value of warrants based on unobservable inputs based on assumption and management judgment, a Level 3 measurement.

Currency Option and Foreign Exchange Contracts. The Company measures the fair value of currency option and foreign exchange contracts based on dealer quotes on a recurring basis, a Level 2 measurement.

Interest Rate Swaps. Fair value of interest rate swaps is derived from observable market prices for similar assets on a recurring basis, a Level 2 measurement.

The valuation techniques for the assets and liabilities valued on a nonrecurring basis are as follows:

Impaired Loans. The Company does not record loans at fair value on a recurring basis. However, from time to time, nonrecurring fair value adjustments to collateral dependent impaired loans are recorded based on either the current appraised value of the collateral, a Level 2 measurement, or management’s judgment and estimation of value reported on older appraisals that are then adjusted based on recent market trends, a Level 3 measurement.

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Goodwill. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in ASC Topic 350. The two-step impairment testing process, if needed, begins by assigning net assets and goodwill to the three reporting units— Commercial Lending, Retail Banking, and East Coast Operations.  The Company then completes “step one” of the impairment test by comparing the fair value of each reporting unit (as determined based on the discussion below) with the recorded book value (or “carrying amount”) of its net assets, with goodwill included in the computation of the carrying amount.  If the fair value of a reporting unit exceeds its carrying amount, goodwill of that reporting unit is not considered impaired, and “step two” of the impairment test is not necessary.  If the carrying amount of a reporting unit exceeds its fair value, step two of the impairment test is performed to determine the amount of impairment.  Step two of the impairment test compares the carrying amount of the reporting unit’s goodwill to the “implied fair value” of that goodwill.  The implied fair value of goodwill is computed by assuming that all assets and liabilities of the reporting unit would be adjusted to the current fair value, with the offset as an adjustment to goodwill.  This adjusted goodwill balance is the implied fair value used in step two.  An impairment charge is recognized for the amount by which the carrying amount of goodwill exceeds its implied fair value. In connection with the determination of fair value, certain data and information is utilized, including earnings forecasts at the reporting unit level for the next four years.  Other key assumptions include terminal values based on future growth rates and discount rates for valuing the cash flows, which have inputs for the risk-free rate, market risk premium, and adjustments to reflect inherent risk and required market returns. Because of the significance of unobservable inputs in the valuation of goodwill impairment, goodwill subject to nonrecurring fair value adjustments is classified as a Level 3 measurement.

Core Deposit Intangibles. Core deposit intangibles is initially recorded at fair value based on a valuation of the core deposits acquired and is amortized over its estimated useful life to its residual value in proportion to the economic benefits consumed. The Company assesses the recoverability of this intangible asset on a nonrecurring basis using the core deposits remaining at the assessment date and the fair value of cash flows expected to be generated from the core deposits, a Level 3 measurement.

Other Real Estate Owned. Real estate acquired in the settlement of loans is initially recorded at fair value based on the appraised value of the property on the date of transfer, less estimated costs to sell, a Level 2 measurement. From time to time, nonrecurring fair value adjustments are made to other real estate owned based on the current updated appraised value of the property, also a Level 2 measurement, or management’s judgment and estimation of value reported on older appraisals that are then adjusted based on recent market trends, a Level 3 measurement.

Investments in Venture Capital. The Company periodically reviews its investments in venture capital for other-than-temporary impairment on a nonrecurring basis. Investments in venture capital were written down to their fair value based on available financial reports from venture capital partnerships and management’s judgment and estimation, a Level 3 measurement.

Equity Investments. The Company records equity investments at fair value on a nonrecurring basis based on quoted market prices in active exchange markets at the reporting date, a Level 1 measurement.

26

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of September 30, 2013, and December 31, 2012:

 

September 30, 2013	Fair Value Measurements Using						Total at
	Level 1		Level 2		Level 3		Fair Value
	(In thousands)
Assets
Securities available-for-sale
U.S. Treasury securities	$	460,333	$	-	$	-	$	460,333
Mortgage-backed securities		-		1,095,019		-		1,095,019
Collateralized mortgage obligations		-		6,697		-		6,697
Asset-backed securities		-		128		-		128
Corporate debt securities		-		167,840		-		167,840
Mutual funds		5,812		-		-		5,812
Preferred stock of government sponsored entities		-		7,480		-		7,480
Total securities available-for-sale		466,145		1,277,164		-		1,743,309
Trading securities		-		4,855		-		4,855
Warrants		-		-		49		49
Foreign exchange contracts		-		5,816		-		5,816
Total assets	$	466,145	$	1,287,835	$	49	$	1,754,029
Liabilities
Option contracts	$	-	$	1	$	-	$	1
Foreign exchange contracts	$	-	$	4,725	$	-	$	4,725
Total liabilities	$	-	$	4,726	$	-	$	4,726

December 31, 2012	Fair Value Measurements Using						Total at
	Level 1		Level 2		Level 3		Fair Value
	(In thousands)
Assets
Securities available-for-sale
U.S. Treasury securities	$	509,971	$	-	$	-	$	509,971
Mortgage-backed securities		-		416,694		-		416,694
Collateralized mortgage obligations		-		10,168		-		10,168
Asset-backed securities		-		141		-		141
Corporate debt securities		-		335,977		-		335,977
Mutual funds		6,079		-		-		6,079
Preferred stock of government sponsored entities		-		2,335		-		2,335
Trust preferred securities		10,115		-		-		10,115
Total securities available-for-sale		526,165		765,315		-		1,291,480
Trading securities		-		4,703		-		4,703
Warrants		-		-		104		104
Foreign exchange contracts		-		2,924		-		2,924
Total assets	$	526,165	$	772,942	$	104	$	1,299,211
Liabilities
Option contracts	$	-	$	2	$	-	$	2
Foreign exchange contracts		-		1,586		-		1,586
Total liabilities	$	-	$	1,588	$	-	$	1,588

The Company measured the fair value of its warrants on a recurring basis using significant unobservable inputs. The fair value of warrants was $49,000 at September 30, 2013, compared to $104,000 at December 31, 2012. The fair value adjustment of warrants was included in other operating income in the third quarter of 2013.

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For financial assets measured at fair value on a nonrecurring basis that were still reflected in the balance sheet at September 30, 2013, the following table provides the level of valuation assumptions used to determine each adjustment, the carrying value of the related individual assets as of September 30, 2013, and December 31, 2012, and the total losses/(gains) for the periods indicated:

	September 30, 2013								Total Losses/(gains)
	Fair Value Measurements Using								Three Months ended				Nine Months ended
	Level 1		Level 2		Level 3		Total at Fair Value		September 30, 2013		September 30, 2012		September 30, 2013			September 30, 2012
	(In thousands)
Assets
Impaired loans by type:
Commercial loans	$	-	$	-	$	6,502	$	6,502	$	-	$	1,983	$	536		$	2,848
Commercial mortgage loans		-		-		28,533		28,533		394		-		459			-
Construction- residential		-		-		500		500		-		-		-			-
Construction- other		-		-		13,503		13,503		-		-		-			-
Real estate loans		-		-		-		-		-		-		-			301
Residential mortgage loans and equity lines		-		-		13,404		13,404		160		251		191			782
Land loans		-		-		27		27		-		-		-			-
Total impaired loans		-		-		62,469		62,469		554		2,234		1,186			3,931
Other real estate owned (1)		-		27,081		8,321		35,402		111		2,875		(1,267	)		10,602
Investments in venture capital		-		-		9,085		9,085		84		39		295			226
Equity investments		642		-		-		642		-		-		-			43
Total assets	$	642	$	27,081	$	79,875	$	107,598	$	749	$	5,148	$	214		$	14,802

(1) Other real estate owned balance of $49.8 million in the condensed consolidated balance sheet is net of estimated disposal costs.

	December 31, 2012								Total Losses
	Fair Value Measurements Using								Twelve months ended
	Level 1		Level 2		Level 3		Total at Fair Value		December 31, 2012		December 31, 2011
	(In thousands)
Assets
Impaired loans by type:
Commercial loans	$	-	$	-	$	3,492	$	3,492	$	-	$	877
Commercial mortgage loans		-		-		11,295		11,295		440		-
Construction- residential		-		-		500		500		-		-
Construction- other		-		-		46,153		46,153		65		-
Residential mortgage loans and equity lines		-		-		11,206		11,206		605		820
Land loans		-		-		297		297		162		46
Total impaired loans		-		-		72,943		72,943		1,272		1,743
Other real estate owned (1)		-		27,149		4,841		31,990		10,904		7,003
Investments in venture capital		-		-		9,001		9,001		309		379
Equity investments		142		-		-		142		181		200
Total assets	$	142	$	27,149	$	86,785	$	114,076	$	12,666	$	9,325

(1) Other real estate owned balance of $46.4 million in the condensed consolidated balance sheet is net of estimated disposal costs.

The significant unobservable (Level 3) inputs used in the fair value measurement of collateral for collateral-dependent impaired loans was primarily based on the appraised value of collateral adjusted by estimated sales cost and commissions. The Company generally obtains new appraisal reports every nine months. As the Company’s primary objective in the event of default would be to monetize the collateral to settle the outstanding balance of the loan, less marketable collateral would receive a larger discount. During the reported periods, collateral discounts ranged from 45% in the case of accounts receivable collateral to 65% in the case of inventory collateral.

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The significant unobservable inputs used in the fair value measurement of loans held for sale was primarily based on the quoted price or sale price adjusted by estimated sales cost and commissions. The significant unobservable inputs used in the fair value measurement of other real estate owned (“OREO”) was primarily based on the appraised value of OREO adjusted by estimated sales cost and commissions.

The Company applies estimated sales cost and commission ranging from 3% to 6% to collateral value of impaired loans, quoted price, or loan sale price of loans held for sale, and appraised value of OREOs.

The significant unobservable inputs in the Black-Scholes option pricing model for the fair value of warrants are the expected life of warrant ranging from 2 to 4 years, risk-free interest rate from 0.33% to 1.01%, and stock volatility from 12.6% to 16.6%.

12. Fair Value of Financial Instruments

The following methods and assumptions were used to estimate the fair value of each class of financial instruments.

Cash and Cash Equivalents. For cash and cash equivalents, the carrying amount was assumed to be a reasonable estimate of fair value, a Level 1 measurement.

Short-term Investments. For short-term investments, the carrying amount was assumed to be a reasonable estimate of fair value, a Level 1 measurement.

Securities Purchased under Agreements to Resell. The fair value of securities purchased under agreements to resell is based on dealer quotes, a Level 2 measurement.

Securities. For securities, including securities held-to-maturity, available-for-sale and for trading, fair values were based on quoted market prices at the reporting date. If a quoted market price was not available, fair value was estimated using quoted market prices for similar securities or dealer quotes. For certain actively traded agency preferred stocks and U.S. Treasury securities, the Company measures the fair value based on quoted market prices in active exchange markets at the reporting date, a Level 1 measurement. The Company also measures securities by using quoted market prices for similar securities or dealer quotes, a Level 2 measurement. This category generally includes U.S. Government agency securities, state and municipal securities, mortgage-backed securities (“MBS”), commercial MBS, collateralized mortgage obligations, asset-backed securities, and corporate bonds.

Loans. Fair values were estimated for portfolios of loans with similar financial characteristics. Each loan category was further segmented into fixed and adjustable rate interest terms and by performing and non-performing categories.

The fair value of performing loans was calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate risk inherent in the loan, a Level 3 measurement.

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The fair value of impaired loans was calculated based on the net realizable fair value of the collateral or the observable market price of the most recent sale or quoted price from loans held for sale. The Company does not record loans at fair value on a recurring basis. Nonrecurring fair value adjustments to collateral dependent impaired loans are recorded based on the current appraised value of the collateral, a Level 2 measurement.

Deposit Liabilities. The fair value of demand deposits, savings accounts, and certain money market deposits was assumed to be the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit was estimated using the rates currently offered for deposits with similar remaining maturities, a Level 3 measurement.

Securities Sold under Agreements to Repurchase. The fair value of securities sold under agreements to repurchase is based on dealer quotes, a Level 2 measurement. 

Advances from Federal Home Loan Bank (“FHLB”). The fair value of the advances is based on quotes from the FHLB to settle the advances, a Level 2 measurement.

Other Borrowings. This category includes borrowings from other financial institutions.  The fair value of other borrowings is calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate risk, a Level 3 measurement. 

Long-term Debt. The fair value of long-term debt is estimated based on the quoted market prices or dealer quotes, a Level 2 measurement.

Currency Option and Foreign Exchange Contracts. The Company measures the fair value of currency option and foreign exchange contracts based on dealer quotes, a Level 2 measurement.

Interest Rate Swaps. Fair value of interest rate swaps was derived from observable market prices for similar assets, a Level 2 measurement.

Off-Balance-Sheet Financial Instruments. The fair value of commitments to extend credit, standby letters of credit, and financial guarantees written were estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counter parties. The fair value of guarantees and letters of credit was based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counter parties at the reporting date. The fair value of off-balance-sheet financial instruments was based on the assumptions that a market participant would use, a Level 3 measurement.

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Fair value was estimated in accordance with ASC Topic 825, formerly SFAS 107. Fair value estimates were made at specific points in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Bank’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Bank’s financial instruments, fair value estimates were based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates were subjective in nature and involved uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The following table presents the estimated fair value of financial instruments as of September 30, 2013, and as of December 31, 2012:

	September 30, 2013				December 31, 2012
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In thousands)
Financial Assets
Cash and due from banks	$	201,815	$	201,815	$	144,909	$	144,909
Short-term investments		389,024		389,024		411,983		411,983
Securities held-to-maturity		-		-		773,768		823,906
Securities available-for-sale		1,743,309		1,743,309		1,291,480		1,291,480
Trading securities		4,855		4,855		4,703		4,703
Loans, net		7,637,628		7,460,436		7,235,587		7,169,732
Investment in Federal Home Loan Bank stock		28,683		28,683		41,272		41,272
Warrants		49		49		104		104

	Notional Amount		Fair Value		Notional Amount		Fair Value
Option contracts	$	-	$	-	$	105	$	-
Foreign exchange contracts		277,430		5,816		188,145		2,924

	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial Liabilities
Deposits	$	7,918,543	$	7,917,105	$	7,383,225	$	7,389,015
Securities sold under agreements to repurchase		800,000		858,315		1,250,000		1,361,585
Advances from Federal Home Loan Bank		376,200		376,429		146,200		146,789
Other borrowings		19,108		16,020		18,713		14,573
Long-term debt		171,136		97,604		171,136		98,392

	Notional Amount		Fair Value		Notional Amount		Fair Value
Option contracts	$	-	$	1	$	104	$	2
Foreign exchange contracts		185,558		4,725		133,669		1,586

	Notional Amount		Fair Value			Notional Amount		Fair Value
Off-Balance Sheet Financial Instruments
Commitments to extend credit	$	1,760,520	$	(1,919	)	$	1,740,463	$	(1,875	)
Standby letters of credit		46,457		(200	)		44,672		(204	)
Other letters of credit		88,601		(50	)		71,073		(34	)
Bill of lading guarantees		172		-			77		-

 

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The following table presents the level in the fair value hierarchy for the estimated fair values of only financial instruments that are not already included on the condensed consolidated balance sheets at fair value as of September 30, 2013, and December 31, 2012.

	September 30, 2013
	Estimated Fair Value Measurements		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets
Cash and due from banks	$	201,815	$	201,815	$	-	$	-
Short-term investments		389,024		389,024		-		-
Securities available-for-sale		1,743,309		466,145		1,277,164		-
Trading securities		4,855		-		4,855		-
Loans, net		7,460,436		-		-		7,460,436
Investment in Federal Home Loan Bank stock		28,683		-		28,683		-
Warrants		49		-		-		49
Financial Liabilities
Deposits		7,917,105		-		-		7,917,105
Securities sold under agreements to repurchase		858,315		-		858,315		-
Advances from Federal Home Loan Bank		376,429		-		376,429		-
Other borrowings		16,020		-		-		16,020
Long-term debt		97,604		-		97,604		-

	December 31, 2012
	Estimated Fair Value Measurements		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets
Cash and due from banks	$	144,909	$	144,909	$	-	$	-
Short-term investments		411,983		411,983		-		-
Securities held-to-maturity		823,906		-		823,906		-
Securities available-for-sale		1,291,480		526,165		765,315		-
Trading securities		4,703		-		4,703		-
Loans, net		7,169,732		-		-		7,169,732
Investment in Federal Home Loan Bank stock		41,272		-		41,272		-
Warrants		104		-		-		104
Financial Liabilities
Deposits		7,389,015		-		-		7,389,015
Securities sold under agreements to repurchase		1,361,585		-		1,361,585		-
Advances from Federal Home Loan Bank		146,789		-		146,789		-
Other borrowings		14,573		-		-		14,573
Long-term debt		98,392		-		98,392		-

13. Goodwill and Goodwill Impairment

The Company’s policy is to assess goodwill for impairment at the reporting unit level on an annual basis or between annual assessments if a triggering event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount.  Impairment is the condition that exists when the carrying amount of goodwill exceeds its implied fair value.  

The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in ASC Topic 350. The two-step impairment testing process, if needed, begins by assigning net assets and goodwill to our three reporting units— Commercial Lending, Retail Banking, and East Coast Operations.  The Company then completes “step one” of the impairment test by comparing the fair value of each reporting unit (as determined based on the discussion below) with the recorded book value (or “carrying amount”) of its net assets, with goodwill included in the computation of the carrying amount.  If the fair value of a reporting unit exceeds its carrying amount, goodwill of that reporting unit is not considered impaired, and “step two” of the impairment test is not necessary.  If the carrying amount of a reporting unit exceeds its fair value, step two of the impairment test is performed to determine the amount of impairment.  Step two of the impairment test compares the carrying amount of the reporting unit’s goodwill to the “implied fair value” of that goodwill.  The implied fair value of goodwill is computed by assuming that all assets and liabilities of the reporting unit would be adjusted to the current fair value, with the offset as an adjustment to goodwill.  This adjusted goodwill balance is the implied fair value used in step two.  An impairment charge is recognized for the amount by which the carrying amount of goodwill exceeds its implied fair value.

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At September 30, 2013, the Company’s market capitalization was above book value and there was no triggering event that required the Company to assess goodwill for impairment as of an interim date.

14. Financial Derivatives

It is the policy of the Company not to speculate on the future direction of interest rates. However, the Company enters into financial derivatives in order to seek mitigation of exposure to interest rate risks related to our interest-earning assets and interest-bearing liabilities. We believe that these transactions, when properly structured and managed, may provide a hedge against inherent interest rate risk in the Company’s assets or liabilities and against risk in specific transactions. In such instances, the Company may protect its position through the purchase or sale of interest rate futures contracts for a specific cash or interest rate risk position. Other hedge transactions may be implemented using interest rate swaps, interest rate caps, floors, financial futures, forward rate agreements, and options on futures or bonds. Prior to considering any hedging activities, we seek to analyze the costs and benefits of the hedge in comparison to other viable alternative strategies. All hedges will require an assessment of basis risk and must be approved by the Bank’s Investment Committee.

The Company follows ASC Topic 815 that establishes accounting and reporting standards for financial derivatives, including certain financial derivatives embedded in other contracts, and hedging activities. It requires the recognition of all financial derivatives as assets or liabilities in the Company’s consolidated balance sheet and measurement of those financial derivatives at fair value. The accounting treatment of changes in fair value is dependent upon whether or not a financial derivative is designated as a hedge and, if so, the type of hedge.

The Company enters into foreign exchange forward contracts and foreign currency option contracts with various counter parties to mitigate the risk of fluctuations in foreign currency exchange rates for foreign exchange certificates of deposit, foreign exchange contracts, or foreign currency option contracts entered into with our clients. These contracts are not designated as hedging instruments and are recorded at fair value in our condensed consolidated balance sheets. Changes in the fair value of these contracts as well as the related foreign exchange certificates of deposit, foreign exchange contracts or foreign currency option contracts are recognized immediately in net income as a component of non-interest income. Period end gross positive fair values are recorded in other assets and gross negative fair values are recorded in other liabilities. At September 30, 2013, the notional amount of option contracts totaled $101,000 with a net negative fair value of $1,000. Spot and forward contracts in the total notional amount of $277.4 million had a positive fair value of $5.8 million at September 30, 2013. Spot and forward contracts in the total notional amount of $185.6 million had a negative fair value of $4.7 million at September 30, 2013. At December 31, 2012, the notional amount of option contracts totaled $209,000 with a net negative fair value of $2,000. Spot and forward contracts in the total notional amount of $188.1 million had a positive fair value of $2.9 million at December 31, 2012. Spot and forward contracts in the total notional amount of $133.7 million had a negative fair value of $1.6 million at December 31, 2012.

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15. Balance Sheet Offsetting

Certain financial instruments, including resell and repurchase agreements, securities lending arrangements and derivatives, may be eligible for offset in the consolidated balance sheet and/or subject to master netting arrangements or similar agreements. The Company’s securities sold with agreement to repurchase and derivative transactions with upstream financial institution counter parties are generally executed under International Swaps and Derivative Association master agreements which include “right of set-off” provisions. In such cases there is generally a legally enforceable right to offset recognized amounts and there may be an intention to settle such amounts on a net basis. Nonetheless, the Company does not generally offset such financial instruments for financial reporting purposes.

Financial instruments that are eligible for offset in the condensed consolidated balance sheets, as of September 30, 2013, and December 31, 2012, are presented in the following tables:

							Gross Amounts Not Offset in the Statement of Financial Position
(In thousands)	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Balance Sheet		Net Amounts of Liabilities Presented in the Balance Sheet		Financial Instruments		Collateral Posted			Net Amount
September 30, 2013
Securities sold under agreements to repurchase	$	800,000	$	-	$	800,000	$	-	$	(800,000	)	$	-
December 31, 2012
Securities sold under agreements to repurchase	$	1,250,000	$	-	$	1,250,000	$	-	$	(1,250,000	)	$	-

16. Stockholders’ Equity

Total equity was $1.44 billion at September 30, 2013, a decrease of $194.2 million, or 11.9%, from $1.63 billion at December 31, 2012, primarily due to the redemptions in two equal installments on March 20, 2013 and on September 30, 2013 of Bancorp’s $258 million of Series B Preferred Stock issued under the U.S. Treasury's TARP Capital Purchase Program and increases in unrealized losses on securities available for sale of $21.6 million offset by $91.7 million in net income.

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The accumulated other comprehensive loss as of September 30, 2013, was all from unrealized losses on securities available-for-sale. Activity in accumulated other comprehensive income, net of tax, and reclassification out of accumulated other comprehensive income for the three months and nine months ended September 30, 2013, was as follows:

	Three months ended September 30, 2013									Nine months ended September 30, 2013
	Pre-tax			Tax expense			Net-of-tax			Pre-tax			Tax expense			Net-of-tax
	(In thousands)
Beginning balance, net of tax							$	(15,073	)							$	465
Net unrealized losses arising during the period	$	(1,854	)	$	(780	)	$	(1,074	)	$	(48,245	)	$	(20,282	)	$	(27,963	)
Reclassification adjustment for net securities losses included in net income		(8,688	)		(3,652	)		(5,036	)		(27,157	)		(11,417	)		(15,740	)
Net unrealized gains arising from transferring securities held-to-maturity to available-for-sale		-			-			-			38,052			15,997			22,055
Total other comprehensive income	$	(10,542	)	$	(4,432	)	$	(6,110	)	$	(37,350	)	$	(15,702	)	$	(21,648	)
Ending balance, net of tax							$	(21,183	)							$	(21,183	)

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion is given based on the assumption that the reader has access to and has read the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

Critical Accounting Policies

The discussion and analysis of the Company’s unaudited condensed consolidated balance sheets and results of operations are based upon its unaudited condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these condensed consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues, and expenses, and related disclosures of contingent assets and liabilities at the date of our financial statements. Actual results may differ from these estimates under different assumptions or conditions.

Management of the Company considers the following to be critical accounting policies:

Accounting for the allowance for credit losses involves significant judgments and assumptions by management, which have a material impact on the carrying value of net loans. The judgments and assumptions used by management are based on historical experience and other factors, which are believed to be reasonable under the circumstances as described in “Allowance for Credit Losses” under “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

Accounting for investment securities involves significant judgments and assumptions by management, which have a material impact on the carrying value of securities and the recognition of any “other-than-temporary” impairment to our investment securities. The judgments and assumptions used by management are described in “Investment Securities” under “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

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Accounting for income taxes involves significant judgments and assumptions by management, which have a material impact on the amount of taxes currently payable and the income tax expense recorded in the financial statements. The judgments and assumptions used by management are described in “Income Taxes” under “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

Accounting for goodwill and goodwill impairment involves significant judgments and assumptions by management, which have a material impact on the amount of goodwill and noninterest expense recorded in the financial statements. The judgments and assumptions used by management are described in “Goodwill and Goodwill Impairment” under “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

Accounting for other real estate owned involves significant judgments and assumptions by management, which have a material impact on the value of other real estate owned and noninterest expense recorded in the financial statements. The judgments and assumptions used by management are described in “Valuation of Other Real Estate Owned (OREO)” under “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

Highlights

● Redemption on September 30, 2013, of the remaining $129 million of the Company’s preferred stock issued under the U.S. Treasury's TARP Capital Purchase Program.

● Net recoveries of loans were $3.6 million in the third quarter of 2013, compared to net charge-offs of $7.7 million the same quarter a year ago and net recoveries of $939,000 in the second quarter of 2013.

Quarterly Statement of Operations Review

Net Income

Net income available to common stockholders for the quarter ended September 30, 2013, was $30.0 million, an increase of $3.8 million, or 14.5%, compared to a net income available to common stockholders of $26.2 million for the same quarter a year ago. Diluted earnings per share available to common stockholders for the quarter ended September 30, 2013, was $0.38 compared to $0.33 for the same quarter a year ago due primarily to decreases in litigation expenses, the reversal for credit losses, increases in net interest income, increases in wealth management commissions and decreases in other real estate owned (“OREO”) expenses offset by increases in salaries and employee benefits and costs associated with debt redemption.

Return on average stockholders’ equity was 8.37% and return on average assets was 1.22% for the quarter ended September 30, 2013, compared to a return on average stockholders’ equity of 7.62% and a return on average assets of 1.14% for the same quarter a year ago.

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Financial Performance

	Third Quarter
	2013			2012
Net income (million)	$	32.5		$	30.4
Net income available to common stockholders (million)	$	30.0		$	26.2
Basic earnings per common share	$	0.38		$	0.33
Diluted earnings per common share	$	0.38		$	0.33
Return on average assets		1.22	%		1.14	%
Return on average total stockholders' equity		8.37	%		7.62	%
Efficiency ratio		51.01	%		49.82	%

 

Net Interest Income Before Provision for Credit Losses

Net interest income before provision for credit losses increased $2.2 million, or 2.7%, to $82.6 million during the third quarter of 2013 compared to $80.4 million during the same quarter a year ago. The increase was due primarily to the decrease in interest expense from time deposits and securities sold under agreements to repurchase offset by the decrease in interest income from investment securities.

The net interest margin, on a fully taxable-equivalent basis, was 3.35% for the third quarter of 2013, compared to 3.30% for the second quarter of 2013, and 3.26% for the third quarter of 2012. The decrease in the interest expense on time deposits and securities sold under agreements to repurchase offset by decreases in earnings on investment securities and loans contributed to the increase in the net interest margin compared to the third quarter of 2012.

For the third quarter of 2013, the yield on average interest-earning assets was 4.15%, on a fully taxable-equivalent basis, the cost of funds on average interest-bearing liabilities was 1.05%, and the cost of interest bearing deposits was 0.64%. In comparison, for the third quarter of 2012, the yield on average interest-earning assets was 4.32%, on a fully taxable-equivalent basis, the cost of funds on average interest-bearing liabilities was 1.35%, and the cost of interest bearing deposits was 0.72%. The interest spread, defined as the difference between the yield on average interest-earning assets and the cost of funds on average interest-bearing liabilities, increased 13 basis points to 3.10% for the quarter ended September 30, 2013, from 2.97% for the same quarter a year ago, primarily for the reasons discussed above.

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The following table sets forth information concerning average interest-earning assets, average interest-bearing liabilities, and the average yields and rates paid on those assets and liabilities for the three months ended September 30, 2013, and 2012. Average outstanding amounts included in the table are daily averages.

Interest-Earning Assets and Interest-Bearing Liabilities
	Three months ended September 30,
	2013								2012
(Dollars in thousands)	Average Balance			Interest Income/ Expense		Average Yield/ Rate (1)(2)			Average Balance			Interest Income/ Expense		Average Yield/ Rate (1)(2)
Interest earning assets:
Commercial loans	$	2,213,240		$	21,733		3.90	%	$	1,996,906		$	21,057		4.20	%
Residential mortgage loans		1,440,198			16,650		4.62			1,241,308			15,059		4.85
Commercial mortgage loans		3,895,436			49,941		5.09			3,684,719			51,217		5.53
Real estate construction loans		164,639			2,481		5.98			184,629			2,596		5.59
Other loans and leases		18,654			33		0.70			15,007			95		2.52
Total loans and leases (1)		7,732,167			90,838		4.66			7,122,569			90,024		5.03
Taxable securities		1,869,101			10,868		2.31			2,188,205			15,157		2.76
Tax-exempt securities (3)		-			-		-			131,024			1,594		4.84
Federal Home Loan Bank stock		30,938			449		5.76			46,702			57		0.49
Interest bearing deposits		160,985			307		0.76			394,830			471		0.47
Federal funds sold and securities purchased under agreements to resell		-			-		-			6,413			2		0.12
Total interest-earning assets		9,793,191			102,462		4.15			9,889,743			107,305		4.32
Non-interest earning assets:
Cash and due from banks		136,315								138,581
Other non-earning assets		783,043								810,595
Total non-interest earning assets		919,358								949,176
Less: Allowance for loan losses		(180,693	)							(192,192	)
Deferred loan fees		(12,365	)							(8,859	)
Total assets	$	10,519,491							$	10,637,868
Interest bearing liabilities:
Interest bearing demand accounts	$	647,037		$	262		0.16		$	535,708		$	207		0.15
Money market accounts		1,234,091			1,818		0.58			1,041,986			1,440		0.55
Savings accounts		471,849			86		0.07			464,091			92		0.08
Time deposits		4,069,612			8,206		0.80			4,129,075			9,492		0.91
Total interest-bearing deposits		6,422,589			10,372		0.64			6,170,860			11,231		0.72
Securities sold under agreements to repurchase		855,435			8,402		3.90			1,358,152			13,734		4.02
Other borrowings		82,822			150		0.72			40,030			74		0.74
Long-term debt		171,136			930		2.16			171,136			1,291		3.00
Total interest-bearing liabilities		7,531,982			19,854		1.05			7,740,178			26,330		1.35
Non-interest bearing liabilities:
Demand deposits		1,353,451								1,209,253
Other liabilities		86,452								95,741
Total equity		1,547,606								1,592,696
Total liabilities and equity	$	10,519,491							$	10,637,868
Net interest spread (4)							3.10	%							2.97	%
Net interest income (4)				$	82,608							$	80,975
Net interest margin (4)							3.35	%							3.26	%

(1) Yields and amounts of interest earned include loan fees. Non-accrual loans are included in the average balance.

(2) Calculated by dividing net interest income by average outstanding interest-earning assets.

(3) The average yield has been adjusted to a fully taxable-equivalent basis for certain securities of states and political subdivisions and other securities held using a statutory federal income tax rate of 35%.

(4) Net interest income, net interest spread, and net interest margin on interest-earning assets have been adjusted to a fully taxable-equivalent basis using a statutory federal income tax rate of 35%.

 

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The following table summarizes the changes in interest income and interest expense attributable to changes in volume and changes in interest rates:

Taxable-Equivalent Net Interest Income — Changes Due to Rate and Volume(1)
	Three months ended September 30, 2013-2012 Increase (Decrease) in Net Interest Income Due to:
(Dollars in thousands)	Changes in Volume			Changes in Rate			Total Change
Interest-earning assets:
Loans and leases		7,497			(6,683	)		814
Taxable securities		(2,026	)		(2,263	)		(4,289	)
Tax-exempt securities (2)		(1,594	)		-			(1,594	)
Federal Home Loan Bank stock		(25	)		417			392
Deposits with other banks		(360	)		196			(164	)
Federal funds sold and securities purchased under agreements to resell		(2	)		-			(2	)
Total decrease in interest income		3,490			(8,333	)		(4,843	)
Interest-bearing liabilities:
Interest bearing demand accounts		45			10			55
Money market accounts		282			96			378
Savings accounts		2			(8	)		(6	)
Time deposits		(133	)		(1,153	)		(1,286	)
Securities sold under agreements to repurchase		(4,917	)		(415	)		(5,332	)
Other borrowed funds		78			(2	)		76
Long-term debt		-			(361	)		(361	)
Total decrease in interest expense		(4,643	)		(1,833	)		(6,476	)
Changes in net interest income	$	8,133		$	(6,500	)	$	1,633

(1) Changes in interest income and interest expense attributable to changes in both volume and rate have been allocated proportionately to changes due to volume and changes due to rate.

(2) The amount of interest earned on certain securities of states and political subdivisions and other securities held has been adjusted to a fully taxable-equivalent basis using a statutory federal income tax rate of 35%.

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Provision for Credit Losses

Provision for credit losses was a credit of $3.0 million for the third quarter of 2013 compared to no provision for credit losses in the third quarter of 2012. The provision for credit losses was based on the review of the adequacy of the allowance for loan losses at September 30, 2013, and reflected the net recoveries during the third quarter of 2013 of $3.6 million. The provision or reversal for credit losses represents the charge against or benefit toward current earnings that is determined by management, through a credit review process, as the amount needed to establish an allowance that management believes to be sufficient to absorb credit losses inherent in the Company’s loan portfolio, including unfunded commitments. The following table summarizes the charge-offs and recoveries for the periods indicated:

	Three months ended September 30,					Nine months ended September 30,
	2013			2012		2013			2012
	(In thousands)
Charge-offs:
Commercial loans	$	200		$	7,387	$	4,580		$	14,479
Construction loans- residential		-			-		-			391
Construction loans- other		-			39		-			774
Real estate loans (1)		554			1,441		2,873			12,351
Real estate- land loans		-			2		1,318			101
Installment and other loans		-			-		-			25
Total charge-offs		754			8,869		8,771			28,121
Recoveries:
Commercial loans		436			331		2,015			1,230
Construction loans- residential		1,046			449		1,200			3,712
Construction loans- other		190			28		1,056			1,913
Real estate loans (1)		1,225			317		4,229			6,784
Real estate- land loans		1,447			12		2,101			1,178
Installment and other loans		-			-		11			3
Total recoveries		4,344			1,137		10,612			14,820
Net (recoveries)/charge-offs	$	(3,590	)	$	7,732	$	(1,841	)	$	13,301

(1) Real estate loans include commercial mortgage loans, residential mortgage loans and equity lines.

Non-Interest Income

Non-interest income, which includes revenues from depository service fees, letters of credit commissions, securities gains (losses), gains (losses) on loan sales, wire transfer fees, and other sources of fee income, was $16.7 million for the third quarter of 2013, an increase of $1.1 million, or 7.0%, compared to $15.6 million for the third quarter of 2012. The increase in non-interest income in the third quarter of 2013 was primarily due to an increase of $630,000 in commissions from wealth management and an increase of $267,000 in other loan fees.

