Cathay General Bancorp Announces Net Income of $28.3 Million, or $0.31 Per Share, For the Fourth Quarter and Net Income of

  Cathay General Bancorp Announces Net Income of $28.3 Million, or $0.31 Per
 Share, For the Fourth Quarter and Net Income of $117.4 Million For the Year
                           Ended December 31, 2012

PR Newswire

LOS ANGELES, Jan. 23, 2013

LOS ANGELES, Jan. 23, 2013 /PRNewswire/ --Cathay General Bancorp (the
"Company"), (NASDAQ: CATY), the holding company for Cathay Bank (the "Bank"),
today announced results for the fourth quarter and for the year ended December
31, 2012.

FINANCIAL PERFORMANCE

                          Three months ended December  Year ended December 31,
                          31,
                          2012            2011         2012          2011
Net income                $28.3           $27.7        $117.4        $100.2
                          million         million      million       million
Net income available to   $24.2           $23.6        $101.0        $83.7
common stockholders       million         million      million       million
Basic earnings per common $0.31           $0.30        $1.28         $1.06
share
Diluted earnings per      $0.31           $0.30        $1.28         $1.06
common share
Return on average assets  1.06%           1.05%        1.11%         0.94%
Return on average total   6.97%           7.33%        7.48%         6.78%
stockholders' equity
Efficiency ratio          53.11%          49.82%       52.37%        50.90%

FULL YEAR HIGHLIGHTS

  oNet income increased $17.2 million, or 17.3%, to $117.4 million for the
    year ended 2012 compared to net income of $100.2 million for the year
    ended 2011.
  oMemorandum of Understanding of Cathay Bank was lifted by the CDFI and FDIC
    as of November 7, 2012.
  oStrong growth in loans – Commercial loans increased $258.8 million, or
    13.9%, during 2012, to $2.1 billion at December 31, 2012, compared to $1.9
    billion at December 31, 2011. Residential mortgage loans increased
    $174.0 million, or 17.9%, to $1.1 billion at December 31, 2012, from
    $972.3 million at December 31, 2011.
  oDecrease in non-performing assets – Non-performing assets decreased $149.7
    million, or 49.8%, to $150.9 million at December 31, 2012, from $300.6
    million at December 31, 2011.
  oNet charge-offs decreased $51.5 million, or 77.9%, to $14.7 million for
    the year ended 2012 from $66.2 million for the year ended 2011.

"Our loan growth for the fourth quarter was solid at $169.2 million, or a 9%
annualized rate and included annualized growth in commercial real estate loans
of 7%," commented Dunson Cheng, Chairman of the Board, Chief Executive
Officer, and President of the Company.

"With the lifting of the Bank MOU, we expect to open a number of branches
during the next two years in our existing regions to better serve our
customers" said Peter Wu, Executive Vice Chairman and Chief Operating Officer.

"We expect to maintain steady loan growth in 2013 and are working diligently
to be able to repurchase in installments during 2013 the preferred shares
issued under the TARP Capital Purchase Program," concluded Dunson Cheng.

INCOME STATEMENT REVIEW

Net income available to common stockholders for the quarter ended December 31,
2012, was $24.2 million, an increase of $592,000, or 2.5%, compared to a net
income available to common stockholders of $23.6 million for the same quarter
a year ago. Diluted earnings per share available to common stockholders for
the quarter ended December 31, 2012, was $0.31 compared to $0.30 for the same
quarter a year ago due primarily to increases in gains on sale of securities,
increases in net interest income, decreases in the provision for credit
losses, which were partially offset by increases in costs associated with debt
redemption and increases in income tax expense.

Return on average stockholders' equity was 6.97% and return on average assets
was 1.06% for the quarter ended December 31, 2012, compared to a return on
average stockholders' equity of 7.33% and a return on average assets of 1.05%
for the same quarter a year ago.

Net interest income before provision for credit losses

Net interest income before provision for credit losses increased $1.8 million,
or 2.2%, to $81.1 million during the fourth quarter of 2012 compared to $79.3
million during the same quarter a year ago. The increase was due primarily to
the increase in loans and the prepayment and maturity of FHLB advances and
securities sold under agreements to repurchase.

The net interest margin, on a fully taxable-equivalent basis, was 3.28% for
the fourth quarter of 2012, compared to 3.26% for the third quarter of 2012,
and compared to 3.28% for the fourth quarter of 2011. The slight increase in
the interest margin from last quarter was due primarily to the increase in
loans.

