20. Condensed Financial Information of Cathay General Bancorp

The condensed financial information of the Bancorp as of December 31, 2011, and December 31, 2010, and for the years ended December 31, 2011, 2010, and 2009 is as follows:

Balance Sheets


	Year Ended December 31,
	2011			2010
	(In thousands, except share and per share data)
Assets
Cash	$	809		$	787
Short-term certificates of deposit		19,000			36,500
Investment in bank subsidiaries		1,593,831			1,498,572
Investment in non-bank subsidiaries		2,615			2,611
Other assets		14,189			12,426

Total assets	$	1,630,444		$	1,550,896

Liabilities
Junior subordinated debt	$	121,136		$	121,136
Other liabilities		2,122			2,102

Total liabilities		123,258			123,238

Commitments and contingencies		—			—

Stockholders' equity
Preferred stock, 10,000,000 shares authorized, 258,000 issued and outstanding at December 31, 2011, and December 31, 2010		250,992			247,455
Common stock, $0.01 par value, 100,000,000 shares authorized, 82,860,122 issued and 78,652,557 outstanding at December 31, 2011, and 82,739,348 issued and 78,531,783 outstanding at December 31, 2010		829			827
Additional paid-in-capital		765,641			762,509
Accumulated other comprehensive loss, net		(8,732	)		(1,022	)
Retained earnings		624,192			543,625
Treasury stock, at cost (4,207,565 shares at December 31, 2011, and at December 31, 2010)		(125,736	)		(125,736	)

Total stockholders' equity .		1,507,186			1,427,658

Total liabilities and stockholders' equity	$	1,630,444		$	1,550,896

Statements of Operations


	Year Ended December 31,
	2011			2010			2009
	(In thousands)
Interest income	$	259		$	227		$	299
Interest expense		3,038			3,075			3,817
Non-interest income/(loss)		286			(782	)		(1,929	)
Non-interest expense		1,548			1,308			3,581

(Loss)/income before income tax benefit		(4,041	)		(4,938	)		(9,028	)
Income tax benefit		(1,699	)		(2,076	)		(3,796	)

(Loss)/income before undistributed earnings of subsidiaries		(2,342	)		(2,862	)		(5,232	)
Undistributed earnings/(loss) of subsidiaries		102,492			14,427			(62,158	)

Net income/(loss)	$	100,150		$	11,565		$	(67,390	)

Statements of Cash Flows


	Year Ended December 31,
	2011			2010			2009
	(In thousands)
Cash flows from Operating Activities
Net income/(loss)	$	100,150		$	11,565		$	(67,390	)
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed (earnings)/loss of subsidiaries		(102,492	)		(14,427	)		62,158
Increase/(decrease) in accrued expense		24			3			(80	)
Write-downs on venture capital and other investments		321			521			2,246
Write-downs on impaired securities		200			492			—
(Gains)/Loss in fair value of warrants		(215	)		29			41
Excess tax short-fall from stock options		290			539			196
(Increase)/decrease in other assets		(121	)		1,040			(332	)
Decrease in other liabilities		(221	)		(607	)		(1,773	)

Net cash used in operating activities		(2,064	)		(845	)		(4,934	)

Cash flows from Investment Activities
Additional investment in subsidiary		—			(94,000	)		(103,874	)
Decrease/(increase) in short-term investment		17,500			(12,000	)		14,800
Increase in available-for-sale securities		—			(418	)		(2,846	)
Venture capital investments		(671	)		(1,056	)		(897	)

Net cash provided by/(used in) investment activities		16,829			(107,474	)		(92,817	)

Cash flows from Financing Activities
Issuance of Series B Preferred Stock		—			—			(25	)
Cash dividends		(16,046	)		(16,041	)		(22,460	)
Issuance of common stock		—			124,928			119,447
Proceeds from shares issued under the Dividend Reinvestment Plan		287			310			1,160
Proceeds from exercise of stock options		1,306			—			13
Excess tax short-fall from share-based payment arrangements		(290	)		(539	)		(196	)

Net cash (used in)/provided by financing activities		(14,743	)		108,658			97,939

Decrease in cash and cash equivalents		22			339			188
Cash and cash equivalents, beginning of year		787			448			260

Cash and cash equivalents, end of year	$	809		$	787		$	448