Non-Interest Expense

Non-interest expense increased $2.9 million, or 5.9%, to $50.7 million in the third quarter of 2013 compared to $47.8 million in the same quarter a year ago. The efficiency ratio was 51.01% in the third quarter of 2013 compared to 49.82% for the same quarter a year ago.

Prepayment penalties increased to $6.9 million in the third quarter of 2013 compared to $3.5 million in the same quarter a year ago. The Company prepaid securities sold under agreements to repurchase of $150.0 million in the third quarter of 2013 compared to $50.0 million in the same period a year ago. Salaries and employee benefits increased $4.3 million, or 23.3%, in the third quarter of 2013 compared to the same quarter a year ago primarily due to increases in bonus expenses, the hiring of new employees as well as an increase in the number of temporary employees assisting in the core system conversion. Offsetting the above increases were a $5.6 million decrease in litigation accrual expenses and a $1.3 million decrease in OREO expenses.

40

Income Taxes

The effective tax rate for the third quarter of 2013 was 36.9% compared to 36.8% in the third quarter of 2012. The effective tax rate includes the impact of the utilization of low income housing tax credits and the recognition of other tax credits.

Year-to-Date Statement of Operations Review

Net income attributable to common stockholders for the nine months ended September 30, 2013, was $81.6 million, an increase of $4.8 million, or 6.2%, compared to net income attributable to common stockholders of $76.8 million for the same period a year ago due primarily to increases in gains on sale of securities, decreases in OREO expenses, and increases in commissions from wealth management, offset by decreases in the reversal for credit losses, increases in prepayment penalties on the prepayment of securities sold under an agreement to repurchase, increases in salaries and incentive compensation expense, increases in consulting expense, and increases in legal and collection expense. Diluted earnings per share was $1.03 compared to $0.98 per share for the same period a year ago. The net interest margin for the nine months ended September 30, 2013, increased 5 basis points to 3.33% compared to 3.28% for the same period a year ago.

Return on average stockholders’ equity was 7.78% and return on average assets was 1.16% for the nine months ended September 30, 2013, compared to a return on average stockholders’ equity of 7.65% and a return on average assets of 1.12% for the same period of 2012. The efficiency ratio for the nine months ended September 30, 2013, was 52.09% compared to 52.12% for the same period a year ago.

41

The following table sets forth information concerning average interest-earning assets, average interest-bearing liabilities, and the average yields and rates paid on those assets and liabilities for the nine months ended September 30, 2013, and 2012. Average outstanding amounts included in the table are daily averages.

Interest-Earning Assets and Interest-Bearing Liabilities
	Nine months ended September 30,
	2013								2012
(Dollars in thousands)	Average Balance			Interest Income/ Expense		Average Yield/ Rate (1)(2)			Average Balance			Interest Income/ Expense		Average Yield/ Rate (1)(2)
Interest earning assets:
Commercial loans	$	2,116,193		$	63,066		3.98	%	$	1,905,101		$	60,181		4.22	%
Residential mortgage loans		1,395,749			48,806		4.66			1,207,048			44,855		4.95
Commercial mortgage loans		3,829,366			148,627		5.19			3,690,115			156,204		5.65
Real estate construction loans		167,282			6,953		5.56			200,836			7,952		5.29
Other loans and leases		15,849			105		0.89			16,874			294		2.33
Total loans and leases (1)		7,524,439			267,557		4.75			7,019,974			269,486		5.13
Taxable securities		1,977,788			34,986		2.37			2,287,967			50,046		2.92
Tax-exempt securities (3)		38,874			1,531		5.27			131,732			4,811		4.88
Federal Home Loan Bank stock		35,685			1,041		3.90			49,499			190		0.51
Interest bearing deposits		182,820			796		0.58			354,268			1,596		0.60
Federal funds sold and securities purchased under agreements to resell		-			-		-			20,018			18		0.12
Total interest-earning assets		9,759,606			305,911		4.19			9,863,458			326,147		4.42
Non-interest earning assets:
Cash and due from banks		144,992								124,037
Other non-earning assets		759,161								827,091
Total non-interest earning assets		904,153								951,128
Less: Allowance for loan losses		(181,206	)							(197,638	)
Deferred loan fees		(11,223	)							(8,289	)
Total assets	$	10,471,330							$	10,608,659
Interest bearing liabilities:
Interest bearing demand accounts	$	623,554		$	745		0.16		$	498,613		$	568		0.15
Money market accounts		1,178,812			4,990		0.57			1,012,603			4,287		0.57
Savings accounts		483,715			275		0.08			444,882			275		0.08
Time deposits		3,975,160			23,700		0.80			4,278,222			32,067		1.00
Total interest-bearing deposits		6,261,241			29,710		0.63			6,234,320			37,197		0.80
Securities sold under agreements to repurchase		1,030,403			29,778		3.86			1,385,949			42,987		4.14
Other borrowings		67,613			375		0.74			36,518			196		0.72
Long-term debt		171,136			2,778		2.17			171,136			3,895		3.04
Total interest-bearing liabilities		7,530,393			62,641		1.11			7,827,923			84,275		1.44
Non-interest bearing liabilities:
Demand deposits		1,284,579								1,130,830
Other liabilities		79,486								86,113
Total equity		1,576,872								1,563,793
Total liabilities and equity	$	10,471,330							$	10,608,659
Net interest spread (4)							3.08	%							2.98	%
Net interest income (4)				$	243,270							$	241,872
Net interest margin (4)							3.33	%							3.28	%

(1) Yields and amounts of interest earned include loan fees. Non-accrual loans are included in the average balance.

(2) Calculated by dividing net interest income by average outstanding interest-earning assets.

(3) The average yield has been adjusted to a fully taxable-equivalent basis for certain securities of states and political subdivisions and other securities held using a statutory federal income tax rate of 35%.

(4) Net interest income, net interest spread, and net interest margin on interest-earning assets have been adjusted to a fully taxable-equivalent basis using a statutory federal income tax rate of 35%.

42

The following table summarizes the changes in interest income and interest expense attributable to changes in volume and changes in interest rates:

Taxable-Equivalent Net Interest Income — Changes Due to Rate and Volume(1)
	Nine months ended September 30, 2013-2012 Increase (Decrease) in Net Interest Income Due to:
(Dollars in thousands)	Changes in Volume			Changes in Rate			Total Change
Interest-earning assets:
Loans and leases		18,578			(20,507	)		(1,929	)
Taxable securities		(6,261	)		(8,799	)		(15,060	)
Tax-exempt securities (2)		(3,636	)		356			(3,280	)
Federal Home Loan Bank stock		(67	)		918			851
Interest bearing deposits		(749	)		(51	)		(800	)
Federal funds sold and securities purchased under agreements to resell		(9	)		(9	)		(18	)
Total decrease in interest income		7,856			(28,092	)		(20,236	)
Interest-bearing liabilities:
Interest bearing demand accounts		148			29			177
Money market accounts		700			3			703
Savings accounts		23			(23	)		-
Time deposits		(2,158	)		(6,209	)		(8,367	)
Securities sold under agreements to repurchase		(10,461	)		(2,748	)		(13,209	)
Other borrowings		172			7			179
Long-term debt		-			(1,117	)		(1,117	)
Total decrease in interest expense		(11,576	)		(10,058	)		(21,634	)
Changes in net interest income	$	19,432		$	(18,034	)	$	1,398

(1) Changes in interest income and interest expense attributable to changes in both volume and rate have been allocated proportionately to changes due to volume and changes due to rate.

(2) The amount of interest earned on certain securities of states and political subdivisions and other securities held has been adjusted to a fully taxable-equivalent basis using a statutory federal income tax rate of 35%.

Balance Sheet Review

Assets

Total assets were $10.82 billion at September 30, 2013, an increase of $127.4 million, or 1.2%, from $10.69 billion at December 31, 2012, primarily due to a $402.9 million increase in loans and a $56.9 million increase in cash and due from banks offset by a $321.9 million decrease in investment securities.

Investment Securities

Investment securities represented 16.1% of total assets at September 30, 2013, compared with 19.3% of total assets at December 31, 2012. The carrying value of investment securities at September 30, 2013, was $1.74 billion compared with $2.06 billion at December 31, 2012. Securities available-for-sale are carried at fair value and had a net unrealized loss, net of tax, of $21.2 million at September 30, 2013, compared with a net unrealized gain, net of tax, of $465,000 at December 31, 2012. During the first quarter of 2013, due to the ongoing discussions regarding corporate income tax rates which could have a negative impact on the after-tax yields and fair values of the Company’s portfolio of municipal securities, the Company determined it may sell such securities in response to market conditions. As a result, the Company reclassified its municipal securities from securities held-to-maturity to securities available-for-sale. Concurrent with this reclassification, the Company also reclassified all other securities held-to-maturity, which together with the municipal securities had an amortized cost on the date of transfer of $722.5 million, to securities available-for-sale. At the reclassification date, a net unrealized gain was recorded in other comprehensive income for these securities totaling $40.5 million.

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The following table reflects the amortized cost, gross unrealized gains, gross unrealized losses, and fair value of investment securities as of September 30, 2013, and December 31, 2012:

	September 30, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
Securities Available-for-Sale
U.S. treasury securities	$	460,119	$	214	$	-	$	460,333
Mortgage-backed securities		1,131,602		9,364		45,947		1,095,019
Collateralized mortgage obligations		6,489		268		60		6,697
Asset-backed securities		127		1		-		128
Corporate debt securities		174,953		186		7,299		167,840
Mutual funds		6,000				188		5,812
Preferred stock of government sponsored entities		569		6,911				7,480
Total securities available-for-sale	$	1,779,859	$	16,944	$	53,494	$	1,743,309
Total investment securities	$	1,779,859	$	16,944	$	53,494	$	1,743,309

	December 31, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
Securities Held-to-Maturity
State and municipal securities	$	129,037	$	9,268	$	-	$	138,305
Mortgage-backed securities		634,757		40,801		-		675,558
Corporate debt securities		9,974		69		-		10,043
Total securities held-to-maturity	$	773,768	$	50,138	$	-	$	823,906
Securities Available-for-Sale
U.S. treasury securities	$	509,748	$	228	$	5	$	509,971
Mortgage-backed securities		404,505		12,194		5		416,694
Collateralized mortgage obligations		9,772		430		34		10,168
Asset-backed securities		145		-		4		141
Corporate debt securities		349,973		106		14,102		335,977
Mutual funds		6,000		79		-		6,079
Preferred stock of government sponsored entities		569		1,766		-		2,335
Trust preferred securities		9,964		151		-		10,115
Total securities available-for-sale	$	1,290,676	$	14,954	$	14,150	$	1,291,480
Total investment securities	$	2,064,444	$	65,092	$	14,150	$	2,115,386

For additional information, see Note 6 to the Company’s condensed consolidated financial statements presented elsewhere in this report.

Investment securities having a carrying value of $941.8 million at September 30, 2013, and $1.45 billion at December 31, 2012, were pledged to secure public deposits, other borrowings, treasury tax and loan, Federal Home Loan Bank advances, securities sold under agreements to repurchase, interest rate swaps, and foreign exchange transactions. 

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Loans

Gross loans were $7.83 billion at September 30, 2013, an increase of $402.9 million, or 5.4%, from $7.43 billion at December 31, 2012, primarily due to an increase of $152.9 million, or 4.1%, in commercial mortgage loans, an increase of $147.6 million, or 12.9%, in residential mortgage loans, and an increase of $110.8 million, or 5.2%, in commercial loans. The following table sets forth the classification of loans by type, mix, and percentage change as of the dates indicated:

	September 30, 2013			% of Gross Loans			December 31, 2012			% of Gross Loans			% Change
	(Dollars in thousands)
Type of Loans
Commercial loans	$	2,237,902			28.6	%	$	2,127,107			28.6	%		5.2	%
Residential mortgage loans		1,293,849			16.5			1,146,230			15.4			12.9
Commercial mortgage loans		3,921,348			50.1			3,768,452			50.7			4.1
Equity lines		173,798			2.2			193,852			2.6			(10.3	)
Real estate construction loans		189,867			2.4			180,950			2.5			4.9
Installment and other loans		15,249			0.2			12,556			0.2			21.4
Gross loans	$	7,832,013			100	%	$	7,429,147			100	%		5.4	%
Allowance for loan losses		(181,452	)					(183,322	)					(1.0	)
Unamortized deferred loan fees		(12,933	)					(10,238	)					26.3
Total loans, net	$	7,637,628					$	7,235,587						5.6	%

Non-performing Assets

Non-performing assets include loans past due 90 days or more and still accruing interest, non-accrual loans, and other real estate owned. The Company’s policy is to place loans on non-accrual status if interest and/or principal is past due 90 days or more, or in cases where management deems the full collection of principal and interest unlikely. After a loan is placed on non-accrual status, any previously accrued but unpaid interest is reversed and charged against current income and subsequent payments received are generally first applied towards the outstanding principal balance of the loan. Depending on the circumstances, management may elect to continue the accrual of interest on certain past due loans if partial payment is received and/or the loan is well collateralized and in the process of collection. The loan is generally returned to accrual status when the borrower has brought the past due principal and interest payments current and, in the opinion of management, the borrower has demonstrated the ability to make future payments of principal and interest as scheduled.

Management reviews the loan portfolio regularly for problem loans. During the ordinary course of business, management becomes aware of borrowers that may not be able to meet the contractual requirements of the loan agreements. Such loans are placed under closer supervision with consideration given to placing the loans on non-accrual status, the need for an additional allowance for loan losses, and (if appropriate) partial or full charge-off.

The ratio of non-performing assets to total assets was 1.4% at September 30, 2013, compared to 1.4% at December 31, 2012. Total non-performing assets decreased $779,000 , or 0.5%, to $150.1 million at September 30, 2013, compared to $150.9 million at December 31, 2012, primarily due to a $4.0 million, or 3.9%, decrease in non-accrual loans offset by a $3.4 million, or 7.3%, increase in OREO.

As a percentage of gross loans plus OREO, our non-performing assets decreased to 1.90% at September 30, 2013, from 2.02% at December 31, 2012. The non-performing portfolio loan coverage ratio, defined as the allowance for credit losses to non-performing loans, increased to 182.9% at September 30, 2013, from 176.7% at December 31, 2012.

45

The following table presents the changes in non-performing assets and troubled debt restructurings (TDRs) at September 30, 2013, compared to December 31, 2012, and to September 30, 2012:

(Dollars in thousands)	September 30, 2013			December 31, 2012			% Change			September 30, 2012			% Change
Non-performing assets
Accruing loans past due 90 days or more	$	499		$	630			(21	)	$	-			100
Non-accrual loans:
Construction loans- residential		3,495			2,984			17			2,342			49
Construction loans- non-residential		25,500			33,315			(23	)		7,080			260
Land loans		8,334			6,053			38			7,204			16
Commercial real estate loans, excluding land loans		27,662			29,651			(7	)		41,550			(33	)
Commercial loans		24,506			19,958			23			23,035			6
Residential mortgage loans		10,364			11,941			(13	)		13,733			(25	)
Total non-accrual loans:	$	99,861		$	103,902			(4	)	$	94,944			5
Total non-performing loans		100,360			104,532			(4	)		94,944			6
Other real estate owned		49,777			46,384			7			60,642			(18	)
Total non-performing assets	$	150,137		$	150,916			(1	)	$	155,586			(4	)
Accruing troubled debt restructurings (TDRs)	$	115,940		$	144,695			(20	)	$	170,151			(32	)
Non-accrual TDRs (included in non-accrual loans above)	$	43,608		$	47,731			(9	)	$	19,076			129
Allowance for loan losses	$	181,452		$	183,322			(1	)	$	184,438			(2	)
Allowance for off-balance sheet credit commitments		2,074			1,362			52			1,610			29
Allowance for credit losses	$	183,526		$	184,684			(1	)	$	186,048			(1	)
Total gross loans outstanding, at period-end	$	7,832,013		$	7,429,147			5		$	7,259,930			8
Allowance for loan losses to non-performing loans, at period-end		180.80	%		175.37	%					194.26	%
Allowance for loan losses to gross loans, at period-end		2.32	%		2.47	%					2.54	%
Allowance for credit losses to gross loans, at period-end		2.34	%		2.49	%					2.56	%

Non-accrual Loans

At September 30, 2013, total non-accrual loans were $99.9 million, an increase of $5.0 million, or 5.2%, from $94.9 million at September 30, 2012, and a decrease of $4.0 million, or 3.9%, from $103.9 million at December 31, 2012. The allowance for the collateral-dependent loans is calculated based on the difference between the outstanding loan balance and the value of the collateral as determined by recent appraisals, sales contracts, or other available market price information. The allowance for collateral-dependent loans varies from loan to loan based on the collateral coverage of the loan at the time of designation as non-performing. We continue to monitor the collateral coverage, based on recent appraisals, of these loans on a quarterly basis and adjust the allowance accordingly. Non-accrual loans also include those troubled debt restructurings that do not qualify for accrual status.

46

The following tables present the type of properties securing the non-accrual portfolio loans and the type of businesses the borrowers engaged in as of the dates indicated:

	September 30, 2013				December 31, 2012
	Real				Real
	Estate (1)		Commercial		Estate (1)		Commercial
	(In thousands)
Type of Collateral
Single/multi-family residence	$	20,623	$	2,041	$	20,996	$	2,073
Commercial real estate		46,399		1,366		56,895		1,433
Land		8,333		-		6,053		-
Personal property (UCC)		-		21,099		-		16,452
Total	$	75,355	$	24,506	$	83,944	$	19,958

(1) Real estate includes commercial mortgage loans, real estate construction loans, residential mortgage loans and equity lines.

	September 30, 2013				December 31, 2012
	Real				Real
	Estate (1)		Commercial		Estate (1)		Commercial
	(In thousands)
Type of Business
Real estate development	$	48,020	$	14,149	$	56,995	$	2,387
Wholesale/Retail		17,034		3,608		15,398		3,908
Food/Restaurant		588		183		562		341
Import/Export		-		6,566		-		13,309
Other		9,713		-		10,989		13
Total	$	75,355	$	24,506	$	83,944	$	19,958

(1) Real estate includes commercial mortgage loans, real estate construction loans, residential mortgage loans and equity lines.

Other Real Estate Owned 

At September 30, 2013, other real estate owned totaled $49.8 million, which increased $2.4 million, or 7.3%, compared to $46.4 million at December 31, 2012, and decreased $10.8 million, or 17.9%, compared to $60.6 million at September 30, 2012.

47

Impaired Loans

A loan is considered impaired when it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement based on current circumstances and events. The assessment for impairment occurs when and while such loans are on non-accrual as a result of delinquency status of over 90 days or receipt of information indicating that full collection of principal is doubtful, or when the loan has been restructured in a troubled debt restructuring. Those loans with a balance less than our defined selection criteria, generally a loan amount less than $500,000 (less than $100,000 for quarters before June 30, 2012), are treated as a homogeneous portfolio. If loans meeting the defined criteria are not collateral dependent, we measure the impairment based on the present value of the expected future cash flows discounted at the loan’s effective interest rate. If loans meeting the defined criteria are collateral dependent, we measure the impairment by using the loan’s observable market price or the fair value of the collateral. We obtain an appraisal to determine the amount of impairment at the date that the loan becomes impaired. The appraisals are based on “as is” or bulk sale valuations. To ensure that appraised values remain current, we generally obtain an updated appraisal every six months from qualified independent appraisers. Furthermore, if the most current appraisal is dated more than three months prior to the effective date of the impairment test, we validate the most current value with third party market data appropriate to the location and property type of the collateral. If the third party market data indicates that the value of our collateral property values has declined since the most recent valuation date, we adjust downward the value of the property to reflect current market conditions. If the fair value of the collateral, less cost to sell, is less than the recorded amount of the loan, we then recognize impairment by creating or adjusting an existing valuation allowance with a corresponding charge to the provision for loan losses. If an impaired loan is expected to be collected through liquidation of the collateral, the amount of impairment, excluding disposal costs, which range between 3% to 6% of the fair value, depending on the size of the impaired loan, is charged off against the allowance for loan losses. Non-accrual impaired loans, including TDRs, are not returned to accrual status unless the unpaid interest has been brought current and full repayment of the recorded balance is expected or if the borrower has made six consecutive monthly payments of the scheduled amounts due, and TDRs are reviewed for continued impairment until they are no longer reported as TDRs.

At September 30, 2013, recorded investment in impaired loans totaled $215.8 million and was comprised of non-accrual loans of $99.9 million, and accruing TDR loans of $115.9 million. At December 31, 2012, recorded investment in impaired loans totaled $248.6 million and was comprised of non-accrual loans of $103.9 million and accruing TDRs of $144.7 million. For impaired loans, the amounts previously charged off represent 22.2% at September 30, 2013, and 23.2% at December 31, 2012, of the contractual balances for impaired loans. As of September 30, 2013, $75.4 million, or 75.5%, of the $99.9 million non-accrual loans were secured by real estate compared to $83.9 million, or 80.8%, of the $103.9 million of non-accrual loans that were secured by real estate at December 31, 2012. In light of changing property values in the current economic fluctuation affecting the real estate markets, the Bank has obtained current appraisals, sales contracts, or other available market price information which provide updated factors in evaluating potential loss.

At September 30, 2013, $23.4 million of the $181.5 million allowance for loan losses was allocated for impaired loans and $158.1 million was allocated to the general allowance. At December 31, 2012, $12.2 million of the $183.3 million allowance for loan losses was allocated for impaired loans and $171.1 million was allocated to the general allowance.

The allowance for credit losses to non-accrual loans increased to 183.8% at September 30, 2013, from 177.8% at December 31, 2012, primarily due to decreases in non-accrual loans. Non-accrual loans also include those TDRs that do not qualify for accrual status.    

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The following table presents impaired loans and the related allowance as of the dates indicated:

	Impaired Loans
	September 30, 2013						December 31, 2012
	Unpaid Principal Balance		Recorded Investment		Allowance		Unpaid Principal Balance		Recorded Investment		Allowance
	(In thousands)
With no allocated allowance
Commercial loans	$	20,896	$	17,699	$	-	$	29,359	$	18,963	$	-
Real estate construction loans		25,438		15,135		-		9,304		7,277		-
Commercial mortgage loans		125,489		94,167		-		189,871		152,957		-
Residential mortgage loans and equity lines		2,978		2,969		-		4,303		4,229		-
Subtotal	$	174,801	$	129,970	$	-	$	232,837	$	183,426	$	-
With allocated allowance
Commercial loans	$	22,099	$	17,352	$	10,849	$	7,804	$	4,959	$	1,467
Real estate construction loans		28,847		19,694		5,691		54,718		34,856		8,158
Commercial mortgage loans		35,582		34,688		6,129		14,163		12,928		1,336
Residential mortgage loans and equity lines		15,951		14,097		693		14,264		12,428		1,222
Subtotal	$	102,479	$	85,831	$	23,362	$	90,949	$	65,171	$	12,183
Total impaired loans	$	277,280	$	215,801	$	23,362	$	323,786	$	248,597	$	12,183

Loan Interest Reserves 

In accordance with customary banking practice, construction loans and land development loans are originated where interest on the loan is disbursed from pre-established interest reserves included in the total original loan commitment. Our construction and land development loans generally include optional renewal terms after the maturity of the initial loan term. New appraisals are obtained prior to extension or renewal of these loans in part to determine the appropriate interest reserve to be established for the new loan term. Loans with interest reserves are underwritten to the same criteria, including loan to value and, if applicable, pro forma debt service coverage ratios, as loans without interest reserves. Construction loans with interest reserves are monitored on a periodic basis to gauge progress towards completion. Interest reserves are frozen if it is determined that additional draws would result in a loan to value ratio that exceeds policy maximums based on collateral property type. Our policy limits in this regard are consistent with supervisory limits and range from 65% in the case of land to 85% in the case of one to four family residential construction projects.

As of September 30, 2013, construction loans of $129.8 million were disbursed with pre-established interest reserves of $17.9 million compared to $51.8 million of such loans disbursed with pre-established interest reserves of $9.7 million at December 31, 2012.  The balance for construction loans with interest reserves which have been extended was $12.2 million with pre-established interest reserves of $2.7 million at September 30, 2013, compared to $4.0 million with pre-established interest reserves of $314,000, at December 31, 2012.  Land loans of $24.3 million were disbursed with pre-established interest reserves of $2.7 million at September 30, 2013, compared to $11.2 million land loans disbursed with pre-established interest reserves of $978,000 at December 31, 2012.  The balance for land loans with interest reserves which have been extended was $1.7 million with pre-established interest reserves of $53,000 at September 30, 2013, and zero at December 31, 2012. 

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At September 30, 2013, the Bank had no loans on non-accrual status with available interest reserves.  At September 30, 2013, $3.5 million of non-accrual residential construction loans, $25.5 million of non-accrual non-residential construction loans, and $32,000 of non-accrual land loans had been originated with pre-established interest reserves.  At December 31, 2012, the Bank had no loans on non-accrual status with available interest reserves.  At December 31, 2012, $3.0 million of non-accrual residential construction loans, $33.3 million of non-accrual non-residential construction loans, and $4.2 million of non-accrual land loans had been originated with pre-established interest reserves.   While loans with interest reserves are typically expected to be repaid in full according to the original contractual terms, some loans require one or more extensions beyond the original maturity.  Typically, these extensions are required due to construction delays, delays in sales or lease of property, or some combination of these two factors.

Loan Concentration

Most of the Company’s business activities are with customers located in the predominantly Asian areas of Southern and Northern California; New York City, New York; Dallas and Houston, Texas; Seattle, Washington; Boston, Massachusetts; Chicago, Illinois; Edison, New Jersey; Las Vegas, Nevada, and Hong Kong. The Company has no specific industry concentration, and generally its loans are collateralized with real property or other pledged collateral of the borrowers. Loans are generally expected to be paid off from the operating profits of the borrowers, refinancing by another lender, or through sale by the borrowers of the secured collateral. There were no loan concentrations to multiple borrowers in similar activities which exceeded 10% of total loans as of September 30, 2013, or as of December 31, 2012.

The federal banking regulatory agencies issued final guidance on December 6, 2006, regarding risk management practices for financial institutions with high or increasing concentrations of commercial real estate ("CRE") loans on their balance sheets. The regulatory guidance reiterates the need for sound internal risk management practices for those institutions that have experienced rapid growth in CRE lending, have notable exposure to specific types of CRE, or are approaching or exceeding the supervisory criteria used to evaluate the CRE concentration risk, but the guidance is not to be construed as a limit for CRE exposure. The supervisory criteria are: (1) total reported loans for construction, land development, and other land represent 100% of the institution’s total risk-based capital, and (2) both total CRE loans represent 300% or more of the institution’s total risk-based capital and the institution’s CRE loan portfolio has increased 50% or more within the last thirty-nine months. Total loans for construction, land development, and other land represented 17.2% of total risk-based capital as of September 30, 2013, and 19.2% as of December 31, 2012. Total CRE loans represented 234% of total risk-based capital as of September 30, 2013, and 228% as of December 31, 2012 and were below the Bank’s internal limit for CRE loans of 300% of total capital at both dates.

Allowance for Credit Losses

The Bank maintains the allowance for credit losses at a level that is considered adequate to absorb the estimated and known risks in the loan portfolio and off-balance sheet unfunded credit commitments. Allowance for credit losses is comprised of the allowance for loan losses and the reserve for off-balance sheet unfunded credit commitments. With this risk management objective, the Bank’s management has an established monitoring system that is designed to identify impaired and potential problem loans, and to permit periodic evaluation of impairment and the adequacy level of the allowance for credit losses in a timely manner.

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In addition, the Bank’s Board of Directors has established a written credit policy that includes a credit review and control system which it believes should be effective in ensuring that the Bank maintains an adequate allowance for credit losses. The Board of Directors provides oversight for the allowance evaluation process, including quarterly evaluations, and determines whether the allowance is adequate to absorb losses in the credit portfolio. The determination of the amount of the allowance for credit losses and the provision for credit losses is based on management’s current judgment about the credit quality of the loan portfolio and takes into consideration known relevant internal and external factors that affect collectibility when determining the appropriate level for the allowance for credit losses. The nature of the process by which the Bank determines the appropriate allowance for credit losses requires the exercise of considerable judgment. Additions to the allowance for credit losses are made by charges to the provision for credit losses. While management utilizes its best judgment based on the information available, the ultimate adequacy of the allowance is dependent upon a variety of factors beyond the Bank’s control, including the performance of the Bank’s loan portfolio, the economy, changes in interest rates, and the view of the regulatory authorities toward loan classifications. Identified credit exposures that are determined to be uncollectible are charged against the allowance for credit losses. Recoveries of previously charged off amounts, if any, are credited to the allowance for credit losses. A weakening of the economy or other factors that adversely affect asset quality could result in an increase in the number of delinquencies, bankruptcies, or defaults, and a higher level of non-performing assets, net charge-offs, and provision for credit losses in future periods.

The allowance for loan losses was $181.4 million and the allowance for off-balance sheet unfunded credit commitments was $2.1 million at September 30, 2013, which represented the amount believed by management to be sufficient to absorb credit losses inherent in the loan portfolio, including unfunded commitments. The allowance for credit losses, which is the sum of the allowances for loan losses and for off-balance sheet unfunded credit commitments, was $183.5 million at September 30, 2013, compared to $184.7 million at December 31, 2012, a decrease of $1.2 million, or 0.6%. The allowance for credit losses represented 2.34% of period-end gross loans and 182.9% of non-performing loans at September 30, 2013. The comparable ratios were 2.49% of period-end gross loans and 176.7% of non-performing loans at December 31, 2012. The following table sets forth information relating to the allowance for loan losses, charge-offs, recoveries, and the reserve for off-balance sheet credit commitments for the periods indicated:

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	Three months ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
	(Dollars in thousands)
Allowance for Loan Losses
Balance at beginning of period	$	179,733		$	192,274		$	183,322		$	206,280
Provision/(reversal) for credit losses		(3,000	)		-			(3,000	)		(9,000	)
Transfers from/(to) reserve for off-balance sheet credit commitments		1,129			(104	)		(711	)		459
Charge-offs :
Commercial loans		(200	)		(7,387	)		(4,580	)		(14,479	)
Construction loans-residential		-			-			-			(391	)
Construction loans-other		-			(39	)		-			(774	)
Real estate loans		(554	)		(1,441	)		(2,873	)		(12,351	)
Land loans		-			(2	)		(1,318	)		(101	)
Installment loans and other loans		-			-			-			(25	)
Total charge-offs		(754	)		(8,869	)		(8,771	)		(28,121	)
Recoveries:
Commercial loans		436			331			2,015			1,230
Construction loans-residential		1,046			449			1,200			3,712
Construction loans-other		190			28			1,056			1,913
Real estate loans		1,225			317			4,229			6,784
Land loans		1,447			12			2,101			1,178
Installment loans and other loans		-			-			11			3
Total recoveries		4,344			1,137			10,612			14,820
Balance at end of period	$	181,452		$	184,438		$	181,452		$	184,438
Reserve for off-balance sheet credit commitments
Balance at beginning of period	$	3,202		$	1,506		$	1,362		$	2,069
Provision/(reversal) for credit losses/transfers		(1,128	)		104			712			(459	)
Balance at end of period	$	2,074		$	1,610		$	2,074		$	1,610
Average loans outstanding during period ended	$	7,732,167		$	7,122,221		$	7,524,439		$	7,018,800
Total gross loans outstanding, at period-end	$	7,832,013		$	7,259,930		$	7,832,013		$	7,259,930
Total non-performing loans, at period-end	$	100,360		$	94,944		$	100,360		$	94,944
Ratio of net charge-offs to average loans outstanding during the period		-0.18	%		0.43	%		-0.03	%		0.25	%
Provision for loan losses to average loans outstanding during the period		-0.15	%		0.00	%		-0.05	%		-0.17	%
Allowance for loan losses to non-performing loans at period-end		180.80	%		195.96	%		180.80	%		195.96	%
Allowance for loan losses to gross loans at period-end		2.32	%		2.56	%		2.32	%		2.56	%

Our allowance for loan losses consists of the following:

 •  Specific allowance: For impaired loans, we provide specific allowances for loans that are not collateral dependent based on an evaluation of the present value of the expected future cash flows discounted at the loan’s effective interest rate and for loans that are collateral dependent based on the fair value of the underlying collateral determined by the most recent valuation information received, which may be adjusted based on factors such as changes in market conditions from the time of valuation. If the measure of the impaired loan is less than the recorded investment in the loan, the deficiency will be charged off against the allowance for loan losses or, alternatively, a specific allocation will be established.

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• General allowance: The unclassified portfolio is segmented on a group basis. Segmentation is determined by loan type and common risk characteristics. The non-impaired loans are grouped into 23 segments: two commercial segments, ten commercial real estate segments, three residential construction segments, three non-residential construction segments, one SBA segment, one installment loans segment, one residential mortgage segment, one equity lines of credit segment, and one overdrafts segment. The allowance is provided for each segmented group based on the group’s historical loan loss experience aggregated based on loan risk classifications which takes into account the current financial condition of the borrowers and guarantors, the prevailing value of the underlying collateral if collateral dependent, charge-off history, management’s knowledge of the portfolio, general economic conditions, environmental factors including the trends in delinquency and non-accrual, and other significant factors, such as the national and local economy, volume and composition of the portfolio, strength of management and loan staff, underwriting standards, and concentration of credit. In addition, management reviews reports on past-due loans to ensure appropriate classifications. During the second quarter of 2009, in light of the continued deterioration in the economy and the increases in non-accrual loans and charge-offs, and based in part on regulatory considerations, we shortened the period used in the migration analysis from five years to four years to better reflect the impact of the most recent charge-offs, which increased the allowance for loan losses by $3.9 million; we increased the general allowance to reflect the higher loan delinquency trends, the weaker national and local economy, and the increased difficulty in assigning loan grades, which increased the allowance for loan losses by $13.2 million, and we also applied the environmental factors described above to loans rated Minimally Acceptable, Special Mention and Substandard, which increased the allowance for loan losses by $11.8 million. During the fourth quarter of 2009, we changed our migration loss analysis to reduce the weighting of the first two years of the four-year migration analysis by half to better reflect the impact of more recent losses, and further segmented the construction loan portfolios into three geographic segments. The changes made during the fourth quarter of 2009 did not have a significant impact on the allowance for loan losses. During the first quarter of 2010, we increased the number of segments for commercial real estate loans from one to ten. In addition, we changed our migration loss analysis for loans rated Pass to use as the reserve factor the total weighted average losses during the last four years for each loan segment as well as the weighting for the four-year migration so that the first two years are weighted one-third and the most recent two years are weighted two-thirds. The changes made during the first quarter of 2010 increased the allowance for loan losses by $10.4 million. During the second quarter of 2010, we further refined our methodology to give greater weighting to the most recent twelve months of charge-offs in the calculation of the loan loss reserve percentage for Pass rated loans, which increased the allowance for loan losses by $10.4 million; we discontinued the weighting in the four-year migration analysis for loans rated lower than Pass, which increased the allowance for loan losses by $7.1 million; and we increased the environmental factors for purchased syndicated loans, which increased the allowance for loan losses by $2.0 million. During the first quarter of 2011, we combined the number of segments for construction loans from nine to two by consolidating the previous three geographic groups of East Coast, Texas and all other regions into one bankwide region in light of the convergence of credit quality for construction loans of the three separate regions, which increased the allowance for loan losses by $4.8 million.

