##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2002
OR
[   ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission file number 0-24947

UCBH Holdings, Inc.

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(Exact name of registrant as specified in its charter)


|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Delaware                                                       |  | 94-3072450                          
|                                                               |  |                                     
|(State or other jurisdiction of incorporation
or organization) |  | (I.R.S. Employer
Identification No.)
|                                                              
|711 Van Ness Avenue, San Francisco, California                 |  | 94102                               
|                                                               |  |                                     
|(Address of principal executive offices)                       |  | (Zip Code)                          

(415) 928-0700

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(Registrants telephone number, including area code)




---

(Former name, former address and former fiscal year, if changed since last report)


Indicate by check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.

Yes [X] No [   ]

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuers classes of common stock,
as of the latest practicable date.

As of April 25, 2002, the Registrant had 19,596,302 shares of common stock outstanding.





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TABLE OF CONTENTS



|                               |                                                                                               |                                            |  |  |  |  |  | 
|------------------------------ | --------------------------------------------------------------------------------------------- | ------------------------------------------ |  |  |  |  |  | 
|PART I  FINANCIAL INFORMATION
|                               | ITEM 1. FINANCIAL STATEMENTS                                                                 
|                               |                                                                                               | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|                               | ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|                               | ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                           
|PART II  OTHER INFORMATION   
|                               | Item 1. Legal Proceedings                                                                    
|                               | Item 2. Changes in Securities and Use of Proceeds                                            
|                               | Item 3. Defaults Upon Senior Securities                                                      
|                               | Item 4. Submission of Matters to a Vote of Security Holders                                  
|                               | Item 5. Other Information                                                                    
|                               | Item 6. Exhibits and Reports on Form 8-K                                                     
|SIGNATURES                    



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##### Table of Contents



UCBH HOLDINGS, INC.
TABLE OF CONTENTS

|                                      |  |         |                                                                                               |  |      | 
|------------------------------------- |  | ------- | --------------------------------------------------------------------------------------------- |  | ---- | 
|PART I FINANCIAL
        INFORMATION |  |        
|                                      |  | Item 1. | Financial Statements                                                                          |  | 1-3 
|                                      |  |         | Notes to Consolidated
        Financial Statements                                            |  | 4-6 
|                                      |  | Item 2. | Managements
        Discussion and Analysis of Financial Condition and Results of Operations |  | 6-15
|                                      |  | Item 3. | Quantitative
        and Qualitative Disclosures About Market Risk                            |  | 15  
|                                      |  |        
|PART II OTHER
        INFORMATION    |  |        
|                                      |  | Item 1. | Legal Proceedings                                                                             |  | 16  
|                                      |  | Item 2. | Changes in Securities
        and Use of Proceeds                                             |  | 16  
|                                      |  | Item 3. | Defaults Upon
        Senior Securities                                                       |  | 16  
|                                      |  | Item 4. | Submission of
        Matters to a Vote of Security Holders                                   |  | 16  
|                                      |  | Item 5. | Other Information                                                                             |  | 16  
|                                      |  | Item 6. | Exhibits and
        Reports on Form 8-K                                                      |  | 16  
|                                      |  |        
|SIGNATURES                            |  | 17     





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##### Table of Contents






PART I  FINANCIAL INFORMATION




ITEM 1. FINANCIAL STATEMENTS

UCBH HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)

