Note 20 - Condensed Financial Information of Cathay General Bancorp

12 Months Ended

Dec. 31, 2012

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, 2012, and December 31, 2011, and for the years ended December 31, 2012, 2011, and 2010 is as follows:

Balance Sheets

	Year Ended December 31,
	2012			2011
	(In thousands, except share and per share data)
Assets
Cash	$	639		$	809
Short-term certificates of deposit		161,300			19,000
Investment in bank subsidiaries		1,569,902			1,593,831
Investment in non-bank subsidiaries		2,598			2,615
Other assets		9,936			14,189
Total assets	$	1,744,375		$	1,630,444
Liabilities
Junior subordinated debt	$	121,136		$	121,136
Other liabilities		2,182			2,122
Total liabilities		123,318			123,258
Commitments and contingencies		-			-
Stockholders' equity
Preferred stock, 10,000,000 shares authorized, 258,000 issued and outstanding at December 31, 2012, and December 31, 2011		254,580			250,992
Common stock, $0.01 par value, 100,000,000 shares authorized, 82,985,853 issued and 78,778,288 outstanding    at December 31, 2012, and 82,860,122 issued and 78,652,557 outstanding at December 31, 2011		830			829
Additional paid-in-capital		768,925			765,641
Accumulated other comprehensive loss, net		465			(8,732	)
Retained earnings		721,993			624,192
Treasury stock, at cost (4,207,565 shares at December 31, 2012, and at December 31, 2011)		(125,736	)		(125,736	)
Total stockholders' equity		1,621,057			1,507,186
Total liabilities and stockholders' equity	$	1,744,375		$	1,630,444

Statements of Operations

	Year Ended December 31,
	2012			2011			2010
	(In thousands)
Cash dividends from Cathay Bank	$	154,700		$	-		$	-
Interest income		196			259			227
Interest expense		3,228			3,038			3,075
Non-interest income/(loss)		3,718			286			(782	)
Non-interest expense		2,064			1,548			1,308
Income/(loss) before income tax benefit		153,322			(4,041	)		(4,938	)
Income tax benefit		(579	)		(1,699	)		(2,076	)
Loss before undistributed earnings of subsidiaries		153,901			(2,342	)		(2,862	)
Undistributed (loss)/earnings of subsidiaries		(36,463	)		102,492			14,427
Net income	$	117,438		$	100,150		$	11,565

Statements of Cash Flows

	Year Ended December 31,
	2012			2011			2010
	(In thousands)
Cash flows from Operating Activities
Net income/(loss)	$	117,438		$	100,150		$	11,565
Adjustments to reconcile net income to net cash provided by operating activities:
Dividends in excess of earnings of subsidiaries		36,463			-			-
Equity in undistributed earnings of subsidiaries		-			(102,492	)		(14,427	)
Gains on sale of securities		(3,380	)		-			-
Increase in accrued expense		12			24			3
Write-downs on venture capital and other investments		262			321			521
Write-downs on impaired securities		181			200			492
Loss/(gains) in fair value of warrants		114			(215	)		29
Excess tax short-fall from stock options		620			290			539
(Decrease)/increase in other assets		1,820			(121	)		1,040
Increase/(decrease) in other liabilities		59			(221	)		(607	)
Net cash used in operating activities		153,589			(2,064	)		(845	)
Cash flows from Investment Activities
Additional investment in subsidiary		-			-			(94,000	)
Decrease/(increase) in short-term investment		(142,300	)		17,500			(12,000	)
Proceeds from sale/(purchase) of available-for-sale securities		4,849			-			(418	)
Venture capital investments		(694	)		(671	)		(1,056	)
Net cash provided by/(used in) investment activities		(138,145	)		16,829			(107,474	)
Cash flows from Financing Activities
Cash dividends		(16,049	)		(16,046	)		(16,041	)
Issuance of common stock		-			-			124,928
Proceeds from shares issued under the Dividend Reinvestment Plan		291			287			310
Proceeds from exercise of stock options		764			1,306			-
Excess tax short-fall from share-based payment arrangements		(620	)		(290	)		(539	)
Net cash (used in)/provided by financing activities		(15,614	)		(14,743	)		108,658
Increase in cash and cash equivalents		(170	)		22			339
Cash and cash equivalents, beginning of year		809			787			448
Cash and cash equivalents, end of year	$	639		$	809		$	787