SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2018

Regulatory Capital Requirements [Abstract]

SHAREHOLDERS' EQUITY

SHAREHOLDERS’ EQUITY

Cash dividends declared and paid were $1.20, $1.11 and $1.01 per share for the years ended December 31, 2018, 2017 and 2016, respectively.  Future dividends will depend on our earnings, financial condition and other factors which the board of directors considers to be relevant.  Our dividend policy requires that any cash dividend payments made may not exceed consolidated earnings for that year.

On December 6, 2016, we entered into an underwriting agreement, pursuant to which we sold 2,185,000 shares of our common stock at a price of $36.50 per share.  We received $200.1 million in net proceeds, after deducting underwriting discounts and costs. These net proceeds were used primarily for general corporate purposes.

We are subject to various regulatory capital requirements administered by the federal 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 our financial statements.  Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices.  Our capital amounts and classification are also subject to qualitative judgments by the regulators regarding components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require us to maintain minimum amounts and ratios (set forth in the table below) of Common Equity Tier 1, Tier 1 and Total Capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 Capital (as defined) to average assets (as defined).  At December 31, 2018, we exceeded all regulatory minimum capital requirements.

As of December 31, 2018, the most recent notification from the FDIC categorized us as well capitalized under the regulatory framework for prompt corrective action.  To be categorized as well capitalized we must maintain minimum Common Equity Tier 1 risk-based, Tier 1 risk-based, Total risk-based and Tier 1 leverage ratios as set forth in the table below.  There are no conditions or events since that notification that management believes have changed our category.

	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Actions Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2018:	(dollars in thousands)
Common Equity Tier 1 (to Risk Weighted Assets)
Consolidated	$	568,283	14.77	%	$	173,174	4.50	%	N/A		N/A
Bank Only	$	714,991	18.59	%	$	173,095	4.50	%	$	250,026	6.50	%
Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	626,718	16.29	%	$	230,899	6.00	%	N/A		N/A
Bank Only	$	714,991	18.59	%	$	230,793	6.00	%	$	307,725	8.00	%
Total Capital (to Risk Weighted Assets)
Consolidated	$	754,034	19.59	%	$	307,865	8.00	%	N/A		N/A
Bank Only	$	743,900	19.34	%	$	307,725	8.00	%	$	384,656	10.00	%
Tier 1 Capital (to Average Assets) (1)
Consolidated	$	626,718	10.64	%	$	235,689	4.00	%	N/A		N/A
Bank Only	$	714,991	12.14	%	$	235,532	4.00	%	$	294,415	5.00	%
December 31, 2017:
Common Equity Tier 1 (to Risk Weighted Assets)
Consolidated	$	570,610	14.65	%	$	175,216	4.50	%	N/A		N/A
Bank Only	$	711,157	18.27	%	$	175,145	4.50	%	$	252,987	6.50	%
Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	627,532	16.12	%	$	233,621	6.00	%	N/A		N/A
Bank Only	$	711,157	18.27	%	$	233,527	6.00	%	$	311,369	8.00	%
Total Capital (to Risk Weighted Assets)
Consolidated	$	748,532	19.22	%	$	311,495	8.00	%	N/A		N/A
Bank Only	$	733,909	18.86	%	$	311,369	8.00	%	$	389,211	10.00	%
Tier 1 Capital (to Average Assets) (1)
Consolidated	$	627,532	11.16	%	$	224,844	4.00	%	N/A		N/A
Bank Only	$	711,157	12.66	%	$	224,741	4.00	%	$	280,926	5.00	%

(1) Refers to quarterly average assets as calculated in accordance with policies established by bank regulatory agencies.

Our payment of dividends is limited under regulation.  The amount that can be paid in any calendar year without prior approval of our regulatory agencies cannot exceed the lesser of net profits (as defined) for that year plus the net profits for the preceding two calendar years or retained earnings.