EX-99.1 3 e15196ex99_1.txt PRESS RELEASE Exhibit 99.1 Cathay Bancorp Announces an Increase of 8% in Second Quarter Net Income LOS ANGELES, July 15 /PRNewswire-FirstCall/ -- Cathay Bancorp, Inc. (the "Company",) (Nasdaq: CATY), the holding company for Cathay Bank (the "Bank"), today announced results for the second quarter of 2003. STRONG FINANCIAL PERFORMANCE 2nd Quarter 2nd Quarter 2003 2002 Net income $13.2 million $12.2 million Basic earnings per share $0.74 $0.68 Diluted earnings per share $0.73 $0.67 Return on average assets 1.81% 1.93% Return on average stockholders' equity 17.35% 19.03% Efficiency ratio 35.61% 34.68% SECOND QUARTER HIGHLIGHTS: * An increase of 8% in second quarter 2003 net income to $13.2 million compared with $12.2 million during the same quarter a year ago. * Total assets growth of $258.6 million or 9% to $3.01 billion at June 30, 2003, from December 31, 2002 of $2.75 billion. * Gross loan growth from December 31, 2002, of $77.1 million or 4%, primarily in commercial mortgage loans and commercial loans. * Deposit accounts growth from December 31, 2002, of $130.2 million or 6%, of which $39.8 million was in transaction and money market accounts. * Net recoveries of $60,000 compared with net charge-offs of $3.5 million in the year ago quarter. * Return on average stockholders' equity was 17.35% and return on average assets was 1.81% for the quarter ended June 30, 2003. * On May 7, 2003, the Company announced the signing of a definitive agreement by which GBC Bancorp (Nasdaq: GBCB) will be merged into the Company and by which General Bank will be merged into Cathay Bank. * On May 29, 2003, the American Banker newspaper ranked the Company as the 13th most efficient US bank holding company among the 500 largest, which is the highest among California institutions included in the rankings, based on the results for the year 2002. Previously, the Company had been ranked 8th by the American Banker newspaper, based on year-to-date results as of the third quarter 2002. "Our Company has crossed another milestone with our total assets exceeding $3 billion for the first time in this quarter. The second quarter results were solid as measured by increased earnings which benefited from securities gains of $3.9 million, net loan loss recoveries of $60,000 and an efficiency ratio of 35.61%. However, average loans were essentially flat with the first quarter of 2003 as steady loan originations were offset by high levels of loan payoffs. In addition, net income for the second quarter of 2003 was negatively impacted by prepayments and calls of higher yielding securities and a higher effective tax rate," commented Dunson Cheng, Chairman of the Board and President of Cathay Bancorp. "On May 7, we announced the signing of a definitive agreement by which GBC Bancorp will be merged into Cathay Bancorp to create the largest full-service bank catering primarily to Asian-American business and retail customers in key U.S. markets. We are proceeding with integration planning and continue to expect the merger to close before the end of this year, subject to regulatory and stockholder approvals," continued Mr. Cheng. INCOME STATEMENT REVIEW Net interest income before provision for loan losses Our net interest income during the second quarter of 2003 increased to $26.6 million or 5% higher than the $25.4 million during the same quarter a year ago, as a result of the increases in commercial mortgage loans, commercial loans and securities, which helped mitigate the effect of the 50 basis point decrease in the target federal funds rate on November 7, 2002 and the prepayments and calls of higher yielding securities. The net interest margin fell 13 basis points from 4.01% during the first quarter 2003 to 3.88% for the second quarter 2003, primarily as a result of the lower yields in the securities portfolio during the second quarter and high levels of loan payoffs which offset new loan originations. The net interest margin decreased from 4.31% in the second quarter of 2002 to 3.88% in the second quarter of 2003 primarily as a result of the 50 basis point drop in the federal funds rate in November 2002, the prepayment and calls of higher yielding securities and the related lagging effect on our interest-bearing time deposit accounts. For the second quarter of 2003, the interest rate earned on our average interest-earning assets was 5.20% and our cost of funds on average interest- bearing liabilities equaled 1.59%. In comparison, for the second quarter of 2002, the interest rate earned on our average interest-earning assets was 5.97% and our cost of