-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AlJGlLI+r04+NOVePl3oiNZqba1sCv1RIDfDx7bDfYKTv9LZfaVSyHaKEdLEGp2H 2elGKmmunJ5Az1JT5ET9Iw== 0001275287-05-001393.txt : 20050421 0001275287-05-001393.hdr.sgml : 20050421 20050421165854 ACCESSION NUMBER: 0001275287-05-001393 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050421 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050421 DATE AS OF CHANGE: 20050421 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CATHAY GENERAL BANCORP CENTRAL INDEX KEY: 0000861842 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 954274680 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31830 FILM NUMBER: 05765325 BUSINESS ADDRESS: STREET 1: 777 N BROADWAY CITY: LOS ANGELES STATE: CA ZIP: 90012 BUSINESS PHONE: 2136254700 MAIL ADDRESS: STREET 1: 777 NORTH BROADWAY CITY: LOS ANGELES STATE: CA ZIP: 90012 FORMER COMPANY: FORMER CONFORMED NAME: CATHAY BANCORP INC DATE OF NAME CHANGE: 19930328 8-K 1 cg2479.txt ================================================================================ 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): April 21, 2005 CATHAY GENERAL BANCORP (Exact name of registrant as specified in its charter) Delaware 0-18630 95-4274680 (State or other jurisdiction of (Commission (IRS Employer incorporation) File Number) 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 April 21, 2005, Cathay General Bancorp announced, in a press release, its financial results for the quarter ended March 31, 2005. 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. (c) Exhibits 99.1 Press Release of Cathay General Bancorp dated April 21, 2005. 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: April 21, 2005 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 April 21, 2005. EX-99.1 2 cg2479ex991.txt Exhibit 99.1 Page 1 FOR IMMEDIATE RELEASE For: Cathay General Bancorp Contact: Heng W. Chen 777 N. Broadway (213) 625-4752 Los Angeles, CA 90012 CATHAY GENERAL BANCORP ANNOUNCES RECORD EARNINGS OF $25.0 MILLION, OR $0.49 PER SHARE, IN FIRST QUARTER 2005 Los Angeles, Calif., April 21: Cathay General Bancorp (the "Company", NASDAQ: CATY), the holding company for Cathay Bank (the "Bank"), today announced results for the first quarter of 2005. STRONG FINANCIAL PERFORMANCE First Quarter First Quarter 2005 2004 -------------- -------------- Net income $ 25.0 million $ 19.9 million Basic earnings per share $ 0.49 $ 0.40 Diluted earnings per share $ 0.49 $ 0.40 Return on average assets 1.65% 1.45% Return on average stockholders' equity 14.07% 12.71% Efficiency ratio 35.26% 41.92% FIRST QUARTER HIGHLIGHTS .. First quarter earnings increased $5.1 million, or 25%, compared to the same quarter a year ago. .. Fully diluted earnings per share reached $0.49, increasing 22.5%, compared to the same quarter a year ago. .. Gross loans increased by $180.8 million, or 4.7%, from December 31, 2004. .. Deposits increased by $83.6 million, or 1.8%, from December 31, 2004. .. Return on average stockholders' equity was 14.07% and return on average assets was 1.65% for the quarter ended March 31, 2005. .. Non-performing loans decreased $4.3 million from $22.5 million at December 31, 2004, to $18.2 million at March 31, 2005. .. Net interest margin on a fully taxable equivalent basis improved to 4.22% compared to 4.14% for the fourth quarter of 2004. .. Efficiency ratio improved to 35.3% from 41.9% in the first quarter of 2004 and from 39.8% in the fourth quarter of 2004. .. On March 18, 2005, the Company announced that its Board of Directors had approved the repurchase of up to an aggregate of one million shares of its common stock following the completion of the Company's current stock buyback authorization. "Continued strong organic loan growth in all major loan categories, a further improvement in the net interest margin, and low net credit losses were all factors that contributed to the record results," commented Dunson K. Cheng, Chairman of the Board, President, and Chief Executive Officer of the Company. (more) Page 2 "We were pleased with another strong quarter for loan growth which is a further demonstration of the successful integration of Cathay Bank and General Bank," said Peter Wu, Executive Vice Chairman and Chief Operating Officer. "The strong growth in loans was funded by the increase in deposits and paydowns from our securities portfolio. We are optimistic that 2005 should be