Note 4 - Earnings per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

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:

	Three months ended September 30,						Nine months ended September 30,
(Dollars in thousands, except share and per share data)	2013			2012			2013			2012
Net income attributable to Cathay General Bancorp	$	32,478		$	30,358		$	91,241		$	89,132
Dividends on preferred stock and noncash charge from repayment		(2,434	)		(4,123	)		(9,685	)		(12,361	)
Net income available to common stockholders	$	30,044		$	26,235		$	81,556		$	76,771
Weighted-average shares:
Basic weighted-average number of common shares outstanding		78,894,262			78,729,272			78,853,333			78,706,150
Dilutive effect of weighted-average outstanding common share equivalents
Warrants		171,426			-			57,771			-
Restricted stock units		48,434			1,908			33,048			5,085
Diluted weighted-average number of common shares outstanding		79,114,122			78,731,180			78,944,152			78,711,235
Average stock options and warrants with anti-dilutive effect		3,668,285			6,080,292			4,958,218			6,133,089
Earnings per common share:
Basic	$	0.38		$	0.33		$	1.03		$	0.98
Diluted	$	0.38		$	0.33		$	1.03		$	0.98