funds on average interest-bearing liabilities equaled 1.99%. Provision for loan losses We increased the provision for loan losses by $150,000 to $1.7 million during the second quarter of 2003, compared with $1.5 million for the second quarter of 2002. The provision for loan losses represents the charge against current earnings that is determined by management, through a credit review process, as the amount needed to maintain an allowance that management believes should be sufficient to absorb loan losses inherent in the Company's loan portfolio. Total charge-offs for the second quarter of 2003 were $48,000 compared with charge-offs of $3.7 million during the second quarter of 2002. Recoveries in the second quarter of 2003 equaled $108,000, compared with recoveries of $168,000 in the same quarter a year ago. Non-interest income Non-interest income, which includes revenues from service charges on deposit accounts, letters of credit commissions, securities sales, loan sales, wire transfer fees, and other sources of fee income, rose $3.2 million or 78.9% to $7.2 million for the second quarter 2003, compared with $4.0 million for the same quarter in 2002. During the second quarter of 2003, the Company sold $21 million of its holdings in US dollar-denominated corporate bonds issued by certain Hong Kong entities whose credit rating may potentially be adversely impacted by the effect of SARS, and reduced its remaining holdings to $2.6 million. The gain on the sale was $4.0 million. As a result of the sale from the held-to- maturity portfolio, the remaining securities in the held-to-maturity portfolio were transferred to the available-for-sale portfolio. Other operating income decreased by 13% to $1.4 million during the second quarter 2003 compared with $1.6 million in the year ago quarter. The decrease in other operating income was due primarily to lower loan documentation and other fees. Non-interest expense Non-interest expense increased $1.8 million to $12.0 million in the second quarter of 2003, and the efficiency ratio was 35.61% compared to 34.68% in the year ago quarter. The increase in non-interest expense during the second quarter 2003 was primarily attributable to increases of $833,000 in salaries and employee benefits expenses, higher other real estate owned expense of $278,000, higher operations of investments in real estate of $201,000, higher professional services expense of $183,000, and other smaller increases. The increase in salaries and employee benefits expense reflected primarily higher incentive accruals, annual salary adjustments, a higher number of employees resulting in part from the opening of additional branches and $97,000 for stock option expense. During the first quarter of 2003, the Company adopted prospectively the stock option expense provisions of the Financial Accounting Standards Board ("FASB") Statement No. 123, "Accounting for Stock-Based Compensation," as amended by FASB Statement No. 148, "Accounting for Stock-Based Compensation - Transition and Disclosure, an Amendment of FASB Statement No. 123". The higher other real estate owned expense related to the sale of foreclosed real estate which generated the net credit from real estate operations in the second quarter of 2002. The higher operations of investments in real estate expense resulted from increases in these investments. The higher professional expenses resulted from professional fees related to the real estate investment trust. Income taxes The provision for income taxes was $6.9 million or an effective income tax rate of 34.1% for the second quarter 2003 compared with $5.5 million or an effective income tax rate of 31.0% in the year ago quarter. The effective income tax rate during the second quarter of 2003 reflected tax credits from qualified low income housing investments, and the income tax benefits of the real estate investment trust formed in the first quarter of 2003. The effective income tax rate during the second quarter of 2002 reflected tax credits from qualified low income housing investments, and the income tax benefits of a registered investment company subsidiary of the Bank, which was deregistered in March 2003. The increase in the effective tax rate from 2002 to 2003 resulted from the lower level of assets in the real estate investment trust in 2003 compared to the registered investment company in 2002. BALANCE SHEET REVIEW Total assets increased by $258.6 million to $3.01 billion at June 30, 2003, up 9% from year-end 2002 of $2.75 billion. The increase in total assets was driven primarily by growth in commercial mortgage loans