LOS ANGELES, April 23 /PRNewswire-FirstCall/ -- Cathay General
Bancorp (the "Company", Nasdaq: CATY), the holding company for
Cathay Bank (the "Bank"), today announced results for the first
quarter of 2009. FINANCIAL PERFORMANCE Three months ended March 31,
2009 2008 Net income $10.2 million $27.3 million Net income
available to common $6.0 million $27.3 million stockholders Basic
earnings per share $0.12 $0.55 Diluted earnings per share $0.12
$0.55 Return on average assets 0.37% 1.07% Return on average total
stockholders' equity 3.21% 10.99% Efficiency ratio 38.41% 39.11%
FIRST QUARTER HIGHLIGHTS -- First quarter net income was $10.2
million compared to a net loss of $2.9 million for the fourth
quarter of 2008, and compared to net income of $27.3 million in the
same quarter a year ago. First quarter net income available to
common stockholders of $6.0 million, which was after the deduction
of $4.2 million for dividends on preferred stock, compared to net
loss available to common stockholders of $4.0 million for the
fourth quarter of 2008. -- Diluted earnings per share was $0.12 for
the first quarter, compared to diluted loss per share of $0.08 in
the fourth quarter of 2008, and compared to diluted earnings per
share of $0.55 in the same quarter a year ago. -- Total capital
ratio was 14.34% for the quarter ended March 31, 2009, compared to
13.94% at December 31, 2008, and compared to 10.88% for the same
quarter end a year ago. -- Total allowance for credit losses at
March 31, 2009 strengthened to 1.87% of total loans with a
provision for credit losses of $47.0 million compared to $62.9
million in the fourth quarter of 2008, and compared to $7.5 million
the same quarter a year ago. "Our first quarter results were
significantly impacted by the deepening recession and the ongoing
slowdown in residential housing, resulting in high credit costs and
continued increases in problem assets. We recorded a provision for
credit losses during the first quarter of $47.0 million which
increased our allowance for credit losses to 1.87% of total loans,"
commented Dunson Cheng, Chairman of the Board, Chief Executive
Officer, and President of the Company. "During this quarter, our
deposits grew by $429 million, or 25% annualized, which allowed us
to achieve a net loan to deposit ratio of 99.8% at March 31, 2009.
We expect continued strong deposit growth during the second
quarter, especially from our Hong Kong branch," said Peter Wu,
Executive Vice Chairman and Chief Operating Officer. "Our focus in
the year ahead will be on managing through this challenging credit
cycle, resolving problem assets and maintaining strong liquidity.
We continue to meet the lending and banking needs of our customers
while making investments to enable Cathay Bank to continue to grow
when the economy recovers," concluded Dunson Cheng. INCOME
STATEMENT REVIEW Net interest income before provision for credit
losses Net interest income before provision for credit losses
decreased to $70.4 million during the first quarter of 2009, a
decline of $4.8 million, or 6.3%, compared to the $75.2 million
during the same quarter a year ago. The decrease was due primarily
to the larger decline in earning asset yields compared to rates
paid for deposits and borrowings. The net interest margin, on a
fully taxable-equivalent basis, was 2.69% for the first quarter of
2009. The net interest margin decreased 16 basis points from 2.85%
in the fourth quarter of 2008 and decreased 47 basis points from
3.16% in the first quarter of 2008. The decrease in net interest
income from the prior year primarily resulted from the increase in
the borrowing rate on our long term repurchase agreements and
smaller decreases in rates paid on core deposits and other borrowed
funds compared to the decreases in the prime rate. The majority of
our variable rate loans contain interest rate floors, which help
limit the impact of the recent decreases of the prime interest
rate. For the first quarter of 2009, the yield on average
interest-earning assets was 5.26% on a fully taxable-equivalent
basis, and the cost of funds on average interest-bearing
liabilities equaled 2.98%. In comparison, for the first quarter of
2008, the yield on average interest-earning assets was 6.46% and
cost of funds on average interest-bearing liabilities equaled
