|
Unconsolidated VIEs
<br />The following tables present the carrying amount of assets, liabilities and our maximum exposure to
<br />loss related to our unconsolidated VIEs in our consolidated balance sheets at:
<br />(dollars in thousands)
<br />Tax credit investments
<br />Limited liability company
<br />(0 Reported in other assets or other liabilities.
<br />(dollars in thousands)
<br />Tax credit investments
<br />Limited liability company
<br />(I) Reported in other assets or other liabilities.
<br />Total
<br />Assets(»
<br />$152,877
<br />3,837
<br />Total
<br />Assets")
<br />$109,464
<br />3,842
<br />December 31, 2011
<br />Maximum
<br />Total Exposure
<br />Liabilities" to Loss
<br />$66,124 $277,856
<br />3,837
<br />December 31, 2010
<br />Maximum
<br />Total Exposure
<br />Liabilities" to Loss
<br />$23,407 $219,435
<br />3,842
<br />10. Regulatory Capital Requirements
<br />The Bank is subject to various regulatory capital requirements administered by federal banking
<br />agencies. If the Bank fails to meet minimum capital requirements, these agencies can initiate certain
<br />discretionary and mandatory actions. Such regulatory actions could have a material effect on the Bank's
<br />financial statements. The Bank constantly monitors its regulatory capital levels and, if necessary, may
<br />obtain capital from its Parent company through BNP Paribas or by other means. In 2010, the Bank received
<br />$1 billion in capital through the issuance of common stock to help ensure compliance with the regulatory
<br />capital requirements.
<br />Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the
<br />Bank must meet specific capital guidelines that involve quantitative measures of its assets and certain
<br />off -balance sheet items as calculated under regulatory accounting practices. These capital amounts and
<br />classifications are also subject to qualitative judgments by the regulators about components, risk
<br />weightings and other factors.
<br />Quantitative measures established by regulation to ensure capital adequacy require the Bank to
<br />maintain adequate levels of Tier 1 and Total capital to risk -weighted assets and Tier 1 capital to average
<br />assets. The table below sets forth those ratios at December 31, 2011 and 2010.
<br />(dollars in thousands)
<br />As of December 31, 2011
<br />Tier 1 capital to risk -weighted
<br />assets
<br />Total capital to risk -weighted
<br />assets
<br />Tier 1 leverage ratio01
<br />As of December 31, 2010
<br />Tier 1 capital to risk -weighted
<br />assets
<br />Total capital to risk -weighted
<br />assets
<br />Tier 1 leverage ratio01
<br />Actual
<br />Amount Ratio
<br />For Capital
<br />Adequacy Purposes
<br />Amount Ratio
<br />To be Well -Capitalized
<br />Under Prompt Corrective
<br />Action Provisions
<br />Amount Ratio
<br />$6,679,424 14.20% $1,882,089 4.00% $2,823,133 6.00"/0
<br />7,271,352 15.45 3,764,178 8.00 4,705,222 10.00
<br />6,679,424 11.57 2,309,521 4.00 2,886,902 5.00
<br />$5,979,172 13.32% $1,795,229 4.00% $2,692,843 6.00%
<br />6,546,329 14.59 3,590,457 8.00 4,488,072 10.00
<br />5,979,172 11.22 2,132,475 4.00 2,665,594 5.00
<br />p1 The leverage ratio consists of a ratio of Tier 1 capital to average assets, excluding goodwill and certain other items. The minimum
<br />leverage ratio guideline is 3% for banking organizations that do not anticipate or are not experiencing significant growth, and that
<br />have well -diversified risk, excellent asset quality, high liquidity, good earnings, are considered strong banking organizations and
<br />rated a composite 1 under the Uniform Financial Institution Rating System established by the Federal Financial Institution
<br />Examination Council. For all others, the minimum ratio is 4%.
<br />-34-
<br />2011 Bank of the West Annual Report
<br />
|