and commercial loans totaling $96.4 million and an increase of $201.8 million in investment securities. Investment securities increased 29% to $909.6 million at June 30, 2003, compared to $707.7 million at December 31, 2002. As a percentage of total assets, the investment securities portfolio increased to 30% at June 30, 2003, compared with 26% at year-end 2002. Gross loan growth during the six months ended June 30, 2003 equaled $77.1 million, an increase of 4% from year-end 2002, reflecting increases in commercial mortgage loans, which grew by $89.5 million to $1.03 billion at June 30, 2003, compared with $943.4 million at year-end 2002, and in commercial loans which increased by $6.8 million to $570.5 million at period-end compared with $563.7 million at year-end 2002. These increases were partially offset by a decrease in construction loans totaling $14.3 million. During the second quarter of 2003, the Bank sold $3.2 million of SBA loans, resulting in a gain on sale of loans of $153,000. The changes in the loan composition from year-end 2002 are presented below: (In thousands) June 30, 2003 December 31, 2002 % Change Loans Commercial $570,512 $563,675 1 Residential mortgage 230,767 231,371 -- Commercial mortgage 1,032,917 943,391 9 Real estate construction 108,448 122,773 (12) Installment 11,113 15,570 (29) Other 529 447 18 Gross loans 1,954,286 1,877,227 4 Allowance for loan losses (27,672) (24,543) 13 Unamortized deferred loan fees (5,138) (4,606) 12 Total loans, net $1,921,476 $1,848,078 4 The increase in total assets from year-end 2002 was funded primarily by deposit growth of $130.2 million or 6%, to $2.44 billion, and by increased wholesale borrowings. The deposit growth was comprised of $74.9 million or 6% in lower-cost core deposits, and $55.3 million or 6% in time deposits of $100,000 or more. This includes the Bank's purchase of $2.1 million in deposits from CITIC International Financial Holdings Limited, which was completed in May 2003. The changes in the deposit composition from year-end 2002 are presented below: (In thousands) June 30, 2003 December 31, 2002 % Change Deposits Non-interest-bearing deposits $320,723 $302,828 6 Interest-bearing checking deposits 331,577 309,665 7 Savings deposits 309,994 290,226 7 Time deposits 1,482,585 1,411,924 5 Total deposits $2,444,879 $2,314,643 6 Federal funds purchased and securities sold under agreements to repurchase increased by $124.0 million to $152.5 million at June 30, 2003 compared with $28.5 million at year-end 2002. Other liabilities decreased by $44.3 million at June 30, 2003. The decrease was due primarily to a liability that was established for investments securities purchased in December 2002 that settled in January 2003. Stockholders' equity of $315.2 million rose $27.2 million or 9% from December 31, 2002. The increase was primarily due to net income of $25.8 million for the six months ended June 30, 2003, $1.3 million from the Company's dividend reinvestment plan and an increase of $5.4 million in accumulated other comprehensive income which was partially offset by cash dividends on common stock of $5.0 million. ASSET QUALITY REVIEW Non-performing assets to gross loans plus other real estate owned increased to 0.67% at June 30, 2003, from 0.39% at December 31, 2002, and from 0.45% at June 30, 2002. Total non-performing assets increased to $13.2 million at June 30, 2003, including $8.4 million of loans past due 90 days and still accruing, compared with $7.2 million at December 31, 2002, and $7.8 million at June 30, 2002. Non-performing assets include accruing loans past due 90 days or more, non-accrual loans, and other real estate owned. Non-performing loans increased to $12.5 million at June 30, 2003, compared with year-end 2002 of $6.6 million, and $7.2 million at June 30, 2002. The increase in non-performing loans compared with December 31, 2002, resulted in large part from the accruing loans past due 90 days or more category which increased $5.9 million. Nonaccrual loans of $4.1 million stayed at the same level as that of December 31, 2002. The allowance for loan losses amounted to $27.7 million at June 30, 2003, and represented the amount needed to maintain an allowance that we believe should be sufficient to absorb loan losses inherent in the Company's loan portfolio. The allowance for loan losses represented 1.42% of period-end gross loans and 221.34% of non-performing loans at June 30, 2003. The comparable ratios were 1.31% of gross loans and 372.31% of non-performing loans at December 31, 2002. The changes to the Company's asset quality results are