UCBH Holdings, Inc. Reports Record Third Quarter Results

UCBH Holdings, Inc. (NASDAQ: UCBH), the holding company of United Commercial Bank (UCB™), today reported record net income of $30.8 million for the third quarter ended September 30, 2007. This represented an increase of 20.5%, compared with net income of $25.6 million for the quarter ended September 30, 2006. The diluted earnings per common share were $0.29 for the third quarter of 2007, compared with $0.26 for the corresponding period of 2006. Chairman, President and Chief Executive Officer, Thomas S. Wu said, "We are very pleased with our record third quarter financial results. Our strong growth in net income reflects the successful execution of our business strategy in creating a transpacific trade finance platform, which will be further enhanced by the recent corporate development activities. This strategy has been the key driver of our strong growth in commercial loans and noninterest income, and has produced significant operating leverage from our earlier investments in infrastructure to support our growth. "We are also pleased with the third quarter announcement of our strategic alliance with China Minsheng Banking Corp., Ltd. This historical transaction validates our Greater China strategy, enhances our position to expand our business and gain market share in the U.S. and in China, and provides significant access to capital to fund potential future growth. Further, it provides the equity portion of the funding for the acquisition of Business Development Bank. The regulatory approval process associated with our pending acquisition of Business Development Bank remains on track, and we expect to close the transaction in the fourth quarter of 2007,” concluded Mr. Wu. Third Quarter Operating Results Net interest income before provision for loan losses for the quarter ended September 30, 2007, increased by $17.8 million, or 26.9%, to $83.9 million, compared with $66.1 million for the same period of 2006. This increase was due to organic balance sheet growth and the acquisitions of The Summit National Bank ("Summit”) in December 2006 and The Chinese American Bank ("CAB”) in May 2007. The net interest margin was 3.44% for the quarter ended September 30, 2007, a 9 basis point increase from the 3.35% net interest margin for the second quarter of 2007. This compares with a net interest margin of 3.43% for the third quarter of 2006. The increase in the net interest margin in the third quarter of 2007, when compared with the third quarter of 2006 reflects the effect of a 38 basis point increase in loan yields, which was partially offset by a 31 basis point increase in the funding cost. The average cost of deposits during the third quarter of 2007 was 3.80%, compared with 3.59% for the third quarter ended September 30, 2006. The 21 basis point increase in the average cost of deposits reflects the changes in market interest rates. The cost of deposits at September 30, 2007, decreased to 3.65%, reflecting management’s continued diligence in deposit pricing. The provision for loan losses was $3.0 million for the third quarter of 2007, compared with $936,000 for the corresponding quarter of 2006. The larger loan loss provision in the third quarter of 2007 reflects the changes in the loan mix and the loan growth during the third quarter of the year. Noninterest income of $10.8 million for the quarter ended September 30, 2007, was relatively consistent with the noninterest income for the corresponding quarter of 2006. Commercial banking fees increased by 40.9% to $5.2 million in the third quarter of 2007, compared with $3.7 million in the third quarter of 2006, reflecting the growth in the commercial business of the Bank. Service charges on deposit accounts and loan servicing income also reflect strong growth in the third quarter of 2007 over the corresponding quarter of 2006. The growth in these components of noninterest income reflects the ongoing