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Note 20 - Condensed Financial Information of Cathay General Bancorp | 12 Months Ended
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Dec. 31, 2018
Notes to Financial Statements |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] |
20. | Condensed Financial Information of Cathay General Bancorp
The condensed financial information of the Bancorp as of December 31, 2018, and December 31, 2017, and for the years ended December 31, 2018, 2017, and 2016 is as follows: Balance Sheets
|  | As of December 31, |
|  | 2018 |  |  | 2017 |
|  | (In thousands, except |
|  | share and per share data) |
Assets |  |  |  |  |  |  |  |
Cash |  | $ | 19,861 |  |  | $ | 44,645 |
Cash pledged as margin for interest rate swaps |  |  | 1,766 |  |  |  | 4,506 |
Short-term certificates of deposit |  |  | 328 |  |  |  | 327 |
Securities available for sale |  |  | 17,564 |  |  |  | 19,806 |
Investment in Cathay Bank subsidiary |  |  | 2,290,073 |  |  |  | 2,134,445 |
Investment in non-bank subsidiaries |  |  | 4,652 |  |  |  | 4,799 |
Other assets |  |  | 6,012 |  |  |  | 6,831 |
Total assets |  | $ | 2,340,256 |  |  | $ | 2,215,359 |
Liabilities |  |  |  |  |  |  |  |
Junior subordinated debt |  | $ | 119,136 |  |  | $ | 119,136 |
Long-term Debt |  |  | 70,313 |  |  |  | 75,000 |
Deferred payments from acquisition |  |  | 18,458 |  |  |  | 35,404 |
Other liabilities |  |  | 10,483 |  |  |  | 12,515 |
Total liabilities |  |  | 218,390 |  |  |  | 242,055 |
Commitments and contingencies |  |  | - |  |  |  | - |
Stockholders' equity |  |  |  |  |  |  |  |
Common stock, $0.01 par value, 100,000,000 shares authorized, 89,826,317 issued and 80,501,948 outstanding at December 31, 2018, and 89,104,022 issued and 80,893,379 outstanding at December 31, 2017 |  |  | 898 |  |  |  | 891 |
Additional paid-in-capital |  |  | 942,062 |  |  |  | 932,874 |
Accumulated other comprehensive loss, net |  |  | (18,006 | ) |  |  | (2,511 | )
Retained earnings |  |  | 1,479,149 |  |  |  | 1,281,639 |
Treasury stock, at cost (9,324,369 shares at December 31, 2018, and 8,210,643 shares at December 31, 2017) |  |  | (282,237 | ) |  |  | (239,589 | )
Total stockholders' equity |  |  | 2,121,866 |  |  |  | 1,973,304 |
Total liabilities and stockholders' equity |  | $ | 2,340,256 |  |  | $ | 2,215,359 |
Statements of Operations
|  | Year Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  | (In thousands) |
Cash dividends from Cathay Bank and Far East National Bank |  | $ | 127,825 |  |  | $ | 265,207 |  |  | $ | 113,448 |
Cash dividends from GBC Venture Capital |  |  | - |  |  |  | - |  |  |  | 950 |
Interest income |  |  | 57 |  |  |  | 221 |  |  |  | 48 |
Interest expense |  |  | 9,813 |  |  |  | 7,637 |  |  |  | 5,791 |
Non-interest (loss)/income |  |  | (1,940 | ) |  |  | 1,909 |  |  |  | (488 | )
Gain from acquisition |  |  | 340 |  |  |  | 5,628 |  |  |  | - |
Non-interest expense |  |  | 3,782 |  |  |  | 6,726 |  |  |  | 3,756 |
Income before income tax benefit |  |  | 112,687 |  |  |  | 258,602 |  |  |  | 104,411 |
Income tax benefit |  |  | (4,971 | ) |  |  | (5,687 | ) |  |  | (4,199 | )
Income before undistributed earnings of subsidiaries |  |  | 117,658 |  |  |  | 264,289 |  |  |  | 108,610 |
Undistributed earnings of subsidiary |  |  | 154,227 |  |  |  | (88,247 | ) |  |  | 66,489 |