highlighted below: (In thousands) June 30, 2003 December 31, 2002 % Change Non-performing assets Accruing loans past due 90 days or more $8,384 $2,468 240 Non-accrual loans 4,118 4,124 -- Total non-performing loans 12,502 6,592 90 Other real estate owned 653 653 -- Total non-performing assets $13,155 $7,245 82 Troubled debt restructurings $4,211 $5,266 (20) The decrease in troubled debt restructurings from December 31, 2002 is due to three restructured loans outstanding at December 31, 2002 which became past due over 90 days as of June 30, 2003, and were included in the non-performing loans category. CAPITAL ADEQUACY REVIEW The Tier 1 risk-based capital ratio of 13.33%, total risk-based capital ratio of 14.51%, and Tier 1 leverage capital ratio of 10.67%, continued 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. The Tier 1 risk-based capital, total risk-based capital and Tier 1 leverage capital ratios for year-end 2002 were 11.93%, 13.01% and 10.11%, respectively. In June 2003, Cathay Bancorp completed the sale of $20 million of trust preferred securities which qualify as Tier 1 capital under current regulatory guidelines. The trust preferred securities have a variable interest rate of three-month LIBOR plus 3.15%, with an interest rate cap of 11.75% during the first five years. The trust preferred securities are redeemable, in whole or in part, at the option of Cathay Bancorp, once each quarter beginning five years after their issuance. YEAR-TO-DATE REVIEW Net income was $25.8 million or $1.42 per diluted share for the six months ended June 30, 2003, an increase of 9% over the $23.6 million or $1.31 per diluted share for the same period a year ago. The net interest margin for the six months ended June 30, 2003 decreased 44 basis points to 3.94% compared to 4.38% during the like period a year ago. Return on average stockholders' equity was 17.39% and return on average assets was 1.80% for the six months of 2003, compared to a return on average stockholders' equity of 18.74% and a return on average assets of 1.89%, for the six months ended June 30, 2002. The efficiency ratio for the six months ended June 30, 2003 was 35.71% compared to 35.75% during the same period a year ago. Cathay Bancorp, Inc. is the one-bank holding company for Cathay Bank. Cathay Bank was founded in 1962 and offers a wide range of financial services. The Bank currently operates twelve branches in Southern California, eight branches in Northern California, three branches in New York State, one branch in Houston, Texas, and two representative offices, one in Hong Kong, and one in Shanghai, China. In addition, the Bank's subsidiary, Cathay Investment Company, maintains an office in Taipei. Cathay Bank's web page 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 Bancorp, Inc. 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: fluctuations in interest rates, demographic changes, inflation, competition, legislative and regulatory developments, war and terrorism, changes in business strategy, including the formation of a real estate investment trust and the deregistration of our registered investment company, and general economic or business conditions in California and other regions where the Bank has operations such as the currently unknown impact of the California budget deficit. These and other factors are further described in Cathay Bancorp Inc.'s Annual Report on Form 10-K for the year ended December 31, 2002, its Quarterly Reports on Form 10-Q and other filings it makes with the Securities and Exchange Commission ("SEC") from time to time. Cathay 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. In connection with the proposed merger of Cathay Bancorp, Inc. with GBC Bancorp, Cathay Bancorp, Inc. has filed a Registration Statement on Form S-4 with the SEC (which has not been declared effective) and will file certain other materials with the SEC from time to time, including amendments to the Registration Statement on Form S-4. Because those documents will contain important information, you are urged to read them when they become available. When filed with the SEC, they will be available for free on the SEC's website at http://www.sec.gov. You may obtain from us free copies of our reports, proxy statements, and other information regarding us filed with the SEC and, when available, the proxy statement/prospectus relating to the proposed merger. Cathay Bancorp, Inc. and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the security holders of Cathay Bancorp, Inc. in connection with its proposed merger with GBC Bancorp. Information about the directors and executive officers of Cathay Bancorp, Inc. and their ownership in Cathay Bancorp, Inc. stock can be found in the Registration Statement on Form S-4 filed with the SEC and Cathay Bancorp, Inc.'s proxy statement for its 2003 annual meeting of stockholders. Cathay Bancorp, Inc.'