Exhibit 99.1
Page 1
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 RECORD EARNINGS OF $26.7 MILLION,
------------------------------------------------------------------
OR $0.53 PER SHARE, IN THIRD QUARTER 2005
-----------------------------------------
Los Angeles, Calif., October 20: Cathay General Bancorp (the "Company",
NASDAQ: CATY), the holding company for Cathay Bank (the "Bank"), today announced
results for the third quarter of 2005.
STRONG FINANCIAL PERFORMANCE
Third Quarter 2005 Third Quarter 2004
- -------------------------------------------------------------------------------
Net income $26.7 million $23.2 million
Basic earnings per share $0.53 $0.47
Diluted earnings per share $0.53 $0.46
Return on average assets 1.74% 1.60%
Return on average stockholders' equity 14.22% 14.08%
Efficiency ratio 37.91% 36.83%
THIRD QUARTER HIGHLIGHTS
o Third quarter earnings increased $3.5 million, or 15.0%, compared to the
same quarter a year ago.
o Fully diluted earnings per share reached $0.53, increasing 15.2% compared
to the same quarter a year ago.
o Return on average assets was 1.74% for the quarter ended September 30,
2005, compared to 1.68% for the quarter ended June 30, 2005.
o Return on average stockholders' equity was 14.22% for the quarter ended
September 30, 2005 compared to 14.07% for the quarter ended June 30, 2005.
o Net interest margin on a fully taxable equivalent basis was 4.28% compared
to 4.13% for the same quarter a year ago and 4.22% for the second quarter
of 2005.
o Net recoveries of $881,000 during the third quarter of 2005, compared to
net recoveries of $160,000 for the quarter ended June 30,2005 and net
recoveries of $34,000 for the same quarter of 2004.
o Gross loans increased from June 30, 2005, by $187.7 million, or 4.5%, for
the quarter to $4.4 billion at September 30, 2005.
o The Federal Deposit Insurance Corporation (FDIC) terminated its memorandum
of understanding ("MOU") with the Bank dated June 2004 relating to the
Bank's compliance with the Bank Secrecy Act.
"Continued strong organic loan growth, a higher net interest margin, net
credit recoveries, and a low efficiency ratio were the main factors that
contributed to the record results," commented Dunson Cheng, Chairman of the
Board, Chief Executive Officer and President of the Company.
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Page 2
"We expect to open a new office in Seattle, Washington during the fourth
quarter and are working on plans to open additional offices in 2006 to attract
new customers," said Peter Wu, Executive Vice Chairman and Chief Operating
Officer.
"During the third quarter, we continued to fund our loan growth without
excessive reliance on borrowed funds. We are optimistic that 2005 should be
another record year for Cathay General Bancorp," concluded Dunson Cheng.
INCOME STATEMENT REVIEW
Net interest income before provision for loan losses
Our net interest income before provision for loan losses increased to $60.1
million during the third quarter of 2005, or 9.5% higher than the $54.8 million
during the same quarter a year ago. The increase was due primarily to the strong
growth in loans and the increases in market interest rates.
The net interest margin, on a fully taxable-equivalent basis, was 4.28% for
the third quarter of 2005. The net interest margin increased from 4.22% in the
second quarter of 2005 and 4.13% in the third quarter of 2004, primarily as a
result of the decrease in securities as a proportion of earning assets and the
increases in short term interest rates.
For the third quarter of 2005, the interest rate earned on our average
interest-earning assets was 6.33% on a fully taxable-equivalent basis, and our
cost of funds on average interest-bearing liabilities equaled 2.54%. In
comparison, for the third quarter of 2004, the interest rate earned on our
average interest-earning assets was 5.25% and our cost of funds on average
interest-bearing liabilities equaled 1.37%. The net interest spread decreased
due to the increase in wholesale borrowing rates.
Provision for loan losses
The provision for loan losses was a negative $1,000,000 for the third
quarter of 2005 compared to a negative $500,000 provision for loan losses for
the second quarter of 2005 and to no provision for the third quarter of 2004.
