Note 22 - Regulatory Matters

12 Months Ended

Dec. 31, 2014

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, 2014 and 2013, 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, 2014, and December 31, 2013, are presented in the tables below:

	As of December 31, 2014										As of December 31, 2013
	Company					Bank					Company					Bank
	Balance		Percentage			Balance		Percentage			Balance		Percentage			Balance		Percentage
	(Dollars in thousands)
Tier I Capital (to risk- weighted assets)	$	1,406,511		14.96	%	$	1,353,481		14.42	%	$	1,288,892		15.04	%	$	1,244,480		14.53	%
Tier I Capital minimum requirement		376,072		4.00			375,318		4.00			342,899		4.00			342,701		4.00
Excess	$	1,030,439		10.96	%	$	978,163		10.42	%	$	945,993		11.04	%	$	901,779		10.53	%
Total Capital (to risk- weighted assets)	$	1,524,702		16.22	%	$	1,471,337		15.68	%	$	1,401,319		16.35	%	$	1,352,415		15.79	%
Total Capital minimum requirement		752,144		8.00			750,637		8.00			685,799		8.00			685,402		8.00
Excess	$	772,558		8.22	%	$	720,700		7.68	%	$	715,520		8.35	%	$	667,013		7.79	%
Tier I Capital (to average assets) Leverage ratio	$	1,406,511		12.99	%	$	1,353,481		12.52	%	$	1,288,892		12.48	%	$	1,244,480		12.06	%
Minimum leverage requirement		433,121		4.00			432,350		4.00			413,158		4.00			412,815		4.00
Excess	$	973,390		8.99	%	$	921,131		8.52	%	$	875,734		8.48	%	$	831,665		8.06	%
Total average assets (1)	$	10,828,015				$	10,808,747				$	10,328,952				$	10,320,368
Risk-weighted assets	$	9,401,803				$	9,382,961				$	8,572,487				$	8,567,523

(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).