Cathay Bank

Cathay Bank, Inc. is a pioneer in the financial markets of the Chinese American community, with a customer-centric approach to serving the community, with a proven track record of excellence in retail banking, corporate finance, and digital services. Founded in 1962 by Fung Chow Chan, a Chinese-American entrepreneur with the aim of providing equal financial services to immigrants, it is headquartered in Los Angeles Chinatown, California, with an administrative center in El Monte, California. As a wholly owned subsidiary of Cathay General Bancorp (NASDAQ: CATY), Cathay Bank serves more than 1 million customers and serves as a financial pillar for the Chinese-American community through its solid financial performance and innovative capabilities.

Bank

BasicsCathay Bank is a privately owned commercial bank founded in 1962 and headquartered in Los Angeles Chinatown, California, USA. Founded by Chen Fangzhou, the bank obtained a banking license in 1962, becoming one of the first banks in the United States to be founded by Chinese Americans. Cathay Financial Holdings was established in 1986 and is listed on the NASDAQ (ticker symbol: CATY) with major shareholders including institutional investors and public shareholders. Cathay Bank is regulated by the Federal Reserve, the California Department of Financial Protection and Innovation (DFPI), and the Federal Deposit Insurance Corporation (FDIC) to comply with the U.S. Banking Act and international financial standards to ensure transparency and the safety of customer funds. Its deposits are protected by the FDIC, with a maximum of $250,000 per depositor. The Bank's SWIFT code is CATHUS6L and the Legal Entity Identifier (LEI) is 5493003NOCSC6LUWUF03. Cathay Bank has branches in nine U.S. states (California, Massachusetts, New York, Texas, Washington, Illinois, New Jersey, Nevada, Maryland), a branch in Hong Kong, and representative offices in Beijing, Shanghai, and Taipei, with approximately 1,200 employees worldwide.

Deposit & Loan Products

depositsCathay

Bank offers a variety of deposit products to meet the savings needs of individual and corporate customers:

Demand Deposits: including checking accounts and savings accounts, such as "Personal Savings Accounts", with a minimum opening amount of US$100 and a base annualized rate of return (APY) of approximately 0.05%-0.3%, subject to confirmation of the latest interest rate through branch or online banking (Deposit Services).

• Fixed deposits: support USD, RMB and other currencies, deposit terms from 3 months to 5 years, the minimum deposit is 1000 USD. In 2025, the interest rate on Time Deposits (CDs) can reach up to 4.0% (12 months, no minimum deposit requirement) through online banking.

• Featured Products:

  • High Yield Savings Accounts: e.g. "eAdvantage Savings Accounts" offer up to 4.2% APR with a balance of $100,000 or more and no monthly fees.

  • Large Certificates of Deposit (CD): Support flexible tenor, suitable for large amount of money customers, the interest rate needs to be queried through the branch or app, and the early withdrawal penalty is 90 to 180 days of interest.
    Customers can check the "Cloud Interest Rate" offer through the Cathay Mobile app or online banking, and the deposit products can be opened and calculated instantly, and some accounts can offer no transaction fee.

loansCathay

Bank offers a comprehensive range of loan products to meet diverse financing needs

• Mortgages: Fixed- and variable-rate mortgages are available for up to 80% of the value of the property and are repaid over a period of up to 30 years. In 2025, the fixed interest rate will be as low as 4.19% (2-year), the floating interest rate will be based on the Prime Rate (about 6.95%), and cash rebates and green mortgage discounts (energy-efficient homes) will be provided, and the application will require a credit score of 700 or more and an annual income of more than $30,000 (mortgage servicing).

• Car Loans: Support new and used car financing, with a loan amount of up to $350,000, a term of up to 72 months, an annualized interest rate (APR) as low as 5.99%, and a credit score of 660 or above.

• Personal Line of Credit: This includes personal loans (APR as low as 10.99% and maximum amount of $200,000) and asset-based overdrafts (up to 95% of the collateral market value) with a monthly salary of at least $30,000 and a good credit history.

• Flexible repayment options: Mortgages and personal loans offer no penalty for early repayment, weekly or bi-weekly payment plans, and a revolving line of credit for flexible debt management.
  All loans are subject to bank approval, and customers are required to provide credit history, proof of income and asset information, subject to the terms of the loan agreement. The bank's business loan services (e.g. commercial real estate loans, SBA loans) provide additional support to cross-border businesses (business loans).