The negative provision for loan losses was based on the review of the adequacy
of the allowance for loan losses at September 30, 2005, which was favorably
impacted by the net recoveries as well as the payoff of a number of loans with
credit weaknesses during the third quarter of 2005. 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 shown:
For the three months ended,
-----------------------------------------------
September 30, June 30, September 30,
(Dollars in thousands) 2005 2005 2004
- ----------------------------------- ------------- ------------- -------------
Charge-offs $ - $ 270 $ 2,436
Recoveries 881 430 2,470
------------- ------------- -------------
Net Charge-offs (Recoveries) $ (881) $ (160) $ (34)
============= ============= =============
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Non-interest income
Non-interest income, which includes revenues from service charges on
deposit accounts, 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 third quarter of 2005, an increase of $1.1
million, or 24.1%, compared to the non-interest income of $4.7 million for the
third quarter of 2004.
For the third quarter of 2005, the Company recorded net securities gains of
$169,000 compared to net securities losses of $257,000 for the same quarter in
2004.
Letters of credit commissions decreased $175,000, or 14.2%, from $1.2
million in the third quarter of 2004 to $1.1 million in the third quarter of
2005 due primarily to lower letter of credit volumes and the amortization during
2005 of all standby LC fees received. Depository service fees decreased
$141,000, or 8.9%, from $1.6 million in the third quarter of 2004 to $1.5
million in the third quarter of 2005 due to decreases in wire transfer charges
and the increases in short term interest rates which resulted in lower account
analysis fees collected from depositors. Other operating income increased $1.1
million, or 49.5%, from $2.1 million in the third quarter of 2004 to $3.2
million in the third quarter of 2005 due to the recording of warrant gains and
higher Wealth Management commissions.
Non-interest expense
Non-interest expense increased $3.1 million, or 13.9%, to $25.0 million in
the third quarter of 2005 compared to the same quarter a year ago primarily due
to increases in salaries and employee benefits expenses, occupancy expenses,
professional service expenses and operations of affordable housing investments.
The efficiency ratio was 37.91% for the third quarter of 2005 compared to 36.83%
in the year ago quarter. Salaries and employee benefits increased $1.4 million,
or 11.6%, from $12.0 million in the third quarter of 2004 to $13.4 million in
the third quarter of 2005 due primarily to the higher amortization expense for
stock options. Occupancy expense increased by $331,000, or 15.7%, from $2.1
million in the third quarter of 2004 to $2.4 million in the third quarter of
2005, due primarily to adjustment for prior period lease expense of $230,000 as
well as the addition of two new branches. Professional services expenses
increased $477,000, or 27.7%, from $1.7 million in the third quarter of 2004 to
$2.2 million in the third quarter of 2005 due primarily to increases in external
auditing expenses, professional expenses related to testing of the company's
internal control over financial reporting and consulting expenses. Expenses from
operation of affordable housing investments that qualified for low-income
housing tax credits increased $344,000, or 50.5%, to $1.0 million compared to
$681,000 in the same quarter a year ago due to additional investments in
affordable housing investments and an adjustment in 2004 to reflect lower than
expected losses for operations of affordable housing investments.
Income taxes
The effective tax rate was 36.3% for the third quarter of 2005 and 38.3%
for the third quarter of 2004. The effective tax rate was 37.6% for the nine
months ended September 30, 2005, compared to 38.4% for the nine months ended
September 30, 2004.
