Note 13 - Stockholders' Equity and Earnings Per Share

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

13.     Stockholders’ Equity and Earnings per Share

       As a bank holding company, the Bancorp’s ability to pay dividends will depend upon the dividends it receives from the Bank and on the income it may generate from any other activities in which it may engage, either directly or through other subsidiaries.

Under California banking law, the Bank may not, without regulatory approval, pay a cash dividend that exceeds the lesser of the Bank’s retained earnings or its net income for the last three fiscal years, less any cash distributions made during that period. Under this regulation, the amount of retained earnings available for cash dividends to the Company immediately after December 31, 2015, is restricted to approximately $98.4 million.

Activity in accumulated other comprehensive income, net of tax, and reclassification out of accumulated other comprehensive income for the years ended December 31, 2015, and 2014 was as follows:

	2015									2014
	Pre-tax			Tax expense/ (Benefit)			Net-of-tax			Pre-tax			Tax expense/ (Benefit)			Net-of-tax
	(In thousands)
Beginning balance, loss, net of tax
Securities available-for-sale							$	(3,172	)							$	(29,729	)
Cash flow hedge derivatives								(2,397	)								-
Total							$	(5,569	)							$	(29,729	)
Net unrealized (losses)/gains arising during the period
Securities available-for-sale	$	(7,247	)	$	(3,047	)	$	(4,200	)	$	52,573		$	22,105		$	30,468
Cash flow hedge derivatives		(1,032	)		(434	)		(598	)		(4,136	)		(1,739	)		(2,397	)
Total		(8,279	)		(3,481	)		(4,798	)		48,437			20,366			28,071
Reclassification adjustment for net losses/(gains) included in net income
Securities available-for-sale		3,349			1,408			1,941			(6,748	)		(2,837	)		(3,911	)
Cash flow hedge derivatives		-			-			-			-			-			-
Total		3,349			1,408			1,941			(6,748	)		(2,837	)		(3,911	)
Total other comprehensive (loss)/income
Securities available-for-sale		(3,898	)		(1,639	)		(2,259	)		45,825			19,268			26,557
Cash flow hedge derivatives		(1,032	)		(434	)		(598	)		(4,136	)		(1,739	)		(2,397	)
Total	$	(4,930	)	$	(2,073	)	$	(2,857	)	$	41,689		$	17,529		$	24,160
Ending balance, loss, net of tax
Securities available-for sale							$	(5,431	)							$	(3,172	)
Cash flow hedge derivatives								(2,995	)								(2,397	)
Total							$	(8,426	)							$	(5,569	)

The Board of Directors of the Bancorp is authorized to issue preferred stock in one or more series and to fix the voting powers, designations, preferences or other rights of the shares of each such class or series and the qualifications, limitations, and restrictions thereon. Any preferred stock issued by the Bancorp may rank prior to the Bancorp common stock as to dividend rights, liquidation preferences, or both, may have full or limited voting rights, and may be convertible into shares of the Bancorp common stock.

      The following is the reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the years as indicated:

	Year Ended December 31,
	2015						2014						2013
					Per						Per							Per
	Income		Shares		Share		Income		Shares		Share		Income			Shares		Share
	(Numerator)		(Denominator)		Amount		(Numerator)		(Denominator)		Amount		(Numerator)			(Denominator)		Amount
	(In thousands, except shares and per share data)
Net income	$	161,109					$	137,830					$	123,143
Dividends on preferred stock		-						-						(9,685	)
Basic EPS, income	$	161,109		80,563,577	$	2.00	$	137,830		79,661,571	$	1.73	$	113,458			78,954,898	$	1.44
Effect of dilutive stock options				731,219						445,324							183,085
Diluted EPS, income	$	161,109		81,294,796	$	1.98	$	137,830		80,106,895	$	1.72	$	113,458			79,137,983	$	1.43

Options to purchase an additional 988,569 shares at December 31, 2015, and 2.0 million shares at December 31, 2014, were not included in the computation of diluted earnings per share because their inclusion would have had an anti-dilutive effect.