8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.   20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  July 29, 2009

CATHAY GENERAL BANCORP

(Exact name of registrant as specified in its charter)

Delaware	0-18630	95-4274680
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

777 North Broadway, Los Angeles, California   90012

           (Address of principal executive offices)           (Zip Code)

Registrant’s telephone number, including area code:                   (213) 625-4700

Not Applicable

 (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 Item 2.02          Results of Operations and Financial Condition

      On July 29, 2009, Cathay General Bancorp announced, in a press release, its financial results for the quarter ended June 30, 2009, and that its Board of Directors declared a cash dividend of one cent per common share payable August 20, 2009, to stockholders of record at the close of business on August 10, 2009.  That press release is attached hereto as Exhibit 99.1.

      The foregoing information and the attached exhibit are intended to be furnished only and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933.

Item 9.01           Financial Statements and Exhibits.

(d)          Exhibits

99.1     Press Release of Cathay General Bancorp dated July 29, 2009.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:  July 29, 2009

CATHAY GENERAL BANCORP
By:	/s/ Heng W. Chen
	Heng W. Chen
	Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

Number	Exhibit
99.1	Press Release of Cathay General Bancorp dated July 29, 2009.

EX-99.1

Page 1

FOR IMMEDIATE RELEASE

For:	Cathay General Bancorp	Contact: Heng W. Chen
	777 N. Broadway	(626) 279-3652
	Los Angeles, CA 90012

CATHAY GENERAL BANCORP REPORTS SECOND QUARTER 2009 RESULTS

Los Angeles, Calif., July 29:  Cathay General Bancorp (the “Company”, NASDAQ: CATY), the holding company for Cathay Bank (the “Bank”), today announced results for the second quarter of 2009.

FINANCIAL PERFORMANCE

	Second Quarter 2009			Second Quarter 2008
Net (loss)/income	$	(11.4) million		$	19.2 million
Net (loss)/income available to common stockholders	$	(15.5) million		$	19.2 million
(Loss)/basic earnings per share	$	(0.31	)	$	0.39
(Loss)/ diluted earnings per share	$	(0.31	)	$	0.39
Return on average assets		-0.40	%		0.73	%
Return on average total stockholders' equity		-3.55	%		7.66	%
Efficiency ratio		54.87	%		41.34	%

SECOND QUARTER HIGHLIGHTS

· Second quarter net loss was $11.4 million compared to a net income of $10.2 million for the first quarter of 2009, and compared to net income of $19.2 million in the same quarter a year ago.  Second quarter net loss to common stockholders was $15.5 million, which was after the deduction of $4.1 million for dividends on preferred stock, compared to net income available to common stockholders of $6.2 million for the first quarter of 2009.

· Loss per share was $0.31 for the second quarter, compared to diluted earnings per share of $0.12 in the first quarter of 2009, and compared to diluted earnings per share of $0.39 in the same quarter a year ago.

· Total allowance for credit losses to total loans at June 30, 2009 strengthened to 2.10% from 1.87% at March 31, 2009, with a provision for credit losses of $70.2 million compared to $47.0 million in the first quarter of 2009, and compared to $20.5 million the same quarter a year ago.

· Capital ratios remain strong with a total capital ratio of 14.23% which is substantially higher than the 10% total capital ratio for well-capitalized status.

· For the first half of 2009, total deposits excluding brokered deposits increased by $919.2 million, or a 31.4% annualized growth.

· Results indicated the Company and the Bank would remain well capitalized for regulatory purposes under stress test economic scenario.

“Our second quarter results continue to be significantly impacted by the continuing recession and the ongoing slowdown in residential housing.  We recorded a provision for credit losses during the second quarter of $70.2 million which increased our allowance for credit losses to 2.10% of total loans,” commented Dunson Cheng, Chairman of the Board, Chief Executive Officer, and President of the Company.

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“During the first six months of the year, our total deposits grew strongly by $543 million, or 8.0%, net of a $376 million reduction of brokered deposits, which helped us to improve our net loan to deposit ratio to 96.2% at June 30, 2009.  We are especially pleased that our core deposits increased $425 million to $3.1 billion, or a 32.1% annualized growth,” said Peter Wu, Executive Vice Chairman and Chief Operating Officer.

“Our focus continues to be managing through this challenging credit cycle, resolving problem assets on a case by case basis without resorting to bulk sales and maintaining strong liquidity. So far in the third quarter, we have sold or entered into contracts to sell $25 million of foreclosed real estate at a small gain to our June 30 carrying value.  With the improving investment sentiment, we  expect an increase in the pace of sales during the remainder of the third quarter as we continue to resolve problem assets,” concluded Dunson Cheng.