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The table set forth below reflects management’s allocation of the allowance for loan losses by loan category and the ratio of each loan category to the total average loans as of the dates indicated:

(Dollars in thousands)	September 30, 2013					December 31, 2012
			Percentage of					Percentage of
			Loans in Each					Loans in Each
			Category					Category
			to Average					to Average
Type of Loan:	Amount		Gross Loans			Amount		Gross Loans
Commercial loans	$	66,736		28.1	%	$	66,101		27.4	%
Residential mortgage loans (1)		11,942		18.6			11,703		17.4
Commercial mortgage loans		86,088		50.9			82,473		52.2
Real estate construction loans		16,651		2.2			23,017		2.8
Installment and other loans		35		0.2			28		0.2
Total	$	181,452		100	%	$	183,322		100	%

 

(1) Residential mortgage loans includes equity lines.

The allowance allocated to commercial loans was $66.7 million at September 30, 2013, compared to $66.1 million at December 31, 2012. The increases is due primarily to increases in commercial loans.

The allowance allocated to commercial mortgage loans increased from $82.5 million at December 31, 2012, to $86.1 million at September 30, 2013, which was due primarily to increases in commercial mortgage loans. The overall allowance for total commercial mortgage loans was 2.2% at September 30, 2013, and 2.2% at December 31, 2012.

The allowance allocated for construction loans decreased to $16.7 million, or 8.8%, of construction loans at September 30, 2013, compared to $23.0 million, or 12.7%, of construction loans at December 31, 2012, primarily due to the repayment of classified construction loans and higher appraised values for collateral securing two nonaccrual loans.

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Deposits

Total deposits were $7.92 billion at September 30, 2013, an increase of $535.3 million, or 7.3%, from $7.38 billion at December 31, 2012, primarily due to a $245.6 million, or 38.1%, increase in time deposits under $100,000, a $116.4 million, or 9.8%, increase in money market deposits, a $116.0 million, or 9.1%, increase in non-interest bearing demand deposits, and a $60.8 million, or 10.2%, increase in NOW deposits, offset by a $27.9 million, or 0.9%, decrease in time deposits of $100,000 or more. Increases in time deposits under $100,000 were primarily due to increases in brokered time deposits. The following table displays the deposit mix as of the dates indicated:

 

	September 30, 2013		% of Total			December 31, 2012		% of Total
	(Dollars in thousands)
Deposits
Non-interest-bearing demand deposits	$	1,385,430		17.5	%	$	1,269,455		17.2	%
NOW deposits		653,903		8.3			593,133		8.0
Money market deposits		1,303,121		16.4			1,186,771		16.1
Savings deposits		498,246		6.3			473,805		6.4
Time deposits under $100,000		889,828		11.2			644,191		8.7
Time deposits of $100,000 or more		3,188,015		40.3			3,215,870		43.6
Total deposits	$	7,918,543		100.0	%	$	7,383,225		100.0	%

Borrowings

Borrowings include federal funds purchased, securities sold under agreements to repurchase, funds obtained as advances from the Federal Home Loan Bank (“FHLB”) of San Francisco, and borrowings from other financial institutions.

Securities sold under agreements to repurchase were $800 million with a weighted average rate of 3.87% at September 30, 2013, compared to $1.3 billion with a weighted average rate of 3.84% at December 31, 2012. In 2012, the Company modified $200.0 million of securities sold under agreements to repurchase by extending the term by an additional four years on average, reducing the rate by an average of 168 basis points and removing the callable feature. In 2012, the Company prepaid securities sold under agreements to repurchase totaling $150 million with a weighted average rate of 4.43% and incurred prepayment penalties of $9.4 million. In the first nine months of 2013, the Company prepaid securities sold under agreements to repurchase totaling $450 million with a weighted average rate of 3.79% and incurred prepayment penalties of $22.6 million. Five floating-to-fixed rate agreements totaling $300.0 million have initial floating rates for a period of time ranging from six months to one year, with floating rates ranging from the three-month LIBOR minus 200 basis points to the three-month LIBOR rate minus 340 basis points. Thereafter, the rates are fixed for the remainder of the term, with interest rates ranging from 4.78% to 5.07%. After the initial floating rate term, the counter parties have the right to terminate the transaction at par at the fixed rate reset date and quarterly thereafter. Six fixed-to-floating rate agreements totaling $300.0 million have initial fixed rates ranging from 1.00% to 3.50% with initial fixed rate terms ranging from six months to 18 months. For the remaining term, the rates float at 8% minus the three-month LIBOR rate with a maximum rate ranging from 3.50% to 3.75% and minimum rate of 0.0%. After the initial fixed rate term, the counter parties have the right to terminate the transaction at par at the floating rate reset date and quarterly thereafter. The table below provides summary data for the $600 million of callable securities sold under agreements to repurchase as of September 30, 2013:

(Dollars in millions)	Fixed-to-floating						Floating-to-fixed				Total
Rate type	Float Rate						Fixed Rate
Rate index	8% minus 3 month LIBOR
Maximum rate		3.75%		3.50%		3.50%
Minimum rate		0.0%		0.0%		0.0%
No. of agreements		1		2		3		1		4		11
Amount	$	50.0	$	100.0	$	150.0	$	100.0	$	200.0	$	600.0
Weighted average rate		3.75%		3.50%		3.50%		4.78%		5.00%		4.24%
Final maturity	2014		2014		2015		2014		2017

 

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The table below provides summary data for non-callable fixed rate securities sold under agreements to repurchase as of September 30, 2013:

	No. of		Amount		Weighted Average
Maturity	Agreements		(In thousands)		Interest Rate
1 year to 3 years		1	$	50,000		2.69	%
3 years to 5 years		3	$	150,000		2.81	%
Total		4	$	200,000		2.78	%

 

These transactions are accounted for as collateralized financing transactions and recorded at the amounts at which the securities were sold. The Company may have to provide additional collateral for the repurchase agreements, as necessary. The underlying collateral pledged for the repurchase agreements consists of U.S. Treasury securities, U.S. government agency security debt, and mortgage-backed securities with a fair value of $920.1 million as of September 30, 2013, and $1.4 billion as of December 31, 2012.

Advances from the FHLB were $376.2 million with weighted average rate of 0.25% at September 30, 2013, compared to $146.2 million with weighted average rate of 0.44% at December 31, 2012.

Long-term Debt

Long-term debt was $171.1 million at both September 30, 2013, and December 31, 2012. Long-term debt is comprised of subordinated debt, which qualifies as Tier II capital for regulatory purposes, and Junior Subordinated Notes, which qualifies as Tier I capital for regulatory purposes, issued in connection with our various pooled trust preferred securities offerings.

Off-Balance-Sheet Arrangements and Contractual Obligations

The following table summarizes the Company’s contractual obligations to make future payments as of September 30, 2013. Payments for deposits and borrowings do not include interest. Payments related to leases are based on actual payments specified in the underlying contracts.

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	Payment Due by Period
			More than		3 years or
			1 year but		more but
	1 year		less than		less than		5 years
	or less		3 years		5 years		or more		Total
	(In thousands)
Contractual obligations:
Deposits with stated maturity dates	$	3,457,955	$	401,546	$	218,331	$	11	$	4,077,843
Securities sold under agreements to repurchase (1)		150,000		250,000		200,000		-		600,000
Securities sold under agreements to repurchase (2)		-		50,000		150,000		-		200,000
Advances from the Federal Home Loan Bank		330,000		-		46,200		-		376,200
Other borrowings		-		-		-		19,108		19,108
Long-term debt		-		-		50,000		121,136		171,136
Operating leases		5,837		6,270		1,805		600		14,512
Total contractual obligations and other commitments	$	3,943,792	$	707,816	$	666,336	$	140,855	$	5,458,799

(1) These repurchase agreements have a final maturity of 5-year, 7-year and 10-year from origination date but are callable on a quarterly basis after six months, one year, or 18 months for the 7-year term and one year for the 5-year and 10-year term.

(2) These repurchase agreements are non-callable.

In the normal course of business, we enter into various transactions, which, in accordance with U.S. generally accepted accounting principles, are not included in our consolidated balance sheets. We enter into these transactions to meet the financing needs of our customers. These transactions include commitments to extend credit and standby letters of credit, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the condensed consolidated balance sheets.

Loan Commitments. We enter into contractual commitments to extend credit, normally with fixed expiration dates or termination clauses, at specified rates and for specific purposes. Substantially all of our commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of loan funding. We minimize our exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures. Management assesses the credit risk associated with certain commitments to extend credit in determining the level of the allowance for credit losses.

Standby Letters of Credit. Standby letters of credit are written conditional commitments issued by us to secure the obligations of a customer to a third party. In the event the customer does not perform in accordance with the terms of an agreement with the third party, we would be required to fund the commitment. The maximum potential amount of future payments we could be required to make is represented by the contractual amount of the commitment. If the commitment is funded, we would be entitled to seek reimbursement from the customer. Our policies generally require that standby letter of credit arrangements contain security and debt covenants similar to those contained in loan agreements.

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Capital Resources

Total equity was $1.44 billion at September 30, 2013, a decrease of $194.2 million, or 11.9%, from $1.63 billion at December 31, 2012, primarily due to the redemption 50% on March 20, 2013, and the remaining 50% on September 30, 2013, of the balance of $258 million of Bancorp’s Series B Preferred Stock issued under the U.S. Treasury's TARP Capital Purchase Program and increases in unrealized losses on securities available for sale of $21.6 million offset by $91.7 million in net income. A $1.6 million noncash charge associated with the redemption of Series B Preferred Stock was reflected in net income available to common stockholders.

The following table summarizes changes in total equity for the nine months ended September 30, 2013:

 

	Nine months ended
(In thousands)	September 30, 2013
Net income	$	91,693
Stock issued to officers as compensation		1,072
Proceeds from shares issued through the Dividend Reinvestment Plan		202
Net tax short-fall from stock-based compensation expense		(143	)
Share-based compensation		1,705
Other comprehensive income		(21,648	)
Preferred stock dividends		(6,717	)
Redemption of series B preferred stock		(258,000	)
Cash dividends paid to common stockholders		(2,366	)
Net decrease in total equity	$	(194,202	)

Capital Adequacy Review

Management seeks to maintain the Company’s capital at a level sufficient to support future growth, protect depositors and stockholders, and comply with various regulatory requirements.

Both the Bancorp’s and the Bank’s regulatory capital continued to exceed the regulatory minimum requirements as of September 30, 2013. In addition, the capital ratios of the Bank place it in the “well capitalized” category which is defined as institutions with a Tier 1 risk-based capital ratio equal to or greater than 6.0%, total risk-based capital ratio equal to or greater than 10.0%, and Tier 1 leverage capital ratio equal to or greater than 5.0%.

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The following table presents Bancorp’s and the Bank’s capital and leverage ratios as of September 30, 2013, and December 31, 2012:

	Cathay General Bancorp								Cathay Bank
	September 30, 2013				December 31, 2012				September 30, 2013				December 31, 2012
(Dollars in thousands)	Balance		%		Balance		%		Balance		%		Balance		%
Tier 1 capital (to risk-weighted assets)	$	1,255,446		14.88	$	1,426,566		17.36	$	1,218,796		14.46	$	1,259,005		15.33
Tier 1 capital minimum requirement		337,410		4.00		328,713		4.00		337,133		4.00		328,440		4.00
Excess	$	918,036		10.88	$	1,097,853		13.36	$	881,663		10.46	$	930,565		11.33
Total capital (to risk-weighted assets)	$	1,404,555		16.65	$	1,571,060		19.12	$	1,365,115		16.20	$	1,402,691		17.08
Total capital minimum requirement		674,820		8.00		657,426		8.00		674,266		8.00		656,880		8.00
Excess	$	729,735		8.65	$	913,634		11.12	$	690,849		8.20	$	745,811		9.08
Tier 1 capital (to average assets) – Leverage ratio	$	1,255,446		12.36	$	1,426,566		13.82	$	1,218,796		12.02	$	1,259,005		12.22
Minimum leverage requirement		406,374		4.00		412,844		4.00		405,588		4.00		412,272		4.00
Excess	$	849,072		8.36	$	1,013,722		9.82	$	813,208		8.02	$	846,733		8.22
Risk-weighted assets	$	8,435,247			$	8,217,821			$	8,428,325			$	8,211,004
Total average assets (1)	$	10,159,358			$	10,321,104			$	10,139,705			$	10,306,790

(1) The quarterly total average assets reflect all debt securities at amortized cost, equity security with readily determinable fair values at the lower of cost or fair value, and equity securities without readily determinable fair values at historical cost.

In July 2013, the federal bank regulatory agencies issued a series of final rules (the “Basel III Capital Rules”) to implement in the U.S. the Basel III capital reforms from the Basel Committee on Basel Supervision (the “Basel Committee”) and certain changes required the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Basel III Capital Rules substantially revise the risk-based capital requirements applicable to bank holding companies and depository institutions, including Bancorp and the Bank, compared to the current U.S. risk-based capital rules. They define the components of capital and address other issues affecting the numerator in banking institutions’ regulatory capital ratios. The Basel III Capital Rules also address risk weights and other issues affecting the denominator in banking institutions’ regulatory capital ratios and replace the existing risk-weighting approach. The Basel III Capital Rules become effective for Bancorp and the Bank on January 1, 2015, subject to a phase-in period.

The Basel III Capital Rules, among other things, (i) introduce a new capital measure called “Common Equity Tier 1” (“CET1”), (ii) specify that Tier 1 capital consist of CET1 and “Additional Tier 1 capital” instruments meeting specified requirements, (iii) define CET1 narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital, and (iv) expand the scope of the deductions/adjustments as compared to existing regulations.

When fully phased in on January 1, 2019, the Basel III Capital Rules will require Bancorp and the Bank to maintain (i) a minimum ratio of CET1 to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (which is added to the 4.5% CET1 ratio as that buffer is phased in, effectively resulting in a minimum ratio of CET1 to risk-weighted assets of at least 7% upon full implementation), (ii) a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio as that buffer is phased in, effectively resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation), (iii) a minimum ratio of total capital (that is, Tier 1 plus Tier 2) to risk-weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% total capital ratio as that buffer is phased in, effectively resulting in a minimum total capital ratio of 10.5% upon full implementation), and (iv) a minimum leverage ratio of 4%, calculated as the ratio of Tier 1 capital to average assets (as compared to a current minimum leverage ratio of 3% for banking organizations that either have the highest supervisory rating or have implemented the appropriate federal regulatory authority’s risk-adjusted measure for market risk).

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The capital conservation buffer is designed to absorb losses during periods of economic stress. The Basel III Capital Rules also provide for a “countercyclical capital buffer” that is applicable to only certain covered institutions and is not expected to have any current applicability to Bancorp or the Bank. Banking institutions with a ratio of CET1 to risk-weighted assets above the minimum but below the conservation buffer (or below the combined capital conservation buffer and countercyclical capital buffer, when the latter is applied) will face constraints on dividends, equity repurchases, and compensation based on the amount of the shortfall.

Under the Basel III Capital Rules, the initial minimum capital ratios as of January 1, 2015, will be as follows:

● 4.5% CET1 to risk-weighted assets.

● 6.0% Tier 1 capital to risk-weighted assets.

● 8.0% Total capital to risk-weighted assets.

The Basel III Capital Rules provide for a number of deductions from and adjustments to CET1. These include, for example, a requirement that mortgage servicing rights, deferred tax assets dependent upon future taxable income, and significant investments in non-consolidated financial entities be deducted from CET1 to the extent that any one such category exceeds 10% of CET1 or that all such categories in the aggregate exceed 15% of CET1. Under current capital standards, the effects of accumulated other comprehensive income items included in capital are excluded for the purposes of determining regulatory capital ratios. Under the Basel III Capital Rules, the effects of certain accumulated other comprehensive income items are not excluded; however, non-advanced approaches banking organizations, including Bancorp and the Bank, may make a one-time permanent election to continue to exclude these items. Bancorp and the Bank expect to make this election in order to avoid significant variations in the level of capital depending upon the impact of interest rate fluctuations on the fair value of the Company’s securities portfolio. The Basel III Capital Rules also permit Bancorp’s trust preferred securities to continue to be treated as Tier 1 capital.

Implementation of the deductions and other adjustments to CET1 will begin on January 1, 2015, and will be phased-in over a four-year period (beginning at 40% on January 1, 2015, and an additional 20% per year thereafter). The implementation of the capital conservation buffer will begin on January 1, 2016 at the 0.625% level and be phased in over a four-year period (increasing by that amount on each subsequent January 1, until it reaches 2.5% on January 1, 2019).

With respect to the Bank, the Basel III Capital Rules also revise the “prompt corrective action” regulations pursuant to Section 38 of the Federal Deposit Insurance Act, by (i) introducing a CET1 ratio requirement at each level (other than critically undercapitalized), with the required CET1 ratio being 6.5% for well-capitalized status; (ii) increasing the minimum Tier 1 capital ratio requirement for each category (other than critically undercapitalized), with the minimum Tier 1 capital ratio for well-capitalized status being 8% (as compared to the current 6%); and (iii) eliminating the current provision that provides that a bank with a composite supervisory rating of 1 may have a 3% leverage ratio and still be adequately capitalized. The Basel III Capital Rules do not change the total risk-based capital requirement for any prompt corrective action category.

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The Basel III Capital Rules prescribe a standardized approach for risk weightings that expand the risk-weighting categories from the current four Basel I-derived categories (0%, 20%, 50% and 100%) to a much larger and more risk-sensitive number of categories, depending on the nature of the assets, generally ranging from 0% for U.S. government and agency securities, to 600% for certain equity exposures, and resulting in higher risk weights for a variety of asset categories. Specifics changes to current rules impacting the Company’s determination of risk-weighted assets include, among other things:

● Applying a 150% risk weight instead of a 100% risk weight for certain high volatility commercial real estate acquisition, development and construction loans.

● Assigning a 150% risk weight to exposures (other than residential mortgage exposures) that are 90 days past due.

● Providing for a 20% credit conversion factor for the unused portion of a commitment with an original maturity of one year or less that is not unconditionally cancellable (currently set at 0%).

Management believes that, as of September 30, 2013, Bancorp and the Bank would meet all capital adequacy requirements under the Basel III Capital Rules on a fully phased-in basis as if such requirements were currently in effect.

Dividend Policy

Holders of common stock are entitled to dividends as and when declared by our Board of Directors out of funds legally available for the payment of dividends. Although we have historically paid cash dividends on our common stock, we are not required to do so. Commencing with the second quarter of 2009, our Board of Directors reduced our common stock dividend to $.08 per share and to $.01 per share thereafter. The amount of future dividends will depend on our earnings, financial condition, capital requirements and other factors, and will be determined by our Board of Directors. As discussed in “Regulatory Matters” below, we are subject to Federal Reserve supervisory policies, including informing and consulting with the Federal Reserve Bank of San Francisco sufficiently in advance of any planned capital actions (i.e. increased dividend payments and stock redemptions) and we have notified the Federal Reserve Bank of San Francisco that our Board of Directors expects to increase the common stock dividend to $.05 per share during the fourth quarter. There can be no assurance that our regulators will not object to any capital actions. The terms of the Bank’s Subordinated debt and our Junior Subordinated Notes also limit the Bank’s and our ability to pay dividends.

The Company declared cash dividends of $.01 per share for distribution to holders of our common stock on September 9, 2013, on 78,898,143 shares outstanding, on June 13, 2013, on 78,871,160 shares outstanding, and on March 14, 2013, on 78,799,276 shares outstanding. Total cash dividends of $2.4 million were paid during the nine months ended September 30, 2013.

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Country Risk Exposures

The Company’s total assets were $10.8 billion and total foreign country risk net exposures were $867.5 million at September 30, 2013. Total foreign country risk net exposures at September 30, 2013, were comprised primarily of $273.0 million from Hong Kong, $194.6 million from England, $170.3 million from China, $57.2 million from Switzerland, $55.0 million from France, $33.0 million from Taiwan, $30.0 million from Australia, $21.2 million from Canada, $11.4 million from Germany, $10.0 million from the Philippines, $9.6 million from Singapore, and $1.8 million from Macau. Risk is determined based on location of the borrowers, issuers, and counter parties.

All foreign country risk net exposures were to non-sovereign counter parties except $8.5 million due from the Hong Kong Monetary Authority at September 30, 2013.

Unfunded exposures were $11.3 million at September 30, 2013, and were comprised primarily of a $10.0 million unfunded loan to a financial institution in China, a $860,000 unfunded loan to a borrower in Taiwan, and a $375,000 unfunded loan to a borrower in Canada.

Financial Derivatives

It is the policy of the Company not to speculate on the future direction of interest rates. However, the Company enters into financial derivatives in order to seek mitigation of exposure to interest rate risks related to our interest-earning assets and interest-bearing liabilities. We believe that these transactions, when properly structured and managed, may provide a hedge against inherent interest rate risk in the Company’s assets or liabilities and against risk in specific transactions. In such instances, the Company may protect its position through the purchase or sale of interest rate futures contracts for a specific cash or interest rate risk position. Other hedge transactions may be implemented using interest rate swaps, interest rate caps, floors, financial futures, forward rate agreements, and options on futures or bonds. Prior to considering any hedging activities, we seek to analyze the costs and benefits of the hedge in comparison to other viable alternative strategies. All hedges will require an assessment of basis risk and must be approved by the Bank’s Investment Committee.

The Company follows ASC Topic 815 which established accounting and reporting standards for financial derivatives, including certain financial derivatives embedded in other contracts, and hedging activities. It requires the recognition of all financial derivatives as assets or liabilities in the Company’s condensed consolidated balance sheets and measurement of those financial derivatives at fair value. The accounting treatment of changes in fair value is dependent upon whether or not a financial derivative is designated as a hedge and, if so, the type of hedge.

The Company enters into foreign exchange forward contracts and foreign currency option contracts with various counterparties to mitigate the risk of fluctuations in foreign currency exchange rates for foreign exchange certificates of deposit, foreign exchange contracts, or foreign currency option contracts entered into with our clients. These contracts are not designated as hedging instruments and are recorded at fair value in our condensed consolidated balance sheets. Changes in the fair value of these contracts as well as the related foreign exchange certificates of deposit, foreign exchange contracts or foreign currency option contracts are recognized immediately in net income as a component of non-interest income. Period end gross positive fair values are recorded in other assets and gross negative fair values are recorded in other liabilities. At September 30, 2013, the notional amount of option contracts totaled $101,000 with a net negative fair value of $1,000. Spot and forward contracts in the total notional amount of $277.4 million had a positive fair value of $5.8 million at September 30, 2013. Spot and forward contracts in the total notional amount of $185.6 million had a negative fair value of $4.7 million at September 30, 2013. At December 31, 2012, the notional amount of option contracts totaled $209,000 with a net negative fair value of $2,000. Spot and forward contracts in the total notional amount of $188.1 million had a positive fair value of $2.9 million at December 31, 2012. Spot and forward contracts in the total notional amount of $133.7 million had a negative fair value of $1.6 million at December 31, 2012.

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Liquidity

Liquidity is our ability to maintain sufficient cash flow to meet maturing financial obligations and customer credit needs, and to take advantage of investment opportunities as they are presented in the marketplace. Our principal sources of liquidity are growth in deposits, proceeds from the maturity or sale of securities and other financial instruments, repayments from securities and loans, federal funds purchased, securities sold under agreements to repurchase, and advances from the FHLB. At September 30, 2013, our liquidity ratio (defined as net cash plus short-term and marketable securities to net deposits and short-term liabilities) was 16.5% compared to 15.3% at December 31, 2012.

The Bank is a shareholder of the FHLB of San Francisco, enabling it to have access to lower cost FHLB financing when necessary. As of September 30, 2013, the Bank had an approved credit line with the FHLB of San Francisco totaling $1.28 billion. Advances from FHLB were $376.2 million at September 30, 2013. The Bank expects to be able to access this source of funding, if required, in the near term. The Bank has pledged a portion of its commercial loans to the Federal Reserve Bank’s Discount Window under the Borrower-in-Custody program to secure these borrowings. At September 30, 2013, the borrowing capacity under the Borrower-in-Custody program was $94.2 million.

Liquidity can also be provided through the sale of liquid assets, which consist of federal funds sold, securities sold under agreements to repurchase, and unpledged investment securities. At September 30, 2013, investment securities and trading securities totaled $1.75 billion, with $941.8 million pledged as collateral for borrowings and other commitments. The remaining $806.4 million was available as additional liquidity or to be pledged as collateral for additional borrowings.

Approximately 85% of the Company’s time deposits mature within one year or less as of September 30, 2013. Management anticipates that there may be some outflow of these deposits upon maturity due to the keen competition in the Bank’s marketplace. However, based on our historical run-off experience, we expect that the outflow will be minimal and can be replenished through our normal growth in deposits. Management believes the above-mentioned sources will provide adequate liquidity to the Bank to meet its daily operating needs.

The business activities of Bancorp consist primarily of the operation of the Bank and limited activities in other investments. Under the memorandum of understanding Bancorp entered into with the Federal Reserve Bank of San Francisco (“FRB SF”), which was terminated effective April 5, 2013, we agreed that we would not, without the FRB SF’s prior written approval, receive any dividends or any other form of payment or distribution representing a reduction of capital from the Bank. The Bank did not pay a dividend to the Bancorp in 2010 or 2011, but paid dividends of $154.7 million to Bancorp following regulatory approval in 2012, and paid additional dividends of $138.0 million, of which $57.2 million exceeded the Bank’s dividend capacity and required prior regulatory approval, in the first nine months of 2013. These dividends were made by the Bank in order for the Bancorp to redeem the Series B Preferred Stock and repurchase the warrants issued under the U.S. Treasury's TARP Capital Purchase Program and to maintain Bancorp’s cash balance equal to at least two years of Bancorp’s operating expenses.

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Regulatory Matters

The memorandum of understanding with the FRB SF not only restricted Bancorp from receiving dividends or distributions from the Bank, but also restricted Bancorp from paying dividends or making other capital distributions. Although the memorandum of understanding was terminated effective April 5, 2013, we remain subject to Federal Reserve supervisory policies, including informing and consulting with the FRB SF sufficiently in advance of any planned capital actions (i.e. TARP redemptions, increased dividend payments, stock redemptions).

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We use a net interest income simulation model to measure the extent of the differences in the behavior of the lending and funding rates to changing interest rates, so as to project future earnings or market values under alternative interest rate scenarios. Interest rate risk arises primarily through the Company’s traditional business activities of extending loans and accepting deposits. Many factors, including economic and financial conditions, movements in interest rates and consumer preferences affect the spread between interest earned on assets and interest paid on liabilities. The net interest income simulation model is designed to measure the volatility of net interest income and net portfolio value, defined as net present value of assets and liabilities, under immediate rising or falling interest rate scenarios in 100 basis point increments.

Although the modeling is very helpful in managing interest rate risk, it does require significant assumptions for the projection of loan prepayment rates on mortgage related assets, loan volumes and pricing, and deposit and borrowing volume and pricing, that might prove inaccurate. Because these assumptions are inherently uncertain, the model cannot precisely estimate net interest income, or precisely predict the effect of higher or lower interest rates on net interest income. Actual results will differ from simulated results due to the timing, magnitude, and frequency of interest rate changes, the differences between actual experience and the assumed volume, changes in market conditions, and management strategies, among other factors. The Company monitors its interest rate sensitivity and attempts to reduce the risk of a significant decrease in net interest income caused by a change in interest rates.

We have established a tolerance level in our policy to define and limit net interest income volatility to a change of plus or minus 15% when the hypothetical rate change is plus or minus 200 basis points. When the net interest rate simulation projects that our tolerance level will be met or exceeded, we seek corrective action after considering, among other things, market conditions, customer reaction, and the estimated impact on profitability. The Company’s simulation model also projects the net economic value of our portfolio of assets and liabilities. We have established a tolerance level in our policy to value the net economic value of our portfolio of assets and liabilities to a change of plus or minus 15% when the hypothetical rate change is plus or minus 200 basis points.

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The table below shows the estimated impact of changes in interest rate on net interest income and market value of equity as of September 30, 2013:

	Net Interest	Market Value
	Income	of Equity
Change in Interest Rate (Basis Points)	Volatility (1)	Volatility (2)
+200	3.1	2.1
+100	-0.2	0.7
-100	1.2	0.6
-200	0.2	3.1

(1) The percentage change in this column represents net interest income of the Company for 12 months in a stable interest rate environment versus the net interest income in the various rate scenarios.

(2) The percentage change in this column represents net portfolio value of the Company in a stable interest rate environment versus the net portfolio value in the various rate scenarios.

Item 4. CONTROLS AND PROCEDURES.

The Company’s principal executive officer and principal financial officer have evaluated the effectiveness of the Company’s “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this quarterly report. Based upon their evaluation, the principal executive officer and principal financial officer have concluded that the Company's disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports filed or submitted by it under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by the Company in such reports is accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

There has not been any change in our internal control over financial reporting that occurred during the third fiscal quarter of 2013 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1.     LEGAL PROCEEDINGS.

Bancorp’s wholly-owned subsidiary, Cathay Bank, is a party to ordinary routine litigation from time to time incidental to various aspects of its operations. Management does not believe that any such litigation is expected to have a material adverse impact on the Company’s consolidated financial condition or results of operations.

Item 1A.     RISK FACTORS.

There is no material change in the risk factors as previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, in response to Item 1A in Part I of Form 10-K.

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Item 2.     UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

ISSUER PURCHASES OF EQUITY SECURITIES
Period	(a) Total Number of Shares (or Units) Purchased	(b) Average Price Paid per Share (or Unit)	(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
Month #1 (July 1, 2013 - July 31, 2013)	0	$0	0	622,500
Month #2 (August 1, 2013 - August 31, 2013)	0	$0	0	622,500
Month #3 (September 1, 2013 - September 30, 2013)	0	$0	0	622,500
Total	0	$0	0	622,500

For a discussion of limitations on the payment of dividends, see “Dividend Policy,” “Liquidity,” and “Regulatory Matters” under Part I—Item 2—“Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Item 3.     DEFAULTS UPON SENIOR SECURITIES.

Not applicable.

Item 4.     MINE SAFETY DISCLOSURES.

Not applicable.

Item 5.     OTHER INFORMATION.

None.

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Item 6.     EXHIBITS.

(i)	Exhibit 31.1 Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(ii)	Exhibit 31.2 Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(iii)	Exhibit 32.1 Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(iv)	Exhibit 32.2 Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(v)	Exhibit 101.INS XBRL Instance Document *
(vi)	Exhibit 101.SCH XBRL Taxonomy Extension Schema Document*
(vii)	Exhibit 101.CAL XBRL Taxonomy Extension Calculation Linkbase Document*
(viii)	Exhibit 101.DEF XBRL Taxonomy Extension Definition Linkbase Document*
(ix)	Exhibit 101.LAB XBRL Taxonomy Extension Label Linkbase Document*
(x)	Exhibit 101.PRE XBRL Taxonomy Extension Presentation Linkbase Document*
* XBRL (Extensible Business Reporting Language) information shall not be deemed to be filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, shall not be deemed to be filed for purposes of section 18 of the Securities Exchange Act of 1934, and otherwise shall not be subject to liability under these sections, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Cathay General Bancorp

(Registrant)

Date: November 7, 2013     /s/ Dunson K. Cheng Dunson K. Cheng Chairman, President, and Chief Executive Officer

Date: November 7, 2013    /s/ Heng W. Chen Heng W. Chen Executive Vice President and Chief Financial Officer

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EX-31

Exhibit 31.1

I, Dunson K. Cheng, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of Cathay General Bancorp;

2.     Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s Board of Directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Dunson K. Cheng 

Dunson K. Cheng

President and

Chief Executive Officer

Date: November 7, 2013

EX-31

Exhibit 31.2

I, Heng W. Chen, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of Cathay General Bancorp;

2.     Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s Board of Directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Heng W. Chen 

Heng W. Chen

Executive Vice President and

Chief Financial Officer

Date: November 7, 2013 

EX-32

Exhibit 32.1

CEO CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cathay General Bancorp (the “Company”) on Form 10-Q for the period ended September 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dunson K. Cheng, chief executive officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)     The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Dunson K. Cheng 

Dunson K. Cheng

President and

Chief Executive Officer

Date: November 7, 2013

EX-32

Exhibit 32.2

CFO CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cathay General Bancorp (the “Company”) on Form 10-Q for the period ended September 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Heng W. Chen, chief financial officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)     The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Heng W. Chen 

Heng W. Chen

Executive Vice President and

Chief Financial Officer

Date: November 7, 2013 

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Note 12 - Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

12. Fair Value of Financial Instruments

The following methods and assumptions were used to estimate the fair value of each class of financial instruments.

Cash and Cash Equivalents. For cash and cash equivalents, the carrying amount was assumed to be a reasonable estimate of fair value, a Level 1 measurement.

Short-term Investments. For short-term investments, the carrying amount was assumed to be a reasonable estimate of fair value, a Level 1 measurement.

Securities Purchased under Agreements to Resell. The fair value of securities purchased under agreements to resell is based on dealer quotes, a Level 2 measurement.

Securities. For securities, including securities held-to-maturity, available-for-sale and for trading, fair values were based on quoted market prices at the reporting date. If a quoted market price was not available, fair value was estimated using quoted market prices for similar securities or dealer quotes. For certain actively traded agency preferred stocks and U.S. Treasury securities, the Company measures the fair value based on quoted market prices in active exchange markets at the reporting date, a Level 1 measurement. The Company also measures securities by using quoted market prices for similar securities or dealer quotes, a Level 2 measurement. This category generally includes U.S. Government agency securities, state and municipal securities, mortgage-backed securities (“MBS”), commercial MBS, collateralized mortgage obligations, asset-backed securities, and corporate bonds.

Loans. Fair values were estimated for portfolios of loans with similar financial characteristics. Each loan category was further segmented into fixed and adjustable rate interest terms and by performing and non-performing categories.

The fair value of performing loans was calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate risk inherent in the loan, a Level 3 measurement.

The fair value of impaired loans was calculated based on the net realizable fair value of the collateral or the observable market price of the most recent sale or quoted price from loans held for sale. The Company does not record loans at fair value on a recurring basis. Nonrecurring fair value adjustments to collateral dependent impaired loans are recorded based on the current appraised value of the collateral, a Level 2 measurement.

Deposit Liabilities. The fair value of demand deposits, savings accounts, and certain money market deposits was assumed to be the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit was estimated using the rates currently offered for deposits with similar remaining maturities, a Level 3 measurement.

Securities Sold under Agreements to Repurchase. The fair value of securities sold under agreements to repurchase is based on dealer quotes, a Level 2 measurement. 

Advances from Federal Home Loan Bank (“FHLB”). The fair value of the advances is based on quotes from the FHLB to settle the advances, a Level 2 measurement.

Other Borrowings. This category includes borrowings from other financial institutions.  The fair value of other borrowings is calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate risk, a Level 3 measurement. 

Long-term Debt. The fair value of long-term debt is estimated based on the quoted market prices or dealer quotes, a Level 2 measurement.

Currency Option and Foreign Exchange Contracts. The Company measures the fair value of currency option and foreign exchange contracts based on dealer quotes, a Level 2 measurement.

Interest Rate Swaps. Fair value of interest rate swaps was derived from observable market prices for similar assets, a Level 2 measurement.

