EX-99 2 e19384ex99.txt PRESS RELEASE Exhibit 99 Cathay General Bancorp Announces Record Earnings Increase of 78% to $23.2 Million, or $0.46 Per Share, in Third Quarter LOS ANGELES, Oct. 21 /PRNewswire-FirstCall/ -- Cathay General Bancorp (the "Company") (Nasdaq: CATY), the holding company for Cathay Bank (the "Bank"), today announced results for the third quarter of 2004. Share and per share numbers for all periods presented reflect a two-for-one stock split that became effective on September 28, 2004. STRONG FINANCIAL PERFORMANCE Third quarter 2004 Third quarter 2003 Net income $23.2 million $13.0 million Basic earnings per share $0.47 $0.36 Diluted earnings per share $0.46 $0.36 Return on average assets 1.60% 1.66% Return on average stockholders' equity 14.08% 16.55% Efficiency ratio 36.85% 34.42% THIRD QUARTER 2004 HIGHLIGHTS * Third quarter earnings increased $10.2 million, or 78%, compared to the same quarter a year ago. * Fully diluted earnings per share reached $0.46 and increased 28% compared to the same quarter a year ago. * Gross loans increased by $106.9 million, or 3%, primarily in commercial mortgage loans, from June 30, 2004. * Deposits increased by $33.1 million, or 1% from June 30, 2004. * Return on average stockholders' equity was 14.08% and return on average assets was 1.60% for the quarter ended September 30, 2004. * Nonaccrual loans decreased $8.5 million from $26.7 million at June 30, 2004, to $18.2 million at September 30, 2004. * Efficiency ratio of 36.85% for the third quarter of 2004. * The Board of Directors approved a two-for-one stock split of the Company's common stock, in the form of a 100% stock dividend and on October 1 approved a 29% increase in the quarterly cash dividend from $.07 to $.09 a share to be paid on October 22, 2004. "The third quarter net income was another record and demonstrates the benefits of the integration of General Bank and Cathay Bank. Continued strong organic loan growth (achieved in spite of higher than normal loan prepayments), an improved net interest margin, net credit recoveries, and a decrease in noninterest expense from the second quarter of 2004 were the main factors that contributed to the record results. We are gratified to see continuing performance improvement in sequential quarters, affirming that our integration efforts have been largely successful," commented Dunson Cheng, Chairman of the Board and President of the Company. "We continue to be pleased by the level of retention of customers and key officers from General Bank. Looking forward, by early 2005, we expect to open a second branch in New York Chinatown and to relocate our Boston main office to a new location to better serve our growing customer base," said Peter Wu, Executive Vice Chairman and Chief Operating Officer. "We were pleased that the profitability performance of the Company and its strong stock price allowed the Board to split our stock two-for-one in September and to increase the dividend by 29% in October. We are optimistic that 2004 should be another record year for Cathay General Bancorp," concluded Dunson Cheng. INCOME STATEMENT REVIEW As of the close of business on October 20, 2003, the Company completed its merger with GBC Bancorp. The results of GBC Bancorp's operations have been included in the Company's consolidated financial statements since October 20, 2003. The return on assets and return on equity after the merger with GBC Bancorp are lower than in previous periods, due primarily to the increases in assets and stockholders' equity as a result of the merger. Net interest income before provision for loan losses Our net interest income before provision for loan losses increased to $54.8 million during the third quarter of 2004, or 98.9% higher than the $27.6 million during the same quarter a year ago. The increase was due primarily to the merger with GBC Bancorp and strong growth in loans. The net interest margin, on a fully taxable-equivalent basis, increased 11 basis points from 4.02% during the second quarter 2004 to 4.13% for the third quarter 2004. The net interest margin increased from 3.80% in the third quarter of 2003 to 4.13% in the third quarter of 2004, primarily as a result of increases in the prime rate, higher yields on investment securities, and interest collected from payoffs of several nonaccrual loans. For the third quarter of 2004, the interest rate earned on our average interest-earning assets was 5.25% on a fully taxable-equivalent basis, and our cost of funds on average interest-bearing liabilities equaled 1.37%. In comparison, for the third quarter of 2003, the interest rate earned on our average interest-earning assets was 5.02% and our cost of funds on average interest-bearing liabilities equaled 1.47%. Provision for loan losses The provision for loan losses was zero for both the second and third quarters of 2004 compared to $1.7 million for the third quarter of 2003. 