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Stockholders' Equity and Regulatory Matters
 12 Months Ended
Dec. 31, 2013
Stockholders’ Equity and Regulatory Matters [Abstract]  
Stockholders' Equity and Regulatory Matters
STOCKHOLDERS’ EQUITY AND REGULATORY MATTERS

In June 2012, the Company redeemed $67 million and $55 million of Series A and Series B Preferred Stock having a liquidation preference and warrants to purchase the Company's common stock that was issued under the U.S. Treasury's TARP Capital Purchase Program. On August 8, 2012, the Company purchased from the Treasury Department, the outstanding warrant dated November 21, 2008 relating to 521,266 shares of the Company's common stock, at a purchase price of $2.2 million. As of December 31, 2013, the Company has not reached agreement with the Treasury Department regarding repurchase of the warrant for the purchase of 337,480 shares of the Company's common stock.
The Company and the Bank are subject to various regulatory capital requirements administered by the federal and state banking 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, such as restrictions on the growth, expansion or the payment of dividends or other capital distributions or management fees. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments 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 ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined). Management believes that, as of December 31, 2013 and December 31, 2012, the Company and the Bank met all capital adequacy requirements to which they are subject.
As of December 31, 2013 and December 31, 2012, the most recent regulatory notification categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier I risk-based and Tier I leverage ratios as set forth in the table below. There are no conditions or events since the notification that management believes have changed the Bank’s category.
The Company’s and the Bank’s actual capital amounts and ratios are presented in the table below:

 
Actual

Required
For Capital
Adequacy Purposes

Required
To Be Well
Capitalized under
Prompt Corrective
Action Provisions
 
Amount

Ratio

Amount

Ratio

Amount

Ratio
 
(Dollars in thousands)
As of December 31, 2013
 

 

 

 

 

 
Total capital (to risk-weighted assets):











Company
$
819,408

 
14.90
%

$
439,687


8.0
%

N/A


N/A

Bank
$
807,620

 
14.70
%

$
439,437


8.0
%

$
549,471


10.0
%
Tier I capital (to risk-weighted assets):

 









Company
$
751,204

 
13.66
%

$
219,844


4.0
%

N/A


N/A

Bank
$
739,416

 
13.46
%

$
219,798


4.0
%

$
329,683


6.0
%
Tier I capital (to average assets):

 









Company
$
751,204

 
11.97
%

$
251,049


4.0
%

N/A


N/A

Bank
$
739,416

 
11.79
%

$
250,954


4.0
%

$
313,687


5.0
%
 
Actual

Required
For Capital
Adequacy Purposes

Required
To Be Well
Capitalized under
Prompt Corrective
Action Provisions
 
Amount

Ratio

Amount

Ratio

Amount

Ratio
 
(Dollars in thousands)
As of December 31, 2012
 

 

 

 

 

 
Total capital (to risk-weighted assets):











Company
$
746,396


16.20
%

$
369,417


8.0
%

N/A


N/A

Bank
$
725,655


15.70
%

$
369,134


8.0
%

$
461,417


10.0
%
Tier I capital (to risk-weighted assets):











Company
$
688,422


14.90
%

$
184,708


4.0
%

N/A


N/A

Bank
$
667,725


14.50
%

$
184,567


4.0
%

$
276,850


6.0
%
Tier I capital (to average assets):











Company
$
688,422


12.80
%

$
215,861


4.0
%

N/A


N/A

Bank
$
667,725


12.40
%

$
215,813


4.0
%

$
269,767


5.0
%