|                                                                                                                                                                                                      |                                            |   |              |           |                 |   |           |           | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | - | ------------ | --------- | --------------- | - | --------- | --------- | 
|                                                                                                                                                                                                      |                                            |   | At March 31, |           | At December 31,
|                                                                                                                                                                                                      |                                            |   | 2002         |           | 2001           
|                                                                                                                                                                                                      |                                            |   |              |           |                
|                                                                                                                                                                                                      |                                            |   | (unaudited)  |           |                 |   |          
|Assets                                                                                                                                                                                                |                                            |   |              |           |                 |   |           |          
|Cash and due from banks                                                                                                                                                                               |                                            | $ | 45,895       |           |                 | $ | 32,606    |          
|Federal funds sold                                                                                                                                                                                    |                                            |   | 8,000        |           |                 |   |          |          
|Investment and mortgage-backed securities available for
sale, at fair value                                                                                                                           |                                            |   | 609,451      |           |                 |   | 541,921   |          
|Investment and mortgage-backed securities, at cost (fair value $54,700
at March 31, 2002 and $50,695 at December 31, 2001)                                                                            |                                            |   | 55,734       |           |                 |   | 51,472    |          
|Federal Home Loan Bank Stock                                                                                                                                                                          |                                            |   | 23,388       |           |                 |   | 22,989    |          
|Loans                                                                                                                                                                                                 |                                            |   | 2,288,170    |           |                 |   | 2,264,303 |          
|Allowance for loan losses                                                                                                                                                                             |                                            |   | (35,147      | )         |                 |   | (34,550   | )        
|                                                                                                                                                                                                      |                                            |   |              |           |                 |   |           |          
|Net loans                                                                                                                                                                                             |                                            |   | 2,253,023    |           |                 |   | 2,229,753 |          
|                                                                                                                                                                                                      |                                            |   |              |           |                 |   |           |          
|Accrued interest receivable                                                                                                                                                                           |                                            |   | 16,331       |           |                 |   | 16,593    |          
|Premises and equipment, net                                                                                                                                                                           |                                            |   | 19,361       |           |                 |   | 19,669    |          
|Other assets                                                                                                                                                                                          |                                            |   | 24,581       |           |                 |   | 17,040    |          
|                                                                                                                                                                                                      |                                            |   |              |           |                 |   |           |          
|                                                                                                                                                                                                      | Total assets                               |   | $            | 3,055,764 |                 |   | $         | 2,932,043 | 
|                                                                                                                                                                                                      |                                            |   |              |           |                 |   |           |          
|Liabilities                                                                                                                                                                                           |                                            |   |              |           |                 |   |           |          
|Deposits                                                                                                                                                                                              |                                            | $ | 2,544,040    |           |                 | $ | 2,466,152 |          
|Borrowings                                                                                                                                                                                            |                                            |   | 258,000      |           |                 |   | 238,000   |          
|Guaranteed preferred beneficial interests in junior subordinated debentures                                                                                                                           |                                            |   | 46,000       |           |                 |   | 36,000    |          
|Accrued interest payable                                                                                                                                                                              |                                            |   | 5,028        |           |                 |   | 4,080     |          
|Other liabilities                                                                                                                                                                                     |                                            |   | 20,795       |           |                 |   | 13,687    |          
|                                                                                                                                                                                                      |                                            |   |              |           |                 |   |           |          
|                                                                                                                                                                                                      | Total liabilities                          |   |              | 2,873,863 |                 |   |           | 2,757,919 | 
|                                                                                                                                                                                                      |                                            |   |              |           |                 |   |           |          
|Commitments and contingencies                                                                                                                                                                         |                                            |   |             |           |                 |   |          |          
|Stockholders
Equity                                                                                                                                                                                  |                                            |   |              |           |                 |   |           |          
|Preferred stock, $.01 par value, authorized 10,000,000 shares, none issued and outstanding                                                                                                            |                                            |   |             |           |                 |   |          |          
|Common stock, $.01 par value, authorized 90,000,000 shares at March 31, 2002 and
at December 31, 2001, shares issued and outstanding 19,492,676 at March 31, 2002
and 19,359,282 at December 31, 2001 |                                            |   | 195          |           |                 |   | 194       |          
|Additional paid-in capital                                                                                                                                                                            |                                            |   | 68,868       |           |                 |   | 66,685    |          
|Accumulated other comprehensive loss                                                                                                                                                                  |                                            |   | (8,981       | )         |                 |   | (6,481    | )        
|Retained earnings-substantially restricted                                                                                                                                                            |                                            |   | 121,819      |           |                 |   | 113,726   |          
|                                                                                                                                                                                                      |                                            |   |              |           |                 |   |           |          
|                                                                                                                                                                                                      | Total stockholders equity                 |   |              | 181,901   |                 |   |           | 174,124   | 
|                                                                                                                                                                                                      |                                            |   |              |           |                 |   |           |          
|                                                                                                                                                                                                      | Total liabilities and stockholders equity |   | $            | 3,055,764 |                 |   | $         | 2,932,043 | 
|                                                                                                                                                                                                      |                                            |   |              |           |                 |   |           |          

The accompanying notes are an integral part of these financial statements.

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##### Table of Contents



UCBH HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited: Dollars in Thousands, Except for Per Share Data)

