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Note 22 - Regulatory Matters | 12 Months Ended
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Dec. 31, 2019
Notes to Financial Statements |
Regulatory Capital Requirements under Banking Regulations [Text Block] |
22. | Regulatory Matters
The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Federal Deposit Insurance Corporation has established five capital ratio categories: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized,” and “critically undercapitalized.” A well-capitalized institution must have a common equity tier 1 capital ratio equal to or greater than 6.5%, a Tier 1 risk-based capital ratio equal to or greater than 8%, a total risk-based capital ratio equal to or greater than 10%, and a Tier 1 leverage capital ratio equal to or greater than 5%. At December 31, 2019 and 2018, the Bank qualified as well capitalized under the regulatory framework for prompt corrective action. The Bancorp’s and the Bank’s capital and leverage ratios as of December 31, 2019, and December 31, 2018, are presented in the tables below:
|  | Actual |  |  | Minimum Capital Required - Basel III |  |  | Required to be Considered Well Capitalized |
|  | Capital Amount |  |  | Ratio |  |  | Capital Amount |  |  | Ratio |  |  | Capital Amount |  |  | Ratio |
December 31, 2019 |  | (Dollars in thousands) |
Common Equity Tier 1 to Risk-Weighted Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cathay General Bancorp |  | $ | 1,892,321 |  |  |  | 12.51 |  |  | $ | 1,059,259 |  |  |  | 7.00 |  |  | $ | 983,597 |  |  |  | 6.50 |
Cathay Bank |  |  | 1,959,832 |  |  |  | 12.97 |  |  |  | 1,057,880 |  |  |  | 7.00 |  |  |  | 982,318 |  |  |  | 6.50 |
Tier 1 Capital to Risk-Weighted Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cathay General Bancorp |  |  | 1,892,321 |  |  |  | 12.51 |  |  |  | 1,286,243 |  |  |  | 8.50 |  |  |  | 1,210,581 |  |  |  | 8.00 |
Cathay Bank |  |  | 1,959,832 |  |  |  | 12.97 |  |  |  | 1,284,569 |  |  |  | 8.50 |  |  |  | 1,209,006 |  |  |  | 8.00 |
Total Capital to Risk-Weighted Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cathay General Bancorp |  |  | 2,134,900 |  |  |  | 14.11 |  |  |  | 1,588,888 |  |  |  | 10.50 |  |  |  | 1,513,227 |  |  |  | 10.00 |
Cathay Bank |  |  | 2,086,911 |  |  |  | 13.81 |  |  |  | 1,586,821 |  |  |  | 10.50 |  |  |  | 1,511,258 |  |  |  | 10.00 |
Leverage Ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cathay General Bancorp |  |  | 1,892,321 |  |  |  | 10.83 |  |  |  | 699,173 |  |  |  | 4.00 |  |  |  | 873,966 |  |  |  | 5.00 |
Cathay Bank |  |  | 1,959,832 |  |  |  | 11.23 |  |  |  | 697,976 |  |  |  | 4.00 |  |  |  | 872,470 |  |  |  | 5.00 |
|  | Actual |  |  | Minimum Capital Required - Basel III |  |  | Required to be Considered Well Capitalized |
|  | Capital Amount |  |  | Ratio |  |  | Capital Amount |  |  | Ratio |  |  | Capital Amount |  |  | Ratio |
December 31, 2018 |  | (Dollars in thousands) |
Common Equity Tier 1 to Risk-Weighted Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cathay General Bancorp |  | $ | 1,736,854 |  |  |  | 12.43 |  |  | $ | 890,524 |  |  |  | 6.375 |  |  | $ | 907,985 |  |  |  | 6.50 |
Cathay Bank |  |  | 1,904,820 |  |  |  | 13.66 |  |  |  | 889,287 |  |  |  | 6.375 |  |  |  | 906,724 |  |  |  | 6.50 |
Tier 1 Capital to Risk-Weighted Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cathay General Bancorp |  |  | 1,736,854 |  |  |  | 12.43 |  |  |  | 1,100,059 |  |  |  | 7.875 |  |  |  | 1,117,520 |  |  |  | 8.00 |
Cathay Bank |  |  | 1,904,820 |  |  |  | 13.66 |  |  |  | 1,098,531 |  |  |  | 7.875 |  |  |  | 1,115,968 |  |  |  | 8.00 |
Total Capital to Risk-Weighted Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cathay General Bancorp |  |  | 1,976,995 |  |  |  | 14.15 |  |  |  | 1,379,439 |  |  |  | 9.875 |  |  |  | 1,396,900 |  |  |  | 10.00 |
Cathay Bank |  |  | 2,029,462 |  |  |  | 14.55 |  |  |  | 1,377,523 |  |  |  | 9.875 |  |  |  | 1,394,961 |  |  |  | 10.00 |
Leverage Ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cathay General Bancorp |  |  | 1,736,854 |  |  |  | 10.83 |  |  |  | 641,755 |  |  |  | 4.00 |  |  |  | 802,146 |  |  |  | 5.00 |
Cathay Bank |  |  | 1,904,820 |  |  |  | 11.89 |  |  |  | 640,807 |  |  |  | 4.00 |  |  |  | 800,983 |  |  |  | 5.00 |

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