XML 38 R26.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Regulatory Matters | 12 Months Ended
--- | ---
Dec. 31, 2024
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] |
Regulatory Matters | 16. 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 including the capital conservation buffer results in a minimum required CET1 capital ratio of 7.0%, a Tier 1 risk-based capital ratio of 8.5% and 10.5% for the 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, 2024 and 2023, the Company and the Bank meet all capital adequacy requirements to which they are subject. As of December 31, 2024 and 2023, 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. The following table summarizes regulatory capital amounts and ratios for the Company and the Bank as of December 31, 2024 and 2023.
|  | 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, 2024: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tier 1 Capital (to Average- Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 1,727,872 |  |  |  | 11.46 | % |  | $ | 603,247 |  |  | > |  |  | 4.00 | % |  |  |  |  |  |  | N/A |
Bank |  | $ | 1,704,433 |  |  |  | 11.30 | % |  | $ | 603,506 |  |  | > |  |  | 4.00 | % |  | $ | 754,382 |  |  | > |  |  | 5.00 | %
Common equity Tier 1 capital ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 1,727,872 |  |  |  | 16.24 | % |  | $ | 744,579 |  |  | > |  |  | 7.00 | % |  |  |  |  |  |  | N/A |
Bank |  | $ | 1,704,433 |  |  |  | 16.01 | % |  | $ | 745,068 |  |  | > |  |  | 7.00 | % |  | $ | 691,849 |  |  | > |  |  | 6.50 | %
Tier 1 Capital (to Risk-Weighted Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 1,727,872 |  |  |  | 16.24 | % |  | $ | 904,131 |  |  | > |  |  | 8.50 | % |  |  |  |  |  |  | N/A |
Bank |  | $ | 1,704,433 |  |  |  | 16.01 | % |  | $ | 904,726 |  |  | > |  |  | 8.50 | % |  | $ | 851,507 |  |  | > |  |  | 8.00 | %
Total Capital (to Risk-Weighted Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 1,814,244 |  |  |  | 17.06 | % |  | $ | 1,116,868 |  |  | > |  |  | 10.50 | % |  |  |  |  |  |  | N/A |
Bank |  | $ | 1,790,805 |  |  |  | 16.82 | % |  | $ | 1,117,602 |  |  | > |  |  | 10.50 | % |  | $ | 1,064,383 |  |  | > |  |  | 10.00 | %
As of December 31, 2023: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tier 1 Capital (to Average- Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 1,626,626 |  |  |  | 10.27 | % |  | $ | 633,372 |  |  | > |  |  | 4.00 | % |  |  |  |  |  |  | N/A |
Bank |  | $ | 1,610,514 |  |  |  | 10.17 | % |  | $ | 633,582 |  |  | > |  |  | 4.00 | % |  | $ | 791,978 |  |  | > |  |  | 5.00 | %
Common equity Tier 1 capital ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 1,626,626 |  |  |  | 14.65 | % |  | $ | 777,359 |  |  | > |  |  | 7.00 | % |  |  |  |  |  |  | N/A |
Bank |  | $ | 1,610,514 |  |  |  | 14.49 | % |  | $ | 777,782 |  |  | > |  |  | 7.00 | % |  | $ | 722,226 |  |  | > |  |  | 6.50 | %
Tier 1 Capital (to Risk-Weighted Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 1,626,626 |  |  |  | 14.65 | % |  | $ | 943,936 |  |  | > |  |  | 8.50 | % |  |  |  |  |  |  | N/A |
Bank |  | $ | 1,610,514 |  |  |  | 14.49 | % |  | $ | 944,450 |  |  | > |  |  | 8.50 | % |  | $ | 888,894 |  |  | > |  |  | 8.00 | %
Total Capital (to Risk-Weighted Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 1,720,968 |  |  |  | 15.50 | % |  | $ | 1,166,038 |  |  | > |  |  | 10.50 | % |  |  |  |  |  |  | N/A |
Bank |  | $ | 1,704,856 |  |  |  | 15.34 | % |  | $ | 1,166,673 |  |  | > |  |  | 10.50 | % |  | $ | 1,111,118 |  |  | > |  |  | 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, 2024, declare and pay additional dividends of approximately $235.0 million.

X
- References No definition available. + Details
Name: | srt_RegulatoryCapitalRequirementsAbstract
Namespace Prefix: | srt_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (c)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1D -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1D Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1F -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1F + Details
Name: | us-gaap_RegulatoryCapitalRequirementsUnderBankingRegulationsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration