Cathay Bank

Cathay Bank is a Chinese-American commercial bank founded in 1962 in Los Angeles. It was established by Fung Chow Chan and a group of community investors after Chan encountered difficulty obtaining a home loan as an immigrant. The bank was created to provide accessible financial services to Chinese-American customers and other underserved residents of Southern California, while operating as a regulated commercial bank rather than the savings-and-loan institution that the organizers initially sought to establish. The bank began operations as one of the first banks owned and operated primarily by Chinese Americans to serve the Southern California Chinese-American community. Its original identity combined conventional banking with a strong community orientation. Cathay later developed a broader customer base, serving individuals, small businesses, commercial borrowers, real-estate owners, and larger enterprises. Its services include consumer and business deposit accounts, residential and commercial lending, international banking, treasury and cash-management services, and wealth-management-related offerings. Cathay's historic headquarters opened in 1966 at 777 North Broadway in Los Angeles Chinatown. The building, designed by architect Eugene Kinn Choy, incorporated modern architectural elements with visual references to the cultural heritage of the bank's founders. Cathay opened its first branch in Monterey Park in 1979 and began developing an international presence with a Hong Kong representative office in 1985. The Hong Kong operation was later converted into a full-service branch, while representative offices were established in mainland China and Taiwan. From the 1990s onward, Cathay pursued geographic expansion and consolidation in the U.S. banking market. It acquired or absorbed institutions and selected assets including First Public Savings Bank, Lippo Bank's Westminster branch, assets of Golden City Commercial Bank, General Bank, Great Eastern Bank, New Asia Bank, United Heritage Bank, Asia Bank, N.A., and Far East National Bank. The bank also expanded into states such as Texas, New York, Massachusetts, Washington, New Jersey, Nevada, Maryland, Illinois, and other markets with significant commercial and Asian-American communities. Cathay Bank operates as a principal subsidiary of Cathay General Bancorp, a publicly traded bank holding company whose common stock trades on Nasdaq under the symbol CATY. Its business remains centered on relationship banking, commercial real estate and business finance, retail deposits, and cross-border services. In 2021, Cathay agreed to purchase selected HSBC Bank USA West Coast retail operations, including branches in California and Washington, strengthening its deposit and loan presence in those markets. The bank also established the Cathay Bank Foundation in 2002 to support affordable housing, community and economic development, and education. Its present brand combines mainstream U.S. banking capabilities with a longstanding connection to Chinese-American and other multicultural communities.

Cathay Bank grew out of the civic and financial experience of Fung Chow Chan, a Chinese immigrant who came to Los Angeles from Guangdong in 1933. Chan and his wife, Wai Hing, operated Phoenix Bakery in Los Angeles Chinatown. After Chan was denied a home loan because of his immigrant status, he organized local business and community leaders around the idea of creating a financial institution that would serve Chinese Americans more fairly. The organizers initially pursued a savings-and-loan charter, but repeated applications were unsuccessful. They eventually applied for a commercial bank charter and received approval on May 5, 1961. Cathay Bank began operations in 1962, becoming one of the earliest banks owned and operated primarily by Chinese Americans to serve Southern California's Chinese-American population. Chan's fellow founders included George T. M. Ching, Gerald T. Deal, Dr. Tin Y. Kwong, John R. MacFaden, Thomas Quon, and John F. Varela. Cathay's early development was closely linked to Los Angeles Chinatown. Its purpose was not limited to ethnic community banking: the bank provided ordinary commercial banking services, but its cultural familiarity and community relationships helped it reach customers who had faced barriers in established financial institutions. In 1966, the bank moved into a purpose-built headquarters at 777 North Broadway. Architect Eugene Kinn Choy designed the building in an International Modern style, incorporating references to Chinese heritage into its roofline and facade. The bank opened its first branch in Monterey Park in 1979. It began its international expansion in 1985 with a representative office in Hong Kong. Over time, Cathay added representative offices in Shanghai, Beijing, and Taipei, and the Hong Kong office became a full-service branch in 2007. These operations supported customers and businesses with connections between the United States and Asian markets, although the bank's principal franchise remained U.S.-based. During the 1990s and 2000s, Cathay moved from a predominantly Southern California institution toward a nationwide specialty commercial bank. It acquired First Public Savings Bank in 1996, the Westminster branch of Lippo Bank in 1997, and selected assets of Golden City Commercial Bank in New York in 1999. A Houston loan production office opened in 1999 and became a full-service branch in 2000. Cathay merged with General Bank in 2003 and opened branches in Boston and Kent, Washington, that same year. In 2006 it acquired Great Eastern Bank and New Asia Bank, followed by United Heritage Bank in 2007. Cathay continued expanding through acquisitions in the following decade. In 2015, Cathay General Bancorp announced the combination of Asia Bancshares, the holding company of Asia Bank, N.A., with Cathay. The transaction strengthened the bank's New York presence and added Maryland to its operating footprint. Cathay announced a plan to acquire Far East National Bank in 2016, with the transaction contributing to its commercial and Asian-American banking capabilities. The bank's holding company, Cathay General Bancorp, is publicly traded under the Nasdaq ticker CATY. Cathay also institutionalized its community role through the Cathay Bank Foundation, established in 2002 to support affordable housing, community and economic development, and education. In 2021, Cathay agreed to buy selected HSBC Bank USA West Coast retail operations, including ten branches in California and Washington, along with approximately $1 billion of deposits and $800 million of loans. The transaction illustrated Cathay's continuing strategy of combining organic growth with targeted acquisitions. Today, Cathay Bank remains an active U.S. commercial bank with a multicultural customer base, a broad domestic network, and selected Asian operations.

1. 2021HSBC West Coast retail operations agreement

   Cathay agreed to purchase selected HSBC retail branches, deposits, and loans in California and Washington.

