FOR IMMEDIATE RELEASE
- ---------------------
For: Cathay General Bancorp Contact: Heng W. Chen
777 N. Broadway (213) 625-4752
Los Angeles, CA 90012
CATHAY GENERAL BANCORP ANNOUNCES EARNINGS OF $30.0 MILLION, OR $0.57
PER SHARE, IN FIRST QUARTER 2007
Los Angeles, Calif., April 26: Cathay General Bancorp (the "Company",
NASDAQ: CATY), the holding company for Cathay Bank (the "Bank"), today announced
results for the first quarter of 2007.
STRONG FINANCIAL PERFORMANCE
First Quarter 2007 First Quarter 2006
- ----------------------------------------------------- ------------------
Net income $30.0 million $27.3 million
Basic earnings per share $0.58 $0.54
Diluted earnings per share $0.57 $0.54
Return on average assets 1.45% 1.67%
Return on average stockholders' equity 12.87% 14.06%
Efficiency ratio 38.44% 36.07%
FIRST QUARTER HIGHLIGHTS
o First quarter earnings increased $2.7 million, or 9.6%, compared to the
same quarter a year ago.
o Fully diluted earnings per share reached $0.57, increasing 5.6% compared
to the same quarter a year ago.
o Return on average assets was 1.45% for the quarter ended March 31, 2007,
compared to 1.54% for the quarter ended December 31, 2006 and compared to
1.67% for the same quarter a year ago.
o Return on average stockholders' equity was 12.87% for the quarter ended
March 31, 2007, compared to 13.03% for the quarter ended December 31,
2006, and compared to 14.06% for the same quarter a year ago.
o Gross loans, excluding the loans acquired through United Heritage Bank,
increased by $110.6 million, or 1.92% for the quarter to $5.9 billion at
March 31, 2007.
o The Company completed the acquisition of United Heritage Bank at the close
of business on March 30, 2007.
"We are pleased to report solid earnings for the first quarter of 2007
despite a challenging economic environment. Strong net interest income and an
improvement in the efficiency ratio were the main factors that contributed to
the solid first quarter results," commented Dunson Cheng, Chairman of the Board,
Chief Executive Officer, and President of the Company.
"We received the necessary regulatory approvals for our new Hong Kong
branch as of April 4, 2007 and expect the office to open by the end of the
second quarter. Our new Bellevue, Washington branch is expected to open in May,
2007, followed by our new Dallas, Texas, and Ontario, California branches early
in the third quarter," said Peter Wu, Executive Vice Chairman and Chief
Operating Officer.
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"In March, 2007, the Company's Board of Directors approved a new stock
repurchase program for the repurchase of one million shares of its common stock,
demonstrating the Company's continuing commitment to effective capital
management and stockholder value. While loan growth has slowed, we are still
optimistic that 2007 should be another record year for Cathay General Bancorp,"
concluded Dunson Cheng.
INCOME STATEMENT REVIEW
The comparability of financial information is affected by our
acquisitions. Operating results include the operations of acquired entities from
the date of acquisition.
Net interest income before provision for loan losses
Net interest income before provision for loan losses increased to $72.8
million during the first quarter of 2007, or 11.7% higher than the $65.1 million
during the same quarter a year ago. The increase was due primarily to the
increases in loans and securities and higher loan prepayment fees of $0.9
million.
The net interest margin, on a fully taxable-equivalent basis, was 3.83%
for the first quarter of 2007. The net interest margin decreased 18-basis points
from 4.01% in the fourth quarter of 2006 and decreased 50-basis points from
4.33% in the first quarter of 2006. The decrease in the net interest margin was
primarily as a result of the increases in investment securities that had lower
yields than loans, repricing of time deposits to reflect higher market interest
rates, and increased reliance on more expensive wholesale borrowings.