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 requests directed to Cathay Bancorp, Inc., 777 N. Broadway, Los Angeles, CA 90012, Attention: Investor Relations (213) 625-4749. CATHAY BANCORP, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) Three months ended Six months ended June 30, June 30, 2003 2002 % change 2003 2002 % change (Dollars in thousands, except per share data) FINANCIAL PERFORMANCE Net interest income before provision for loan losses $26,588 $25,432 5 $53,023 $51,015 4 Provision for loan losses 1,650 1,500 10 3,300 3,000 10 Net interest income after provision for loan losses 24,938 23,932 4 49,723 48,015 4 Non-interest income 7,196 4,022 79 12,399 7,356 69 Non-interest expense 12,029 10,214 18 23,363 20,866 12 Income before income tax expense 20,105 17,740 13 38,759 34,505 12 Income tax expense 6,860 5,502 25 12,980 10,879 19 Net income $13,245 $12,238 8 $25,779 $23,626 9 Net income per common share: Basic $0.74 $0.68 9 $1.43 $1.31 9 Diluted $0.73 $0.67 8 $1.42 $1.31 9 Cash dividends paid per common share $0.140 $0.140 -- $0.280 $0.265 6 SELECTED RATIOS Return on average assets 1.81% 1.93% (6) 1.80% 1.89% (5) Return on average stockholders' equity 17.35% 19.03% (9) 17.39% 18.74% (7) Efficiency ratio 35.61% 34.68% 3 35.71% 35.75% -- Dividend payout ratio 18.92% 20.58% (8) 19.58% 20.23% (3) YIELD ANALYSIS (non-tax equivalent) Total interest-earning assets 5.20% 5.97% (13) 5.29% 6.14% (14) Total interest bearing liabilities 1.59% 1.99% (20) 1.64% 2.10% (22) Net interest spread 3.61% 3.98% (9) 3.65% 4.04% (10) Net interest margin 3.88% 4.31% (10) 3.94% 4.38% (10) June 30, 2003 December 31, 2002 June 30, 2002 CAPITAL RATIOS Tier 1 risk-based capital ratio 13.33% 11.93% 11.88% Total risk-based capital ratio 14.51% 13.01% 12.92% Tier 1 leverage capital ratio 10.67% 10.11% 9.95% CATHAY BANCORP, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (In thousands, except share and per share data) June 30, December 31, % change 2003 2002 Assets Cash and due from banks $63,522 $70,777 (10) Federal funds sold and securities purchased under agreements to resell 14,000 19,000 (26) Cash and cash equivalents 77,522 89,777 (14) Securities available-for-sale (amortized cost of $890,347 in 2003 and $238,740 in 2002) 909,557 248,273 266 Securities held-to-maturity (estimated fair value of $477,782 in 2002) -- 459,452 (100) Loans 1,954,286 1,877,227 4 Less: Allowance for loan losses (27,672) (24,543) 13 Unamortized deferred loan fees (5,138) (4,606) 12 Loans, net 1,921,476 1,848,078 4 Other real estate owned, net 653 653 -- Investments in real estate, net 21,676 21,678 -- Premises and equipment, net 29,586 29,788 (1) Customers' liability on acceptance 12,418 10,608 17 Accrued interest receivable 13,988 14,453 (3) Goodwill 6,552 6,552 -- Other assets 19,202 24,686 (22) Total assets $3,012,630 $2,753,998 9 Liabilities and Stockholders' Equity Deposits Non-interest-bearing demand deposits $320,723 $302,828 6 Interest-bearing deposits: NOW deposits 155,354 148,085 5 Money market deposits 176,223 161,580 9 Savings deposits 309,994 290,226 7 Time deposits under $100 440,457 425,138 4 Time deposits of $100 or more 1,042,128 986,786 6 Total deposits 2,444,879 2,314,643 6 Federal funds purchased and securities sold under agreements to repurchase 152,500 28,500 435 Advances from the Federal Home Loan Bank 50,000 50,000 -- Acceptances outstanding 12,418 10,608 17 Trust preferred securities 19,701 -- 100 Other liabilities 17,965 62,286 (71) Total liabilities 2,697,463 2,466,037 9 Stockholders' Equity Preferred stock, $0.01 par value; 10,000,000 shares authorized, none issued -- -- -- Common stock, $0.01 par value, 25,000,000 shares authorized, 18,341,657 issued and 18,021,747 outstanding in 2003 and 18,305,255 issued and 17,999,955 outstanding in 2002 183 183 -- Treasury stock, at cost (319,910 shares in 2003 and 305,300 in 2002) (8,810) (8,287) 6 Additional paid-in-capital 74,169 70,857 5 Unearned compensation (1,743) -- -- Accumulated other comprehensive income, net 12,138 6,719 81 Retained earnings 239,230 218,489 9 Total stockholders' equity 315,167 287,961 9 Total liabilities and stockholders' equity $3,012,630 $2,753,998 9 Book value per share $17.49 $16.00 9 CATHAY BANCORP, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) Three months ended June 30, Six