CATHAY GENERAL BANCORP AND SUBSIDIARIES
1ST** QUARTER 2025 REPORT ON FORM 10-Q**
TABLE OF CONTENTS
| PART I – FINANCIAL INFORMATION | 2 | |
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| Item 1. | FINANCIAL STATEMENTS (Unaudited) | 2 |
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| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) | 6 |
| Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 28 |
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| Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 43 |
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| Item 4. | CONTROLS AND PROCEDURES | 44 |
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| PART II – OTHER INFORMATION | 44 | |
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| Item 1. | LEGAL PROCEEDINGS | 44 |
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| Item 1A. | RISK FACTORS | 44 |
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| Item 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS | 44 |
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| Item 3. | DEFAULTS UPON SENIOR SECURITIES | 45 |
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| Item 4. | MINE SAFETY DISCLOSURES | 45 |
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| Item 5. | OTHER INFORMATION | 45 |
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| Item 6. | EXHIBITS | 45 |
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| SIGNATURES | 46 | |
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Forward-Looking Statements
In this Quarterly Report on Form 10-Q, the term “Bancorp” refers to Cathay General Bancorp and the term “Bank” refers to Cathay Bank. The terms “Company,” “we,” “us,” and “our” refer to Bancorp and the Bank collectively.
The statements in this report include forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995 regarding management’s beliefs, projections, and assumptions concerning future results and events. We intend such forward-looking statements to be covered by the safe harbor provision for forward-looking statements in these provisions. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including statements about anticipated future operating and financial performance, financial position and liquidity, growth opportunities and growth rates, growth plans, acquisition and divestiture opportunities, business prospects, strategic alternatives, business strategies, financial expectations, regulatory and competitive outlook, loan and deposit growth, investment and expenditure plans, financing needs and availability, level of nonperforming assets, and other similar forecasts and statements of expectation and statements of assumptions underlying any of the foregoing. Words such as “aims,” “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “hopes,” “intends,” “may,” “optimistic,” “plans,” “potential,” “possible,” “predicts,” “projects,” “seeks,” “shall,” “should,” “will,” and variations of these words and similar expressions are intended to identify these forward-looking statements. Forward-looking statements by us are based on estimates, beliefs, projections, and assumptions of management and are not guarantees of future performance. These forward-looking statements are subject to certain risks, uncertainties and other factors that could cause actual results to differ materially from our historical experience and our present expectations or projections. Such risks, uncertainties and other factors include, but are not limited to:
| ● | local, regional, national and international economic and market conditions and events and the impact they may have on us, our clients and our operations, assets and liabilities; |
| ● | possible additional provisions for loan losses and charge-offs; |
| ● | credit risks of lending activities and deterioration in asset or credit quality; |
| ● | extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authorities; |
| ● | increased costs of compliance and other risks associated with changes in regulation; |
| ● | higher capital requirements from the implementation of the Basel III capital standards; |
| ● | compliance with the Bank Secrecy Act and other money laundering statutes and regulations; |
| ● | potential goodwill impairment; |
| ● | fluctuations in interest rates; |
| ● | risks associated with acquisitions and the expansion of our business into new markets; |
| ● | inflation and deflation; |
| ● | real estate market conditions and the value of real estate collateral; |
| ● | environmental liabilities; |
| ● | our ability to generate anticipated returns from our investments and/or financings in certain tax advantaged-projects; |
| ● | our ability to compete with larger competitors; |
| ● | our ability to retain key personnel; |
| ● | successful management of reputational risk; |
| ● | natural disasters, public health crises (including the occurrence of a contagious disease or illness) and geopolitical events; |
| ● | potential for new or increased tariffs or trade restrictions; |
| ● | failures, interruptions, or security breaches of our information systems; |
| ● | our ability to adapt our systems to the expanding use of technology in banking; |
| ● | risk management processes and strategies; |
| ● | adverse results in legal proceedings; |
| ● | the impact of regulatory enforcement actions, if any; |
| ● | certain provisions in our charter and bylaws that may affect acquisition of the Company; |
| ● | changes in accounting standards or tax laws and regulations; |
| ● | market disruption and volatility; |
| ● | fluctuations in the Bancorp’s stock price; |
| ● | restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; |
| ● | issuances of preferred stock; |
| ● | capital level requirements and successfully raising additional capital, if needed, and the resulting dilution of interests of holders of Bancorp common stock; and |
| ● | the soundness of other financial institutions. |
These and other factors are further described in Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2024 (Item 1A in particular), other reports and registration statements filed with the Securities and Exchange Commission (“SEC”), and other filings Bancorp makes with the SEC from time to time. Actual results in any future period may also vary from the past results discussed in this report. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. We have no intention and undertake no obligation to update any forward-looking statement or to announce publicly any revision of any forward-looking statement to reflect developments, events, occurrences or circumstances after the date of such statement, except as required by law.
Bancorp’s filings with the SEC are available at the website maintained by the SEC at http://www.sec.gov, or by request directed to Cathay General Bancorp, 9650 Flair Drive, El Monte, California 91731, Attention: Investor Relations (626) 279-3296.