expansion of the Company’s commercial banking platform. The increases in the commercial banking fees, deposit account fees and loan servicing income were offset by a decrease of $3.5 million, or 59.7%, in gain on sale of loans. This decrease reflects the planned reduction in the volume of loan sales in 2007, when compared with 2006. Noninterest expense for the third quarter of 2007 increased by 16.5%, to $43.6 million, from $37.4 million in the corresponding quarter of 2006. This increase was primarily the result of increased personnel costs and occupancy expenses related to the acquisitions of Summit in December 2006 and CAB in May 2007, as well as the additional staffing required for the growth of the Bank’s commercial banking business, and the expansion of the Bank’s infrastructure to support a larger and growing organization. The effective tax rate was 36.0% for the third quarter ended September 30, 2007, compared with 34.0% for the corresponding period of 2006. The reduced tax rate in 2006 reflects the utilization of Enterprise Zone tax credits. Net income increased by 20.5% to $30.8 million for the quarter ended September 30, 2007, compared with $25.6 million for the corresponding quarter of the prior year. The annualized return on average assets ("ROA”) for the quarter ended September 30, 2007, was 1.15%, and the annualized return on average equity ("ROE”) for the quarter ended September 30, 2007, was 13.37%. The ROA and ROE for the third quarter of 2006 were 1.24% and 15.51%, respectively. The efficiency ratio was 45.99% for the third quarter of 2007, compared with 48.54% for the corresponding period of 2006. Balance Sheet Highlights Total loans increased by $1.10 billion, or 21.8% annualized, to $7.89 billion at September 30, 2007, from $6.78 billion at December 31, 2006, following the sales of $300.8 million of commercial and multifamily real estate loans. Organic loan growth was $937.5 million, or 18.4%, during the first three quarters of 2007. Commercial business loans increased by $228.4 million, or 20.8% annualized, to $1.69 billion at September 30, 2007, from $1.46 billion at December 31, 2006. Construction loans increased by $432.3 million, or 54.7% annualized, to $1.49 billion at September 30, 2007, from $1.05 billion at December 31, 2006. Commercial real estate loans increased by $324.2 million, or 17.4% annualized, to $2.81 billion at September 30, 2007, from $2.48 billion at December 31, 2006. New loan commitments of $963.7 million for the third quarter of 2007 were comprised of $904.5 million of commercial loans and $59.3 million of consumer loans. Commercial business loan originations were $257.8 million in the third quarter of 2007, compared with $325.8 million in the third quarter of 2006. Construction loan commitments of $276.1 million in the third quarter of 2007 are consistent with the construction loan commitments in the third quarter of 2006. Commercial real estate loan originations increased by 33.4% to $289.9 million in the third quarter of 2007, from $217.3 million in the third quarter of 2006. With strong loan commitments in the third quarter, coupled with a loan pipeline of $2.15 billion as of September 30, 2007, we project loan growth will remain strong in the fourth quarter of 2007. The average loan yield improved to 7.93% for the quarter ended September 30, 2007, from 7.55% for the quarter ended September 30, 2006, as we continue to improve our loan mix to increase profitability. Total nonperforming assets as of September 30, 2007, were $36.9 million, or 0.33%, reflecting management’s continued focus on credit quality. This is compared with total nonperforming assets of $34.3 million, or 0.32%, at June 30, 2007. Net loan charge-offs for each of the quarters ended September 30, 2007 and 2006 were $2.3 million. Annualized net loan charge-offs for the third quarter of 2007 were 0.12%, compared with 0.16% for the corresponding quarter of 2006 and 0.07% for the second quarter of 2007. The ratio of allowance for loan losses to loans held in portfolio was 0.89% at September 30, 2007, compared with 0.93% at December 31, 2006, and 0.91% at June 30, 2007. The securities portfolio, including available for sale and held to maturity, was $1.77 billion at September 30, 2007, compared with $2.44 billion at December 31, 2006. The securities portfolio was 15.9% of total assets at September 30, 2007, compared with 23.6% of total assets at December 31, 2006. On October 19, 2007, the Company completed the securitization of $400.0 million of commercial real estate loans. This securitization will improve the risk-based capital of the Bank by approximately 35 basis points. Total deposits increased by $578.2 million, or 10.7% annualized, to $7.78 billion at September 30, 2007, from $7.20 billion at December 31, 2006. Organic deposit growth during this period was $266.6 million, or 4.9% annualized. Noninterest-bearing checking accounts increased by $75.2 million, or 13.1% annualized, in the first nine months of 2007, to $843.0 million. NOW, checking and money market accounts increased by $174.6 million, or 16.3% annualized, to $1.60 billion at September 30, 2007, from $1.43 billion at December 30, 2006. CDs increased by $282.3 million, or 9.3% annualized, to $4.35 billion at September 30, 2007, from $4.07 billion at December 31, 2006. The average cost of deposits for the quarter ended September 30, 2007, was 3.80%, an increase of 3 basis points from 3.77% for the quarter ended June 30, 2007. The cost of deposits at September 30, 2007, was 3.65%, reflecting management’s continued focus on disciplined deposit pricing. Stockholders’ equity increased by $155.6 million, or 26.4% annualized, to $941.7 million at September 30, 2007, from $786.1 million at December 31, 2006. The growth in equity resulted from the acquisition of CAB, which closed in May 2007 and the retention of earnings. The Tier I leverage capital ratio of the Bank was 8.59% at September 30, 2007, compared with 9.30% at December 31, 2006. The higher Tier I leverage ratio as of December 31, 2006, reflected the acquisition of Summit, which was completed on December 29, 2006. The total risk-based capital ratio of the Bank was 11.88% as of September 30, 2007, compared with 10.53% at December 31, 2006. The Bank’s capital ratios exceed regulatory requirements, and the Bank continues to be categorized as "well capitalized.” The Company’s capital ratios approximate those of the Bank, and the Company is also categorized as "well capitalized.” Third Quarter Earnings Teleconference and Webcast UCBH will hold a conference call and audio webcast on October 26, 2007, at 8:00 a.m. Pacific Time to discuss the financial results for the Company’s third quarter 2007. The webcast will be available through a link on the Investor Relations page of the Company’s web site at www.ucbh.com. If you are unable to listen to the webcast live, a replay will be available at www.ucbh.com. About UCBH Holdings, Inc. UCBH Holdings, Inc. is the holding company for United Commercial Bank, a state-chartered commercial bank, which is a leading bank in the United States serving the Chinese communities and American companies doing business in Greater China. With $11.08 billion in assets as of September 30, 2007, the Bank has 51 California branches/offices located in the San Francisco Bay Area, Sacramento, Stockton, Los Angeles and Orange counties, eight branches in New York, five branches in metropolitan Atlanta, three branches in New England, two branches in the Pacific Northwest, a branch in Houston, a branch in Hong Kong, and representative offices in Shanghai and Shenzhen, China and Taipei, Taiwan. UCB, with headquarters in San Francisco, provides commercial banking services to small- and medium-sized businesses and professionals in a variety of industries, as well as consumer and private banking services to individuals. The Bank offers a full range of