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 for loan losses that management believes should be sufficient to absorb loan losses inherent in the Company's loan portfolio. Total chargeoffs and recoveries for the third quarter of 2004 were $2.4 million and $2.5 million, respectively, compared to total chargeoffs and recoveries of $15,000 and $61,000, respectively, for the third quarter of 2003. Total net recoveries for the nine months in 2004 were $233,000 compared to net charge-offs of $124,000 for the nine months in 2003. Non-interest income Non-interest income, which includes revenues from service charges on deposit accounts, letters of credit commissions, securities gains (losses), gains (losses) from loan sales, wire transfer fees, and other sources of fee income, was $4.7 million for the third quarters of both 2004 and 2003. For the third quarter of 2004, the Company recorded net securities losses of $0.3 million compared to $1.7 million of net gains for the same quarter in 2003. Letters of credit commissions increased $579,000, or 106.8%, from $542,000 in the third quarter of 2003 to $1.1 million in the third quarter of 2004. Comparing the third quarter of 2004 to the third quarter of 2003, depository service fees increased $542,000, or 39.1% and other operating income increased $822,000, or 73.6%. These increases were due primarily to the merger with GBC Bancorp. Non-interest expense Non-interest expense increased $10.8 million to $22.0 million in the third quarter of 2004 primarily due to the merger with GBC Bancorp. The efficiency ratio was 36.85% for the third quarter 2004 compared to 34.42% in the year ago quarter. Salaries and employee benefits increased $6.0 million or 91.8% from $6.5 million in the third quarter of 2003 to $12.5 million in the third quarter of 2004 due to the merger with GBC Bancorp and a $798,000 increase in compensation expense due to the amortization of compensation expense associated with stock options granted after the third quarter of 2003. Occupancy expense increased by $1.0 million or 92.1%, from $1.1 million in the third quarter of 2003 to $2.1 million in the third quarter of 2004, due primarily to the merger with GBC Bancorp. Computer and equipment expense increased $646,000 or 84.3% from $766,000 in the third quarter of 2003 to $1.4 million in the third quarter of 2004 due to the merger with GBC Bancorp. Professional services expense increased $822,000 or 91.2% from $901,000 in the third quarter of 2003 to $1.7 million in the third quarter of 2004 due to higher legal, consulting, and other professional expenses primarily as a result of the merger with GBC Bancorp. Amortization of core deposit intangibles increased by $1.3 million due to the merger with GBC Bancorp. Other operating expenses increased $690,000 or 109.5% due to the merger with GBC Bancorp. Income taxes The effective tax rates for the third quarter of 2004 and 2003 were 38.3% and 33.3%, respectively, compared to 36.7% for the full year 2003. The effective tax rate for the third quarter of 2004 of 38.3% increased from the full year 2003 effective tax rate of 36.7% because the tax benefit from the Company's investments in affordable housing and other tax-exempt investments comprises a smaller percentage of pretax income in 2004 compared to 2003. Quarterly comparisons with the first three quarters of 2003 are impacted by the real estate investment trust ("REIT") state tax benefits which reduced income tax expense in the first three quarters of 2003, and increased income tax expense in the fourth quarter of 2003, when the previously recorded benefit was reversed. 