Note 18 - Restrictions on Dividends

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Dividend Payment Restrictions [Text Block]

NOTE

1

8

— RESTRICTIONS ON DIVIDENDS

Under current California State banking laws, the Bank

may

not

pay cash dividends in an amount that exceeds the lesser of retained earnings of the Bank or the Bank’s net earnings for its last

three

fiscal years (less the amount of any distributions to shareholders made during that period). If the above requirements are

not

met, cash dividends

may

only be paid with the prior approval of the Commissioner of the Department of Business Oversight, in an amount

not

exceeding the Bank’s net earnings for its last fiscal year or the amount of its net earnings for its current fiscal year. Accordingly, the future payment of cash dividends will depend on the Bank’s earnings and its ability to meet its capital requirements.