lending activities, including commercial real estate and construction loans, commercial credit facilities, international trade finance, cash management, private client services, loans guaranteed by the U.S. Small Business Administration, residential mortgages, home equity lines of credit, and online banking services for businesses and consumers. For additional information, visit the web site for United Commercial Bank at www.ibankUNITED.com or the web site for UCBH Holdings, Inc. at www.ucbh.com. Forward-Looking Statements Certain statements contained in this release may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon specific assumptions that may or may not prove correct. Forward-looking statements are also subject to known and unknown risks, uncertainties and other factors relating to the Company’s and the Bank’s operations and business environment, all of which are difficult to predict, and many of which are beyond the control of the Company and the Bank. The factors include, among others: economic and business conditions in the areas and markets in which the Company and the Bank operate, particularly those affecting loans secured by real estate; deterioration or improvement in the ability of the Bank’s borrowers to pay their debts to the Bank; market fluctuations such as those affecting interest and foreign exchange rates and the value of securities in which the Bank invests; competition from other financial institutions, whether banks, investment banks, insurance companies or others; the ability of the Bank to assimilate acquisitions, enter new markets and lines of business, and open new branches, successfully; changes in business strategies; changes in tax law and governmental regulation of financial institutions; demographic changes; and other risks and uncertainties, including those discussed in the documents the Company files with the Securities and Exchange Commission ("SEC”). The foregoing may cause the actual results and performance of the Company and the Bank to be materially different from the results and performance indicated or suggested by the forward-looking statements. Further description of the risks and uncertainties are included in detail in the Company’s current, quarterly and annual reports, as filed with the SEC. UCBH Holdings, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Dollars in Thousands, Except Share and Par Value Amounts) (Unaudited)     September 30, December 31,   2007     2006     ASSETS Noninterest bearing cash $ 91,443 $ 112,343 Interest bearing cash 176,128 92,049 Federal funds sold   144,110     150,027     Cash and cash equivalents   411,681     354,419     Securities purchased under agreements to resell 200,000 175,000 Investment and mortgage-backed securities available for sale, at fair value 1,492,589 2,149,456 Investment and mortgage-backed securities held to maturity, at cost (fair value of $277,192 and $295,446 at September 30, 2007, and December 31, 2006, respectively) 274,547 290,673 Federal Home Loan Bank stock, Federal Reserve Bank stock and other equity investments 126,393 110,775 Loans held for sale, net of valuation allowance 189,388 142,861   Loans held in portfolio 7,698,531 6,635,660 Allowance for loan losses   (68,540 )   (62,015 )   Loans held in portfolio, net   7,629,991     6,573,645     Accrued interest receivable 60,370 50,803 Premises and equipment, net 145,097 115,610 Goodwill 286,729 226,780 Core deposit intangibles, net 23,804 28,325 Mortgage servicing rights, net 12,195 13,273 Other assets   228,347     114,794     Total assets $ 11,081,131   $ 10,346,414     LIABILITIES AND STOCKHOLDERS’ EQUITY Noninterest bearing deposits $ 842,958 $ 767,714 Interest bearing deposits   6,938,137     6,435,131     Total deposits   7,781,095     7,202,845     Securities sold under agreements to repurchase 500,000 401,600 Federal funds purchased 30,000 - Short-term borrowings 147,335 654,636 Subordinated debentures 406,646 240,549 Accrued