|                             |                                                                             |                                                     |                           |        |                            |        |        |        |        |        | 
|---------------------------- | --------------------------------------------------------------------------- | --------------------------------------------------- | ------------------------- | ------ | -------------------------- | ------ | ------ | ------ | ------ | ------ | 
|                             |                                                                             |                                                     |                           |        | For the Three Months Ended
|                             |                                                                             |                                                     |                           |        | March 31,                 
|                             |                                                                             |                                                     |                           |        |                           
|                             |                                                                             |                                                     |                           |        | 2002                       |        | 2001  
|                             |                                                                             |                                                     |                           |        |                            |        |       
|Interest income:             |                                                                             |                                                     |                           |        |                            |        |        |       
|                             | Loans                                                                       |                                                     | $                         | 38,005 |                            |        | $      | 42,006 |       
|                             | Funds sold and securities purchased under agreements to resell              |                                                     |                           | 25     |                            |        |        | 152    |       
|                             | Investment and mortgage-backed securities                                   |                                                     |                           | 9,352  |                            |        |        | 8,771  |       
|                             |                                                                             |                                                     |                           |        |                            |        |        |       
|                             |                                                                             | Total interest income                               |                           |        | 47,382                     |        |        |        | 50,929 |       
|                             |                                                                             |                                                     |                           |        |                            |        |        |       
|Interest expense:            |                                                                             |                                                     |                           |        |                            |        |        |       
|                             | Deposits                                                                    |                                                     |                           | 15,401 |                            |        |        | 23,761 |       
|                             | Short-term borrowings                                                       |                                                     |                           | 98     |                            |        |        | 423    |       
|                             | Guaranteed preferred beneficial interests in junior subordinated debentures |                                                     |                           | 802    |                            |        |        | 703    |       
|                             | Long-term borrowings                                                        |                                                     |                           | 3,309  |                            |        |        | 3,245  |       
|                             |                                                                             |                                                     |                           |        |                            |        |        |       
|                             |                                                                             | Total interest expense                              |                           |        | 19,610                     |        |        |        | 28,132 |       
|                             |                                                                             |                                                     |                           |        |                            |        |        |       
|                             |                                                                             | Net interest income                                 |                           |        | 27,772                     |        |        |        | 22,797 |       
|Provision for loan losses    |                                                                             |                                                     | 887                       |        |                            |        | 753    |       
|                             |                                                                             |                                                     |                           |        |                            |        |        |       
|                             |                                                                             | Net interest income after provision for loan losses |                           |        | 26,885                     |        |        |        | 22,044 |       
|                             |                                                                             |                                                     |                           |        |                            |        |        |       
|Noninterest income:          |                                                                             |                                                     |                           |        |                            |        |        |       
|                             | Commercial banking fees                                                     |                                                     |                           | 997    |                            |        |        | 774    |       
|                             | Service charges on deposits                                                 |                                                     |                           | 371    |                            |        |        | 250    |       
|                             | Gain on sale of loans, securities and servicing rights                      |                                                     |                           | 451    |                            |        |        | 238    |       
|                             | Miscellaneous income                                                        |                                                     |                           | 100    |                            |        |        | 4      |       
|                             |                                                                             |                                                     |                           |        |                            |        |        |       
|                             |                                                                             | Total noninterest income                            |                           |        | 1,919                      |        |        |        | 1,266  |       
|                             |                                                                             |                                                     |                           |        |                            |        |        |       
|Noninterest expense:         |                                                                             |                                                     |                           |        |                            |        |        |       
|                             | Personnel                                                                   |                                                     |                           | 7,564  |                            |        |        | 6,389  |       
|                             | Occupancy                                                                   |                                                     |                           | 1,338  |                            |        |        | 1,267  |       
|                             | Data processing                                                             |                                                     |                           | 776    |                            |        |        | 702    |       
|                             | Furniture and equipment                                                     |                                                     |                           | 637    |                            |        |        | 636    |       
|                             | Professional fees and contracted services                                   |                                                     |                           | 1,229  |                            |        |        | 781    |       
|                             | Deposit insurance                                                           |                                                     |                           | 107    |                            |        |        | 92     |       
|                             | Communication                                                               |                                                     |                           | 154    |                            |        |        | 140    |       
|                             | Miscellaneous expense                                                       |                                                     |                           | 1,938  |                            |        |        | 1,744  |       
|                             |                                                                             |                                                     |                           |        |                            |        |        |       
|                             |                                                                             |                                                     | Total noninterest expense |        |                            | 13,743 |        |        |        | 11,751 | 
|                             |                                                                             |                                                     |                           |        |                            |        |        |       
|Income before taxes          |                                                                             |                                                     | 15,061                    |        |                            |        | 11,559 |       
|Income tax expense           |                                                                             |                                                     | 5,993                     |        |                            |        | 4,531  |       
|                             |                                                                             |                                                     |                           |        |                            |        |        |       
|                             |                                                                             | Net income                                          |                           | $      | 9,068                      |        |        | $      | 7,028  |       
|                             |                                                                             |                                                     |                           |        |                            |        |        |       
|Basic earnings per share     |                                                                             | $                                                   | 0.47                      |        |                            | $      | 0.37   |       
|                             |                                                                             |                                                     |                           |        |                            |        |        |       
|Diluted earnings per share   |                                                                             | $                                                   | 0.45                      |        |                            | $      | 0.36   |       
|                             |                                                                             |                                                     |                           |        |                            |        |        |       
|Dividends declared per share |                                                                             | $                                                   | 0.05                      |        |                            | $      | 0.04   |       
|                             |                                                                             |                                                     |                           |        |                            |        |        |       

The accompanying notes are an integral part of these financial statements.

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##### Table of Contents



UCBH HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited: Dollars in Thousands)