For the first quarter of 2007, the yield on average interest-earning
assets was 7.44% on a fully taxable-equivalent basis, and the cost of funds on
average interest-bearing liabilities equaled 4.27%. In comparison, for the first
quarter of 2006, the yield on average interest-earning assets was 6.94% and cost
of funds on average interest-bearing liabilities equaled 3.18%. 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
primarily due to the reasons discussed above.
Provision for loan losses
The provision for loan losses was $1.0 million for the first quarter of
2007 compared to $1.5 million for the first quarter of 2006 and to no provision
for the fourth quarter of 2006. The provision for loan losses was based on the
review of the adequacy of the allowance for loan losses at March 31, 2007. The
provision for loan 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 loan 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,
- --------------------------------------------------------------------------------
(Dollars in thousands) March 31, 2007 March 31, 2006 December 31, 2006
- ---------------------- -------------- -------------- -----------------
Charge-offs $ 3,281 $ 265 $ 1,185
Recoveries 2,477 241 342
Net Charge-offs (Recoveries) $ 804 $ 24 $ 843
-------------- -------------- -----------------
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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 $5.9 million for
the first quarter of 2007, an increase of $809,000, or 15.9%, compared to the
non-interest income of $5.1 million for the first quarter of 2006.
For the first quarter of 2007, the Company recorded net securities gains
of $191,000 compared to net securities gains of $27,000 for the same quarter in
2006.
Letters of credit commissions increased $223,000, or 20.9%, to $1.3
million in the first quarter of 2007 from $1.1 million in the same quarter of
2006 due primarily to increases in export letters of credit commissions and
documentary collection commissions due in part to the acquisition of Great
Eastern Bank in April 2006.
Depository service fees increased $91,000, or 7.3%, from $1.26 million in
the first quarter of 2006 to $1.35 million in the first quarter of 2007 due
primarily to the increases in overdraft and non-sufficient fund charges.
In addition, other operating income increased $331,000, or 12.2%, to $3.1
million in the first quarter of 2007 from $2.7 million in the same quarter a
year ago primarily due to increases in loan referral fees of $356,000, safe
deposit box commissions of $156,000, wealth management commissions of $138,000,
wire transfer fees of $121,000 and other miscellaneous income of $181,000 offset
by a decrease in warrant income of $883,000.
Non-interest expense
Non-interest expense increased $4.9 million, or 19.4%, to $30.2 million in
the first quarter of 2007 compared to the same quarter a year ago primarily due
to increases in salaries and employee benefits expenses, occupancy expenses, and
computer and equipment expenses. The efficiency ratio was 38.44% for the first
quarter of 2007 compared to 36.07% in the year ago quarter and 38.82% for the
fourth quarter of 2006.
The increase of non-interest expense from the first quarter a year ago to
the first quarter of 2007 was primarily due to the acquisitions of Great Eastern
Bank and New Asia Bancorp in 2006, and a combination of the following:
o Salaries and employee benefits increased $2.9 million, or 20.9%, from
$14.04 million in the first quarter of 2006 to $16.98 million in the first
quarter of 2007 due primarily to increases in salaries, payroll taxes, and
benefits of $2.5 million.
o Occupancy expenses increased $688,000, or 33.1%, due to increases in
depreciation expenses, property taxes, rent expenses, utility expenses and
repair and maintenance expenses due to acquisitions.
o Computer and equipment expenses increased $615,000, or 38.2%, due to the
increase in software license fees under a new data processing contract and
in depreciation expenses.
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o Marketing expenses increased $206,000, or 29.6%, in the first quarter of
2007 compared to the same quarter a year ago due to increased donations,
sponsorships, and charitable contributions.
o OREO expenses increased $159,000 due to an additional writedown recorded
in connection with the sale of a property which closed on April 20, 2007.
o Amortization of core deposit intangibles increased $364,000, or 26.0%, due
to the acquisitions completed during 2006.
o Other operating expenses increased $192,000, or 8.6%, primarily due to
increases in printing and supply expenses and higher operating losses.
