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Note 22 - Regulatory Matters | 12 Months Ended
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Dec. 31, 2012
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. See Note 11 for discussion of possible future disallowance of Capital Securities as Tier 1 capital. 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, 2011 and 2009, 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, 2012, and December 31, 2011, are presented in the tables below:
|  | As of December 31, 2012 |  |  | As of December 31, 2011 |
|  | Company |  |  | Bank |  |  | Company |  |  | Bank |
|  | Balance |  |  | Percentage |  |  | Balance |  |  | Percentage |  |  | Balance |  |  | Percentage |  |  | Balance |  |  | Percentage |
|  | (Dollars in thousands) |
Tier I Capital (to risk-weighted assets) |  | $ | 1,426,566 |  |  |  | 17.36 | % |  | $ | 1,259,005 |  |  |  | 15.33 | % |  | $ | 1,318,948 |  |  |  | 15.97 | % |  | $ | 1,289,747 |  |  |  | 15.64 | %
Tier I Capital minimum requirement |  |  | 328,713 |  |  |  | 4.00 |  |  |  | 328,440 |  |  |  | 4.00 |  |  |  | 330,355 |  |  |  | 4.00 |  |  |  | 329,928 |  |  |  | 4.00 |
Excess |  | $ | 1,097,853 |  |  |  | 13.36 | % |  | $ | 930,565 |  |  |  | 11.33 | % |  | $ | 988,593 |  |  |  | 11.97 | % |  | $ | 959,819 |  |  |  | 11.64 | %
Total Capital (to risk-weighted assets) |  | $ | 1,571,060 |  |  |  | 19.12 | % |  | $ | 1,402,691 |  |  |  | 17.08 | % |  | $ | 1,474,496 |  |  |  | 17.85 | % |  | $ | 1,444,165 |  |  |  | 17.51 | %
Total Capital minimum requirement |  |  | 657,426 |  |  |  | 8.00 |  |  |  | 656,880 |  |  |  | 8.00 |  |  |  | 660,710 |  |  |  | 8.00 |  |  |  | 659,855 |  |  |  | 8.00 |
Excess |  | $ | 913,634 |  |  |  | 11.12 | % |  | $ | 745,811 |  |  |  | 9.08 | % |  | $ | 813,786 |  |  |  | 9.85 | % |  | $ | 784,310 |  |  |  | 9.51 | %
Tier I Capital (to average assets)Leverage ratio |  | $ | 1,426,566 |  |  |  | 13.82 | % |  | $ | 1,259,005 |  |  |  | 12.22 | % |  | $ | 1,318,948 |  |  |  | 12.93 | % |  | $ | 1,289,747 |  |  |  | 12.66 | %
Minimum leverage requirement |  |  | 412,844 |  |  |  | 4.00 |  |  |  | 412,272 |  |  |  | 4.00 |  |  |  | 408,146 |  |  |  | 4.00 |  |  |  | 407,643 |  |  |  | 4.00 |
Excess |  | $ | 1,013,722 |  |  |  | 9.82 | % |  | $ | 846,733 |  |  |  | 8.22 | % |  | $ | 910,802 |  |  |  | 8.93 | % |  | $ | 882,104 |  |  |  | 8.66 | %
Total average assets (1) |  | $ | 10,321,104 |  |  |  |  |  |  | $ | 10,306,790 |  |  |  |  |  |  | $ | 10,203,647 |  |  |  |  |  |  | $ | 10,191,078 |  |  |  |  |
Risk-weighted assets |  | $ | 8,217,821 |  |  |  |  |  |  | $ | 8,211,004 |  |  |  |  |  |  | $ | 8,258,878 |  |  |  |  |  |  | $ | 8,248,190 |  |  |  |  |
| (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”) under which it agreed that it will not, without the FRB SF’s prior written approval, (i) receive any dividends or any other form of payment or distribution representing a reduction of capital from the Bank, or (ii) declare or pay any dividends, make any payments on trust preferred securities, or make any other capital distributions. Under the memorandum, the Bancorp agreed to submit to the FRB SF for review and approval a plan to maintain sufficient capital at the Bancorp on a consolidated basis and at the Bank, a dividend policy for the Bancorp, a plan to improve management of its liquidity position and funds management practices, and a liquidity policy and contingency funding plan for the Bancorp. As part of its compliance with the memorandum, on January 22, 2010, the Bancorp submitted to the FRB SF a Three-Year Capital and Strategic Plan that updates a previously submitted plan and establishes, among other things, targets for its Tier 1 risk-based capital ratio, total risk-based capital ratio, Tier 1 leverage capital ratio and tangible common risk-based ratio, each of which, where applicable, are above the minimum requirements for a well-capitalized institution. In addition, the Bancorp agreed to notify the FRB SF prior to effecting certain changes to its senior executive officers and board of directors and it is limited and/or prohibited, in certain circumstances, in its ability to enter into contracts to pay and to make golden parachute severance and indemnification payments. The Bancorp also agreed in the memorandum that we will not, without the prior written approval of the FRB SF, directly or indirectly, (i) incur, renew, increase or guaranty any debt, (ii) issue any additional trust preferred securities, or (iii) purchase, redeem, or otherwise acquire any stock. Until it was terminated as of November 7, 2012, the Bank was subject to a memorandum of understanding with the California Department of Financial Institutions (“DFI”) and the Federal Deposit Insurance Corporation (“FDIC’) that was entered into on March 1, 2010, by which the Bank agreed to undertake certain steps to strengthen its operations. The Bank was required to develop and implement, within specified time periods, plans satisfactory to the DFI and the FDIC to reduce commercial real estate concentrations, to enhance and to improve the quality of our stress testing of the Bank’s loan portfolio, and to revise our loan policy in connection therewith; to develop and adopt a strategic plan addressing improved profitability and capital ratios and to reduce the Bank’s overall risk profile; to develop and adopt a capital plan; to develop and implement a plan to improve asset quality, including the methodology for calculating the loss reserve allocation and evaluating its adequacy; and to develop and implement a plan to reduce dependence on wholesale funding. In addition, we were required to report our progress to the DFI and FDIC on a quarterly basis. As part of our compliance with the Bank memorandum, on April 30, 2010, we submitted to the DFI and the FDIC a Three-Year Capital Plan that updated the Three-Year Capital and Strategic Plan previously submitted to the FRB SF on January 22, 2010, and established, among other things, targets for our Tier 1 risk-based capital ratio and total risk-based capital ratio, each of which are above the minimum requirements for a well-capitalized institution and effective June 30, 2010, a target Tier 1 to total tangible assets ratio. We were in compliance with the applicable target ratios through the date of termination of the memorandum.

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- Definition The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1C -URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958572-112826 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958573-112826 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-DEP -Paragraph 15, 16, 17 -IssueDate 2006-05-01 -Chapter 17 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1E -URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958574-112826 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958568-112826 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958570-112826 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1H -URI http://asc.fasb.org/extlink&oid=7881181&loc=d3e65071-112826 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958569-112826 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958575-112826 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1G -URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958577-112826 + Details
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