Off-Balance-Sheet Financial Instruments. The fair value of commitments to extend credit, standby letters of credit, and financial guarantees written were estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counter parties. The fair value of guarantees and letters of credit was based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counter parties at the reporting date. The fair value of off-balance-sheet financial instruments was based on the assumptions that a market participant would use, a Level 3 measurement.

Fair value was estimated in accordance with ASC Topic 825, formerly SFAS 107. Fair value estimates were made at specific points in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Bank’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Bank’s financial instruments, fair value estimates were based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates were subjective in nature and involved uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The following table presents the estimated fair value of financial instruments as of September 30, 2013, and as of December 31, 2012:

	September 30, 2013				December 31, 2012
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In thousands)
Financial Assets
Cash and due from banks	$	201,815	$	201,815	$	144,909	$	144,909
Short-term investments		389,024		389,024		411,983		411,983
Securities held-to-maturity		-		-		773,768		823,906
Securities available-for-sale		1,743,309		1,743,309		1,291,480		1,291,480
Trading securities		4,855		4,855		4,703		4,703
Loans, net		7,637,628		7,460,436		7,235,587		7,169,732
Investment in Federal Home Loan Bank stock		28,683		28,683		41,272		41,272
Warrants		49		49		104		104

	Notional Amount		Fair Value		Notional Amount		Fair Value
Option contracts	$	-	$	-	$	105	$	-
Foreign exchange contracts		277,430		5,816		188,145		2,924

	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial Liabilities
Deposits	$	7,918,543	$	7,917,105	$	7,383,225	$	7,389,015
Securities sold under agreements to repurchase		800,000		858,315		1,250,000		1,361,585
Advances from Federal Home Loan Bank		376,200		376,429		146,200		146,789
Other borrowings		19,108		16,020		18,713		14,573
Long-term debt		171,136		97,604		171,136		98,392

	Notional Amount		Fair Value		Notional Amount		Fair Value
Option contracts	$	-	$	1	$	104	$	2
Foreign exchange contracts		185,558		4,725		133,669		1,586

	Notional Amount		Fair Value			Notional Amount		Fair Value
Off-Balance Sheet Financial Instruments
Commitments to extend credit	$	1,760,520	$	(1,919	)	$	1,740,463	$	(1,875	)
Standby letters of credit		46,457		(200	)		44,672		(204	)
Other letters of credit		88,601		(50	)		71,073		(34	)
Bill of lading guarantees		172		-			77		-

The following table presents the level in the fair value hierarchy for the estimated fair values of only financial instruments that are not already included on the condensed consolidated balance sheets at fair value as of September 30, 2013, and December 31, 2012.

	September 30, 2013
	Estimated Fair Value Measurements		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets
Cash and due from banks	$	201,815	$	201,815	$	-	$	-
Short-term investments		389,024		389,024		-		-
Securities available-for-sale		1,743,309		466,145		1,277,164		-
Trading securities		4,855		-		4,855		-
Loans, net		7,460,436		-		-		7,460,436
Investment in Federal Home Loan Bank stock		28,683		-		28,683		-
Warrants		49		-		-		49
Financial Liabilities
Deposits		7,917,105		-		-		7,917,105
Securities sold under agreements to repurchase		858,315		-		858,315		-
Advances from Federal Home Loan Bank		376,429		-		376,429		-
Other borrowings		16,020		-		-		16,020
Long-term debt		97,604		-		97,604		-

	December 31, 2012
	Estimated Fair Value Measurements		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets
Cash and due from banks	$	144,909	$	144,909	$	-	$	-
Short-term investments		411,983		411,983		-		-
Securities held-to-maturity		823,906		-		823,906		-
Securities available-for-sale		1,291,480		526,165		765,315		-
Trading securities		4,703		-		4,703		-
Loans, net		7,169,732		-		-		7,169,732
Investment in Federal Home Loan Bank stock		41,272		-		41,272		-
Warrants		104		-		-		104
Financial Liabilities
Deposits		7,389,015		-		-		7,389,015
Securities sold under agreements to repurchase		1,361,585		-		1,361,585		-
Advances from Federal Home Loan Bank		146,789		-		146,789		-
Other borrowings		14,573		-		-		14,573
Long-term debt		98,392		-		98,392		-

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Note 9 - Securities Sold Under Agreements to Repurchase (Details) (USD $)	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Note 9 - Securities Sold Under Agreements to Repurchase (Details) [Line Items]
Securities Sold under Agreements to Repurchase (in Dollars)	$ 800,000,000	$ 1,250,000,000
Weighted Average Rate Of Securities Sold Under Agreements	3.87%	3.84%
Average Rate Reduction on Modified Repurchase Agreements (in Basis Points)		1.68%
Prepaid Security Sold Under Repurchase Agreement (in Dollars)	450,000,000	150,000,000
Rate of Prepaid Security Sold Under Repurchase Agreements	3.79%	4.43%
Prepayment Penalty Security Sold Under Agreements To Repurchase (in Dollars)	22,600,000	9,400,000
Total Fixed To Floating Rate Agreements (in Dollars)	300,000,000
Number Of Fixed-To-Floating Security Sold Under Agreements To Repurchase	6
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum	0.00%
Securities Sold Under Agreements to Repurchase Minimum [Member]
Note 9 - Securities Sold Under Agreements to Repurchase (Details) [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	1.00%
Securities Sold Under Agreements to Repurchase Maximum Initial Rate [Member]
Note 9 - Securities Sold Under Agreements to Repurchase (Details) [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.50%
Terms Modified in Current Year [Member]
Note 9 - Securities Sold Under Agreements to Repurchase (Details) [Line Items]
Securities Sold under Agreements to Repurchase (in Dollars)		200,000,000
Floating to Fixed Rate Agreements Totaling $300 Million [Member]
Note 9 - Securities Sold Under Agreements to Repurchase (Details) [Line Items]
Number Of Floating-To-Fixed Rate Agreements	5
Total Fixed To Floating Rate Agreements (in Dollars)	300,000,000
LIBOR Minus Hundred Basis Point	three-month LIBOR minus 200 basis points
LIBOR Minus Three Hundred and Forty Basis Points	three-month LIBOR rate minus 340 basis points
Floating to Fixed Rate Agreements Totaling $300 Million [Member] | Minimum [Member]
Note 9 - Securities Sold Under Agreements to Repurchase (Details) [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.78%
Floating to Fixed Rate Agreements Totaling $300 Million [Member] | Maximum [Member]
Note 9 - Securities Sold Under Agreements to Repurchase (Details) [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.07%
Securities Sold under Agreements to Repurchase [Member]
Note 9 - Securities Sold Under Agreements to Repurchase (Details) [Line Items]
Investment Securities Pledged As Collateral (in Dollars)	920,100,000	1,400,000,000
Callable Securities [Member]
Note 9 - Securities Sold Under Agreements to Repurchase (Details) [Line Items]
Securities Sold under Agreements to Repurchase (in Dollars)	$ 600,000,000
Minimum [Member]
Note 9 - Securities Sold Under Agreements to Repurchase (Details) [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Basis Spread on Variable Rate	3.50%
Maximum [Member]
Note 9 - Securities Sold Under Agreements to Repurchase (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.75%

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Condensd Consolidated Statements of Operations and Comprehensive Income (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Interest and Dividend Income
Loans receivable, including loan fees	$ 90,838	$ 90,024	$ 267,557	$ 269,486
Investment securities- taxable	10,868	15,157	34,986	50,046
Investment securities- nontaxable		1,036	995	3,127
Federal Home Loan Bank stock	449	57	1,041	190
Federal funds sold and securities purchased under agreements to resell		2		18
Deposits with banks	307	471	796	1,596
Total interest and dividend income	102,462	106,747	305,375	324,463
Interest Expense
Time deposits of $100,000 or more	6,887	7,970	20,466	26,152
Other deposits	3,485	3,261	9,244	11,045
Securities sold under agreements to repurchase	8,402	13,734	29,778	42,987
Advances from Federal Home Loan Bank	150	74	375	196
Long-term debt	930	1,291	2,778	3,895
Total interest expense	19,854	26,330	62,641	84,275
Net interest income before provision for credit losses	82,608	80,417	242,734	240,188
Provision/(credit) for loan losses	(3,000)		(3,000)	(9,000)
Net interest income after provision/(credit) for loan losses	85,608	80,417	245,734	249,188
Non-Interest Income
Securities gains, net	8,688	8,652	27,157	13,241
Letters of credit commissions	1,698	1,728	4,608	4,873
Depository service fees	1,371	1,342	4,330	4,114
Other operating income	4,963	3,900	15,867	12,077
Total non-interest income	16,720	15,622	51,962	34,305
Non-interest Expense
Salaries and employee benefits	22,751	18,451	67,192	58,426
Occupancy expense	3,812	3,853	10,966	10,926
Computer and equipment expense	2,446	2,340	7,488	7,194
Professional services expense	5,813	5,273	18,484	15,224
FDIC and State assessments	1,712	2,094	5,431	6,554
Marketing expense	1,097	519	2,703	3,408
Other real estate owned expense	527	1,794	886	13,548
Operations of affordable housing investments, net	1,234	476	4,952	4,387
Amortization of core deposit intangibles	1,363	1,404	4,097	4,265
Costs associated with debt redemption	6,861	3,450	22,557	6,200
Other operating expense	3,054	8,190	8,758	12,925
Total non-interest expense	50,670	47,844	153,514	143,057
Income before income tax expense	51,658	48,195	144,182	140,436
Income tax expense	19,029	17,686	52,489	50,852
Net income	32,629	30,509	91,693	89,584
Less: net income attributable to noncontrolling interest	151	151	452	452
Net income attributable to Cathay General Bancorp	32,478	30,358	91,241	89,132
Dividends on preferred stock and noncash charge from repayment	(2,434)	(4,123)	(9,685)	(12,361)
Net income attributable to common stockholders	30,044	26,235	81,556	76,771
Other comprehensive (loss)/income, net of tax
Unrealized holding (loss)/gain arising during the period	(1,074)	10,650	(5,908)	18,353
Less: reclassification adjustments included in net income	5,036	5,015	15,740	7,674
Total other comprehensive (loss)/gain, net of tax	(6,110)	5,635	(21,648)	10,679
Total comprehensive income	$ 26,368	$ 35,993	$ 69,593	$ 99,811
Net income per common share:
Basic (in Dollars per share)	$ 0.38	$ 0.33	$ 1.03	$ 0.98
Diluted (in Dollars per share)	$ 0.38	$ 0.33	$ 1.03	$ 0.98
Cash dividends paid per common share (in Dollars per share)	$ 0.01	$ 0.01	$ 0.03	$ 0.03
Average common shares outstanding
Basic (in Shares)	78,894,262	78,729,272	78,853,333	78,706,150
Diluted (in Shares)	79,114,122	78,731,180	78,944,152	78,711,235

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Note 5 - Stock-Based Compensation

9 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

5. Stock-Based Compensation

Under the Company’s equity incentive plans, directors and eligible employees may be granted incentive or non-statutory stock options and/or restricted stock units, or awarded non-vested stock. As of September 30, 2013, the only options granted by the Company were non-statutory stock options to selected Bank officers and non-employee directors at exercise prices equal to the fair market value of a share of the Company’s common stock on the date of grant. Such options have a maximum ten-year term and vest in 20% annual increments (subject to early termination in certain events) except certain options granted to the Chief Executive Officer of the Company in 2005 and 2008. If such options expire or terminate without having been exercised, any shares not purchased will again be available for future grants or awards. There were no options granted during the first nine months of 2013 or during 2012.

Option compensation expense was zero for the three months ended September 30, 2013, and $194,000 for the three months ended September 30, 2012. For the nine months ended September 30, option compensation expense totaled $129,000 for 2013 and $581,000 for 2012. Stock-based compensation is recognized ratably over the requisite service period for all awards. All unrecognized stock-based compensation expense was fully recognized as of September 30, 2013.

No stock options were exercised in the first nine months of 2013 compared to 39,784 shares issued on the exercise of stock options in the first nine months 2012. Cash received totaled $647,000 and the aggregate intrinsic value totaled $34,000 from the exercise of stock options during the nine months ended September 30, 2012. The table below summarizes stock option activity for the periods indicated:

	Shares			Weighted-average exercise price		Weighted-average remaining contractual life (in years)		Aggregate intrinsic value (in thousands)
Balance, December 31, 2012		3,996,630		$	29.45		2.2	$	-
Exercised		-			-
Forfeited		(339,340	)		20.45
Balance, March 31, 2013		3,657,290		$	30.28		2.2	$	-
Exercised		-			-
Forfeited		(2,980	)		30.79
Balance, June 30, 2013		3,654,310		$	30.28		1.9	$	-
Forfeited		(21,970	)		32.81
Balance, September 30, 2013		3,632,340		$	30.27		1.7	$	-
Exercisable, September 30, 2013		3,632,340		$	30.27		1.7	$	-

At September 30, 2013, 2,655,759 shares were available under the Company’s 2005 Incentive Plan for future grants.

The Company granted restricted stock units for 125,133 shares at an average closing price of $18.24 per share in 2012. The Company granted restricted stock units for 14,416 shares on March 14, 2013, at the closing price of $20.57, 6,729 shares on April 15, 2013, at the closing price of $18.91, and 1,454 shares on May 17, 2013, at the closing price of $20.63. The restricted stock units granted in 2012 and 2013 are scheduled to vest two years from grant date.

The following table presents information relating to the restricted stock units as of September 30, 2013:

	Units
Balance at December 31, 2012		256,616
Granted		22,599
Forfeited		-
Vested		(66,539	)
Balance at September 30, 2013		212,676

The compensation expense related to the restricted stock units was $476,000 for the three months ended September 30, 2013, compared to $459,000 for the three months ended September 30, 2012. For the nine months ended September 30, compensation expense recorded related to the restricted stock units was $1.6 million in 2013 and $1.2 million in 2012. Unrecognized stock-based compensation expense related to restricted stock units was $1.6 million at September 30, 2013, and is expected to be recognized over the next 1.1 years.

The following table summarizes the tax short-fall from share-based payment arrangements:

	Three months ended September 30,						Nine months ended September 30,
(Dollars in thousands)	2013			2012			2013			2012
Short-fall of tax deductions in excess of grant-date fair value	$	(63	)	$	(114	)	$	(143	)	$	(679	)
Benefit of tax deductions on grant-date fair value		95			114			702			777
Total benefit of tax deductions	$	32		$	-		$	559		$	98

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Note 6 - Investment Securities (Tables)

9 Months Ended

Sep. 30, 2013

Investments, Debt and Equity Securities [Abstract]

	September 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Securities Available-for-Sale
U.S. treasury securities	$	460,119	$	214	$	-	$	460,333
Mortgage-backed securities		1,131,602		9,364		45,947		1,095,019
Collateralized mortgage obligations		6,489		268		60		6,697
Asset-backed securities		127		1		-		128
Corporate debt securities		174,953		186		7,299		167,840
Mutual funds		6,000		-		188		5,812
Preferred stock of government sponsored entities		569		6,911		-		7,480
Total securities available-for-sale	$	1,779,859	$	16,944	$	53,494	$	1,743,309
Total investment securities	$	1,779,859	$	16,944	$	53,494	$	1,743,309

	December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Securities Held-to-Maturity
State and municipal securities	$	129,037	$	9,268	$	-	$	138,305
Mortgage-backed securities		634,757		40,801		-		675,558
Corporate debt securities		9,974		69		-		10,043
Total securities held-to-maturity	$	773,768	$	50,138	$	-	$	823,906
Securities Available-for-Sale
U.S. treasury securities	$	509,748	$	228	$	5	$	509,971
Mortgage-backed securities		404,505		12,194		5		416,694
Collateralized mortgage obligations		9,772		430		34		10,168
Asset-backed securities		145		-		4		141
Corporate debt securities		349,973		106		14,102		335,977
Mutual funds		6,000		79		-		6,079
Preferred stock of government sponsored entities		569		1,766		-		2,335
Trust preferred securities		9,964		151		-		10,115
Total securities available-for-sale	$	1,290,676	$	14,954	$	14,150	$	1,291,480
Total investment securities	$	2,064,444	$	65,092	$	14,150	$	2,115,386

	Securities available-for-sale
	Amortized cost		Fair value
	(In thousands)
Due in one year or less	$	460,141	$	460,355
Due after one year through five years		98,079		98,283
Due after five years through ten years		119,240		114,235
Due after ten years (1)		1,102,399		1,070,436
Total	$	1,779,859	$	1,743,309

	September 30, 2013
	Temporarily impaired securities
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
Securities Available-for-Sale
Mortgage-backed securities	$	882,851	$	45,944	$	154	$	2	$	883,005	$	45,946
Mortgage-backed securities-Non-agency		94		1		-		-		94		1
Collateralized mortgage obligations		68		1		332		59		400		60
Corporate debt securities		9,984		16		122,717		7,283		132,701		7,299
Mutual funds		5,812		188		-		-		5,812		188
Total securities available-for-sale	$	898,809	$	46,150	$	123,203	$	7,344	$	1,022,012	$	53,494
Total investment securities	$	898,809	$	46,150	$	123,203	$	7,344	$	1,022,012	$	53,494

	December 31, 2012
	Temporarily impaired securities
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
Securities Available-for-Sale
U.S. treasury securities	$	49,969	$	5	$	-	$	-	$	49,969	$	5
Mortgage-backed securities		231		1		170		1		401		2
Mortgage-backed securities-Non-agency		-		-		96		2		96		2
Collateralized mortgage obligations		-		-		439		35		439		35
Asset-backed securities		-		-		141		4		141		4
Corporate debt securities		52,468		2,532		253,430		11,570		305,898		14,102
Total securities available-for-sale	$	102,668	$	2,538	$	254,276	$	11,612	$	356,944	$	14,150
Total investment securities	$	102,668	$	2,538	$	254,276	$	11,612	$	356,944	$	14,150

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Note 10 - Income Taxes (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Income Tax Expense (Benefit)	$ 19,029,000	$ 17,686,000	$ 52,489,000	$ 50,852,000
Effective Income Tax Rate Reconciliation, Percent			36.50%	36.30%
Income Tax Refund Receivable					$ 12,400,000

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Note 13 - Goodwill and Goodwill Impairment

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

13. Goodwill and Goodwill Impairment

The Company’s policy is to assess goodwill for impairment at the reporting unit level on an annual basis or between annual assessments if a triggering event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount.  Impairment is the condition that exists when the carrying amount of goodwill exceeds its implied fair value.  

The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in ASC Topic 350. The two-step impairment testing process, if needed, begins by assigning net assets and goodwill to our three reporting units— Commercial Lending, Retail Banking, and East Coast Operations.  The Company then completes “step one” of the impairment test by comparing the fair value of each reporting unit (as determined based on the discussion below) with the recorded book value (or “carrying amount”) of its net assets, with goodwill included in the computation of the carrying amount.  If the fair value of a reporting unit exceeds its carrying amount, goodwill of that reporting unit is not considered impaired, and “step two” of the impairment test is not necessary.  If the carrying amount of a reporting unit exceeds its fair value, step two of the impairment test is performed to determine the amount of impairment.  Step two of the impairment test compares the carrying amount of the reporting unit’s goodwill to the “implied fair value” of that goodwill.  The implied fair value of goodwill is computed by assuming that all assets and liabilities of the reporting unit would be adjusted to the current fair value, with the offset as an adjustment to goodwill.  This adjusted goodwill balance is the implied fair value used in step two.  An impairment charge is recognized for the amount by which the carrying amount of goodwill exceeds its implied fair value.

At September 30, 2013, the Company’s market capitalization was above book value and there was no triggering event that required the Company to assess goodwill for impairment as of an interim date.

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Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	$ 43,608	$ 47,731
Interest Deferral [Member] | Commercial Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	0	0
Interest Deferral [Member] | Real Estate Construction Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	0	0
Interest Deferral [Member] | Commercial Mortgage Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	1,464	1,685
Interest Deferral [Member] | Residential Mortgage Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	249	275
Interest Deferral [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	1,713	1,960
Principal Deferral [Member] | Commercial Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	3,026	912
Principal Deferral [Member] | Real Estate Construction Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	16,199	16,767
Principal Deferral [Member] | Commercial Mortgage Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	1,640	2,817
Principal Deferral [Member] | Residential Mortgage Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	2,241	2,010
Principal Deferral [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	23,106	22,506
Rate Reduction and Forgiveness of Principal [Member] | Commercial Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	1,391	1,518
Rate Reduction and Forgiveness of Principal [Member] | Real Estate Construction Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	0	0
Rate Reduction and Forgiveness of Principal [Member] | Commercial Mortgage Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	0	0
Rate Reduction and Forgiveness of Principal [Member] | Residential Mortgage Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	0	0
Rate Reduction and Forgiveness of Principal [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	1,391	1,518
Rate Reduction and Payment Deferral [Member] | Commercial Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	0	0
Rate Reduction and Payment Deferral [Member] | Real Estate Construction Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	9,301	0
Rate Reduction and Payment Deferral [Member] | Commercial Mortgage Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	6,677	5,076
Rate Reduction and Payment Deferral [Member] | Residential Mortgage Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	1,420	760
Rate Reduction and Payment Deferral [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	17,398	5,836
Rate Reduction [Member] | Commercial Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs		0
Rate Reduction [Member] | Real Estate Construction Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs		9,579
Rate Reduction [Member] | Commercial Mortgage Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs		5,746
Rate Reduction [Member] | Residential Mortgage Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs		586
Rate Reduction [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs		15,911
Commercial Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	4,417	2,430
Real Estate Construction Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	25,500	26,346
Commercial Mortgage Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	9,781	15,324
Residential Mortgage Loans [Member]
Note 7 - Loans (Details) - Non-accrual Troubled Debt Restructurings [Line Items]
Non-accrual TDRs	$ 3,910	$ 3,631

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Note 11 - Fair Value Measurements (Details) (USD $)					9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013 Net of Estimated Disposal Costs [Member]	Dec. 31, 2012 Net of Estimated Disposal Costs [Member]	Sep. 30, 2013 Warrants Outstanding [Member] Minimum [Member]	Sep. 30, 2013 Warrants Outstanding [Member] Maximum [Member]	Sep. 30, 2013 Accounts Receivable Collateral [Member]	Sep. 30, 2013 Inventory Collateral [Member]	Sep. 30, 2013 Minimum [Member]	Sep. 30, 2013 Maximum [Member]
Note 11 - Fair Value Measurements (Details) [Line Items]
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Warrants (in Dollars)	$ 49,000	$ 104,000
Other Real Estate, Foreclosed Assets, and Repossessed Assets (in Dollars)	$ 49,777,000	$ 46,384,000	$ 49,800,000	$ 46,400,000
Collateral Discount Rates							45.00%	65.00%
Estimated Sales Cost Applied To Collateral									3.00%	6.00%
Expected Life of Warrants									2 years	4 years
Fair Value Assumptions, Risk Free Interest Rate					0.33%	1.01%
Fair Value Assumptions, Expected Volatility Rate					12.60%	16.60%

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Note 6 - Investment Securities (Details) - Investment Securities (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Note 6 - Investment Securities (Details) - Investment Securities [Line Items]
Securities Available-for-sale, Gross Unrealized Losses	$ 21,600
Available-for-sale Securities - Fair Value	1,743,309	1,291,480
Total investment securities - Amortized Cost	1,779,859	2,064,444
Total investment securities - Gross Unrealized Gains	16,944	65,092
Total investment securities - Gross Unrealized Losses	53,494	14,150
Total investment securities - Fair Value	1,743,309	2,115,386
Securities Held-to-Maturity, Amortized Cost		773,768
Securities Held-to-Maturity, Fair Value		823,906
US Treasury Securities [Member]
Note 6 - Investment Securities (Details) - Investment Securities [Line Items]
Securities Available-for-sale, Amortized Cost	460,119	509,748
Securities Available-for-sale, Gross Unrealized Gains	214	228
Securities Available-for-sale, Gross Unrealized Losses		5
Available-for-sale Securities - Fair Value	460,333	509,971
Collateralized Mortgage Backed Securities [Member]
Note 6 - Investment Securities (Details) - Investment Securities [Line Items]
Securities Available-for-sale, Amortized Cost	1,131,602	404,505
Securities Available-for-sale, Gross Unrealized Gains	9,364	12,194
Securities Available-for-sale, Gross Unrealized Losses	45,947	5
Available-for-sale Securities - Fair Value	1,095,019	416,694
Securities Held-to-Maturity, Amortized Cost		634,757
Securities Held-to-Maturity, Gross Unrealized Gains		40,801
Securities Held-to-Maturity, Gross Unrealized Losses		0
Securities Held-to-Maturity, Fair Value		675,558
Collateralized Mortgage Obligations [Member]
Note 6 - Investment Securities (Details) - Investment Securities [Line Items]
Securities Available-for-sale, Amortized Cost	6,489	9,772
Securities Available-for-sale, Gross Unrealized Gains	268	430
Securities Available-for-sale, Gross Unrealized Losses	60	34
Available-for-sale Securities - Fair Value	6,697	10,168
Asset-backed Securities [Member]
Note 6 - Investment Securities (Details) - Investment Securities [Line Items]
Securities Available-for-sale, Amortized Cost	127	145
Securities Available-for-sale, Gross Unrealized Gains	1	0
Securities Available-for-sale, Gross Unrealized Losses	0	4
Available-for-sale Securities - Fair Value	128	141
Corporate Debt Securities [Member]
Note 6 - Investment Securities (Details) - Investment Securities [Line Items]
Securities Available-for-sale, Amortized Cost	174,953	349,973
Securities Available-for-sale, Gross Unrealized Gains	186	106
Securities Available-for-sale, Gross Unrealized Losses	7,299	14,102
Available-for-sale Securities - Fair Value	167,840	335,977
Securities Held-to-Maturity, Amortized Cost		9,974
Securities Held-to-Maturity, Gross Unrealized Gains		69
Securities Held-to-Maturity, Gross Unrealized Losses		0
Securities Held-to-Maturity, Fair Value		10,043
Mutual Funds [Member]
Note 6 - Investment Securities (Details) - Investment Securities [Line Items]
Securities Available-for-sale, Amortized Cost	6,000	6,000
Securities Available-for-sale, Gross Unrealized Gains	0	79
Securities Available-for-sale, Gross Unrealized Losses	188	0
Available-for-sale Securities - Fair Value	5,812	6,079
Preferred Stock Of Government Sponsored Entities Member
Note 6 - Investment Securities (Details) - Investment Securities [Line Items]
Securities Available-for-sale, Amortized Cost	569	569
Securities Available-for-sale, Gross Unrealized Gains	6,911	1,766
Securities Available-for-sale, Gross Unrealized Losses	0	0
Available-for-sale Securities - Fair Value	7,480	2,335
Total [Member]
Note 6 - Investment Securities (Details) - Investment Securities [Line Items]
Securities Available-for-sale, Amortized Cost	1,779,859	1,290,676
Securities Available-for-sale, Gross Unrealized Gains	16,944	14,954
Securities Available-for-sale, Gross Unrealized Losses	53,494	14,150
Available-for-sale Securities - Fair Value	1,743,309	1,291,480
Securities Held-to-Maturity, Amortized Cost		773,768
Securities Held-to-Maturity, Gross Unrealized Gains		50,138
Securities Held-to-Maturity, Gross Unrealized Losses		0
Securities Held-to-Maturity, Fair Value		823,906
State and Municipal Securities [Member]
Note 6 - Investment Securities (Details) - Investment Securities [Line Items]
Securities Held-to-Maturity, Amortized Cost		129,037
Securities Held-to-Maturity, Gross Unrealized Gains		9,268
Securities Held-to-Maturity, Gross Unrealized Losses		0
Securities Held-to-Maturity, Fair Value		138,305
Trust Preferred Securities [Member]
Note 6 - Investment Securities (Details) - Investment Securities [Line Items]
Securities Available-for-sale, Amortized Cost		9,964
Securities Available-for-sale, Gross Unrealized Gains		151
Securities Available-for-sale, Gross Unrealized Losses		0
Available-for-sale Securities - Fair Value		$ 10,115

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Note 11 - Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

Note 11 - Fair Value Measurements (Tables) [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

September 30, 2013	Fair Value Measurements Using						Total at
	Level 1		Level 2		Level 3		Fair Value
	(In thousands)
Assets
Securities available-for-sale
U.S. Treasury securities	$	460,333	$	-	$	-	$	460,333
Mortgage-backed securities		-		1,095,019		-		1,095,019
Collateralized mortgage obligations		-		6,697		-		6,697
Asset-backed securities		-		128		-		128
Corporate debt securities		-		167,840		-		167,840
Mutual funds		5,812		-		-		5,812
Preferred stock of government sponsored entities		-		7,480		-		7,480
Total securities available-for-sale		466,145		1,277,164		-		1,743,309
Trading securities		-		4,855		-		4,855
Warrants		-		-		49		49
Foreign exchange contracts		-		5,816		-		5,816
Total assets	$	466,145	$	1,287,835	$	49	$	1,754,029
Liabilities
Option contracts	$	-	$	1	$	-	$	1
Foreign exchange contracts	$	-	$	4,725	$	-	$	4,725
Total liabilities	$	-	$	4,726	$	-	$	4,726

December 31, 2012	Fair Value Measurements Using						Total at
	Level 1		Level 2		Level 3		Fair Value
	(In thousands)
Assets
Securities available-for-sale
U.S. Treasury securities	$	509,971	$	-	$	-	$	509,971
Mortgage-backed securities		-		416,694		-		416,694
Collateralized mortgage obligations		-		10,168		-		10,168
Asset-backed securities		-		141		-		141
Corporate debt securities		-		335,977		-		335,977
Mutual funds		6,079		-		-		6,079
Preferred stock of government sponsored entities		-		2,335		-		2,335
Trust preferred securities		10,115		-		-		10,115
Total securities available-for-sale		526,165		765,315		-		1,291,480
Trading securities		-		4,703		-		4,703
Warrants		-		-		104		104
Foreign exchange contracts		-		2,924		-		2,924
Total assets	$	526,165	$	772,942	$	104	$	1,299,211
Liabilities
Option contracts	$	-	$	2	$	-	$	2
Foreign exchange contracts		-		1,586		-		1,586
Total liabilities	$	-	$	1,588	$	-	$	1,588

Fair Value Measurements, Nonrecurring [Table Text Block]

	September 30, 2013								Total Losses/(gains)
	Fair Value Measurements Using								Three Months ended				Nine Months ended
	Level 1		Level 2		Level 3		Total at Fair Value		September 30, 2013		September 30, 2012		September 30, 2013			September 30, 2012
	(In thousands)
Assets
Impaired loans by type:
Commercial loans	$	-	$	-	$	6,502	$	6,502	$	-	$	1,983	$	536		$	2,848
Commercial mortgage loans		-		-		28,533		28,533		394		-		459			-
Construction- residential		-		-		500		500		-		-		-			-
Construction- other		-		-		13,503		13,503		-		-		-			-
Real estate loans		-		-		-		-		-		-		-			301
Residential mortgage loans and equity lines		-		-		13,404		13,404		160		251		191			782
Land loans		-		-		27		27		-		-		-			-
Total impaired loans		-		-		62,469		62,469		554		2,234		1,186			3,931
Other real estate owned (1)		-		27,081		8,321		35,402		111		2,875		(1,267	)		10,602
Investments in venture capital		-		-		9,085		9,085		84		39		295			226
Equity investments		642		-		-		642		-		-		-			43
Total assets	$	642	$	27,081	$	79,875	$	107,598	$	749	$	5,148	$	214		$	14,802

12 Months Ended [Member]

Note 11 - Fair Value Measurements (Tables) [Line Items]

Fair Value Measurements, Nonrecurring [Table Text Block]

	December 31, 2012								Total Losses
	Fair Value Measurements Using								Twelve months ended
	Level 1		Level 2		Level 3		Total at Fair Value		December 31, 2012		December 31, 2011
	(In thousands)
Assets
Impaired loans by type:
Commercial loans	$	-	$	-	$	3,492	$	3,492	$	-	$	877
Commercial mortgage loans		-		-		11,295		11,295		440		-
Construction- residential		-		-		500		500		-		-
Construction- other		-		-		46,153		46,153		65		-
Residential mortgage loans and equity lines		-		-		11,206		11,206		605		820
Land loans		-		-		297		297		162		46
Total impaired loans		-		-		72,943		72,943		1,272		1,743
Other real estate owned (1)		-		27,149		4,841		31,990		10,904		7,003
Investments in venture capital		-		-		9,001		9,001		309		379
Equity investments		142		-		-		142		181		200
Total assets	$	142	$	27,149	$	86,785	$	114,076	$	12,666	$	9,325

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Note 9 - Securities Sold Under Agreements to Repurchase (Tables)

9 Months Ended

Sep. 30, 2013

Disclosure Text Block [Abstract]

Schedule Of Long Term Securities Sold Under Agreements To Repurchase [Table Text Block]

(Dollars in millions)	Fixed-to-floating									Floating-to-fixed						Total
Rate type	Float Rate									Fixed Rate
Rate index	8% minus 3 month LIBOR
Maximum rate		3.75	%		3.50	%		3.50	%
Minimum rate		0.0	%		0.0	%		0.0	%
No. of agreements		1			2			3			1			4			11
Amount	$	50.0		$	100.0		$	150.0		$	100.0		$	200.0		$	600.0
Weighted average rate		3.75	%		3.50	%		3.50	%		4.78	%		5.00	%		4.24	%
Final maturity	2014			2014			2015			2014			2017

Schedule of Repurchase Agreements [Table Text Block]

Maturity	No. of Agreements		Amount (In thousands)		Weighted Average Interest Rate
1 year to 3 years		1	$	50,000		2.69	%
3 years to 5 years		3	$	150,000		2.81	%
Total		4	$	200,000		2.78	%

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Note 7 - Loans (Details) - Troubled Debt Restructurings Modified (USD $) In Thousands, unless otherwise specified			9 Months Ended								3 Months Ended		9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013 Commercial Loans [Member] Accruing Troubled Debt Restructuring [Member]	Sep. 30, 2012 Commercial Loans [Member] Accruing Troubled Debt Restructuring [Member]	Sep. 30, 2013 Commercial Mortgage Loans [Member] Accruing Troubled Debt Restructuring [Member]	Sep. 30, 2012 Commercial Mortgage Loans [Member] Accruing Troubled Debt Restructuring [Member]	Sep. 30, 2013 Residential Mortgage Loans [Member] Accruing Troubled Debt Restructuring [Member]	Sep. 30, 2012 Residential Mortgage Loans [Member] Accruing Troubled Debt Restructuring [Member]	Sep. 30, 2013 Total [Member] Accruing Troubled Debt Restructuring [Member]	Sep. 30, 2012 Total [Member] Accruing Troubled Debt Restructuring [Member]	Sep. 30, 2013 Accruing Troubled Debt Restructuring [Member]	Sep. 30, 2012 Accruing Troubled Debt Restructuring [Member]	Sep. 30, 2013 Accruing Troubled Debt Restructuring [Member]	Sep. 30, 2012 Accruing Troubled Debt Restructuring [Member]
Note 7 - Loans (Details) - Troubled Debt Restructurings Modified [Line Items]
No. of Loans			9	8	3	15	11	7	23	30
Pre-Modification Recorded Investment			$ 11,705	$ 2,144	$ 7,474	$ 59,299	$ 3,736	$ 2,895	$ 22,915	$ 64,338
Post-Modification Recorded Investment			10,516	2,144	7,474	55,610	3,658	2,895	21,648	60,649
Charge-offs			1,189	0	0	3,689	78	0	1,267	3,689	0	(251)	(78)	(251)
Specific Reserve	$ 23,362	$ 12,183	$ 71	$ 75	$ 191	$ 0	$ 125	$ 70	$ 387	$ 145