|                                                                     |                                                                                                       |                                           |                                                            |                                           |         |                            |        |         |         |         |        | 
|-------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------- | ----------------------------------------- | ---------------------------------------------------------- | ----------------------------------------- | ------- | -------------------------- | ------ | ------- | ------- | ------- | ------ | 
|                                                                     |                                                                                                       |                                           |                                                            |                                           |         | For the Three Months Ended
|                                                                     |                                                                                                       |                                           |                                                            |                                           |         | March 31,                 
|                                                                     |                                                                                                       |                                           |                                                            |                                           |         |                           
|                                                                     |                                                                                                       |                                           |                                                            |                                           |         | 2002                       |        | 2001   
|                                                                     |                                                                                                       |                                           |                                                            |                                           |         |                            |        |        
|Operating activities:                                                |                                                                                                       |                                           |                                                            |                                           |         |                            |        |        
|                                                                     | Net income                                                                                            |                                           | $                                                          | 9,068                                     |         |                            | $      | 7,028   |        
|                                                                     | Adjustments to reconcile net income to net cash provided by (used for)
operating activities:          |                                           |                                                            |                                           |         |                            |        |         |        
|                                                                     |                                                                                                       |                                           | Provision for loan losses                                  |                                           |         | 887                        |        |         |         | 753     |       
|                                                                     |                                                                                                       |                                           | Decrease (increase) in accrued interest receivable         |                                           |         | 262                        |        |         |         | (144    | )     
|                                                                     |                                                                                                       |                                           | Depreciation and amortization of premises and equipment    |                                           |         | 637                        |        |         |         | 650     |       
|                                                                     |                                                                                                       |                                           | (Increase) decrease in other assets                        |                                           |         | (5,837                     | )      |         |         | 2,536   |       
|                                                                     |                                                                                                       |                                           | Increase (decrease) in other liabilities                   |                                           |         | 8,031                      |        |         |         | (838    | )     
|                                                                     |                                                                                                       |                                           | Increase in accrued interest payable                       |                                           |         | 948                        |        |         |         | 168     |       
|                                                                     |                                                                                                       |                                           | Gain on sale of loans, securities and other assets         |                                           |         | (451                       | )      |         |         | (238    | )     
|                                                                     |                                                                                                       |                                           | Other, net                                                 |                                           |         | 432                        |        |         |         | 401     |       
|                                                                     |                                                                                                       |                                           |                                                            |                                           |         |                            |        |        
|                                                                     |                                                                                                       |                                           |                                                            | Net cash provided by operating activities |         |                            | 13,977 |         |         |         | 10,316 | 
|                                                                     |                                                                                                       |                                           |                                                            |                                           |         |                            |        |        
|Investing activities:                                                |                                                                                                       |                                           |                                                            |                                           |         |                            |        |        
|                                                                     | Investments and mortgage-backed securities, available for sale:                                       |                                           |                                                            |                                           |         |                            |        |         |        
|                                                                     |                                                                                                       |                                           | Principal payments and maturities                          |                                           |         | 49,727                     |        |         |         | 18,667  |       
|                                                                     |                                                                                                       |                                           | Purchases                                                  |                                           |         | (127,988                   | )      |         |         | (38,050 | )     
|                                                                     |                                                                                                       |                                           | Sales                                                      |                                           |         | 57,049                     |        |         |         | 505     |       
|                                                                     |                                                                                                       |                                           | Called                                                     |                                           |         | 13,334                     |        |         |         |        |       
|                                                                     | Investments and mortgage-backed securities, held to maturity:                                         |                                           |                                                            |                                           |         |                            |        |         |        
|                                                                     |                                                                                                       |                                           | Principal payments and maturities                          |                                           |         | 68                         |        |         |         | 6       |       
|                                                                     |                                                                                                       |                                           | Purchases                                                  |                                           |         | (4,438                     | )      |         |         | (250    | )     
|                                                                     | Loans originated and purchased, net of principal collections                                          |                                           |                                                            | (102,457                                  | )       |                            |        | (57,376 | )      
|                                                                     | Proceeds from the sale of loans                                                                       |                                           |                                                            | 14,066                                    |         |                            |        | 3,870   |        
|                                                                     | Purchases of premises and other equipment                                                             |                                           |                                                            | (223                                      | )       |                            |        | (493    | )      
|                                                                     |                                                                                                       |                                           |                                                            |                                           |         |                            |        |        
|                                                                     |                                                                                                       |                                           | Net cash used in investing activities                      |                                           |         | (100,862                   | )      |         |         | (73,121 | )     
|                                                                     |                                                                                                       |                                           |                                                            |                                           |         |                            |        |        
|Financing activities:                                                |                                                                                                       |                                           |                                                            |                                           |         |                            |        |        
|                                                                     | Net increase in demand deposits, NOW, money market and savings accounts                               |                                           |                                                            | 88,240                                    |         |                            |        | 58,728  |        
|                                                                     | Net (decrease) increase in time deposits                                                              |                                           |                                                            | (10,352                                   | )       |                            |        | 64,265  |        
|                                                                     | Net increase (decrease) in borrowings                                                                 |                                           |                                                            | 20,000                                    |         |                            |        | (2,558  | )      
|                                                                     | Proceeds from issuance of common stock                                                                |                                           |                                                            | 1,060                                     |         |                            |        | 725     |        
|                                                                     | Payment of cash dividend on common stock                                                              |                                           |                                                            | (774                                      | )       |                            |        | (469    | )      
|                                                                     | Proceeds from issuance of guaranteed preferred beneficial interests in
junior subordinated debentures |                                           |                                                            | 10,000                                    |         |                            |        |        |        
|                                                                     |                                                                                                       |                                           |                                                            |                                           |         |                            |        |        
|                                                                     |                                                                                                       | Net cash provided by financing activities |                                                            |                                           | 108,174 |                            |        |         | 120,691 |        
|                                                                     |                                                                                                       |                                           |                                                            |                                           |         |                            |        |        
|Net increase in cash and cash equivalents                            |                                                                                                       |                                           | 21,289                                                     |                                           |         |                            | 57,886 |        
|Cash and cash equivalents at beginning of period                     |                                                                                                       |                                           | 32,606                                                     |                                           |         |                            | 38,213 |        
|                                                                     |                                                                                                       |                                           |                                                            |                                           |         |                            |        |        
|Cash and cash equivalents at end of period                           |                                                                                                       | $                                         | 53,895                                                     |                                           |         | $                          | 96,099 |        
|                                                                     |                                                                                                       |                                           |                                                            |                                           |         |                            |        |        
|Supplemental disclosure of cash flow information:                    |                                                                                                       |                                           |                                                            |                                           |         |                            |        |        
|                                                                     |                                                                                                       |                                           | Cash paid during the period for interest                   |                                           | $       | 18,662                     |        |         | $       | 27,964  |       
|                                                                     |                                                                                                       |                                           | Cash paid during the period for income taxes               |                                           |         | 2,580                      |        |         |         | 1,305   |       
|Supplemental schedule of noncash investing and financing activities: |                                                                                                       |                                           |                                                            |                                           |         |                            |        |        
|                                                                     |                                                                                                       |                                           | Loans transferred to foreclosed property                   |                                           | $       |                           |        |         | $       |        |       
|                                                                     |                                                                                                       |                                           | Securities transferred to available for sale securities(1) |                                           |         |                           |        |         |         | 116,387 |       
|                                                                     |                                                                                                       |                                           | Loans securitized                                          |                                           |         | 64,317                     |        |         |         |        |       



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|(1) |  | Such securities were transferred from held to maturity securities when SFAS No. 133 was adopted in 2001.
|--- |  | --------------------------------------------------------------------------------------------------------

The accompanying notes are an integral part of these financial statements.

