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Regulatory Matters | 12 Months Ended
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Dec. 31, 2022
Broker-Dealer, Net Capital Requirement, SEC Regulation [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. The Bank and the Company are required to meet risk-based capital standards under the revised capital framework referred to as Basel III set by their respective regulatory authorities. The risk-based capital standards require the achievement of a minimum common equity Tier 1 (“CET1”) capital ratio of 4.5%, Tier 1 risk-based capital ratio of 6.0% and total risk-based capital ratio of 8.0%. In addition, the regulatory authorities require the highest rated institutions to maintain a minimum leverage ratio of 4.0%. To be considered “well-capitalized” for bank regulatory purposes, the Bank and the Company are required to have a Tier 1 leverage ratio equal to or greater than 5.0%, a CET1 capital ratio equal to or greater than 6.5%, a Tier 1 risk-based capital ratio equal to or greater than 8.0%, a total risk-based capital ratio equal to or greater than 10.0%. In addition to meeting the minimum capital requirements, under the Basel III Capital Rules, the Company and the Bank must also maintain the required Capital Conservation Buffer to avoid becoming subject to restrictions on capital distributions and certain discretionary bonus payments to management. The Capital Conservation Buffer is calculated as a ratio of CET1 capital to risk-weighted assets, and it effectively increases the required minimum risk-based capital ratios. The Capital Conservation Buffer is now at its fully phased-in level of 2.5% and with the minimum required plus capital conservation buffer of 7.0% for common equity Tier 1 (“CET1”) capital ratio, a Tier 1 risk-based capital ratio of 8.5% and a 10.5% for total risk-based capital ratio. 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 CET1 capital to risk-weighted assets, and of Tier 1 capital to average assets. Management believes that, as of December 31, 2022 and 2021, the Company and the Bank meet all capital adequacy requirements to which they are subject. As of December 31, 2022 and 2021, 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, CET1 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, 2020, the Company had $25.8 million of trust-preferred securities, which were included in Tier 1 capital for regulatory purposes, respectively. These securities were redeemed on June 15, 2021. The following table summarizes regulatory capital amounts and ratios for the Company and the Bank as of December 31, 2022 and 2021.
|  | Actual |  |  | Minimum Required Plus Capital Conservation Buffer |  |  | To Be Well Capitalized under Prompt Corrective Action Provisions |
|  | Amount |  |  | Ratio |  |  | Amount |  |  |  |  | Ratio |  |  | Amount |  |  |  |  | Ratio |
|  | (Dollars in thousands) |
As of December 31, 2022: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tier 1 Capital (to Average- Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 1,525,162 |  |  |  | 9.53 | % |  | $ | 639,881 |  |  | ≥ |  |  | 4.00 | % |  |  |  |  |  |  | N/A |
Bank |  | $ | 1,507,346 |  |  |  | 9.42 | % |  | $ | 639,816 |  |  | ≥ |  |  | 4.00 | % |  | $ | 799,769 |  |  | ≥ |  |  | 5.00 | %
Common equity Tier 1 capital ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 1,525,162 |  |  |  | 13.55 | % |  | $ | 788,184 |  |  | ≥ |  |  | 7.00 | % |  |  |  |  |  |  | N/A |
Bank |  | $ | 1,507,346 |  |  |  | 13.39 | % |  | $ | 788,037 |  |  | ≥ |  |  | 7.00 | % |  | $ | 731,748 |  |  | ≥ |  |  | 6.50 | %
Tier 1 Capital (to Risk-Weighted Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 1,525,162 |  |  |  | 13.55 | % |  | $ | 957,080 |  |  | ≥ |  |  | 8.50 | % |  |  |  |  |  |  | N/A |
Bank |  | $ | 1,507,346 |  |  |  | 13.39 | % |  | $ | 956,902 |  |  | ≥ |  |  | 8.50 | % |  | $ | 900,614 |  |  | ≥ |  |  | 8.00 | %
Total Capital (to Risk-Weighted Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 1,618,279 |  |  |  | 14.37 | % |  | $ | 1,182,276 |  |  | ≥ |  |  | 10.50 | % |  |  |  |  |  |  | N/A |
Bank |  | $ | 1,600,463 |  |  |  | 14.22 | % |  | $ | 1,182,055 |  |  | ≥ |  |  | 10.50 | % |  | $ | 1,125,767 |  |  | ≥ |  |  | 10.00 | %
As of December 31, 2021: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tier 1 Capital (to Average- Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 1,406,434 |  |  |  | 9.18 | % |  | $ | 613,072 |  |  | ≥ |  |  | 4.00 | % |  |  |  |  |  |  | N/A |
Bank |  | $ | 1,363,879 |  |  |  | 8.90 | % |  | $ | 612,983 |  |  | ≥ |  |  | 4.00 | % |  | $ | 766,229 |  |  | ≥ |  |  | 5.00 | %
Common equity Tier 1 capital ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 1,406,434 |  |  |  | 14.86 | % |  | $ | 662,520 |  |  | ≥ |  |  | 7.00 | % |  |  |  |  |  |  | N/A |
Bank |  | $ | 1,363,879 |  |  |  | 14.41 | % |  | $ | 662,494 |  |  | ≥ |  |  | 7.00 | % |  | $ | 615,173 |  |  | ≥ |  |  | 6.50 | %
Tier 1 Capital (to Risk-Weighted Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 1,406,434 |  |  |  | 14.86 | % |  | $ | 804,489 |  |  | ≥ |  |  | 8.50 | % |  |  |  |  |  |  | N/A |
Bank |  | $ | 1,363,879 |  |  |  | 14.41 | % |  | $ | 804,457 |  |  | ≥ |  |  | 8.50 | % |  | $ | 757,136 |  |  | ≥ |  |  | 8.00 | %
Total Capital (to Risk-Weighted Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 1,479,453 |  |  |  | 15.63 | % |  | $ | 993,780 |  |  | ≥ |  |  | 10.50 | % |  |  |  |  |  |  | N/A |
Bank |  | $ | 1,436,989 |  |  |  | 15.18 | % |  | $ | 993,741 |  |  | ≥ |  |  | 10.50 | % |  | $ | 946,420 |  |  | ≥ |  |  | 10.00 | %
In addition, the California Financial Code 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, 2022, declare and pay additional dividends of approximately $98.7 million.

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- Definition The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI https://asc.fasb.org/extlink&oid=117337116&loc=SL5958575-112826 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (c)(2) -URI https://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI https://asc.fasb.org/extlink&oid=117337116&loc=SL5958569-112826 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (a)(2) -URI https://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (a)(1) -URI https://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI https://asc.fasb.org/extlink&oid=117337116&loc=SL5958573-112826 + Details
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