Cathay Bancorp Announces First Quarter Earnings; First Quarter Net Income Increased 12%

Apr 16, 2001, 01:00 ET from Cathay Bancorp, Inc.

    LOS ANGELES, April 16 /PRNewswire/ -- Cathay Bancorp, Inc. (Nasdaq:   CATY),
 the holding company of Cathay Bank, today announced its 2001 first quarter net
 income of $9.4 million, a 12% increase over net income of $8.4 million for the
 first quarter of 2000.  The earnings per diluted common share was $1.03 for
 the first quarter of 2001, compared with $0.92 for the first quarter of 2000,
 representing a 12% increase as well.
     Return on average assets rose to 1.71% for the first quarter of 2001,
 compared with 1.67% for the same quarter of 2000.  Return on average
 stockholders' equity declined to 17.47% for the first quarter of 2001,
 compared with 18.66% for the same quarter of 2000.
     "We are happy to report a 12% increase in our first quarter net income
 despite a deteriorating economic environment," said Dunson Cheng, Chairman,
 "however, we have not detected any observable decline in our asset quality."
 
     Results of Operations
     --  Net interest income before provision for loan losses -- $22.6 million
         for the first quarter of 2001 vs $21.3 million for the same quarter of
         2000.
         --  Interest income -- increased $4.7 million or 12% in the first
             quarter of 2001 to $42.0 million primarily from an increase of
             $4.0 million in loan interest income.  $3.5 million of the
             $4.0 million increase were attributable to an increase of
             $167.8 million in average loan volume.
         --  Interest expense -- increased $3.3 million or 21% in the first
             quarter of 2001 to $19.4 million entirely due to increase in
             interest on time deposit.  Average time deposits increased
             $131.2 million which added $1.6 million to interest expense.  The
             average rate on time deposits increased 65 basis points to 5.61%
             in the first quarter of 2001 and added $1.8 million to interest
             expense.
 
             In the first quarter of 2001, the Federal Reserve Board made
             150 basis point cut in the Federal Funds Target rate.  As a
             result, our average reference rate decreased to 8.88% in the first
             quarter of 2001, compared to 8.94% in the first quarter of 2000
             and 9.75% in the fourth quarter of 2000.  However, our time
             deposits which generally bear longer term, did not reprice as fast
             as loans.  Thus, the net interest margin was squeezed to 4.47% in
             the first quarter of 2001, compared to 4.60% in the first quarter
             of 2000 and 4.52% in the fourth quarter of 2000.
 
     --  Provision for loan losses -- Management increased the provision for
         loan losses by $150,000 to $1.2 million in the first quarter of 2001
         compared to $1.05 million in the first quarter of 2000.  Management
         believes the increase was prudent to cover additional inherent risk
         resulting from the overall increase of our loan portfolio.  Net
         charge-offs for the first quarter of 2001 and 2000 were $577,000 and
         $219,000, respectively.
 
     --  Non-interest income increased $1.1 million or 40% in the first quarter
         of 2001 to $3.9 million.  In the first quarter of 2001, we recognized
         $851,000 on a Forward Rate Agreement contract in securities gains.
         The contract was entered into on August 31, 2000 and settled on
         March  5, 2001.
 
     --  Non-interest expense increased $1.9 million or 20% to $11.1 million in
         the first quarter of 2001.  The following items should be noted:
         --  Real estate operations, net -- we booked $915,000 in 2001 versus
             $192,000 in 2000 in losses from low income housing investments
             that qualify for tax credit.  We anticipate losses to approximate
             $300,000 each quarter for the remainder of 2001.
         --  Salaries and employee benefits increased $461,000 primarily due to
             annual salary adjustments for non-exempt employees in the fourth
             quarter of 2000.
         --  Professional services expense rose $412,000.  The increases were
             partially related to professional fees for the registered
             investment company as well as legal fees in connection with loans
             and other corporate matters.
         As a result of the above, the efficiency ratio increased to 41.94% in
         the first quarter of 2001, compared to 38.48% in the same quarter of
         2000.
 
