Exhibit 99.1
CATHAY GENERAL BANCORP ANNOUNCES RECORD EARNINGS OF $27.3 MILLION, OR
$0.54 PER SHARE, IN FIRST QUARTER 2006
LOS ANGELES, Calif., April 20 /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 2006.
STRONG FINANCIAL PERFORMANCE
First Quarter 2006 First Quarter 2005
------------------ ------------------
Net income $ 27.3 million $ 25.0 million
Basic earnings per share $ 0.54 $ 0.49
Diluted earnings per share $ 0.54 $ 0.49
Return on average assets 1.67% 1.65%
Return on average stockholders' equity 14.06% 14.07%
Efficiency ratio 36.07% 35.26%
FIRST QUARTER HIGHLIGHTS
* First quarter earnings increased $2.4 million, or 9.5%, compared to
the same quarter a year ago.
* Fully diluted earnings per share reached $0.54, increasing 10.2%
compared to the same quarter a year ago.
* Return on average assets was 1.67% for the quarter ended March 31,
2006, compared to 1.70% for the quarter ended December 31, 2005 and
compared to 1.65% for the same quarter a year ago.
* Return on average stockholders' equity was 14.06% for the quarter
ended March 31, 2006, compared to 13.93% for the quarter ended
December 31, 2005, and compared to 14.07% for the same quarter a year
ago.
* Gross loans increased from December 31, 2005, by $357.2 million, or
7.7%, for the quarter to $5.0 billion at March 31, 2006.
* On February 21, 2006, the Company announced an agreement with Great
Eastern Bank to acquire all outstanding shares of Great Eastern Bank.
The Company has acquired 84.1% of the shares of Great Eastern Bank
through its tender offer which closed on April 7, 2006.
* On March 31, 2006, Cathay Bank announced an agreement to buy a 20%
stake in First Sino Bank, a Shanghai-based joint venture bank, for an
estimated purchase price of $52.2 million. This investment is subject
to approvals of banking regulatory agencies in both China and the
United States and other customary closing conditions.
"We are pleased to report another record quarter of earnings while the
Company announced two important acquisitions. Strong organic loan growth and a
stable net interest margin were the main factors that contributed to the record
first quarter results," commented Dunson Cheng, Chairman of the Board, Chief
Executive Officer, and President of the Company.
"We expect the integration of Great Eastern Bank to be completed during the
third quarter. We are pleased by the level of retention of customers and key
officers to date," said Peter Wu, Executive Vice Chairman and Chief Operating
Officer.
"While a slowdown in loan demand may occur later in 2006, we are still
optimistic that 2006 should be another record year for Cathay General Bancorp,"
concluded Dunson Cheng.
INCOME STATEMENT REVIEW
Net interest income before provision for loan losses
Net interest income before provision for loan losses increased to $65.1
million during the first quarter of 2006, or 10.9% higher than the $58.8 million
during the same quarter a year ago. The increase was due primarily to the strong
growth in loans.
The net interest margin, on a fully taxable-equivalent basis, was 4.33% for
the first quarter of 2006. The net interest margin decreased one basis point
from 4.34% in the fourth quarter of 2005 and increased 11-basis points from
4.22% in the first quarter of 2005. The year to year increase in the net
interest margin was primarily as a result of the loan growth, the decrease in
securities as a percentage of earning assets, and the increases in short term
interest rates.
For the first quarter of 2006, the yield on average interest-earning assets
was 6.94% on a fully taxable-equivalent basis, and the cost of funds on average
interest-bearing liabilities equaled 3.18%. In comparison, for the first quarter
of 2005, the yield on average interest-earning assets was 5.78% and cost of
funds on average interest-bearing liabilities equaled 1.91%. The interest spread
decreased primarily due to the increase in wholesale borrowing rates.
Provision for loan losses
The provision for loan losses was $1.5 million for the first quarter of
2006 compared to $1.0 million provision for loan losses for the first quarter of
2005 and to no provision for the fourth quarter of 2005. The provision for loan
losses was based on the review of the adequacy of the allowance for loan losses
at March 31, 2006. 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,
------------------------------------------
March 31, March 31, December 31,
(Dollars in thousands) 2006 2005 2005
- ----------------------------------------- ------------ ------------ ------------
Charge-offs $ 265 $ 3,661 $ 1,284
Recoveries 241 1,320 455
Net Charge-offs (Recoveries) $ 24 $ 2,341 $ 829
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 $5.1 million for the first quarter of 2006, a decrease of $938,000,
or 15.6%, compared to the non-interest income of $6.0 million for the first
quarter of 2005.