interest payable 27,984 21,018 Long-term borrowings 1,134,139 906,651 Other liabilities   112,254     133,044     Total liabilities   10,139,453     9,560,343     Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued and outstanding - - Common stock, $0.01 par value, 180,000,000 shares authorized at September 30, 2007, and December 31, 2006; 103,920,862 and 99,448,181 shares issued and outstanding at September 30, 2007, and December 31, 2006, respectively 1,039 994 Additional paid-in capital 418,350 341,616 Retained earnings 541,458 464,616 Accumulated other comprehensive loss   (19,169 )   (21,155 )   Total stockholders’ equity   941,678     786,071     Total liabilities and stockholders’ equity $ 11,081,131   $ 10,346,414   UCBH Holdings, Inc. and Subsidiaries Condensed Consolidated Statement of Operations (Dollars in Thousands, Except Share and Per Share Amounts) (Unaudited)     Three Months Ended Sept. 30,   Nine Months Ended Sept. 30,   2007       2006     2007       2006     Interest and dividend income: Loans $ 151,580 $ 114,752 $ 426,495 $ 331,926 Federal funds sold and deposits with banks 2,842 1,682 8,526 3,920 Securities purchased under agreements to resell 3,341 1,239 7,834 1,239 Investment and mortgage-backed securities: Taxable 20,460 16,220 64,631 44,895 Nontaxable 3,611 2,686 10,212 8,062 FHLB Stock   917     1,313     2,714     2,308     Total interest and dividend income   182,751     137,892     520,412     392,350     Interest expense: Deposits 72,195 56,702 206,702 150,797 Federal funds purchased 195 - 221 30 Securities sold under agreements to repurchase 3,631 1,908 10,312 2,829 Short-term borrowings 3,129 1,523 12,772 8,137 Subordinated debentures 6,138 3,095 15,942 8,845 Long-term borrowings   13,539     8,540     37,973     23,958     Total interest expense   98,827     71,768     283,922     194,596     Net interest income 83,924 66,124 236,490 197,754 Provision for loan losses   (3,010 )   (936 )   (6,156 )   (2,492 )   Net interest income after provision for loan losses   80,914     65,188     230,334     195,262     Noninterest income: Commercial banking fees 5,188 3,682 15,140 11,193 Service charges on deposits 1,815 1,006 5,061 2,658 Gain (loss) on sale of securities, net 702 208 3,780 206 Gain on sale of SBA loans, net 855 704 2,265 2,306 Gain on sale of multifamily and commercial real estate loans, net 1,532 5,212 4,954 13,361 Lower of cost or market adjustment on loans held for sale (139 ) - (114 ) 150 Equity loss in other equity investments (900 ) (253 ) (2,164 ) (761 ) Acquisition termination fee - - - 5,000 Other fees   1,769     409     4,270     1,061     Total noninterest income   10,822     10,968     33,192     35,174     Noninterest expense: Personnel 24,405 19,900 71,943 66,372 Occupancy 5,510 4,400 15,535 11,815 Data processing 2,009 2,257 6,647 7,584 Furniture and equipment 2,139 1,862 6,530 5,297 Professional fees and contracted services 1,944 2,428 5,615 8,223 Deposit insurance 560 194 1,154 600 Communication 796 284 2,298 788 Core deposit intangible amortization 918 668 3,321 1,690 Loss (gain) on extinguishment of subordinated debentures and borrowings - - - (360 ) Other general and administrative   5,297     5,426     17,249     15,289     Total noninterest expense   43,578     37,419     130,292     117,298     Income before income tax expense 48,158 38,737 133,234 113,138 Income tax expense   17,337     13,167     47,168     38,743     Net income $ 30,821   $ 25,570   $ 86,066   $ 74,395     Earnings per share: Basic $ 0.30 $ 0.27 $ 0.85 $ 0.79 Diluted $ 0.29 $ 0.26 $ 0.82 $ 0.76   Dividends declared per share $ 0.030 $ 0.030 $ 0.090 $ 0.090   Average Shares Outstanding: Basic 103,834,048 94,523,317 101,709,167 94,357,245 Diluted 106,772,570 97,978,652 104,820,006 97,974,429 UCBH Holdings, Inc. and Subsidiaries Supplemental Data (Dollars in Thousands) (Unaudited)     Three Months Ended September 30, Nine Months Ended September 30,   2007       