Cathay General Bancorp (CATY) Q4 2000 earnings summary

Executive summary

• 2000 marked an 18th consecutive quarter of double-digit YoY earnings growth: net income rose 27% to $38.6m and diluted EPS rose 27% to $4.25.

• Year-end assets reached $2.207bn, up 11% YoY; net loans grew 15% to $1.437bn and deposits rose 9% to $1.876bn.

• Geographic expansion continued with Houston converted to a full-service branch in December, complementing operations in California and New York.

Financial highlights

• Pretax income increased 21% to $60.449m; net interest income before provision rose 20% to $90.397m.

• Non-interest income increased 44% to $12.8m; non-interest expense rose 27% to $38.5m, largely reflecting new branches and the Diamond Bar opening.

• Q4 net income was $9.694m and diluted EPS was $1.07; Q3 net income was $11.452m and diluted EPS was $1.26.

• Cash dividends paid per share increased to $0.880 from $0.805; year-end stockholders’ equity rose 20% to $214.8m.

Outlook and guidance

• Management expected a marked U.S. economic slowdown in 2001 and characterized the year ahead as challenging.

• Priorities included building branch networks in New York and Texas, expanding Internet and investment services, and using technology to improve efficiency.

• Planned investment offerings included term life insurance, estate planning and asset management; service expansion was planned for New York, Houston, Hong Kong and Taiwan.