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##### Table of Contents






UCBH HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Presentation and Summary of Significant Accounting and Reporting Policies

Basis of Presentation

The Consolidated Balance Sheet as of March 31, 2002, the Consolidated
Statements of Income for the three months ended March 31, 2002 and 2001, and
the Consolidated Statements of Cash Flows for the three months ended March 31,
2002 and 2001 have been prepared by UCBH Holdings, Inc. (the Company) and are
not audited.

The unaudited financial statement information presented was prepared on
the same basis as the audited financial statements for the year ended December
31, 2001. In the opinion of management such unaudited financial statements
reflect all adjustments necessary for a fair statement of the results of
operations and balances for the interim periods presented. Such adjustments
are of a normal recurring nature. The results of operations for the three
months ended March 31, 2002 are not necessarily indicative of the results to be
expected for the full year.

Principles of Consolidation and Presentation

The consolidated financial statements include the accounts of the Company
and its wholly-owned subsidiaries. All significant intercompany balances and
transactions have been eliminated in consolidation.

Impact of Recently Issued Accounting Standards

In June 2001, the
Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 141, Business Combinations,
and SFAS No. 142, Goodwill and Other Intangible Assets. SFAS No. 141
requires that all business combinations initiated after June 30, 2001 be
accounted for by a single method  the purchase method. SFAS
No. 141 also
specifies the criteria required for intangible assets be recognized and
reported apart from goodwill. SFAS No. 142 requires that goodwill and
intangible assets with indefinite useful lives no longer be amortized, but
instead tested for impairment at least annually. SFAS No. 142 also requires
that intangible assets with definite useful lives be amortized over their
respective estimated useful lives to their estimated residual values, and
reviewed for impairment in accordance with SFAS No. 121, Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed
Of.

The Company is
required to adopt the provisions of SFAS No. 141
immediately and SFAS No. 142 effective January 1, 2002. The Company does not
have any goodwill or intangible assets acquired in business combinations
completed before July 1, 2001. The Company does not expect adoption of
SFAS No. 141 and 142 to have a material impact on the financial condition
or operating results of the Company.

In June 2001, the FASB issued SFAS No. 143, Accounting for Asset
Retirement Obligations. This Statement addresses financial accounting and
reporting for obligations associated with the retirement of tangible long-lived
assets and the associated asset retirement costs. This Statement requires that
the fair value of a liability for an asset retirement obligation be recognized
in the period in which it is incurred if a reasonable estimate of fair value
can be made. The associated asset retirement costs are capitalized as part of
the carrying amount of the long-lived asset.

This Statement is effective for financial statements issued for fiscal
years beginning after June 15, 2002. The Company does not expect adoption of
SFAS No. 143 to have a material impact on the financial condition or
operating results of the Company.

In August 2001, the FASB issued SFAS No. 144, Accounting for the
Impairment or Disposal of Long-Lived Assets. SFAS No. 144
establishes a single accounting model for the impairment or disposal
of long-lived assets, including discontinued operations.
SFAS No. 144 superseded SFAS No. 121, Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be
Disposed Of, and APB Opinion No. 30, Reporting the Results
of Operations  Reporting the Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring Events and Transactions. The provisions
of SFAS No. 144 are effective in fiscal years beginning after
December 15, 2001, with early adoption permitted, and in general are to be applied prospectively.

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This Statement is effective for financial statements issued for fiscal
years beginning after December 15, 2001. The Company does not expect adoption
of SFAS No. 144 to have a material impact on the financial condition or
operating results of the Company.

2. Earnings Per Share

The following is a reconciliation of the numerators and denominators of
the basic and diluted earnings per share:

|         |                                   |  |                                                  |       |                                   |  |           |            |             |  |               |      |           |  |   |       |  |  |  |            |  |  |   |      | 
|-------- | --------------------------------- |  | ------------------------------------------------ | ----- | --------------------------------- |  | --------- | ---------- | ----------- |  | ------------- | ---- | --------- |  | - | ----- |  |  |  | ---------- |  |  | - | ---- | 
|         |                                   |  | Three Months Ended March 31, 2002                |       | Three Months Ended March 31, 2001
|         |                                   |  |                                                  |       |                                  
|         |                                   |  | Income                                           |       | Shares                            |  | Per Share |            | Income      |  | Shares(1)     |      | Per Share
|         |                                   |  | (Numerator)                                      |       | (Denominator)                     |  | Amount    |            | (Numerator) |  | (Denominator) |      | Amount   
|         |                                   |  |                                                  |       |                                   |  |           |            |             |  |               |      |          
|         |                                   |  | (Dollars in Thousands, Except Per Share Amounts)
|Basic:   |                                   |  |                                                  |       |                                   |  |           |            |             |  |               |      |           |  |   |       |  |  |  |            |  |  |   |     
|         | Net income                        |  | $                                                | 9,068 |                                   |  |           | 19,449,056 |             |  | $             | 0.47 |           |  | $ | 7,028 |  |  |  | 18,807,088 |  |  | $ | 0.37 | 
|         | Dilutive potential common shares  |  |                                                  |      |                                   |  |           | 861,343    |             |  |               |      |           |  |   |      |  |  |  | 931,368    |  |  |   |      | 
|         |                                   |  |                                                  |       |                                   |  |           |            |             |  |               |      |           |  |   |       |  |  |  |            |  |  |   |     
|Diluted: |                                   |  |                                                  |       |                                   |  |           |            |             |  |               |      |           |  |   |       |  |  |  |            |  |  |   |     
|         | Net income and assumed conversion |  | $                                                | 9,068 |                                   |  |           | 20,310,399 |             |  | $             | 0.45 |           |  | $ | 7,028 |  |  |  | 19,738,456 |  |  | $ | 0.36 | 
|         |                                   |  |                                                  |       |                                   |  |           |            |             |  |               |      |           |  |   |       |  |  |  |            |  |  |   |     