2006     2007       2006     Operating Ratios and Other Data: Return on average assets 1.15 % 1.24 % 1.11 % 1.22 % Return on average equity 13.37 15.51 13.30 15.68 Efficiency ratio (1) 45.99 48.54 48.31 50.36 Noninterest expense to average assets 1.63 1.81 1.69 1.93 Average equity to average assets 8.60 7.96 8.38 7.80 Dividend payout ratio (2) 10.34 11.54 10.98 11.84 Net loan charge-offs to average loans held in portfolio 0.12 0.16 0.10 0.17   New Loan Commitments: Commercial: Secured by real estate – nonresidential 289,866 217,303 847,223 622,280 Secured by real estate – multifamily 80,655 30,204 304,176 164,440 Construction 276,102 301,446 955,765 787,304 Business   257,842     325,799     825,403     888,564     Total commercial loans   904,465     874,752     2,932,567     2,462,588     Consumer: Residential mortgage (one-to-four family) 47,431 26,303 126,575 73,914 Other   11,840     7,832     29,872     24,377     Total consumer loans   59,271     34,135     156,447     98,291     Total loan commitments (3) $ 963,736   $ 908,887   $ 3,089,014   $ 2,560,879     Average Loan Balances: Commercial: Secured by real estate - nonresidential $ 2,754,143 $ 2,161,216 $ 2,635,067 $ 2,315,634 Secured by real estate - multifamily 1,366,315 1,440,952 1,334,823 1,494,214 Construction 1,345,393 769,698 1,213,297 644,227 Business   1,637,890     1,095,322     1,539,942     974,554     Total commercial loans   7,103,741     5,467,188     6,723,129     5,428,629     Consumer: Residential mortgage (one-to-four family) 477,928 558,727 465,520 593,396 Other   62,673     56,338     57,758     55,120     Total consumer loans   540,601     615,065     523,278     648,516     Total loans $ 7,644,342   $ 6,082,253   $ 7,246,407   $ 6,077,145     (1) Represents noninterest expense divided by the total of our net interest income before provision for loan losses and our noninterest income. (2) Represents dividends declared per share as a percentage of diluted earnings per share. (3) Excludes commitments related to loan participations. UCBH Holdings, Inc. & Subsidiaries Average Yields Earned/Rates Paid (Dollars in Thousands) (Unaudited)     Three Months Ended September 30, 2007   Three Months Ended September 30, 2006 Average Balance   Interest Income/ Expense   Average Yields Earned/ Rates Paid Average Balance   Interest Income/ Expense   Average Yields Earned/ Rates Paid Nontaxable equivalent basis: Interest-earning assets Loans (1)(2) $ 7,644,342 $ 151,580 7.93 % $ 6,082,253 $ 114,752 7.55 % Taxable securities (3) 1,617,076 20,460 5.06 1,326,243 16,220 4.89 Nontaxable securities (3) 275,532 3,611 5.24 224,155 2,686 4.79 FHLB stock 71,995 917 5.09 53,780 1,313 9.77 Securities purchased under resale agreements 184,239 3,341 7.25 66,304 1,239 7.47 Other   193,961   2,842 5.86     134,479   1,682 5.00     Total interest-earning assets 9,987,145 182,751 7.32 7,887,214 137,892 6.99 Noninterest-earning assets   726,893   -   393,819   -   Total assets $ 10,714,038 $ 182,751 $ 8,281,033 $ 137,892   Interest-bearing liabilities: Deposits: NOW, checking and money market accounts $ 1,561,262 $ 13,640 3.49 $ 1,375,736 $ 12,055 3.51 Savings accounts 741,573 1,750 0.94 687,193 2,376 1.38 Time deposits   4,492,421   56,804 5.06     3,700,199   42,271 4.57     Total interest-bearing deposits 6,795,256 72,194 4.25 5,763,128 56,702 3.94 Securities sold under agreements to repurchase 371,556 3,631 3.91 214,130 1,908 3.56 Short-term borrowings and Federal funds purchased 257,645 3,324 5.16 123,595 1,523 4.93 Long-term borrowings 1,151,958 13,539 4.70 696,942 8,540 4.90 Subordinated debentures   334,123   6,138 7.35     150,520   3,095 8.22     Total interest-bearing liabilities 8,910,538 98,826 4.44 6,948,315 71,768 4.13 Noninterest-bearing deposits 810,440 - 558,512 - Other noninterest-bearing liabilities 71,259 - 114,831 - Stockholders’ equity   921,801   -   659,375   -   Total liabilities and stockholders’ equity $ 10,714,038 $ 98,826 $ 8,281,033 $ 71,768   Net interest-earning assets/net interest income/net interest rate spread (4) $ 1,076,607 $ 83,925 2.88 % $ 938,899 $ 66,124 2.86 %   Net interest margin (5) 3.36 % 3.35 %   Ratio of interest-earning assets to interest-bearing liabilities 1.12x 1.14x   Tax equivalent basis: Total interest-earning assets (6) $ 9,987,145 $ 184,696 7.40 % $ 7,887,214 $ 139,338 7.07 % Total interest-bearing liabilities   8,910,538   98,826 4.44     6,948,315   71,768 4.13     Net interest-earning assets/net interest income/net interest rate spread (4) $ 1,076,607 $ 85,870 2.96 % $ 938,899 $ 67,570 2.94 %   Net interest margin (5) 3.44 % 3.43 %   Average cost of deposits: Total interest-bearing deposits $ 6,795,256 $ 72,194 4.25 % $ 5,763,128 $ 56,702 3.94 % Noninterest-bearing deposits   810,440   -   558,512   -   Total deposits $ 7,605,696 $ 72,194 3.80 % $ 6,321,640 $ 56,702 3.59 %   (1) Nonaccrual loans are included in the table for computation purposes; however, interest for such loans is recognized on a cash basis. (2) Average loans include loans held for sale. (3) Average yield on investment securities is computed using historical cost balances; the yield information does not give effect to changes in fair value that are reflected as a component of stockholders’ equity. (4) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities. (5) Net interest margin represents net interest income divided by average interest-earning assets. (6) Interest income from nontaxable securities has been adjusted to a tax equivalent basis using a statutory Federal income tax rate of 35.0%.  Interest income from nontaxable investment securities calculated on a tax equivalent basis was $5.5 million and $4.1 million for the three months ended September 30, 2007 and 2006, respectively. UCBH Holdings, Inc. and Subsidiaries Average Yields Earned/Rates Paid (Dollars in Thousands) (Unaudited)     Nine Months Ended September 30, 2007   Nine Months Ended September 30, 2006 AverageBalance   Interest Income/Expense   Average Yields Earned/Rates Paid AverageBalance   Interest Income/Expense   Average Yields Earned/Rates Paid Nontaxable equivalent basis: Interest-earning assets Loans (1)(2) $ 7,246,407 $ 426,495 7.85 % $ 6,077,145 $ 331,926 7.28 % Taxable securities (3) 1,708,250 64,631 5.04 1,247,969 44,895 4.80 Nontaxable securities (3) 274,657 10,212 4.96 224,898 8,062 4.78 FHLB Stock 71,281 2,714 5.08 48,765 2,308 6.31 Securities purchased under resale agreements 157,418 7,834 6.64 22,344 1,239 7.39 Other   181,524   8,526 6.26     110,620   3,920 4.72     Total interest-earning assets 9,639,537 520,412 7.20 7,731,741 392,350 6.77 Noninterest-earning assets   658,425   -   377,070   -   Total assets $ 10,297,962 $ 520,412 $ 8,108,811 $ 392,350   Interest-bearing liabilities: Deposits: NOW, checking and money market accounts $ 1,517,049 $ 38,994 3.43 % $ 1,297,232 $ 29,748 3.06 % Savings accounts 716,378 5,484 1.02 720,637 6,767 1.25 Time deposits   4,347,191   162,224 4.98     3,658,284   114,282 4.17     Total interest-bearing deposits 6,580,618 206,702 4.19 5,676,153 150,797 3.54 Securities sold under agreements to repurchase 336,902 10,312 4.08 101,831 2,829 3.70 Short-term borrowings and Federal funds purchased 314,047 12,993 5.52 246,143 8,167 4.43 Long-term borrowings 1,078,786 37,973 4.69 654,684 23,958 4.88 Subordinated debentures   281,299   15,942 7.56     149,046   8,845 7.91     Total interest-bearing liabilities 8,591,652 283,922 4.41 6,827,857 194,596 3.80 Noninterest-bearing deposits 747,186 - 533,698 - Other noninterest-bearing liabilities 96,431 - 114,485 - Stockholders’ equity   862,693   -   632,771   -   Total liabilities and stockholders’ equity $ 10,297,962 $ 283,922 $ 8,108,811 $ 194,596   Net interest-earning assets/net interest income/net interest rate spread (4) $ 1,047,885 $ 236,490 2.79 % $ 903,884 $ 197,754 2.97 %   Net interest margin (5) 3.27 % 3.41 %   Ratio of interest-earning assets