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On December 31, 2003, the California Franchise Tax Board (FTB) announced
its intent to list certain transactions that in its view constitute potentially
abusive tax shelters. Included in the transactions subject to this listing were
transactions utilizing regulated investment companies (RICs) and real estate
investment trusts (REITs). As part of the notification indicating the listed
transactions, the FTB also indicated its position that it intends to disallow
tax benefits associated with these transactions. While the Company continues to
believe that the tax benefits recorded in three prior years with respect to its
RIC were appropriate and fully defensible under California law, the Company has
deemed it prudent to participate in Voluntary Compliance Initiative - Option 2,
requiring payment of all California taxes and interest on these disputed 2000
through 2002 tax benefits, and permitting the Company to claim a refund for
these years while avoiding certain potential penalties. The Company retains
potential exposure for assertion of an accuracy-related penalty should the FTB
prevail in its position in addition to the risk of not being successful in its
refund claims. As of September 30, 2005, the Company reflected a $12.1 million
net state tax receivable for the years 2000, 2001, and 2002 after giving effect
to reserves for loss contingencies on the refund claims, or an equivalent of
$7.9 million after giving effect to Federal tax benefits. The FTB is currently
in the process of reviewing and assessing our refund claims for taxes and
interest for tax years 2000 through 2002. Although the Company believes its tax
deductions related to the regulated investment company were appropriate and
fully defensible, there can be no assurance of the outcome of its refund claims,
and an adverse outcome on the refund claims could result in a loss of all or a
portion of the $7.9 million net state tax receivable after giving effect to
Federal tax benefits.
BALANCE SHEET REVIEW
Total assets increased by $59.5 million, or 1.0%, to $6.2 billion at
September 30, 2005 from year-end 2004 of $6.1 billion. The increase in total
assets was represented primarily by loan growth, partially offset by a decrease
of securities available-for-sale.
The growth of gross loans to $4.4 billion as of September 30, 2005, from
$3.8 billion as of December 31, 2004, represents growth of $538.0 million, or
14.0%, due primarily to increases in commercial mortgage loans and commercial
loans. The growth in gross loans during the third quarter was $187.7 million, or
4.5%.
The changes in the loan composition from year-end 2004 are presented below:
September 30, December 31,
(Dollars in thousands) 2005 2004 % Change
- ---------------------------------------- ------------- ------------ --------
LOANS
Commercial $ 1,060,911 $ 955,377 11
Residential mortgage and equity lines 397,342 331,727 20
Commercial mortgage 2,414,255 2,119,349 14
Real estate construction 483,303 412,611 17
Installment 12,523 10,481 19
Other 1,696 2,443 (31)
------------- ------------
Gross loans and leases $ 4,370,030 $ 3,831,988 14
Allowance for loan losses (61,080) (62,880) (3)
Unamortized deferred loan fees (12,460) (11,644) 7
------------- ------------
Total loans and leases, net $ 4,296,490 $ 3,757,464 14
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Total deposits increased $262.8 million, or 5.7%, to $4.9 billion from
year-end 2004 of $4.6 billion. The changes in the deposit composition from
year-end 2004 are presented below:
September 30, December 31,
(Dollars in thousands) 2005 2004 % Change
- ---------------------------------------- ------------- ------------ --------
DEPOSITS
Non-interest-bearing demand $ 690,053 $ 674,791 2
Interest-bearing demand 730,660 842,293 (13)
Savings 386,585 418,041 (8)
Time deposits under $100 626,851 539,811 16
Time deposits of $100 or more 2,423,834 2,120,201 14
------------- ------------
Total deposits $ 4,857,983 $ 4,595,137 6
============= ============
Advances from the Federal Home Loan Bank decreased to $300.0 million at
September 30, 2005, compared to $545.0 million at December 31, 2004. During the
third quarter, the excess liquidity of the Bank generated from the sale of
securities was used to fund loan growth.
ASSET QUALITY REVIEW
Non-performing assets to gross loans was 0.40% at September 30, 2005
compared to 0.59% at December 31, 2004 and 0.38% at June 30, 2005. Total
non-performing assets decreased to $17.5 million at September 30, 2005, compared
with $22.5 million at December 31, 2004 and $29.2 million at September 30, 2004.
