Note 20 - Condensed Financial Information of Cathay General Bancorp

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

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, 2019, and December 31, 2018, and for the years ended December 31, 2019, 2018, and 2017 is as follows:

Balance Sheets

	As of December 31,
	2019			2018
	(In thousands, except
	share and per share data)
Assets
Cash	$	32,468		$	19,861
Cash pledged as margin for interest rate swaps		7,098			1,766
Short-term certificates of deposit		330			328
Equity securities		19,258			17,564
Investment in Cathay Bank subsidiary		2,365,206			2,290,073
Investment in non-bank subsidiaries		4,458			4,652
Other assets		5,530			6,012
Total assets	$	2,434,348		$	2,340,256
Liabilities
Junior subordinated debt	$	119,136		$	119,136
Long-term Debt		—			70,313
Deferred payments from acquisition		7,644			18,458
Other liabilities		13,285			10,483
Total liabilities		140,065			218,390
Commitments and contingencies		—			—
Stockholders' equity
Common stock, $0.01 par value, 100,000,000 shares authorized, 90,064,382 issued and 79,729,419 outstanding at December 31, 2019, and 89,826,317 issued and 80,501,948 outstanding at December 31, 2018		900			898
Additional paid-in-capital		950,466			942,062
Accumulated other comprehensive loss, net		2,302			(18,006	)
Retained earnings		1,659,153			1,479,149
Treasury stock, at cost (10,334,963 shares at December 31, 2019, and 9,324,369 shares at December 31, 2018)		(318,538	)		(282,237	)
Total stockholders' equity		2,294,283			2,121,866
Total liabilities and stockholders' equity	$	2,434,348		$	2,340,256

Statements of Operations

	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Cash dividends from Cathay Bank and Far East National Bank	$	238,998		$	127,825		$	265,207
Interest income		90			57			221
Interest expense		8,415			9,813			7,637
Non-interest income/(loss)		4,634			(1,940	)		1,909
Gain from acquisition.		—			340			5,628
Non-interest expense		3,491			3,782			6,726
Income before income tax benefit		231,816			112,687			258,602
Income tax benefit		(2,459	)		(4,971	)		(5,687	)
Income before undistributed earnings of subsidiaries		234,275			117,658			264,289
Undistributed earnings of subsidiary		44,860			154,227			(88,247	)
Net income	$	279,135		$	271,885		$	176,042

Statements of Cash Flows

	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Cash flows from Operating Activities
Net income	$	279,135		$	271,885		$	176,042
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries		(44,860	)		(154,227	)		88,247
(Gain)/loss on equity securities		(4,414	)		2,242			—
Write-downs on venture capital and other investments		105			271			254
Loss/(gain) in fair value of warrants		145			(93	)		(12	)
Stock issued to directors as compensation		749			649			550
Net change in other assets		125			915			3,490
Gain from acquisition		—			(340	)		(5,628	)
Net change in other liabilities		(832	)		(1,375	)		5,949
Net cash provided by operating activities		230,153			119,927			268,892
Cash flows from Investment Activities
(Increase)/decrease in short-term investment		—			(1	)		(2	)
Proceeds from sale of equity securities		2,829			—			12,580
Purchase of available-for-sale securities		—			—			(2,759	)
Venture capital and other investments		399			150			671
Acquisitions, net of cash acquired		—			—			(275,328	)
Net cash provided by/(used in) investment activities		3,228			149			(264,838	)
Cash flows from Financing Activities
Repayment of long-term debt		(81,065	)		(21,633	)		—
Proceeds of issuance of long-term debt		—			—			75,000
Cash dividends		(99,131	)		(83,428	)		(69,888	)
Proceeds from shares issued under the Dividend Reinvestment Plan		3,366			2,821			2,528
Proceeds from exercise of stock options		—			838			1,094
Taxes paid related to net share settlement of RSUs		(2,311	)		(3,550	)		(5,128	)
Purchase of treasury stock		(36,301	)		(42,648	)		—
Net cash (used in)/provided by financing activities		(215,442	)		(147,600	)		3,606
(Decrease)/Increase in cash and cash equivalents		17,939			(27,524	)		7,660
Cash and cash equivalents, beginning of the year		21,627			49,151			41,491
Cash and cash equivalents, end of the year	$	39,566		$	21,627		$	49,151