3.80%. The interest spread, defined as the difference between the
yield on average interest-earning assets and the cost of funds on
average interest-bearing liabilities, decreased 38 basis points to
2.28% for the first quarter ended March 31, 2009, from 2.66% for
the same quarter a year ago, primarily due to the reasons discussed
above. Provision for credit losses The provision for credit losses
was $47.0 million for the first quarter of 2009 compared to $7.5
million for the first quarter of 2008 and compared to $62.9 million
in the fourth quarter of 2008. The provision for credit losses was
based on the review of the adequacy of the allowance for loan
losses at March 31, 2009. The provision for credit losses
represents the charge or credit against current earnings that is
determined by management, through a credit review process, as the
amount needed to establish an allowance that management believes to
be sufficient to absorb credit losses inherent in the Company's
loan portfolio. The following table summarizes the charge-offs and
recoveries for the quarters as indicated: For the three months
ended March 31, (In thousands) 2009 2008 Charge-offs: Commercial
loans $11,078 $251 Construction loans 23,400 4,130 Real estate
loans 1,361 175 Real estate- land loans 2,377 339 Total charge-offs
38,216 4,895 Recoveries: Commercial loans 198 187 Installment and
other loans - 4 Total recoveries 198 191 Net Charge-offs $38,018
$4,704 Total charge-offs for the first quarter of 2009 included
$14.4 million of charge-offs on ten residential construction loan
borrowers in California, $5.0 million charge-off on two office
building construction loans in California, a $1.3 million
charge-off on a residential construction loan in Nevada, a $1.3
million charge-off on a residential construction loan in Texas, and
$11.1 million of charge-offs on twenty six commercial loan
borrowers. Net loan charge-offs increased from $30.5 million in the
fourth quarter of 2008 to $38.0 million in the first quarter of
2009 and compared to $4.7 million in the first quarter of last year
as a result of the continuing weak economy and the decline in
residential housing values. Non-interest income Non-interest
income, which includes revenues from depository service fees,
letters of credit commissions, securities gains (losses), gains
(losses) on loan sales, wire transfer fees, and other sources of
fee income, was $27.7 million for the first quarter of 2009, an
increase of $21.2 million compared to the non-interest income of
$6.5 million for the first quarter of 2008. The increase in
non-interest income was primarily due to increases in net gains on
sale of available-for-sale securities of $22.5 million. Offsetting
the increase were a $947,000 decrease in venture capital income,
included in other operating income, primarily due to write-downs on
venture capital investments. Non-interest expense Non-interest
expense increased $5.7 million, or 17.9%, to $37.7 million in the
first quarter of 2009 compared to $32.0 million in the same quarter
a year ago. The efficiency ratio was 38.41% in the first quarter of
2009 compared to 39.11% for the same period a year ago. Other real
estate owned ("OREO") expense increased $2.1 million primarily due
to a $1.6 million provision for OREO write-down and a $518,000
increase in OREO operating expense in the first quarter of 2009
compared to the same quarter a year ago. Federal Deposit Insurance
Corporation ("FDIC") and State assessments increased to $2.9
million in the first quarter of 2009 from $291,000 in the same
quarter a year ago. Expense from operations of affordable housing
investments increased $873,000 to $1.7 million compared to $0.8
million in the same quarter a year ago as a result of additional
investments in affordable housing projects and a higher cash
distribution in the same quarter a year ago. Occupancy expense
increased $838,000 primarily due to increases in depreciation
expense of $737,000 and relocation expenses of $153,000 related to
our new administrative office at 9650 Flair Drive, El Monte which
opened in January 2009. Professional service expense increased
$582,000, or 24.4%, due to increases in legal expenses, collection
expenses, and information technology consulting expenses.
Offsetting the above described increases were decreases of $973,000
in salaries and employee benefits and decreases of $348,000 in
computer and equipment expense. Salaries and employee benefits
decreased primarily due to a $1.2 million decrease in bonus
accruals and a $249,000 decrease in option compensation expense
offset by a $476,000 decrease in deferred loan cost. Computer and
equipment expense declined due primarily to a decrease of $366,000
in software license fees as a result of the Company's new data
processing contract. The Company expects to complete its interim
goodwill impairment review prior to the filing of its Quarterly
Report on Form 10-Q for the first quarter of 2009. At this time,
the Company does not expect any goodwill impairment as of March 31,
2009. Income taxes The effective tax rate was 23.7% for the first
quarter of 2009 compared to 35.4% for the same quarter a year ago
and compared to 27.9% for the full year 2008. The decrease in the
effective tax rate was primarily due to the lower pretax income in
the first quarter of 2009 combined with an increase in low income
housing tax credits in 2009. BALANCE SHEET REVIEW Total assets
decreased by $184.5 million, or 1.6%, to $11.4 billion at March 31,
2009, from $11.6 billion at December 31, 2008. Total gross loans
decreased $78.7 million, or 1.1%, to $7.4 billion as of March 31,
2009, from $7.5 billion as of December 31, 2008, primarily due to
decreases in commercial loans. As a result of weak economy,
declines in trade finance caused decreases in commercial loans in
the first quarter of 2009. The changes in the loan composition from
December 31, 2008, are presented below: Type of Loans: March 31,
December 31, % 2009 2008 Change (Dollars in thousands) Commercial
$1,543,876 $1,620,438 (5) Residential mortgage 627,121 622,741 1
Commercial mortgage 4,124,512 4,132,850 (0) Equity lines 178,418
168,756 6 Real estate construction 903,191 913,168 (1) Installment
14,531 11,340 28 Other 1,988 3,075 (35) Gross loans and leases
$7,393,637 $7,472,368 (1) Allowance for loan losses (132,393)
(122,093) 8 Unamortized deferred loan fees (9,958) (10,094) (1)
Total loans and leases, net $7,251,286 $7,340,181 (1) Total
deposits were $7.3 billion at March 31, 2009, an increase of $428.7
million, or 6.3%, from $6.8 billion at December 31, 2008, primarily
due to increases of $140.7 million, or 21.3%, in money market
accounts, increases of $113.0 million, or 6.9%, in time deposits
under $100,000 and increases of $114.7 million, or 3.6%, in time
deposits of $100,000 or more. The changes in the deposit
composition from December 31, 2008, are presented below: Deposits
March 31, December 31, % 2009 2008 Change (Dollars in thousands)
Non-interest-bearing demand $767,072 $730,433 5 NOW 273,917 257,234
6 Money market 800,196 659,454 21 Savings 323,204 316,263 2 Time
deposits under $100,000 1,757,403 1,644,407 7 Time deposits of
$100,000 or more 3,343,675 3,228,945 4 Total deposits $7,265,467
$6,836,736 6 ASSET QUALITY REVIEW At March 31, 2009, total
non-accrual loans of $221.2 million increased $40.0 million, or
22.1% from $181.2 million at December 31, 2008. A summary of
non-accrual loans by collateral type is shown below: Collateral No.
of Other No. of No. of Type California Borrowers States Borrowers
Total Borrowers (Dollars in thousands except no. of borrowers)
Commercial real estate $16,213 10 $14,510 21 $30,723 31 Commercial
16,623 19 7,734 10 24,357 29 Construction- residential 107,986 16
15,487 5 123,473 21 Construction- non-residential 17,472 5 1,073 1
18,545 6 Residential mortgage 4,364 12 1,860 5 6,224 17 Land 8,973
8 8,929 5 17,902 13 Total $171,631 70 $49,593 47 $221,224 117 At
March 31, 2009, total residential construction loans were $403.1
million of which $15.9 million were in San Bernardino and Riverside
counties in California and $11.2 million were in the Central Valley
in California. Residential construction loans of $6.7 million in
the Central Valley and $10.2 million in San Bernardino and
Riverside counties were on non-accrual status as of March 31, 2009.
At March 31, 2009, total land loans were $210.2 million of which
$24.1 million were in San Bernardino and Riverside counties and
$2.8 million were in the Central Valley. Land loans of $1.8 million
in the Central Valley and $0.4 million in San Bernardino county
were on non-accrual status as of March 31, 2009. At March 31, 2009,
net carrying value of other real estate owned increased $3.9
million, or 6.4%, to $64.9 million from $61.0 million at December
31, 2008. At March 31, 2009, $27.5 million of other real estate
owned was located in Texas. Non-performing assets to total assets
was 2.6% at March 31, 2009, compared to 2.2% at December 31, 2008.