months ended June 30, 2003 2002 2003 2002 (In thousands, except share and per share data) INTEREST INCOME Interest on loans $26,819 $25,788 $53,343 $52,596 Interest on securities available-for-sale 5,250 4,103 8,237 8,054 Interest on securities held-to-maturity 3,426 5,186 9,310 10,472 Interest on federal funds sold and securities purchased under agreements to resell 128 182 301 392 Interest on deposits with banks 12 8 14 19 Total interest income 35,635 35,267 71,205 71,533 INTEREST EXPENSE Time deposits of $100 or more 5,032 5,641 10,232 12,030 Other deposits 2,598 3,373 5,279 6,934 Other borrowed funds 1,417 821 2,671 1,554 Total interest expense 9,047 9,835 18,182 20,518 Net interest income before provision for loan losses 26,588 25,432 53,023 51,015 Provision for loan losses 1,650 1,500 3,300 3,000 Net interest income after provision for loan losses 24,938 23,932 49,723 48,015 NON-INTEREST INCOME Securities gains 3,858 502 5,653 460 Letters of credit commissions 496 466 994 938 Depository service fees 1,472 1,480 2,805 2,961 Other operating income 1,370 1,574 2,947 2,997 Total non-interest income 7,196 4,022 12,399 7,356 NON-INTEREST EXPENSE Salaries and employee benefits 7,081 6,248 13,724 12,413 Occupancy expense 924 817 1,905 1,748 Computer and equipment expense 832 780 1,652 1,584 Professional services expense 947 764 1,944 1,854 FDIC and State assessments 127 122 257 246 Marketing expense 460 438 849 771 Other real estate owned expense (income) 83 (195) 129 (385) Operations of investments in real estate 703 502 1,228 1,118 Other operating expense 872 738 1,675 1,517 Total non-interest expense 12,029 10,214 23,363 20,866 Income before income tax expense 20,105 17,740 38,759 34,505 Income tax expense 6,860 5,502 12,980 10,879 Net income 13,245 12,238 25,779 23,626 Other comprehensive income, net of tax 6,848 2,950 5,419 356 Total comprehensive income $20,093 $15,188 $31,198 $23,982 Net income per common share: Basic $0.74 $0.68 $1.43 $1.31 Diluted $0.73 $0.67 $1.42 $1.31 Cash dividends paid per common share $0.140 $0.140 $0.280 $0.265 Basic average common shares outstanding 18,016,015 17,992,971 18,009,937 17,980,834 Diluted average common shares outstanding 18,155,180 18,133,705 18,136,125 18,089,358 CATHAY BANCORP, INC. AVERAGE BALANCES - SELECTED CONSOLIDATED FINANCIAL INFORMATION (Unaudited) For the three months ended, (In thousands) June 30, 2003 June 30, 2002 March 31, 2003 Interest-earning assets Federal funds sold and securities purchased under agreements to resell $42,544 $ 42,093 $ 57,622 Securities available-for-sale, at fair value 526,723 301,475 257,346 Securities held-to-maturity 292,934 365,873 471,492 Loans receivable, net of unamortized deferred loan fees 1,913,593 1,681,375 1,912,808 Allowance for loan losses (26,626) (23,646) (25,117) Loans receivable, net 1,886,967 1,657,729 1,887,691 Deposits with banks 1,193 938 830 Total interest-earning assets $2,750,361 $2,368,108 $2,674,981 Interest-bearing liabilities Interest-bearing checking deposits $341,040 $288,560 $337,922 Savings deposits 304,498 267,014 290,233 Time deposits 1,472,711 1,356,445 1,430,745 Total interest-bearing deposits 2,118,249 1,912,019 2,058,900 Other borrowed funds 165,687 70,233 139,589 Total interest-bearing liabilities 2,283,936 1,982,252 2,198,489 Non-interest-bearing demand deposits 306,260 262,938 295,042 Total deposits and other borrowed funds $2,590,196 $2,245,190 $2,493,531 Total average assets $2,929,110 $2,539,688 $2,844,276 Total average stockholders' equity $306,279 $257,955 $291,608 For the six months ended, (In thousands) June 30, 2003 June 30, 2002 Interest-earning assets Federal funds sold and securities purchased under agreements to resell $50,041 $45,517 Securities available-for-sale, at fair value 392,778 289,113 Securities held-to-maturity 381,720 365,951 Loans receivable, net of unamortized deferred loan fees 1,913,203 1,672,592 Allowance for loan losses (25,876) (23,924) Loans receivable, net 1,887,327 1,648,668 Deposits with banks 1,013 1,049 Total interest-earning assets $2,712,879 $2,350,298 Interest-bearing liabilities Interest-bearing checking deposits $339,489 $280,418 Savings deposits 297,405 261,495 Time deposits 1,451,844 1,352,981 Total interest-bearing deposits 2,088,738 1,894,894 Other borrowed funds 152,710 79,758 Total interest-bearing liabilities 2,241,448 1,974,652 Non-interest-bearing demand deposits 300,682 260,656 Total deposits and other borrowed funds $ 2,542,130 $2,235,308 Total average assets $ 2,886,927 $2,524,836 Total average stockholders' equity $298,984 $254,181 SOURCE Cathay Bancorp, Inc.