CAPITAL ADEQUACY AND RESULTS OF CATHAY STRESS TEST

At June 30, 2009, the Tier 1 risk-based capital ratio of 12.39%, total risk-based capital ratio of 14.23%, and Tier 1 leverage capital ratio of 9.48%, continue to place the Company in the “well capitalized” category, which is defined as institutions with a Tier 1 risk-based capital ratio equal to or greater than 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%.

During the second quarter, management followed the tenets of the Supervisory Capital Assessment Program (SCAP) and applied the “more adverse” stress test guidelines to our loan portfolio. The Company was not one of the banks subject to the SCAP stress test; however, management believed that it was prudent risk management to conduct a similar test on our loan portfolio. The loss assumptions we used in our stress test were similar to the indicative loss rates disclosed in the SCAP white paper and simulates an economic downturn scenario that is more severe than what we are currently experiencing.  The results of our stress test indicated that the Company and the Bank would remain well capitalized for regulatory purposes under the SCAP's economic scenario.

INCOME STATEMENT REVIEW

Net interest income before provision for credit losses

Net interest income before provision for credit losses decreased to $66.0 million during the second quarter of 2009, a decline of $6.1 million, or 8.5%, compared to the $72.1 million during the same quarter a year ago.  The decrease was due primarily to the larger decline in earning asset yields compared to rates paid for securities sold under agreements to repurchase and other borrowings.

The net interest margin, on a fully taxable-equivalent basis, was 2.49% for the second quarter of 2009.  The net interest margin decreased 20 basis points from 2.69% in the first quarter of 2009, of which 14 basis points was due to higher levels of nonaccrual loans, and decreased 45 basis points from 2.94% in the second quarter of 2008. The decrease in net interest income from the prior year primarily resulted from increases in non-accrual loans and the increase in the borrowing rate on our long term repurchase agreements and other borrowed funds compared to the decreases in the prime rate.  The majority of our variable rate loans contain interest rate floors, which help limit the impact of the recent decreases of the prime interest rate.

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For the second quarter of 2009, the yield on average interest-earning assets was 4.88% on a fully taxable-equivalent basis, the cost of funds on average interest-bearing liabilities equaled 2.75%, and the cost of interest bearing deposits was 2.18%.  In comparison, for the second quarter of 2008, the yield on average interest-earning assets was 5.86%, cost of funds on average interest-bearing liabilities equaled 3.34%, and the cost of interest bearing deposits was 3.03%. 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, decreased 39 basis points to 2.13% for the second quarter ended June 30, 2009, from 2.52% for the same quarter a year ago, primarily due to the reasons discussed above.

The cost of deposits, including demand deposits, decreased 32 basis points to 1.95% in the second quarter of 2009 compared to 2.27% in the first quarter of 2009 due primarily to growth in core deposits and decreased 72 basis points from 2.67% in the same quarter a year ago partly due to decrease in market rates and partly to growth in core deposits.

Provision for credit losses

The provision for credit losses was $70.2 million for the second quarter of 2009 compared to $47.0 million for the first quarter of 2009 and compared to $20.5 million in the second quarter of 2008.  During the second quarter, the Company’s provision for credit losses included re-estimation of certain of the Company’s loss reserve factors based on a newly updated migration analysis reflecting more recent loan experience. The provision for credit losses was based on the review of the adequacy of the allowance for loan losses at June 30, 2009. The provision for credit losses represents the charge against current earnings that is determined by management, through a credit review process, as the amount needed to establish an allowance that management believes to be sufficient to absorb credit losses inherent in the Company’s loan portfolio.  The following table summarizes the charge-offs and recoveries for the periods as indicated:

	For the three months ended June 30,				For the six months ended June 30,
(In thousands)	2009		2008		2009		2008
Charge-offs:
Commercial loans	$	11,087	$	1,870	$	22,165	$	2,121
Construction loans- residential		27,893		879		44,070		5,009
Construction loans- other		2,884		-		10,107		-
Real estate loans		13,095		207		14,456		382
Real estate- land loans		1,357		-		3,734		339
Installment and other loans		4		-		4		-
Total charge-offs		56,320		2,956		94,536		7,851
Recoveries:
Commercial loans		106		380		304		567
Construction loans- residential		174		83		174		83
Construction loans- other		1		-		1		-
Real estate- land loans		1		-		1		-
Installment and other loans		17		8		17		12
Total recoveries		299		471		497		662
Net Charge-offs	$	56,021	$	2,485	$	94,039	$	7,189

Total charge-offs of $56.3 million for the second quarter of 2009 included $18.7 million of charge-offs on fourteen multi-family residential construction loans, $9.2 million of charge-offs on four single family residential construction loans, $2.9 million of charge-offs on commercial property construction loans, $10.6 million of charge-offs on commercial real estate loans, $11.1 million on commercial loans, $2.4 million charge-offs on residential mortgage loans, and $1.4 million of charge-offs on land loans.  Net loan charge-offs increased from $38.0 million in the first quarter of 2009 to $56.0 million in the second quarter of 2009 and compared to $2.5 million in the second quarter of last year as a result of the continuing weak economy.