Total non-performing assets increased $42.2 million, or 16.8%, to
$294.0 million at March 31, 2009, compared with $251.8 million at
December 31, 2008, primarily due to a $40.0 million increase in
non-accrual loans and a $3.9 million increase in OREO and other
assets offset by a $1.7 million decrease in accruing loans past due
90 days or more. In addition to the non-performing asset totals
above, a borrower with an outstanding loan balance of $47.6 million
filed for bankruptcy in March 2009. While the loan is 59 days past
due at March 31, 2009, management believes that the value of the
underlying real estate collateral is sufficient for a full
collection of principal and interest. The allowance for loan losses
was $132.4 million and the allowance for off-balance sheet unfunded
credit commitments was $6.0 million at March 31, 2009, and
represented the amount that the Company believes to be sufficient
to absorb credit losses inherent in the Company's loan portfolio.
The allowance for credit losses, the sum of allowance for loan
losses and for off-balance sheet unfunded credit commitments, was
$138.4 million at March 31, 2009, compared to $129.4 million at
December 31, 2008, an increase of $9.0 million, or 6.9%. The
allowance for credit losses represented 1.87% of period-end gross
loans and 61.2% of non-performing loans at March 31, 2009. The
comparable ratios were 1.73% of period-end gross loans and 68.9% of
non-performing loans at December 31, 2008. Results of the changes
to the Company's non-performing assets and troubled debt
restructurings are highlighted below: (Dollars in thousands) March
31, December 31, % 2009 2008 Change Non-performing assets Accruing
loans past due 90 days or more $5,013 $6,733 (26) Non-accrual
loans: Construction- residential 123,473 100,169 23 Construction-
non-residential 18,545 22,012 (16) Land 17,902 12,608 42 Commercial
real estate, excluding land 30,723 19,733 56 Commercial 24,357
20,904 17 Residential mortgage 6,224 5,776 8 Total non-accrual
loans: $221,224 $181,202 22 Total non-performing loans 226,237
187,935 20 Other real estate owned and other assets 67,799 63,892 6
Total non-performing assets $294,036 $251,827 17 Troubled debt
restructurings $4,037 $924 337 Allowance for loan losses $132,393
$122,093 8 Allowance for off-balance sheet credit commitments 6,014
7,332 (18) Allowance for credit losses $138,407 $129,425 7 Total
gross loans outstanding, at period-end $7,393,637 $7,472,368 (1)
Allowance for loan losses to non-performing loans, at period-end
58.52% 64.97% Allowance for loan losses to gross loans, at
period-end 1.79% 1.63% Allowance for credit losses to
non-performing loans, at period-end 61.18% 68.87% Allowance for
credit losses to gross loans, at period-end 1.87% 1.73% DIVIDEND
DECLARATION On April 23, 2009, the Board of Directors of the
Company declared a cash dividend of 8 cents per common share
payable May 14, 2009, to stockholders of record at the close of
business on May 4, 2009. The amount of this dividend is 2.5 cents,
or approximately 24%, less than the 10.5 cents cash dividend per
common share paid in the previous quarter. "Although we remain
well-capitalized and profitable, we believe that reducing our
dividend at this time is a prudent measure in view of the
continuing uncertainties in the financial markets and the economy,"
said Dunson K. Cheng, Chairman of the Board, President, and Chief
Executive Officer of the Company. "We made this difficult decision
after duly considering the long-term interests of our stockholders,
and believe the reduced dividend serves to provide value to our
stockholders while maintaining a disciplined approach to capital
management." CAPITAL ADEQUACY REVIEW At March 31, 2009, the Tier 1
risk-based capital ratio of 12.50%, total risk-based capital ratio
of 14.34%, and Tier 1 leverage capital ratio of 9.65%, continue to
place the Company in the "well capitalized" category, which is
defined as institutions with a Tier 1 risk-based capital ratio
equal to or greater than 6%, a total risk-based capital ratio equal
to or greater than 10%, and a Tier 1 leverage capital ratio equal
to or greater than 5%. At December 31, 2008, the Company's Tier 1
risk-based capital ratio was 12.12%, the total risk-based capital
ratio was 13.94%, and Tier 1 leverage capital ratio was 9.79%.