For the fourth quarter of 2012, the yield on average interest-earning assets
was 4.25%, on a fully taxable-equivalent basis, the cost of funds on average
interest-bearing liabilities was 1.25%, and the cost of interest bearing
deposits was 0.65%. In comparison, for the fourth quarter of 2011, the yield
on average interest-earning assets was 4.58%, on a fully taxable-equivalent
basis, the cost of funds on average interest-bearing liabilities was 1.60%,
and the cost of interest bearing deposits was 0.92%. 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, increased 2
basis points to 3.00% for the quarter ended December 31, 2012, from 2.98% for
the same quarter a year ago, primarily for the reasons discussed above.

Provision for credit losses

There was no change in the provision for credit losses for the fourth quarter
of 2012 compared to charge of $2.0 million in the fourth quarter of 2011. The
provision for credit losses was based on the review of the adequacy of the
allowance for loan losses at December 31, 2012. The provision or reversal for
credit losses represents the charge against or benefit toward 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,
including unfunded commitments. The following table summarizes the
charge-offs and recoveries for the periods indicated:

                       Three months ended       Year ended December 31,
                       December 31,
                       2012        2011         2012           2011
                       (In thousands)
Charge-offs:
 Commercial loans     $ 3,228    $   530    $ 17,707      $ 11,745
 Construction loans-  -           2,452        391            20,801
residential
 Construction loans-  -           654          774            16,699
other
 Real estate loans    1,265       3,208        13,616         27,327
(1)
 Real estate- land    177         46           278            1,054
loans
 Installment and      -           -            25             -
other loans
 Total             4,670       6,890        32,791         77,626
charge-offs
Recoveries:
 Commercial loans     719         206          1,949          1,774
 Construction loans-  76          141          3,788          3,808
residential
 Construction loans-  452         36           2,365          665
other
 Real estate loans    2,036       1,874        8,820          4,539
(1)
 Real estate- land    24          3            1,202          621
loans
 Installment and      -           -            3              -
other loans
 Total recoveries  3,307       2,260        18,127         11,407
Net charge-offs        $ 1,363    $ 4,630     $ 14,664      $ 66,219
(1) Real estate loans include commercial mortgage loans, residential mortgage
loans and equity lines.

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 $12.2
million for the fourth quarter of 2012, an increase of $3.2 million, or 35.8%,
compared to $9.0 million for the fourth quarter of 2011. The increase in
non-interest income in the fourth quarter of 2012 was primarily due to
increases of $3.9 million from gains on sale of securities which were
partially offset by an $899,000 decrease in foreign exchange income. 

Non-interest expense

Non-interest expense increased $5.5 million, or 12.6%, to $49.5 million in the
fourth quarter of 2012 compared to $44.0 million in the same quarter a year
ago. The efficiency ratio was 53.11% in the fourth quarter of 2012 compared
to 49.82% for the same quarter a year ago.

Prepayment penalties increased $4.2 million to $5.9 million in the fourth
quarter of 2012 compared to $1.7 million in the same quarter a year ago. The
Company prepaid securities sold under agreements to repurchase of $100.0
million in the fourth quarter of 2012. Salaries and employee benefits
increased $1.5 million, or 8.2%, in the fourth quarter of 2012 compared to the
same quarter a year ago primarily due the hiring of new employees as well as
the addition of temporary employees related to the upcoming core system
conversion. Partially offsetting the above increases was an $845,000, or
32.1%, decrease in FDIC and State assessments.

Income taxes

The effective tax rate for the fourth quarter of 2012 was 35.1% compared to
34.3% in the fourth quarter of 2011. The effective tax rate includes the
impact of the utilization of low income housing tax credits and the
recognition of other tax credits.