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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 $32.4 million for the second quarter of 2009, an increase of $23.2 million compared to the non-interest income of $9.2 million for the second quarter of 2008. The increase in non-interest income was primarily due to increases in net gains on sale of available-for-sale securities of $24.6 million. Offsetting the increase were primarily a $1.2 million decrease in gains from foreign currency and exchange transactions and a $343,000 decrease in letters of credit commissions.

Non-interest expense

Non-interest expense increased $20.4 million, or 60.7%, to $54.0 million in the second quarter of 2009 compared to $33.6 million in the same quarter a year ago.  The efficiency ratio was 54.87% in the second quarter of 2009 compared to 41.34% for the same period a year ago due to increases in other real estate owned (“OREO”) expense and Federal Deposit Insurance Corporation (“FDIC”) and State assessments.

OREO expense increased $13.2 million to $13.9 million in the second quarter of 2009 from $641,000 in the same quarter a year ago primarily due to a $13.9 million provision for OREO write-down and a $591,000 increase in OREO expense offset by a $1.1 million gain on the sale of OREO.

FDIC and State assessments increased $6.6 million to $8.1 million in the second quarter of 2009 from $1.5 million in the same quarter a year ago of which $5.5 million was from the special assessment based on total assets as of June 30, 2009. Occupancy expense increased $764,000 primarily due to increases in depreciation expense of $770,000 primarily related to our new administrative offices at 9650 Flair Drive, El Monte which opened in January 2009, which were partially offset by lower rental expense of $218,000.  Professional service expense increased $265,000, or 8.6%, primarily due to increases in legal expenses and collection expenses.  Expense from operations of affordable housing investments increased $454,000 to $2.2 million compared to $1.7 million in the same quarter a year ago as a result of additional investments in affordable housing projects.  Other operating expenses increased $880,000 primarily due to a $983,000 charge for closure of two branches.

Offsetting the above described increases were decreases of $1.3 million in salaries and employee benefits and decreases of $392,000 in marketing expense.  Salaries and employee benefits decreased primarily due to a $650,000 decrease in bonus accruals and a $492,000 decrease in option compensation expense.

Income taxes

The tax benefit for the second quarter of 2009 resulted from the pretax loss for the quarter and the utilization of low income housing tax credits.

BALANCE SHEET REVIEW

Total assets decreased by $173.6 million, or 1.5%, to $11.4 billion at June 30, 2009, from $11.6 billion at December 31, 2008.

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The changes in the loan composition from December 31, 2008, are presented below:

Type of Loans:	June 30, 2009			December 31, 2008			% Change
	(Dollars in thousands)
Commercial	$	1,467,338		$	1,620,438			(9	)
Residential mortgage		640,381			622,741			3
Commercial mortgage		4,126,753			4,132,850			(0	)
Equity lines		184,108			168,756			9
Real estate construction		825,836			913,168			(10	)
Installment		7,364			11,340			(35	)
Other		2,484			3,075			(19	)
Gross loans and leases	$	7,254,264		$	7,472,368			(3	)
Allowance for loan losses		(147,687	)		(122,093	)		21
Unamortized deferred loan fees		(9,495	)		(10,094	)		(6	)
Total loans and leases, net	$	7,097,082		$	7,340,181			(3	)

Total deposits were $7.4 billion at June 30, 2009, an increase of $543.3 million, or 8.0%, from $6.8 billion at December 31, 2008, primarily due to increases of $258.0 million, or 39.1%, in money market accounts and increases of $494.6 million, or 15.3%, in time deposits of $100,000 or more offset by decreases of $287.8 million, or 17.5%, in time deposits under $100,000.  Brokered deposits which are reported in time deposits under $100,000 declined $375.9 million to $613.4 million at June 30, 2009 from $989.3 million at December 31, 2008.  The changes in the deposit composition from December 31, 2008, are presented below:

Deposits	June 30, 2009		December 31, 2008		% Change
	(Dollars in thousands)
Non-interest-bearing demand	$	764,553	$	730,433		5
NOW		286,893		257,234		12
Money market		917,472		659,454		39
Savings		330,981		316,263		5
Time deposits under $100,000		1,356,647		1,644,407		(17	)
Time deposits of $100,000 or more		3,723,509		3,228,945		15
Total deposits	$	7,380,055	$	6,836,736		8