to interest-bearing liabilities 1.12x 1.13x   Tax equivalent basis: Total interest-earning assets (6) $ 9,639,537 $ 525,911 7.27 % $ 7,731,741 $ 396,691 6.84 % Total interest-bearing liabilities   8,591,652   283,922 4.41     6,827,857   194,596 3.80     Net interest-earning assets/net interest income/net interest rate spread (4) $ 1,047,885 $ 241,989 2.86 % $ 903,884 $ 202,095 3.04 %   Net interest margin (5) 3.35 % 3.49 %   Average cost of deposits: Total interest-bearing deposits $ 6,580,618 $ 206,702 4.19 % $ 5,676,153 $ 150,797 3.54 % Noninterest-bearing deposits   747,186   -   533,698   -   Total deposits $ 7,327,804 $ 206,702 3.76 % $ 6,209,851 $ 150,797 3.24 %   (1) Nonaccrual loans are included in the table for computation purposes; however, interest for such loans is recognized on a cash basis. (2) Average loans include loans held for sale. (3) Average yield on investment securities is computed using historical cost balances; the yield information does not give effect to changes in fair value that are reflected as a component of stockholders’ equity. (4) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities. (5) Net interest margin represents net interest income divided by average interest-earning assets. (6) Interest income from nontaxable securities has been adjusted to a tax equivalent basis using a statutory Federal income tax rate of 35.0%.  Interest income from nontaxable investment securities calculated on a tax equivalent basis was $15.7 million and $12.4 million for the nine months ended September 30, 2007 and 2006, respectively. UCBH Holdings, Inc. and Subsidiaries Selected Financial Data (Dollars in Thousands, Except Per Share Amounts) (Unaudited)     September 30,   December 31,   2007     2006     Selected loan data: Loans held for sale: Commercial: Secured by real estate - nonresidential $ 187,863 $ 141,348 Commercial business   1,135     1,203     Total commercial loans   188,998     142,551     Consumer: Residential mortgage (one-to-four family)   390     310     Total loans held for sale (1) $ 189,388   $ 142,861     Loans held in portfolio: Commercial: Secured by real estate - nonresidential $ 2,619,291 $ 2,341,572 Secured by real estate - multifamily 1,341,407 1,275,594 Construction 1,486,581 1,054,302 Commercial business   1,689,750     1,461,322     Total commercial loans   7,137,029     6,132,790     Consumer: Residential mortgage (one-to-four family) 496,934 448,895 Other   64,568     53,975     Total consumer loans   561,502     502,870     Total loans held in portfolio (2) $ 7,698,531   $ 6,635,660     Nonperforming loans $ 32,525 $ 12,311 Other real estate owned (OREO) 4,333 2,887 Loan delinquency ratio 1.06 % 0.84 % Nonperforming assets to total assets 0.33 0.15 Nonperforming loans to loans held in portfolio 0.42 0.19 Allowance for loan losses to nonperforming loans 210.73 503.73 Allowance for loan losses to loans held in portfolio 0.89 0.93 Net loan to deposit ratio 100.49 93.25   Selected deposit data: NOW, checking and money market accounts $ 2,444,064 $ 2,194,176 Savings accounts 988,721 942,672 Time deposits   4,348,310     4,065,997     Total deposits $ 7,781,095   $ 7,202,845     Cost of deposits 3.65 % 3.66 %   Selected equity data: Book value per share $ 9.06 $ 7.90   United Commercial Bank and subsidiaries regulatory capital ratios: Total risk-based capital 11.88 % 10.53 % Tier 1 risk-based capital 9.72 9.67 Tier 1 leverage ratio 8.59 9.30   UCBH Holdings, Inc. and subsidiaries regulatory capital ratios: Total risk-based capital 12.19 % 10.72 % Tier 1 risk-based capital 10.03 9.86 Tier 1 leverage ratio 8.86 9.50   (1) Includes net unamortized deferred loan fees, purchase premiums and discounts of $371,000 and $213,000 at September 30, 2007 and December 31, 2006, respectively. (2) Includes net unamortized deferred loan fees purchase premiums and discounts of $21.6 million and $25.8 million at September 30, 2007, and December 31, 2006, respectively.