     --  Income taxes -- The effective tax rate for the first quarter of 2001
         was 33.85% compared to 39.20% for the first quarter of 2000.  The
         lower tax rate for 2001 was due primarily to the impact of the
         formation of a registered investment company subsidiary that provides
         flexibility to raise additional capital in a tax efficient manner.
         The long-term plan for the registered investment company is currently
         under review.  Depending on the results of the review and other
         factors, the effective tax rate may change.  Currently management
         believes the effective tax rate will be approximately the same for the
         remainder of 2001.  There can be no assurance that the subsidiary will
         continue as a registered investment company, or that any tax benefits
         will continue or as to our ability to raise capital through this
         subsidiary.
 
     Financial Condition
     Despite deteriorating economic conditions nationwide, we continued to grow
 in the first quarter of 2001.  The major changes in our balance sheet during
 the first quarter of 2001 are listed below:
     --  Total assets increased $55.2 million or 2% to $2,262.0 million.
     --  Securities available-for-sale increased $48.1 million or 27% to
         $225.9 million.
     --  Securities held-to-maturity increased $7.5 million or 2% to
         $394.7 million.
     --  Net loans increased $21.8 million or 2% to $1,459.1 million.
     --  Total deposits increased $78.1 million or 4% to $1,954.5 million.
     --  Securities sold under agreements to repurchase decreased $24.8 million
         or 36% to $43.4 million.
     --  Stockholders' equity increased $10.3 million or 5% to $225.1 million.
 
     We experienced some slowdown in loan demand in the first quarter of 2001.
 The 2% increase in net loans was primarily resulted from increases of
 $34.5 million in construction loans offset by decreases of $14.0 million in
 commercial mortgage loans.  The increase in construction loans in the first
 quarter of 2001 was attributable to both new projects and disbursements on old
 projects.  As of March 31, 2001 we have approximately $47 million in
 construction loan commitments.  The decrease in commercial mortgage loans was
 due to pay-offs.  We also experienced seasonal pay downs of trade financing
 credits as customers collected accounts receivables from the pre-Christmas
 sales.
     Core deposits rose $24.9 million or 2% to $1,103.7 million.  Time deposits
 of $100,000 or more grew $53.2 million or 7% to $850.8 million.  Most of our
 time deposits are seasoned and have been with us for many years.
 
     Asset Quality
     Total non-performing assets, which include loans past due 90 days or
 more and still accruing interest, non-accrual loans, and OREO, decreased
 $3.2 million or 16% to $17.2 million at March 31, 2001.  Non-accrual loans
 decreased $2.7 million and loans past due 90 days or more and still accruing
 interest declined $550,000.  As a percentage of gross loans plus OREO, non-
 performing assets was reduced from 1.39% at
 year-end 2000 to 1.15% at March 31, 2001.
 
     Allowance For Loan Losses
     The allowance for loan losses amounted to $22.6 million or 1.52% of gross
 loans at March 31, 2001 compared to $22.0 million or 1.50% of gross loans at
 year-end 2000.  The ratio of the allowance for loan losses to non-performing
 loans increased from 143.72% at year-end 2000 to 187.59% at March 31, 2001.
 
     Capital Adequacy
     Total capital, Tier 1 capital and Tier 1 leverage capital ratios of
 12.14%, 10.97% and 9.53%, respectively continued to place Cathay Bancorp in
 the "well capitalized" category which is defined as institutions with total
 risk-based capital ratio equal to or greater than 10 percent, Tier 1 risk-
 based capital ratio equal to or greater than six percent and Tier 1 leverage
 capital ratio equal to or greater than five percent.
 
     Stock Repurchase Program
     We announced a stock repurchase program of up to $15 million worth of
 shares of our common stock on April 9, 2001.  Cathay Bancorp intends to
 repurchase shares under the program, from time to time, in the open market or
 through negotiated purchases throughout the year, under conditions which allow
 such repurchases to be accretive to earnings while maintaining capital ratios
 that exceed the guidelines for a well capitalized financial institution.
 
     Cathay Bancorp Inc. is the one-bank holding company for Cathay Bank.
 Cathay Bank was founded in 1962 and offers a full-range of financial services.
 Cathay Bank now operates 12 branches in Southern California, six branches in
 Northern California, two branches in New York State, one branch in Houston,
 Texas and two overseas offices in Taiwan and Hong Kong, respectively.  Cathay
 Bank's web page is found at www.cathaybank.com.
 