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 regulated investment company were appropriate and fully defensible under California law, the Company has deemed it prudent to participate in Voluntary Compliance Initiative - Option 2, requiring payment of all California taxes and interest on these disputed 2000 through 2002 tax benefits, and permitting the Company to claim a refund for these years while avoiding certain potential penalties. The Company retains potential exposure for assertion of an accuracy-related penalty should the FTB prevail in its position in addition to the risk of not being successful in its refund claims. As of September 30, 2004, the Company reflected a $12.3 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 $8.0 million after giving effect to Federal tax benefits. 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 $8.0 million net state tax receivable after giving effect to Federal tax benefits. BALANCE SHEET REVIEW Total assets increased by $351.1 million to $5.9 billion at September 30, 2004, up 6.3% from year-end 2003 of $5.5 billion. The increase in total assets was due primarily to increases in loans and investment securities. The increase in gross loans to $3.6 billion as of September 30, 2004, from $3.3 billion as of December 31, 2003, represents growth of $333.2 million, or 10.1%, due primarily to increases in commercial mortgage loans. The growth in gross loans during the third quarter was $106.9 million or 3.0%. The changes in the loan composition from year-end 2003 are presented below: (Dollar in thousands) September 30, 2004 December 31, 2003 % Change Loans Commercial $941,283 $956,382 (2) Residential mortgage 315,170 262,954 20 Commercial mortgage 2,071,294 1,715,434 21 Real estate construction 298,948 359,339 (17) Installment 9,404 11,452 (18) Other 3,530 860 310 Gross loans and leases $3,639,629 $3,306,421 10 Allowance for loan losses (66,041) (65,808) 0 Unamortized deferred loan fees (11,284) (10,862) 4 Total loans and leases, net $3,562,304 $3,229,751 10 The increase in total assets from year-end 2003 was funded primarily by the increase in wholesale borrowings and time deposits of $100,000 or more. Total deposits increased $113.3 million or 2.6% from December 31, 2003, and $33.1 million or 0.7% from June 30, 2004. The changes in the deposit composition from year-end 2003 are presented below: (Dollars in thousands) September 30, 2004 December 31, 2003 % Change Deposits Non-interest- bearing deposits $660,909 $633,556 4 Interest-bearing checking deposits 878,738 937,317 (6) Savings deposits 428,660 425,076 1 Time deposits under $100 536,387 559,305 (4) Time deposits of $100 or more 2,036,641 1,872,827 9 Total deposits $4,541,335 $4,428,081 3 Advances from the Federal Home Loan Bank increased $170.8 million to $429.1 million at September 30, 2004, compared to $258.3 million at December 31, 2003. ASSET QUALITY REVIEW Non-performing assets to gross loans plus other real estate owned decreased to 0.80% at September 30, 2004 from 1.19% at December 31, 2003, but increased from 0.24% at September 30, 2003. More than two-thirds of the $11.0 million in loans past due 90 days or more and still accruing interest are secured by real estate. Total non-performing assets decreased to $29.2 million at September 30, 2004, compared with $39.3 million at December 31, 2003, but increased from $4.9 million at September 30, 2003 before the merger with GBC Bancorp. The allowance for loan losses amounted to $66.0 million at September 30, 2004, and represented the amount that the Company believes should be sufficient to absorb loan losses inherent in the Company's loan portfolio. The allowance for loan losses represented 1.81% of period-end gross loans and 226% of non-performing loans at September 30, 2004. The comparable ratios were 1.99% of gross loans and 169% of non-performing loans at December 31, 2003. The changes to the Company's asset quality are highlighted below: (In thousands) September 30, 2004 December 31, 2003 % Change Non-performing assets Accruing loans past due 90 days or more $11,042 $5,916 87 Non-accrual loans 18,204 32,959 (45) Total non-performing loans 29,246 38,875 (25) Other real estate owned -- 400 (100) Total non-performing assets $29,246 $39,275 (26) Troubled debt restructurings $1,010 $5,808 (83) The following table presents the types of non-accrual loans as of the dates indicated: (In thousands) September 30, 2004 December 31, 2003 Net change Type of Non-accrual Loans Construction $3,279 $1,458 $1,821 Single/ multi-family Residence 152 799 (647) Commercial real estate 4,015 