ABOUT CATHAY GENERAL BANCORP Cathay General Bancorp is the holding
company for Cathay Bank, a California state-chartered bank. Founded
in 1962, Cathay Bank offers a wide range of financial services.
Cathay Bank currently operates 31 branches in California, nine
branches in New York State, one in Massachusetts, two in Texas,
three in Washington State, three in the Chicago, Illinois area, one
in New Jersey, one in Hong Kong, and a representative office in
Shanghai and in Taipei. Cathay Bank's website is found at
http://www.cathaybank.com/. Cathay General Bancorp's website is
found at http://www.cathaygeneralbancorp.com/. FORWARD-LOOKING
STATEMENTS AND OTHER NOTICES Statements made in this press release,
other than statements of historical fact, are forward-looking
statements within the meaning of the applicable provisions of the
Private Securities Litigation Reform Act of 1995 regarding
management's beliefs, projections, and assumptions concerning
future results and events. These forward-looking statements may
include, but are not limited to, such words as "aims,"
"anticipates," "believes," "could," "estimates," "expects,"
"hopes," "intends," "may," "plans," "projects," "seeks," "shall,"
"should," "will," "predicts," "potential," "continue," and
variations of these words and similar expressions. Forward-looking
statements are based on estimates, beliefs, projections, and
assumptions and are not guarantees of future performance. These
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from our historical experience and our present expectations or
projections. Such risks and uncertainties and other factors
include, but are not limited to, adverse developments or conditions
related to or arising from: significant volatility and
deterioration in the credit and financial markets; adverse changes
in general economic conditions; the effects of the Emergency
Economic Stabilization Act, the American Recovery and Reinvestment
Act, and the Troubled Asset Relief Program (TARP) and any changes
or amendments thereto; deterioration in asset or credit quality;
the availability of capital; the impact of any goodwill impairment
that may be determined; acquisitions of other banks, if any;
fluctuations in interest rates; the soundness of other financial
institutions; expansion into new market areas; earthquakes,
wildfires, or other natural disasters; competitive pressures;
legislative, regulatory, and accounting rule changes and
developments; and general economic or business conditions in
California and other regions where Cathay Bank has operations,
including, but not limited to, adverse changes in economic
conditions resulting from a prolonged economic downturn. These and
other factors are further described in Cathay General Bancorp's
Annual Report on Form 10-K for the year ended December 31, 2008 (at
Item 1A in particular), other reports and registration statements
filed with the Securities and Exchange Commission ("SEC"), and
other filings it makes with the SEC from time to time. Actual
results in any future period may also vary from the past results
discussed in this press release. Given these risks and
uncertainties, readers are cautioned not to place undue reliance on
any forward-looking statements, which speak to the date of this
press release. Cathay General Bancorp has no intention and
undertakes no obligation to update any forward-looking statement or
to publicly announce any revision of any forward-looking statement
to reflect future developments or events, except as required by
law. Cathay General Bancorp's filings with the SEC are available at
the website maintained by the SEC at http://www.sec.gov/, or by
request directed to Cathay General Bancorp, 9650 Flair Drive, El
Monte, California 91731, Attention: Investor Relations (626)
279-3286. CATHAY GENERAL BANCORP CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited) Three months ended (Dollars in thousands, March 31, %
except per share data) 2009 2008 Change FINANCIAL PERFORMANCE Net
