Note 21 - Condensed Financial Information of Cathay General Bancorp

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

21.         Condensed Financial Information of Cathay General Bancorp

The condensed financial information of the Bancorp as of December 31, 2023, and December 31, 2022, and for the years ended December 31, 2023, 2022 and 2021 is as follows:

Balance Sheets

	As of December 31,
	2023			2022
	(In thousands, except
	share and per share data)
Assets
Cash	$	24,262		$	14,902
Short-term certificates of deposit		335			334
Equity securities		34,441			16,360
Investment in Cathay Bank subsidiary		2,806,467			2,566,266
Investment in non-bank subsidiary		68			764
Other assets		3,896			4,385
Total assets	$	2,869,469		$	2,603,011
Liabilities
Junior subordinated debt	$	119,136		$	119,136
Other liabilities		13,758			9,835
Total liabilities		132,894			128,971
Commitments and contingencies		—			—
Stockholders' equity
Common stock, $0.01 par value, 100,000,000 shares authorized, 91,392,480 issued and 72,668,927 outstanding at December 31, 2023, and 91,090,614 issued and 72,742,151 outstanding at December 31, 2022		914			911
Additional paid-in-capital		987,953			981,119
Accumulated other comprehensive loss, net		(85,416	)		(102,295	)
Retained earnings		2,500,341			2,244,855
Treasury stock, at cost (18,723,553 shares at December 31, 2023, and 18,348,463 shares at December 31, 2022)		(667,217	)		(650,550	)
Total equity		2,736,575			2,474,040
Total liabilities and equity	$	2,869,469		$	2,603,011

Statements of Operations

	Year Ended December 31,
	2023		2022			2021
	(In thousands)
Cash dividends from Cathay Bank	$	134,000	$	232,773		$	230,000
Interest income		44		30			36
Interest expense		6,480		5,560			5,773
Non-interest Income		17,757		1,018			3,117
Non-interest expense		4,065		3,937			3,224
Income before income tax expense		141,256		224,324			224,156
Income tax expense/(benefit)		1,707		(2,885	)		(1,810	)
Income before undistributed earnings of subsidiaries		139,549		227,209			225,966
Undistributed earnings of subsidiary		214,575		133,433			72,338
Net income	$	354,124	$	360,642		$	298,304

Statements of Cash Flows

	Year Ended December 31,
	2023			2022			2021
	(In thousands)
Cash flows from Operating Activities
Net income	$	354,124		$	360,642		$	298,304
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries		(214,575	)		(133,433	)		(72,338	)
Gain on equity securities		(17,977	)		(733	)		(122	)
Write-downs on venture capital and other investments		179			268			73
Loss/(gain) in fair value of warrants		50			(27	)		—
Stock issued to directors as compensation		850			849			850
Net change in accrued interest receivable and other assets		5,216			(434	)		1,918
Net change in other liabilities		(2,371	)		8,531			4,934
Net cash provided by operating activities		125,496			235,663			233,619
Cash flows from Investment Activities
Venture capital and other investments		168			(5	)		357
Net cash (used)/provided by investment activities		168			(5	)		357
Cash flows from Financing Activities
Cash dividends paid		(98,638	)		(100,955	)		(99,322	)
Proceeds from shares issued under the Dividend Reinvestment Plan		3,491			3,720			3,563
Taxes paid related to net share settlement of RSUs		(4,490	)		(2,905	)		(2,632	)
Purchase of treasury stock		(16,667	)		(141,316	)		(167,104	)
Net cash used in financing activities		(116,304	)		(241,456	)		(265,495	)
Increase/(decrease) in cash, cash equivalents and restricted cash		9,360			(5,798	)		(31,519	)
Cash, cash equivalents, and restricted cash, beginning of the year		14,902			20,700			52,219
Cash, cash equivalents, and restricted cash, end of the period	$	24,262		$	14,902		$	20,700