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Note 18 - Equity Incentive Plans | 12 Months Ended
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Dec. 31, 2016
Notes to Financial Statements |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 18 . Equity Incentive Plans In 1998, the Board adopted the Cathay Bancorp, Inc. Equity Incentive Plan. Under the Equity Incentive Plan, as amended in September, 2003, directors and eligible employees may be granted incentive or non-statutory stock options and/or restricted stock units, or awarded non-vested stock, for up to 7,000,000 shares of the Company’s common stock on a split adjusted basis. In May 2005, the stockholders of the Company approved the 2005 Incentive Plan. In May 2015, the stockholders of the Company approved, amendment, and restatement of the 2005 Incentive Plan which provides that 3,562,168 shares of the Company’s common stock may be granted as incentive or non-statutory stock options, or as restricted stock, or as restricted stock units. As of December 31, 2016, the only options granted by the Company under the 2005 Incentive Plan, as amended and restated, were non-statutory stock options to selected bank officers and non-employee directors at exercise prices equal to the fair market value of a share of the Company’s common stock on the date of grant. Such options have a maximum ten -year term and vest in 20% annual increments (subject to early termination in certain events) except certain options granted to Mr. Dunson K. Cheng in 2005 and 2008. If such options expire or terminate without having been exercised, any shares not purchased will again be available for future grants or awards. There were no options granted during the three years ended 2016. The Company expects to issue new shares to satisfy stock option exercises and the vesting of restricted stock units. Cash received from exercises of stock options totaled $7.7 million for 327,830 shares in 2016, $5.0 million for 214,580 shares in 2015, and $128,000 for 5,500 shares in 2014. Aggregate intrinsic value for options exercised was $4.0 million in 2016 compared to $2.0 million in 2015. A summary of stock option activity for 2016, 2015, and 2014 follows:
|  |  |  |  |  |  |  |  |  | Weighted-Average |  |  | Aggregate |
|  |  |  |  |  | Weighted-Average |  |  | Remaining Contractual |  |  | Intrinsic |
|  | Shares |  |  | Exercise Price |  |  | Life (in years) |  |  | Value (in thousands) |
Balance, December 31, 2013 |  |  | 2,812,874 |  |  |  | 31.81 |  |  |  | 1.9 |  |  | $ | 2,119 |
Exercised |  |  | (5,500 | ) |  | $ | 23.37 |  |  |  |  |  |  |  |  |
Forfeited |  |  | (474,470 | ) |  |  | 29.28 |  |  |  |  |  |  |  |  |
Balance, December 31, 2014 |  |  | 2,332,904 |  |  |  | 32.34 |  |  |  | 1.2 |  |  | $ | 1,388 |
Exercised |  |  | (214,580 | ) |  | $ | 23.37 |  |  |  |  |  |  |  |  |
Forfeited |  |  | (1,087,154 | ) |  |  | 35.13 |  |  |  |  |  |  |  |  |
Balance, December 31, 2015 |  |  | 1,031,170 |  |  |  | 31.27 |  |  |  | 0.9 |  |  | $ | 3,268 |
Exercised |  |  | (327,830 | ) |  | $ | 23.37 |  |  |  |  |  |  |  |  |
Forfeited |  |  | (620,670 | ) |  |  | 36.50 |  |  |  |  |  |  |  |  |
Balance, December 31, 2016 |  |  | 82,670 |  |  |  | 23.37 |  |  |  | 1.1 |  |  | $ | 1,211 |
Exercisable, December 31, 2016 |  |  | 82,670 |  |  | $ | 23.37 |  |  |  | 1.1 |  |  | $ | 1,211 |
At December 31, 2016, 3,524,517 shares were available under the 2005 Incentive Plan for future grants. In addition to stock options, the Company also grants restricted stock units to eligible employees which vest subject to continued employment at the vesting dates. The Company granted restricted stock units for 88,693 shares at an average closing price of $30.37 per share in 2016, 72,900 shares at an average closing price of $28.11 per share in 2015, and for 17,601 shares at an average closing price of $24.66 per share in 2014. The restricted stock units granted in 2014, 2013, and 2012 are scheduled to vest two years from grant date. The restricted stock units granted in 2015 and 2016 are scheduled to vest three years from grant date. In December 2013, the Company granted performance share unit awards in which the number of units earned is calculated based on the relative total shareholder return (“TSR”) of the Company’s common stock as compared to the TSR of the KBW Regional Banking Index. In addition, the Company granted performance share unit awards in which the number of units earned is determined by comparison to the targeted EPS as defined in the award for the 2014 to 2016 period. In December 2016, in addition to TSR and EPS awards, the Company granted performance share unit awards in which the number of units earned is determined by comparison to the targeted return of assets ROA as defined in the award for December 2016. Performance TSR restricted stock units for 119,840 shares and performance EPS restricted stock units for 116,186 shares were granted to eight executive officers in 2013. In December 2014, the Company granted additional performance TSR restricted stock units for 60,456 shares and performance EPS restricted stock units for 57,642 shares were granted to seven executive officers. In December 2015, the Company granted additional performance TSR restricted stock units for 61,209 shares and performance EPS restricted stock units for 57,409 shares were granted to seven executive officers. In December 2016, the Company granted additional performance TSR restricted stock units for 30,319 shares, performance EPS restricted stock units for 58,241 shares, and performance ROA restricted stock units for 29,119 shares were granted to seven executive officers. Performance TSR, performance EPS, and performance ROA shares awarded are scheduled to vest three years from grant date. The following table presents restricted stock unit activity for 2016, 2015, and 2014:
|  | Units |
Balance at December 31, 2013 |  |  | 379,458 |
Granted |  |  | 135,699 |
Vested |  |  | (122,832 | )
Cancelled or forfeited |  |  | (5,860 | )
Balance at December 31, 2014 |  |  | 386,465 |
Granted |  |  | 191,518 |
Vested |  |  | (26,924 | )
Cancelled or forfeited |  |  | (8,684 | )
Balance at December 31, 2015 |  |  | 542,375 |
Granted |  |  | 206,372 |
Vested |  |  | (13,780 | )
Cancelled or forfeited |  |  | (7,548 | )
Balance at December 31, 2016 |  |  | 727,419 |
All awards are deemed probable of issuance and the compensation expense recorded for restricted stock units was $4.4 million in 2016, $4.5 million in 2015 , and $3.8 million in 2014. Unrecognized stock-based compensation expense related to restricted stock units was $10.0 million at December 31, 2016, and is expected to be recognized over the next 2.4 years. The following table summarizes the tax benefit from options exercised:
|  | 2016 |  |  | 2015 |  |  | 2014 |
|  | (In thousands) |
Short-fall of tax deductions in excess of grant-date fair value |  | $ | - |  |  | $ | (5,348 | ) |  | $ | (1,285 | )
Benefit of tax deductions on grant-date fair value |  |  | - |  |  |  | 6,485 |  |  |  | 1,292 |
Total benefit of tax deductions |  | $ | - |  |  | $ | 1,137 |  |  | $ | 7 |

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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