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Note 5 - Stock-Based Compensation (Details) - Stock Options (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended			9 Months Ended
	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Sep. 30, 2013	Sep. 30, 2012
Stock Options [Abstract]
Balance - shares	3,654,310	3,657,290	3,996,630	3,996,630
Balance - weighted-average exercise price (in Dollars per share)	$ 30.28	$ 30.28	$ 29.45	$ 29.45
Balance - weighted-average remaining contractual life	1 year 255 days	1 year 328 days	2 years 73 days
Balance - aggregate intrinisc value (in Dollars)	$ 0	$ 0	$ 0	$ 0
Exercisable, September 30, 2013	3,632,340			3,632,340
Exercisable, September 30, 2013 (in Dollars per share)	$ 30.27			$ 30.27
Exercisable, September 30, 2013	1 year 255 days
Exercisable, September 30, 2013 (in Dollars)	0			0
Exercised - shares		0	0	0	39,784
Exercised - weighted average exercise price (in Dollars per share)		$ 0	$ 0
Forfeited - shares	(21,970)	(2,980)	(339,340)
Forfeited - weighted average exercise price (in Dollars per share)	$ 32.81	$ 30.79	$ 20.45
Balance - shares	3,632,340	3,654,310	3,657,290	3,632,340
Balance - weighted-average exercise price (in Dollars per share)	$ 30.27	$ 30.28	$ 30.28	$ 30.27
Balance - weighted-average remaining contractual life	1 year 255 days	1 year 328 days	2 years 73 days
Balance - aggregate intrinisc value (in Dollars)	$ 0	$ 0	$ 0	$ 0

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Note 6 - Investment Securities (Details) - Temporarily Impaired Securities (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Securities Available-for-Sale
Investment Securities - Less than 12 Months - Fair Value	$ 898,809	$ 102,668
Investment Securities - Less than 12 Months - Unrealized Losses	46,150	2,538
Investment Securities - 12 Months or longer - Fair Value	123,203	254,276
Investment Securities- 12 Months or longer - Unrealized Losses	7,344	11,612
Investment Securities - Fair Value	1,022,012	356,944
Investment Securities - Unrealized Losses	53,494	14,150
Collateralized Mortgage Backed Securities [Member]
Securities Available-for-Sale
Securities Available-for-Sale - Less than 12 Months - Fair Value	882,851	231
Securities Available-for-Sale - Less than 12 Months - Unrealized Losses	45,944	1
Securities Available-for-Sale - 12 Months or longer - Fair Value	154	170
Securities Available-for-Sale - 12 Months or longer - Unrealized Losses	2	1
Securities Available-for-Sale - Fair Value	883,005	401
Securities Available-for-Sale - Unrealized Losses	45,946	2
Mortgage Backed Securities Non Agency [Member]
Securities Available-for-Sale
Securities Available-for-Sale - Less than 12 Months - Fair Value	94	0
Securities Available-for-Sale - Less than 12 Months - Unrealized Losses	1	0
Securities Available-for-Sale - 12 Months or longer - Fair Value	0	96
Securities Available-for-Sale - 12 Months or longer - Unrealized Losses	0	2
Securities Available-for-Sale - Fair Value	94	96
Securities Available-for-Sale - Unrealized Losses	1	2
Collateralized Mortgage Obligations [Member]
Securities Available-for-Sale
Securities Available-for-Sale - Less than 12 Months - Fair Value	68	0
Securities Available-for-Sale - Less than 12 Months - Unrealized Losses	1	0
Securities Available-for-Sale - 12 Months or longer - Fair Value	332	439
Securities Available-for-Sale - 12 Months or longer - Unrealized Losses	59	35
Securities Available-for-Sale - Fair Value	400	439
Securities Available-for-Sale - Unrealized Losses	60	35
Corporate Debt Securities [Member]
Securities Available-for-Sale
Securities Available-for-Sale - Less than 12 Months - Fair Value	9,984	52,468
Securities Available-for-Sale - Less than 12 Months - Unrealized Losses	16	2,532
Securities Available-for-Sale - 12 Months or longer - Fair Value	122,717	253,430
Securities Available-for-Sale - 12 Months or longer - Unrealized Losses	7,283	11,570
Securities Available-for-Sale - Fair Value	132,701	305,898
Securities Available-for-Sale - Unrealized Losses	7,299	14,102
Mutual Funds [Member]
Securities Available-for-Sale
Securities Available-for-Sale - Less than 12 Months - Fair Value	5,812
Securities Available-for-Sale - Less than 12 Months - Unrealized Losses	188
Securities Available-for-Sale - 12 Months or longer - Fair Value	0
Securities Available-for-Sale - 12 Months or longer - Unrealized Losses	0
Securities Available-for-Sale - Fair Value	5,812
Securities Available-for-Sale - Unrealized Losses	188
Total [Member]
Securities Available-for-Sale
Securities Available-for-Sale - Less than 12 Months - Fair Value	898,809	102,668
Securities Available-for-Sale - Less than 12 Months - Unrealized Losses	46,150	2,538
Securities Available-for-Sale - 12 Months or longer - Fair Value	123,203	254,276
Securities Available-for-Sale - 12 Months or longer - Unrealized Losses	7,344	11,612
Securities Available-for-Sale - Fair Value	1,022,012	356,944
Securities Available-for-Sale - Unrealized Losses	53,494	14,150
US Treasury Securities [Member]
Securities Available-for-Sale
Securities Available-for-Sale - Less than 12 Months - Fair Value		49,969
Securities Available-for-Sale - Less than 12 Months - Unrealized Losses		5
Securities Available-for-Sale - 12 Months or longer - Fair Value		0
Securities Available-for-Sale - 12 Months or longer - Unrealized Losses		0
Securities Available-for-Sale - Fair Value		49,969
Securities Available-for-Sale - Unrealized Losses		5
Asset-backed Securities [Member]
Securities Available-for-Sale
Securities Available-for-Sale - Less than 12 Months - Fair Value		0
Securities Available-for-Sale - Less than 12 Months - Unrealized Losses		0
Securities Available-for-Sale - 12 Months or longer - Fair Value		141
Securities Available-for-Sale - 12 Months or longer - Unrealized Losses		4
Securities Available-for-Sale - Fair Value		141
Securities Available-for-Sale - Unrealized Losses		$ 4

XML

Note 7 - Loans (Details) - Activity Within the Troubled Debt Resturing Loans (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Accruing Troubled Debt Restructuring [Member]
Note 7 - Loans (Details) - Activity Within the Troubled Debt Resturing Loans [Line Items]
New restructurings	$ 10,669	$ 14,765	$ 15,485	$ 53,524
Restructured loans restored to accrual status	5,397	3,957	6,851	6,810
Charge-offs	0	(251)	(78)	(251)
Payments	(15,274)	(1,569)	(48,663)	(4,124)
Restructured loans placed on nonaccrual	(316)	0	(2,350)	(5,824)
Accruing Troubled Debt Restructuring [Member] | Beginning of Period [Member]
Note 7 - Loans (Details) - Activity Within the Troubled Debt Resturing Loans [Line Items]
Balance at	115,464	153,249	144,695	120,016
Balance at	115,464	153,249	144,695	120,016
Accruing Troubled Debt Restructuring [Member] | End of Period [Member]
Note 7 - Loans (Details) - Activity Within the Troubled Debt Resturing Loans [Line Items]
Balance at	115,940	170,151	115,940	170,151
Balance at	115,940	170,151	115,940	170,151
Non Accruing Troubled Debt Restructuring Member
Note 7 - Loans (Details) - Activity Within the Troubled Debt Resturing Loans [Line Items]
New restructurings	2,415	1,153	6,163	7,124
Restructured loans restored to accrual status	(5,397)	(3,957)	(6,851)	(6,810)
Charge-offs	(1,188)	0	(2,121)	(4,285)
Payments	(1,062)	(1,405)	(3,664)	(33,647)
Restructured loans placed on nonaccrual	316	0	2,350	5,824
Non Accruing Troubled Debt Restructuring Member | Beginning of Period [Member]
Note 7 - Loans (Details) - Activity Within the Troubled Debt Resturing Loans [Line Items]
Balance at	48,524	23,285	47,731	50,870
Balance at	48,524	23,285	47,731	50,870
Non Accruing Troubled Debt Restructuring Member | End of Period [Member]
Note 7 - Loans (Details) - Activity Within the Troubled Debt Resturing Loans [Line Items]
Balance at	43,608	19,076	43,608	19,076
Balance at	$ 43,608	$ 19,076	$ 43,608	$ 19,076

XML

Note 1 - Business (Details)	Sep. 30, 2013
Note 1 - Business (Details) [Line Items]
Number of Limited Partnerships in Housing Investments	6
Equity Method Investment, Ownership Percentage	100.00%
Number of Business Trust	5
Southern California Member
Note 1 - Business (Details) [Line Items]
Number Of Branch Locations	20
Northern California Member
Note 1 - Business (Details) [Line Items]
Number Of Branch Locations	11
New York State Member
Note 1 - Business (Details) [Line Items]
Number Of Branch Locations	8
Illinois [Member]
Note 1 - Business (Details) [Line Items]
Number Of Branch Locations	3
Washington State Member
Note 1 - Business (Details) [Line Items]
Number Of Branch Locations	3
Texas Member
Note 1 - Business (Details) [Line Items]
Number Of Branch Locations	2
Massachusetts [Member]
Note 1 - Business (Details) [Line Items]
Number Of Branch Locations	1
New Jersey Member
Note 1 - Business (Details) [Line Items]
Number Of Branch Locations	1
Nevada [Member]
Note 1 - Business (Details) [Line Items]
Number Of Branch Locations	1
Hong Kong [Member]
Note 1 - Business (Details) [Line Items]
Number Of Branch Locations	1

XML

Note 15 - Balance Sheet Offsetting (Details) - Financial Instruments that are Eligible for Offset in the Consolidated Balance Sheet (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Financial Instruments that are Eligible for Offset in the Consolidated Balance Sheet [Abstract]
Gross Amounts of Recognized Liabilities	$ 800,000	$ 1,250,000
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Liabilities Presented in the Statement of Financial Position	800,000	1,250,000
Financial Instruments	0	0
Collateral Posted	(800,000)	(1,250,000)
Net Amount	$ 0	$ 0

XML

Note 14 - Financial Derivatives (Details) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Positive Fair Value Member
Note 14 - Financial Derivatives (Details) [Line Items]
Notional Amount Of Option Contract	$ 101,000	$ 209,000
Open Option Contracts Written, at Fair Value		(2,000)
Sum of Spot and Forward Contract Notional Amount	277,400,000	188,100,000
Increase Decrease in Fair Value	5,800,000	2,900,000
Negative Fair Value Member
Note 14 - Financial Derivatives (Details) [Line Items]
Open Option Contracts Written, at Fair Value	(1,000)
Sum of Spot and Forward Contract Notional Amount	185,600,000	133,700,000
Increase Decrease in Fair Value	$ (4,700,000)	$ (1,600,000)

XML

Note 7 - Loans (Details) - Average Balance And Interest Income Recognized Related To Impaired Loans (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Financing Receivable, Impaired [Line Items]
Impaired Loans - Average Recorded Investment	$ 216,938	$ 263,967	$ 226,841	$ 284,227
Impaired Loans - Interest Income Recognized	1,069	2,246	4,110	6,302
Commercial Loans [Member]
Financing Receivable, Impaired [Line Items]
Impaired Loans - Average Recorded Investment	32,187	25,987	24,873	33,672
Impaired Loans - Interest Income Recognized	166	49	395	146
Real Estate Construction Loans [Member]
Financing Receivable, Impaired [Line Items]
Impaired Loans - Average Recorded Investment	34,946	41,404	39,014	51,176
Impaired Loans - Interest Income Recognized	67	177	199	531
Commercial Mortgage Loans [Member]
Financing Receivable, Impaired [Line Items]
Impaired Loans - Average Recorded Investment	132,921	178,206	145,380	180,959
Impaired Loans - Interest Income Recognized	730	1,971	3,289	5,477
Residential Mortgage And Equity Lines Member
Financing Receivable, Impaired [Line Items]
Impaired Loans - Average Recorded Investment	16,884	18,370	17,574	18,420
Impaired Loans - Interest Income Recognized	$ 106	$ 49	$ 227	$ 148

XML

Note 7 - Loans (Tables)

9 Months Ended

Sep. 30, 2013

Note 7 - Loans (Tables) [Line Items]

	September 30, 2013			December 31, 2012
	(In thousands)
Type of Loans:
Commercial loans	$	2,237,902		$	2,127,107
Residential mortgage loans		1,293,849			1,146,230
Commercial mortgage loans		3,921,348			3,768,452
Equity lines		173,798			193,852
Real estate construction loans		189,867			180,950
Installment and other loans		15,249			12,556
Gross loans		7,832,013			7,429,147
Less:
Allowance for loan losses		(181,452	)		(183,322	)
Unamortized deferred loan fees		(12,933	)		(10,238	)
Total loans, net	$	7,637,628		$	7,235,587

Impaired Financing Receivables [Table Text Block]

	Impaired Loans
	Average Recorded Investment								Interest Income Recognized
	Three months ended September 30,				Nine months ended September 30,				Three months ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012		2013		2012		2013		2012
	(In thousands)
Commercial loans	$	32,187	$	25,987	$	24,873	$	33,672	$	166	$	49	$	395	$	146
Real estate construction loans		34,946		41,404		39,014		51,176		67		177		199		531
Commercial mortgage loans		132,921		178,206		145,380		180,959		730		1,971		3,289		5,477
Residential mortgage and equity lines		16,884		18,370		17,574		18,420		106		49		227		148
Total	$	216,938	$	263,967	$	226,841	$	284,227	$	1,069	$	2,246	$	4,110	$	6,302

	Impaired Loans
	September 30, 2013						December 31, 2012
	Unpaid Principal Balance		Recorded Investment		Allowance		Unpaid Principal Balance		Recorded Investment		Allowance
	(In thousands)
With no allocated allowance
Commercial loans	$	20,896	$	17,699	$	-	$	29,359	$	18,963	$	-
Real estate construction loans		25,438		15,135		-		9,304		7,277		-
Commercial mortgage loans		125,489		94,167		-		189,871		152,957		-
Residential mortgage loans and equity lines		2,978		2,969		-		4,303		4,229		-
Subtotal	$	174,801	$	129,970	$	-	$	232,837	$	183,426	$	-
With allocated allowance
Commercial loans	$	22,099	$	17,352	$	10,849	$	7,804	$	4,959	$	1,467
Real estate construction loans		28,847		19,694		5,691		54,718		34,856		8,158
Commercial mortgage loans		35,582		34,688		6,129		14,163		12,928		1,336
Residential mortgage loans and equity lines		15,951		14,097		693		14,264		12,428		1,222
Subtotal	$	102,479	$	85,831	$	23,362	$	90,949	$	65,171	$	12,183
Total impaired loans	$	277,280	$	215,801	$	23,362	$	323,786	$	248,597	$	12,183

Past Due Financing Receivables [Table Text Block]

	September 30, 2013
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Non-accrual Loans		Total Past Due		Loans Not Past Due		Total
Type of Loans:	(In thousands)
Commercial loans	$	17,034	$	4,136	$	-	$	24,506	$	45,676	$	2,192,226	$	2,237,902
Real estate construction loans		-		-		-		28,995		28,995		160,872		189,867
Commercial mortgage loans		2,396		262		499		35,996		39,153		3,882,195		3,921,348
Residential mortgage loans		3,310		2,237		-		10,364		15,911		1,451,736		1,467,647
Installment and other loans		208		-		-		-		208		15,041		15,249
Total loans	$	22,948	$	6,635	$	499	$	99,861	$	129,943	$	7,702,070	$	7,832,013

	December 31, 2012
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Non-accrual Loans		Total Past Due		Loans Not Past Due		Total
Type of Loans:	(In thousands)
Commercial loans	$	16,832	$	1,610	$	630	$	19,958	$	39,030	$	2,088,077	$	2,127,107
Real estate construction loans		-		1,471		-		36,299		37,770		143,180		180,950
Commercial mortgage loans		21,570		3,627		-		35,704		60,901		3,707,551		3,768,452
Residential mortgage loans		5,324		1,972		-		11,941		19,237		1,320,845		1,340,082
Installment and other loans		-		-		-		-		-		12,556		12,556
Total loans	$	43,726	$	8,680	$	630	$	103,902	$	156,938	$	7,272,209	$	7,429,147

	Nine months ended September 30, 2013								September 30, 2013
	No. of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Charge-offs		Specific Reserve
	(Dollars in thousands)
Commercial loans		9		11,705		10,516	$	1,189	$	71
Commercial mortgage loans		3		7,474		7,474		-		191
Residential mortgage loans and equity lines		11		3,736		3,658		78		125
Total		23	$	22,915	$	21,648	$	1,267	$	387

	Nine months ended September 30, 2012								September 30, 2013
	No. of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Charge-offs		Specific Reserve
	(Dollars in thousands)
Commercial loans		8	$	2,144	$	2,144	$	-	$	75
Commercial mortgage loans		15		59,299		55,610		3,689		-
Residential mortgage loans and equity lines		7		2,895		2,895		-		70
Total		30	$	64,338	$	60,649	$	3,689	$	145

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

	September 30, 2013
Accruing TDRs	Principal Deferral		Rate Reduction		Rate Reduction and Payment Deferral		Total
	(In thousands)
Commercial loans	$	4,813	$	2,943	$	2,788	$	10,544
Real estate construction loans		-		-		5,833		5,833
Commercial mortgage loans		12,740		9,130		70,991		92,861
Residential mortgage loans		1,573		1,588		3,541		6,702
Total accruing TDRs	$	19,126	$	13,661	$	83,153	$	115,940

	December 31, 2012
Accruing TDRs	Principal Deferral		Rate Reduction		Rate Reduction and Forgiveness of Principal		Rate Reduction and Payment Deferral		Total
	(In thousands)
Commercial loans	$	531	$	3,020	$	-	$	413	$	3,964
Real estate construction loans		-		-		-		5,834		5,834
Commercial mortgage loans		27,003		16,656		739		85,783		130,181
Residential mortgage loans		1,461		1,024		-		2,231		4,716
Total accruing TDRs	$	28,995	$	20,700	$	739	$	94,261	$	144,695

	September 30, 2013
Non-accrual TDRs	Interest Deferral		Principal Deferral		Rate Reduction and Forgiveness of Principal		Rate Reduction and Payment Deferral		Total
	(In thousands)
Commercial loans	$	-	$	3,026	$	1,391	$	-	$	4,417
Real estate construction loans		-		16,199		-		9,301		25,500
Commercial mortgage loans		1,464		1,640		-		6,677		9,781
Residential mortgage loans		249		2,241		-		1,420		3,910
Total non-accrual TDRs	$	1,713	$	23,106	$	1,391	$	17,398	$	43,608

	December 31, 2012
Non-accrual TDRs	Interest Deferral		Principal Deferral		Rate Reduction		Rate Reduction and Forgiveness of Principal		Rate Reduction and Payment Deferral		Total
	(In thousands)
Commercial loans	$	-	$	912	$	-	$	1,518	$	-	$	2,430
Real estate construction loans		-		16,767		9,579		-		-		26,346
Commercial mortgage loans		1,685		2,817		5,746		-		5,076		15,324
Residential mortgage loans		275		2,010		586		-		760		3,631
Total non-accrual TDRs	$	1,960	$	22,506	$	15,911	$	1,518	$	5,836	$	47,731

Activity Within The Troubled Debt Resturings [Table Text Block]

	Three months ended September 30,						Nine months ended September 30,
Accruing TDRs	2013			2012			2013			2012
	(In thousands)
Beginning balance	$	115,464		$	153,249		$	144,695		$	120,016
New restructurings		10,669			14,765			15,485			53,524
Restructured loans restored to accrual status		5,397			3,957			6,851			6,810
Charge-offs		-			(251	)		(78	)		(251	)
Payments		(15,274	)		(1,569	)		(48,663	)		(4,124	)
Restructured loans placed on nonaccrual		(316	)		-			(2,350	)		(5,824	)
Ending balance	$	115,940		$	170,151		$	115,940		$	170,151

	Three months ended September 30,						Nine months ended September 30,
Non-accrual TDRs	2013			2012			2013			2012
	(In thousands)
Beginning balance	$	48,524		$	23,285		$	47,731		$	50,870
New restructurings		2,415			1,153			6,163			7,124
Restructured loans placed on nonaccrual		316			-			2,350			5,824
Charge-offs		(1,188	)		-			(2,121	)		(4,285	)
Payments		(1,062	)		(1,405	)		(3,664	)		(33,647	)
Restructured loans restored to accrual status		(5,397	)		(3,957	)		(6,851	)		(6,810	)
Ending balance	$	43,608		$	19,076		$	43,608		$	19,076

Financing Receivable Credit Quality Indicators [Table Text Block]

	September 30, 2013
	Pass/Watch		Special Mention		Substandard		Doubtful		Total
	(In thousands)
Commercial loans	$	2,047,158	$	84,776	$	94,088	$	11,880	$	2,237,902
Real estate construction loans		151,696		-		34,676		3,495		189,867
Commercial mortgage loans		3,543,731		137,183		240,434		-		3,921,348
Residential mortgage loans and equity lines		1,453,498		-		14,149		-		1,467,647
Installment and other loans		15,249		-		-		-		15,249
Total gross loans	$	7,211,332	$	221,959	$	383,347	$	15,375	$	7,832,013

	December 31, 2012
	Pass/Watch		Special Mention		Substandard		Doubtful		Total
	(In thousands)
Commercial loans	$	1,944,989	$	76,776	$	94,077	$	11,265	$	2,127,107
Real estate construction loans		109,269		18,000		45,171		8,510		180,950
Commercial mortgage loans		3,344,783		162,455		261,214		-		3,768,452
Residential mortgage loans and equity lines		1,322,768		816		16,084		414		1,340,082
Installment and other loans		12,556		-		-		-		12,556
Total gross loans	$	6,734,365	$	258,047	$	416,546	$	20,189	$	7,429,147

Allowance for Credit Losses on Financing Receivables [Table Text Block]

	Commercial Loans			Real Estate Construction Loans			Commercial Mortgage Loans			Residential Mortgage Loans and Equity Lines			Installment and Other Loans			Total
	(In thousands)
June 30, 2012 Ending Balance		66,595			16,360			99,009			10,254			56			192,274
Provision/(credit) for possible credit losses		6,199			(670	)		(6,350	)		740			(23	)		(104	)
Charge-offs		(7,387	)		(39	)		(966	)		(477	)		-			(8,869	)
Recoveries		331			477			318			11			-			1,137
Net (charge-offs)/recoveries		(7,056	)		438			(648	)		(466	)		-			(7,732	)
September 30, 2012 Ending Balance	$	65,738		$	16,128		$	92,011		$	10,528		$	33		$	184,438
June 30, 2013 Ending Balance	$	64,379		$	13,755		$	89,678		$	11,892		$	29		$	179,733
Provision/(credit) for possible credit losses		2,121			1,660			(5,710	)		52			6			(1,871	)
Charge-offs		(200	)		-			(394	)		(160	)		-			(754	)
Recoveries		436			1,236			2,514			158			-			4,344
Net (charge-offs)/recoveries		236			1,236			2,120			(2	)		-			3,590
September 30, 2013 Ending Balance	$	66,736		$	16,651		$	86,088		$	11,942		$	35		$	181,452

	Commercial Loans			Real Estate Construction Loans			Commercial Mortgage Loans			Residential Mortgage Loans and Equity Lines			Installment and Other Loans			Total
	(In thousands)
2012 Beginning Balance	$	65,658		$	21,749		$	108,021		$	10,795		$	57		$	206,280
Provision/(credit) for possible credit losses		13,329			(10,081	)		(12,937	)		1,150			(2	)		(8,541	)
Charge-offs		(14,479	)		(1,165	)		(10,647	)		(1,805	)		(25	)		(28,121	)
Recoveries		1,230			5,625			7,574			388			3			14,820
Net (charge-offs)/recoveries		(13,249	)		4,460			(3,073	)		(1,417	)		(22	)		(13,301	)
September 30, 2012 Ending Balance	$	65,738		$	16,128		$	92,011		$	10,528		$	33		$	184,438
Reserve for impaired loans	$	1,791		$	279		$	1,729		$	1,626		$	-		$	5,425
Reserve for non-impaired loans	$	63,947		$	15,849		$	90,282		$	8,902		$	33		$	179,013
Reserve for off-balance sheet credit commitments	$	801		$	668		$	104		$	34		$	3		$	1,610
2013 Beginning Balance	$	66,101		$	23,017		$	82,473		$	11,703		$	28		$	183,322
Provision/(credit) for possible credit losses		3,200			(8,622	)		935			780			(4	)		(3,711	)
Charge-offs		(4,580	)		-			(3,425	)		(766	)		-			(8,771	)
Recoveries		2,015			2,256			6,105			225			11			10,612
Net (charge-offs)/recoveries		(2,565	)		2,256			2,680			(541	)		11			1,841
September 30, 2013 Ending Balance	$	66,736		$	16,651		$	86,088		$	11,942		$	35		$	181,452
Reserve for impaired loans	$	10,849		$	5,691		$	6,129		$	693		$	-		$	23,362
Reserve for non-impaired loans	$	55,887		$	10,960		$	79,959		$	11,249		$	35		$	158,090
Reserve for off-balance sheet credit commitments	$	953		$	287		$	799		$	34		$	1		$	2,074

Impairment Method [Member]

Note 7 - Loans (Tables) [Line Items]

Impaired Financing Receivables [Table Text Block]

	Commercial Loans		Real Estate Construction Loans		Commercial Mortgage Loans		Residential Mortgage Loans and Equity Lines		Installment and Other Loans		Total
	(In thousands)
September 30, 2013
Loans individually evaluated for impairment
Allowance	$	10,849	$	5,691	$	6,129	$	693	$	-	$	23,362
Balance	$	35,051	$	34,829	$	128,855	$	17,066	$	-	$	215,801
Loans collectively evaluated for impairment
Allowance	$	55,887	$	10,960	$	79,959	$	11,249	$	35	$	158,090
Balance	$	2,202,851	$	155,038	$	3,792,493	$	1,450,581	$	15,249	$	7,616,212
Total allowance	$	66,736	$	16,651	$	86,088	$	11,942	$	35	$	181,452
Total balance	$	2,237,902	$	189,867	$	3,921,348	$	1,467,647	$	15,249	$	7,832,013
December 31, 2012
Loans individually evaluated for impairment
Allowance	$	1,467	$	8,158	$	1,336	$	1,222	$	-	$	12,183
Balance	$	23,922	$	42,133	$	165,885	$	16,657	$	-	$	248,597
Loans collectively evaluated for impairment
Allowance	$	64,634	$	14,859	$	81,137	$	10,481	$	28	$	171,139
Balance	$	2,103,185	$	138,817	$	3,602,567	$	1,323,425	$	12,556	$	7,180,550
Total allowance	$	66,101	$	23,017	$	82,473	$	11,703	$	28	$	183,322
Total balance	$	2,127,107	$	180,950	$	3,768,452	$	1,340,082	$	12,556	$	7,429,147

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Note 1 - Business

9 Months Ended

Sep. 30, 2013

Disclosure Text Block [Abstract]

Nature of Operations [Text Block]

1. Business

Cathay General Bancorp (“Bancorp”) is the holding company for Cathay Bank (the “Bank” and, together, the “Company”), six limited partnerships investing in affordable housing investments in which the Bank is the sole limited partner, and GBC Venture Capital, Inc. The Bancorp also owns 100% of the common stock of five statutory business trusts created for the purpose of issuing capital securities. The Bank was founded in 1962 and offers a wide range of financial services. As of September 30, 2013, the Bank operated twenty branches in Southern California, eleven branches in Northern California, eight branches in New York State, three branches in Illinois, three branches in Washington State, two branches in Texas, one branch in Massachusetts, one branch in New Jersey, one branch in Nevada, one branch in Hong Kong, and a representative office in Shanghai and in Taipei. Deposit accounts at the Hong Kong branch are not insured by the Federal Deposit Insurance Corporation (the “FDIC”).

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Note 3 - Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2013

Table Text Block [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

3. Recent Accounting Pronouncements

In January 2013, the Financial Accounting Standard Board (“FASB”) issued ASU 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” ASU No. 2013-01 clarifies that the scope of Update 2011-11 applies to derivatives, repurchase agreements, and securities lending transactions to the extent that they are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement. ASU 2013-01 became effective for interim and annual periods beginning on or after January 1, 2013. Adoption of ASU 2013-01 did not have a significant impact on the Company’s consolidated financial statements. See Note 15 to the Company’s consolidated financial statements for the disclosure of adoption of ASU 2013-01.

In February 2013, the FASB issued ASU 2013-02 “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” ASU 2013-02 amends Topic 220, “Comprehensive Income,” to improve the reporting of reclassification out of accumulated other comprehensive income. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified and to present significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. ASU 2013-02 became effective prospectively for reporting periods beginning after December 15, 2012. Adoption of ASU 2013-02 did not have a significant impact on the Company’s consolidated financial statements. See Note 16 to the Company’s condensed consolidated financial statements for the disclosure of adoption of ASU 2013-02.

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Note 6 - Investment Securities

9 Months Ended

Sep. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

6. Investment Securities

Investment securities were $1.7 billion at September 30, 2013, compared to $2.1 billion at December 31, 2012. During the first quarter of 2013, due to the ongoing discussions regarding corporate income tax rates which could have a negative impact on the after-tax yields and fair values of the Company’s portfolio of municipal securities, the Company determined it may sell such securities in response to market conditions. As a result, the Company reclassified its municipal securities from securities held-to-maturity to securities available-for-sale. Concurrent with this reclassification, the Company also reclassified all other securities held-to-maturity, which together with the municipal securities had an amortized cost on the date of transfer of $722.5 million, to securities available-for-sale. At the reclassification date, a net unrealized gain was recorded in other comprehensive income for these securities totaling $40.5 million.

The following table reflects the amortized cost, gross unrealized gains, gross unrealized losses, and fair values of investment securities as of September 30, 2013, and December 31, 2012:

	September 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Securities Available-for-Sale
U.S. treasury securities	$	460,119	$	214	$	-	$	460,333
Mortgage-backed securities		1,131,602		9,364		45,947		1,095,019
Collateralized mortgage obligations		6,489		268		60		6,697
Asset-backed securities		127		1		-		128
Corporate debt securities		174,953		186		7,299		167,840
Mutual funds		6,000		-		188		5,812
Preferred stock of government sponsored entities		569		6,911		-		7,480
Total securities available-for-sale	$	1,779,859	$	16,944	$	53,494	$	1,743,309
Total investment securities	$	1,779,859	$	16,944	$	53,494	$	1,743,309

	December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Securities Held-to-Maturity
State and municipal securities	$	129,037	$	9,268	$	-	$	138,305
Mortgage-backed securities		634,757		40,801		-		675,558
Corporate debt securities		9,974		69		-		10,043
Total securities held-to-maturity	$	773,768	$	50,138	$	-	$	823,906
Securities Available-for-Sale
U.S. treasury securities	$	509,748	$	228	$	5	$	509,971
Mortgage-backed securities		404,505		12,194		5		416,694
Collateralized mortgage obligations		9,772		430		34		10,168
Asset-backed securities		145		-		4		141
Corporate debt securities		349,973		106		14,102		335,977
Mutual funds		6,000		79		-		6,079
Preferred stock of government sponsored entities		569		1,766		-		2,335
Trust preferred securities		9,964		151		-		10,115
Total securities available-for-sale	$	1,290,676	$	14,954	$	14,150	$	1,291,480
Total investment securities	$	2,064,444	$	65,092	$	14,150	$	2,115,386

The amortized cost and fair value of investment securities at September 30, 2013, by contractual maturities, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or repayment penalties.  

	Securities available-for-sale
	Amortized cost		Fair value
	(In thousands)
Due in one year or less	$	460,141	$	460,355
Due after one year through five years		98,079		98,283
Due after five years through ten years		119,240		114,235
Due after ten years (1)		1,102,399		1,070,436
Total	$	1,779,859	$	1,743,309

(1) Equity securities are reported in this category

Proceeds from sales of mortgage-backed securities were $348.7 million and repayments, maturities and calls of mortgage-backed securities were $237.9 million during the first nine months of 2013 compared to proceeds from sales of $369.0 million and repayments, maturities, and calls of $280.7 million during the same period a year ago. Proceeds from sales of other investment securities were $555.2 million during the first nine months of 2013 compared to $61.0 million during the same period year ago. Proceeds from maturity and calls of other investment securities were $180.1 million during the first nine months of 2013 compared to $494.2 million during the same period a year ago. Gains of $27.2 million and no losses were realized on sales and calls of investment securities during the first nine months of 2013 compared to gains of $13.8 million and losses of $607,000 realized for the same period a year ago.

The unrealized loss on investments in corporate bonds relates to the Company’s investment in 14 issues of bonds of financial institutions, all of which were investment grade at the date of acquisition and as of September 30, 2013. The unrealized losses for these now floating rate securities were primarily caused by the widening of credit spreads since the dates of acquisition. The contractual terms of those investments do not permit the issuers to settle the security at a price less than the amortized cost of the investment. The Company currently does not believe it is probable that it will be unable to collect all amounts due according to the contractual terms of the investments. Therefore, it is expected that these bonds would not be settled at a price less than the amortized cost of the investment. Because the Company does not intend to sell and would not be required to sell these investments until a recovery of fair value, which may be at maturity, it does not consider its investments in these corporate bonds to be other-than-temporarily impaired at September 30, 2013.

The temporarily impaired securities represent 58.6% of the fair value of investment securities as of September 30, 2013. Unrealized losses for securities with unrealized losses for less than twelve months represent 4.9%, and securities with unrealized losses for twelve months or more represent 5.6%, of the historical cost of these securities. Unrealized losses on these securities generally resulted from increases in interest rates or spreads subsequent to the date that these securities were purchased.

At September 30, 2013, management believed the impairment was temporary and, accordingly, no impairment loss has been recognized in our condensed consolidated statements of operations. The Company expects to recover the amortized cost basis of its debt securities, and has no intent to sell and will not be required to sell available-for-sale debt securities that have declined below their cost before their anticipated recovery.

The table below shows the fair value and unrealized losses of the temporarily impaired securities in our investment securities portfolio as of September 30, 2013, and December 31, 2012:

	September 30, 2013
	Temporarily impaired securities
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
Securities Available-for-Sale
Mortgage-backed securities	$	882,851	$	45,944	$	154	$	2	$	883,005	$	45,946
Mortgage-backed securities-Non-agency		94		1		-		-		94		1
Collateralized mortgage obligations		68		1		332		59		400		60
Corporate debt securities		9,984		16		122,717		7,283		132,701		7,299
Mutual funds		5,812		188		-		-		5,812		188
Total securities available-for-sale	$	898,809	$	46,150	$	123,203	$	7,344	$	1,022,012	$	53,494
Total investment securities	$	898,809	$	46,150	$	123,203	$	7,344	$	1,022,012	$	53,494

	December 31, 2012
	Temporarily impaired securities
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
Securities Available-for-Sale
U.S. treasury securities	$	49,969	$	5	$	-	$	-	$	49,969	$	5
Mortgage-backed securities		231		1		170		1		401		2
Mortgage-backed securities-Non-agency		-		-		96		2		96		2
Collateralized mortgage obligations		-		-		439		35		439		35
Asset-backed securities		-		-		141		4		141		4
Corporate debt securities		52,468		2,532		253,430		11,570		305,898		14,102
Total securities available-for-sale	$	102,668	$	2,538	$	254,276	$	11,612	$	356,944	$	14,150
Total investment securities	$	102,668	$	2,538	$	254,276	$	11,612	$	356,944	$	14,150

Investment securities having a carrying value of $941.8 million at September 30, 2013, and $1.45 billion at December 31, 2012, were pledged to secure public deposits, other borrowings, treasury tax and loan, Federal Home Loan Bank advances, securities sold under agreements to repurchase, interest rate swaps, and foreign exchange transactions. 