Service charges on deposit accounts decreased $256,000, or 16.9%, from $1.5
million in the first quarter of 2005 to $1.3 million in the first quarter of
2006 due primarily to the reclassification of certain wire transfer fees from
depository service fees to other operating income in 2006.
Other operating income increased $1.0 million, or 48.8%, from $2.1 million
in the first quarter of 2005 to $3.2 million in the first quarter of 2006
primarily due to increases in warrant gains of $522,000, wealth management
commissions of $267,000, and the reclassification of wire transfer fees as
discussed above.
The above increases were offset by the decrease of securities gains and the
decrease of gain on sale of premises and equipment. For the first quarter of
2006, the Company recorded no gain on sale of premises and equipment compared to
net gain on sale of premises and equipment of $958,000 for the same quarter in
2005. The Company also recorded $422,000 of securities losses in the first
quarter of 2006 compared to $377,000 of securities gains recorded in the same
quarter a year ago.
Non-interest expense
Non-interest expense increased $2.5 million, or 10.9%, to $25.3 million in
the first quarter of 2006 compared to the same quarter a year ago primarily due
to increases in salaries and employee benefits expenses, professional service
expenses, marketing expenses, other real estate owned expenses and operations of
affordable housing investments. The efficiency ratio was 36.07% for the first
quarter of 2006 compared to 35.26% in the year ago quarter and 37.14% for the
fourth quarter of 2005.
Salaries and employee benefits increased $1.6 million, or 13.0%, from $12.4
million in the first quarter of 2005 to $14.0 million in the first quarter of
2006 due primarily to the increased salaries and bonus of $1.1 million and net
stock option compensation expense of $695,000 offset by increased deferred loan
cost of $398,000. On January 1, 2006, the Company adopted Statement of Financial
Accounting Standards No. 123 (revised 2004), "Share-Based Payment" (SFAS No.
123R). This resulted in amortization expense for stock options of $1.83 million
which was partially offset by the cumulative effect of the change in the
accounting principle of $138,000 to reflect estimated forfeitures for prior
periods for a net stock option compensation expense of $1.70 million for the
quarter. Professional services expenses increased $121,000, or 8.0%, from $1.5
million in the first quarter of 2005 to $1.6 million in the first quarter of
2006 due primarily to increases in legal expenses. Marketing expenses increased
$234,000, or 50.8%, in the first quarter of 2006 compared to the same quarter a
year ago mainly due to increases of $202,000 in charitable contributions. OREO
expenses increased $189,000 due to a gain of $155,000 from sale of an OREO
recorded in the first quarter of 2005. Expenses from operation of affordable
housing investments that qualified for low-income housing tax credits increased
$280,000, or 27.5%, to $1.3 million compared to $1.0 million in the same quarter
a year ago as a result of additional investments in affordable housing being
made in 2005.
Income taxes
The effective tax rate was 37.0% for the first quarter of 2006, compared to
39.0% for the same quarter a year ago and 37.5% for the full year 2005. The
decrease in the effective tax rate was primarily due to the increase in low
income housing tax credits.
As previously disclosed, 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
March 31, 2006, 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 $483.7 million, or 7.6%, to $6.9 billion at March
31, 2006 from year-end 2005 of $6.4 billion. The increase in total assets was
represented primarily by loan growth and investment securities increase funded
by growth of deposits and borrowings.
The growth of gross loans to $5.0 billion as of March 31, 2006, from $4.6
billion as of December 31, 2005, represents an increase of $357.2 million, or
7.7%, due primarily to increases in commercial mortgage loans. The growth in
gross loans during the fourth quarter of 2005 was $277.8 million, or 6.4%.
The changes in the loan composition from December 31, 2005, are presented
below:
Type of Loans: March 31, 2006 December 31, 2005 % Change
- ----------------------------------------- ----------------- ----------------- ------------
(Dollars in thousands)
Commercial $ 1,054,767 $ 1,110,401 (5)
Residential mortgage 337,956 326,249 4
Commercial mortgage 2,909,064 2,590,752 12
Equity lines 105,150 105,040 0
Real estate construction 581,272 500,027 16
Installment 15,024 13,662 10
Other 1,819 1,684 8
Gross loans and leases $ 5,005,052 $ 4,647,815 8
Allowance for loan losses (61,727) (60,251) 2
Unamortized deferred loan fees (13,565) (12,733) 7
Total loans and leases, net $ 4,929,760 $ 4,574,831 8
Total deposits increased $108.1 million, or 2.2%, to $5.0 billion from
December 31, 2005, of $4.9 billion. The changes in the deposit composition from
December 31, 2005, are presented below:
Deposits: March 31, 2006 December 31, 2005 % Change
- ----------------------------------------- ----------------- ----------------- ------------
(Dollars in thousands)
Non-interest-bearing demand $ 691,883 $ 726,722 (5)
NOW 241,126 240,885 0
Money market 592,197 523,076 13
Savings 347,575 364,793 (5)
Time deposits under $100,000 719,833 641,411 12
Time deposits of $100,000 or more 2,431,850 2,419,463 1
Total deposits $ 5,024,464 $ 4,916,350 2
At March 31, 2006, brokered deposits totaled $74.8 million compared to no
brokered deposits at December 31, 2005.