5,404 (1,389) Commercial and industrial 10,753 25,281 (14,528) Other loans 5 17 (12) Total $18,204 $32,959 $(14,755) CAPITAL ADEQUACY REVIEW The Tier 1 risk-based capital ratio of 10.41%, total risk-based capital ratio of 11.66%, and Tier 1 leverage capital ratio of 8.38%, 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. At September 30, 2003, the Company's Tier 1 risk-based capital ratio was 13.63%, the total risk-based capital ratio was 14.81%, and Tier 1 leverage capital ratio was 11.00%. YEAR-TO-DATE REVIEW Net income was $65.2 million or $1.30 per diluted share for the nine months ended September 30, 2004, an increase of 68.1% in net income over the $38.8 million or $1.07 per diluted share for the same period a year ago. The net interest margin for the nine months ended September 30, 2004, increased 13 basis points to 4.07% compared to 3.94% in the same period a year ago. Return on average stockholders' equity was 13.56% and return on average assets was 1.53% for the nine months of 2004, compared to a return on average stockholders' equity of 17.10% and a return on average assets of 1.75% for the nine months ended September 30, 2003. The efficiency ratio for the nine months ended September 30, 2004 was 39.08% compared to 35.20% during the same period a year ago. STOCK SPLIT AND INCREASE IN DIVIDEND On August 19, 2004, the Company's Board of Directors approved a two-for-one stock split of the Company's common stock, in the form of a 100% stock dividend, paid on September 28, 2004 to stockholders of record on September 13, 2004. On October 1, 2004, the Company's Board of Directors approved a 29% increase in the common stock dividend to $0.09 per share payable on October 22, 2004. Share and per share numbers for all periods presented reflect the two-for-one stock split that became effective on September 28, 2004. ABOUT CATHAY GENERAL BANCORP Cathay General Bancorp is the one-bank 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, three branches in New York State, two branches in Massachusetts, one in Houston, Texas, one in Washington State, and representative offices in Hong Kong and Shanghai, China. In addition, the Bank's subsidiaries, Cathay Investment Company and GBC Investment & Consulting Company, Inc., both maintain an office in Taipei. As part of its post-merger integration plans to efficiently serve its customers, Cathay Bank closed three additional branches in Southern California on October 15, 2004 and consolidated their operations with nearby branches. Cathay Bank's website is found at http://www.cathaybank.com/. FORWARD-LOOKING STATEMENTS AND OTHER NOTICES Statements made in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, but are not limited to, such words as "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "will," "should," "could," "predicts," "potential," "continue," or the negative of such terms and other comparable terminology or similar expressions. Forward-looking statements are not guarantees. They involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements, of Cathay General Bancorp to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties and other factors include, but are not limited to, adverse developments or conditions related to or arising from: the Company's ability to integrate its operations after its recent merger with GBC Bancorp and realize the benefits of that merger, demographic changes, fluctuations in interest rates, inflation, competition, war and terrorism, general economic or business conditions in California and other regions where Cathay Bank has operations, such as the impact of the California budget deficit, changes in business strategy, including the formation of a real estate investment trust (REIT) and the deregistration of its registered investment company (RIC), and legislative and regulatory developments, particularly the potential effects of recently enacted California tax legislation and the subsequent Franchise Tax Board announcement on December 31, 2003, regarding the taxation of REITs and RICs. These and other factors are further described in Cathay General Bancorp's Annual Report on Form 10-K for the year ended December 31, 2003, its reports and registration statements filed (including those filed by GBC Bancorp prior to the merger) with the Securities and Exchange Commission ("SEC") and other filings it makes in the future with the