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ASSET QUALITY REVIEW

At June 30, 2009, total non-accrual loans increased to $383.1 million, an increase of $161.9 million, or 73.2%, from $221.2 million at March 31, 2009 and an increase of $201.9 million, or 111%, from $181.2 million at December 31, 2008.  A summary of non-accrual loans by collateral type is shown below:

CollateralType	California		No.of Borrowers		Other States		No.of Borrowers		Total		No.of Borrowers
	(Dollars in thousands except no. of borrowers)
Commercial real estate	$	106,327		19	$	26,834		31	$	133,161		50
Commercial		27,951		21		6,893		9		34,844		30
Construction- residential		133,748		25		20,600		8		154,348		33
Construction- non-residential		22,962		6		835		1		23,797		7
Residential mortgage		7,198		22		2,671		8		9,869		30
Land		17,145		13		9,915		5		27,060		18
Total	$	315,331		106	$	67,748		62	$	383,079		168

Included in nonaccrual commercial real estate loans is a loan with an outstanding balance of $47.6 million to a borrower who filed for bankruptcy in March 2009. Included in nonaccrual residential construction loans are six residential condominium construction loans totaling $64.5 million where the borrower continues to be involved in the marketing of the units or in the completion of the project.

At June 30, 2009, total residential construction loans were $372.2 million of which $8.8 million were in the Central Valley in California and $31.4 million were in San Bernardino and Riverside counties in California. Residential construction loans of $7.5 million in the Central Valley and $19.9 million in San Bernardino and Riverside counties were on non-accrual status as of June 30, 2009.  At June 30, 2009, total land loans were $210.0 million of which $31.2 million were in San Bernardino, Riverside, and Imperial counties and $2.8 million were in the Central Valley.  Land loans of $2.8 million in the Central Valley and a land loan of 0.4 million in Riverside were on non-accrual status as of June 30, 2009.  A land loan of $22.2 million in Nevada was restructured during the second quarter to a below market interest rate and is included in the troubled debt restructured loans total.

At June 30, 2009, net carrying value of other real estate owned increased $9.8 million, or 16.1%, to $70.8 million from $61.0 million at December 31, 2008.  At June 30, 2009, $37.7 million of OREO was located in California, $26.8 million of OREO was located in Texas, $4.0 million of OREO was in Nevada, and $2.4 million in all other states.

Non-performing assets to total assets was 4.2% at June 30, 2009, compared to 2.2% at December 31, 2008.  Total non-performing assets increased $221.9 million, or 88.1%, to $473.7 million at June 30, 2009, compared with $251.8 million at December 31, 2008, primarily due to a $201.9 million increase in non-accrual loans.

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The allowance for loan losses was $147.7 million and the allowance for off-balance sheet unfunded credit commitments was $4.9 million at June 30, 2009, and represented the amount that the Company believes to be sufficient to absorb credit losses inherent in the Company’s loan portfolio.  The allowance for credit losses, the sum of allowance for loan losses and for off-balance sheet unfunded credit commitments, was $152.6 million at June 30, 2009, compared to $129.4 million at December 31, 2008, an increase of $23.2 million, or 17.9%.  The allowance for credit losses represented 2.10% of period-end gross loans and 38.1% of non-performing loans at June 30, 2009.  The comparable ratios were 1.73% of period-end gross loans and 68.9% of non-performing loans at December 31, 2008.  Results of the changes to the Company’s non-performing assets and troubled debt restructurings are highlighted below:

(Dollars in thousands)	June 30, 2009			December 31, 2008			% Change
Non-performing assets
Accruing loans past due 90 days or more	$	16,952		$	6,733			152
Non-accrual loans:
Construction- residential		154,348			100,169			54
Construction- non-residential		23,797			22,012			8
Land		27,060			12,608			115
Commercial real estate, excluding land		133,161			19,733			575
Commercial		34,844			20,904			67
Residential mortgage		9,869			5,776			71
Total non-accrual loans:	$	383,079		$	181,202			111
Total non-performing loans		400,031			187,935			113
Other real estate owned and other assets		73,715			63,892			15
Total non-performing assets	$	473,746		$	251,827			88
Troubled debt restructurings	$	23,705		$	924			2,465
Allowance for loan losses	$	147,687		$	122,093			21
Allowance for off-balance sheet credit commitments		4,898			7,332			(33	)
Allowance for credit losses	$	152,585		$	129,425			18
Total gross loans outstanding, at period-end	$	7,254,264		$	7,472,368			(3	)
Allowance for loan losses to non-performing loans, at period-end		36.92	%		64.97	%
Allowance for loan losses to gross loans, at period-end		2.04	%		1.63	%
Allowance for credit losses to non-performing loans, at period-end		38.14	%		68.87	%
Allowance for credit losses to gross loans, at period-end		2.10	%		1.73	%

