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Note 2 - Business Combinations | 9 Months Ended
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Sep. 30, 2017
Notes to Financial Statements |
Business Combination Disclosure [Text Block] | 2 . Business Combinations On July 14, 2017, the Company completed the acquisition of SinoPac Bancorp, the parent of Far East National Bank (FENB), pursuant to a Stock Purchase Agreement, dated as of July 8, 2016, by and between the Company and Bank SinoPac Co. Ltd. Under the terms of the Stock Purchase Agreement, the Company purchased all of the issued and outstanding share capital of SinoPac Bancorp for an aggregate purchase price of $351.6 million plus additional post closing payments based on the realization of certain assets of FENB. The Company issued 926,192 shares of common stock as consideration and the remainder of the consideration is payable in cash. Pursuant to the Stock Purchase Agreement, (i) $100 million of the purchase price was deferred and will be released within one year based on the timing of the contemplated merger of FENB into Cathay Bank and (ii) 10% of the purchase price was held back and will be released over a period of three years following the closing of the acquisition, subject to any indemnity claims. Founded in 1974, FENB offers a wide range of financial services. The acquisition allowed the Company to expand its number of branches in California. As of July 14, 2017, FENB operated nine branches in California, and a representative office in Beijing. The acquisition will be accounted for as a business combination, subject to the provisions of ASC 805 - 10 - 50, Business Combinations. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the J uly 14, 2017 acquisition date. The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting. We have included the financial results of the business combinations in the condensed consolidated statement of income beginning on the acquisition date. The purchase accounting adjustments are preliminary and subject to finalization during the one -year measurement period from the date of the acquisition. The fair value of the assets and the liabilities acquired as of July 1 4, 2017 are shown below:
|  | SinoPac Bancorp |
Assets acquired: |  |  |  |
Cash and cash equivalents |  | $ | 166,932 |
Short-term investments |  |  | 122,000 |
Securities available-for-sale |  |  | 107,934 |
Loans |  |  | 703,787 |
Premises and equipment |  |  | 6,198 |
Cash surrender value of life insurance |  |  | 46,083 |
Deferred tax assets, net |  |  | 40,136 |
Core deposit intangible |  |  | 7,144 |
Accrued interest receivable and other assets |  |  | 9,134 |
Total assets acquired |  |  | 1,209,348 |
Liabilities assumed: |  |  |  |
Deposits |  |  | 813,888 |
Long-term debt |  |  | 30,000 |
Accrued interest payable and other liabilities |  |  | 5,608 |
Total liabilities assumed |  |  | 849,496 |
Net assets acquired |  | $ | 359,852 |
Cash paid |  | $ | 181,241 |
Fair value of common stock issued |  |  | 34,862 |
Total consideration paid |  | $ | 216,103 |
Purchase price payable to SinoPac |  |  | 138,309 |
Total consideration |  | $ | 354,412 |
Gains on bargain purchase |  | $ | 5,440 |

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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