     Forward Looking Statements
     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.  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 Bancorp to be materially different from any future
 results, performance or achievements expressed or implied by such forward-
 looking statements.  Such risks and uncertainties include those described in
 Cathay Bancorp's Annual Report on Form 10-K for the year ended December 31,
 2000, its Quarterly Reports on Form 10-Q and other filings it makes with the
 Securities and Exchange Commission from time to time.  Cathay 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 BANCORP, INC.
             CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                  (In thousands, except share and per share data)
                                    (Unaudited)
 
                                                        As of
                                                03/31/01    12/31/00  % change
     Assets
       Cash and due from banks                  $51,803       $65,687     (21)
       Federal funds sold and securities
        purchased under agreements to resell     18,500        19,000      (3)
       Securities available-for-sale            225,898       177,796      27
       Securities held-to-maturity              394,711       387,200       2
       Loans, gross                           1,485,728     1,463,413       2
       Less:  Allowance for loan losses         (22,589)      (21,967)      3
              Unamortized deferred loan fees     (4,066)       (4,139)     (2)
       Loans, net                             1,459,073     1,437,307       2
       Other real estate owned                    5,174         5,174       0
       Investments in real estate                16,433        17,348      (5)
       Other assets                              90,407        97,322      (7)
         Total assets                        $2,261,999    $2,206,834       2
 
     Liabilities and Stockholders' Equity
       Non-interest bearing deposits           $215,325      $221,805      (3)
       Interest bearing deposits              1,739,199     1,654,642       5
         Total deposits                       1,954,524     1,876,447       4
 
       Securities sold under agreements to
        repurchase                               43,379        68,173     (36)
       Advances from Federal Home Loan Bank      10,000        10,000       0
       Other liabilities                         29,007        37,427     (22)
         Total liabilities                    2,036,910     1,992,047       2
 
       Stockholders' equity                     225,089       214,787       5
         Total liabilities and
          stockholders' equity               $2,261,999    $2,206,834       2
 
     Book value per share                        $24.77        $23.67       5
     Number of common shares outstanding
      at period end                           9,086,323     9,074,365       0
 
 
                               CATHAY BANCORP, INC.
       CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                 (In thousands, except share and per share data)
                                   (Unaudited)
 
                                               For the three months
                                                   ended March 31,
                                                 2001         2000   % change
     Interest income                           $42,046      $37,388       12
     Interest expense                           19,407       16,094       21
     Net interest income                        22,639       21,294        6
     Provision for loan losses                   1,200        1,050       14
     Net interest income after
       provision for loan losses                21,439       20,244        6
     Non-interest income                         3,852        2,749       40
     Non-interest expense                       11,111        9,252       20
     Income before income tax expense           14,180       13,741        3
     Income tax expense                          4,800        5,387      (11)
     Net income                                  9,380        8,354       12
 
     Other comprehensive income (loss)           2,546         (165)   1,643
     Total comprehensive income                $11,926       $8,189       46
 
     Net income per share, basic                 $1.03        $0.92       12
     Net income per share, diluted               $1.03        $0.92       12
     Dividends paid per share                   $0.250       $0.210       19
     Basic average common shares
       outstanding                           9,082,569    9,041,735
     Diluted average common shares
       outstanding                           9,115,028    9,051,413
 
 
                               CATHAY BANCORP, INC.
                    SELECTED CONSOLIDATED FINANCIAL INFORMATION
                                  (In thousands)
                                    (Unaudited)
 
                                                       As of
                                              03/31/01      12/31/00  % change
     Loans
       Commercial                             $443,258      $442,181       0
       Residential mortgage                    223,270       220,720       1
       Commercial mortgage                     616,668       630,662      (2)
       Real estate construction                176,533       142,048      24
       Installment                              25,726        27,329      (6)
       Other                                       273           473     (42)
         Total loans - gross                 1,485,728     1,463,413       2
       Allowance for loan losses               (22,589)      (21,967)      3
       Unamortized deferred loan fees           (4,066)       (4,139)     (2)
         Total loans - net                  $1,459,073    $1,437,307       2
 