SEC from time to time. Cathay General Bancorp has no intention and undertakes no obligation to update any forward-looking statements or to publicly announce the results of any revision of any forward-looking statement to reflect future developments or events. Cathay General Bancorp's filings with the SEC are available to the public from commercial document retrieval services and at the website maintained by the SEC at http://www.sec.gov, or by request directed to Cathay General Bancorp, 777 N. Broadway, Los Angeles, CA 90012, Attention: Investor Relations (213) 625-4749. CATHAY GENERAL BANCORP CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) Three months ended Nine months ended (Dollars in September 30, September 30, thousands, except per 2004 2003 %Change 2004 2003 %Change share data) FINANCIAL PERFORMANCE Net interest income before provision for loan losses $54,846 $27,571 99 $158,112 $81,221 95 Provision for loan losses -- 1,650 (100) -- 4,950 (100) Net interest income after provision for loan losses 54,846 25,921 112 158,112 76,271 107 Non-interest income 4,730 4,734 (0) 15,681 16,386 (4) Non-interest expense 21,952 11,118 97 67,911 34,361 98 Income before income tax expense 37,624 19,537 93 105,882 58,296 82 Income tax expense 14,426 6,507 122 40,637 19,487 109 Net income $23,198 $13,030 78 $65,245 $38,809 68 Net income per common share: Basic $0.47 $0.36 31 $1.31 $ 1.08 21 Diluted $0.46 $0.36 28 $1.30 $ 1.07 21 Cash dividends paid per common share $0.07 $0.14 (50) $0.21 $ 0.28 (25) SELECTED RATIOS Return on average assets 1.60% 1.66% (4) 1.53% 1.75% (13) Return on average stockholders' equity 14.08% 16.55% (15) 13.56% 17.10% (21) Efficiency ratio 36.85% 34.42% 7 39.08% 35.20% 11 Dividend payout ratio 15.02% 38.89% (61) 16.00% 26.00% (38) YIELD ANALYSIS (Fully taxable equivalent) Total interest-earning assets 5.25% 5.02% 5 5.14% 5.24% (2) Total interest-bearing liabilities 1.37% 1.47% (7) 1.30% 1.57% (17) Net interest spread 3.88% 3.55% 9 3.84% 3.67% 5 Net interest margin 4.13% 3.80% 9 4.07% 3.94% 3 CAPITAL RATIOS September 30, December 31, September 30, 2004 2003 2003 Tier 1 risk-based capital ratio 10.41% 9.95% 13.63% Total risk-based capital ratio 11.66% 11.21% 14.81% Tier 1 leverage capital ratio 8.38% 7.97% 11.00% CATHAY GENERAL BANCORP CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (In thousands, except share and per share data) September 30, 2004 December 31, 2003 % change Assets Cash and due from banks $104,377 $111,699 (7) Federal funds sold and securities purchased under agreements to resell -- 82,000 (100) Cash and cash equivalents 104,377 193,699 (46) Investment securities (amortized cost of $1,787,245 in 2004 and $1,692,780 in 2003) 1,795,060 1,707,962 5 Loans 3,639,629 3,306,421 10 Less: Allowance for loan losses (66,041) (65,808) 0 Unamortized deferred loan fees, net (11,284) (10,862) 4 Loans, net 3,562,304 3,229,751 10 Other real estate owned, net -- 400 (100) Affordable housing investments, net 41,887 32,977 27 Premises and equipment, net 33,445 35,624 (6) Customers' liability on acceptances 17,496 11,731 49 Accrued interest receivable 19,997 21,553 (7) Goodwill 241,014 241,728 (0) Other intangible assets, net 48,817 52,730 (7) Other assets 28,646 13,760 108 Total assets $5,893,043 $5,541,915 6 Liabilities and Stockholders' Equity Deposits Non-interest-bearing demand deposits $660,909 $633,556 4 Interest-bearing deposits: NOW deposits 256,743 279,679 (8) Money market deposits 621,995 657,638 (5) Savings deposits 428,660 425,076 1 Time deposits under $100 536,387 559,305 (4) Time deposits of $100 or more 2,036,641 1,872,827 9 Total deposits 4,541,335 4,428,081 3 Federal funds purchased and securities sold under agreement to repurchase 77,500 82,500 (6) Advances from the Federal Home Loan Bank 429,077 258,313 66 Other borrowings 15,651 27,622 (43) Acceptances outstanding 17,496 11,731 49 Junior subordinated notes 53,901 53,856 0 Other liabilities 80,735 60,516 33 Total liabilities 5,215,695 4,922,619 6 Total stockholders' equity 677,348 619,296 9 Total liabilities and stockholders' equity $5,893,043 $5,541,915 6 Book value per share $13.59 $12.48 9 Number of shares outstanding 49,848,804 49,608,182 CATHAY GENERAL BANCORP CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) Three months ended Nine months ended (In thousands, September 30, September 30, except share and per share