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Note 4 - Earnings per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

4. Earnings per Share

Basic earnings per share exclude dilution and is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and resulted in the issuance of common stock that then shared in earnings. Potential dilution is excluded from computation of diluted per-share amounts when a net loss from operations exists.

Outstanding stock options with anti-dilutive effect were not included in the computation of diluted earnings per share. The following table sets forth earnings per common share calculations:

	Three months ended September 30,						Nine months ended September 30,
(Dollars in thousands, except share and per share data)	2013			2012			2013			2012
Net income attributable to Cathay General Bancorp	$	32,478		$	30,358		$	91,241		$	89,132
Dividends on preferred stock and noncash charge from repayment		(2,434	)		(4,123	)		(9,685	)		(12,361	)
Net income available to common stockholders	$	30,044		$	26,235		$	81,556		$	76,771
Weighted-average shares:
Basic weighted-average number of common shares outstanding		78,894,262			78,729,272			78,853,333			78,706,150
Dilutive effect of weighted-average outstanding common share equivalents
Warrants		171,426			-			57,771			-
Restricted stock units		48,434			1,908			33,048			5,085
Diluted weighted-average number of common shares outstanding		79,114,122			78,731,180			78,944,152			78,711,235
Average stock options and warrants with anti-dilutive effect		3,668,285			6,080,292			4,958,218			6,133,089
Earnings per common share:
Basic	$	0.38		$	0.33		$	1.03		$	0.98
Diluted	$	0.38		$	0.33		$	1.03		$	0.98

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Note 7 - Loans (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Note 7 - Loans (Details) [Line Items]
Impaired Financing Receivable, Recorded Investment	$ 215,801,000		$ 215,801,000		$ 248,597,000
Percentage Of Charge-Off To Contractual Balances For Impaired Loans	22.20%		22.20%		23.20%
Nonaccrual Loans [Member]
Note 7 - Loans (Details) [Line Items]
Impaired Financing Receivable, Recorded Investment	99,900,000		99,900,000		103,900,000
Accruing Troubled Debt Restructuring [Member]
Note 7 - Loans (Details) [Line Items]
Impaired Financing Receivable, Recorded Investment	115,900,000		115,900,000		144,700,000
Reduction Of Stated Interest Rate Member | Minimum [Member]
Note 7 - Loans (Details) [Line Items]
Troubled Debt Restructurings Length of Modifications	12 months		12 months
Reduction Of Stated Interest Rate Member | Maximum [Member]
Note 7 - Loans (Details) [Line Items]
Troubled Debt Restructurings Length of Modifications	3 years		3 years
Land Loan [Member]
Note 7 - Loans (Details) [Line Items]
Financing Receivable Modification Number Of Contracts Defaulted Within 12 Months	2		2
Financing Receivable Modifications Recorded Investment Defaulted Within 12 Months			1,400,000
Accruing Troubled Debt Restructuring [Member]
Note 7 - Loans (Details) [Line Items]
Troubled Debt Restructurings, Total	115,900,000		115,900,000		144,700,000
Impaired Financing Receivable, Modifications, Related Allowance	6,300,000		6,300,000		1,100,000
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down	0	(251,000)	(78,000)	(251,000)
Non Accruing Troubled Debt Restructuring Member
Note 7 - Loans (Details) [Line Items]
Troubled Debt Restructurings, Total	43,600,000		43,600,000		47,700,000
Impaired Financing Receivable, Modifications, Related Allowance	4,500,000		4,500,000		7,800,000
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down	$ (1,188,000)	$ 0	$ (2,121,000)	$ (4,285,000)
Minimum [Member]
Note 7 - Loans (Details) [Line Items]
Period Loan Is In Payment Default			60 days
Maximum [Member]
Note 7 - Loans (Details) [Line Items]
Period Loan Is In Payment Default			90 days

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Note 12 - Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping [Table Text Block]

	September 30, 2013				December 31, 2012
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In thousands)
Financial Assets
Cash and due from banks	$	201,815	$	201,815	$	144,909	$	144,909
Short-term investments		389,024		389,024		411,983		411,983
Securities held-to-maturity		-		-		773,768		823,906
Securities available-for-sale		1,743,309		1,743,309		1,291,480		1,291,480
Trading securities		4,855		4,855		4,703		4,703
Loans, net		7,637,628		7,460,436		7,235,587		7,169,732
Investment in Federal Home Loan Bank stock		28,683		28,683		41,272		41,272
Warrants		49		49		104		104

	Notional Amount		Fair Value		Notional Amount		Fair Value
Option contracts	$	-	$	-	$	105	$	-
Foreign exchange contracts		277,430		5,816		188,145		2,924

	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial Liabilities
Deposits	$	7,918,543	$	7,917,105	$	7,383,225	$	7,389,015
Securities sold under agreements to repurchase		800,000		858,315		1,250,000		1,361,585
Advances from Federal Home Loan Bank		376,200		376,429		146,200		146,789
Other borrowings		19,108		16,020		18,713		14,573
Long-term debt		171,136		97,604		171,136		98,392

	Notional Amount		Fair Value		Notional Amount		Fair Value
Option contracts	$	-	$	1	$	104	$	2
Foreign exchange contracts		185,558		4,725		133,669		1,586

	Notional Amount		Fair Value			Notional Amount		Fair Value
Off-Balance Sheet Financial Instruments
Commitments to extend credit	$	1,760,520	$	(1,919	)	$	1,740,463	$	(1,875	)
Standby letters of credit		46,457		(200	)		44,672		(204	)
Other letters of credit		88,601		(50	)		71,073		(34	)
Bill of lading guarantees		172		-			77		-

Schedule of Fair Value of Financial Instruments [Table Text Block]

	September 30, 2013
	Estimated Fair Value Measurements		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets
Cash and due from banks	$	201,815	$	201,815	$	-	$	-
Short-term investments		389,024		389,024		-		-
Securities available-for-sale		1,743,309		466,145		1,277,164		-
Trading securities		4,855		-		4,855		-
Loans, net		7,460,436		-		-		7,460,436
Investment in Federal Home Loan Bank stock		28,683		-		28,683		-
Warrants		49		-		-		49
Financial Liabilities
Deposits		7,917,105		-		-		7,917,105
Securities sold under agreements to repurchase		858,315		-		858,315		-
Advances from Federal Home Loan Bank		376,429		-		376,429		-
Other borrowings		16,020		-		-		16,020
Long-term debt		97,604		-		97,604		-

	December 31, 2012
	Estimated Fair Value Measurements		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets
Cash and due from banks	$	144,909	$	144,909	$	-	$	-
Short-term investments		411,983		411,983		-		-
Securities held-to-maturity		823,906		-		823,906		-
Securities available-for-sale		1,291,480		526,165		765,315		-
Trading securities		4,703		-		4,703		-
Loans, net		7,169,732		-		-		7,169,732
Investment in Federal Home Loan Bank stock		41,272		-		41,272		-
Warrants		104		-		-		104
Financial Liabilities
Deposits		7,389,015		-		-		7,389,015
Securities sold under agreements to repurchase		1,361,585		-		1,361,585		-
Advances from Federal Home Loan Bank		146,789		-		146,789		-
Other borrowings		14,573		-		-		14,573
Long-term debt		98,392		-		98,392		-

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Note 4 - Earnings per Share (Details) - Earnings per Share (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Note 4 - Earnings per Share (Details) - Earnings per Share [Line Items]
Net income attributable to Cathay General Bancorp (in Dollars)	$ 32,478	$ 30,358	$ 91,241	$ 89,132
Dividends on preferred stock and noncash charge from repayment (in Dollars)	(2,434)	(4,123)	(9,685)	(12,361)
Net income available to common stockholders (in Dollars)	$ 30,044	$ 26,235	$ 81,556	$ 76,771
Basic weighted-average number of common shares outstanding	78,894,262	78,729,272	78,853,333	78,706,150
Dilutive effect of weighted-average outstanding common share equivalents
Diluted weighted-average number of common shares outstanding	79,114,122	78,731,180	78,944,152	78,711,235
Average stock options and warrants with anti-dilutive effect	3,668,285	6,080,292	4,958,218	6,133,089
Basic (in Dollars per share)	$ 0.38	$ 0.33	$ 1.03	$ 0.98
Diluted (in Dollars per share)	$ 0.38	$ 0.33	$ 1.03	$ 0.98
Warrant [Member]
Dilutive effect of weighted-average outstanding common share equivalents
Dilutive effect of weighted-average number of common shares outstanding	171,426		57,771
Restricted Stock Units (RSUs) [Member]
Dilutive effect of weighted-average outstanding common share equivalents
Dilutive effect of weighted-average number of common shares outstanding	48,434	1,908	33,048	5,085

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Note 6 - Investment Securities (Details) (USD $)	3 Months Ended	9 Months Ended
	Mar. 31, 2013	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Note 6 - Investment Securities (Details) [Line Items]
Investment Securities		$ 1,700,000,000		$ 2,100,000,000
Held-to-maturity Securities, Transferred Security, at Carrying Value		722,500,000
Held-to-maturity Securities, Transferred Security, Unrealized Gain (Loss)	40,500,000
Proceeds from Sale of Mortgage Backed Securities (MBS) categorized as Available-for-sale		348,700,000	369,000,000
Proceeds from Maturities, Prepayments and Calls of Mortgage Backed Securities (MBS)		237,900,000	280,700,000
Proceeds From Sales and Repayments of Other Investment Securities		555,200,000	61,000,000
Proceeds From Maturities Repayments And Calls Of Held For Investment		180,100,000	494,200,000
Realized Gain From Sale and Call of Investment Securities		27,200,000	13,800,000
Realized Loss From Sale and Call of Investment Securities			607,000
Temporarily Impaired Securities As Percentage of Investment Securities		58.60%
Percentage of Unrealized Losses for Securities with Unrealized Losses for Less Than Twelve Months		4.90%
Percentage of Unrealized Losses for Securities with Unrealized Losses for Greater than Twelve Months		5.60%
Pledged Investment Securities		$ 941,800,000		$ 1,450,000,000
Corporate Bonds Issued By Financial Institutions [Member]
Note 6 - Investment Securities (Details) [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions		14

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Note 9 - Securities Sold Under Agreements to Repurchase (Details) - Securities Sold Under Agreements to Repurchase (Non-Callable Fixed Rate Securities Sold Under Agreements to Repurchase [Member], USD $) In Thousands, unless otherwise specified	Sep. 30, 2013
Note 9 - Securities Sold Under Agreements to Repurchase (Details) - Securities Sold Under Agreements to Repurchase [Line Items]
No. of Agreements	4
Amount (in Dollars)	$ 200,000
Weighted Average Interest Rate	2.78%
Maturing One to Three Years [Member]
Note 9 - Securities Sold Under Agreements to Repurchase (Details) - Securities Sold Under Agreements to Repurchase [Line Items]
No. of Agreements	1
Amount (in Dollars)	50,000
Weighted Average Interest Rate	2.69%
Maturing in Three to Five Years [Member]
Note 9 - Securities Sold Under Agreements to Repurchase (Details) - Securities Sold Under Agreements to Repurchase [Line Items]
No. of Agreements	3
Amount (in Dollars)	$ 150,000
Weighted Average Interest Rate	2.81%

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Note 7 - Loans (Details) - Portfolio by Risk Rating (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	$ 7,832,013	$ 7,429,147
Commercial Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	2,047,158	1,944,989
Commercial Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	84,776	76,776
Commercial Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	94,088	94,077
Commercial Loans [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	11,880	11,265
Commercial Loans [Member] | Total [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	2,237,902	2,127,107
Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	2,237,902	2,127,107
Real Estate Construction Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	151,696	109,269
Real Estate Construction Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	0	18,000
Real Estate Construction Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	34,676	45,171
Real Estate Construction Loans [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	3,495	8,510
Real Estate Construction Loans [Member] | Total [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	189,867	180,950
Real Estate Construction Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	189,867	180,950
Commercial Mortgage Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	3,543,731	3,344,783
Commercial Mortgage Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	137,183	162,455
Commercial Mortgage Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	240,434	261,214
Commercial Mortgage Loans [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	0	0
Commercial Mortgage Loans [Member] | Total [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	3,921,348	3,768,452
Commercial Mortgage Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	3,921,348	3,768,452
Residential Mortgage And Equity Lines Member | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	1,453,498	1,322,768
Residential Mortgage And Equity Lines Member | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	0	816
Residential Mortgage And Equity Lines Member | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	14,149	16,084
Residential Mortgage And Equity Lines Member | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	0	414
Residential Mortgage And Equity Lines Member | Total [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	1,467,647	1,340,082
Residential Mortgage And Equity Lines Member
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	1,467,647	1,340,082
Installment And Other Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	15,249	12,556
Installment And Other Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	0	0
Installment And Other Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	0	0
Installment And Other Loans [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	0	0
Installment And Other Loans [Member] | Total [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	15,249	12,556
Installment And Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	15,249	12,556
Total [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	7,211,332	6,734,365
Total [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	221,959	258,047
Total [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	383,347	416,546
Total [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	15,375	20,189
Total [Member] | Total [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	7,832,013	7,429,147
Total [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross Loans	$ 7,832,013	$ 7,429,147

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Note 7 - Loans (Details) - Aging of Loan Portfolio (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	$ 7,832,013	$ 7,429,147
Commercial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	17,034	16,832
60-89 Days Past Due	4,136	1,610
Greater than 90 Days Past Due		630
Non-accrual Loans	24,506	19,958
Total Past Due	45,676	39,030
Loans Not Past Due	2,192,226	2,088,077
Total	2,237,902	2,127,107
Real Estate Construction Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	1,471
Greater than 90 Days Past Due	0	0
Non-accrual Loans	28,995	36,299
Total Past Due	28,995	37,770
Loans Not Past Due	160,872	143,180
Total	189,867	180,950
Commercial Mortgage Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	2,396	21,570
60-89 Days Past Due	262	3,627
Greater than 90 Days Past Due	499	0
Non-accrual Loans	35,996	35,704
Total Past Due	39,153	60,901
Loans Not Past Due	3,882,195	3,707,551
Total	3,921,348	3,768,452
Residential Mortgage And Equity Lines Member
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	3,310	5,324
60-89 Days Past Due	2,237	1,972
Greater than 90 Days Past Due	0	0
Non-accrual Loans	10,364	11,941
Total Past Due	15,911	19,237
Loans Not Past Due	1,451,736	1,320,845
Total	1,467,647	1,340,082
Installment And Other Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	208	0
60-89 Days Past Due	0	0
Greater than 90 Days Past Due	0	0
Non-accrual Loans	0	0
Total Past Due	208	0
Loans Not Past Due	15,041	12,556
Total	15,249	12,556
Total [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	22,948	43,726
60-89 Days Past Due	6,635	8,680
Greater than 90 Days Past Due	499	630
Non-accrual Loans	99,861	103,902
Total Past Due	129,943	156,938
Loans Not Past Due	7,702,070	7,272,209
Total	$ 7,832,013	$ 7,429,147

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Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Securities held-to-maturity, market value (in Dollars)		$ 823,906
Securities available-for-sale, amortized cost (in Dollars)	$ 1,779,859	$ 1,290,676
Preferred stock shares authorized (in Shares)	10,000,000	10,000,000
Preferred stock shares issued (in Shares)	0	258,000
Preferred stock shares outstanding (in Shares)	0	258,000
Common stock par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized (in Shares)	100,000,000	100,000,000
Common stock shares issued (in Shares)	83,113,308	82,985,853
Common stock shares outstanding (in Shares)	78,905,743	78,778,288
Treasury stock shares (in Shares)	4,207,565	4,207,565

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Note 9 - Securities Sold Under Agreements to Repurchase

9 Months Ended

Sep. 30, 2013

Disclosure Text Block [Abstract]

Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]

9. Securities Sold Under Agreements to Repurchase

Securities sold under agreements to repurchase were $800 million with a weighted average rate of 3.87% at September 30, 2013, compared to $1.3 billion with a weighted average rate of 3.84% at December 31, 2012. In 2012, the Company modified $200.0 million of securities sold under agreements to repurchase by extending the term by an additional four years on average, reducing the rate by an average of 168 basis points, and removing the callable feature. In 2012, the Company prepaid securities sold under agreements to repurchase totaling $150 million with a weighted average rate of 4.43% and incurred prepayment penalties of $9.4 million. In the first nine months of 2013, the Company prepaid securities sold under agreements to repurchase totaling $450 million with a weighted average rate of 3.79% and incurred prepayment penalties of $22.6 million. Five floating-to-fixed rate agreements totaling $300.0 million have initial floating rates for a period of time ranging from six months to one year, with floating rates ranging from the three-month LIBOR minus 200 basis points to the three-month LIBOR rate minus 340 basis points. Thereafter, the rates are fixed for the remainder of the term, with interest rates ranging from 4.78% to 5.07%. After the initial floating rate term, the counter parties have the right to terminate the transaction at par at the fixed rate reset date and quarterly thereafter. Six fixed-to-floating rate agreements totaling $300.0 million have initial fixed rates ranging from 1.00% to 3.50% with initial fixed rate terms ranging from six months to 18 months. For the remaining term, the rates float at 8% minus the three-month LIBOR rate with a maximum rate ranging from 3.50% to 3.75% and minimum rate of 0.0%. After the initial fixed rate term, the counter parties have the right to terminate the transaction at par at the floating rate reset date and quarterly thereafter. The table below provides summary data for the $600 million of callable securities sold under agreements to repurchase as of September 30, 2013:

(Dollars in millions)	Fixed-to-floating									Floating-to-fixed						Total
Rate type	Float Rate									Fixed Rate
Rate index	8% minus 3 month LIBOR
Maximum rate		3.75	%		3.50	%		3.50	%
Minimum rate		0.0	%		0.0	%		0.0	%
No. of agreements		1			2			3			1			4			11
Amount	$	50.0		$	100.0		$	150.0		$	100.0		$	200.0		$	600.0
Weighted average rate		3.75	%		3.50	%		3.50	%		4.78	%		5.00	%		4.24	%
Final maturity	2014			2014			2015			2014			2017

The table below provides summary data for non-callable fixed rate securities sold under agreements to repurchase as of September 30, 2013:

Maturity	No. of Agreements		Amount (In thousands)		Weighted Average Interest Rate
1 year to 3 years		1	$	50,000		2.69	%
3 years to 5 years		3	$	150,000		2.81	%
Total		4	$	200,000		2.78	%

These transactions are accounted for as collateralized financing transactions and recorded at the amounts at which the securities were sold. The Company may have to provide additional collateral for the repurchase agreements, as necessary. The underlying collateral pledged for the repurchase agreements consists of U.S. Treasury securities, U.S. government agency securities, and mortgage-backed securities with a fair value of $920.1 million as of September 30, 2013, and $1.4 billion as of December 31, 2012.

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash Flows from Operating Activities
Net income	$ 91,693	$ 89,584
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Credit for loan losses	(3,000)	(9,000)
Provision/(credit) for losses on other real estate owned	(675)	10,362
Deferred tax (asset)/liability	(12,325)	5,901
Depreciation	4,899	4,435
Net losses on sale and transfer of other real estate owned	(843)	(700)
Net gains on sale of loans	(864)	(618)
Proceeds from sales of loans	41,219	58,505
Originations of loans held-for-sale	(40,356)	(57,861)
Net change in trading securities	(152)	(79)
Write-downs on venture capital investments	295	226
Gain on sales and calls of securities	(27,157)	(13,241)
Amortization/accretion of security premiums/discounts, net	3,439	3,800
Amortization of other intangible assets	4,192	4,368
Excess tax short-fall from share-based payment arrangements	143	679
Stock based compensation and stock issued to officers as compensation	2,775	2,251
Net change in accrued interest receivable and other assets	24,875	31,746
Net change in other liabilities	4,195	(3,999)
Net cash provided by operating activities	92,353	126,359
Cash Flows from Investing Activities
Decrease/(increase) in short-term investments	22,959	(131,500)
Purchase of investment securities available-for-sale	(1,026,659)	(971,983)
Proceeds from sale of investment securities available-for-sale	903,915	429,923
Proceeds from repayments, maturities and calls of investment securities available-for-sale	367,026	572,957
Proceeds from repayments, maturities and calls of investment securities held-to-maturity	50,973	301,981
Redemptions of Federal Home Loan Bank stock	12,589	7,496
Net increase in loans	(413,405)	(224,244)
Purchase of premises and equipment	(4,734)	(2,312)
Proceeds from sale of other real estate owned	9,926	33,167
Net increase in investment in affordable housing	(6,167)	(2,639)
Net cash (used in)/provided by investing activities	(83,577)	12,846
Cash Flows from Financing Activities
Net increase in deposits	534,306	124,090
Net decrease in federal funds purchased and securities sold under agreements to repurchase	(450,000)	(50,000)
Advances from Federal Home Loan Bank	1,742,396	406,200
Repayment of Federal Home Loan Bank borrowings	(1,512,000)	(610,000)
Cash dividends paid	(8,631)	(12,036)
Redemption of series B preferred stock	(258,000)
Repayment of other borrowings		(880)
Proceeds from shares issued under Dividend Reinvestment Plan	202	211
Proceeds from exercise of stock options		647
Excess tax short-fall from share-based payment arrangements	(143)	(679)
Net cash provided by/(used in) financing activities	48,130	(142,447)
(Decrease)/increase in cash and cash equivalents	56,906	(3,242)
Cash and cash equivalents, beginning of the period	144,909	117,888
Cash and cash equivalents, end of the period	201,815	114,646
Cash paid during the period:
Interest	65,372	87,383
Income taxes paid	55,537	24,908
Non-cash investing and financing activities:
Net change in unrealized holding (loss)/gain on securities available-for-sale, net of tax	(21,648)	10,679
Transfers investment securities to available-for-sale from held-to-maturity	722,466
Transfers to other real estate owned from loans held for investment	11,877	13,216
Loans transferred from held for investment to held for sale, net		234
Loans to facilitate the sale of other real estate owned	75	1,785
Transfer of securities sold but not yet settled to other assets	$ 12,469

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Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	$ 1,743,309	$ 1,291,480
Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	466,145	526,165
Total Assets	466,145	526,165
Total Liabilities	0	0
Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	1,277,164	765,315
Total Assets	1,287,835	772,942
Total Liabilities	4,726	1,588
Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	0	0
Total Assets	49	104
Total Liabilities	0	0
Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	1,743,309	1,291,480
Total Assets	1,754,029	1,299,211
Total Liabilities	4,726	1,588
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	460,333	509,971
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value		0
US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value		0
US Treasury Securities [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	460,333	509,971
US Treasury Securities [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	460,333	509,971
Mortgage-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	0	0
Mortgage-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	1,095,019	416,694
Mortgage-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	0	0
Mortgage-backed Securities [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	1,095,019	416,694
Collateralized Mortgage Obligations [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	0	0
Collateralized Mortgage Obligations [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	6,697	10,168
Collateralized Mortgage Obligations [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	0	0
Collateralized Mortgage Obligations [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	6,697	10,168
Collateralized Mortgage Obligations [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	6,697	10,168
Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	0	0
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	128	141
Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	0	0
Asset-backed Securities [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	128	141
Asset-backed Securities [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	128	141
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	0	0
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	167,840	335,977
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	0	0
Corporate Debt Securities [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	167,840	335,977
Corporate Debt Securities [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	167,840	335,977
Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	5,812	6,079
Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	0	0
Mutual Funds [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	0	0
Mutual Funds [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	5,812	6,079
Mutual Funds [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	5,812	6,079
Preferred Stock Of Government Sponsored Entities Member | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	0	0
Preferred Stock Of Government Sponsored Entities Member | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	7,480	2,335
Preferred Stock Of Government Sponsored Entities Member | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	0	0
Preferred Stock Of Government Sponsored Entities Member | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	7,480	2,335
Preferred Stock Of Government Sponsored Entities Member
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value	7,480	2,335
Trading Securities Member | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Total Assets	0	0
Trading Securities Member | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Total Assets	4,855	4,703
Trading Securities Member | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Total Assets	0	0
Trading Securities Member | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Total Assets	4,855	4,703
Warrant [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Total Assets	0	0
Warrant [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Total Assets	0	0
Warrant [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Total Assets	49	104
Warrant [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Total Assets	49	104
Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Total Assets	0	0
Total Liabilities	0	0
Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Total Assets	5,816	2,924
Total Liabilities	4,725	1,586
Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Total Assets	0	0
Total Liabilities	0	0
Foreign Exchange Contract [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Total Assets	5,816	2,924
Total Liabilities	4,725	1,586
Option Contracts Member | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Total Assets	0
Total Liabilities		0
Option Contracts Member | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Total Assets	1
Total Liabilities		2
Option Contracts Member | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Total Assets	0
Total Liabilities		0
Option Contracts Member | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Total Assets	1
Total Liabilities		2
Trust Preferred Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value		10,115
Trust Preferred Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value		0
Trust Preferred Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value		0
Trust Preferred Securities [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value		10,115
Trust Preferred Securities [Member]
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items]
Available-for-sale Securities - Fair Value		$ 10,115

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Condensed Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Assets
Cash and due from banks	$ 201,815	$ 144,909
Short-term investments and interest bearing deposits	389,024	411,983
Securities held-to-maturity (market value of $823,906 in 2012)		773,768
Securities available-for-sale (amortized cost of $1,779,859 in 2013 and $1,290,676 in 2012)	1,743,309	1,291,480
Trading securities	4,855	4,703
Loans	7,832,013	7,429,147
Less: Allowance for loan losses	(181,452)	(183,322)
Unamortized deferred loan fees, net	(12,933)	(10,238)
Loans, net	7,637,628	7,235,587
Federal Home Loan Bank stock	28,683	41,272
Other real estate owned, net	49,777	46,384
Affordable housing investments, net	86,381	85,037
Premises and equipment, net	102,379	102,613
Customers’ liability on acceptances	42,533	41,271
Accrued interest receivable	23,367	26,015
Goodwill	316,340	316,340
Other intangible assets, net	2,765	6,132
Other assets	192,590	166,595
Total assets	10,821,446	10,694,089
Deposits
Non-interest-bearing demand deposits	1,385,430	1,269,455
Interest-bearing deposits:
NOW deposits	653,903	593,133
Money market deposits	1,303,121	1,186,771
Savings deposits	498,246	473,805
Time deposits under $100,000	889,828	644,191
Time deposits of $100,000 or more	3,188,015	3,215,870
Total deposits	7,918,543	7,383,225
Securities sold under agreements to repurchase	800,000	1,250,000
Advances from the Federal Home Loan Bank	376,200	146,200
Other borrowings for affordable housing investments	19,108	18,713
Long-term debt	171,136	171,136
Acceptances outstanding	42,533	41,271
Other liabilities	58,624	54,040
Total liabilities	9,386,144	9,064,585
Commitments and contingencies	0	0
Stockholders’ Equity
Preferred stock, 10,000,000 shares authorized, none issued and outstanding at September 30, 2013, and 258,000 issued and outstanding at December 31, 2012		254,580
Common stock, $0.01 par value, 100,000,000 shares authorized, 83,113,308 issued and 78,905,743 outstanding at September 30, 2013, and 82,985,853 issued and 78,778,288 outstanding at December 31, 2012	831	830
Additional paid-in-capital	771,759	768,925
Accumulated other comprehensive (loss)/income, net	(21,183)	465
Retained earnings	801,184	721,993
Treasury stock, at cost (4,207,565 shares at September 30, 2013, and at December 31, 2012)	(125,736)	(125,736)
Total Cathay General Bancorp stockholders' equity	1,426,855	1,621,057
Noncontrolling interest	8,447	8,447
Total equity	1,435,302	1,629,504
Total liabilities and equity	$ 10,821,446	$ 10,694,089

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Note 7 - Loans (Details) - Allowance For Loan Losses By Portfolio Segment And Based On Impairment Method (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Loans individually evaluated for impairment
Individually Evaluated - Allowance	$ 23,362	$ 12,183
Individually Evaluated - Balance	215,801	248,597
Loans collectively evaluated for impairment
Collectively Evaluated - Allowance	158,090	171,139
Collectively Evaluated - Balance	7,616,212	7,180,550
Total allowance	181,452	183,322
Total balance	7,832,013	7,429,147
Commercial Loans [Member]
Loans individually evaluated for impairment
Individually Evaluated - Allowance	10,849	1,467
Individually Evaluated - Balance	35,051	23,922
Loans collectively evaluated for impairment
Collectively Evaluated - Allowance	55,887	64,634
Collectively Evaluated - Balance	2,202,851	2,103,185
Total allowance	66,736	66,101
Total balance	2,237,902	2,127,107
Real Estate Construction Loans [Member]
Loans individually evaluated for impairment
Individually Evaluated - Allowance	5,691	8,158
Individually Evaluated - Balance	34,829	42,133
Loans collectively evaluated for impairment
Collectively Evaluated - Allowance	10,960	14,859
Collectively Evaluated - Balance	155,038	138,817
Total allowance	16,651	23,017
Total balance	189,867	180,950
Commercial Mortgage Loans [Member]
Loans individually evaluated for impairment
Individually Evaluated - Allowance	6,129	1,336
Individually Evaluated - Balance	128,855	165,885
Loans collectively evaluated for impairment
Collectively Evaluated - Allowance	79,959	81,137
Collectively Evaluated - Balance	3,792,493	3,602,567
Total allowance	86,088	82,473
Total balance	3,921,348	3,768,452
Residential Mortgage And Equity Lines Member
Loans individually evaluated for impairment
Individually Evaluated - Allowance	693	1,222
Individually Evaluated - Balance	17,066	16,657
Loans collectively evaluated for impairment
Collectively Evaluated - Allowance	11,249	10,481
Collectively Evaluated - Balance	1,450,581	1,323,425
Total allowance	11,942	11,703
Total balance	1,467,647	1,340,082
Installment And Other Loans [Member]
Loans collectively evaluated for impairment
Collectively Evaluated - Allowance	35	28
Collectively Evaluated - Balance	15,249	12,556
Total allowance	35	28
Total balance	$ 15,249	$ 12,556

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Note 15 - Balance Sheet Offsetting (Tables)

9 Months Ended

Sep. 30, 2013

Disclosure Text Block Supplement [Abstract]

Schedule of Amounts Recognized in Balance Sheet [Table Text Block]

							Gross Amounts Not Offset in the Statement of Financial Position
(In thousands)	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Balance Sheet		Net Amounts of Liabilities Presented in the Balance Sheet		Financial Instruments		Collateral Posted			Net Amount
September 30, 2013
Securities sold under agreements to repurchase	$	800,000	$	-	$	800,000	$	-	$	(800,000	)	$	-
December 31, 2012
Securities sold under agreements to repurchase	$	1,250,000	$	-	$	1,250,000	$	-	$	(1,250,000	)	$	-

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Note 5 - Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

	Shares			Weighted-average exercise price		Weighted-average remaining contractual life (in years)		Aggregate intrinsic value (in thousands)
Balance, December 31, 2012		3,996,630		$	29.45		2.2	$	-
Exercised		-			-
Forfeited		(339,340	)		20.45
Balance, March 31, 2013		3,657,290		$	30.28		2.2	$	-
Exercised		-			-
Forfeited		(2,980	)		30.79
Balance, June 30, 2013		3,654,310		$	30.28		1.9	$	-
Forfeited		(21,970	)		32.81
Balance, September 30, 2013		3,632,340		$	30.27		1.7	$	-
Exercisable, September 30, 2013		3,632,340		$	30.27		1.7	$	-

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

	Units
Balance at December 31, 2012		256,616
Granted		22,599
Forfeited		-
Vested		(66,539	)
Balance at September 30, 2013		212,676

	Three months ended September 30,						Nine months ended September 30,
(Dollars in thousands)	2013			2012			2013			2012
Short-fall of tax deductions in excess of grant-date fair value	$	(63	)	$	(114	)	$	(143	)	$	(679	)
Benefit of tax deductions on grant-date fair value		95			114			702			777
Total benefit of tax deductions	$	32		$	-		$	559		$	98

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Note 7 - Loans (Details) - Impaired Loans and Related Allowance For Credit Losses (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
With allocated allowance
Allowance	$ 23,362	$ 12,183
Total impaired loans	277,280	323,786
Total impaired loans	215,801	248,597
Total impaired loans	23,362	12,183
Commercial Loans [Member]
With no allocated allowance
Loans with no related allowance unpaid principal balance	20,896	29,359
Loans with no related allowance recorded investment	17,699	18,963
Real Estate Construction Loans [Member]
With no allocated allowance
Loans with no related allowance unpaid principal balance	25,438	9,304
Loans with no related allowance recorded investment	15,135	7,277
Commercial Mortgage Loans [Member]
With no allocated allowance
Loans with no related allowance unpaid principal balance	125,489	189,871
Loans with no related allowance recorded investment	94,167	152,957
Residential Mortgage And Equity Lines Member
With no allocated allowance
Loans with no related allowance unpaid principal balance	2,978	4,303
Loans with no related allowance recorded investment	2,969	4,229
With No Allocated Allowance Member
With no allocated allowance
Loans with no related allowance unpaid principal balance	174,801	232,837
Loans with no related allowance recorded investment	129,970	183,426
Commercial Loans [Member]
With allocated allowance
Loans with related allowance unpaid principal balance	22,099	7,804
Loans with related allowance recorded investment	17,352	4,959
Allowance	10,849	1,467
Total impaired loans	10,849	1,467
Real Estate Construction Loans [Member]
With allocated allowance
Loans with related allowance unpaid principal balance	28,847	54,718
Loans with related allowance recorded investment	19,694	34,856
Allowance	5,691	8,158
Total impaired loans	5,691	8,158
Commercial Mortgage Loans [Member]
With allocated allowance
Loans with related allowance unpaid principal balance	35,582	14,163
Loans with related allowance recorded investment	34,688	12,928
Allowance	6,129	1,336
Total impaired loans	6,129	1,336
Residential Mortgage And Equity Lines Member
With allocated allowance
Loans with related allowance unpaid principal balance	15,951	14,264
Loans with related allowance recorded investment	14,097	12,428
Allowance	693	1,222
Total impaired loans	693	1,222
With Allocated Allowance Member
With allocated allowance
Loans with related allowance unpaid principal balance	102,479	90,949
Loans with related allowance recorded investment	85,831	65,171
Allowance	23,362	12,183
Total impaired loans	$ 23,362	$ 12,183

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Note 9 - Securities Sold Under Agreements to Repurchase (Details) - Callable Securities Sold Under Agreements to Repurchase (Callable [Member], USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013
Fixed to Floating Fifty Million with One Agreement at Three Point Seven Five Percent [Member]
Note 9 - Securities Sold Under Agreements to Repurchase (Details) - Callable Securities Sold Under Agreements to Repurchase [Line Items]
Maximum rate	3.75%
Minimum rate	0.00%
No. of agreements	1
Amount (in Dollars)	$ 50,000
Weighted average rate	3.75%
Final maturity	2,014
Fixed to Floating One Hundred Million with Two Agreements at Three Point Five Percent [Member]
Note 9 - Securities Sold Under Agreements to Repurchase (Details) - Callable Securities Sold Under Agreements to Repurchase [Line Items]
Maximum rate	3.50%
Minimum rate	0.00%
No. of agreements	2
Amount (in Dollars)	100,000
Weighted average rate	3.50%
Final maturity	2,014
Fixed to Floating One Hundred and Fifty Million with 3 Agreements at Three Point Five Percent [Member]
Note 9 - Securities Sold Under Agreements to Repurchase (Details) - Callable Securities Sold Under Agreements to Repurchase [Line Items]
Maximum rate	3.50%
Minimum rate	0.00%
No. of agreements	3
Amount (in Dollars)	150,000
Weighted average rate	3.50%
Final maturity	2,015
Floating to Fixed One Hundred Million with One Agreement at Four Point Seven Eight Percent [Member]
Note 9 - Securities Sold Under Agreements to Repurchase (Details) - Callable Securities Sold Under Agreements to Repurchase [Line Items]
No. of agreements	1
Amount (in Dollars)	100,000
Weighted average rate	4.78%
Final maturity	2,014
Floating to Fixed Two Hundred million with 4 Agreements at Five Percent [Member]
Note 9 - Securities Sold Under Agreements to Repurchase (Details) - Callable Securities Sold Under Agreements to Repurchase [Line Items]
No. of agreements	4
Amount (in Dollars)	200,000
Weighted average rate	5.00%
Final maturity	2,017
Eleven Total Agreements for Six Hundred Million at Four Point Two Four Percent [Member]
Note 9 - Securities Sold Under Agreements to Repurchase (Details) - Callable Securities Sold Under Agreements to Repurchase [Line Items]
No. of agreements	11
Amount (in Dollars)	$ 600,000
Weighted average rate	4.24%

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Note 16 - Stockholders' Equity (Details) (USD $)	3 Months Ended		9 Months Ended			3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Mar. 31, 2013 Series B Preferred Stock [Member]	Sep. 30, 2013 Series B Preferred Stock [Member]	Sep. 30, 2013 Approximation [Member]
Note 16 - Stockholders' Equity (Details) [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 1,435,302,000		$ 1,435,302,000		$ 1,629,504,000
Increase (Decrease) in Retained Earnings			(194,200,000)
Percentage Change in Retained Earnings			11.90%
Stock Redeemed or Called During Period, Value						258,000,000	258,000,000
Available-for-sale Securities, Gross Unrealized Loss			21,600,000
Net Income (Loss) Attributable to Parent	$ 32,478,000	$ 30,358,000	$ 91,241,000	$ 89,132,000				$ 91,700,000

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Note 6 - Investment Securities (Details) - Investments by Contractual Maturity Date (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013		Dec. 31, 2012
Investments by Contractual Maturity Date [Abstract]
Due in one year or less	$ 460,141
Due in one year or less	460,355
Due after one year through five years	98,079
Due after one year through five years	98,283
Due after five years through ten years	119,240
Due after five years through ten years	114,235
Due after ten years (1)	1,102,399	[1]
Due after ten years (1)	1,070,436	[1]
Total	1,779,859		1,290,676
Total	$ 1,743,309		$ 1,291,480

[1] Equity securities are reported in this category

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Note 5 - Stock-Based Compensation (Details) - Restricted Stock Units	0 Months Ended			12 Months Ended	9 Months Ended
	May 17, 2013	Apr. 15, 2013	Mar. 14, 2013	Dec. 31, 2012	Sep. 30, 2013 Restricted Stock Units (RSUs) [Member]
Note 5 - Stock-Based Compensation (Details) - Restricted Stock Units [Line Items]
Balance at December 31, 2012					256,616
Balance at September 30, 2013					212,676
Granted	1,454	6,729	14,416	125,133	22,599
Forfeited					0
Vested					(66,539)

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Note 5 - Stock-Based Compensation (Details) - Tax Short-Fall From Share-Based Payment Arrangements (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Tax Short-Fall From Share-Based Payment Arrangements [Abstract]
Short-fall of tax deductions in excess of grant-date fair value	$ (63)	$ (114)	$ (143)	$ (679)
Benefit of tax deductions on grant-date fair value	95	114	702	777
Total benefit of tax deductions	$ 32	$ 0	$ 559	$ 98

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Note 8 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

8. Commitments and Contingencies

The Company is involved in various litigation concerning transactions entered into during the normal course of business. Management, after consultation with legal counsel, does not believe that the resolution of such litigation will have a material effect upon its consolidated financial condition, results of operations, or liquidity taken as a whole. Although the Company establishes accruals for legal proceedings when information related to the loss contingencies represented by those matters indicates both that a loss is probable and that the amount of loss can be reasonably estimated, the Company does not have accruals for all legal proceedings where there is a risk of loss. In addition, amounts accrued may not represent the ultimate loss to the Company from the legal proceedings in question. Thus, ultimate losses may be higher or lower, and possibly significantly so, than the amounts accrued for legal loss contingencies.