The allowance for loan losses amounted to $61.1 million at September 30, 2005,
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 1.40% of period-end gross loans and 349% of non-performing
loans at September 30, 2005. The comparable ratios were 1.64% of gross loans and
280% of non-performing loans at December 31, 2004. Results of the changes to the
Company's non-performing assets and troubled debt restructurings are highlighted
below:
September 30, December 31,
(Dollars in thousands) 2005 2004 % Change
- ---------------------------------------- ------------- ------------ --------
NON-PERFORMING ASSETS
Accruing loans past due 90 days or more $ 2,473 $ 3,260 (24)
Non-accrual loans 15,004 19,211 (22)
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Total non-performing loans 17,477 22,471 (22)
Other real estate owned 0 0
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Total non-performing assets $ 17,477 $ 22,471 (22)
------------- ------------
Troubled debt restructurings $ 985 $ 1,006 (2)
============= ============
CAPITAL ADEQUACY REVIEW
At September 30, 2005, the Tier 1 risk-based capital ratio of 10.68%, total
risk-based capital ratio of 11.86%, and Tier 1 leverage capital ratio of 9.61%,
continue to place the Company in the "well capitalized" category, which is
defined as institutions with a total risk-based capital ratio equal to or
greater than ten percent, a Tier 1 risk-based capital ratio equal to or greater
than six percent, and a Tier 1 leverage capital ratio equal to or greater than
five percent. At September 30, 2004, the Company's Tier 1 risk-based capital
ratio was 10.41%, the total risk-based capital ratio was 11.66%, and Tier 1
leverage capital ratio was 8.38%.
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For the nine months of 2005, the Company repurchased 738,542 shares of its
common stock for $24.5 million. No shares were repurchased during the third
quarter of 2005. At September 30, 2005, 451,703 shares remain under the
Company's latest stock buyback authorization which was announced on March 18,
2005.
YEAR-TO-DATE REVIEW
Net income was $77.4 million, or $1.52 per diluted share for the nine
months ended September 30, 2005, an increase of 18.6% in net income over the
$65.2 million, or $1.30 per diluted share for the same period a year ago due
primarily to the increases of net interest income. The net interest margin on a
fully-taxable-equivalent basis for the nine months ended September 30, 2005,
increased 17 basis points to 4.24% compared to 4.07% for the same period a year
ago.
Return on average stockholders' equity was 14.09% and return on average
assets was 1.69% for the nine months of 2005, compared to a return on average
stockholders' equity of 13.56% and a return on average assets of 1.53% for the
nine months ended September 30, 2004. The efficiency ratio for the nine months
ended September 30, 2005 was 36.76% compared to 39.06% during the same period a
year ago.
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 29 branches in California,
four branches in New York State, one in Massachusetts, one in Houston, Texas,
one in Washington State, and representative offices in Taipei, Hong Kong, and
Shanghai. Cathay Bank's website is found at http://www.cathaybank.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. 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: the Company's ability to realize the
benefits of its merger with GBC Bancorp, expansion into new markets,
fluctuations in interest rates, demographic changes, inflation, increases in
competition, deterioration in asset or credit quality, earthquake or other
natural disasters affecting the condition of real estate collateral, changes in
the availability of capital, legislative and regulatory developments, such as
the potential effects of California tax legislation enacted in late 2003 and the
subsequent Franchise Tax Board announcement on December 31, 2003, regarding the
taxation of real estate investment trusts and registered investment companies,
changes in business strategy, including the formation of a real estate
investment trust, and general economic or business conditions in California and
other regions where Cathay Bank has operations, such as the impact of the
California budget deficit.
