Note 20 - Condensed Financial Information of Cathay General Bancorp

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

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, 2015, and December 31, 2014, and for the years ended December 31, 2015, 2014, and 2013 is as follows:

Balance Sheets

	As of December 31,
	2015			2014
	(In thousands, except
	share and per share data)
Assets
Cash	$	5,048		$	7,420
Cash pledged as margin for interest rate swaps		7,936			7,465
Short-term certificates of deposit		24,324			23,203
Securities available for sale		11,911			10,244
Investment in bank subsidiaries		1,807,825			1,666,238
Investment in non-bank subsidiaries		5,979			2,631
Other assets		9,551			9,541
Total assets	$	1,872,574		$	1,726,742
Liabilities
Junior subordinated debt	$	119,136		$	119,136
Other liabilities		5,660			4,718
Total liabilities		124,796			123,854
Commitments and contingencies		-			-
Stockholders' equity
Common stock, $0.01 par value, 100,000,000 shares authorized, 87,002,931 issued and 80,806,116 outstanding at December 31, 2015, and 84,022,118 issued and 79,814,553 outstanding at December 31, 2014		870			840
Additional paid-in-capital		880,822			789,519
Accumulated other comprehensive loss, net		(8,426	)		(5,569	)
Retained earnings		1,059,660			943,834
Treasury stock, at cost (6,196,815 shares at December 31, 2015, and 4,207,565 shares at December 31, 2014)		(185,148	)		(125,736	)
Total stockholders' equity		1,747,778			1,602,888
Total liabilities and stockholders' equity	$	1,872,574		$	1,726,742

Statements of Operations

	Year Ended December 31,
	2015			2014		2013
	(In thousands)
Cash dividends from Cathay Bank	$	163,301		$	30,000	$	138,030
Interest income		68			88		157
Interest expense		5,776			4,469		2,994
Non-interest (loss)/income		(1,858	)		10,144		434
Non-interest expense		4,644			2,248		2,443
Income before income tax benefit		151,091			33,515		133,184
Income tax (benefit)/expense		(5,134	)		1,478		(2,037	)
Income before undistributed earnings of subsidiaries		156,225			32,037		135,221
Distributions more than earnings of subsidiaries		-			-		(12,078	)
Undistributed earnings of subsidiary		4,884			105,793		-
Net income	$	161,109		$	137,830	$	123,143

Statements of Cash Flows

	Year Ended December 31,
	2015			2014			2013
	(In thousands)
Cash flows from Operating Activities
Net income	$	161,109		$	137,830		$	123,143
Adjustments to reconcile net income to net cash provided by operating activities:
Dividends in excess of earnings of subsidiaries		-			-			12,078
Equity in undistributed earnings of subsidiaries		(4,884	)		(105,793	)		-
Gains on sale of securities		-			(10,689	)		-
Income associated with debt redemption		-			(555	)		-
Write-downs on venture capital and other investments		468			432			357
Write-downs on impaired securities		-			264			-
Loss in fair value of warrants		-			3			56
Stock issued to directors as compensation		495			350			-
Excess tax short-fall from stock options		5,348			1,285			2,509
Net change in other assets		619			(3,445	)		(1,684	)
Net change in other liabilities		(5,438	)		(1,294	)		27
Net cash provided by operating activities		157,717			18,388			136,486
Cash flows from Investment Activities
(Increase)/decrease in short-term investment		(1,121	)		14,797			123,300
Proceeds from sale of available-for-sale securities		-			12,083			-
Purchase of available-for-sale securities		(410	)		(7,920	)		-
Venture capital and other investments		-			(590	)		(835	)
Acquisition, net of cash acquired		(57,006	)		-			-
Net cash (used in)/provided by investment activities		(58,537	)		18,370			122,465
Cash flows from Financing Activities
Redemption of Series B preferred stock		-			-			(258,000	)
Repayment of long-term debt		-			(1,445	)		-
Cash dividends		(45,283	)		(23,104	)		(12,606	)
Proceeds from shares issued under the Dividend Reinvestment Plan		4,175			2,848			605
Proceeds from exercise of stock options		5,014			128			14,755
Taxes paid related to net share settlement of RSUs		(227	)		(850	)		-
Excess tax short-fall from share-based payment arrangements		(5,348	)		(1,285	)		(2,509	)
Purchase of treasury stock		(59,412	)		-			-
Net cash used in financing activities		(101,081	)		(23,708	)		(257,755	)
(Decrease)/increase in cash and cash equivalents		(1,901	)		13,050			1,196
Cash and cash equivalents, beginning of the year		14,885			1,835			639
Cash and cash equivalents, end of the year	$	12,984		$	14,885		$	1,835