Net income |  | $ | 271,885 |  |  | $ | 176,042 |  |  | $ | 175,099 |
Statements of Cash Flows
|  | Year Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  | (In thousands) |
Cash flows from Operating Activities |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 271,885 |  |  | $ | 176,042 |  |  | $ | 175,099 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |  |
Equity in undistributed earnings of subsidiaries |  |  | (154,227 | ) |  |  | 88,247 |  |  |  | (67,770 | )
Dividends in excess of earnings of non-bank subsidiaries |  |  | - |  |  |  | - |  |  |  | 1,281 |
Unrealized loss on equity securities |  |  | 2,242 |  |  |  | - |  |  |  | - |
Write-downs on venture capital and other investments |  |  | 271 |  |  |  | 254 |  |  |  | 503 |
Write-downs on impaired securities |  |  | - |  |  |  | - |  |  |  | 206 |
Loss in fair value of warrants |  |  | (93 | ) |  |  | (12 | ) |  |  | (17 | )
Stock issued to directors as compensation |  |  | 649 |  |  |  | 550 |  |  |  | 550 |
Net change in other assets |  |  | 915 |  |  |  | 3,490 |  |  |  | (1,136 | )
Gain from acquisition |  |  | (340 | ) |  |  | (5,628 | ) |  |  | - |
Net change in other liabilities |  |  | (1,375 | ) |  |  | 5,949 |  |  |  | (756 | )
Net cash provided by operating activities |  |  | 119,927 |  |  |  | 268,892 |  |  |  | 107,960 |
Cash flows from Investment Activities |  |  |  |  |  |  |  |  |  |  |  |
(Increase)/decrease in short-term investment |  |  | (1 | ) |  |  | (2 | ) |  |  | 23,999 |
Proceeds from sale of available-for-sale securities |  |  | - |  |  |  | 12,580 |  |  |  | 294 |
Purchase of available-for-sale securities |  |  | - |  |  |  | (2,759 | ) |  |  | - |
Venture capital and other investments |  |  | 150 |  |  |  | 671 |  |  |  | 134 |
Acquisitions, net of cash acquired |  |  | - |  |  |  | (275,328 | ) |  |  | - |
Net cash provided by/(used in) investment activities |  |  | 149 |  |  |  | (264,838 | ) |  |  | 24,427 |
Cash flows from Financing Activities |  |  |  |  |  |  |  |  |  |  |  |
Repayment of long-term debt |  |  | (21,633 | ) |  |  | - |  |  |  | - |
Proceeds of issuance of long-term debt |  |  | - |  |  |  | 75,000 |  |  |  | - |
Cash dividends |  |  | (83,428 | ) |  |  | (69,888 | ) |  |  | (59,274 | )
Proceeds from shares issued under the Dividend Reinvestment Plan |  |  | 2,821 |  |  |  | 2,528 |  |  |  | 2,277 |
Proceeds from exercise of stock options |  |  | 838 |  |  |  | 1,094 |  |  |  | 7,661 |
Taxes paid related to net share settlement of RSUs |  |  | (3,550 | ) |  |  | (5,128 | ) |  |  | (103 | )
Purchase of treasury stock |  |  | (42,648 | ) |  |  | - |  |  |  | (54,441 | )
Net cash (used in)/provided by financing activities |  |  | (147,600 | ) |  |  | 3,606 |  |  |  | (103,880 | )
(Decrease)/Increase in cash and cash equivalents |  |  | (27,524 | ) |  |  | 7,660 |  |  |  | 28,507 |
Cash and cash equivalents, beginning of the year |  |  | 49,151 |  |  |  | 41,491 |  |  |  | 12,984 |
Cash and cash equivalents, end of the year |  | $ | 21,627 |  |  | $ | 49,151 |  |  | $ | 41,491 |

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=108774443&loc=d3e5283-111683 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 235 -Section S99 -Paragraph 2 -Subparagraph (SX 210.9-06) -URI http://asc.fasb.org/extlink&oid=6882215&loc=d3e537971-122884 + Details
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