---

|(1) |  | Effective April 11, 2001, the Company completed a two-for-one stock split. Accordingly, the financial statements for the three months ended
March 31, 2001 period presented have been restated to reflect the effect of the stock split.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3. Comprehensive Income

SFAS No. 130, Reporting Comprehensive Income, establishes presentation
and disclosure requirements for comprehensive income; however, it does not
affect existing recognition or measurement standards. For the Company,
comprehensive income consists of net income and the change in unrealized gains
and losses on available-for-sale securities. For the three months ended March
31, 2002, total comprehensive income was $6.6 million, a decrease of $3.5
million, compared to the three months ended March 31, 2001. Net income for the
three months ended March 31, 2002 was $9.1 million and unrealized losses on
available-for-sale securities increased by $2.5 million. For the corresponding
period of 2001, net income was $7.0 million and unrealized losses on
available-for-sale securities decreased by $3.0 million.

4. Segment Information

The Company has determined that its reportable segments are those that are
based on the Companys method of internal reporting, which disaggregates its
business into two reportable segments: Commercial Banking and Consumer Banking.
These segments principally serve California businesses and consumers.
Historically, our customer base has been primarily the ethnic Chinese
communities located mainly in the San Francisco Bay area, Sacramento/Stockton
and metropolitan Los Angeles.

The financial results of the Companys operating segments are presented on
an accrual basis. There are no significant differences between the accounting
policies of the segments as compared to the Companys consolidated financial
statements. The Company evaluates the performance of its segments and
allocates resources to them based on interest income, interest expense and net
interest income. There are no material intersegment revenues.

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The table below presents information about the Companys operating
segments for the three months ended March 31, 2002 and 2001:

|                           |                                                        |  |                        |           |          |  |       |           |  |  |   |           | 
|-------------------------- | ------------------------------------------------------ |  | ---------------------- | --------- | -------- |  | ----- | --------- |  |  | - | --------- | 
|                           |                                                        |  | Commercial             |           | Consumer |  | Total
|                           |                                                        |  |                        |           |          |  |      
|                           |                                                        |  | (Dollars in Thousands)
|For the Three Months Ended |                                                        |  |                        |           |          |  |       |           |  |  |   |          
|March 31, 2002:            |                                                        |  |                        |           |          |  |       |           |  |  |   |          
|                           | Net interest income (before
provision for loan losses) |  | $                      | 17,216    |          |  | $     | 10,556    |  |  | $ | 27,772    | 
|                           | Segment net income                                     |  |                        | 7,013     |          |  |       | 2,055     |  |  |   | 9,068     | 
|                           | Segment total assets                                   |  |                        | 1,906,175 |          |  |       | 1,149,589 |  |  |   | 3,055,764 | 
|March 31, 2001:            |                                                        |  |                        |           |          |  |       |           |  |  |   |          
|                           | Net interest income (before
provision for loan losses) |  | $                      | 12,216    |          |  | $     | 10,581    |  |  | $ | 22,797    | 
|                           | Segment net income                                     |  |                        | 4,896     |          |  |       | 2,132     |  |  |   | 7,028     | 
|                           | Segment total assets                                   |  |                        | 1,408,840 |          |  |       | 1,223,335 |  |  |   | 2,632,175 | 




ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Form 10-Q may include certain forward-looking statements based on
current management expectations. The Companys actual results could differ
materially from those management expectations. Factors that could cause future
results to vary from current management expectations include, but are not
limited to, general economic conditions, legislative and regulatory changes,
monetary and fiscal policies of the federal government, changes in tax
policies, rates and regulations of federal, state and local tax authorities,
changes in interest rates, deposit flows, the cost of funds, demand for loan
products, demand for financial services, competition, changes in the quality or
composition of the Companys wholly-owned subsidiary, United Commercial Banks
(the Bank) loan and investment portfolios, changes in accounting principles,
policies or guidelines, and other economic, competitive, governmental and
technological factors affecting the Companys or Banks operations, markets,
products, services and prices. Further description of the risks and
uncertainties to the business are included in detail in the Companys Annual
Report on Form 10-K for the year ended December 31, 2001 as filed with the
Securities and Exchange Commission.

The following discussion and analysis is intended to provide details of
the results of operations of the Company for the three months ended March 31,
2002 and 2001 and financial condition at March 31, 2002 and at December 31,
2001. The following discussion should be read in conjunction with the
information set forth in the Companys Consolidated Financial Statements and
notes thereto and other financial data included.

RESULTS OF OPERATIONS

General. The Companys primary source of income is net interest income,
which is the difference between interest income from interest-earning assets
and interest paid on interest-bearing liabilities, such as deposits and other
borrowings used to fund those assets. The Companys net interest income is
affected by changes in the volume of interest-earning assets and
interest-bearing liabilities as well as by changes in yields earned on
interest-earning assets and rates paid on interest-bearing deposits and other
borrowed funds. The Company also generates noninterest income, including
commercial banking fees, gain on sale of SBA loans, and other transactional
fees and seeks to generate additional fees in connection with the shift in its
business focus to commercial banking. The Companys noninterest expenses
consist primarily of personnel, occupancy, professional fees, and other
operating expenses. The Companys results of operations are affected by its
provision for loan losses and may also be significantly affected by other
factors including general economic and competitive conditions, changes in
market interest rates, governmental policies and actions of regulatory
agencies.