interest income before provision for credit losses $70,425 $ 75,190
(6) Provision for credit losses 47,000 7,500 527 Net interest
income after provision for credit losses 23,425 67,690 (65)
Non-interest income 27,661 6,524 324 Non-interest expense 37,674
31,956 18 Income before income tax expense 13,412 42,258 (68)
Income tax expense 3,175 14,959 (79) Net income $10,237 $ 27,299
(63) Dividends on preferred stock (4,231) - 100 Net income
available to common stockholders $6,006 $27,299 (78) Net income
available to common stockholders per common share: Basic $0.12
$0.55 (78) Diluted $0.12 $0.55 (78) Cash dividends paid per common
share $0.105 $0.105 - SELECTED RATIOS Return on average assets
0.37% 1.07% (65) Return on average total stockholders' equity 3.21%
10.99% (71) Efficiency ratio 38.41% 39.11% (2) Dividend payout
ratio 50.78% 18.98% 168 YIELD ANALYSIS (Fully taxable equivalent)
Total interest-earning assets 5.26% 6.46% (19) Total
interest-bearing liabilities 2.98% 3.80% (22) Net interest spread
2.28% 2.66% (14) Net interest margin 2.69% 3.16% (15) CAPITAL
RATIOS March 31, March 31, December 31, 2009 2008 2008 Tier 1
risk-based capital ratio 12.50% 9.41% 12.12% Total risk-based
capital ratio 14.34% 10.88% 13.94% Tier 1 leverage capital ratio
9.65% 7.83% 9.79% CATHAY GENERAL BANCORP CONDENSED CONSOLIDATED
BALANCE SHEETS (Unaudited) (In thousands, except March 31, December
31, % share and per share data) 2009 2008 change Assets Cash and
due from banks $80,856 $84,818 (5) Short-term investments 31,000
25,000 24 Securities purchased under agreements to resell - 201,000
(100) Securities available-for-sale (amortized cost of $2,907,218
in 2009 and $3,043,566 in 2008) 2,943,467 3,083,817 (5) Trading
securities 248,841 12 100 Loans 7,393,637 7,472,368 (1) Less:
Allowance for loan losses (132,393) (122,093) 8 Unamortized
deferred loan fees, net (9,958) (10,094) (1) Loans, net 7,251,286
7,340,181 (1) Federal Home Loan Bank stock 71,791 71,791 - Other
real estate owned, net 64,922 61,015 6 Affordable housing
investments, net 101,835 103,562 (2) Premises and equipment, net
108,045 104,107 4 Customers' liability on acceptances 33,867 39,117
(13) Accrued interest receivable 36,555 43,603 (16) Goodwill
319,468 319,557 (0) Other intangible assets, net 27,528 29,246 (6)
Other assets 78,683 75,813 4 Total assets $11,398,144 $11,582,639
(2) Liabilities and Stockholders' Equity Deposits
Non-interest-bearing demand deposits $767,072 $730,433 5
Interest-bearing deposits: NOW deposits 273,917 257,234 6 Money
market deposits 800,196 659,454 21 Savings deposits 323,204 316,263
2 Time deposits under $100,000 1,757,403 1,644,407 7 Time deposits
of $100,000 or more 3,343,675 3,228,945 4 Total deposits 7,265,467
6,836,736 6 Federal funds purchased 7,000 52,000 (87) Securities
sold under agreements to repurchase 1,559,000 1,610,000 (3)
Advances from the Federal Home Loan Bank 929,362 1,449,362 (36)
Other borrowings from financial institutions 10,000 - 100 Other
borrowings for affordable housing investments 19,474 19,500 (0)
Long-term debt 171,136 171,136 - Acceptances outstanding 33,867
39,117 (13) Other liabilities 100,039 103,401 (3) Total liabilities
10,095,345 10,281,252 (2) Commitments and contingencies - - - Total
equity 1,302,799 1,301,387 0 Total liabilities and equity
$11,398,144 $11,582,639 (2) Book value per common stock share
$20.92 $20.90 0 Number of common stock shares outstanding
49,535,723 49,508,250 0 CATHAY GENERAL BANCORP CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three months ended
March 31, 2009 2008 (In thousands, except share and per share data)
INTEREST AND DIVIDEND INCOME Loan receivable, including loan fees
$103,994 $117,025 Investment securities- taxable 32,194 28,506
Investment securities- nontaxable 246 366 Federal Home Loan Bank
stock - 753 Agency preferred stock - 716 Federal funds sold and
securities purchased under agreements to resell 1,302 6,480
Deposits with banks 58 454 Total interest and dividend income
