Cathay General Bancorp Adopts New Share Repurchase Program

Rhea-AI Summary

Cathay General Bancorp (NASDAQ: CATY) announced a new share repurchase program, allowing the buyback of up to $125,000,000 of common stock. This follows the completion of a previous buyback program, which repurchased 2,858,503 shares at an average cost of $43.73. The timing and method of repurchases will depend on market conditions and other factors. As of this release, there are around 75,150,090 shares outstanding.

Positive

• Share repurchase program of $125 million enhances shareholder value.
• Previous buyback program completed successfully, indicating strong capital management.

Negative

• Potential dilution of shares if buybacks do not increase share price.
• Market conditions may affect the timing and volume of repurchases.

LOS ANGELES--(BUSINESS WIRE)-- Cathay General Bancorp (the “Company”, Nasdaq: CATY), the holding company for Cathay Bank, announced that its Board of Directors has adopted a new share repurchase program authorizing the Company to repurchase up to $125,000,000 of the Company’s common stock. The previous $125,000,000 share repurchase program announced on September 2, 2021, was completed on February 18, 2022, with the repurchase of 2,858,503 shares at an average cost of $43.73.

The share repurchases may be made from time to time on the open market or in privately negotiated transactions. The timing, price and volume of the share repurchases will be determined by the Company’s management based on its evaluation of market conditions, relevant securities laws and other factors. Repurchases may also be made under a Rule 10b5-1 plan, which if adopted would allow stock repurchases when the Company might otherwise be precluded from doing so under insider trading laws. The share repurchase program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. As of the date of this release, the Company has approximately 75,150,090 shares of common stock outstanding.

ABOUT CATHAY GENERAL BANCORP

Cathay General Bancorp is the holding company for Cathay Bank, a California state-chartered bank. Cathay General Bancorp’s website is found at www.cathaygeneralbancorp.com. Founded in 1962, Cathay Bank offers a wide range of financial services. Cathay Bank currently operates 47 branches in California, 10 branches in New York State, four in Washington State, two in Illinois, two in Texas, one in Maryland, one in Massachusetts, one in Nevada, one in New Jersey, one in Hong Kong, and a representative office in Beijing, Shanghai and Taipei. Cathay Bank's website is found at www.cathaybank.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220526005789/en/

Heng W. Chen

(626) 279-3652

Source: Cathay General Bancorp

FAQ

What is the purpose of Cathay General Bancorp's new share repurchase program?

The new share repurchase program aims to enhance shareholder value by buying back up to $125 million of common stock.

When was the previous share repurchase program by Cathay General Bancorp completed?

The previous repurchase program was completed on February 18, 2022.

How many shares of common stock does Cathay General Bancorp have outstanding?

As of the announcement, Cathay General Bancorp has approximately 75,150,090 shares of common stock outstanding.

What was the average cost of shares repurchased in the previous program?

The average cost of shares repurchased in the previous program was $43.73.

How will Cathay General Bancorp determine the share repurchase timing?

The timing, price, and volume of share repurchases will be based on management's evaluation of market conditions and other relevant factors.