SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2011

SHAREHOLDERS' EQUITY [Abstract]

SHAREHOLDERS' EQUITY

15. SHAREHOLDERS' EQUITY

Cash dividends declared and paid were $0.90, $0.85 and $0.75 per share for the years ended December 31, 2011, 2010 and 2009, 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.

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 Total and Tier 1 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, 2011, we exceeded all regulatory minimum capital requirements.

In addition, for a depository institution to be considered “well capitalized” under the regulatory framework for prompt corrective action, its Tier 1 and Total Capital ratios must be at least 6.0% and 10.0% on a risk-adjusted basis, respectively and its leverage ratio must be at least 5.0%.

As of December 31, 2011, 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 Total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table.  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
As of December 31, 2011:	(dollars in thousands)
Total Capital (to Risk Weighted Assets)
Consolidated	$	296,715		22.36	%	$	106,152		8.00	%		N/A		N/A
Bank Only	$	285,539		21.52	%	$	106,159		8.00	%	$	132,699		10.00	%
Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	280,050		21.11	%	$	53,076		4.00	%		N/A		N/A
Bank Only	$	268,874		20.26	%	$	53,080		4.00	%	$	79,619		6.00	%
Tier 1 Capital (to Average Assets) (1)
Consolidated	$	280,050		8.63	%	$	129,795		4.00	%		N/A		N/A
Bank Only	$	268,874		8.29	%	$	129,698		4.00	%	$	162,122		5.00	%
As of December 31, 2010:
Total Capital (to Risk Weighted Assets)
Consolidated	$	273,787		21.07	%	$	103,978		8.00	%		N/A		N/A
Bank Only	$	262,798		20.24	%	$	103,879		8.00	%	$	129,848		10.00	%
Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	257,449		19.81	%	$	51,989		4.00	%		N/A		N/A
Bank Only	$	246,460		18.98	%	$	51,939		4.00	%	$	77,909		6.00	%
Tier 1 Capital (to Average Assets) (1)
Consolidated	$	257,449		8.44	%	$	122,026		4.00	%		N/A		N/A
Bank Only	$	246,460		8.09	%	$	121,893		4.00	%	$	152,367		5.00	%

(1) Refers to quarterly average assets as calculated 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.