BALANCE SHEET REVIEW

Gross loans, excluding loans held for sale, were $7.43 billion at December 31,
2012, an increase of $369.9 million, or 5.2%, from $7.06 billion at December
31, 2011, primarily due to an increase of $258.8 million, or 13.9%, in
commercial loans and an increase of $174.0 million, or 17.9%, in residential
mortgage loans offset by a decrease of $56.4 million, or 23.8%, in real estate
construction loans and a decrease of $20.9 million, or 9.7%, in equity lines.
The changes in loan composition from December 31, 2011, are presented below:

Type of Loans:                December 31, 2012  December 31, 2011  % Change
                              (Dollars in thousands)
Commercial loans              $             $             14
                              2,127,107         1,868,275
Residential mortgage loans    1,146,230          972,262            18
Commercial mortgage loans     3,768,452          3,748,897          1
Equity lines                  193,852            214,707            (10)
Real estate construction      180,950            237,372            (24)
loans
Installment & other loans     12,556             17,699             (29)
Gross loans                   $             $             5
                              7,429,147         7,059,212
Allowance for loan losses     (183,322)          (206,280)          (11)
Unamortized deferred loan     (10,238)           (8,449)            21
fees
Total loans, net              $             $             6
                              7,235,587         6,844,483



Total deposits were $7.4 billion at December 31, 2012, an increase of $154.1
million, or 2.1%, from $7.2 billion at December 31, 2011, primarily due to a
$235.3 million, or 24.7%, increase in money market deposits, a $194.7 million,
or 18.1%, increase in non-interest bearing demand deposits, a $141.6 million,
or 31.4%, increase in NOW deposits, and a $53.8 million, or 12.8%, increase in
savings deposits, offset by a $188.8 million, or 22.7%, decrease in time
deposits under $100,000 and a $282.5 million, or 8.1%, decrease in time
deposits of $100,000 or more. The changes in deposit composition from
December 31, 2011, are presented below:

Deposits                     December 31, 2012  December 31, 2011  % Change
                              (Dollars in thousands)
Non-interest-bearing demand   $             $             18
deposits                      1,269,455         1,074,718
NOW deposits                  593,133            451,541            31
Money market deposits         1,186,771          951,516            25
Savings deposits              473,805            420,030            13
Time deposits under $100,000  644,191            832,997            (23)
Time deposits of $100,000 or  3,215,870          3,498,329          (8)
more
Total deposits                $             $             2
                              7,383,225         7,229,131

ASSET QUALITY REVIEW

At December 31, 2012, total non-accrual portfolio loans, excluding loans held
for sale, were $103.9 million, an increase of $9.0 million, or 9.4%, from
$94.9 million at September 30, 2012, and a decrease of $97.3 million, or
48.4%, from $201.2 million at December 31, 2011. 

The allowance for loan losses was $183.3 million and the allowance for
off-balance sheet unfunded credit commitments was $1.4 million at December 31,
2012, which represented the amount believed by management to be sufficient to
absorb credit losses inherent in the loan portfolio, including unfunded
commitments. The allowance for credit losses, which is the sum of the
allowances for loan losses and for off-balance sheet unfunded credit
commitments, was $184.7 million at December 31, 2012, compared to $208.3
million at December 31, 2011, a decrease of $23.6 million, or 11.4%. The
allowance for credit losses represented 2.49% of period-end gross loans,
excluding loans held for sale, and 176.7% of non-performing portfolio loans at
December 31, 2012. The comparable ratios were 2.95% of period-end gross
loans, excluding loans held for sale, and 100.2% of non-performing portfolio
loans at December 31, 2011. The changes in the Company's non-performing
assets and troubled debt restructurings at December 31, 2012, compared to
September 30, 2012, and to December 31, 2011, are highlighted below:



(Dollars in          December     September 30,  % Change  December     %
thousands)           31, 2012     2012                     31, 2011     Change
Non-performing
assets
Accruing loans past  $    630  $        100       $          (91)
due 90 days or more               -                        6,726
Non-accrual loans:
 Construction-      2,984        2,342          27        25,288       (88)
residential loans
 Construction-
non-residential      33,315       7,080          371       20,724       61
loans
 Land loans         6,053        7,204          (16)      10,975       (45)
 Commercial real
estate loans,        29,651       41,550         (29)      96,809       (69)
excluding land loans
 Commercial loans   19,958       23,035         (13)      30,661       (35)
 Residential        11,941       13,733         (13)      16,740       (29)
mortgage loans
Total non-accrual    $           $          9         $           (48)
loans:               103,902     94,944                  201,197
Total non-performing 104,532      94,944         10        207,923      (50)
loans
Other real estate   46,384       60,642         (24)      92,713       (50)
owned
Total non-performing $           $          (3)       $           (50)
assets               150,916     155,586                  300,636
Accruing troubled  $           $                    $ 
debt restructurings 144,695     170,151        (15)      120,016     21
(TDRs)
Non-accrual loans    $       $        -         $       (100)
held for sale          -           -                760
Allowance for loan   $           $          (1)       $           (11)
losses               183,322     184,438                 206,280
Allowance for
off-balance sheet    1,362        1,610          (15)      2,069        (34)
credit commitments
Allowance for credit $          $         (1)       $  208,349  (11)
losses               184,684     186,048
Total gross loans    $           $                     $
outstanding, at      7,429,147    7,259,930     2         7,059,212   5
period-end (1)
Allowance for loan
losses to
non-performing       175.37%      194.26%                  99.21%
loans, at period-end
(2)
Allowance for loan
losses to gross      2.47%        2.54%                    2.92%
loans, at period-end
(1)
Allowance for credit
losses to gross      2.49%        2.56%                    2.95%
loans, at period-end
(1)
(1) Excludes loans held for sale at period-end.
(2) Excludes non-accrual loans held for sale at period-end.

