Cathay General Bancorp (CATY.OQ) Company Profile | Reuters.com
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Profile: Cathay General Bancorp (CATY.OQ)

CATY.OQ on NASDAQ Stock Exchange Global Select Market

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Cathay General Bancorp, incorporated on March 1, 1990, is a bank holding company. The Company holds Cathay Bank, a California state-chartered commercial bank (the Bank); approximately seven limited partnerships investing in affordable housing investments, in which the Bank is the sole limited partner; GBC Venture Capital, Inc, and Asia Realty Corp. The Company also owns the common stock of over five statutory business trusts created for issuing capital securities.

Lending Activities

The Bank primarily services individuals, professionals and small to medium-sized businesses in the local markets, in which its branches are located and provides commercial mortgage loans, commercial loans, small business administration (SBA) loans, residential mortgage loans, real estate construction loans, home equity lines of credit and installment loans to individuals for automobile, household and other consumer expenditures. The Bank has branches in Southern California, Northern California, New York, Illinois, Washington, Texas, Maryland, Massachusetts, Nevada, New Jersey and Hong Kong and a representative office in Shanghai and in Taipei. As a commercial bank, the Bank accepts checking, savings and time deposits, and makes commercial, real estate, personal, home improvement, automobile, and other installment and term loans.

The Bank's Commercial mortgage loans are secured by first deeds of trust on commercial properties. The Bank's commercial mortgage portfolio includes primarily commercial retail properties, shopping centers, owner-occupied industrial facilities, and secondarily, office buildings, multiple-unit apartments, hotels and multi-tenanted industrial properties. The Bank provides financial services to diverse commercial and professional businesses in its market areas. Commercial loans consist primarily of short-term loans to support general business purposes, or to provide working capital to businesses in the form of lines of credit to finance trade. The Bank originates single-family-residential mortgage loans. The single-family-residential mortgage loans are conforming, nonconforming, and jumbo residential mortgage loans, and are secured by first or subordinate liens on single (one- to four-family) family residential properties. The Bank's products include a fixed-rate residential mortgage loan and an adjustable-rate residential mortgage loan. The Bank's real estate construction loan activity focuses on providing short-term loans to individuals and developers, primarily for the construction of multi-unit projects. Residential real estate construction loans are typically secured by first deeds of trust and guarantees of the borrower. The Bank offers variable-rate home equity lines of credit that are secured by the borrower's home. The Bank's commercial loans amount to approximately $2.3 billion. Its residential mortgages amount to approximately $2.1 billion. Its commercial mortgages amount to approximately $5.3 billion. Its real estate construction loans amount to approximately $441.543 million. Its other loans amount to approximately $2.493 million. Its total loans amount to approximately $10.2 billion.

Investment Activities

The Bank's investment portfolio consists of the United States government securities, the United States government sponsored entities, mortgage-backed securities, collateralized mortgage obligations, corporate debt instruments and mutual funds. The bank's investment securities amount to approximately $1.6 billion. The United States government securities amount to approximately $284.288 million. The United States government sponsored entities amount to approximately $148.160 million. The mortgage-backed securities amount to approximately $1.06 billion. The Bank's collateralized mortgage obligations amount to approximately $36,000. Its corporate debt securities amount to approximately $73.855 million. Its mutual funds amount to approximately $5.833 million. Through Cathay Wealth Management business unit, the Bank provides its customers the ability to trade securities online and to purchase mutual funds, annuities, equities, bonds, and short-term money market instruments.

Sources of funds

The Bank offers a range of deposit products in order to meet its customers' needs. The Bank offers passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, college certificates of deposit, and public funds deposits. The Bank's deposits are obtained from residents within its geographic market area. The Bank utilizes traditional marketing methods to attract new customers and deposits, by offering a wide variety of products and services and utilizing various forms of advertising media. Its borrowings include securities sold under agreements to repurchase, the purchase of federal funds, funds obtained as advances from the Federal Home Loan Bank (FHLB), borrowing from other financial institutions, and the issuance of Junior Subordinated Notes. The Banks total deposits amount to approximately $10.51 billion. The Bank primarily uses customer deposits to fund its operations, and to a lesser extent borrowings in the form of securities sold under agreements to repurchase, advances from the FHLB, and other borrowings. The Bank's deposits are obtained from the Bank's geographic market area. The Bank's borrowings include securities sold under agreements to repurchase, Federal funds purchased, funds obtained as advances from the FHLB of San Francisco and borrowings from other financial institutions. Securities sold under agreements to repurchase amount to approximately $400 million.

Subsidiary Activities

The Company's subsidiaries include Cathay Capital Trust I, Cathay Statutory Trust I, Cathay Capital Trust II, Cathay Capital Trust III and Cathay Capital Trust IV (collectively the Trusts). The Trusts are statutory business trusts. The Trusts issued capital securities representing undivided preferred beneficial interests in the assets of the Trusts. The business purpose of GBC Venture Capital, Inc. is to hold equity interests, such as options or warrants, received as part of business relationships and to make equity investments in companies and limited partnerships subject to applicable regulatory restrictions.

Company Address

Cathay General Bancorp

777 N BROADWAY
LOS ANGELES   CA   90012-2819
P: +1213.6254700
F: +1213.6251368

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