Note 4 - Earnings per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Text Block]

4. Earnings per Share

Basic earnings per share exclude dilution and is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period.  Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and resulted in the issuance of common stock that then shared in earnings.  Potential dilution is excluded from computation of diluted per-share amounts when a net loss from operations exists.

Outstanding stock options with anti-dilutive effect were not included in the computation of diluted earnings per share.   The following table sets forth earnings per common share calculations:

	For the three months ended June 30,						For the six months ended June 30,
(Dollars in thousands, except share and per share data)	2012			2011			2012			2011
Net income attributable to Cathay General Bancorp	$	29,861		$	24,302		$	58,774		$	46,365
Dividends on preferred stock		(4,121	)		(4,107	)		(8,238	)		(8,212	)
Net income available to common stockholders	$	25,740		$	20,195		$	50,536		$	38,153
Weighted-average shares:
Basic weighted-average number of common shares outstanding		78,710,279			78,635,324			78,694,462			78,622,464
Dilutive effect of weighted-average outstanding common share equivalents
Stock options		1,893			1,784			6,690			13,905
Diluted weighted-average number of common shares outstanding		78,712,172			78,637,108			78,701,152			78,636,369
Average stock options and warrants with anti-dilutive effect		6,092,332			6,303,432			6,159,778			6,251,149
Earnings per common share:
Basic	$	0.33		$	0.26		$	0.64		$	0.49
Diluted	$	0.33		$	0.26		$	0.64		$	0.49

Options to purchase an additional 4.1 million shares, restricted stock units for an additional 188,766 shares, and warrants to purchase an additional 1.8 million shares at June 30, 2012, were not included in the computation of diluted earnings per share because their inclusion would have had an anti-dilutive effect.