Note 10 - Borrowed Funds

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

10

.

Borrowed Funds

Securities Sold Under Agreements to Repurchase.

Securities sold under agreements to repurchase were

$100

million with a weighted average rate of

2.86%

as of

March 31, 2018,

compared to

$100

million with a weighted average rate of

2.86%

as of

December 31, 2017.

Final maturity for the

two

fixed rate non-callable securities sold under agreements to repurchase was

$50.0

million in

June 2018

and

$50.0

million in

July 2018.

These transactions are accounted for as collateralized financing transactions and recorded at the amounts at which the securities were sold. The Company

may

have to provide additional collateral for the repurchase agreements, as necessary. The underlying collateral pledged for the repurchase agreements consists of U.S. Treasury securities and mortgage-backed securities with a fair value of

$107.6

million as of

March 31, 2018,

and

$108.4

million as of

December 31, 2017.

Borrowing from the Federal Home Loan Bank ("FHLB").

As of

March 31, 2018,

over-night borrowings from the FHLB were

$250

million at a rate of

1.87%

compared to

$325

million at a rate of

1.41%

as of

December 31, 2017.

As of

March 31, 2018,

the advances from the FHLB were

$75

million at a rate of

1.53%

compared to

$105

million at a rate of

1.41%

as of

December 31, 2017.

As of

March 31, 2018,

FHLB advances of

$15

million will mature in

April 2018,

$5

million in

July 2018,

$5

million in

October 2018,

and

$50

million in

December 2019.

Other Borrowing.

Pursuant to the Stock Purchase Agreement with Bank SinoPac Co. Ltd, the Company paid

$100

million of the purchase price on

November 14, 2017,

30

days after receipt of regulatory approval for the merger of FENB into Cathay Bank. The residual payable balance of

$35.2

million has a floating rate of

three

-month LIBOR rate plus

150

basis points. Outstanding payable balance is accruing interest at a rate of

2.8%

of which

50%,

30%,

and

20%

will be disbursed annually over

three

years on the anniversary dates, respectively. As of

March 31, 2018,

outstanding payable balance was

$35.7

million compared to

$35.2

million at

December 31, 2017.

Long-term Debt

.

On

October 12, 2017,

the Bank entered into a term loan agreement of

$75.0

million with U.S. Bank. The loan has a floating rate of

one

-month LIBOR plus

175

basis points. As of

March 31, 2018,

the term loan has an interest rate of

3.438%

compared to

3.125%

at

December 31, 2017.

The principal amount of the long-term debt from U.S. Bank is due and payable in consecutive quarterly installments in the amount of

$4.7

million each on the last day of each calendar quarter commencing

December 31, 2018,

with the final installment due and payable on

October 12, 2020.

The U.S. Bank loan proceeds were used to fund a portion of our acquisition of SinoPac Bancorp.