DIVIDEND DECLARATION

On July 29, 2009, the Board of Directors of the Company declared a cash dividend of one cent per common share payable August 20, 2009, to stockholders of record at the close of business on August 10, 2009. “Although we remain well-capitalized, we believe that reducing our dividend is a prudent measure in view of the continuing uncertainties in the economy and the challenges facing the banking industry,” said Dunson Cheng, Chairman of the Board, Chief Executive Officer, and President of the Company.  “We recognize the value of dividends and understand the importance of dividends to our stockholders. We also appreciate the steadfast loyalty of our stockholders.  Thus, the decision to reduce the dividend was a difficult one to make and was made only after thoughtfully considering the long-term interests of our stockholders.  It is important for our stockholders to understand that we are committed to returning the dividend to a normalized rate as soon as practicable,” Mr. Cheng continued.

YEAR-TO-DATE REVIEW

Net loss was $1.2 million, a $47.7 million, or 103%, decrease compared to net income of $46.5 million for the same period a year ago.  Loss per share was $0.19 compared to $0.94 earnings per diluted share for the same period a year ago due primarily to increases in the provision for loan losses, lower net interest income and higher provision for OREO write-downs.  The net interest margin for the six months ended June 30, 2008, decreased 46 basis points to 2.59% compared to 3.05% for the same period a year ago.

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Return on average stockholders’ equity was negative 0.19% and return on average assets was negative 0.02% for the six months ended June 30, 2009, compared to a return on average stockholders’ equity of 9.32% and a return on average assets of 0.90% for the same period of 2008.  The efficiency ratio for the six months ended June 30, 2009 was 46.58% compared to 40.13% for the same period a year ago.

ABOUT CATHAY GENERAL BANCORP

Cathay General Bancorp is the holding company for Cathay Bank, a California state-chartered bank. Founded in 1962, Cathay Bank offers a wide range of financial services. Cathay Bank currently operates 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.

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,” “could,” “estimates,” “expects,” “hopes,” “intends,” “may,” “plans,” “projects,” “seeks,” “shall,” “should,” “will,” “predicts,” “potential,” “continue,” and variations of these words and similar expressions. Forward-looking statements are based on estimates, beliefs, projections, and assumptions 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: significant volatility and deterioration in the credit and financial markets; adverse changes in general economic conditions; the effects of the Emergency Economic Stabilization Act, the American Recovery and Reinvestment Act, and the Troubled Asset Relief Program (TARP) and any changes or amendments thereto; deterioration in asset or credit quality; the availability of capital; the impact of any goodwill impairment that may be determined; acquisitions of other banks, if any; fluctuations in interest rates; the soundness of other financial institutions; expansion into new market areas; earthquakes, wildfires, or other natural disasters; competitive pressures; changes in laws, regulations, and accounting rules, or their interpretations; legislative, judicial, or regulatory actions and developments against us; and general economic or business conditions in California and other regions where Cathay Bank has operations, including, but not limited to, adverse changes in economic conditions resulting from the continuation or worsening of the current economic downturn.

These and other factors are further described in Cathay General Bancorp's Annual Report on Form 10-K for the year ended December 31, 2008 (at Item 1A in particular), other reports and registration statements filed with the Securities and Exchange Commission (“SEC”), and other filings it 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.

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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.

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CATHAY GENERAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