Advances from the Federal Home Loan Bank increased $195.0 million to $410.0
million at March 31, 2006, compared to $215.0 million at December 31, 2005.
Securities sold under agreement to repurchase increased from $200.0 million at
December 31, 2005, to $400.0 million at March 31, 2006. Federal funds purchased
decreased $59.0 million to $60.0 million at March 31, 2006, from $119.0 million
at December 31, 2005.
ASSET QUALITY REVIEW
Non-performing assets to gross loans was 0.34% at March 31, 2006 compared
to 0.39% at December 31, 2005. Total non-performing assets increased $4.0
million to $21.9 million at March 31, 2006, compared with $17.9 million at
December 31, 2005, primarily due to a $4.6 million increase in other real estate
owned offset by a $0.8 million decrease in accruing loans past due 90 days or
more. The allowance for loan losses amounted to $61.7 million at March 31, 2006,
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 1.23% of period-end gross loans and 358% of non-performing
loans at March 31, 2006. The comparable ratios were 1.30% of gross loans and
337% of non-performing loans at December 31, 2005. Results of the changes to the
Company's non-performing assets and troubled debt restructurings are highlighted
below:
(Dollars in thousands) March 31, 2006 December 31, 2005 % Change
- ----------------------------------- ----------------- ----------------- -----------------
Non-performing assets
Accruing loans past due
90 days or more $ 1,353 $ 2,106 (36)
Non-accrual loans 15,899 15,799 1
Total non-performing loans 17,252 17,905 (4)
Other real estate owned 4,630 0
Total non-performing assets $ 21,882 $ 17,905 22
Troubled debt restructurings $ 2,747 $ 3,088 (11)
CAPITAL ADEQUACY REVIEW
At March 31, 2006, the Tier 1 risk-based capital ratio of 10.26%, total
risk-based capital ratio of 11.31%, 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 Tier 1 risk-based capital ratio equal to or
greater than six percent, a total risk-based capital ratio equal to or greater
than ten percent, and a Tier 1 leverage capital ratio equal to or greater than
five percent. At December 31, 2005, the Company's Tier 1 risk-based capital
ratio was 10.61%, the total risk-based capital ratio was 11.72%, and Tier 1
leverage capital ratio was 9.80%. No shares were repurchased during the first
quarter of 2006. At March 31, 2006, 451,703 shares remain under the Company's
latest stock buyback authorization which was announced on March 18, 2005.
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,
nine branches in New York State, one in Massachusetts, one in Houston, Texas,
two in Washington State, and representative offices in Taipei, Hong Kong, and
Shanghai. Cathay Bank's website is found athttp://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 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, including the formation of a real estate investment trust; general
economic or business conditions in California and other regions where the 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, 2005, 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.