Offsetting the above increases were a $355,000, or 27.3%, decrease in
operations of affordable housing investments primarily due to a $500,000 cash
distribution from a low income housing partnership which had been fully
amortized in previous years.
Income taxes
The effective tax rate was 36.8% for the first quarter of 2007, compared
to 37.0% for the same quarter a year ago and 36.4% for the full year 2006.
The FASB issued Interpretation No. 48 "Accounting for Uncertainty in
Income Taxes" ("FIN 48") which requires that the amount of recognized tax
benefit should be the maximum amount which is more-likely-than-not to be
realized and that amounts previously recorded that do not meet the requirements
of FIN 48 be charged against retained earnings. As of December 31, 2006, the
Company reflected a $12.1 million net state tax receivable related to payments
it made in April 2004 under the Voluntary Compliance Initiative program of the
California Franchise Tax Board for tax deductions related to its regulated
investment company for the years 2000, 2001, and 2002. The Company has
determined that its refund claim related to its regulated investment company is
not more-likely-than-not to be realized and consequently, included the $7.9
million after tax amount related to its refund claim in its $8.5 million total
cumulative effect adjustment for FIN 48 as an adjustment to the opening balance
of retained earnings as of the January 1, 2007, effective date of FIN 48.
BALANCE SHEET REVIEW
Total assets increased by $662.3 million, or 8.3%, to $8.7 billion at
March 31, 2007 from year-end 2006 of $8.0 billion. The increase in total assets
was represented primarily by increases in investment securities, reverse
repurchase agreements and loans funded by increases in repurchase agreements and
FHLB borrowings. Securities purchased under agreements to resell increased
$150.0 million and long-term certificates of deposit increased $50.0 million
during the first quarter due to attractive rates available on these investments.
Investment securities increased by $338.0 million during the first quarter due
to purchases of callable agency securities which provided collateral for
repurchase agreements.
The growth of gross loans to $5.9 billion as of March 31, 2007, from $5.7
billion as of December 31, 2006, represents an increase of $149.2 million, or
2.6%, of which $38.6 million resulted from the acquisition of United Heritage
Bank on March 30, 2007.
The changes in the loan composition from December 31, 2006, are presented
below:
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Type of Loans: March 31, 2007 December 31, 2006 % Change
--------------- ----------------- -----------
(Dollars in thousands)
Commercial $ 1,258,234 $ 1,243,756 1
Residential mortgage 475,463 455,949 4
Commercial mortgage 3,341,377 3,226,658 4
Equity lines 114,137 118,473 (4)
Real estate construction 687,989 685,206 0
Installment 16,212 13,257 22
Other 3,303 4,247 (22)
Gross loans and leases $ 5,896,715 $ 5,747,546 3
Allowance for loan losses (65,317) (64,689) 1
Unamortized deferred loan fees (11,354) (11,984) (5)
Total loans and leases, net $ 5,820,044 $ 5,670,873 3
At March 31, 2007, total deposits increased $49.4 million, or 0.9%, to
$5.72 billion from December 31, 2006, of $5.68 billion, due primarily to $54.2
million from the acquisition of United Heritage Bank. The changes in the deposit
composition from December 31, 2006, are presented below:
Deposits March 31, 2007 December 31, 2006 % Change
--------------- ----------------- ----------
(Dollars in thousands)
Non-interest-bearing demand $ 778,965 $ 781,492 (0)
NOW 236,601 239,589 (1)
Money market 677,406 657,689 3
Savings 351,432 358,827 (2)
Time deposits under $100,000 1,032,774 1,007,637 2
Time deposits of $100,000 or more 2,647,562 2,630,072 1
Total deposits $ 5,724,740 $ 5,675,306 1
At March 31, 2007, brokered deposits increased $21.1 million to $268.8
million from $247.7 at December 31, 2006.