     Non-performing assets
       Loans past due 90 days or more and
        still accruing interest                    $39          $589     (93)
       Non-accrual loans                        12,003        14,696     (18)
         Total non-performing loans             12,042        15,285     (21)
       Other real estate owned                   5,174         5,174       0
         Total non-performing assets           $17,216       $20,459     (16)
 
     Deposits
       Non-interest bearing                   $215,325      $221,805      (3)
       Interest bearing checking               262,850       245,452       7
       Savings                                 229,962       231,761      (1)
       Time deposits                         1,246,387     1,177,429       6
         Total deposits                     $1,954,524    $1,876,447       4
 
     Selected ratios
       Non-accrual loans to gross loans           0.81%         1.00%     (19)
       Non-performing assets to gross
        loans and OREO                            1.15%         1.39%     (17)
       Allowance for loan losses to gross
        loans                                     1.52%         1.50%       1
       Allowance for loan losses to
        non-performing loans                    187.59%       143.72%      31
 
       Tier 1 risk-based capital ratio           10.97%        11.05%      (1)
       Total risk-based capital ratio            12.14%        12.25%      (1)
       Tier 1 leverage ratio                      9.53%         9.28%       3
 
 
                               CATHAY BANCORP, INC.
          AVERAGE BALANCES - SELECTED CONSOLIDATED FINANCIAL INFORMATION
                                  (In thousands)
                                    (Unaudited)
 
                                               For the three months
                                                 ended March 31,         %
     Interest earning assets                   2001          2000      change
       Federal funds sold and securities
         purchased under agreements to
         resell                               $38,461       $13,995     175
       Securities available-for-sale          188,680       160,036      18
       Securities held-to-maturity            391,021       422,184      (7)
       Loans, net of deferred loan fees     1,454,424     1,283,935      13
       Allowance for loan losses              (22,475)      (19,809)     13
       Loans, net                           1,431,949     1,264,126      13
       Deposits with banks                      2,828         1,053     169
         Total interest earning assets     $2,052,939    $1,861,394      10
 
     Interest bearing liabilities
       Interest bearing checking             $251,573      $222,260      13
       Savings                                224,298       229,978      (2)
       Time deposits                        1,214,137     1,082,939      12
         Total interest bearing deposits    1,690,008     1,535,177      10
       Other borrowed funds                    62,029        73,106     (15)
         Total interest bearing
          liabilities                      $1,752,037    $1,608,283       9
 
     Non-interest bearing demand deposits    $213,316      $201,184       6
 
     Total deposits                        $1,903,324    $1,736,361      10
 
     Total assets                          $2,220,203    $2,014,967      10
 
     Stockholders' equity                    $217,729      $180,033      21
 
 
                               CATHAY BANCORP, INC.
                   SELECTED CONSOLIDATED FINANCIAL INFORMATION
                                  (In thousands)
                                   (Unaudited)
 
                                              For the three months
                                                  ended March 31,       %
     Selected ratios                             2001        2000    change
       Return on average assets                  1.71%       1.67%       2
       Return on average stockholders'
        equity                                  17.47%      18.66%      (6)
       Net interest margin (non tax
        equivalent)                              4.47%       4.60%      (3)
       Efficiency ratio                         41.94%      38.48%       9
       Dividend payout ratio                    24.27%      22.83%       6
 
     Net charge-offs                              $577        $219     163
 
     Non-interest income
       Securities gains                           $864          $0      NMV
       Letter of credit commissions                540         524       3
       Service charges                           1,212       1,038      17
       Other operating income                    1,236       1,187       4
         Total non-interest income              $3,852      $2,749      40
 
     Non-interest expense
       Salaries and employee benefits           $5,894      $5,433       8
       Occupancy expense                           918         780      18
       Computer and equipment expense              698         667       5
       Professional services expense             1,270         858      48
       FDIC and State assessments                  116         112       4
       Marketing expense                           342         264      30
       Real estate operations, net                 (62)         38    (263)
       Operations of investments in real
        estate                                     915         192     377
       Other operating expense                   1,020         908      12
         Total non-interest expense            $11,111      $9,252      20
 