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These and other factors are further described in Cathay General Bancorp's Annual
Report on Form 10-K for the year ended December 31, 2004, its reports and
registration statements filed (including those filed by GBC Bancorp prior to the
merger) 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 September 30, Nine months ended September 30,
--------------------------------- ------------------------------------
(Dollars in thousands, except per share data) 2005 2004 % Change 2005 2004 % Change
- ---------------------------------------------------- -------- ----------- -------- ----------- ----------- --------
FINANCIAL PERFORMANCE
Net interest income before provision for loan losses $ 60,058 $ 54,846 10 $ 178,010 $ 158,112 13
Provision (reversal) for loan losses (1,000) - (100) (500) - (100)
---------------------- -------------------------
Net interest income after provision
(reversal) for loan losses 61,058 54,846 11 178,510 158,112 13
Non-interest income 5,853 4,715 24 17,305 15,636 11
Non-interest expense 24,989 21,937 14 71,796 67,865 6
---------------------- -------------------------
Income before income tax expense 41,922 37,624 11 124,019 105,883 17
Income tax expense 15,237 14,426 6 46,640 40,638 15
---------------------- -------------------------
Net income $ 26,685 $ 23,198 15 $ 77,379 $ 65,245 19
====================== =========================
Net income per common share:
Basic $ 0.53 $ 0.47 13 $ 1.53 $ 1.31 17
Diluted $ 0.53 $ 0.46 15 $ 1.52 $ 1.30 17
Cash dividends paid per common share $ 0.09 $ 0.07 29 $ 0.27 $ 0.21 29
===============================================================================================================================
SELECTED RATIOS
Return on average assets 1.74% 1.60% 9 1.69% 1.53% 10
Return on average stockholders' equity 14.22% 14.08% 1 14.09% 13.56% 4
Efficiency ratio 37.91% 36.83% 3 36.76% 39.06% (6)
Dividend payout ratio 16.90% 15.02% 13 17.63% 16.00% 10
===============================================================================================================================
YIELD ANALYSIS (Fully taxable equivalent)
Total interest-earning assets 6.33% 5.25% 21 6.04% 5.14% 18
Total interest-bearing liabilities 2.54% 1.37% 85 2.22% 1.30% 71
Net interest spread 3.79% 3.88% (2) 3.82% 3.84% (1)
Net interest margin 4.28% 4.13% 4 4.24% 4.07% 4
===============================================================================================================================
September 30, December 31, September 30,
CAPITAL RATIOS 2005 2004 2004
- ------------------------------- ------------- ------------- -------------
Tier 1 risk-based capital ratio 10.68% 10.78% 10.41%
Total risk-based capital ratio 11.86% 12.03% 11.66%
Tier 1 leverage capital ratio 9.61% 8.86% 8.38%
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CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share September 30, December 31,
and per share data) 2005 2004 % change
- ---------------------------------------------- ------------- ------------- ------------
ASSETS
Cash and due from banks $ 98,600 $ 86,133 14
Securities available-for-sale
(amortized cost of $1,336,983 in 2005
and $1,811,891 in 2004) 1,319,660 1,817,942 (27)
Loans 4,370,030 3,831,988 14
Less: Allowance for loan losses (61,080) (62,880) (3)
Unamortized deferred loan fees, net (12,460) (11,644) 7
------------- -------------
Loans, net 4,296,490 3,757,464 14
Affordable housing investments, net 55,942 45,145 24
Premises and equipment, net 34,150 33,421 2
Customers' liability on acceptances 21,340 14,368 49
Accrued interest receivable 21,754 21,712 0
Goodwill 239,274 241,013 (1)
Other intangible assets, net 42,935 47,494 (10)
Other assets 27,354 33,313 (18)
------------- -------------
Total assets $ 6,157,499 $ 6,098,005 1
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Non-interest-bearing demand deposits $ 690,053 $ 674,791 2
Interest-bearing deposits:
NOW deposits 240,679 253,767 (5)
Money market deposits 489,981 588,526 (17)
Savings deposits 386,585 418,041 (8)
Time deposits under $100 626,851 539,811 16
Time deposits of $100 or more 2,423,834 2,120,201 14
------------- -------------
Total deposits 4,857,983 4,595,137 6
============= =============