another record year for Cathay General Bancorp as we build on the momentum that we have under way," concluded Dunson K. Cheng. INCOME STATEMENT REVIEW Net interest income before provision for loan losses Our net interest income before provision for loan losses increased to $58.8 million during the first quarter of 2005, or 15.1% higher than the $51.1 million during the same quarter a year ago. The increase was due primarily to the strong growth in loans. The net interest margin, on a fully taxable-equivalent basis, increased 8 basis points from 4.14% during the fourth quarter 2004 to 4.22% for the first quarter 2005, primarily as a result of faster increases in the prime rate compared to the rates paid on interest bearing deposits. The net interest margin increased from 4.07% in the first quarter of 2004 to 4.22% in the first quarter of 2005. For the first quarter of 2005, the interest rate earned on our average interest-earning assets was 5.78% on a fully taxable-equivalent basis, and our cost of funds on average interest-bearing liabilities equaled 1.91%. In comparison, for the first quarter of 2004, the interest rate earned on our average interest-earning assets was 5.09% and our cost of funds on average interest-bearing liabilities equaled 1.25%. Provision for loan losses The provision for loan losses was $1.0 million for the first quarter of 2005 compared to no provision during the first quarter of 2004. The provision for loan losses represents the charge against earnings that is determined by management, through a credit review process, as the amount needed to maintain an allowance that management believes to be sufficient to absorb loan losses inherent in the Company's loan portfolio. Total charge-offs of $3.6 million in the first quarter of 2005 and $4.9 million in the fourth quarter of 2004 were primarily related to charge-offs taken on a $9.5 million loan originated by the former New York loan production office of General Bank compared to charge-offs of $2.4 million for the first quarter of 2004. Total recoveries were $1.3 million in the first quarter of 2005, $1.7 million in the fourth quarter of 2004, and $2.3 million in the first quarter of 2004. Non-interest income Non-interest income, which includes revenues from service charges on deposit accounts, letters of credit commissions, securities gains (losses), gains (losses) on loan sales, wire transfer fees, and other sources of fee income, was $6.0 million for the first quarter of 2005, an increase of $1.6 million, or 37.3%, compared to the non-interest income of $4.4 million for the first quarter of 2004. (more) Page 3 For the first quarter of 2005, the Company recorded net securities gains of $0.4 million compared to $0.2 million of net losses for the same quarter in 2004. Other operating income increased $1.2 million, or 59.4%, due primarily to the gain of $1.0 million from the sale of a former Cathay Bank branch building and the recording of an unrealized gain on a warrant. Non-interest expense Non-interest expense decreased $402,000 to $22.8 million in the first quarter of 2005 primarily due to the realization of the cost savings from the closure of branch offices and the consolidation of backroom functions after the merger with GBC Bancorp. The efficiency ratio was 35.26% for the first quarter 2005 compared to 41.92% in the year ago quarter. Computer and equipment expense decreased $284,000, or 14.0%, from $2.0 million in the first quarter of 2004 to $1.7 million in the first quarter of 2005 as a result of $0.5 million of conversion programming expenses incurred during the first quarter of 2004. Marketing expenses decreased $238,000, or 34.0%, from $699,000 in the first quarter of 2004 to $461,000 in the first quarter of 2005 due to higher advertising expenses during 2004 related to the merger with GBC Bancorp. Other real estate owned expense decreased $581,000 due to a gain of $155,000 from sale of an OREO during the first quarter of 2005 compared to a write-off of $400,000 in the first quarter of 2004. The above decreases were partially offset by an increase of $477,000, or 4.0%, in salary and employee benefits from $11.9 million in the first quarter of 2004 to $12.4 million in the first quarter of 2005 due to merit increases, higher vacation pay accruals, and higher fringe benefit costs. In addition, the amortization of core deposit premium increased $409,000 from $1.3 million in the year ago quarter to $1.7 million in the first quarter of 2005 due primarily to an adjustment to accelerate the amortization in prior periods Income taxes The effective tax rate for the first quarter of 2005 was 39.0% and was 38.2% for the first quarter of 2004, compared to 38.2% for the full year 2004. On December 31, 2003, the California Franchise Tax Board (FTB) announced its intent to list certain transactions that in its view constitute potentially abusive tax shelters. Included in the transactions subject to this listing were transactions utilizing regulated investment companies (RICs) and real estate investment trusts (REITs). As part of the notification indicating the listed transactions, the FTB also indicated its position that it intends to disallow tax benefits associated with these transactions. While the Company continues to believe that the tax benefits recorded in three prior years with respect to its RIC were appropriate and fully defensible under California law, the Company has deemed it prudent to participate in Voluntary Compliance Initiative - Option 2, requiring payment of all California taxes and interest on these disputed 2000 through 2002 tax benefits, and permitting the Company to claim a refund for these years while avoiding certain potential penalties. The Company retains potential exposure for assertion of an accuracy-related penalty should the FTB prevail in its position in addition to the risk of not being successful in its refund claims. As of March 31, 2005, the Company reflected a $12.1 million net state tax receivable for the years 2000, 2001, and 2002 after giving effect to reserves for loss contingencies on the refund claims, or an equivalent of $7.9 million after giving effect to Federal tax benefits. The FTB is currently in the process of reviewing and assessing our refund claims for taxes and interest for tax years 2000 through 2002. Although the Company believes its tax deductions related to the regulated investment company were appropriate and fully defensible, there can be no assurance of the outcome of its refund claims, and an adverse outcome on the refund claims could result in a loss of all or a portion of the $7.9 million net state tax receivable after giving effect to Federal tax benefits. (more) Page 4 BALANCE SHEET REVIEW Total assets increased by $67.8 million to $6.2 billion at March 31, 2005, up 1.1% from year-end 2004 of $6.1 billion. The increase in total assets was due primarily to increases in loans. The growth of gross loans to $4.0 billion as of March 31, 2005 from $3.8 billion as of December 31, 2004, represents growth of $180.8 million, or 4.7%, due primarily to increases in commercial mortgage loans and commercial loans. The changes in the loan composition from year-end 2004 are presented below:
March 31, December 31, (DOLLAR IN THOUSANDS) 2005 2004 % Change - ---------------------------------------- ------------ ------------ ------------ Loans Commercial $ 1,009,718 $ 955,377 6 Residential mortgage and equity lines 351,857 331,727 6 Commercial mortgage 2,210,807 2,119,349 4 Real estate construction 428,396 412,611 4 Installment 9,263 10,481 (12) Other 2,720 2,443 11 ------------ ------------ Gross loans and leases $ 4,012,761 $ 3,831,988 5 Allowance for loan losses (61,539) (62,880) (2) Unamortized deferred loan fees (11,209) (11,644) (4) ------------ ------------ Total loans and leases, net $ 3,940,013 $ 3,757,464 5 ============ ============ ============
The increase in total assets from year-end 2004 was funded primarily by the decrease of securities of $122.0 million and by the increase in deposits. Total deposits increased $83.6 million, or 1.8%, from December 31, 2004. The changes in the deposit composition from year-end 2004 are presented below:
March 31, December 31, (DOLLARS IN THOUSANDS) 2005 2004 % Change - ---------------------------------------- ------------ ------------ ------------ Deposits Non-interest-bearing demand deposits $ 705,280 $ 674,791 5 Interest-bearing demand deposits 798,001 842,293 (5) Savings deposits 405,718 418,041 (3) Time deposits under $100 545,847 539,811 1 Time deposits of $100 or more 2,223,847 2,120,201 5 ------------ ------------ Total deposits $ 4,678,693 $ 4,595,137 2 ============ ============ ============