 
 

SOURCE Cathay Bancorp, Inc.
    LOS ANGELES, April 16 /PRNewswire/ -- Cathay Bancorp, Inc. (Nasdaq:   CATY),
 the holding company of Cathay Bank, today announced its 2001 first quarter net
 income of $9.4 million, a 12% increase over net income of $8.4 million for the
 first quarter of 2000.  The earnings per diluted common share was $1.03 for
 the first quarter of 2001, compared with $0.92 for the first quarter of 2000,
 representing a 12% increase as well.
     Return on average assets rose to 1.71% for the first quarter of 2001,
 compared with 1.67% for the same quarter of 2000.  Return on average
 stockholders' equity declined to 17.47% for the first quarter of 2001,
 compared with 18.66% for the same quarter of 2000.
     "We are happy to report a 12% increase in our first quarter net income
 despite a deteriorating economic environment," said Dunson Cheng, Chairman,
 "however, we have not detected any observable decline in our asset quality."
 
     Results of Operations
     --  Net interest income before provision for loan losses -- $22.6 million
         for the first quarter of 2001 vs $21.3 million for the same quarter of
         2000.
         --  Interest income -- increased $4.7 million or 12% in the first
             quarter of 2001 to $42.0 million primarily from an increase of
             $4.0 million in loan interest income.  $3.5 million of the
             $4.0 million increase were attributable to an increase of
             $167.8 million in average loan volume.
         --  Interest expense -- increased $3.3 million or 21% in the first
             quarter of 2001 to $19.4 million entirely due to increase in
             interest on time deposit.  Average time deposits increased
             $131.2 million which added $1.6 million to interest expense.  The
             average rate on time deposits increased 65 basis points to 5.61%
             in the first quarter of 2001 and added $1.8 million to interest
             expense.
 
             In the first quarter of 2001, the Federal Reserve Board made
             150 basis point cut in the Federal Funds Target rate.  As a
             result, our average reference rate decreased to 8.88% in the first
             quarter of 2001, compared to 8.94% in the first quarter of 2000
             and 9.75% in the fourth quarter of 2000.  However, our time
             deposits which generally bear longer term, did not reprice as fast
             as loans.  Thus, the net interest margin was squeezed to 4.47% in
             the first quarter of 2001, compared to 4.60% in the first quarter
             of 2000 and 4.52% in the fourth quarter of 2000.
 
     --  Provision for loan losses -- Management increased the provision for
         loan losses by $150,000 to $1.2 million in the first quarter of 2001
         compared to $1.05 million in the first quarter of 2000.  Management
         believes the increase was prudent to cover additional inherent risk
         resulting from the overall increase of our loan portfolio.  Net
         charge-offs for the first quarter of 2001 and 2000 were $577,000 and
         $219,000, respectively.
 
     --  Non-interest income increased $1.1 million or 40% in the first quarter
         of 2001 to $3.9 million.  In the first quarter of 2001, we recognized
         $851,000 on a Forward Rate Agreement contract in securities gains.
         The contract was entered into on August 31, 2000 and settled on
         March  5, 2001.
 
     --  Non-interest expense increased $1.9 million or 20% to $11.1 million in
         the first quarter of 2001.  The following items should be noted:
         --  Real estate operations, net -- we booked $915,000 in 2001 versus
             $192,000 in 2000 in losses from low income housing investments
             that qualify for tax credit.  We anticipate losses to approximate
             $300,000 each quarter for the remainder of 2001.
         --  Salaries and employee benefits increased $461,000 primarily due to
             annual salary adjustments for non-exempt employees in the fourth
             quarter of 2000.
         --  Professional services expense rose $412,000.  The increases were
             partially related to professional fees for the registered
             investment company as well as legal fees in connection with loans
             and other corporate matters.
         As a result of the above, the efficiency ratio increased to 41.94% in
         the first quarter of 2001, compared to 38.48% in the same quarter of
         2000.
 