Federal funds purchased and securities sold
under agreement to repurchase 88,000 91,000 (3)
Advances from the Federal Home Loan Bank 300,000 545,000 (45)
Other borrowings 39,694 17,116 132
Junior subordinated notes 53,961 53,916 0
Acceptances outstanding 21,340 14,368 49
Minority interest in consolidated subsidiaries 8,501 8,620 (1)
Other liabilities 36,580 56,855 (36)
------------- -------------
Total liabilities 5,406,059 5,382,012 0
------------- -------------
Commitments and contingencies - - -
------------- -------------
Total stockholders' equity 751,440 715,993 5
------------- -------------
Total liabilities and stockholders' equity $ 6,157,499 $ 6,098,005 1
============= =============
Book value per share $ 14.99 $ 14.13 6
Number of shares outstanding 50,136,888 50,677,896
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CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
Three months ended September 30, Nine months ended September 30,
-------------------------------- --------------------------------
(In thousands, except share and per share data) 2005 2004 2005 2004
- ------------------------------------------------------ -------------- --------------- -------------- --------------
INTEREST INCOME
Interest on loans $ 74,468 $ 51,022 $ 202,989 $ 144,251
Interest on securities available-for-sale - taxable 13,464 17,696 47,624 52,355
Interest on securities available-for-sale - nontaxable 884 988 2,828 2,808
Dividend income 201 91 504 291
Interest on federal funds sold and securities
purchased under agreements to resell 9 25 220 102
Interest on deposits with banks 101 37 281 102
-------------------------------- --------------------------------
Total interest income 89,127 69,859 254,446 199,909
-------------------------------- --------------------------------
INTEREST EXPENSE
Time deposits of $100 or more 17,349 8,230 40,203 22,855
Other deposits 8,033 4,439 23,489 12,104
Other borrowed funds 3,687 2,344 12,744 6,838
-------------------------------- --------------------------------
Total interest expense 29,069 15,013 76,436 41,797
-------------------------------- --------------------------------
Net interest income before provision (reversal)
for loan losses 60,058 54,846 178,010 158,112
Provision (reversal) for loan losses (1,000) - (500) -
-------------------------------- --------------------------------
Net interest income after provision (reversal)
for loan losses 61,058 54,846 178,510 158,112
-------------------------------- --------------------------------
NON-INTEREST INCOME
Securities gains (losses), net 169 (257) 1,291 961
Letters of credit commissions 1,057 1,232 3,090 3,457
Depository service fees 1,450 1,591 4,348 4,887
Gains on sale of premises and equipment - 24 958 24
Other operating income 3,177 2,125 7,618 6,307
-------------------------------- --------------------------------
Total non-interest income 5,853 4,715 17,305 15,636
-------------------------------- --------------------------------
NON-INTEREST EXPENSE
Salaries and employee benefits 13,393 11,998 38,834 36,566
Occupancy expense 2,433 2,102 6,610 6,035
Computer and equipment expense 1,672 1,412 5,247 5,262
Professional services expense 2,200 1,723 5,586 4,948
FDIC and State assessments 249 245 745 778
Marketing expense 483 568 1,638 1,833
Other real estate owned expense (income) 92 27 (10) 543
Operations of affordable housing investments 1,025 681 2,990 2,076
Amortization of core deposit intangibles 1,404 1,333 4,550 4,000
Other operating expense 2,038 1,848 5,606 5,824
-------------------------------- --------------------------------
Total non-interest expense 24,989 21,937 71,796 67,865
-------------------------------- --------------------------------
Income before income tax expense 41,922 37,624 124,019 105,883
Income tax expense 15,237 14,426 46,640 40,638
-------------------------------- --------------------------------
Net income 26,685 23,198 77,379 65,245
-------------------------------- --------------------------------
Other comprehensive income (loss), net of tax (8,848) 12,146 (13,666) (4,640)
-------------------------------- --------------------------------
Total comprehensive income (loss) $ 17,837 $ 35,344 $ 63,713 $ 60,605
================================ ================================