Advances from the Federal Home Loan Bank were $545.0 million at both March 31, 2005 and at December 31, 2004 and all mature within one year at both dates. ASSET QUALITY REVIEW Non-performing assets to gross loans plus other real estate owned decreased to 0.45% at March 31, 2005, from 0.59% at December 31, 2004 and from 1.07% at March 31, 2004. Total non-performing assets decreased to $18.2 million at March 31, 2005, compared with $22.5 million at December 31, 2004 and decreased from $36.6 million at March 31, 2004. The allowance for loan losses was $61.5 million (more) Page 5 at March 31, 2005, and represented the amount that the Company believes to be sufficient to absorb loan losses inherent in the Company's loan portfolio. The allowance for loan losses represented 1.53% of period-end gross loans and 339% of non-performing loans at March 31, 2005. The comparable ratios were 1.64% of gross loans and 280% of non-performing loans at December 31, 2004. The changes to the Company's asset quality results are highlighted below:
March 31, December 31, (IN THOUSANDS) 2005 2004 % Change - ---------------------------------------- ------------ ------------ ------------ Non-performing assets Accruing loans past due 90 days or more $ 695 $ 3,260 (79) Non-accrual loans 17,477 19,211 (9) ------------ ------------ Total non-performing loans 18,172 22,471 (19) Other real estate owned - - - ------------ ------------ Total non-performing assets $ 18,172 $ 22,471 (19) ------------ ------------ Troubled debt restructurings $ 997 $ 1,006 (1) ============ ============
The following table presents the type of non-accrual loan as of dates indicated:
For the three months ended, ------------------------------------------ March 31, December 31, (In thousands) 2005 2004 Net change - ---------------------------------------- ------------ ------------ ------------ Type of Non-accrual Loan Construction $ 623 $ 1,181 $ (558) Single/ multi-family Residential 69 69 - Commercial real estate 7,039 3,816 3,223 Commercial and industrial 9,728 14,114 (4,386) Other loans 18 31 (13) ------------ ------------ ------------ Total $ 17,477 $ 19,211 $ (1,734) ------------ ------------ ------------
CAPITAL ADEQUACY REVIEW The Tier 1 risk-based capital ratio of 10.95%, total risk-based capital ratio of 12.22%, and Tier 1 leverage capital ratio of 9.00%, continue 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 December 31, 2004, the Company's Tier 1 risk-based capital was 10.78%, total risk-based capital was 12.03%, and Tier 1 leverage capital ratio was 8.86%. During the first quarter of 2005, the Company repurchased 23,400 shares of its common stock at a total cost of $831,000. Through March 31, 2005, the Company had repurchased 663,220 shares of its common stock for $9.6 million. On March 18, 2005, the Company announced that its Board of Directors had approved the repurchase of up to an aggregate of one million shares of its common stock following the completion of the Company's current stock buyback authorization. ABOUT CATHAY GENERAL BANCORP Cathay General Bancorp is the holding company for Cathay Bank, a California state-chartered bank. Founded in 1962, Cathay Bank offers a wide range of financial services. Cathay Bank currently operates 29 branches in California, 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. Cathay Bank's website is found at http://www.cathaybank.com/. (more) Page 6 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 realize the benefits of its merger with GBC Bancorp, expansion into new markets, fluctuations in interest rates, demographic changes, inflation, increases in competition, deterioration in asset or credit quality, changes in the availability of capital, legislative and regulatory developments, such as the potential effects of California tax legislation enacted in late 2003 and the subsequent Franchise Tax Board announcement on December 31, 2003, regarding the taxation of real estate investment trusts and registered investment companies, and of the memorandum of understanding between Cathay Bank and the Federal Deposit Insurance Corporation relating to Cathay Bank's compliance with certain provisions of the Bank Secrecy Act, changes in business strategy, including the formation of a real estate investment trust, and general economic or business conditions in California and other regions where Cathay Bank has operations, such as the impact of the California budget deficit. These and other factors are further described in Cathay General Bancorp's Annual Report on Form 10-K for the year ended December 31, 2004, 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. (more) Page 7 CATHAY GENERAL BANCORP CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
