861842--3/2/2009--CATHAY_GENERAL

related topics

{condition, economic, financial}

{stock, price, share}

{loan, real, estate}

{regulation, change, law}

{loss, insurance, financial}

{tax, income, asset}

{operation, international, foreign}

{operation, natural, condition}

{cost, operation, labor}

{debt, indebtedness, cash}

{competitive, industry, competition}

{investment, property, distribution}

{provision, law, control}

{personnel, key, retain}

{system, service, information}

{acquisition, growth, future}

{stock, price, operating}

Difficult economic and market conditions have adversely affected our industry. If current levels of market disruption and volatility continue or worsen, there can be no assurance that we will not experience an adverse effect, which may be material, on our ability to access capital and on our business, financial condition and results of operations. U.S. and international financial markets and economic conditions could adversely affect our liquidity, results of operations, and financial condition. We may be required to make additional provisions for loan losses and charge off additional loans in the future, which could adversely affect our results of operations. 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. We may experience goodwill impairment. Liquidity risk could impair our ability to fund operations and jeopardize our financial condition. Our business is subject to interest rate risk and 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. Our loan portfolio is largely secured by real estate, which can adversely affected our net income 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. We are subject to extensive government regulation that could limit or restrict our activities, which, in turn, may hamper our ability to increase our assets and earnings. The short term and long term impact of the new Basel II capital standards and the forthcoming new capital rules to be proposed for non-Basel II U.S. banks is uncertain. We are dependent on key personnel and the loss of one or more of those key personnel may materially and adversely affect our prospects. Managing reputational risk is important to attracting and maintaining customers, investors and employees. 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. State laws may restrict our ability to pay dividends. The terms of our outstanding preferred stock limit our ability to pay dividends on and repurchase our common stock and there can be no assurance of any future dividends on our common stock generally. Our outstanding preferred stock impacts net income available to our common stockholders and earnings per common share, and the Warrant as well as other potential issuances of equity securities may be dilutive to holders of our common stock. Because of our participation in the TARP Capital Purchase Program, we are subject to several restrictions including restrictions on compensation paid to our executives. 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. The price of our common stock may be volatile or may decline. Certain provisions of our charter, bylaws, and rights agreement could make the acquisition of our company more difficult. Our financial results could be adversely affected by changes in accounting standards or tax laws and regulations.

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861842--3/2/2009--CATHAY_GENERAL_BANCORP