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2. 2015Asia Bancshares combination announced

   Cathay General Bancorp announced the merger of Asia Bancshares into the Cathay organization.

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3. 2002Cathay Bank Foundation established

   The foundation was created to support affordable housing, community and economic development, and education.

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4. 1985Hong Kong representative office opens

   Cathay established its first overseas representative office in Hong Kong.

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5. 1979First Monterey Park branch opens

   Cathay expanded its Southern California branch network with a location in Monterey Park.

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6. 1966New Chinatown headquarters opens

   The bank opened its purpose-built headquarters at 777 North Broadway in Los Angeles Chinatown.

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7. 1962Cathay Bank begins operations

   Cathay began banking operations in Los Angeles as a Chinese-American-owned commercial bank serving Southern California.

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8. 1961Commercial bank charter approved

   Cathay's organizers received a commercial bank charter on May 5 after earlier efforts to establish a savings-and-loan institution had been rejected.

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A relationship-oriented U.S. commercial bank with historical roots in Chinese-American communities, a multicultural customer focus, and capabilities spanning consumer, business, commercial real-estate, and international banking.

• Retail bankingConsumer banking

  Cathay provides consumer deposit and everyday banking services through its U.S. branch network and digital channels. The retail franchise supports checking and savings relationships, certificates of deposit, consumer lending, residential finance, and other personal banking needs. Its historic community orientation is reflected in its concentration in metropolitan areas with substantial Asian-American and immigrant populations, while the product set is designed for a broad U.S. customer base.

• Commercial bankingBusiness banking

  Commercial banking is a central part of Cathay's franchise. The bank serves small and midsize businesses, privately held companies, entrepreneurs, and larger commercial customers with business deposits, credit facilities, working-capital finance, treasury services, and relationship-based advisory support. Its geographic and cultural links help it serve companies operating across U.S. and Asian commercial networks.

• Commercial real-estate lendingCommercial lending

  Cathay offers financing connected with commercial property ownership and development, including loans for income-producing real estate and related businesses. Commercial real-estate finance has historically been an important component of the bank's broader commercial-banking model, alongside other business credit products and deposit services.

• International bankingCross-border banking1985

  Cathay's international platform includes a full-service Hong Kong branch and representative offices associated with mainland China and Taiwan. These operations support cross-border relationships, trade and investment connections, and customers whose financial activity spans the United States and Asian markets. The international business complements, rather than replaces, the bank's primarily U.S.-based branch and lending franchise.

• Wealth managementWealth services

  Cathay's broader service offering includes wealth-management-related capabilities for individuals and businesses. These services complement deposit, lending, and relationship-banking products, although the available reference material does not specify a complete list of investment products or the structure of the relevant business.

• 2021Purchase of selected HSBC West Coast retail operationsM&A

  Cathay pursued additional scale in California and Washington and sought to expand its consumer deposit and branch platform.

  What changed. Cathay entered an agreement with HSBC Bank USA to acquire ten West Coast branches and approximately $1 billion in deposits and $800 million in loans.

  Aftermath. The agreement strengthened Cathay's retail presence in Washington and California and added customers and balances to its existing commercial and community-banking network.

  Deposits and loans included in the proposed transaction. Approximately $1 billion in deposits and approximately $800 million in loans (2021 announced transaction)

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• 2006Planned minority investment in First BankM&A

  Cathay sought to deepen its Asian banking relationships by acquiring a 20 percent stake in First Bank.

  What changed. Cathay announced the proposed investment on March 31, but the transaction did not proceed because the companies did not obtain approval from the Chinese government.

  Aftermath. The planned investment fell through, while Cathay continued its expansion through U.S. bank acquisitions and other forms of network development.

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• 2021Cathay agrees to purchase selected HSBC West Coast retail operations

  Cathay entered an agreement to purchase HSBC Bank USA's West Coast retail operations, including ten branches in California and Washington, approximately $1 billion in deposits, and approximately $800 million in loans.

  M&A
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• 2016Cathay announces Far East National Bank acquisition plan

  Cathay announced plans to acquire Far East National Bank, a transaction that further supported its Asian-American commercial banking network.

  M&A
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• 2015Cathay agrees to combine with Asia Bancshares

  Cathay General Bancorp announced an agreement to merge Asia Bancshares, the holding company of Asia Bank, N.A., into Cathay. The resulting combination increased Cathay's New York presence and added Maryland to its service area.

  M&A
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• 2007Cathay Bank completes United Heritage Bank acquisition

  The transaction expanded Cathay into New Jersey. Around the same period, its Hong Kong representative office was converted into a full-service branch.

  M&A
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• 2006Cathay Bank acquires Great Eastern Bank and New Asia Bank

  Cathay won a competitive process for Great Eastern Bank and also acquired New Asia Bank, continuing its consolidation strategy in markets serving Asian-American customers.

  M&A
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• 2003Cathay Bank merges with General Bank

  The merger expanded Cathay's banking platform and contributed to its broader U.S. geographic footprint.

  M&A
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• 1999Cathay expands beyond California

  Cathay opened a loan production office in Houston and expanded in New York through the purchase of selected assets of Golden City Commercial Bank.

  M&A
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• 1985Cathay Bank opens a Hong Kong representative office

  Cathay established its first overseas representative office in Hong Kong, beginning the international development of its Chinese-American banking franchise.

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• 1979Cathay Bank opens its first Monterey Park branch

  The bank expanded beyond its original Los Angeles Chinatown base by opening a branch in Monterey Park, an important Southern California Chinese-American and immigrant business community.

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1. Cathay Bank
2. Cathay Bank corporate website
3. Chinese-American Banking and Community Development in Los Angeles County