Net Income. The consolidated net income of the Company during the three
months ended March 31, 2002 increased by $2.0 million, or 29.0%, to $9.1
million, compared to $7.0 million for the corresponding period of the preceding
year. The increase resulted primarily from an increase in net interest income.
The annualized return on average equity (ROE) and average assets (ROA)
ratios for the three months ended March 31, 2002 were 20.13% and 1.22%,
respectively. This compares with annualized ROE and ROA ratios of 20.19% and
1.11%, respectively,

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for the three months ended March 31, 2001. The decrease
in ROE results from increases in market valuations of our available for sale
securities, which is recognized, net of tax, as other accumulated comprehensive
loss in stockholders equity. The resulting efficiency ratios were 46.29% for
the three months ended March 31, 2002 compared with 48.83% for the
corresponding period of the preceding year. Diluted earnings per common share
were $0.45 for the three months ended March 31, 2002 compared with $0.36 for
the comparable period of the preceding year.

Net Interest Income. Net interest income before provision for loan losses
of $27.8 million for the three months ended March 31, 2002 represented a $5.0
million, or 21.8%, increase over net interest income of $22.8 million for the
three months ended March 31, 2001. This increase was primarily due to the
increase in commercial loans and growth in core deposits. The yield on
interest-earning assets decreased to 6.45% for the three months ended March 31,
2002 from 8.19% for the corresponding period of 2001, primarily due to the
decrease in the prime rate for which our commercial loans are based. The
average cost of deposits decreased to 2.48% for the three months ended March
31, 2002 from 4.57% for the three months ended March 31, 2001, primarily due to
growth in core deposits and reductions in market interest rates. Interest on
earning assets decreased $3.5 million to $47.4 million for the three months
ended March 31, 2002, from $50.9 million for the three months ended March 31,
2001. This decrease resulted primarily from decreases in the prime rate on
which our commercial loan interest rates are based, partially offset by a
$451.6 million increase in interest-earning assets. This compares with a
decrease of $8.5 million in interest expense, to $19.6 million for the three
months ended March 31, 2002 from $28.1 million for the three months ended March
31, 2001. This decrease is primarily a result of reductions in market interest
rates on interest-bearing deposits, partially offset by a $368.3 million
increase in interest-bearing deposits.

Average outstanding loans increased to $2.27 billion for the three months
ended March 31, 2002 from $1.96 billion for the corresponding period of 2001,
an increase of $309.7 million, or 15.8%, as a result of the Banks continued
focus on commercial lending activities. Average commercial loans increased
$477.0 million to $1.86 billion for the three months ended March 31, 2002, from
$1.38 billion for the three months ended March 31, 2001 while average consumer
loans decreased $167.3 million to $412.7 million for the three months ended
March 31, 2002, from $580.0 million for the three months ended March 31, 2001,
due to the Companys emphasis on the origination of commercial loans and due to
the internal securitization of loans discussed below. Average securities
increased to $663.0 million for the three months ended March 31, 2002 from
$515.2 million for the same period of 2001, an increase of $147.8 million, or
28.7%, primarily due to the internal securitization of $109.6 million of
residential mortgage (one to four family) loans during 2001 and purchases net
of repayments. Average interest-bearing deposits increased to $2.35 billion
for the three months ended March 31, 2002 from $1.99 billion in the
corresponding period of the prior year. Average noninterest-bearing deposits
increased to $131.1 million for the three months ended March 31, 2002 from
$94.0 million for the corresponding period of the prior year, representing an
increase of $37.1 million, or 39.5%, as a result of the Companys ongoing
focus on the generation of commercial and consumer demand deposit accounts.

Net Interest Margin. The net interest margin, calculated on a tax
equivalent basis, was 3.82% for the three months ended March 31, 2002, up from
3.71% for the corresponding period of 2001. The increase in the net interest
margin resulted primarily from a change in the mix of interest-earning assets
due to continued growth in our commercial loan portfolio, a reduction in our
consumer loan portfolio, and the significant increase in core deposits.

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---



##### Table of Contents



The following table presents condensed average balance sheet information
for the Company, together with interest rates earned and paid on the various
sources and uses of funds for each of the periods indicated:

