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Regulatory Matters
 12 Months Ended
Dec. 31, 2015
Banking and Thrift [Abstract]  
Regulatory Matters

19. 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.

Effective January 1, 2015, the Company and the Bank became subject to a new regulatory capital measure called common equity Tier 1 to risk-weighted assets which was implemented as a result of the “Basel III” regulatory capital reforms and changes required by the Dodd-Frank Act.

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 capital, Tier 1 capital and common equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. Management believes that, as of December 31, 2015 and 2014, the Company and the Bank meet all capital adequacy requirements to which they are subject.

As of December 31, 2015 and 2014, 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, common equity 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, 2015 and 2014, the Company had $25.0 million of trust-preferred securities, which were included in Tier 1 capital for regulatory purposes, respectively. The following table summarizes regulatory capital amounts and ratios for the Company and the Bank as of December 31, 2015 and 2014.

 

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

As of December 31, 2015:

                

Total Capital (to Risk-Weighted Assets)

                

Company

     $   914,972        18.23 %      $   401,532      ³          8.00 %          N/A   

Bank

     $ 905,563        18.06 %      $ 401,053      ³          8.00 %      $   501,316      ³          10.00 % 

Tier 1 Capital (to Risk-Weighted Assets)

                

Company

     $ 852,189        16.98 %      $ 301,149      ³          6.00 %          N/A   

Bank

     $ 842,854        16.81 %      $ 300,790      ³          6.00 %      $ 401,053      ³          8.00 % 

Common equity Tier 1 capital ratio

                

Company

     $ 827,547        16.49 %      $ 225,861      ³          4.50 %          N/A   

Bank

     $ 842,854        16.81 %      $ 225,592      ³          4.50 %      $ 325,856      ³          6.50 % 

Tier 1 Capital (to Average-Assets)

                

Company

     $ 852,189        11.22 %      $ 303,794      ³          4.00 %          N/A   

Bank

     $ 842,854        11.11 %      $ 303,527      ³          4.00 %      $ 379,409      ³          5.00 % 

As of December 31, 2014:

                

Total Capital (to Risk-Weighted Assets)

                

Company

     $ 853,147        18.24 %      $ 374,144      ³          8.00 %          N/A   

Bank

     $ 845,951        18.11 %      $ 373,758      ³          8.00 %      $ 467,197      ³          10.00 % 

Tier 1 Capital (to Risk-Weighted Assets)

                

Company

     $ 794,576        16.99 %      $ 187,072      ³          4.00 %          N/A   

Bank

     $ 787,439        16.85 %      $ 186,879      ³          4.00 %      $ 280,318      ³          6.00 % 

Tier 1 Capital (to Average-Assets)

                

Company

     $ 794,576        10.86 %      $ 292,615      ³          4.00 %          N/A   

Bank

     $ 787,439        10.77 %      $ 292,392      ³          4.00 %      $ 365,490      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, 2015, declare and pay additional dividends of approximately $152.5 million.