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Regulatory Matters
 12 Months Ended
Dec. 31, 2013
Banking And Thrift [Abstract]  
Regulatory Matters

18. REGULATORY MATTERS

The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking regulatory agencies. Failure to meet minimum capital requirements can initiate certain mandatory — and possibly additional discretionary — actions by regulators that, if undertaken, could have a direct, material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgment by the regulators about components, risk-weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (primarily common stock and retained earnings, less goodwill) to risk-weighted assets, and of Tier 1 capital to average assets. Management believes that, as of December 31, 2013 and 2012, the Company and the Bank meet all capital adequacy requirements to which they are subject.

As of December 31, 2013 and 2012, the most recent notifications from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage (tangible Tier 1 capital divided by average total assets) ratios as set forth in the table below must be maintained. There are no conditions or events since said notification that management believes have changed the Bank’s category.

 

As of December 31, 2013 and 2012, the Company had $25.0 million and $65.0 million of trust-preferred securities, which were included in Tier 1 capital for regulatory purposes. The following table summarizes regulatory capital amounts and ratios for the Company and the Bank as of December 31, 2013, and 2012:

 

                                   To Be Well Capitalized  
                For Capital     under Prompt Corrective  
    Actual     Adequacy Purposes     Action Provisions  
    Amount     Ratio     Amount            Ratio     Amount           Ratio  
    (Dollars in thousands)  

As of December 31, 2013:

                 

Total Capital (to Risk- Weighted Assets)

                 

Company

   $ 801,719        19.09 %    $ 336,008       ³          8.00 %          N/A   

Bank

   $ 794,239        18.93 %    $ 335,740       ³          8.00 %    $ 419,675      ³          10.00 % 

Tier I Capital (to Risk- Weighted Assets)

                 

Company

   $ 748,825        17.83 %    $ 168,004       ³          4.00 %          N/A   

Bank

   $ 741,386        17.67 %    $ 167,870       ³          4.00 %    $ 251,805      ³          6.00 % 

Tier I Capital (to Average- Assets)

                 

Company

   $ 748,825        11.30 %    $ 265,035       ³          4.00 %          N/A   

Bank

   $ 741,386        11.20 %    $ 264,893       ³          4.00 %    $ 331,117      ³          5.00 % 

As of December 31, 2012:

                 

Total Capital (to Risk- Weighted Assets)

                 

Company

   $ 776,101        19.49 %    $ 318,564       ³          8.00 %          N/A   

Bank

   $ 756,954        19.03 %    $ 318,215       ³          8.00 %    $ 397,769      ³          10.00 % 

Tier I Capital (to Risk- Weighted Assets)

                 

Company

   $ 725,702        18.23 %    $ 159,232       ³          4.00 %          N/A   

Bank

   $ 706,611        17.77 %    $ 159,057       ³          4.00 %    $ 238,586      ³          6.00 % 

Tier I Capital (to Average- Assets)

                 

Company

   $ 725,702        11.50 %    $ 252,418       ³          4.00 %          N/A   

Bank

   $ 706,611        11.21 %    $ 252,136       ³          4.00 %    $ 315,170      ³          5.00 % 

In addition, California Banking Law limits the amount of dividends a bank can pay without obtaining prior approval from bank regulators. Under this law, the Bank could, as of December 31, 2013, declare and pay additional dividends of approximately $52.6 million.