861842--2/29/2008--CATHAY_GENERAL

related topics

{loan, real, estate}

{condition, economic, financial}

{operation, international, foreign}

{operation, natural, condition}

{loss, insurance, financial}

{competitive, industry, competition}

{regulation, government, change}

{debt, indebtedness, cash}

{provision, law, control}

{system, service, information}

{acquisition, growth, future}

{tax, income, asset}

The allowance for credit losses is an estimate of probable credit losses. Actual credit losses in excess of the estimate could adversely affect our net income and capital. Fluctuations in interest rates could reduce our net interest income and adversely affect our business. We have engaged in and may continue to engage in further expansion through acquisitions, which could negatively affect our business and earnings. Inflation and deflation may adversely affect our financial performance. As we expand our business outside of California markets, we will encounter risks that could adversely affect us. The risks inherent in real estate and construction lending may adversely affect our net income. Adverse economic conditions in California and other regions where we have operations could cause us to incur losses. Our use of appraisals in deciding whether to make a loan on or secured by real property does not ensure the value of the real property collateral. We face substantial competition from larger competitors. Adverse effects of banking regulations or changes in banking regulations could adversely affect our business by increasing our expenses, limiting our activities, or altering the competitive balance. Our financial results could be adversely affected by changes in California tax law and changes in its interpretation relating to registered investment companies and real estate investment trusts. Our business may be adversely affected by general conditions in the economy and the financial markets. Natural disasters and geopolitical events beyond our control could adversely affect us. Adverse conditions in Asia could adversely affect our business. Statutory restrictions on dividends and other distributions from the Bank may adversely impact us by limiting the amount of distributions the Bancorp may receive. Our need to continue to adapt to our information technology systems to allow us to provide new and expanded services could present operational issues and require significant capital spending. Certain provisions of our charter, bylaws, and rights agreement could make the acquisition of our company more difficult.

Full 10-K form ▸

861842--2/29/2008--CATHAY_GENERAL_BANCORP