Digital Service

ExperienceCathay Bank's mobile banking app, Cathay Mobile, is at the heart of its digital services, available for download on iOS 14.0 and above and Android 9.0 and above, with an App Store rating of approximately 4.7 and a Google Play rating of approximately 4.5, with users praising its quick launch (in less than 2 seconds) and intuitive interface (Cathay Mobile app). Core features include:

• Face recognition: support for biometric authentication (such as Face ID and Touch ID), combined with strong encryption technology to ensure transaction security.

• Real-time transfers: Instant transfers in USD with Interac e-Transfer and Zelle up to $2,500 per day, international money transfers to more than 100 countries, and low-rate transfers in partnership with Western Union.

• Bill management: Support online bill payment, automatic deduction and e-statement, and classify transaction records in real time.

• Investment Tool Integration: Support stocks, ETFs, mutual funds, and GICs trading through the SavvyMoney platform, providing real-time market data and investment advisory services (Investment Services).
  The online banking platform "Cathay Online Banking" supports multiple browsers and provides similar functions, allowing customers to open an account in 5 minutes through the app or official website. The app supports accessibility features such as dynamic font adjustment and VoiceOver compatibility for visually impaired and hearing-impaired customers. Some users reported occasional technical issues, but the bank continued to optimize the user experience (e-banking services).

Technological

InnovationCathay Bank actively explores in the field of financial technology, relying on Cathay Financial Holdings' technical resources to promote digital transformation:

• AI customer service: Introducing an AI-driven customer service system to analyze transaction behavior, Detect fraud risks in real-time, with plans to launch a virtual assistant in 2025 that will support 24/7 inquiries and personalized financial advice.

• Robo-advisor: Provide AI-based investment management services through the SavvyMoney platform, recommend diversified portfolios based on customer risk appetite, with a minimum investment of $1,000 and no subscription fees.

• Open Banking API Support: Follows the U.S. Open Banking Framework, integrates with third-party service providers, provides account management and financial services interoperability, especially in the areas of trade finance and cross-border payments.

• Other innovations: support for QR code payments, mobile check deposits, and the eTradeConnect platform to simplify trade finance applications; Support Apple Pay, Google Pay and other mobile payment methods. In 2024, the bank will invest $50 million to upgrade its cloud technology and data analytics platform to improve operational efficiency.

Distinctive Services & DifferentiationCathay

Bank is known for its support and internationalization capabilities for the Chinese community:

• Chinese Community Support: Multilingual services (English, Mandarin, Cantonese) for the Chinese community, Launch culturally relevant financial products, such as savings and loan programs for immigrants.

• International presence: With a branch in Hong Kong and representative offices in Beijing, Shanghai and Taipei, it supports trade finance (international services) in countries along the "Belt and Road".

• Sustainable Finance: Launched green bonds and preferential rate loans, supported environmentally friendly projects, and responded to the United Nations Principles for Responsible Banking, winning the "Best Community Bank Award" in 2023.

• Wealth Management: Provide individual pension funds, unit trusts and insurance products to meet the needs of high-net-worth customers in line with the global investment market (wealth management).

• Community Contributions: Through the Cathay Bank Foundation, we support education and philanthropic programs, donating $1 million in 2023 to community development and financial literacy workshops to improve customers' financial literacy.

Market Position & AccoladesCathay

Bank is one of the leading banks in the Chinese American community, with total assets of approximately $23 billion in 2023, ranking among the top community banks in the United States. With branches in nine U.S. states and serving more than 1 million customers, the bank is a market leader in retail banking and SME finance. Its international footprint covers Asia and North America, and it will rank high on the Forbes Global 2000 list in 2023. Key accolades include:

• "Best Community Bank Award" 2023.

• 2022 Greenwich Associates SME Customer Experience Award.

• The 2023 "Best Employer" certification recognizes performance in employee development and community support.

• 2023 U.S. Green Finance Pioneer Award.
  Cathay Bank's solid financial performance and innovative capabilities have made it a leader in U.S. and regional financial markets.

SummaryCathay

Bank, Inc. has become a pioneer in the financial market for the Chinese American community with its deep community roots, international business layout and innovative financial services. It offers a wide range of deposit and loan products, including high-yield savings accounts, term deposits, and flexible mortgages and personal loans, to meet the diverse needs of its customers. In terms of digital services, the Cathay Mobile app has been praised for its efficient real-time transfer and investment management features. Technological innovations, including AI customer service, open banking APIs, and mobile payment platforms, demonstrate its forward-looking digital transformation. With its support for the Chinese American community, its international presence, commitment to sustainable finance, and multiple industry accolades in 2023, Cathay Bank continues to demonstrate strong competitiveness and influence in the U.S. and regional financial markets.

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