data) 2004 2003 2004 2003 INTEREST INCOME Interest on loans $51,022 $27,562 $144,251 $81,532 Interest on securities 18,775 8,959 55,454 26,506 Interest on federal funds sold and securities Purchased under agreements to resell 25 11 102 312 Interest on deposits with banks 37 21 102 35 Total interest income 69,859 36,553 199,909 108,385 INTEREST EXPENSE Time deposits of $100 or more 8,230 4,712 22,855 14,944 Other deposits 4,439 2,381 12,104 7,660 Other borrowed funds 2,344 1,889 6,838 4,560 Total interest expense 15,013 8,982 41,797 27,164 Net interest income before provision for loan losses 54,846 27,571 158,112 81,221 Provision for loan losses -- 1,650 -- 4,950 Net interest income after provision for loan losses 54,846 25,921 158,112 76,271 NON-INTEREST INCOME Securities gains (losses), net (257) 1,690 961 7,343 Letters of credit commissions 1,121 542 3,218 1,536 Depository service fees 1,927 1,385 5,759 4,190 Other operating income 1,939 1,117 5,743 3,317 Total non-interest income 4,730 4,734 15,681 16,386 NON-INTEREST EXPENSE Salaries and employee benefits 12,541 6,537 37,879 20,261 Occupancy expense 2,102 1,094 6,035 2,999 Computer and equipment expense 1,412 766 5,262 2,418 Professional services expense 1,723 901 4,948 2,845 FDIC and State assessments 245 145 778 402 Marketing expense 568 392 1,833 1,241 Other real estate owned expense 27 10 543 139 Operations of affordable housing investments 681 596 2,076 1,824 Amortization of core deposit intangibles 1,333 47 4,000 143 Other operating expense 1,320 630 4,557 2,089 Total non-interest expense 21,952 11,118 67,911 34,361 Income before income tax expense 37,624 19,537 105,882 58,296 Income tax expense 14,426 6,507 40,637 19,487 Net income 23,198 13,030 65,245 38,809 Other comprehensive income (loss), net of tax 12,146 (4,639) (4,640) 780 Total comprehensive income $35,344 $8,391 $60,605 $ 39,589 Net income per common share: Basic $0.47 $ 0.36 $1.31 $1.08 Diluted $0.46 $ 0.36 $1.30 $1.07 Cash dividends paid per common share $0.07 $ 0.14 $0.21 $0.28 Basic average common shares outstanding 49,829,314 36,067,164 49,754,594 36,035,810 Diluted average common shares outstanding 50,476,343 36,446,996 50,327,490 36,330,670 CATHAY GENERAL BANCORP AVERAGE BALANCES - SELECTED CONSOLIDATED FINANCIAL INFORMATION (Unaudited) For the three months ended, (In thousands) September 30, September 30, June 30, 2004 2003 2004 Interest-earning assets Federal funds sold and securities purchased under agreements to resell $8,810 $6,054 $16,462 Investment securities 1,755,309 939,232 1,780,452 Loans and leases 3,565,067 1,981,930 3,478,180 Deposits with banks 4,866 2,285 5,900 Total interest-earning assets $5,334,052 $2,929,501 $5,280,994 Interest-bearing liabilities Interest-bearing checking deposits $864,847 $347,964 $873,219 Savings deposits 425,175 317,156 423,052 Time deposits 2,570,964 1,494,803 2,465,099 Total interest-bearing deposits $3,860,986 $2,159,923 $3,761,370 Other borrowed funds 499,204 262,445 572,163 Total interest-bearing liabilities 4,360,190 2,422,368 4,333,533 Non-interest-bearing demand deposits 669,797 326,803 659,806 Total deposits and other borrowed funds $5,029,987 $2,749,171 $4,993,339 Total average assets $5,778,209 $3,108,858 $5,731,908 Total average stockholders' equity $655,309 $312,393 $641,866 For the nine months ended, (In thousands) September 30, September 30, 2004 2003 Interest-earning assets Federal funds sold and securities purchased under agreements to resell $16,425 $35,218 Investment securities 1,759,921 822,773 Loans and leases 3,458,690 1,948,381 Deposits with banks 5,280 1,299 Total interest-earning assets $5,240,316 $2,807,671 Interest-bearing liabilities Interest-bearing checking deposits $889,317 $342,346 Savings deposits 421,917 308,217 Time deposits 2,489,704 1,466,330 Total interest-bearing deposits $3,800,938 $2,116,893 Other borrowed funds 495,931 190,052 Total interest-bearing liabilities 4,296,869 2,306,945 Non-interest-bearing demand deposits 654,911 296,652 Total deposits and other borrowed funds $4,951,780 $2,603,597 Total average assets $5,681,833 $2,968,371 Total average stockholders' equity $642,531 $303,510 SOURCE Cathay General Bancorp -0- 10/21/2004 /CONTACT: Heng W. Chen of Cathay General Bancorp, +1-213-625-4752/ /Web site: http://www.cathaybank.com / (CATY) CO: Cathay General Bancorp ST: California IN: FIN SU: ERN STS DIV