Three months ended March 31, ------------------------------------------ (Dollars in thousands, except per share data) 2005 2004 % Change - -------------------------------------------------- ------------ ------------ ------------ FINANCIAL PERFORMANCE Net interest income before provision for loan losses $ 58,764 $ 51,069 15 Provision for loan losses 1,000 - 100 ------------ ------------ Net interest income after provision for loan losses 57,764 51,069 13 Non-interest income 6,013 4,381 37 Non-interest expense 22,843 23,245 (2) ------------ ------------ Income before income tax expense 40,934 32,205 27 Income tax expense 15,974 12,302 30 ------------ ------------ Net income $ 24,960 $ 19,903 25 ============ ============ Net income per common share: Basic $ 0.49 $ 0.40 23 Diluted $ 0.49 $ 0.40 23 Cash dividends paid per common share $ 0.09 $ 0.07 29 ============ ============ ============ SELECTED RATIOS Return on average assets 1.65% 1.45% 14 Return on average stockholders' equity 14.07% 12.71% 11 Efficiency ratio 35.26% 41.92% (16) Dividend payout ratio 18.27% 17.72% 3 ============ ============ ============ YIELD ANALYSIS (Fully taxable equivalent) Total interest-earning assets 5.78% 5.09% 14 Total interest-bearing liabilities 1.91% 1.25% 53 Net interest spread 3.87% 3.84% 1 Net interest margin 4.22% 4.07% 4 ============ ============ ============ CAPITAL RATIOS Tier 1 risk-based capital ratio 10.95% 10.37% 6 Total risk-based capital ratio 12.22% 11.62% 5 Tier 1 leverage capital ratio 9.00% 7.89% 14 ============ ============
(more) Page 8 CATHAY GENERAL BANCORP CONSOLIDATED BALANCE SHEETS (Unaudited)
March 31, December 31, (In thousands, except share and per share data) 2005 2004 % change - -------------------------------------------------- ------------ ------------ ------------ Assets Cash and due from banks $ 95,502 $ 86,133 11 Investment securities (amortized cost of $1,713,647 in 2005 and $1,811,891 in 2004) 1,695,926 1,817,942 (7) Loans 4,012,761 3,831,988 5 Less: Allowance for loan losses (61,539) (62,880) (2) Unamortized deferred loan fees (11,209) (11,644) (4) ------------ ------------ Loans, net 3,940,013 3,757,464 5 Other real estate owned, net - - - Affordable housing investments, net 45,337 45,145 0 Premises and equipment, net 32,858 33,421 (2) Customers' liability on acceptances 18,493 14,368 29 Accrued interest receivable 22,300 21,712 3 Goodwill 240,847 241,013 (0) Other intangible assets, net 45,754 47,494 (4) Other assets 28,799 33,313 (14) ------------ ------------ Total assets $ 6,165,829 $ 6,098,005 1 ============ ============ Liabilities and Stockholders' Equity Deposits Non-interest-bearing demand deposits $ 705,280 $ 674,791 5 Interest-bearing deposits: NOW deposits 258,202 253,767 2 Money market deposits 539,799 588,526 (8) Savings deposits 405,718 418,041 (3) Time deposits under $100 545,847 539,811 1 Time deposits of $100 or more 2,223,847 2,120,201 5 ------------ ------------ Total deposits 4,678,693 4,595,137 2 ------------ ------------ Federal funds purchased and securities sold under agreement to repurchase 80,000 91,000 (12) Advances from the Federal Home Loan Bank 545,000 545,000 - Other borrowings 17,347 17,116 1 Acceptances outstanding 18,493 14,368 29 Junior subordinated notes 53,931 53,916 0 Other liabilities 47,015 65,475 (28) ------------ ------------ Total liabilities 5,440,479 5,382,012 1 ------------ ------------ Total stockholders' equity 725,350 715,993 1 ------------ ------------ Total liabilities and stockholders' equity $ 6,165,829 $ 6,098,005 1 ============ ============ Book value per share $ 14.28 $ 14.13 1 Number of shares outstanding 50,778,016 50,677,896
Page 9 CATHAY GENERAL BANCORP CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)