Troubled debt restructurings on accrual status totaled $144.7 million at
December 31, 2012, compared to $120.0 million at December 31, 2011. These
loans are classified as troubled debt restructurings as a result of granting a
concession to borrowers who are experiencing financial difficulties. The
concessions may be granted in various forms, including a change in the stated
interest rate, a reduction in the loan balance or accrued interest, or an
extension of the maturity date that causes a significant delay in payment.
Although these loan modifications are considered troubled debt restructurings
under Accounting Standard Codification 310-40 and Accounting Standard Update
2011-02, these loans have been performing under the restructured terms and
have demonstrated sustained performance under the modified terms. The
sustained performance considered by management includes the periods prior to
the modification if the prior performance met or exceeded the modified terms
as well as cash paid to set up interest reserves. 

The ratio of non-performing assets, excluding non-accrual loans held for sale,
to total assets was 1.4% at December 31, 2012, compared to 2.8% at December
31, 2011. Total non-performing portfolio assets decreased $149.7 million, or
49.8%, to $150.9 million at December 31, 2012, compared to $300.6 million at
December 31, 2011, primarily due to a $97.3 million decrease in non-accrual
loans, a $46.3 million decrease in other real estate owned, and a $6.1 million
decrease in accruing loans past due 90 days or more.

CAPITAL ADEQUACY REVIEW

At December 31, 2012, the Company's Tier 1 risk-based capital ratio of 17.36%,
total risk-based capital ratio of 19.12%, and Tier 1 leverage capital ratio of
13.82%, continue to place the Company in the "well capitalized" category for
regulatory purposes, 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, 2011, the Company's Tier 1 risk-based capital
ratio was 15.97%, total risk-based capital ratio was 17.85%, and Tier 1
leverage capital ratio was 12.93%.

YEAR-TO-DATE REVIEW

Net income attributable to common stockholders for the year ended December 31,
2012, was $101.0 million, an increase of $17.3 million, or 20.6%, compared to
net income attributable to common stockholders of $83.7 million for the same
period a year ago due primarily to increases in net interest income, decreases
in the provision for loan losses, decreases in prepayment penalties on the
repayment of FHLB advances and the prepayment of securities sold under an
agreement to repurchase, decreases in FDIC and State assessments, and
decreases in operation expenses of affordable housing investments, which were
partially offset by increases in income tax expenses, increases in litigation
accrual expenses, increases in other real estate owned expenses, increases in
salaries and incentive compensation expense, and decreases in gains on sale of
securities. Diluted earnings per share was $1.28 compared to $1.06 per share
for the same period a year ago. The net interest margin for the year ended
December 31, 2012, increased 7 basis points to 3.28% compared to 3.21% for the
year ended December 31, 2011.

Return on average stockholders' equity was 7.48% and return on average assets
was 1.11% for the year ended December 31, 2012, compared to a return on
average stockholders' equity of 6.78% and a return on average assets of 0.94%
for the year ended December 31, 2011. The efficiency ratio for the year ended
December 31, 2012, was 52.37% compared to 50.90% for the year ended December
31, 2011.