Net income per common share:
Basic $ 0.53 $ 0.47 $ 1.53 $ 1.31
Diluted $ 0.53 $ 0.46 $ 1.52 $ 1.30
Cash dividends paid per common share $ 0.09 $ 0.07 $ 0.27 $ 0.21
Basic average common shares outstanding 50,128,113 49,829,314 50,441,988 49,754,594
Diluted average common shares outstanding 50,540,463 50,476,343 50,870,362 50,327,490
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CATHAY GENERAL BANCORP
AVERAGE BALANCES - SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)
For the three months ended,
---------------------------------------------------------------------------------
(In thousands) September 30, 2005 September 30, 2004 June 30, 2005
- -------------------------------------------- ------------------------- ------------------------- -------------------------
Average Average Average
Average Yield/Rate Average Yield/Rate Average Yield/Rate
Balance (1)(2) Balance (1)(2) Balance (1)(2)
---------- ------------ ---------- ------------ ---------- ------------
INTEREST-EARNING ASSETS
Federal funds sold and securities purchased
under agreements to resell $ 1,084 3.29% $ 8,810 1.13% $ 25,730 2.95%
Taxable securities available-for-sale 1,293,656 4.13% 1,646,814 4.30% 1,481,568 4.32%
Tax-exempt securities available-for-sale (1) 101,784 6.38% 108,495 5.70% 104,517 6.62%
Loans and leases (2) 4,217,559 7.00% 3,565,067 5.69% 4,063,720 6.64%
Deposits with banks 8,918 4.49% 4,866 3.02% 9,178 4.47%
---------- ---------- ----------
Total interest-earning assets $5,623,001 6.33% $5,334,052 5.25% $5,684,713 6.01%
---------- ---------- ----------
INTEREST-BEARING LIABILITIES
Interest-bearing demand deposits $ 756,822 1.15% $ 864,847 0.62% $ 781,345 0.98%
Savings deposits 384,064 0.55% 425,175 0.30% 398,181 0.40%
Time deposits 3,022,360 2.97% 2,570,964 1.70% 2,924,412 2.60%
---------- ---------- ----------
Total interest-bearing deposits $4,163,246 2.42% $3,860,986 1.31% $4,103,938 2.08%
Other borrowed funds 385,714 3.79% 499,204 1.87% 535,030 3.16%
---------- ---------- ----------
Total interest-bearing liabilities 4,548,960 2.54% 4,360,190 1.37% 4,638,968 2.20%
Non-interest-bearing demand deposits 704,934 669,797 688,582
---------- ---------- ----------
Total deposits and other borrowed funds $5,253,894 $5,029,987 $5,327,550
---------- ---------- ----------
Total average assets $6,071,519 $5,778,209 $6,142,639
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Total average stockholders' equity $ 744,368 $ 655,309 $ 733,666
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For the nine months ended,
----------------------------------------------------------
(In thousands) September 30, 2005 September 30, 2004
- --------------------------------------------- --------------------------- ---------------------------
Average Average
Average Yield/Rate Average Yield/Rate
Balance (1)(2) Balance (1)(2)
------------ ------------ ------------ ------------
INTEREST-EARNING ASSETS
Federal funds sold and securities purchased
under agreements to resell $ 10,125 2.91% $ 16,425 0.83%
Taxable securities available-for-sale 1,479,096 4.31% 1,655,238 4.25%
Tax-exempt securities available-for-sale (1) 104,856 6.39% 104,683 5.67%
Loans and leases 4,066,114 6.67% 3,458,690 5.57%
Deposits with banks 8,702 4.32% 5,280 2.58%
------------ ------------
Total interest-earning assets $ 5,668,893 6.04% $ 5,240,316 5.14%
------------ ------------
INTEREST-BEARING LIABILITIES
Interest-bearing demand deposits $ 789,475 1.01% $ 889,317 0.59%
Savings deposits 396,852 0.44% 421,917 0.30%
Time deposits 2,886,329 2.61% 2,489,704 1.61%
------------ ------------
Total interest-bearing deposits $ 4,072,656 2.09% $ 3,800,938 1.23%
Other borrowed funds 537,762 3.17% 495,931 1.84%
------------ ------------
Total interest-bearing liabilities 4,610,418 2.22% 4,296,869 1.30%
Non-interest-bearing demand deposits 695,378 654,911
------------ ------------
Total deposits and other borrowed funds $ 5,305,796 $ 4,951,780
------------ ------------
Total average assets $ 6,120,783 $ 5,681,833
Total average stockholders' equity $ 734,294 $ 642,531
------------ ------------
(1) 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%.
(2) Yields and amounts of interest earned include net loan fees. Non-accrual
loans are included in the average balance.