Securities sold under agreement to repurchase increased $338.3 million
from $400.0 million at December 31, 2006, to $738.3 million at March 31, 2007.
Advances from the Federal Home Loan Bank increased $260.0 million to $974.7
million at March 31, 2007, compared to $714.7 million at December 31, 2006.
Federal funds purchased decreased $37.0 million to $13.0 million at March 31,
2007, from $50.0 million at December 31, 2006.
On March 30, 2007, Cathay General Bancorp issued $46.4 million of junior
subordinated debt which generated $45.0 million of Tier 1 capital.
ASSET QUALITY REVIEW
Non-performing assets to gross loans and other real estate owned was 0.63%
at March 31, 2007, compared to 0.62% at December 31, 2006. Total non-performing
assets increased $1.6 million, or 4.6%, to $37.2 million at March 31, 2007,
compared with $35.6 million at December 31, 2006, primarily due to a $10.1
million increase in non-accrual loans, including $0.6 million from the
acquisition of United Heritage Bank, offset by a $7.7 million decrease in
accruing loans past due 90 days or more and by a $748,000 decrease in OREO.
Included in nonaccrual loans at March 31, 2007 was one well-secured land loan
for $12.0 million which was reduced by a $8.5 million payment received on April
26, 2007 and the remaining $3.5 million is expected to be repaid in full by
early May, 2007. In addition, on April 20, 2007, the sale of a $4.1 million OREO
was completed at its recorded book value as of March 31, 2007.
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The allowance for loan losses amounted to $65.3 million at March 31, 2007,
and represented the amount that the Company believes to be sufficient to absorb
loan losses inherent in the Company's loan portfolio. The allowance for loan
losses represented 1.11% of period-end gross loans and 200% of non-performing
loans at March 31, 2007. The comparable ratios were 1.13% of gross loans and
213% of non-performing loans at December 31, 2006. Results of the changes to the
Company's non-performing assets and troubled debt restructurings are highlighted
below:
(Dollars in thousands) March 31, 2007 December 31, 2006 % Change
--------------- ----------------- ----------
Non-performing assets
Accruing loans past due 90 days or more $ 262 $ 8,008 (97)
Non-accrual loans 32,462 22,322 45
-----------------
Total non-performing loans 32,724 30,330 8
Other real estate owned 4,511 5,259 (14)
-----------------
Total non-performing assets $ 37,235 $ 35,589 5
-----------------
Troubled debt restructurings $ 955 $ 955 --
=============== =================
CAPITAL ADEQUACY REVIEW
At March 31, 2007, the Tier 1 risk-based capital ratio of 9.40%, total
risk-based capital ratio of 10.92%, and Tier 1 leverage capital ratio of 8.78%,
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,
2006, the Company's Tier 1 risk-based capital ratio was 9.40%, the total
risk-based capital ratio was 11.00%, and Tier 1 leverage capital ratio was
8.98%.
During the first quarter of 2007, the Company repurchased 877,903 shares
of its common stock for $29.9 million, or $34.11 average cost per share. No
shares were repurchased during 2006. On March 6, 2007, the Company completed the
March 18, 2005, repurchase program with 1.0 million shares of its common stock
repurchased for $33.9 million, or $33.91 average cost per share. On March 7,
2007, the Company announced a new program to repurchase an additional 1.0
million shares of its common stock. At March 31, 2007, 573,800 shares remain
under the Company's March 7, 2007 repurchase program.
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 30 branches in
California, nine branches in New York State, one in Massachusetts, one in
Houston, Texas, two in Washington State, three in Chicago, Illinois, one in New
Jersey, a loan production office in Dallas and representative offices in Taipei,
Hong Kong, and Shanghai. Cathay Bank's website is found at
http://www.cathaybank.com/.