CATHAY GENERAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
Three months ended March 31,
(Dollars in thousands, --------------------------------------
except per share data) 2006 2005 % Change
- -------------------------------------- ---------- ---------- ----------
FINANCIAL PERFORMANCE
Net interest income before
provision for loan losses $ 65,141 $ 58,764 11
Provision for loan losses 1,500 1,000 50
Net interest income after
provision for loan losses 63,641 57,764 10
Non-interest income 5,075 6,013 (16)
Non-interest expense 25,326 22,843 11
Income before income tax expense 43,390 40,934 6
Income tax expense 16,054 15,974 1
Net income $ 27,336 $ 24,960 10
Net income per common share:
Basic $ 0.54 $ 0.49 10
Diluted $ 0.54 $ 0.49 10
Cash dividends paid per common share $ 0.09 $ 0.09 --
SELECTED RATIOS
Return on average assets 1.67% 1.65% 1
Return on average stockholders'
equity 14.06% 14.07% (0)
Efficiency ratio 36.07% 35.26% 2
Dividend payout ratio 16.53% 18.27% (10)
YIELD ANALYSIS (Fully taxable
equivalent)
Total interest-earning assets 6.94% 5.78% 20
Total interest-bearing liabilities 3.18% 1.91% 66
Net interest spread 3.76% 3.87% (3)
Net interest margin 4.33% 4.22% 3
March 31, March 31, December 31,
CAPITAL RATIOS 2006 2005 2005
- -------------------------------------- ---------- ---------- ------------
Tier 1 risk-based capital ratio 10.26% 10.95% 10.61%
Total risk-based capital ratio 11.31% 12.22% 11.72%
Tier 1 leverage capital ratio 9.61% 9.00% 9.80%
CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, December 31,
2006 2005 % Change
------------- ------------- --------
(In thousands, except share and
per share data)
Assets
Cash and due from banks $ 118,908 $ 109,275 9
Securities available-for-sale
(amortized cost of $1,360,187
at March 31, 2006 and $1,240,308
at December 31, 2005) 1,325,516 1,217,438 9
Loans 5,005,052 4,647,815 8
Less: Allowance for loan losses (61,727) (60,251) 2
Unamortized deferred
loan fees, net (13,565) (12,733) 7
Loans, net 4,929,760 4,574,831 8
Federal Home Loan Bank stock 30,045 29,698 1
Other real estate owned, net 4,630 -- 100
Affordable housing investments, net 78,599 80,211 (2)
Premises and equipment, net 29,971 30,290 (1)
Customers' liability on acceptances 16,690 16,153 3
Accrued interest receivable 26,369 24,767 6
Goodwill 239,527 239,527 --
Other intangible assets, net 40,083 41,508 (3)
Other assets 41,116 33,805 22
Total assets $ 6,881,214 $ 6,397,503 8
Liabilities and Stockholders' Equity
Deposits
Non-interest-bearing demand
deposits $ 691,883 $ 726,722 (5)
Interest-bearing deposits:
NOW deposits 241,126 240,885 0
Money market deposits 592,197 523,076 13
Savings deposits 347,575 364,793 (5)
Time deposits under $100,000 719,833 641,411 12
Time deposits of $100,000
or more 2,431,850 2,419,463 1
Total deposits 5,024,464 4,916,350 2
Federal funds purchased 60,000 119,000 (50)
Securities sold under agreement
to repurchase 400,000 200,000 100
Advances from the Federal Home
Loan Bank 410,000 215,000 91
Other borrowings from financial
institutions 20,000 20,000 --
Other borrowings from affordable
housing investments 20,827 20,507 2
Junior subordinated notes 53,991 53,976 0
Acceptances outstanding 16,690 16,153 3
Minority interest in consolidated
subsidiaries 8,500 8,500 --
Other liabilities 73,399 54,400 35
Total liabilities 6,087,871 5,623,886 8
Commitments and contingencies -- -- --
Total stockholders' equity 793,343 773,617 3
Total liabilities and
stockholders' equity $ 6,881,214 $ 6,397,503 8
Book value per share $ 15.78 $ 15.41 2
Number of common stock shares
outstanding 50,281,910 50,191,089
CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)
Three months ended March 31,
-------------------------------
2006 2005
-------------- --------------
(In thousands, except share
and per share data)
INTEREST AND DIVIDEND INCOME
Loan receivable, including loan fees $ 90,086 $ 61,254
Securities available-for-sale -- taxable 13,146 17,932
Securities available-for-sale -- nontaxable 722 983
Federal Home Loan Bank stock 348 300
Agency preferred stock 209 100
Federal funds sold and securities purchased
under agreements to resell 28 22
Deposits with banks 67 77
Total interest and dividend income 104,606 80,668
INTEREST EXPENSE
Time deposits of $100,000 or more 21,438 10,190
Other deposits 9,893 6,868
Securities sold under agreements to repurchase 2,513 14
Advances from Federal Home Loan Bank 3,799 3,822
Junior subordinated notes 1,041 751
Short-term borrowings 781 259