	Three months ended June 30,									Six months ended June 30,
(Dollars in thousands, except per share data)	2009			2008			% Change			2009			2008			% Change
FINANCIAL PERFORMANCE
Net interest income before provision for credit losses	$	65,997		$	72,114			(8	)	$	136,422		$	147,304			(7	)
Provision for credit losses		70,200			20,500			242			117,200			28,000			319
Net interest income after provision for credit losses		(4,203	)		51,614			(108	)		19,222			119,304			(84	)
Non-interest income		32,434			9,175			254			60,095			15,699			283
Non-interest expense		54,006			33,604			61			91,529			65,409			40
(Loss)/income before income tax (benefit)/expense		(25,775	)		27,185			(195	)		(12,212	)		69,594			(118	)
Income tax (benefit)/expense		(14,498	)		7,804			(286	)		(11,324	)		22,763			(150	)
Net (loss)/income		(11,277	)		19,381			(158	)		(888	)		46,831			(102	)
Net (loss)/income attributable to noncontrolling interest		(150	)		(150	)		-			(301	)		(301	)		-
Net (loss)/income attributable to Cathay General Bancorp		(11,427	)		19,231			(159	)		(1,189	)		46,530			(103	)
Dividends on preferred stock		(4,083	)		-			100			(8,163	)		-			100
Net (loss)/income available to common stockholders	$	(15,510	)	$	19,231			(181	)	$	(9,352	)	$	46,530			(120	)
Net (loss)/income available to common stockholders per common share:
Basic	$	(0.31	)	$	0.39			(179	)	$	(0.19	)	$	0.94			(120	)
Diluted	$	(0.31	)	$	0.39			(179	)	$	(0.19	)	$	0.94			(120	)
Cash dividends paid per common share	$	0.080		$	0.105			(24	)	$	0.185		$	0.210			(12	)
SELECTED RATIOS
Return on average assets		-0.40	%		0.73	%		(155	)		-0.02	%		0.90	%		(102	)
Return on average total stockholders’ equity		-3.55	%		7.66	%		(146	)		-0.19	%		9.32	%		(102	)
Efficiency ratio		54.87	%		41.34	%		33			46.58	%		40.13	%		16
Dividend payout ratio		n/m			26.96	%		n/m			n/m			22.28	%		n/m
* n/m- not meaningful
YIELD ANALYSIS (Fully taxable equivalent)
Total interest-earning assets		4.88	%		5.86	%		(17	)		5.07	%		6.16	%		(18	)
Total interest-bearing liabilities		2.75	%		3.34	%		(18	)		2.86	%		3.56	%		(20	)
Net interest spread		2.13	%		2.52	%		(15	)		2.21	%		2.60	%		(15	)
Net interest margin		2.49	%		2.94	%		(15	)		2.59	%		3.05	%		(15	)
CAPITAL RATIOS	June 30, 2009			June 30, 2008			December 31, 2008			Well Capitalized Requirements			Minimum Regulatory Requirements
Tier 1 risk-based capital ratio		12.39	%		9.38	%		12.12	%		6.0	%		4.0	%
Total risk-based capital ratio		14.23	%		11.02	%		13.94	%		10.0	%		8.0	%
Tier 1 leverage capital ratio		9.48	%		7.83	%		9.79	%		5.0	%		4.0	%

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Page 11

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Inthousands,exceptshareandpersharedata)	June30,2009			December31,2008			%change
Assets
Cash and due from banks	$	104,273		$	84,818			23
Federal funds sold		33,000			-			100
Cash and cash equivalents		137,273			84,818			62
Short-term investments		49,032			25,000			96
Securities purchased under agreements to resell		-			201,000			(100	)
Securities available-for-sale (amortized cost of $3,177,575 in 2009 and $3,043,566 in 2008)		3,158,450			3,083,817			2
Trading securities		75,334			12			100
Loans		7,254,264			7,472,368			(3	)
Less:  Allowance for loan losses		(147,687	)		(122,093	)		21
Unamortized deferred loan fees, net		(9,495	)		(10,094	)		(6	)
Loans, net		7,097,082			7,340,181			(3	)
Federal Home Loan Bank stock		71,791			71,791			-
Other real estate owned, net		70,838			61,015			16
Affordable housing investments, net		99,674			103,562			(4	)
Premises and equipment, net		107,987			104,107			4
Customers’ liability on acceptances		26,398			39,117			(33	)
Accrued interest receivable		41,495			43,603			(5	)
Goodwill		319,468			319,557			(0	)
Other intangible assets, net		26,094			29,246			(11	)
Other assets		128,077			75,813			69
Total assets	$	11,408,993		$	11,582,639			(1	)
Liabilities and Stockholders’ Equity
Deposits
Non-interest-bearing demand deposits	$	764,553		$	730,433			5
Interest-bearing deposits:
NOW deposits		286,893			257,234			12
Money market deposits		917,472			659,454			39
Savings deposits		330,981			316,263			5
Time deposits under $100,000		1,356,647			1,644,407			(17	)
Time deposits of $100,000 or more		3,723,509			3,228,945			15
Total deposits		7,380,055			6,836,736			8
Federal funds purchased		-			52,000			(100	)
Securities sold under agreements to repurchase		1,557,000			1,610,000			(3	)
Advances from the Federal Home Loan Bank		929,362			1,449,362			(36	)
Other borrowings for affordable housing investments		19,390			19,500			(1	)
Long-term debt		171,136			171,136			-
Acceptances outstanding		26,398			39,117			(33	)
Other liabilities		71,816			103,401			(31	)
Total liabilities		10,155,157			10,281,252			(1	)
Commitments and contingencies		-			-			-
Stockholders’ Equity
Preferred stock, 10,000,000 shares authorized, 258,000 issued and outstanding in 2009 and 2008		242,242			240,554			-
Common stock, $0.01 par value, 100,000,000 shares authorized, 53,780,633 issued and 49,573,068 outstanding at June 30, 2009 and 53,715,815 issued and 49,508,250 outstanding at December 31, 2008		538			537			0
Additional paid-in-capital		512,299			508,613			1
Accumulated other comprehensive income, net		(11,084	)		23,327			(148	)
Retained earnings		627,077			645,592			(3	)
Treasury stock, at cost (4,207,565 shares in 2009 and in 2008)		(125,736	)		(125,736	)		-
Total Cathay General Bancorp stockholders' equity		1,245,336			1,292,887			(4	)
Noncontrolling interest		8,500			8,500			-
Total equity		1,253,836			1,301,387			(4	)
Total liabilities and equity	$	11,408,993		$	11,582,639			(1	)
Book value per common stock share	$	19.93		$	20.90			(5	)
Number of common stock shares outstanding		49,573,068			49,508,250			0