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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 "believes," "expects," "anticipates," "intends," "plans,"
"estimates," "may," "will," "should," "could," "predicts," "potential,"
"continue," or the negative of such terms and other comparable terminology or
similar expressions. Forward-looking statements are not guarantees. They involve
known and unknown risks, uncertainties, and other factors that may cause the
actual results, performance, or achievements of Cathay General Bancorp to be
materially different from any future results, performance, or achievements
expressed or implied by such forward-looking statements. Such risks and
uncertainties and other factors include, but are not limited to, adverse
developments or conditions related to or arising from: expansion into new market
areas; acquisitions of other banks, if any; fluctuations in interest rates;
demographic changes; earthquake or other natural disasters; competitive
pressures; deterioration in asset or credit quality; changes in the availability
of capital; legislative and regulatory developments; changes in business
strategy; and general economic or business conditions in California and other
regions where Cathay Bank has operations.
These and other factors are further described in Cathay General Bancorp's
Annual Report on Form 10-K for the year ended December 31, 2006, its reports and
registration statements filed with the Securities and Exchange Commission
("SEC") and other filings it makes in the future with the SEC from time to time.
Cathay General Bancorp has no intention and undertakes no obligation to update
any forward-looking statements or to publicly announce the results of any
revision of any forward-looking statement to reflect future developments or
events.
Cathay General Bancorp's filings with the SEC are available to the public
from commercial document retrieval services and at the website maintained by the
SEC at http://www.sec.gov, or by request directed to Cathay General Bancorp, 777
N. Broadway, Los Angeles, CA 90012, Attention: Investor Relations (213)
625-4749.
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CATHAY GENERAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
Three months ended March 31,
----------------------------------------------------
(Dollars in thousands, except per share data) 2007 2006 % Change
- --------------------------------------------------------------------------------------------------------------
FINANCIAL PERFORMANCE
Net interest income before provision for loan losses $ 72,752 $ 65,141 12
Provision for loan losses 1,000 1,500 (33)
--------------- -----------------
Net interest income after provision for loan losses 71,752 63,641 13
Non-interest income 5,884 5,075 16
Non-interest expense 30,229 25,326 19
--------------- -----------------
Income before income tax expense 47,407 43,390 9
Income tax expense 17,441 16,054 9
--------------- -----------------
Net income $ 29,966 $ 27,336 10
=============== =================
Net income per common share:
Basic $ 0.58 $ 0.54 7
Diluted $ 0.57 $ 0.54 6
Cash dividends paid per common share $ 0.09 $ 0.09 --
==============================================================================================================
SELECTED RATIOS
Return on average assets 1.45% 1.67% (13)
Return on average stockholder' equity 12.87% 14.06% (8)
Efficiency ratio 38.44% 36.07% 7
Dividend payout ratio 15.60% 16.53% (6)
==============================================================================================================
YIELD ANALYSIS (Fully taxable equivalent)
Total interest-earning assets 7.44% 6.94% 7
Total interest-bearing liabilities 4.27% 3.18% 34
Net interest spread 3.17% 3.76% (16)
Net interest margin 3.83% 4.33% (12)
==============================================================================================================
CAPITAL RATIOS March 31, 2007 March 31, 2006 December 31, 2006
-------------- -------------- -----------------
Tier 1 risk-based capital ratio 9.40% 10.26% 9.40%
