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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-KA
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: February 13, 1997
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CATHAY BANCORP, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-18630 95-4274680
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(State of Organization) (Commission Number) (IRS Employer I.D. #)
777 North Broadway, Los Angeles, California 90012 94111
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (213) 625-4700
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Not Applicable
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(Former name or former address, if changed since last report)
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ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
In accordance with the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder, the following pro
forma financial statements are being filed as part of this Amendment to Current
Report: (i) Pro Forma Condensed Combined Balance Sheet dated September 30, 1996;
and (ii) Pro Forma Condensed Combined Statements of Income for the year ended
December 31, 1995 and the nine months ended September 30, 1996. The pro forma
financial statements being filed with this Amendment to Current Report have been
revised to delete certain adjustments to decreases in interest expense.
Pursuant to the requirements of the Securities Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CATHAY BANCORP, INC.
Date: February 13, 1997 By: /s/ DUNSON K. CHENG
--------------------------------
Dunson K. Cheng
President and Chairman
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Pro Forma Condensed Combined Balance Sheet
<TABLE>
<CAPTION>
September 30, 1996
(unaudited)
Dr(Cr)
Bancorp First Public Pro Forma Pro Forma
Historical Historical Adjustments Combined
---------- ------------ ----------- ---------
(Dollar in thousands)
<S> <C> <C> <C> <C>
ASSETS
Cash and due from banks .............. $ 60,724 $ 13,610 $ (500) $ 73,834
Interest-bearing deposits
in other banks...................... - 200 - 200
Investment Securities................. 443,555 65,528 (15,484) 494,306
707
Mortgage-backed securities............ 52,548 44,245 111 96,904
Loans receivable, net................. 570,790 144,913 1,584 717,287
Core deposits intangibles............. - - - -
Other assets.......................... 72,530 9,424 (1,496) 80,458
Goodwill.............................. 9,837 9,837
----------- ------------ ----------- -----------
Total assets........................ $ 1,200,147 $ 277,920 $ (5,241) $ 1,472,826
=========== ============ ============ ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
LIABILITIES
Deposits.............................. $ 1,087,753 $ 251,388 $ 324 $ 1,338,817
Federal funds purchased and
repurchase agreements............... - - - -
Accrued interest payable and other
liabilities......................... 13,096 4,017 (1,482) 18,595
----------- ------------ ----------- -----------
Total liabilities................... 1,100,849 255,405 (1,158) 1,357,412
----------- ------------ ----------- -----------
SHAREHOLDERS' EQUITY
Common Stock: 8,922,540 pro forma
shares outstanding.................. 80 4,000 3,991 89
Capital in excess of par value........ 43,370 - (16,107) 59,477
Net unrealized gain (loss)............ (1,346) (616) (616) (1,346)
Retained earnings..................... 57,194 19,131 19,131 57,194
----------- ------------ ----------- -----------
Total Shareholders'
Equity 99,298 22,515 6,399 115,414
----------- ------------ ----------- -----------
Total Liabilities and
Shareholders' Equity.............. $ 1,200,147 $ 277,920 $ 5,241 $ 1,472,826
=========== ============ =========== ===========
Book value per common share........... $ 12.49 $ 5.63 $ - $ 13.03
</TABLE>
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Pro Forma Condensed Combined Statements of Income
(Unaudited)
<TABLE>
<CAPTION>
For the
Nine Months Ended For the Year
September 30, 1996 Ended December 31, 1995
------------------ -----------------------
First Adjust- Pro Forma First Adjust- Pro Forma
(in thousands) Bancorp Public ments Ref Combined Bancorp Public ments Ref Combined
-------- -------- -------- --- --------- -------- -------- -------- --- ---------
Dr(Cr) Dr(Cr)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total interest income .......... $ 61,989 $ 14,772 $ 655 (a) $ 76,106 $ 76,223 $ 18,627 $ 785 (a) $ 94,065
Total interest expense.......... 28,243 6,641 - 34,884 31,281 8,428 - 39,709
-------- -------- -------- -------- -------- -------- -------- --------
