Note 22 - Regulatory Matters

12 Months Ended

Dec. 31, 2013

Disclosure Text Block [Abstract]

Regulatory Capital Requirements under Banking Regulations [Text Block]

22.     Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

The Federal Deposit Insurance Corporation has established five capital ratio categories: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized,” and “critically undercapitalized.” A well capitalized institution must have a Tier 1 capital ratio of at least 6%, a total risk-based capital ratio of at least 10%, and a leverage ratio of at least 5%. At December 31, 2013 and 2012, the Bank qualified as well capitalized under the regulatory framework for prompt corrective action.

The Bancorp’s and the Bank’s capital and leverage ratios as of December 31, 2013, and December 31, 2012, are presented in the tables below:

	As of December 31, 2013										As of December 31, 2012
	Company					Bank					Company					Bank
	Balance		Percentage			Balance		Percentage			Balance		Percentage			Balance		Percentage
	(Dollars in thousands)
Tier I Capital (to risk- weighted assets)	$	1,288,892		15.04	%	$	1,244,480		14.53	%	$	1,426,566		17.36	%	$	1,259,005		15.33	%
Tier I Capital minimum requirement		342,899		4.00			342,701		4.00			328,713		4.00			328,440		4.00
Excess	$	945,993		11.04	%	$	901,779		10.53	%	$	1,097,853		13.36	%	$	930,565		11.33	%
Total Capital (to risk- weighted assets)	$	1,401,319		16.35	%	$	1,352,415		15.79	%	$	1,571,060		19.12	%	$	1,402,691		17.08	%
Total Capital minimum requirement		685,799		8.00			685,402		8.00			657,426		8.00			656,880		8.00
Excess	$	715,520		8.35	%	$	667,013		7.79	%	$	913,634		11.12	%	$	745,811		9.08	%
Tier I Capital (to average assets) Leverage ratio	$	1,288,892		12.48	%	$	1,244,480		12.06	%	$	1,426,566		13.82	%	$	1,259,005		12.22	%
Minimum leverage requirement		413,158		4.00			412,815		4.00			412,844		4.00			412,272		4.00
Excess	$	875,734		8.48	%	$	831,665		8.06	%	$	1,013,722		9.82	%	$	846,733		8.22	%
Total average assets (1)	$	10,328,952				$	10,320,368				$	10,321,104				$	10,306,790
Risk-weighted assets	$	8,572,487				$	8,567,523				$	8,217,821				$	8,211,004

(1) Average assets represent average balances for the fourth quarter of each year presented.

On December 17, 2009, the Bancorp entered into a memorandum of understanding with Federal Reserve Bank of San Francisco (the “FRB SF”). 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. increased dividend payments or stock redemptions).