     --  Income taxes -- The effective tax rate for the first quarter of 2001
         was 33.85% compared to 39.20% for the first quarter of 2000.  The
         lower tax rate for 2001 was due primarily to the impact of the
         formation of a registered investment company subsidiary that provides
         flexibility to raise additional capital in a tax efficient manner.
         The long-term plan for the registered investment company is currently
         under review.  Depending on the results of the review and other
         factors, the effective tax rate may change.  Currently management
         believes the effective tax rate will be approximately the same for the
         remainder of 2001.  There can be no assurance that the subsidiary will
         continue as a registered investment company, or that any tax benefits
         will continue or as to our ability to raise capital through this
         subsidiary.
 
     Financial Condition
     Despite deteriorating economic conditions nationwide, we continued to grow
 in the first quarter of 2001.  The major changes in our balance sheet during
 the first quarter of 2001 are listed below:
     --  Total assets increased $55.2 million or 2% to $2,262.0 million.
     --  Securities available-for-sale increased $48.1 million or 27% to
         $225.9 million.
     --  Securities held-to-maturity increased $7.5 million or 2% to
         $394.7 million.
     --  Net loans increased $21.8 million or 2% to $1,459.1 million.
     --  Total deposits increased $78.1 million or 4% to $1,954.5 million.
     --  Securities sold under agreements to repurchase decreased $24.8 million
         or 36% to $43.4 million.
     --  Stockholders' equity increased $10.3 million or 5% to $225.1 million.
 
     We experienced some slowdown in loan demand in the first quarter of 2001.
 The 2% increase in net loans was primarily resulted from increases of
 $34.5 million in construction loans offset by decreases of $14.0 million in
 commercial mortgage loans.  The increase in construction loans in the first
 quarter of 2001 was attributable to both new projects and disbursements on old
 projects.  As of March 31, 2001 we have approximately $47 million in
 construction loan commitments.  The decrease in commercial mortgage loans was
 due to pay-offs.  We also experienced seasonal pay downs of trade financing
 credits as customers collected accounts receivables from the pre-Christmas
 sales.
     Core deposits rose $24.9 million or 2% to $1,103.7 million.  Time deposits
 of $100,000 or more grew $53.2 million or 7% to $850.8 million.  Most of our
 time deposits are seasoned and have been with us for many years.
 
     Asset Quality
     Total non-performing assets, which include loans past due 90 days or
 more and still accruing interest, non-accrual loans, and OREO, decreased
 $3.2 million or 16% to $17.2 million at March 31, 2001.  Non-accrual loans
 decreased $2.7 million and loans past due 90 days or more and still accruing
 interest declined $550,000.  As a percentage of gross loans plus OREO, non-
 performing assets was reduced from 1.39% at
 year-end 2000 to 1.15% at March 31, 2001.
 
     Allowance For Loan Losses
     The allowance for loan losses amounted to $22.6 million or 1.52% of gross
 loans at March 31, 2001 compared to $22.0 million or 1.50% of gross loans at
 year-end 2000.  The ratio of the allowance for loan losses to non-performing
 loans increased from 143.72% at year-end 2000 to 187.59% at March 31, 2001.
 
     Capital Adequacy
     Total capital, Tier 1 capital and Tier 1 leverage capital ratios of
 12.14%, 10.97% and 9.53%, respectively continued to place Cathay Bancorp in
 the "well capitalized" category which is defined as institutions with total
 risk-based capital ratio equal to or greater than 10 percent, Tier 1 risk-
 based capital ratio equal to or greater than six percent and Tier 1 leverage
 capital ratio equal to or greater than five percent.
 
     Stock Repurchase Program
     We announced a stock repurchase program of up to $15 million worth of
 shares of our common stock on April 9, 2001.  Cathay Bancorp intends to
 repurchase shares under the program, from time to time, in the open market or
 through negotiated purchases throughout the year, under conditions which allow
 such repurchases to be accretive to earnings while maintaining capital ratios
 that exceed the guidelines for a well capitalized financial institution.
 
     Cathay Bancorp Inc. is the one-bank holding company for Cathay Bank.
 Cathay Bank was founded in 1962 and offers a full-range of financial services.
 Cathay Bank now operates 12 branches in Southern California, six branches in
 Northern California, two branches in New York State, one branch in Houston,
 Texas and two overseas offices in Taiwan and Hong Kong, respectively.  Cathay
 Bank's web page is found at www.cathaybank.com.
 