In the normal course of business, the Company becomes a party to financial instruments with off-balance sheet risk to meet the financing needs of its customers. These financial instruments include commitments to extend credit in the form of loans, or through commercial or standby letters of credit, and financial guarantees. These instruments represent varying degrees of exposure to risk in excess of the amounts included in the accompanying condensed consolidated balance sheets. The contractual or notional amount of these instruments indicates a level of activity associated with a particular class of financial instrument and is not a reflection of the level of expected losses, if any.

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Note 12 - Fair Value of Financial Instruments (Details) - Fair Value of Financial Instruments (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Financial Assets
Securities held-to-maturity		$ 823,906
Securities available-for-sale	1,743,309	1,291,480
Trading securities	4,855	4,703
Estimate of Fair Value Measurement [Member]
Financial Assets
Cash and due from banks	201,815	144,909
Short-term investments	389,024	411,983
Securities held-to-maturity		823,906
Securities available-for-sale	1,743,309	1,291,480
Trading securities	4,855	4,703
Loans, net	7,460,436	7,169,732
Investment in Federal Home Loan Bank stock	28,683	41,272
Warrants	49	104
Financial Liabilities
Deposits	7,917,105	7,389,015
Securities sold under agreement to repurchase	858,315	1,361,585
Advances from Federal Home Loan Bank	376,429	146,789
Other borrowings	16,020	14,573
Long-term debt	97,604	98,392
Fair Value, Inputs, Level 1 [Member]
Financial Assets
Cash and due from banks	201,815	144,909
Short-term investments	389,024	411,983
Securities held-to-maturity		0
Securities available-for-sale	466,145	526,165
Trading securities	0	0
Loans, net	0	0
Investment in Federal Home Loan Bank stock	0	0
Warrants	0	0
Financial Liabilities
Deposits	0	0
Securities sold under agreement to repurchase	0	0
Advances from Federal Home Loan Bank	0	0
Other borrowings	0	0
Long-term debt	0	0
Fair Value, Inputs, Level 2 [Member]
Financial Assets
Cash and due from banks	0	0
Short-term investments	0	0
Securities held-to-maturity		823,906
Securities available-for-sale	1,277,164	765,315
Trading securities	4,855	4,703
Loans, net	0	0
Investment in Federal Home Loan Bank stock	28,683	41,272
Warrants	0	0
Financial Liabilities
Deposits	0	0
Securities sold under agreement to repurchase	858,315	1,361,585
Advances from Federal Home Loan Bank	376,429	146,789
Other borrowings	0	0
Long-term debt	97,604	98,392
Fair Value, Inputs, Level 3 [Member]
Financial Assets
Cash and due from banks	0	0
Short-term investments	0	0
Securities held-to-maturity		0
Securities available-for-sale	0	0
Trading securities	0	0
Loans, net	7,460,436	7,169,732
Investment in Federal Home Loan Bank stock	0	0
Warrants	49	104
Financial Liabilities
Deposits	7,917,105	7,389,015
Securities sold under agreement to repurchase	0	0
Advances from Federal Home Loan Bank	0	0
Other borrowings	16,020	14,573
Long-term debt	$ 0	$ 0

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Note 16 - Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2013

Stockholders' Equity Note [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

	Three months ended September 30, 2013									Nine months ended September 30, 2013
	Pre-tax			Tax expense			Net-of-tax			Pre-tax			Tax expense			Net-of-tax
	(In thousands)
Beginning balance, net of tax							$	(15,073	)							$	465
Net unrealized losses arising during the period	$	(1,854	)	$	(780	)	$	(1,074	)	$	(48,245	)	$	(20,282	)	$	(27,963	)
Reclassification adjustment for net securities losses included in net income		(8,688	)		(3,652	)		(5,036	)		(27,157	)		(11,417	)		(15,740	)
Net unrealized gains arising from transferring securities held-to-maturity to available-for-sale		-			-			-			38,052			15,997			22,055
Total other comprehensive income	$	(10,542	)	$	(4,432	)	$	(6,110	)	$	(37,350	)	$	(15,702	)	$	(21,648	)
Ending balance, net of tax							$	(21,183	)							$	(21,183	)

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Note 7 - Loans (Details) - Components of Loans in Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Note 7 - Loans (Details) - Components of Loans in Consolidated Balance Sheets [Line Items]
Gross Loans	$ 7,832,013	$ 7,429,147
Allowance for loan losses	(181,452)	(183,322)
Unamortized deferred loan fees	(12,933)	(10,238)
Total loans, net	7,637,628	7,235,587
Commercial Loans [Member]
Note 7 - Loans (Details) - Components of Loans in Consolidated Balance Sheets [Line Items]
Gross Loans	2,237,902	2,127,107
Residential Mortgage Loans [Member]
Note 7 - Loans (Details) - Components of Loans in Consolidated Balance Sheets [Line Items]
Gross Loans	1,293,849	1,146,230
Commercial Mortgage Loans [Member]
Note 7 - Loans (Details) - Components of Loans in Consolidated Balance Sheets [Line Items]
Gross Loans	3,921,348	3,768,452
Equity Lines [Member]
Note 7 - Loans (Details) - Components of Loans in Consolidated Balance Sheets [Line Items]
Gross Loans	173,798	193,852
Real Estate Construction Loans [Member]
Note 7 - Loans (Details) - Components of Loans in Consolidated Balance Sheets [Line Items]
Gross Loans	189,867	180,950
Installment And Other Loans [Member]
Note 7 - Loans (Details) - Components of Loans in Consolidated Balance Sheets [Line Items]
Gross Loans	$ 15,249	$ 12,556

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Note 11 - Fair Value Measurements

9 Months Ended

Sep. 30, 2013

Disclosure Text Block [Abstract]

Fair Value, Measurement Inputs, Disclosure [Text Block]

11. Fair Value Measurements

The Company adopted ASC Topic 820 on January 1, 2008, and determined the fair values of our financial instruments based on the following:

● Level 1 - Quoted prices in active markets for identical assets or liabilities.

● Level 2 - Observable prices in active markets for similar assets or liabilities; prices for identical or similar assets or liabilities in markets that are not active; directly observable market inputs for substantially the full term of the asset and liability; market inputs that are not directly observable but are derived from or corroborated by observable market data.

● Level 3 – Unobservable inputs based on the Company’s own judgment about the assumptions that a market participant would use.

The Company uses the following methodologies to measure the fair value of its financial assets and liabilities on a recurring basis:

Securities Available for Sale. For certain actively traded agency preferred stocks, mutual funds, and U.S. Treasury securities, the Company measures the fair value based on quoted market prices in active exchange markets at the reporting date, a Level 1 measurement. The Company also measures securities by using quoted market prices for similar securities or dealer quotes, a Level 2 measurement. This category generally includes U.S. Government agency securities, state and municipal securities, mortgage-backed securities (“MBS”), commercial MBS, collateralized mortgage obligations, asset-backed securities, corporate bonds and trust preferred securities.

Trading Securities. The Company measures the fair value of trading securities based on quoted market prices in active exchange markets at the reporting date, a Level 1 measurement. The Company also measures the fair value for other trading securities based on quoted market prices for similar securities or dealer quotes, a Level 2 measurement.

Warrants. The Company measures the fair value of warrants based on unobservable inputs based on assumption and management judgment, a Level 3 measurement.

Currency Option and Foreign Exchange Contracts. The Company measures the fair value of currency option and foreign exchange contracts based on dealer quotes on a recurring basis, a Level 2 measurement.

Interest Rate Swaps. Fair value of interest rate swaps is derived from observable market prices for similar assets on a recurring basis, a Level 2 measurement.

The valuation techniques for the assets and liabilities valued on a nonrecurring basis are as follows:

Impaired Loans. The Company does not record loans at fair value on a recurring basis. However, from time to time, nonrecurring fair value adjustments to collateral dependent impaired loans are recorded based on either the current appraised value of the collateral, a Level 2 measurement, or management’s judgment and estimation of value reported on older appraisals that are then adjusted based on recent market trends, a Level 3 measurement.

Goodwill. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in ASC Topic 350. The two-step impairment testing process, if needed, begins by assigning net assets and goodwill to the three reporting units— Commercial Lending, Retail Banking, and East Coast Operations.  The Company then completes “step one” of the impairment test by comparing the fair value of each reporting unit (as determined based on the discussion below) with the recorded book value (or “carrying amount”) of its net assets, with goodwill included in the computation of the carrying amount.  If the fair value of a reporting unit exceeds its carrying amount, goodwill of that reporting unit is not considered impaired, and “step two” of the impairment test is not necessary.  If the carrying amount of a reporting unit exceeds its fair value, step two of the impairment test is performed to determine the amount of impairment.  Step two of the impairment test compares the carrying amount of the reporting unit’s goodwill to the “implied fair value” of that goodwill.  The implied fair value of goodwill is computed by assuming that all assets and liabilities of the reporting unit would be adjusted to the current fair value, with the offset as an adjustment to goodwill.  This adjusted goodwill balance is the implied fair value used in step two.  An impairment charge is recognized for the amount by which the carrying amount of goodwill exceeds its implied fair value. In connection with the determination of fair value, certain data and information is utilized, including earnings forecasts at the reporting unit level for the next four years.  Other key assumptions include terminal values based on future growth rates and discount rates for valuing the cash flows, which have inputs for the risk-free rate, market risk premium, and adjustments to reflect inherent risk and required market returns. Because of the significance of unobservable inputs in the valuation of goodwill impairment, goodwill subject to nonrecurring fair value adjustments is classified as a Level 3 measurement.

Core Deposit Intangibles. Core deposit intangibles is initially recorded at fair value based on a valuation of the core deposits acquired and is amortized over its estimated useful life to its residual value in proportion to the economic benefits consumed. The Company assesses the recoverability of this intangible asset on a nonrecurring basis using the core deposits remaining at the assessment date and the fair value of cash flows expected to be generated from the core deposits, a Level 3 measurement.

Other Real Estate Owned. Real estate acquired in the settlement of loans is initially recorded at fair value based on the appraised value of the property on the date of transfer, less estimated costs to sell, a Level 2 measurement. From time to time, nonrecurring fair value adjustments are made to other real estate owned based on the current updated appraised value of the property, also a Level 2 measurement, or management’s judgment and estimation of value reported on older appraisals that are then adjusted based on recent market trends, a Level 3 measurement.

Investments in Venture Capital. The Company periodically reviews its investments in venture capital for other-than-temporary impairment on a nonrecurring basis. Investments in venture capital were written down to their fair value based on available financial reports from venture capital partnerships and management’s judgment and estimation, a Level 3 measurement.

Equity Investments. The Company records equity investments at fair value on a nonrecurring basis based on quoted market prices in active exchange markets at the reporting date, a Level 1 measurement.

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of September 30, 2013, and December 31, 2012:

September 30, 2013	Fair Value Measurements Using						Total at
	Level 1		Level 2		Level 3		Fair Value
	(In thousands)
Assets
Securities available-for-sale
U.S. Treasury securities	$	460,333	$	-	$	-	$	460,333
Mortgage-backed securities		-		1,095,019		-		1,095,019
Collateralized mortgage obligations		-		6,697		-		6,697
Asset-backed securities		-		128		-		128
Corporate debt securities		-		167,840		-		167,840
Mutual funds		5,812		-		-		5,812
Preferred stock of government sponsored entities		-		7,480		-		7,480
Total securities available-for-sale		466,145		1,277,164		-		1,743,309
Trading securities		-		4,855		-		4,855
Warrants		-		-		49		49
Foreign exchange contracts		-		5,816		-		5,816
Total assets	$	466,145	$	1,287,835	$	49	$	1,754,029
Liabilities
Option contracts	$	-	$	1	$	-	$	1
Foreign exchange contracts	$	-	$	4,725	$	-	$	4,725
Total liabilities	$	-	$	4,726	$	-	$	4,726

December 31, 2012	Fair Value Measurements Using						Total at
	Level 1		Level 2		Level 3		Fair Value
	(In thousands)
Assets
Securities available-for-sale
U.S. Treasury securities	$	509,971	$	-	$	-	$	509,971
Mortgage-backed securities		-		416,694		-		416,694
Collateralized mortgage obligations		-		10,168		-		10,168
Asset-backed securities		-		141		-		141
Corporate debt securities		-		335,977		-		335,977
Mutual funds		6,079		-		-		6,079
Preferred stock of government sponsored entities		-		2,335		-		2,335
Trust preferred securities		10,115		-		-		10,115
Total securities available-for-sale		526,165		765,315		-		1,291,480
Trading securities		-		4,703		-		4,703
Warrants		-		-		104		104
Foreign exchange contracts		-		2,924		-		2,924
Total assets	$	526,165	$	772,942	$	104	$	1,299,211
Liabilities
Option contracts	$	-	$	2	$	-	$	2
Foreign exchange contracts		-		1,586		-		1,586
Total liabilities	$	-	$	1,588	$	-	$	1,588

The Company measured the fair value of its warrants on a recurring basis using significant unobservable inputs. The fair value of warrants was $49,000 at September 30, 2013, compared to $104,000 at December 31, 2012. The fair value adjustment of warrants was included in other operating income in the third quarter of 2013.

For financial assets measured at fair value on a nonrecurring basis that were still reflected in the balance sheet at September 30, 2013, the following table provides the level of valuation assumptions used to determine each adjustment, the carrying value of the related individual assets as of September 30, 2013, and December 31, 2012, and the total losses/(gains) for the periods indicated:

	September 30, 2013								Total Losses/(gains)
	Fair Value Measurements Using								Three Months ended				Nine Months ended
	Level 1		Level 2		Level 3		Total at Fair Value		September 30, 2013		September 30, 2012		September 30, 2013			September 30, 2012
	(In thousands)
Assets
Impaired loans by type:
Commercial loans	$	-	$	-	$	6,502	$	6,502	$	-	$	1,983	$	536		$	2,848
Commercial mortgage loans		-		-		28,533		28,533		394		-		459			-
Construction- residential		-		-		500		500		-		-		-			-
Construction- other		-		-		13,503		13,503		-		-		-			-
Real estate loans		-		-		-		-		-		-		-			301
Residential mortgage loans and equity lines		-		-		13,404		13,404		160		251		191			782
Land loans		-		-		27		27		-		-		-			-
Total impaired loans		-		-		62,469		62,469		554		2,234		1,186			3,931
Other real estate owned (1)		-		27,081		8,321		35,402		111		2,875		(1,267	)		10,602
Investments in venture capital		-		-		9,085		9,085		84		39		295			226
Equity investments		642		-		-		642		-		-		-			43
Total assets	$	642	$	27,081	$	79,875	$	107,598	$	749	$	5,148	$	214		$	14,802

(1) Other real estate owned balance of $49.8 million in the condensed consolidated balance sheet is net of estimated disposal costs.

	December 31, 2012								Total Losses
	Fair Value Measurements Using								Twelve months ended
	Level 1		Level 2		Level 3		Total at Fair Value		December 31, 2012		December 31, 2011
	(In thousands)
Assets
Impaired loans by type:
Commercial loans	$	-	$	-	$	3,492	$	3,492	$	-	$	877
Commercial mortgage loans		-		-		11,295		11,295		440		-
Construction- residential		-		-		500		500		-		-
Construction- other		-		-		46,153		46,153		65		-
Residential mortgage loans and equity lines		-		-		11,206		11,206		605		820
Land loans		-		-		297		297		162		46
Total impaired loans		-		-		72,943		72,943		1,272		1,743
Other real estate owned (1)		-		27,149		4,841		31,990		10,904		7,003
Investments in venture capital		-		-		9,001		9,001		309		379
Equity investments		142		-		-		142		181		200
Total assets	$	142	$	27,149	$	86,785	$	114,076	$	12,666	$	9,325

(1) Other real estate owned balance of $46.4 million in the condensed consolidated balance sheet is net of estimated disposal costs.

The significant unobservable (Level 3) inputs used in the fair value measurement of collateral for collateral-dependent impaired loans was primarily based on the appraised value of collateral adjusted by estimated sales cost and commissions. The Company generally obtains new appraisal reports every nine months. As the Company’s primary objective in the event of default would be to monetize the collateral to settle the outstanding balance of the loan, less marketable collateral would receive a larger discount. During the reported periods, collateral discounts ranged from 45% in the case of accounts receivable collateral to 65% in the case of inventory collateral.

The significant unobservable inputs used in the fair value measurement of loans held for sale was primarily based on the quoted price or sale price adjusted by estimated sales cost and commissions. The significant unobservable inputs used in the fair value measurement of other real estate owned (“OREO”) was primarily based on the appraised value of OREO adjusted by estimated sales cost and commissions.

The Company applies estimated sales cost and commission ranging from 3% to 6% to collateral value of impaired loans, quoted price, or loan sale price of loans held for sale, and appraised value of OREOs.

The significant unobservable inputs in the Black-Scholes option pricing model for the fair value of warrants are the expected life of warrant ranging from 2 to 4 years, risk-free interest rate from 0.33% to 1.01%, and stock volatility from 12.6% to 16.6%.

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Note 7 - Loans

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

7. Loans 

Most of the Company’s business activity is with Asian customers located in Southern and Northern California; New York City, New York; Houston and Dallas, Texas; Seattle, Washington; Boston, Massachusetts; Chicago, Illinois; Edison, New Jersey; Las Vegas, Nevada, and Hong Kong. The Company has no specific industry concentration, and generally its loans are secured by real property or other collateral of the borrowers. Loans are generally expected to be paid off from the operating profits of the borrowers, from refinancing by other lenders, or through sale by the borrowers of the secured collateral.

The components of loans in the condensed consolidated balance sheets as of September 30, 2013, and December 31, 2012, were as follows:

	September 30, 2013			December 31, 2012
	(In thousands)
Type of Loans:
Commercial loans	$	2,237,902		$	2,127,107
Residential mortgage loans		1,293,849			1,146,230
Commercial mortgage loans		3,921,348			3,768,452
Equity lines		173,798			193,852
Real estate construction loans		189,867			180,950
Installment and other loans		15,249			12,556
Gross loans		7,832,013			7,429,147
Less:
Allowance for loan losses		(181,452	)		(183,322	)
Unamortized deferred loan fees		(12,933	)		(10,238	)
Total loans, net	$	7,637,628		$	7,235,587

At September 30, 2013, recorded investment in impaired loans totaled $215.8 million and was comprised of non-accrual loans of $99.9 million, and accruing troubled debt restructured (“TDR”) loans of $115.9 million. At December 31, 2012, recorded investment in impaired loans totaled $248.6 million and was comprised of non-accrual loans of $103.9 million and accruing TDRs of $144.7 million. For impaired loans, the amounts previously charged off represent 22.2% at September 30, 2013, and 23.2% at December 31, 2012, of the contractual balances for impaired loans. The following table presents the average balance and interest income recognized related to impaired loans for the periods indicated:

	Impaired Loans
	Average Recorded Investment								Interest Income Recognized
	Three months ended September 30,				Nine months ended September 30,				Three months ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012		2013		2012		2013		2012
	(In thousands)
Commercial loans	$	32,187	$	25,987	$	24,873	$	33,672	$	166	$	49	$	395	$	146
Real estate construction loans		34,946		41,404		39,014		51,176		67		177		199		531
Commercial mortgage loans		132,921		178,206		145,380		180,959		730		1,971		3,289		5,477
Residential mortgage and equity lines		16,884		18,370		17,574		18,420		106		49		227		148
Total	$	216,938	$	263,967	$	226,841	$	284,227	$	1,069	$	2,246	$	4,110	$	6,302

The following table presents impaired loans and the related allowance for credit losses as of the dates indicated:

	Impaired Loans
	September 30, 2013						December 31, 2012
	Unpaid Principal Balance		Recorded Investment		Allowance		Unpaid Principal Balance		Recorded Investment		Allowance
	(In thousands)
With no allocated allowance
Commercial loans	$	20,896	$	17,699	$	-	$	29,359	$	18,963	$	-
Real estate construction loans		25,438		15,135		-		9,304		7,277		-
Commercial mortgage loans		125,489		94,167		-		189,871		152,957		-
Residential mortgage loans and equity lines		2,978		2,969		-		4,303		4,229		-
Subtotal	$	174,801	$	129,970	$	-	$	232,837	$	183,426	$	-
With allocated allowance
Commercial loans	$	22,099	$	17,352	$	10,849	$	7,804	$	4,959	$	1,467
Real estate construction loans		28,847		19,694		5,691		54,718		34,856		8,158
Commercial mortgage loans		35,582		34,688		6,129		14,163		12,928		1,336
Residential mortgage loans and equity lines		15,951		14,097		693		14,264		12,428		1,222
Subtotal	$	102,479	$	85,831	$	23,362	$	90,949	$	65,171	$	12,183
Total impaired loans	$	277,280	$	215,801	$	23,362	$	323,786	$	248,597	$	12,183

The following table presents the aging of the loan portfolio by type as of September 30, 2013, and as of December 31, 2012:

	September 30, 2013
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Non-accrual Loans		Total Past Due		Loans Not Past Due		Total
Type of Loans:	(In thousands)
Commercial loans	$	17,034	$	4,136	$	-	$	24,506	$	45,676	$	2,192,226	$	2,237,902
Real estate construction loans		-		-		-		28,995		28,995		160,872		189,867
Commercial mortgage loans		2,396		262		499		35,996		39,153		3,882,195		3,921,348
Residential mortgage loans		3,310		2,237		-		10,364		15,911		1,451,736		1,467,647
Installment and other loans		208		-		-		-		208		15,041		15,249
Total loans	$	22,948	$	6,635	$	499	$	99,861	$	129,943	$	7,702,070	$	7,832,013

	December 31, 2012
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Non-accrual Loans		Total Past Due		Loans Not Past Due		Total
Type of Loans:	(In thousands)
Commercial loans	$	16,832	$	1,610	$	630	$	19,958	$	39,030	$	2,088,077	$	2,127,107
Real estate construction loans		-		1,471		-		36,299		37,770		143,180		180,950
Commercial mortgage loans		21,570		3,627		-		35,704		60,901		3,707,551		3,768,452
Residential mortgage loans		5,324		1,972		-		11,941		19,237		1,320,845		1,340,082
Installment and other loans		-		-		-		-		-		12,556		12,556
Total loans	$	43,726	$	8,680	$	630	$	103,902	$	156,938	$	7,272,209	$	7,429,147

The determination of the amount of the allowance for credit losses for impaired loans is based on management’s current judgment about the credit quality of the loan portfolio and takes into consideration known relevant internal and external factors that affect collectibility when determining the appropriate level for the allowance for credit losses. The nature of the process by which the Bank determines the appropriate allowance for credit losses requires the exercise of considerable judgment. This allowance evaluation process is also applied to troubled debt restructurings since they are considered to be impaired loans.

A troubled debt restructuring is a formal modification of the terms of a loan when the lender, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower. The concessions may be granted in various forms, including a change in the stated interest rate, a reduction in the loan balance or accrued interest, or an extension of the maturity date that causes significant delay in payment.

TDRs on accrual status are comprised of the loans that have, pursuant to the Bank’s policy, performed under the restructured terms and have demonstrated sustained performance under the modified terms for nine months before being returned to accrual status. The sustained performance considered by management pursuant to its policy includes the periods prior to the modification if the prior performance met or exceeded the modified terms. This would include cash paid by the borrower prior to the restructure to set up interest reserves.

At September 30, 2013, accruing TDRs were $115.9 million and non-accrual TDRs were $43.6 million compared to accruing TDRs of $144.7 million and non-accrual TDRs of $47.7 million at December 31, 2012. The Company allocated specific reserves of $6.3 million to accruing TDRs and $4.5 million to non-accrual TDRs at September 30, 2013, and $1.1 million to accruing TDRs and $7.8 million to non-accrual TDRs at December 31, 2012. The following table presents TDRs that were modified during the first nine months of 2013 and 2012, their specific reserve at September 30, 2013, and charge-offs during the first nine months of 2013 and 2012:

	Nine months ended September 30, 2013								September 30, 2013
	No. of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Charge-offs		Specific Reserve
	(Dollars in thousands)
Commercial loans		9		11,705		10,516	$	1,189	$	71
Commercial mortgage loans		3		7,474		7,474		-		191
Residential mortgage loans and equity lines		11		3,736		3,658		78		125
Total		23	$	22,915	$	21,648	$	1,267	$	387

	Nine months ended September 30, 2012								September 30, 2013
	No. of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Charge-offs		Specific Reserve
	(Dollars in thousands)
Commercial loans		8	$	2,144	$	2,144	$	-	$	75
Commercial mortgage loans		15		59,299		55,610		3,689		-
Residential mortgage loans and equity lines		7		2,895		2,895		-		70
Total		30	$	64,338	$	60,649	$	3,689	$	145

Modifications of the loan terms during the first nine months of 2013 were in the form of changes in the stated interest rate, and in payment terms to interest only from principal and interest or reduction in monthly payment amount, multiple note structure, and waiver of late charges and collection fees.  The length of time for which modifications involving a reduction of the stated interest rate or changes in payment terms that were documented ranged from twelve months to three years from the modification date. 

We expect that the TDR loans on accruing status as of September 30, 2013, which were all performing in accordance with their restructured terms, will continue to comply with the restructured terms because of the reduced principal or interest payments on these loans. A summary of TDRs by type of concession, and by type of loan as of September 30, 2013, and December 31, 2012, is shown below:

	September 30, 2013
Accruing TDRs	Principal Deferral		Rate Reduction		Rate Reduction and Payment Deferral		Total
	(In thousands)
Commercial loans	$	4,813	$	2,943	$	2,788	$	10,544
Real estate construction loans		-		-		5,833		5,833
Commercial mortgage loans		12,740		9,130		70,991		92,861
Residential mortgage loans		1,573		1,588		3,541		6,702
Total accruing TDRs	$	19,126	$	13,661	$	83,153	$	115,940

	September 30, 2013
Non-accrual TDRs	Interest Deferral		Principal Deferral		Rate Reduction and Forgiveness of Principal		Rate Reduction and Payment Deferral		Total
	(In thousands)
Commercial loans	$	-	$	3,026	$	1,391	$	-	$	4,417
Real estate construction loans		-		16,199		-		9,301		25,500
Commercial mortgage loans		1,464		1,640		-		6,677		9,781
Residential mortgage loans		249		2,241		-		1,420		3,910
Total non-accrual TDRs	$	1,713	$	23,106	$	1,391	$	17,398	$	43,608

	December 31, 2012
Accruing TDRs	Principal Deferral		Rate Reduction		Rate Reduction and Forgiveness of Principal		Rate Reduction and Payment Deferral		Total
	(In thousands)
Commercial loans	$	531	$	3,020	$	-	$	413	$	3,964
Real estate construction loans		-		-		-		5,834		5,834
Commercial mortgage loans		27,003		16,656		739		85,783		130,181
Residential mortgage loans		1,461		1,024		-		2,231		4,716
Total accruing TDRs	$	28,995	$	20,700	$	739	$	94,261	$	144,695

	December 31, 2012
Non-accrual TDRs	Interest Deferral		Principal Deferral		Rate Reduction		Rate Reduction and Forgiveness of Principal		Rate Reduction and Payment Deferral		Total
	(In thousands)
Commercial loans	$	-	$	912	$	-	$	1,518	$	-	$	2,430
Real estate construction loans		-		16,767		9,579		-		-		26,346
Commercial mortgage loans		1,685		2,817		5,746		-		5,076		15,324
Residential mortgage loans		275		2,010		586		-		760		3,631
Total non-accrual TDRs	$	1,960	$	22,506	$	15,911	$	1,518	$	5,836	$	47,731

The activity within our TDR loans for the periods indicated are shown below:

	Three months ended September 30,						Nine months ended September 30,
Accruing TDRs	2013			2012			2013			2012
	(In thousands)
Beginning balance	$	115,464		$	153,249		$	144,695		$	120,016
New restructurings		10,669			14,765			15,485			53,524
Restructured loans restored to accrual status		5,397			3,957			6,851			6,810
Charge-offs		-			(251	)		(78	)		(251	)
Payments		(15,274	)		(1,569	)		(48,663	)		(4,124	)
Restructured loans placed on nonaccrual		(316	)		-			(2,350	)		(5,824	)
Ending balance	$	115,940		$	170,151		$	115,940		$	170,151

	Three months ended September 30,						Nine months ended September 30,
Non-accrual TDRs	2013			2012			2013			2012
	(In thousands)
Beginning balance	$	48,524		$	23,285		$	47,731		$	50,870
New restructurings		2,415			1,153			6,163			7,124
Restructured loans placed on nonaccrual		316			-			2,350			5,824
Charge-offs		(1,188	)		-			(2,121	)		(4,285	)
Payments		(1,062	)		(1,405	)		(3,664	)		(33,647	)
Restructured loans restored to accrual status		(5,397	)		(3,957	)		(6,851	)		(6,810	)
Ending balance	$	43,608		$	19,076		$	43,608		$	19,076

A loan is considered to be in payment default once it is 60 to 90 days contractually past due under the modified terms.  Two commercial loans of $1.4 million were modified as TDRs during the previous twelve months and subsequently defaulted as of September 30, 2013, within the three months and nine months ended September 30, 2013.  None of these TDRs incurred any charge-offs within the twelve month period.

Under the Company’s internal underwriting policy, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification in order to determine whether a borrower is experiencing financial difficulty.

As of September 30, 2013, there were no commitments to lend additional funds to those borrowers whose loans have been restructured, were considered impaired, or were on non-accrual status.

As part of the on-going monitoring of the credit quality of our loan portfolio, the Company utilizes a risk grading matrix to assign a risk grade to each loan. The risk rating categories can be generally described by the following grouping for non-homogeneous loans: 

● Pass/Watch – These loans range from minimal credit risk to lower than average, but still acceptable, credit risk.

● Special Mention – Borrower is fundamentally sound and loan is currently protected but adverse trends are apparent that, if not corrected, may affect ability to repay. Primary source of loan repayment remains viable but there is increasing reliance on collateral or guarantor support.

● Substandard – These loans are inadequately protected by current sound net worth, paying capacity, or pledged collateral. Well-defined weaknesses exist that could jeopardize repayment of debt. Loss may not be imminent, but if weaknesses are not corrected, there is a good possibility of some loss.

● Doubtful – The possibility of loss is extremely high, but due to identifiable and important pending events (which may strengthen the loan), a loss classification is deferred until the situation is better defined.