Net interest income............. 33,746 8,131 655 41,222 44,942 10,199 785 54,356
Provision for loan losses....... 2,700 142 - 2,842 7,301 301 - 7,602
-------- -------- -------- -------- -------- -------- -------- --------
Net interest income after
provision for loan losses..... 31,046 7,989 655 38,380 37,641 9,898 785 46,754
Non-interest income............. 4,202 173 - 4,375 6,221 657 - 6,878
Non-interest expenses -
Salaries and employee benefits 9,302 2,440 - 11,742 12,912 2,926 - 15,838
Other expenses ............... 10,240 3,918 492 (b) 14,650 14,705 2,743 664 (b) 18,112
-------- -------- -------- -------- -------- -------- -------- --------
Income before taxes............. 15,706 1,804 1,147 16,363 16,245 4,886 1,449 19,682
Income taxes.................... 5,992 748 (262)(c) 6,478 5,624 2,026 (314)(c) 7,336
-------- -------- -------- -------- -------- -------- -------- ---------
Net income...................... $ 9,714 $ 1,056 $ 885 $ 9,885 $ 10,621 $ 2,860 $ 1,135 $ 12,346
======== ======== ======== ======== ======== ======== ======== =========
PER SHARE DATA
Net Income per Common Share (e) $ 1.23 $ 0.26 $ - $ 1.12 $ 1.36 $ 0.72 $ - $ 1.42
</TABLE>
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NOTES TO THE PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
Balance Sheet
The Total Consideration Value is $31,600,000, with Total Cash Consideration
not to exceed 49% and the balance, 51% in Bancorp stock. The cash payment of
$15,484,000 to be paid with proceeds from securities due to mature in the
second half of 1996. Cathay Bancorp Inc. will issue new stock to settle the
remaining balance of the purchase price, $16,116,000. The number of shares to
be tendered is 905,870, based on the Calculation Date Cathay Bancorp Stock
Price of $17.790625 computed using the quotient of (i) the sum of each of the
high and low sales prices of Bancorp Stock as reported in The Wall Street
Journal as Nasdaq National Market System transactions on each of the 20 days on
which Bancorp Stock was traded immediately before November 8, 1996 which is
five business days before the closing date, November 18, 1996 divided by (ii)
40. The additional capital of $16,107,000 reflects the issuance of 905,870
shares of Bancorp stock which is computed based on a par value of $0.01 per
share.
The purchase price of $31,600,000 is allocated to the assets acquired and
the liabilities assumed based on their estimated fair values at September 30,
1996 in accordance with Accounting Principles Board Opinion No. 16, "Business
Combination," as amended ("APB No. 16"). The table below reflects the
allocation of the purchase price and the resultant goodwill. Total Goodwill of
approximately $9,837,000 is expected to be amortized over 15 years.
<TABLE>
<CAPTION>
(Dollars in thousands)
Purchase Price
Asset/Liabilities Allocation
<S> <C>
Cash $ (500)
Investment securities 707
Mortgage-backed securities 111
Loans receivable, net 1,584
Other real estate owned (1,681)
Deferred tax assets 185
Time deposits 324
Other liabilities (1,482)
Remaining unallocated purchase
price (Goodwill) 9,837
</TABLE>
Included in the Goodwill above is $500,000 in direct costs to be paid at
closing and an additional $1,482,000 of restructuring costs including the
termination of contracts and leases; severence package; directors retirement
plan and one-time charges related to First Public.
Statements of Income
(a) Decrease in securities interest income is due to proceeds from the
maturity of $15,000,000 in US Treasury note being used to pay for the purchase.
The loss in interest income is estimated to be $655,000 and $785,000 for the
nine-month and 12-month period beginning January 1, 1996 and January 1, 1995,
respectively.
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(b) Non-interest expense includes the amortization of goodwill of $492,000 and
$664,000 for the nine-month period and the 12-month period beginning January 1,
1996 and January 1, 1995, respectively, based on an estimated 15-year
amortization period.
(c) Additional income tax expense is computed using a 40% tax rate. The tax
attributes of First Public Savings Bank will carry over to the Bank including
all assets and liabilities and are recorded at amounts previously reflected,
adjusted for purchase price allocations. Goodwill is not tax deductible.
(d) The pro forma combined net income per common share data are based on
combined historical income of First Public and Bancorp assuming the Merger is
accounted for as a purchase.
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EXHIBIT LIST
There are no exhibits being filed with this Amendment to Current
Report on Form 8-KA.
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