CONFERENCE CALL

Cathay General Bancorp will host a conference call this afternoon to discuss
its fourth quarter of 2012 financial results. The call will begin at 3:00 p.m.
Pacific Time. Analysts and investors may dial in and participate in the
question-and-answer session. To access the call, please dial 1-866-713-8563
and enter Participant Passcode 12690883. A listen-only live Webcast of the
call will be available at www.cathaygeneralbancorp.comand a recorded version
is scheduled to be available for replay for 12 months after the call.

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,
eight 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. Information set
forth on such websites is not incorporated into this press release.

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," "can," "could,"
"estimates," "expects," "hopes," "intends," "may," "plans," "projects,"
"seeks," "shall," "should," "will," "predicts," "potential," "continue,"
"possible," "optimistic," and variations of these words and similar
expressions. Forward-looking statements are based on estimates, beliefs,
projections, and assumptions of management 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 U.S. and international
business and economic conditions; credit risks of lending activities and
deterioration in asset or credit quality; adverse results in legal
proceedings; current and potential future supervisory action by federal
supervisory authorities; increased costs of compliance and other risks
associated with changes in regulation and the current regulatory environment,
including the requirements of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (the "Dodd-Frank Act"), and the potential for substantial
changes in the legal, regulatory, and enforcement framework and oversight
applicable to financial institutions in reaction to recent adverse financial
market events, including changes pursuant to the Dodd-Frank Act; potential
goodwill impairment; liquidity risk; fluctuations in interest rates; inflation
and deflation; risks associated with acquisitions and the expansion of our
business into new markets; real estate market conditions and the value of real
estate collateral; environmental liabilities; the effect of repeal of the
federal prohibition on payment of interest on demand deposit accounts; our
ability to compete with larger competitors; the possibility of higher capital
requirements, including implementation of the Basel III capital standards of
the Basel Committee; our ability to retain key personnel; successful
management of reputational risk; natural disasters and geopolitical events;
general economic or business conditions in California, Asia, and other regions
where Cathay Bank has operations; restrictions on compensation paid to our
executives as a result of our participation in the TARP Capital Purchase
Program; failures, interruptions, or security breaches of systems or data
breaches; our ability to adapt our systems to technological changes, including
successfully implementing our core system conversion; changes in accounting
standards or tax laws and regulations; market disruption and volatility;
restrictions on dividends and other distributions by laws and regulations and
by our regulators and our capital structure; successfully raising additional
capital, if needed, and the resulting dilution of interests of holders of our
common stock; and the soundness of other financial institutions.

These and other factors are further described in Cathay General Bancorp's
Annual Report on Form 10-K for the year ended December 31, 2011 (Item 1A in
particular), other reports filed with the Securities and Exchange Commission
("SEC"), and other filings Cathay General Bancorp 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             Year ended December 31,
                      December 31,
(Dollars in                                                                     %
thousands, except     2012      2011      % Change   2012          2011         Change
per share data)
FINANCIAL
PERFORMANCE
Net interest income   $         $ 
before provision for  81,065   79,317    2          $ 321,253    $  313,690 2
credit losses
Provision/(reversal)  -         2,000     (100)      (9,000)       27,000       (133)
for credit losses
Net interest income
after provision for   81,065    77,317    5          330,253       286,690      15
credit losses
Non-interest income   12,202    8,986     36         46,507        50,892       (9)
Non-interest expense  49,532    43,990    13         192,589       185,566      4
Income before income  43,735    42,313    3          184,171       152,016      21
tax expense
Income tax expense    15,276    14,459    6          66,128        51,261       29
Net income            28,459    27,854    2          118,043       100,755      17
 Net income
attributable to       153       153       -          605           605          -
noncontrolling
interest
Net income
attributable to       $        $        2          $ 117,438    $  100,150  17
Cathay General        28,306    27,701
Bancorp
Dividends on          (4,127)   (4,114)   0          (16,488)      (16,437)     0
preferred stock
Net income            $        $ 
attributable to       24,179    23,587   3          $ 100,950    $   83,713 21
common stockholders
Net income attributable to
common stockholders per common
share:
Basic                 $      $      3          $    1.28  $    1.06 21
                      0.31      0.30
Diluted               $      $      3          $    1.28  $    1.06 21
                      0.31      0.30
Cash dividends paid  $      $      -          $    0.04  $         -
per common share    0.01      0.01                               0.04
SELECTED RATIOS
Return on average     1.06%     1.05%     1          1.11%         0.94%        18
assets
Return on average
total stockholders'   6.97%     7.33%     (5)        7.48%         6.78%        10
equity
Efficiency ratio      53.11%    49.82%    7          52.37%        50.90%       3
Dividend payout       2.78%     2.84%     (2)        2.68%         3.14%        (15)
ratio
YIELD ANALYSIS
(Fully taxable
equivalent)
Total
interest-earning      4.25%     4.58%     (7)        4.38%         4.63%        (6)
assets
Total
interest-bearing      1.25%     1.60%     (22)       1.39%         1.73%        (20)
liabilities
Net interest spread   3.00%     2.98%     1          2.99%         2.90%        2
Net interest margin   3.28%     3.28%     -          3.28%         3.21%        2
                      December  December  September  Well          Minimum
CAPITAL RATIOS        31, 2012  31, 2011  30, 2012   Capitalized   Regulatory
                                                     Requirements  Requirements
Tier 1 risk-based     17.36%    15.97%    17.08%     6.0%          4.0%
capital ratio
Total risk-based      19.12%    17.85%    18.96%     10.0%         8.0%
capital ratio
Tier 1 leverage       13.82%    12.93%    13.57%     5.0%          4.0%
capital ratio





CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(In thousands, except share and    December 31,     December 31,     % change
per share data)                    2012             2011
Assets
Cash and due from banks            $    144,909  $  117,888     23
Short-term investments and         411,983          294,956          40
interest bearing deposits
Securities held-to-maturity
(market value of $823,906 in 2012  773,768          1,153,504        (33)
and $1,203,977 in 2011)
Securities available-for-sale
(amortized cost of $1,290,676 in   1,291,480        1,294,478        (0)
2012 and$1,309,521 in 2011)
Trading securities                 4,703            4,542            4
Loans held for sale                -                760              (100)
Loans                              7,429,147        7,059,212        5
Less: Allowance for loan losses   (183,322)        (206,280)        (11)
Unamortized deferred loan fees,   (10,238)         (8,449)          21
net
Loans, net                        7,235,587        6,844,483        6
Federal Home Loan Bank stock       41,272           52,989           (22)
Other real estate owned, net       46,384           92,713           (50)
Affordable housing investments,    85,037           78,358           9
net
Premises and equipment, net        102,613          105,961          (3)
Customers' liability on            41,271           37,300           11
acceptances
Accrued interest receivable        26,015           32,226           (19)
Goodwill                           316,340          316,340          -
Other intangible assets, net       6,132            11,598           (47)
Other assets                       166,595          206,768          (19)
Total assets                       $  10,694,089  $  10,644,864   0
Liabilities and Stockholders'
Equity
Deposits
Non-interest-bearing demand        $   1,269,455  $   1,074,718  18
deposits
Interest-bearing deposits:
NOW deposits                       593,133          451,541          31
Money market deposits              1,186,771        951,516          25
Savings deposits                   473,805          420,030          13
Time deposits under $100,000       644,191          832,997          (23)
Time deposits of $100,000 or more  3,215,870        3,498,329        (8)
Total deposits                     7,383,225        7,229,131        2
Securities sold under agreements   1,250,000        1,400,000        (11)
to repurchase
Advances from the Federal Home     146,200          225,000          (35)
Loan Bank
Other borrowings from financial    -                880              (100)
institutions
Other borrowings for affordable    18,713           18,920           (1)
housing investments
Long-term debt                     171,136          171,136          -
Acceptances outstanding            41,271           37,300           11
Other liabilities                  54,040           46,864           15
Total liabilities                  9,064,585        9,129,231        (1)
 Commitments and               -                -                -
contingencies
Stockholders' Equity
Preferred stock, 10,000,000
shares authorized, 258,000 issued
and outstanding in 2012 and 2011   254,580          250,992          1
Common stock, $0.01 par value,
100,000,000 shares authorized,
82,985,853 issued and 78,778,288
outstanding at December 31, 2012,
and
82,860,122 issued and 78,652,557   830              829              0
outstanding at December 31, 2011
Additional paid-in-capital         768,925          765,641          0
Accumulated other comprehensive    465              (8,732)          105
income/(loss), net
Retained earnings                  721,993          624,192          16
Treasury stock, at cost
(4,207,565 shares at December 31,  (125,736)        (125,736)        -
2012, and at December 31, 2011)
Total Cathay General Bancorp       1,621,057        1,507,186        8
stockholders' equity
Noncontrolling interest            8,447            8,447            -
Total equity                       1,629,504        1,515,633        8
Total liabilities and equity       $  10,694,089   $  10,644,864   0
Book value per common share        $17.12           $15.75           9
Number of common shares            78,778,288       78,652,557       0
outstanding



CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


                              Three months ended       Year ended December 31,
                              December 31,
                              2012        2011         2012         2011
                              (In thousands, except share and per share data)
INTEREST AND DIVIDEND
INCOME
Loan receivable, including    $        $         $  360,643 $ 
loan fees                     91,157      91,640                    364,580
Investment securities-        12,349      17,809       62,395       83,083
taxable
Investment securities-        1,034       1,053        4,161        4,218
nontaxable
Federal Home Loan Bank stock  295         43           485          177
Federal funds sold and
securities
purchased under agreements    -           2            18           83
to resell
Deposits with banks           446         529          2,042        1,430
Total interest and dividend   105,281     111,076      429,744      453,571
income
INTEREST EXPENSE
Time deposits of $100,000 or  7,289       10,089       33,441       42,204
more
Other deposits                2,887       4,139        13,932       20,010
Securities sold under         12,712      14,830       55,699       60,733
agreements to repurchase
Advances from Federal Home    74          1,441        270          12,033
Loan Bank
Long-term debt                1,254       1,260        5,149        4,890
Short-term borrowings         -           -            -            11
Total interest expense        24,216      31,759       108,491      139,881
Net interest income before    81,065      79,317       321,253      313,690
provision for credit losses
Provision/(reversal) for      -           2,000        (9,000)      27,000
credit losses
Net interest income after     81,065      77,317       330,253      286,690
provision for credit losses
NON-INTEREST INCOME
Securities gains, net         4,785       888          18,026       21,131
Letters of credit             1,443       1,531        6,316        5,644
commissions
Depository service fees       1,339       1,319        5,453        5,420
Other operating income        4,635       5,248        16,712       18,697
Total non-interest income     12,202      8,986        46,507       50,892
NON-INTEREST EXPENSE
Salaries and employee         19,951      18,438       78,377       71,849
benefits
Occupancy expense             3,682       3,516        14,608       14,225
Computer and equipment        2,397       2,071        9,591        8,508
expense
Professional services         6,544       6,675        21,768       20,209
expense
FDIC and State assessments    1,785       2,630        8,339        12,494
Marketing expense             1,199       755          4,607        3,175
Other real estate owned       1,568       1,980        15,116       10,583
expense
Operations of affordable      1,919       2,098        6,306        8,153
housing investments
Amortization of core deposit  1,398       1,457        5,663        5,859
intangibles
Cost associated with debt     5,920       1,704        12,120       20,231
redemption
Other operating expense       3,169       2,666        16,094       10,280
Total non-interest expense    49,532      43,990       192,589      185,566
Income before income tax      43,735      42,313       184,171      152,016
expense
Income tax expense            15,276      14,459       66,128       51,261
Net income                    28,459      27,854       118,043      100,755
 Less: net income
attributable to               153         153          605          605
noncontrolling interest
Net income attributable to    28,306      27,701       117,438      100,150
Cathay General Bancorp
Dividends on preferred stock  (4,127)     (4,114)      (16,488)     (16,437)
Net income attributable to    $        $         $  100,950 $  
common stockholders           24,179      23,587                    83,713
Net income attributable to
common stockholders per
common share:
Basic                         $      $       $        $    
                              0.31        0.30         1.28        1.06
Diluted                       $      $       $        $    
                              0.31        0.30         1.28        1.06
Cash dividends paid per       $      $       $        $    
common share                  0.01        0.01         0.04        0.04
Basic average common shares   78,757,798  78,647,680   78,719,133   78,633,317
outstanding
Diluted average common        78,759,222  78,648,591   78,723,297   78,640,652
shares outstanding



CATHAY GENERAL BANCORP

AVERAGE BALANCES – SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited)