137,794 154,300 INTEREST EXPENSE Time deposits of $100,000 or more
23,237 31,868 Other deposits 16,115 17,235 Securities sold under
agreements to repurchase 15,936 14,625 Advances from Federal Home
Loan Bank 10,565 12,121 Long-term debt 1,505 2,849 Short-term
borrowings 11 412 Total interest expense 67,369 79,110 Net interest
income before provision for credit losses 70,425 75,190 Provision
for credit losses 47,000 7,500 Net interest income after provision
for loan losses 23,425 67,690 NON-INTEREST INCOME Securities gains,
net 22,498 - Letters of credit commissions 976 1,440 Depository
service fees 1,399 1,272 Other operating income 2,788 3,812 Total
non-interest income 27,661 6,524 NON-INTEREST EXPENSE Salaries and
employee benefits 16,886 17,859 Occupancy expense 4,121 3,283
Computer and equipment expense 1,896 2,244 Professional services
expense 2,967 2,385 FDIC and State assessments 2,854 291 Marketing
expense 1,028 1,017 Other real estate owned expense (income) 2,142
(17) Operations of affordable housing investments 1,698 825
Amortization of core deposit intangibles 1,711 1,752 Other
operating expense 2,371 2,317 Total non-interest expense 37,674
31,956 Income before income tax expense 13,412 42,258 Income tax
expense 3,175 14,959 Net income 10,237 27,299 Dividends on
preferred stock (4,231) - Net income available to common
stockholders $6,006 $27,299 Net income available to common
stockholders per common share: Basic $0.12 $0.55 Diluted $0.12
$0.55 Cash dividends paid per common share $0.105 $0.105 Basic
average common shares outstanding 49,531,343 49,346,285 Diluted
average common shares outstanding 49,541,041 49,531,531 CATHAY
GENERAL BANCORP AVERAGE BALANCES - SELECTED CONSOLIDATED FINANCIAL
INFORMATION (Unaudited) For the three months ended, (In thousands)
March 31, 2009 March 31, 2008 December 31, 2008 Average Average
Average Average Average Average Balance Yield/Rate Balance
Yield/Rate Balance Yield/Rate (1)(2) (1)(2) (1)(2) Interest-
earning assets Loans and leases(1) $7,459,092 5.65% $6,804,599
6.92% $7,500,351 5.85% Taxable investment securities 2,970,700
4.40% 2,250,823 5.09% 2,625,517 4.76% Tax-exempt investment
securities(2) 22,845 6.73% 69,668 8.94% 26,190 6.45% FHLB stock
71,791 0.00% 65,753 4.61% 68,235 3.59% Federal funds sold and
securities purchased under agreements to resell 80,700 6.54%
419,675 6.21% 155,326 6.97% Deposits with banks 24,998 0.94% 24,885
7.34% 19,471 2.72% Total interest- earning assets $10,630,126 5.26%
$9,635,403 6.46% $10,395,090 5.57% Interest- bearing liabilities
Interest- bearing demand deposits $259,535 0.40% $237,611 0.82%
$260,558 0.48% Money market 759,930 1.58% 701,552 2.20% 746,152
1.63% Savings deposits 311,145 0.22% 330,504 0.54% 331,329 0.25%
Time deposits 4,961,130 2.94% 4,180,871 4.26% 4,777,558 3.18% Total
interest- bearing deposits $6,291,740 2.54% $5,450,538 3.62%
$6,115,597 2.72% Federal funds purchased 16,933 0.26% 43,341 3.54%
39,620 1.05% Securities sold under agreements to repurchase
1,580,989 4.09% 1,559,336 3.77% 1,555,217 4.05% Other Borrowed
funds 1,117,844 3.83% 1,156,238 4.23% 1,262,653 3.55% Long-term
debt 171,136 3.57% 171,136 6.70% 171,136 5.12% Total interest-
bearing liabili- ties 9,178,642 2.98% 8,380,589 3.80% 9,144,223
3.10% Non-interest- bearing demand deposits 734,883 780,579 759,038
Total deposits and other borrowed funds $9,913,525 $9,161,168
$9,903,261 Total average assets $11,351,762 $10,302,295 $11,148,143
Total average stockholders' equity $1,300,732 $998,917 $1,093,748
(1) Yields and interest earned include net loan fees. Non-accrual
loans are included in the average balance. (2) The average yield
has been adjusted to a fully taxable-equivalent basis for certain
securities of states and political subdivisions and other
securities held using a statutory Federal income tax rate of 35%.
DATASOURCE: Cathay General Bancorp CONTACT: Heng W. Chen of Cathay
General Bancorp, +1-626-279-3652 Web Site:
http://www.cathaybank.com/
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