Three months ended March 31, --------------------------- (In thousands, except share and per share data) 2005 2004 - ------------------------------------------------- ------------ ------------ INTEREST INCOME Interest on loans $ 61,254 $ 45,459 Interest on securities available-for-sale - taxable 18,232 17,566 Interest on securities available-for-sale - nontaxable 983 899 Dividend income 100 114 Interest on federal funds sold and securities purchased under agreements to resell 22 50 Interest on deposits with banks 77 30 ------------ ------------ Total interest income 80,668 64,118 ------------ ------------ INTEREST EXPENSE Time deposits of $100 or more 10,190 7,234 Other deposits 6,868 3,732 Other borrowed funds 4,846 2,083 ------------ ------------ Total interest expense 21,904 13,049 ------------ ------------ Net interest income before provision for loan losses 58,764 51,069 Provision for loan losses 1,000 - ------------ ------------ Net interest income after provision for loan losses 57,764 51,069 ------------ ------------ NON-INTEREST INCOME Net securities gains (losses) 377 (202) Letters of credit commissions 924 954 Depository service fees 1,623 1,691 Other operating income 3,089 1,938 ------------ ------------ Total non-interest income 6,013 4,381 ------------ ------------ NON-INTEREST EXPENSE Salaries and employee benefits 12,421 11,944 Occupancy expense 2,009 2,128 Computer and equipment expense 1,749 2,033 Professional services expense 1,520 1,532 FDIC and State assessments 252 270 Marketing expense 461 699 Other real estate owned (income) expense (104) 477 Operations of affordable housing investments 1,019 749 Amortization of core deposit intangibles 1,742 1,333 Other operating expense 1,774 2,080 ------------ ------------ Total non-interest expense 22,843 23,245 ------------ ------------ Income before income tax expense 40,934 32,205 Income tax expense 15,974 12,302 ------------ ------------ Net income 24,960 19,903 ------------ ------------ Other comprehensive (loss) income, net of tax (13,897) 7,877 ------------ ------------ Total comprehensive income $ 11,063 $ 27,780 ============ ============ Net income per common share: Basic $ 0.49 $ 0.40 Diluted $ 0.49 $ 0.40 Cash dividends paid per common share $ 0.09 $ 0.07 Basic average common shares outstanding 50,706,890 49,671,300 Diluted average common shares outstanding 51,209,052 50,185,304
Page 10 CATHAY GENERAL BANCORP AVERAGE BALANCES - SELECTED CONSOLIDATED FINANCIAL INFORMATION (Unaudited)
For the three months ended, --------------------------------------------------------------------------------------- March 31, 2005 December 31, 2004 March 31, 2004 --------------------------- --------------------------- --------------------------- Average Average Average Average Yield/Rate Average Yield/Rate Average Yield/Rate (In thousands) Balance (1) (2) Balance (1) (2) Balance (1) (2) - ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ Interest-earning assets Federal funds sold and securities purchased under agreements to resell $ 3,589 2.44% $ 505 1.66% $ 24,088 0.83% Investment securities (1) 1,774,496 4.54% 1,791,086 4.38% 1,744,760 4.41% Loans and leases (2) 3,913,722 6.35% 3,712,830 5.99% 3,330,878 5.49% Deposits with banks 8,001 3.93% 5,836 3.31% 5,077 2.38% ------------ ------------ ------------ ------------ ------------ ------------ Total interest-earning assets $ 5,699,808 5.78% $ 5,510,257 5.46% $ 5,104,803 5.09% ------------ ------------ ------------ ------------ ------------ ------------ Interest-bearing liabilities Interest-bearing demand deposits $ 831,076 0.90% $ 868,792 0.74% $ 930,151 0.58% Savings deposits 408,580 0.37% 422,086 0.35% 417,487 0.30% Time deposits 2,708,770 2.22% 2,621,548 1.95% 2,432,373 1.54% ------------ ------------ ------------ ------------ ------------ ------------ Total interest-bearing deposits $ 3,948,426 1.75% $ 3,912,426 1.51% $ 3,780,011 1.17% Other borrowed funds 695,951 2.82% 568,178 2.44% 416,390 2.01% ------------ ------------ ------------ ------------ ------------ ------------ Total interest-bearing liabilities 4,644,377 1.91% 4,480,604 1.63% 4,196,401 1.25% Non-interest-bearing demand deposits 692,147 692,379 638,559 ------------ ------------ ------------ ------------ ------------ ------------ Total deposits and other borrowed funds $ 5,336,524 $ 5,172,983 $ 4,834,960 ------------ ------------ ------------ ------------ ------------ ------------ Total average assets $ 6,149,260 $ 5,965,757 $ 5,537,873 Total average stockholders' equity $ 719,235 $ 689,945 $ 629,996 ------------ ------------ ------------ ------------ ------------ ------------
(1) 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%. (2) Yields and amounts of interest earned include loan fees. Non-accrual loans are included in the average balance. -----END PRIVACY-ENHANCED MESSAGE-----