                     For the three months ended,
(In thousands)       December 31, 2012       December 31, 2011       September 30, 2012
Interest-earning     Average     Average     Average     Average     Average    Average
assets               Balance     Yield/Rate  Balance     Yield/Rate  Balance    Yield/Rate
                                 (1) (2)                 (1) (2)                (1) (2)
Loans (1)            $          4.96%       $           5.15%       $         5.03%
                     7,318,749               7,061,140              7,122,569
Taxable investment   2,005,074   2.45%       2,316,940   3.05%       2,188,205  2.76%
securities
Tax-exempt
investment           130,927     4.83%       133,856     4.80%       131,024    4.84%
securities (2)
FHLB stock           43,290      2.71%       54,835      0.31%       46,702     0.49%
Federal funds sold
and securities
purchased
under agreements to  -           -           9,130       0.07%       6,413      0.12%
resell
Deposits with banks  405,467     0.44%       90,301      2.32%       394,830    0.47%
Total                $                       $                      $ 
interest-earning     9,903,507  4.25%       9,666,202   4.58%       9,889,743  4.32%
assets
Interest-bearing
liabilities
Interest-bearing     $  568,762 0.16%       $ 444,170  0.15%       $        0.15%
demand deposits                                                      535,708
Money market         1,200,528   0.55%       956,313     0.63%       1,041,986  0.55%
deposits
Savings deposits     469,249     0.08%       421,381     0.09%       464,091    0.08%
Time deposits        3,958,704   0.83%       4,312,235   1.15%       4,129,075  0.91%
Total                $                       $                       $ 
interest-bearing     6,197,243  0.65%       6,134,099  0.92%       6,170,860  0.72%
deposits
Securities sold
under agreements to  1,288,587   3.92%       1,407,076   4.18%       1,358,152  4.02%
repurchase
Other borrowed funds 41,290      0.71%       169,386     3.38%       40,030     0.74%
Long-term debt       171,136     2.92%       171,136     2.92%       171,136    3.00%
Total
interest-bearing     7,698,256   1.25%       7,881,697   1.60%       7,740,178  1.35%
liabilities
Non-interest-bearing 1,236,304               1,052,501               1,209,253
demand deposits
Total deposits and   $                      $                       $ 
other borrowed funds 8,934,560               8,934,198              8,949,431
Total average assets $                       $                       $
                     10,641,799             10,513,596             10,637,868
Total average equity $                      $                      $ 
                     1,625,065              1,508,717              1,592,696
                     Year ended,
(In thousands)       December 31, 2012       December 31, 2011
Interest-earning     Average     Average     Average     Average
assets               Balance     Yield/Rate  Balance     Yield/Rate
                                 (1) (2)                 (1) (2)
Loans and leases (1) $          5.08%       $          5.24%
                     7,095,076               6,960,536
Taxable investment   2,216,857   2.81%       2,484,629   3.34%
securities
Tax-exempt
investment           131,530     4.87%       134,245     4.83%
securities (2)
FHLB stock           47,938      1.01%       58,999      0.30%
Federal funds sold
and securities
purchased
under agreements to  14,986      0.12%       84,493      0.10%
resell
Deposits with banks  367,138     0.56%       113,566     1.26%
Total                $                       $ 
interest-earning     9,873,525  4.38%       9,836,468   4.63%
assets
Interest-bearing
liabilities
Interest-bearing     $  516,246 0.15%       $  426,252 0.18%
demand deposits
Money market         1,059,841   0.56%       979,253     0.75%
deposits
Savings deposits     451,022     0.08%       411,953     0.12%
Time deposits        4,197,906   0.96%       4,323,833   1.24%
Total                $                       $
interest-bearing     6,225,015  0.76%       6,141,291  1.01%
deposits
Federal funds        -           -           27          1.29%
purchased
Securities sold
under agreements to  1,361,475   4.09%       1,448,363   4.19%
repurchase
Other borrowed funds 37,717      0.72%       318,607     3.78%
Long-term debt       171,136     3.01%       171,136     2.86%
Total
interest-bearing     7,795,343   1.39%       8,079,424   1.73%
liabilities
Non-interest-bearing 1,157,343               996,215
demand deposits
Total deposits and   $                      $
other borrowed funds 8,952,686               9,075,639
Total average assets $                       $
                     10,617,004              10,629,217
Total average equity $                      $ 
                     1,579,195              1,485,545
(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 subdivisionsand other securities held using a
statutory Federal income tax rate of 35%.



SOURCE Cathay General Bancorp

Website: http://www.cathaygeneralbancorp.com
Contact: Heng W. Chen, +1-626-279-3652
 
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