Total risk-based capital ratio 10.92% 11.31% 11.00%
Tier 1 leverage capital ratio 8.78% 9.61% 8.98%
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CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share data) March 31, 2007 December 31, 2006 % change
- ----------------------------------------------- ----------------- ----------------- --------
Assets
Cash and due from banks $ 93,191 $ 114,798 (19)
Federal funds sold 3,912 18,000 (78)
--------------- -----------------
Cash and cash equivalents 97,103 132,798 (27)
Short-term investments 15,525 16,379 (5)
Securities purchased under agreements to resell 150,000 -- 100
Long-term certificates of deposit 50,000 -- 100
Securities available-for-sale (amortized cost of
$1,873,558 in 2007 and $1,543,667 in 2006) 1,860,194 1,522,223 22
Trading securities 5,316 5,309 0
Loans 5,896,715 5,747,546 3
Less: Allowance for loan losses (65,317) (64,689) 1
Unamortized deferred loan fees, net (11,354) (11,984) (5)
--------------- -----------------
Loans, net 5,820,044 5,670,873 3
Federal Home Loan Bank stock 50,094 34,348 46
Other real estate owned, net 4,511 5,259 (14)
Affordable housing investments, net 85,623 87,289 (2)
Premises and equipment, net 75,352 72,934 3
Customers' liability on acceptances 24,987 27,040 (8)
Accrued interest receivable 44,605 39,267 14
Goodwill 320,500 316,752 1
Other intangible assets, net 41,610 42,987 (3)
Other assets 43,315 53,050 (18)
--------------- -----------------
Total assets $ 8,688,779 $ 8,026,508 8
=============== =================
Liabilities and Stockholder' Equity
Deposits
Non-interest-bearing demand deposits $ 778,965 $ 781,492 (0)
Interest-bearing deposits:
NOW deposits 236,601 239,589 (1)
Money market deposits 677,406 657,689 3
Savings deposits 351,432 358,827 (2)
Time deposits under $100,000 1,032,774 1,007,637 2
Time deposits of $100,000 or more 2,647,562 2,630,072 1
--------------- -----------------
Total deposits 5,724,740 5,675,306 1
--------------- -----------------
Federal funds purchased 13,000 50,000 (74)
Securities sold under agreement to repurchase 738,300 400,000 85
Advances from the Federal Home Loan Bank 974,680 714,680 36
Other borrowings from financial institutions 10,000 10,000 --
Other borrowings from affordable housing investments 19,777 19,981 (1)
Long-term debt 150,517 104,125 45
Acceptances outstanding 24,987 27,040 (8)
Minority interest in consolidated subsidiaries 8,500 8,500 --
Other liabilities 85,640 73,802 16
--------------- -----------------
Total liabilities 7,750,141 7,083,434 9
--------------- -----------------
Commitments and contingencies -- -- --
--------------- -----------------
Total stockholders' equity 938,638 943,074 (0)
--------------- -----------------
Total liabilities and stockholders' equity $ 8,688,779 $ 8,026,508 8
=============== =================
Book value per share $ 18.35 $ 18.16 1
Number of common stock shares outstanding 51,154,356 51,930,955 (1)
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CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)
Three months ended March 31,
-----------------------------
(Dollars in thousands, except per share data) 2007 2006
- -----------------------------------------------------------------------------------
INTEREST AND DIVIDEND INCOME
Loan receivable, including loan fees $ 114,179 $ 90,086
Securities available-for-sale - taxable 21,815 13,146
Securities available-for-sale - nontaxable 599 722
Federal Home Loan Bank stock 509 348
Agency preferred stock 164 209
Federal funds sold and securities
purchased under agreements to resell 3,802 28
Deposits with banks 786 67
------------ ------------
Total interest and dividend income 141,854 104,606
------------ ------------
INTEREST EXPENSE
Time deposits of $100,000 or more 31,152 21,438
Other deposits 17,987 9,893
Securities sold under agreements to repurchase 5,717 2,513
Advances from Federal Home Loan Bank 11,781 3,799
Long-term debt 1,976 1,041
Short-term borrowings 489 781
------------ ------------
Total interest expense 69,102 39,465
------------ ------------