     Forward Looking Statements
     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.  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 Bancorp to be materially different from any future
 results, performance or achievements expressed or implied by such forward-
 looking statements.  Such risks and uncertainties include those described in
 Cathay Bancorp's Annual Report on Form 10-K for the year ended December 31,
 2000, its Quarterly Reports on Form 10-Q and other filings it makes with the
 Securities and Exchange Commission from time to time.  Cathay 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 BANCORP, INC.
             CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                  (In thousands, except share and per share data)
                                    (Unaudited)
 
                                                        As of
                                                03/31/01    12/31/00  % change
     Assets
       Cash and due from banks                  $51,803       $65,687     (21)
       Federal funds sold and securities
        purchased under agreements to resell     18,500        19,000      (3)
       Securities available-for-sale            225,898       177,796      27
       Securities held-to-maturity              394,711       387,200       2
       Loans, gross                           1,485,728     1,463,413       2
       Less:  Allowance for loan losses         (22,589)      (21,967)      3
              Unamortized deferred loan fees     (4,066)       (4,139)     (2)
       Loans, net                             1,459,073     1,437,307       2
       Other real estate owned                    5,174         5,174       0
       Investments in real estate                16,433        17,348      (5)
       Other assets                              90,407        97,322      (7)
         Total assets                        $2,261,999    $2,206,834       2
 
     Liabilities and Stockholders' Equity
       Non-interest bearing deposits           $215,325      $221,805      (3)
       Interest bearing deposits              1,739,199     1,654,642       5
         Total deposits                       1,954,524     1,876,447       4
 
       Securities sold under agreements to
        repurchase                               43,379        68,173     (36)
       Advances from Federal Home Loan Bank      10,000        10,000       0
       Other liabilities                         29,007        37,427     (22)
         Total liabilities                    2,036,910     1,992,047       2
 
       Stockholders' equity                     225,089       214,787       5
         Total liabilities and
          stockholders' equity               $2,261,999    $2,206,834       2
 
     Book value per share                        $24.77        $23.67       5
     Number of common shares outstanding
      at period end                           9,086,323     9,074,365       0
 
 
                               CATHAY BANCORP, INC.
       CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                 (In thousands, except share and per share data)
                                   (Unaudited)
 
                                               For the three months
                                                   ended March 31,
                                                 2001         2000   % change
     Interest income                           $42,046      $37,388       12
     Interest expense                           19,407       16,094       21
     Net interest income                        22,639       21,294        6
     Provision for loan losses                   1,200        1,050       14
     Net interest income after
       provision for loan losses                21,439       20,244        6
     Non-interest income                         3,852        2,749       40
     Non-interest expense                       11,111        9,252       20
     Income before income tax expense           14,180       13,741        3
     Income tax expense                          4,800        5,387      (11)
     Net income                                  9,380        8,354       12
 
     Other comprehensive income (loss)           2,546         (165)   1,643
     Total comprehensive income                $11,926       $8,189       46
 
     Net income per share, basic                 $1.03        $0.92       12
     Net income per share, diluted               $1.03        $0.92       12
     Dividends paid per share                   $0.250       $0.210       19
     Basic average common shares
       outstanding                           9,082,569    9,041,735
     Diluted average common shares
       outstanding                           9,115,028    9,051,413
 
 
                               CATHAY BANCORP, INC.
                    SELECTED CONSOLIDATED FINANCIAL INFORMATION
                                  (In thousands)
                                    (Unaudited)
 
                                                       As of
                                              03/31/01      12/31/00  % change
     Loans
       Commercial                             $443,258      $442,181       0
       Residential mortgage                    223,270       220,720       1
       Commercial mortgage                     616,668       630,662      (2)
       Real estate construction                176,533       142,048      24
       Installment                              25,726        27,329      (6)
       Other                                       273           473     (42)
         Total loans - gross                 1,485,728     1,463,413       2
       Allowance for loan losses               (22,589)      (21,967)      3
       Unamortized deferred loan fees           (4,066)       (4,139)     (2)
         Total loans - net                  $1,459,073    $1,437,307       2
 