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Page 12

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three months ended June 30,						Six months ended June 30,
	2009			2008			2009			2008
	(In thousands, except share and per share data)
INTEREST AND  DIVIDEND INCOME
Loan receivable, including loan fees	$	98,650		$	110,850		$	202,644		$	227,875
Investment securities- taxable		30,321			28,426			62,515			56,932
Investment securities- nontaxable		207			324			453			690
Federal Home Loan Bank stock		-			928			-			1,681
Agency preferred stock		-			592			-			1,308
Federal funds sold and securities purchased under agreements to resell		1			2,915			1,303			9,395
Deposits with banks		73			27			131			481
Total interest and dividend income		129,252			144,062			267,046			298,362
INTEREST EXPENSE
Time deposits of $100,000 or more		21,876			28,304			45,113			60,172
Other deposits		13,459			15,184			29,574			32,419
Securities sold under agreements to repurchase		16,036			14,917			31,972			29,542
Advances from Federal Home Loan Bank		10,552			11,323			21,117			23,444
Long-term debt		1,319			2,010			2,824			4,859
Short-term borrowings		13			210			24			622
Total interest expense		63,255			71,948			130,624			151,058
Net interest income before provision for credit losses		65,997			72,114			136,422			147,304
Provision for credit losses		70,200			20,500			117,200			28,000
Net interest income after provision for loan losses		(4,203	)		51,614			19,222			119,304
NON-INTEREST INCOME
Securities gains, net		26,938			2,333			49,436			2,333
Letters of credit commissions		1,033			1,376			2,009			2,816
Depository service fees		1,269			1,175			2,668			2,447
Other operating income		3,194			4,291			5,982			8,103
Total non-interest income		32,434			9,175			60,095			15,699
NON-INTEREST EXPENSE
Salaries and employee benefits		15,073			16,408			31,959			34,267
Occupancy expense		4,006			3,242			8,127			6,525
Computer and equipment expense		1,990			1,932			3,886			4,176
Professional services expense		3,360			3,095			6,327			5,480
FDIC and State assessments		8,054			1,545			10,908			1,836
Marketing expense		456			848			1,484			1,865
Other real estate owned expense (income)		13,873			641			16,015			624
Operations of affordable housing investments		2,150			1,696			3,848			2,521
Amortization of core deposit intangibles		1,689			1,722			3,400			3,474
Other operating expense		3,355			2,475			5,575			4,641
Total non-interest expense		54,006			33,604			91,529			65,409
(Loss)/income before income tax (benefit)/expense		(25,775	)		27,185			(12,212	)		69,594
Income tax (benefit)/expense		(14,498	)		7,804			(11,324	)		22,763
Net (loss)/income		(11,277	)		19,381			(888	)		46,831
Less: net income attributable to noncontrolling interest		(150	)		(150	)		(301	)		(301	)
Net (loss)/income attributable to Cathay General Bancorp		(11,427	)		19,231			(1,189	)		46,530
Dividends on preferred stock		(4,083	)		-			(8,163	)		-
Net (loss)/income available to common stockholders	$	(15,510	)	$	19,231		$	(9,352	)	$	46,530
Net (loss)/income available to common stockholders per common share:
Basic	$	(0.31	)	$	0.39		$	(0.19	)	$	0.94
Diluted	$	(0.31	)	$	0.39		$	(0.19	)	$	0.94
Cash dividends paid per common share	$	0.080		$	0.105		$	0.185		$	0.210
Basic average common shares outstanding		49,554,696			49,389,522			49,543,084			49,367,903
Diluted average common shares outstanding		49,557,514			49,429,348			49,549,323			49,480,439

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Page 13

CATHAY GENERAL BANCORP

AVERAGE BALANCES – SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited)