Net interest income before provision for loan losses 72,752 65,141
Provision for loan losses 1,000 1,500
------------ ------------
Net interest income after provision for loan losses 71,752 63,641
------------ ------------
NON-INTEREST INCOME
Securities gains, net 191 27
Letters of credit commissions 1,292 1,069
Depository service fees 1,346 1,255
Other operating income 3,055 2,724
------------ ------------
Total non-interest income 5,884 5,075
------------ ------------
NON-INTEREST EXPENSE
Salaries and employee benefits 16,977 14,040
Occupancy expense 2,768 2,080
Computer and equipment expense 2,225 1,610
Professional services expense 1,728 1,641
FDIC and State assessments 259 249
Marketing expense 901 695
Other real estate owned expense 244 85
Operations of affordable housing investments 944 1,299
Amortization of core deposit intangibles 1,765 1,401
Other operating expense 2,418 2,226
------------ ------------
Total non-interest expense 30,229 25,326
------------ ------------
Income before income tax expense 47,407 43,390
Income tax expense 17,441 16,054
------------ ------------
Net income 29,966 27,336
------------ ------------
Other comprehensive gain (loss), net of tax 4,683 (6,839)
------------ ------------
Total comprehensive income $ 34,649 $ 20,497
============ ============
Net income per common share:
Basic $ 0.58 $ 0.54
Diluted $ 0.57 $ 0.54
Cash dividends paid per common share $ 0.09 $ 0.09
Basic average common shares outstanding 51,684,754 50,226,768
Diluted average common shares outstanding 52,295,229 50,797,859
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CATHAY GENERAL BANCORP
AVERAGE BALANCES - SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)
For the three months ended
- ------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands) March 31, 2007 March 31, 2006 December 31, 2006
----------------------- ----------------------- ------------------------
Interest-earning assets Average Average Average Average Average Average
Balance Yield/Rate Balance Yield/Rate Balance Yield/Rate
(1)(2) (1)(2) (1)(2)
---------- ---------- ---------- ---------- ---------- ----------
Loans and leases(1) $5,787,959 8.00% $4,838,651 7.55% $5,628,885 8.10%
Taxable securities 1,578,706 5.60% 1,161,798 4.59% 1,442,358 5.44%
Tax-exempt securities(2) 75,549 6.16% 86,755 6.54% 77,977 6.86%
FHLB & FRB stock 44,957 4.59% 29,756 4.74% 34,917 5.62%
Federal funds sold and securities
purchased under agreements to resell 217,662 7.08% 2,622 4.33% 2,744 5.06%
Deposits with banks 47,822 6.67% 19,340 1.41% 13,068 3.67%
---------- ---------- ---------- ---------- ---------- ----------
Total interest-earning assets $7,752,655 7.44% $6,138,922 6.94% $7,199,949 7.53%
---------- ---------- ----------
Interest-bearing liabilities
Interest-bearing demand deposits $ 232,656 1.26% $ 242,462 0.95% $ 231,415 1.27%
Money market 666,454 3.08% 575,759 2.30% 636,143 2.94%
Savings deposits 344,336 1.00% 357,795 0.77% 359,894 0.99%
Time deposits 3,654,859 4.72% 3,095,301 3.51% 3,609,594 4.61%
---------- ---------- ---------- ---------- ---------- ----------
Total interest-bearing deposits $4,898,305 4.07% $4,271,317 2.97% $4,837,046 3.96%
Federal funds purchased 25,244 5.33% 45,028 4.53% 43,940 5.40%
Securities sold under agreements
to repurchase 616,418 3.76% 280,000 3.64% 400,000 4.46%
Other borrowed funds 923,273 5.24% 384,913 4.30% 635,190 5.25%
Long-term debt 105,156 7.62% 53,982 7.82% 104,125 7.64%
---------- ---------- ---------- ---------- ---------- ----------
Total interest-bearing liabilities 6,568,396 4.27% 5,035,240 3.18% 6,020,301 4.20%
Non-interest-bearing demand deposits 772,268 717,599 786,132
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Total deposits and other borrowed funds $7,340,664 $5,752,839 $6,806,433
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Total average assets $8,389,776 $6,628,833 $7,844,168
Total average stockholders' equity $ 944,314 $ 788,565 $ 929,564
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(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%.