     Non-performing assets
       Loans past due 90 days or more and
        still accruing interest                    $39          $589     (93)
       Non-accrual loans                        12,003        14,696     (18)
         Total non-performing loans             12,042        15,285     (21)
       Other real estate owned                   5,174         5,174       0
         Total non-performing assets           $17,216       $20,459     (16)
 
     Deposits
       Non-interest bearing                   $215,325      $221,805      (3)
       Interest bearing checking               262,850       245,452       7
       Savings                                 229,962       231,761      (1)
       Time deposits                         1,246,387     1,177,429       6
         Total deposits                     $1,954,524    $1,876,447       4
 
     Selected ratios
       Non-accrual loans to gross loans           0.81%         1.00%     (19)
       Non-performing assets to gross
        loans and OREO                            1.15%         1.39%     (17)
       Allowance for loan losses to gross
        loans                                     1.52%         1.50%       1
       Allowance for loan losses to
        non-performing loans                    187.59%       143.72%      31
 
       Tier 1 risk-based capital ratio           10.97%        11.05%      (1)
       Total risk-based capital ratio            12.14%        12.25%      (1)
       Tier 1 leverage ratio                      9.53%         9.28%       3
 
 
                               CATHAY BANCORP, INC.
          AVERAGE BALANCES - SELECTED CONSOLIDATED FINANCIAL INFORMATION
                                  (In thousands)
                                    (Unaudited)
 
                                               For the three months
                                                 ended March 31,         %
     Interest earning assets                   2001          2000      change
       Federal funds sold and securities
         purchased under agreements to
         resell                               $38,461       $13,995     175
       Securities available-for-sale          188,680       160,036      18
       Securities held-to-maturity            391,021       422,184      (7)
       Loans, net of deferred loan fees     1,454,424     1,283,935      13
       Allowance for loan losses              (22,475)      (19,809)     13
       Loans, net                           1,431,949     1,264,126      13
       Deposits with banks                      2,828         1,053     169
         Total interest earning assets     $2,052,939    $1,861,394      10
 
     Interest bearing liabilities
       Interest bearing checking             $251,573      $222,260      13
       Savings                                224,298       229,978      (2)
       Time deposits                        1,214,137     1,082,939      12
         Total interest bearing deposits    1,690,008     1,535,177      10
       Other borrowed funds                    62,029        73,106     (15)
         Total interest bearing
          liabilities                      $1,752,037    $1,608,283       9
 
     Non-interest bearing demand deposits    $213,316      $201,184       6
 
     Total deposits                        $1,903,324    $1,736,361      10
 
     Total assets                          $2,220,203    $2,014,967      10
 
     Stockholders' equity                    $217,729      $180,033      21
 
 
                               CATHAY BANCORP, INC.
                   SELECTED CONSOLIDATED FINANCIAL INFORMATION
                                  (In thousands)
                                   (Unaudited)
 
                                              For the three months
                                                  ended March 31,       %
     Selected ratios                             2001        2000    change
       Return on average assets                  1.71%       1.67%       2
       Return on average stockholders'
        equity                                  17.47%      18.66%      (6)
       Net interest margin (non tax
        equivalent)                              4.47%       4.60%      (3)
       Efficiency ratio                         41.94%      38.48%       9
       Dividend payout ratio                    24.27%      22.83%       6
 
     Net charge-offs                              $577        $219     163
 
     Non-interest income
       Securities gains                           $864          $0      NMV
       Letter of credit commissions                540         524       3
       Service charges                           1,212       1,038      17
       Other operating income                    1,236       1,187       4
         Total non-interest income              $3,852      $2,749      40
 
     Non-interest expense
       Salaries and employee benefits           $5,894      $5,433       8
       Occupancy expense                           918         780      18
       Computer and equipment expense              698         667       5
       Professional services expense             1,270         858      48
       FDIC and State assessments                  116         112       4
       Marketing expense                           342         264      30
       Real estate operations, net                 (62)         38    (263)
       Operations of investments in real
        estate                                     915         192     377
       Other operating expense                   1,020         908      12
         Total non-interest expense            $11,111      $9,252      20
 
 
 SOURCE  Cathay Bancorp, Inc.