	Forthethreemonthsended,
(In thousands)	June30,2009					June30,2008					March31,2009
Interest-earning assets	Average Balance		Average Yield/Rate (1) (2)			Average Balance		Average Yield/Rate (1) (2)			Average Balance		Average Yield/Rate (1) (2)
Loans and leases (1)	$	7,342,100		5.39	%	$	7,122,528		6.26	%	$	7,459,092		5.65	%
Taxable investment securities		3,158,622		3.85	%		2,475,628		4.62	%		2,970,700		4.40	%
Tax-exempt investment securities  (2)		19,315		6.60	%		60,781		8.69	%		22,845		6.73	%
FHLB stock		71,791		0.00	%		65,879		5.67	%		71,791		0.00	%
Federal funds sold and securities purchased under agreements to resell		3,989		0.10	%		177,445		6.61	%		80,700		6.54	%
Deposits with banks		37,363		0.78	%		5,188		2.09	%		24,998		0.94	%
Total interest-earning assets	$	10,633,180		4.88	%	$	9,907,449		5.86	%	$	10,630,126		5.26	%
Interest-bearing liabilities
Interest-bearing demand deposits	$	278,944		0.41	%	$	253,559		0.58	%	$	259,535		0.40	%
Money market		834,063		1.56	%		738,206		1.76	%		759,930		1.58	%
Savings deposits		328,274		0.21	%		337,512		0.33	%		311,145		0.22	%
Time deposits		5,064,471		2.50	%		4,452,317		3.58	%		4,961,130		2.94	%
Total interest-bearing deposits	$	6,505,752		2.18	%	$	5,781,594		3.03	%	$	6,291,740		2.54	%
Federal funds purchased		16,747		0.26	%		37,720		2.24	%		16,933		0.26	%
Securities sold under agreements to repurchase		1,559,302		4.12	%		1,551,571		3.87	%		1,580,989		4.09	%
Other borrowed funds		962,405		4.40	%		1,134,448		4.01	%		1,117,844		3.83	%
Long-term debt		171,136		3.09	%		171,136		4.72	%		171,136		3.57	%
Total interest-bearing liabilities		9,215,342		2.75	%		8,676,469		3.34	%		9,178,642		2.98	%
Non-interest-bearing demand deposits		749,573					764,270					734,883
Total deposits and other borrowed funds	$	9,964,915				$	9,440,739				$	9,913,525
Total average assets	$	11,385,388				$	10,561,123				$	11,351,762
Total average equity	$	1,300,169				$	1,017,963				$	1,300,732

	For the six months ended,
(In thousands)	June 30, 2009					June 30, 2008
Interest-earning assets	Average Balance		Average Yield/Rate (1) (2)			Average Balance		Average Yield/Rate (1) (2)
Loans and leases (1)	$	7,400,273		5.52	%	$	6,963,564		6.58	%
Taxable investment securities		3,065,179		4.11	%		2,364,324		4.84	%
Tax-exempt investment securities  (2)		21,071		6.67	%		64,125		8.98	%
FHLB stock		71,791		0.00	%		65,816		5.14	%
Federal funds sold and securities purchased under agreements to resell		42,133		6.24	%		298,560		6.33	%
Deposits with banks		31,214		0.85	%		15,062		6.42	%
Total interest-earning assets	$	10,631,661		5.07	%	$	9,771,451		6.16	%
Interest-bearing liabilities
Interest-bearing demand deposits	$	269,293		0.41	%	$	245,585		0.70	%
Money market deposits		797,202		1.57	%		719,879		1.97	%
Savings deposits		319,757		0.22	%		334,008		0.43	%
Time deposits		5,013,085		2.72	%		4,316,594		3.91	%
Total interest-bearing deposits	$	6,399,337		2.35	%	$	5,616,066		3.32	%
Federal funds purchased		16,840		0.26	%		40,530		2.94	%
Securities sold under agreements to repurchase		1,570,086		4.11	%		1,555,454		3.82	%
Other borrowed funds		1,039,695		4.10	%		1,145,343		4.12	%
Long-term debt		171,136		3.33	%		171,136		5.71	%
Total interest-bearing liabilities		9,197,094		2.86	%		8,528,529		3.56	%
Non-interest-bearing demand deposits		742,269					772,424
Total deposits and other borrowed funds	$	9,939,363				$	9,300,953
Total average assets	$	11,368,574				$	10,431,709
Total average equity	$	1,300,355				$	1,012,690

(1)	Yields and interest earned include net loan fees. Non-accrual loans are included in the average balance.
(2)	The average yield has been adjusted to a fully taxable-equivalent basis for certain securities of states and political subdivisions and other securities held using a statutory Federal income tax rate of 35%.