Cathay General Bancorp (CATY)

YEAR-TO-DATE REVIEW

          Net income was $117.6 million, or $2.27 per diluted share for the twelve months ended December  31, 2006, an increase of 12.9% in net income over the $104.1 million, or $2.05 per diluted share for the twelve months ended December 31, 2005, due primarily to the increase of net interest income.  The net interest margin on a fully-taxable-equivalent basis for 2006 decreased 9 basis points to 4.17% compared to 4.26% in 2005.

          Return on average stockholders’ equity was 13.61% and return on average assets was 1.60% in 2006, compared to a return on average stockholders’ equity of 14.05% and a return on average assets of 1.69% in 2005.  The efficiency ratio in 2006 was 37.88% compared to 36.86% in 2005.

YEAR-TO-DATE REVIEW

          Net income was $87.0 million, or $1.69 per diluted share for the nine months ended September 30, 2006, an increase of $9.6 million, or 12.5%, in net income over the $77.4 million, or $1.52 per diluted share for the same period a year ago due primarily to an increase in net interest income.  The net interest margin for the nine months ended September 30, 2006, decreased 2 basis points to 4.22% compared to 4.24% in the same period a year ago.

          Return on average stockholders’ equity was 13.83% and return on average assets was 1.62% for the nine months of 2006, compared to a return on average stockholders’ equity of 14.09% and a return on average assets of 1.69% for the nine months of 2005.  The efficiency ratio for the nine months ended September 30, 2006 was 37.55% compared to 36.76% during the same period a year ago.

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