Total interest expense 39,465 21,904
Net interest income before provision for
loan losses 65,141 58,764
Provision for loan losses 1,500 1,000
Net interest income after provision for
loan losses 63,641 57,764
NON-INTEREST INCOME
Securities (losses) gains, net (422) 377
Letters of credit commissions 1,069 1,035
Depository service fees 1,255 1,511
Gains on sale of premises and equipment -- 958
Other operating income 3,173 2,132
Total non-interest income 5,075 6,013
NON-INTEREST EXPENSE
Salaries and employee benefits 14,040 12,421
Occupancy expense 2,080 2,009
Computer and equipment expense 1,610 1,749
Professional services expense 1,641 1,520
FDIC and State assessments 249 252
Marketing expense 695 461
Other real estate owned expense (income) 85 (104)
Operations of affordable housing investments 1,299 1,019
Amortization of core deposit intangibles 1,401 1,742
Other operating expense 2,226 1,774
Total non-interest expense 25,326 22,843
Income before income tax expense 43,390 40,934
Income tax expense 16,054 15,974
Net income 27,336 24,960
Other comprehensive loss, net of tax (6,839) (13,897)
Total comprehensive income $ 20,497 $ 11,063
Net income per common share:
Basic $ 0.54 $ 0.49
Diluted $ 0.54 $ 0.49
Cash dividends paid per common share $ 0.09 $ 0.09
Basic average common shares outstanding 50,226,768 50,706,890
Diluted average common shares outstanding 50,703,077 51,209,052
CATHAY GENERAL BANCORP
AVERAGE BALANCES -- SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)
For the three months ended,
--------------------------------------------------------------
March 31, 2006 March 31, 2005
----------------------------- -----------------------------
Average Average
(In thousands) Average Yield/Rate Average Yield/Rate
Interest-earning assets Balance (1)(2) Balance (1)(2)
- -------------------------------- ------------- ------------- ------------- -------------
Loans and leases (1) $ 4,838,651 7.55% $ 3,913,722 6.35%
Taxable securities
available-for-sale 1,161,798 4.59% 1,637,602 4.44%
Tax-exempt securities
available-for-sale (2) 86,755 6.54% 108,340 6.18%
Federal Home Loan Bank stock 29,756 4.74% 28,554 4.26%
Federal funds sold and
securities purchased
under agreements to resell 2,622 4.33% 3,589 2.44%
Deposits with banks 19,340 1.41% 8,001 3.93%
Total interest-earning
assets $ 6,138,922 6.94% $ 5,699,808 5.78%
Interest-bearing liabilities
Interest-bearing demand
deposits $ 242,462 0.95% $ 247,076 0.41%
Money market 575,759 2.30% 584,000 1.11%
Savings deposits 357,795 0.77% 408,580 0.37%
Time deposits 3,095,301 3.51% 2,708,770 2.22%
Total interest-bearing
deposits $ 4,271,317 2.97% $ 3,948,426 1.75%
Federal funds purchased 45,028 4.53% 38,239 2.50%
Securities sold under
agreements to repurchase 280,000 3.64% 2,600 2.18%
Other borrowed funds 438,895 4.73% 655,112 2.85%
Total interest-bearing
liabilities 5,035,240 3.18% 4,644,377 1.91%
Non-interest-bearing demand
deposits 717,599 692,147
Total deposits and other
borrowed funds $ 5,752,839 $ 5,336,524
Total average assets $ 6,628,833 $ 6,149,260
Total average stockholders'
equity $ 788,565 $ 719,235
December 31, 2005
-------------------------------
Average
Balance Average
(In thousands) (1)(2) Yield/Rate
- ------------------------------------------------- -------------- ------------
Interest-earning assets
Loans and leases (1) $ 4,459,628 7.31%
Taxable securities available-for-sale 1,156,812 4.32%
Tax-exempt securities available-for-sale (2) 97,594 6.54%
Federal Home Loan Bank stock 29,528 4.55%
Federal funds sold and securities
purchased under agreements to resell 1,712 3.94%
Deposits with banks 11,933 2.93%
Total interest-earning assets $ 5,757,207 6.67%
Interest-bearing liabilities
Interest-bearing demand deposits $ 241,513 0.86%
Money market 532,372 1.92%
Savings deposits 372,789 0.73%
Time deposits 3,057,072 3.26%
Total interest-bearing deposits $ 4,203,746 2.73%
Federal funds purchased 50,940 4.04%
Securities sold under agreements to
repurchase 70,652 3.44%
Other borrowed funds 345,337 4.36%
Total interest-bearing liabilities 4,670,675 2.87%
Non-interest-bearing demand deposits 726,348
Total deposits and other borrowed funds $ 5,397,023
Total average assets $ 6,223,906
Total average stockholders' equity $ 760,585
(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%.
SOURCE Cathay General Bancorp
-0- 04/20/2006
/CONTACT: Heng W. Chen of Cathay General Bancorp, +1-213-625-4752/
/First Call Analyst: /
/FCMN Contact: Georgia_Lo@cathaybank.com /
/Web site: http://www.cathaybank.com /