● Loss – These loans are considered uncollectible and of such little value that to continue to carry the loan as an active asset is no longer warranted.

The following table presents loan portfolio by risk rating as of September 30, 2013, and as of December 31, 2012:

	September 30, 2013
	Pass/Watch		Special Mention		Substandard		Doubtful		Total
	(In thousands)
Commercial loans	$	2,047,158	$	84,776	$	94,088	$	11,880	$	2,237,902
Real estate construction loans		151,696		-		34,676		3,495		189,867
Commercial mortgage loans		3,543,731		137,183		240,434		-		3,921,348
Residential mortgage loans and equity lines		1,453,498		-		14,149		-		1,467,647
Installment and other loans		15,249		-		-		-		15,249
Total gross loans	$	7,211,332	$	221,959	$	383,347	$	15,375	$	7,832,013

	December 31, 2012
	Pass/Watch		Special Mention		Substandard		Doubtful		Total
	(In thousands)
Commercial loans	$	1,944,989	$	76,776	$	94,077	$	11,265	$	2,127,107
Real estate construction loans		109,269		18,000		45,171		8,510		180,950
Commercial mortgage loans		3,344,783		162,455		261,214		-		3,768,452
Residential mortgage loans and equity lines		1,322,768		816		16,084		414		1,340,082
Installment and other loans		12,556		-		-		-		12,556
Total gross loans	$	6,734,365	$	258,047	$	416,546	$	20,189	$	7,429,147

The allowance for loan losses and the reserve for off-balance sheet credit commitments are significant estimates that can and do change based on management’s process in analyzing the loan portfolio and on management’s assumptions about specific borrowers, underlying collateral, and applicable economic and environmental conditions, among other factors.

The following table presents the balance in the allowance for loan losses by portfolio segment and based on impairment method as of September 30, 2013, and as of December 31, 2012:

	Commercial Loans		Real Estate Construction Loans		Commercial Mortgage Loans		Residential Mortgage Loans and Equity Lines		Installment and Other Loans		Total
	(In thousands)
September 30, 2013
Loans individually evaluated for impairment
Allowance	$	10,849	$	5,691	$	6,129	$	693	$	-	$	23,362
Balance	$	35,051	$	34,829	$	128,855	$	17,066	$	-	$	215,801
Loans collectively evaluated for impairment
Allowance	$	55,887	$	10,960	$	79,959	$	11,249	$	35	$	158,090
Balance	$	2,202,851	$	155,038	$	3,792,493	$	1,450,581	$	15,249	$	7,616,212
Total allowance	$	66,736	$	16,651	$	86,088	$	11,942	$	35	$	181,452
Total balance	$	2,237,902	$	189,867	$	3,921,348	$	1,467,647	$	15,249	$	7,832,013
December 31, 2012
Loans individually evaluated for impairment
Allowance	$	1,467	$	8,158	$	1,336	$	1,222	$	-	$	12,183
Balance	$	23,922	$	42,133	$	165,885	$	16,657	$	-	$	248,597
Loans collectively evaluated for impairment
Allowance	$	64,634	$	14,859	$	81,137	$	10,481	$	28	$	171,139
Balance	$	2,103,185	$	138,817	$	3,602,567	$	1,323,425	$	12,556	$	7,180,550
Total allowance	$	66,101	$	23,017	$	82,473	$	11,703	$	28	$	183,322
Total balance	$	2,127,107	$	180,950	$	3,768,452	$	1,340,082	$	12,556	$	7,429,147

The following table details activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2013, and September 30, 2012. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

Three months ended September 30, 2013 and 2012

	Commercial Loans			Real Estate Construction Loans			Commercial Mortgage Loans			Residential Mortgage Loans and Equity Lines			Installment and Other Loans			Total
	(In thousands)
June 30, 2012 Ending Balance		66,595			16,360			99,009			10,254			56			192,274
Provision/(credit) for possible credit losses		6,199			(670	)		(6,350	)		740			(23	)		(104	)
Charge-offs		(7,387	)		(39	)		(966	)		(477	)		-			(8,869	)
Recoveries		331			477			318			11			-			1,137
Net (charge-offs)/recoveries		(7,056	)		438			(648	)		(466	)		-			(7,732	)
September 30, 2012 Ending Balance	$	65,738		$	16,128		$	92,011		$	10,528		$	33		$	184,438
June 30, 2013 Ending Balance	$	64,379		$	13,755		$	89,678		$	11,892		$	29		$	179,733
Provision/(credit) for possible credit losses		2,121			1,660			(5,710	)		52			6			(1,871	)
Charge-offs		(200	)		-			(394	)		(160	)		-			(754	)
Recoveries		436			1,236			2,514			158			-			4,344
Net (charge-offs)/recoveries		236			1,236			2,120			(2	)		-			3,590
September 30, 2013 Ending Balance	$	66,736		$	16,651		$	86,088		$	11,942		$	35		$	181,452

Nine months ended September 30, 2013 and 2012

	Commercial Loans			Real Estate Construction Loans			Commercial Mortgage Loans			Residential Mortgage Loans and Equity Lines			Installment and Other Loans			Total
	(In thousands)
2012 Beginning Balance	$	65,658		$	21,749		$	108,021		$	10,795		$	57		$	206,280
Provision/(credit) for possible credit losses		13,329			(10,081	)		(12,937	)		1,150			(2	)		(8,541	)
Charge-offs		(14,479	)		(1,165	)		(10,647	)		(1,805	)		(25	)		(28,121	)
Recoveries		1,230			5,625			7,574			388			3			14,820
Net (charge-offs)/recoveries		(13,249	)		4,460			(3,073	)		(1,417	)		(22	)		(13,301	)
September 30, 2012 Ending Balance	$	65,738		$	16,128		$	92,011		$	10,528		$	33		$	184,438
Reserve for impaired loans	$	1,791		$	279		$	1,729		$	1,626		$	-		$	5,425
Reserve for non-impaired loans	$	63,947		$	15,849		$	90,282		$	8,902		$	33		$	179,013
Reserve for off-balance sheet credit commitments	$	801		$	668		$	104		$	34		$	3		$	1,610
2013 Beginning Balance	$	66,101		$	23,017		$	82,473		$	11,703		$	28		$	183,322
Provision/(credit) for possible credit losses		3,200			(8,622	)		935			780			(4	)		(3,711	)
Charge-offs		(4,580	)		-			(3,425	)		(766	)		-			(8,771	)
Recoveries		2,015			2,256			6,105			225			11			10,612
Net (charge-offs)/recoveries		(2,565	)		2,256			2,680			(541	)		11			1,841
September 30, 2013 Ending Balance	$	66,736		$	16,651		$	86,088		$	11,942		$	35		$	181,452
Reserve for impaired loans	$	10,849		$	5,691		$	6,129		$	693		$	-		$	23,362
Reserve for non-impaired loans	$	55,887		$	10,960		$	79,959		$	11,249		$	35		$	158,090
Reserve for off-balance sheet credit commitments	$	953		$	287		$	799		$	34		$	1		$	2,074

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Note 2 - Basis of Presentation

9 Months Ended

Sep. 30, 2013

Disclosure Text Block [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

2. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. For further information, refer to the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

The preparation of the condensed consolidated financial statements in accordance with GAAP requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. The most significant estimates subject to change are the allowance for loan losses, goodwill impairment, and other-than-temporary impairment.

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Note 7 - Loans (Details) - Allowance for Loan Losses by Portfolio Segment (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance	$ 181,452		$ 181,452
Beginning Balance			183,322
Provision for possible credit losses			(675)	10,362
Commercial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance	66,736	65,738	66,736	65,738
Reserve for impaired loans	10,849	1,791	10,849	1,791
Reserve for non-impaired loans	55,887	63,947	55,887	63,947
Reserve for off-balance sheet credit commitments	953	801	953	801
Beginning Balance	64,379	66,595	66,101	65,658
Provision for possible credit losses	2,121	6,199	3,200	13,329
Charge-offs	(200)	(7,387)	(4,580)	(14,479)
Recoveries	436	331	2,015	1,230
Net charge-offs	236	(7,056)	(2,565)	(13,249)
Real Estate Construction Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance	16,651	16,128	16,651	16,128
Reserve for impaired loans	5,691	279	5,691	279
Reserve for non-impaired loans	10,960	15,849	10,960	15,849
Reserve for off-balance sheet credit commitments	287	668	287	668
Beginning Balance	13,755	16,360	23,017	21,749
Provision for possible credit losses	1,660	(670)	(8,622)	(10,081)
Charge-offs	0	(39)	0	(1,165)
Recoveries	1,236	477	2,256	5,625
Net charge-offs	1,236	438	2,256	4,460
Commercial Mortgage Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance	86,088	92,011	86,088	92,011
Reserve for impaired loans	6,129	1,729	6,129	1,729
Reserve for non-impaired loans	79,959	90,282	79,959	90,282
Reserve for off-balance sheet credit commitments	799	104	799	104
Beginning Balance	89,678	99,009	82,473	108,021
Provision for possible credit losses	(5,710)	(6,350)	935	(12,937)
Charge-offs	(394)	(966)	(3,425)	(10,647)
Recoveries	2,514	318	6,105	7,574
Net charge-offs	2,120	(648)	2,680	(3,073)
Residential Mortgage And Equity Lines Member
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance	11,942	10,528	11,942	10,528
Reserve for impaired loans	693	1,626	693	1,626
Reserve for non-impaired loans	11,249	8,902	11,249	8,902
Reserve for off-balance sheet credit commitments	34	34	34	34
Beginning Balance	11,892	10,254	11,703	10,795
Provision for possible credit losses	52	740	780	1,150
Charge-offs	(160)	(477)	(766)	(1,805)
Recoveries	158	11	225	388
Net charge-offs	(2)	(466)	(541)	(1,417)
Installment And Other Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance	35	33	35	33
Reserve for impaired loans	0	0	0	0
Reserve for non-impaired loans	35	33	35	33
Reserve for off-balance sheet credit commitments	1	3	1	3
Beginning Balance	29	56	28	57
Provision for possible credit losses	6	(23)	(4)	(2)
Charge-offs	0	0	0	(25)
Recoveries	0	0	11	3
Net charge-offs	0	0	11	(22)
Total [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance	181,452	184,438	181,452	184,438
Reserve for impaired loans	23,362	5,425	23,362	5,425
Reserve for non-impaired loans	158,090	179,013	158,090	179,013
Reserve for off-balance sheet credit commitments	2,074	1,610	2,074	1,610
Beginning Balance	179,733	192,274	183,322	206,280
Provision for possible credit losses	(1,871)	(104)	(3,711)	(8,541)
Charge-offs	(754)	(8,869)	(8,771)	(28,121)
Recoveries	4,344	1,137	10,612	14,820
Net charge-offs	$ 3,590	$ (7,732)	$ 1,841	$ (13,301)

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Note 7 - Loans (Details) - Troubled Debt Restructuring by Type of Concession and Type of Loans (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Modifications [Line Items]
Accruing TDRs	$ 43,608	$ 47,731
Accruing Troubled Debt Restructuring [Member] | Principal Deferral [Member] | Commercial Loans [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	4,813	531
Accruing Troubled Debt Restructuring [Member] | Principal Deferral [Member] | Real Estate Construction Loans [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	0	0
Accruing Troubled Debt Restructuring [Member] | Principal Deferral [Member] | Commercial Mortgage Loans [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	12,740	27,003
Accruing Troubled Debt Restructuring [Member] | Principal Deferral [Member] | Residential Construction [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	1,573	1,461
Accruing Troubled Debt Restructuring [Member] | Principal Deferral [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	19,126	28,995
Accruing Troubled Debt Restructuring [Member] | Rate Reduction [Member] | Commercial Loans [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	2,943	3,020
Accruing Troubled Debt Restructuring [Member] | Rate Reduction [Member] | Real Estate Construction Loans [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	0	0
Accruing Troubled Debt Restructuring [Member] | Rate Reduction [Member] | Commercial Mortgage Loans [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	9,130	16,656
Accruing Troubled Debt Restructuring [Member] | Rate Reduction [Member] | Residential Construction [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	1,588	1,024
Accruing Troubled Debt Restructuring [Member] | Rate Reduction [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	13,661	20,700
Accruing Troubled Debt Restructuring [Member] | Rate Reduction and Payment Deferral [Member] | Commercial Loans [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	2,788	413
Accruing Troubled Debt Restructuring [Member] | Rate Reduction and Payment Deferral [Member] | Real Estate Construction Loans [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	5,833	5,834
Accruing Troubled Debt Restructuring [Member] | Rate Reduction and Payment Deferral [Member] | Commercial Mortgage Loans [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	70,991	85,783
Accruing Troubled Debt Restructuring [Member] | Rate Reduction and Payment Deferral [Member] | Residential Construction [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	3,541	2,231
Accruing Troubled Debt Restructuring [Member] | Rate Reduction and Payment Deferral [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	83,153	94,261
Accruing Troubled Debt Restructuring [Member] | Rate Reduction and Forgiveness of Principal [Member] | Commercial Loans [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs		0
Accruing Troubled Debt Restructuring [Member] | Rate Reduction and Forgiveness of Principal [Member] | Real Estate Construction Loans [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs		0
Accruing Troubled Debt Restructuring [Member] | Rate Reduction and Forgiveness of Principal [Member] | Commercial Mortgage Loans [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs		739
Accruing Troubled Debt Restructuring [Member] | Rate Reduction and Forgiveness of Principal [Member] | Residential Construction [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs		0
Accruing Troubled Debt Restructuring [Member] | Rate Reduction and Forgiveness of Principal [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs		739
Accruing Troubled Debt Restructuring [Member] | Commercial Loans [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	10,544	3,964
Accruing Troubled Debt Restructuring [Member] | Real Estate Construction Loans [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	5,833	5,834
Accruing Troubled Debt Restructuring [Member] | Commercial Mortgage Loans [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	92,861	130,181
Accruing Troubled Debt Restructuring [Member] | Residential Construction [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	6,702	4,716
Accruing Troubled Debt Restructuring [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	115,940	144,695
Commercial Loans [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	4,417	2,430
Real Estate Construction Loans [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	25,500	26,346
Commercial Mortgage Loans [Member]
Financing Receivable, Modifications [Line Items]
Accruing TDRs	$ 9,781	$ 15,324

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Note 5 - Stock-Based Compensation (Details) (USD $)	0 Months Ended			3 Months Ended				9 Months Ended		12 Months Ended
	May 17, 2013	Apr. 15, 2013	Mar. 14, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Note 5 - Stock-Based Compensation (Details) [Line Items]
Maximum Period Of Common Stock Granted				10				10
Annual Increments To Be Vested In Common Stock Units				20.00%				20.00%
Stock or Unit Option Plan Expense				$ 0			$ 194,000
Allocated Share-based Compensation Expense								129,000	581,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares)					0	0		0	39,784
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options									647,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value									34,000
(in Shares)	1,454	6,729	14,416							125,133
GrantSharesAveragePriceDuringPeriodRestrictedStockUnitAward (in Dollars per share)	$ 20.63	$ 18.91	$ 20.57							$ 18.24
Restricted Stock Units (RSUs) [Member]
Note 5 - Stock-Based Compensation (Details) [Line Items]
Stock or Unit Option Plan Expense				476,000			459,000
Allocated Share-based Compensation Expense								1,600,000	1,200,000
(in Shares)								22,599
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized				$ 1,600,000				$ 1,600,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition								1 year 36 days
2005 Incentive Plan [Member]
Note 5 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares)				2,655,759				2,655,759
Restricted Stock Units Granted in 2011, 2012 and 2013 [Member]
Note 5 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period								2 years

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Note 16 - Stockholders' Equity (Details) - Accumulated Other Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Accumulated Other Comprehensive Income [Abstract]
Beginning balance, net of tax	$ (15,073)		$ 465
Ending balance, net of tax	(21,183)		(21,183)
Net unrealized losses arising during the period	(1,854)		(48,245)
Net unrealized losses arising during the period	(780)		(20,282)
Net unrealized losses arising during the period	(1,074)		(27,963)
Reclassification adjustment for net securities losses included in net income	(8,688)		(27,157)
Reclassification adjustment for net securities losses included in net income	(3,652)		(11,417)
Reclassification adjustment for net securities losses included in net income	(5,036)	(5,015)	(15,740)	(7,674)
Net unrealized gains arising from transferring securities held-to-maturity to available-for-sale	0		38,052
Net unrealized gains arising from transferring securities held-to-maturity to available-for-sale	0		15,997
Net unrealized gains arising from transferring securities held-to-maturity to available-for-sale	0		22,055
Total other comprehensive income	(10,542)		(37,350)
Total other comprehensive income	(4,432)		(15,702)
Total other comprehensive income	$ (6,110)	$ 5,635	$ (21,648)	$ 10,679

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Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended				12 Months Ended
	Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2013		Sep. 30, 2012		Dec. 31, 2012		Dec. 31, 2011
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Total Losses for the Year	$ 749		$ 5,148		$ 214		$ 14,802		$ 12,666		$ 9,325
Commercial Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0				0
Commercial Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0				0
Commercial Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	6,502				6,502				3,492
Commercial Loans [Member] | Impaired Loans [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	6,502				6,502				3,492
Commercial Loans [Member] | Impaired Loans [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Total Losses for the Year	0		1,983		536		2,848		0		877
Commercial Mortgage Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0				0
Commercial Mortgage Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0				0
Commercial Mortgage Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	28,533				28,533				11,295
Commercial Mortgage Loans [Member] | Impaired Loans [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	28,533				28,533				11,295
Commercial Mortgage Loans [Member] | Impaired Loans [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Total Losses for the Year	394		0		459		0		440		0
Construction Residential [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0				0
Construction Residential [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0				0
Construction Residential [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	500				500				500
Construction Residential [Member] | Impaired Loans [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	500				500				500
Construction Residential [Member] | Impaired Loans [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Total Losses for the Year	0		0		0		0		0		0
Construction - Other Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0				0
Construction - Other Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0				0
Construction - Other Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	13,503				13,503				46,153
Construction - Other Loans [Member] | Impaired Loans [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	13,503				13,503				46,153
Construction - Other Loans [Member] | Impaired Loans [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Total Losses for the Year	0		0		0		0		65		0
Real Estate Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0
Real Estate Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0
Real Estate Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0
Real Estate Loans [Member] | Impaired Loans [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0
Real Estate Loans [Member] | Impaired Loans [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Total Losses for the Year	0		0		0		301
Residential Mortgage And Equity Lines Member | Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0				0
Residential Mortgage And Equity Lines Member | Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0				0
Residential Mortgage And Equity Lines Member | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	13,404				13,404				11,206
Residential Mortgage And Equity Lines Member | Impaired Loans [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	13,404				13,404				11,206
Residential Mortgage And Equity Lines Member | Impaired Loans [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Total Losses for the Year	160		251		191		782		605		820
Land Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0				0
Land Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0				0
Land Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	27				27				297
Land Loans [Member] | Impaired Loans [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	27				27				297
Land Loans [Member] | Impaired Loans [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Total Losses for the Year	0		0		0		0		162		46
Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0				0
Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0				0
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	62,469				62,469				72,943
Impaired Loans [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	62,469				62,469				72,943
Impaired Loans [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Total Losses for the Year	554		2,234		1,186		3,931		1,272		1,743
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0	[1]			0	[1]			0	[2]
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	27,081	[1]			27,081	[1]			27,149	[2]
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	8,321	[1]			8,321	[1]			4,841	[2]
Other Real Estate Owned [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	35,402	[1]			35,402	[1]			31,990	[2]
Other Real Estate Owned [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Total Losses for the Year	111	[1]	2,875	[1]	(1,267)	[1]	10,602	[1]	10,904	[2]	7,003	[2]
Investments in Venture Capital [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0				0
Investments in Venture Capital [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0				0
Investments in Venture Capital [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	9,085				9,085				9,001
Investments in Venture Capital [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	9,085				9,085				9,001
Investments in Venture Capital [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Total Losses for the Year	84		39		295		226		309		379
Equity Investments [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	642				642				142
Equity Investments [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0				0
Equity Investments [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	0				0				0
Equity Investments [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	642				642				142
Equity Investments [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Total Losses for the Year	0		0		0		43		181		200
Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	642				642				142
Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	27,081				27,081				27,149
Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	79,875				79,875				86,785
Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Three and Six Months Ended [Line Items]
Asstes Measured at Fair Value on a Nonrecurring Basis	$ 107,598				$ 107,598				$ 114,076

[1] Other real estate owned balance of $49.8 million in the condensed consolidated balance sheet is net of estimated disposal costs.

[2] Other real estate owned balance of $46.4 million in the condensed consolidated balance sheet is net of estimated disposal costs.

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Note 14 - Financial Derivatives

9 Months Ended

Sep. 30, 2013

Derivative Instrument Detail [Abstract]

Schedule of Derivative Instruments [Table Text Block]

14. Financial Derivatives

It is the policy of the Company not to speculate on the future direction of interest rates. However, the Company enters into financial derivatives in order to seek mitigation of exposure to interest rate risks related to our interest-earning assets and interest-bearing liabilities. We believe that these transactions, when properly structured and managed, may provide a hedge against inherent interest rate risk in the Company’s assets or liabilities and against risk in specific transactions. In such instances, the Company may protect its position through the purchase or sale of interest rate futures contracts for a specific cash or interest rate risk position. Other hedge transactions may be implemented using interest rate swaps, interest rate caps, floors, financial futures, forward rate agreements, and options on futures or bonds. Prior to considering any hedging activities, we seek to analyze the costs and benefits of the hedge in comparison to other viable alternative strategies. All hedges will require an assessment of basis risk and must be approved by the Bank’s Investment Committee.

The Company follows ASC Topic 815 that establishes accounting and reporting standards for financial derivatives, including certain financial derivatives embedded in other contracts, and hedging activities. It requires the recognition of all financial derivatives as assets or liabilities in the Company’s consolidated balance sheet and measurement of those financial derivatives at fair value. The accounting treatment of changes in fair value is dependent upon whether or not a financial derivative is designated as a hedge and, if so, the type of hedge.

The Company enters into foreign exchange forward contracts and foreign currency option contracts with various counter parties to mitigate the risk of fluctuations in foreign currency exchange rates for foreign exchange certificates of deposit, foreign exchange contracts, or foreign currency option contracts entered into with our clients. These contracts are not designated as hedging instruments and are recorded at fair value in our condensed consolidated balance sheets. Changes in the fair value of these contracts as well as the related foreign exchange certificates of deposit, foreign exchange contracts or foreign currency option contracts are recognized immediately in net income as a component of non-interest income. Period end gross positive fair values are recorded in other assets and gross negative fair values are recorded in other liabilities. At September 30, 2013, the notional amount of option contracts totaled $101,000 with a net negative fair value of $1,000. Spot and forward contracts in the total notional amount of $277.4 million had a positive fair value of $5.8 million at September 30, 2013. Spot and forward contracts in the total notional amount of $185.6 million had a negative fair value of $4.7 million at September 30, 2013. At December 31, 2012, the notional amount of option contracts totaled $209,000 with a net negative fair value of $2,000. Spot and forward contracts in the total notional amount of $188.1 million had a positive fair value of $2.9 million at December 31, 2012. Spot and forward contracts in the total notional amount of $133.7 million had a negative fair value of $1.6 million at December 31, 2012.

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Note 10 - Income Taxes

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

10. Income Taxes

Income tax expense totaled $52.5 million, or an effective tax rate of 36.5%, for the first nine months of 2013, compared to an income tax expense of $50.9 million, or an effective tax rate of 36.3%, for the same period a year ago. The effective tax rate includes the impact of the utilization of low income housing tax credits and recognition of other tax credits for both years.

As of December 31, 2012, the Company had income tax refunds receivable of $12.4 million. These income tax receivables are included in other assets in the accompanying condensed consolidated balance sheets.

The Company’s tax returns are open for audits by the Internal Revenue Service back to 2010 and by the California Franchise Tax Board back to 2003. The Company is under audit by the California Franchise Tax Board for the years 2003 to 2007. As the Company is presently under audit by a number of tax authorities, it is reasonably possible that unrecognized tax benefits could change significantly over the next twelve months. The Company does not expect that any such changes would have a material impact on its annual effective tax rate.

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Note 4 - Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three months ended September 30,						Nine months ended September 30,
(Dollars in thousands, except share and per share data)	2013			2012			2013			2012
Net income attributable to Cathay General Bancorp	$	32,478		$	30,358		$	91,241		$	89,132
Dividends on preferred stock and noncash charge from repayment		(2,434	)		(4,123	)		(9,685	)		(12,361	)
Net income available to common stockholders	$	30,044		$	26,235		$	81,556		$	76,771
Weighted-average shares:
Basic weighted-average number of common shares outstanding		78,894,262			78,729,272			78,853,333			78,706,150
Dilutive effect of weighted-average outstanding common share equivalents
Warrants		171,426			-			57,771			-
Restricted stock units		48,434			1,908			33,048			5,085
Diluted weighted-average number of common shares outstanding		79,114,122			78,731,180			78,944,152			78,711,235
Average stock options and warrants with anti-dilutive effect		3,668,285			6,080,292			4,958,218			6,133,089
Earnings per common share:
Basic	$	0.38		$	0.33		$	1.03		$	0.98
Diluted	$	0.38		$	0.33		$	1.03		$	0.98

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Note 15 - Balance Sheet Offsetting

9 Months Ended

Sep. 30, 2013

Disclosure Text Block Supplement [Abstract]

Supplemental Balance Sheet Disclosures [Text Block]

15. Balance Sheet Offsetting

Certain financial instruments, including resell and repurchase agreements, securities lending arrangements and derivatives, may be eligible for offset in the consolidated balance sheet and/or subject to master netting arrangements or similar agreements. The Company’s securities sold with agreement to repurchase and derivative transactions with upstream financial institution counter parties are generally executed under International Swaps and Derivative Association master agreements which include “right of set-off” provisions. In such cases there is generally a legally enforceable right to offset recognized amounts and there may be an intention to settle such amounts on a net basis. Nonetheless, the Company does not generally offset such financial instruments for financial reporting purposes.

Financial instruments that are eligible for offset in the condensed consolidated balance sheets, as of September 30, 2013, and December 31, 2012, are presented in the following tables:

							Gross Amounts Not Offset in the Statement of Financial Position
(In thousands)	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Balance Sheet		Net Amounts of Liabilities Presented in the Balance Sheet		Financial Instruments		Collateral Posted			Net Amount
September 30, 2013
Securities sold under agreements to repurchase	$	800,000	$	-	$	800,000	$	-	$	(800,000	)	$	-
December 31, 2012
Securities sold under agreements to repurchase	$	1,250,000	$	-	$	1,250,000	$	-	$	(1,250,000	)	$	-

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Document And Entity Information	9 Months Ended
	Sep. 30, 2013	Oct. 31, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	CATHAY GENERAL BANCORP
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		79,060,396
Amendment Flag	false
Entity Central Index Key	0000861842
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Sep. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3

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Note 16 - Stockholders' Equity

9 Months Ended

Sep. 30, 2013

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

16. Stockholders’ Equity

Total equity was $1.44 billion at September 30, 2013, a decrease of $194.2 million, or 11.9%, from $1.63 billion at December 31, 2012, primarily due to the redemptions in two equal installments on March 20, 2013 and on September 30, 2013 of Bancorp’s $258 million of Series B Preferred Stock issued under the U.S. Treasury's TARP Capital Purchase Program and increases in unrealized losses on securities available for sale of $21.6 million offset by $91.7 million in net income.

The accumulated other comprehensive loss as of September 30, 2013, was all from unrealized losses on securities available-for-sale. Activity in accumulated other comprehensive income, net of tax, and reclassification out of accumulated other comprehensive income for the three months and nine months ended September 30, 2013, was as follows:

	Three months ended September 30, 2013									Nine months ended September 30, 2013
	Pre-tax			Tax expense			Net-of-tax			Pre-tax			Tax expense			Net-of-tax
	(In thousands)
Beginning balance, net of tax							$	(15,073	)							$	465
Net unrealized losses arising during the period	$	(1,854	)	$	(780	)	$	(1,074	)	$	(48,245	)	$	(20,282	)	$	(27,963	)
Reclassification adjustment for net securities losses included in net income		(8,688	)		(3,652	)		(5,036	)		(27,157	)		(11,417	)		(15,740	)
Net unrealized gains arising from transferring securities held-to-maturity to available-for-sale		-			-			-			38,052			15,997			22,055
Total other comprehensive income	$	(10,542	)	$	(4,432	)	$	(6,110	)	$	(37,350	)	$	(15,702	)	$	(21,648	)
Ending balance, net of tax							$	(21,183	)							$	(21,183	)

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Note 12 - Fair Value of Financial Instruments (Details) - Fair Value of Financial Instruments (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011
Financial Assets
Cash and due from banks	$ 201,815	$ 144,909	$ 114,646	$ 117,888
Securities held-to-maturity		773,768
Securities held-to-maturity		823,906
Securities available-for-sale	1,743,309	1,291,480
Trading securities	4,855	4,703
Investment in Federal Home Loan Bank stock	28,683	41,272
Financial Liabilities
Deposits	7,918,543	7,383,225
Securities sold under agreements to repurchase	800,000	1,250,000
Advances from Federal Home Loan Bank	376,200	146,200
Long-term debt	171,136	171,136
Carrying Amount [Member]
Financial Assets
Cash and due from banks	201,815	144,909
Short-term investments	389,024	411,983
Short-term investments	389,024	411,983
Securities held-to-maturity	0	773,768
Securities available-for-sale	1,743,309	1,291,480
Trading securities	4,855	4,703
Loans, net	7,637,628	7,235,587
Investment in Federal Home Loan Bank stock	28,683	41,272
Warrants	49	104
Option contracts	0	105
Foreign exchange contracts	277,430	188,145
Financial Liabilities
Deposits	7,918,543	7,383,225
Securities sold under agreements to repurchase	800,000	1,250,000
Advances from Federal Home Loan Bank	376,200	146,200
Other borrowings	19,108	18,713
Long-term debt	171,136	171,136
Option contracts	0	104
Foreign exchange contracts	185,558	133,669
Off-Balance Sheet Financial Instruments
Commitments to extend credit	1,760,520	1,740,463
Standby letters of credit	46,457	44,672
Other letters of credit	88,601	71,073
Bill of lading guarantees	172	77
Fair Value [Member]
Financial Assets
Cash and due from banks	201,815	144,909
Short-term investments	389,024	411,983
Short-term investments	389,024	411,983
Securities held-to-maturity	0	823,906
Securities available-for-sale	1,743,309	1,291,480
Trading securities	4,855	4,703
Loans, net	7,460,436	7,169,732
Investment in Federal Home Loan Bank stock	28,683	41,272
Warrants	49	104
Option contracts	0	0
Foreign exchange contracts	5,816	2,924
Financial Liabilities
Deposits	7,917,105	7,389,015
Securities sold under agreements to repurchase	858,315	1,361,585
Advances from Federal Home Loan Bank	376,429	146,789
Other borrowings	16,020	14,573
Long-term debt	97,604	98,392
Option contracts	1	2
Foreign exchange contracts	4,725	1,586
Off-Balance Sheet Financial Instruments
Commitments to extend credit	(1,919)	(1,875)
Standby letters of credit	(200)	(204)
Other letters of credit	(50)	(34)
Bill of lading guarantees	$ 0	$ 0

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Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended				12 Months Ended
	Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2013		Sep. 30, 2012		Dec. 31, 2012		Dec. 31, 2011
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Total Losses for the Year	$ 749		$ 5,148		$ 214		$ 14,802		$ 12,666		$ 9,325
Commercial Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	0				0				0
Commercial Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	0				0				0
Commercial Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	6,502				6,502				3,492
Commercial Loans [Member] | Impaired Loans [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	6,502				6,502				3,492
Commercial Loans [Member] | Impaired Loans [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Total Losses for the Year	0		1,983		536		2,848		0		877
Commercial Mortgage Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	0				0				0
Commercial Mortgage Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	0				0				0
Commercial Mortgage Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	28,533				28,533				11,295
Commercial Mortgage Loans [Member] | Impaired Loans [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	28,533				28,533				11,295
Commercial Mortgage Loans [Member] | Impaired Loans [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Total Losses for the Year	394		0		459		0		440		0
Construction Residential [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	0				0				0
Construction Residential [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	0				0				0
Construction Residential [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	500				500				500
Construction Residential [Member] | Impaired Loans [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	500				500				500
Construction Residential [Member] | Impaired Loans [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Total Losses for the Year	0		0		0		0		0		0
Construction - Other Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	0				0				0
Construction - Other Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	0				0				0
Construction - Other Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	13,503				13,503				46,153
Construction - Other Loans [Member] | Impaired Loans [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	13,503				13,503				46,153
Construction - Other Loans [Member] | Impaired Loans [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Total Losses for the Year	0		0		0		0		65		0
Residential Mortgage And Equity Lines Member | Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	0				0				0
Residential Mortgage And Equity Lines Member | Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	0				0				0
Residential Mortgage And Equity Lines Member | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	13,404				13,404				11,206
Residential Mortgage And Equity Lines Member | Impaired Loans [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	13,404				13,404				11,206
Residential Mortgage And Equity Lines Member | Impaired Loans [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Total Losses for the Year	160		251		191		782		605		820
Land Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	0				0				0
Land Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	0				0				0
Land Loans [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	27				27				297
Land Loans [Member] | Impaired Loans [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	27				27				297
Land Loans [Member] | Impaired Loans [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Total Losses for the Year	0		0		0		0		162		46
Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	0				0				0
Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	0				0				0
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	62,469				62,469				72,943
Impaired Loans [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	62,469				62,469				72,943
Impaired Loans [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Total Losses for the Year	554		2,234		1,186		3,931		1,272		1,743
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	0	[1]			0	[1]			0	[2]
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	27,081	[1]			27,081	[1]			27,149	[2]
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	8,321	[1]			8,321	[1]			4,841	[2]
Other Real Estate Owned [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	35,402	[1]			35,402	[1]			31,990	[2]
Other Real Estate Owned [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Total Losses for the Year	111	[1]	2,875	[1]	(1,267)	[1]	10,602	[1]	10,904	[2]	7,003	[2]
Investments in Venture Capital [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	0				0				0
Investments in Venture Capital [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	0				0				0
Investments in Venture Capital [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	9,085				9,085				9,001
Investments in Venture Capital [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	9,085				9,085				9,001
Investments in Venture Capital [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Total Losses for the Year	84		39		295		226		309		379
Equity Investments [Member] | Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	642				642				142
Equity Investments [Member] | Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	0				0				0
Equity Investments [Member] | Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	0				0				0
Equity Investments [Member] | Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	642				642				142
Equity Investments [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Total Losses for the Year	0		0		0		43		181		200
Fair Value, Inputs, Level 1 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	642				642				142
Fair Value, Inputs, Level 2 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	27,081				27,081				27,149
Fair Value, Inputs, Level 3 [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	79,875				79,875				86,785
Estimate of Fair Value Measurement [Member]
Note 11 - Fair Value Measurements (Details) - Financial Asset and Liabilities Measured on a Non-Recurring Basis Twelve Months Ended [Line Items]
Assets Measured at Fair Value on a Nonrecurring Basis	$ 107,598				$ 107,598				$ 114,076

[1] Other real estate owned balance of $49.8 million in the condensed consolidated balance sheet is net of estimated disposal costs.

[2] Other real estate owned balance of $46.4 million in the condensed consolidated balance sheet is net of estimated disposal costs.