|                                                                 |                                                                             |                                          |       |                        |      |                            |           |                            |           |            |        |          |        |         |      |            |      |         |           |           |           |          |        |        |        |  |      |      |      | 
|---------------------------------------------------------------- | --------------------------------------------------------------------------- | ---------------------------------------- | ----- | ---------------------- | ---- | -------------------------- | --------- | -------------------------- | --------- | ---------- | ------ | -------- | ------ | ------- | ---- | ---------- | ---- | ------- | --------- | --------- | --------- | -------- | ------ | ------ | ------ |  | ---- | ---- | ---- | 
|                                                                 |                                                                             |                                          |       | At                     |      |                            |           |                            |           |            |        |          |        |         |      |            |      |         |           |           |           |          |        |        |        |  |      |     
|                                                                 |                                                                             |                                          |       | March 31,              |      | For the Three Months Ended |           | For the Three Months Ended
|                                                                 |                                                                             |                                          |       | 2002                   |      | March 31, 2002             |           | March 31, 2001            
|                                                                 |                                                                             |                                          |       |                        |      |                            |           |                           
|                                                                 |                                                                             |                                          |       | (Dollars in Thousands)
|                                                                 |                                                                             |                                          |       |                        |      |                            |           |                            |           |            |        | Interest |        |         |      |            |      |         |           |           |           | Interest |        |        |        | 
|                                                                 |                                                                             |                                          |       |                        |      |                            |           | Average                    |           | Income or  |        | Average  |        | Average |      | Income or  |      | Average
|                                                                 |                                                                             |                                          |       | Yield/Cost             |      | Balance                    |           | Expense                    |           | Yield/Cost |        | Balance  |        | Expense |      | Yield/Cost
|                                                                 |                                                                             |                                          |       |                        |      |                            |           |                            |           |            |        |          |        |         |      |           
|Interest-earning assets:                                         |                                                                             |                                          |       |                        |      |                            |           |                            |           |            |        |          |        |         |      |            |      |         |           |           |           |          |        |        |        |  |      |     
|                                                                 | Loans(1)                                                                    |                                          |       | 6.51                   | %    |                            | $         | 2,269,830                  |           |            | $      | 38,005   |        |         |      | 6.70       | %    |         | $         | 1,960,111 |           |          | $      | 42,006 |        |  |      | 8.57 | %   
|                                                                 | Securities                                                                  |                                          |       | 5.85                   |      |                            |           | 662,944                    |           |            |        | 9,352    |        |         |      | 5.64       |      |         |           | 515,166   |           |          |        | 8,771  |        |  |      | 6.81 |     
|                                                                 | Other                                                                       |                                          |       | 1.50                   |      |                            |           | 6,354                      |           |            |        | 25       |        |         |      | 1.57       |      |         |           | 12,298    |           |          |        | 152    |        |  |      | 4.93 |     
|                                                                 |                                                                             |                                          |       |                        |      |                            |           |                            |           |            |        |          |        |         |      |            |      |         |           |           |           |          |        |        |        |  |      |     
|Total interest-earning assets                                    |                                                                             |                                          | 6.34  |                        |      |                            | 2,939,128 |                            |           |            | 47,382 |          |        |         | 6.45 |            |      |         | 2,487,575 |           |           |          | 50,929 |        |        |  | 8.19 |     
|Noninterest-earning assets                                       |                                                                             |                                          |      |                        |      |                            | 42,085    |                            |           |            |       |          |        |         |     |            |      |         | 38,164    |           |           |          |       |        |        |  |     |     
|                                                                 |                                                                             |                                          |       |                        |      |                            |           |                            |           |            |        |          |        |         |      |            |      |         |           |           |           |          |        |        |        |  |      |     
|Total assets                                                     |                                                                             |                                          | 6.19  |                        |      | $                          | 2,981,214 |                            |           | $          | 47,382 |          |        |         | 6.36 |            |      | $       | 2,525,739 |           |           | $        | 50,929 |        |        |  | 8.07 |     
|                                                                 |                                                                             |                                          |       |                        |      |                            |           |                            |           |            |        |          |        |         |      |            |      |         |           |           |           |          |        |        |        |  |      |     
|Interest-bearing liabilities:                                    |                                                                             |                                          |       |                        |      |                            |           |                            |           |            |        |          |        |         |      |            |      |         |           |           |           |          |        |        |        |  |      |     
|                                                                 | Deposits:                                                                   |                                          |       |                        |      |                            |           |                            |           |            |        |          |        |         |      |            |      |         |           |           |           |          |        |        |        |  |      |      |     
|                                                                 |                                                                             | NOW, checking, and money market accounts |       |                        | 1.54 |                            |           | $                          | 328,674   |            |        | $        | 1,341  |         |      |            | 1.63 |         |           | $         | 187,899   |          |        | $      | 1,112  |  |      |      | 2.37 | 
|                                                                 |                                                                             | Savings accounts                         |       |                        | 1.27 |                            |           |                            | 467,048   |            |        |          | 1,571  |         |      |            | 1.35 |         |           |           | 355,295   |          |        |        | 2,111  |  |      |      | 2.38 | 
|                                                                 |                                                                             | Time deposits                            |       |                        | 3.01 |                            |           |                            | 1,558,366 |            |        |          | 12,489 |         |      |            | 3.21 |         |           |           | 1,442,636 |          |        |        | 20,538 |  |      |      | 5.69 | 
|                                                                 |                                                                             |                                          |       |                        |      |                            |           |                            |           |            |        |          |        |         |      |            |      |         |           |           |           |          |        |        |        |  |      |     
|                                                                 | Total deposits                                                              |                                          |       | 2.45                   |      |                            |           | 2,354,088                  |           |            |        | 15,401   |        |         |      | 2.62       |      |         |           | 1,985,830 |           |          |        | 23,761 |        |  |      | 4.79 |     
|                                                                 | Borrowings                                                                  |                                          |       | 5.34                   |      |                            |           | 255,737                    |           |            |        | 3,407    |        |         |      | 5.33       |      |         |           | 263,713   |           |          |        | 3,668  |        |  |      | 5.56 |     
|                                                                 | Guaranteed preferred beneficial interests in
junior subordinated debentures |                                          |       | 8.11                   |      |                            |           | 36,667                     |           |            |        | 802      |        |         |      | 8.75       |      |         |           | 30,000    |           |          |        | 703    |        |  |      | 9.38 |     
|                                                                 |                                                                             |                                          |       |                        |      |                            |           |                            |           |            |        |          |        |         |      |            |      |         |           |           |           |          |        |        |        |  |      |     
|Total interest-bearing liabilities                               |                                                                             |                                          | 2.82  |                        |      |                            | 2,646,492 |                            |           |            | 19,610 |          |        |         | 2.96 |            |      |         | 2,279,543 |           |           |          | 28,132 |        |        |  | 4.94 |     
|                                                                 |                                                                             |                                          |       |                        |      |                            |           |                            |           |            |        |          |        |         |      |            |      |         |           |           |           |          |        |        |        |  |      |     
|Noninterest-bearing deposits                                     |                                                                             |                                          |       |                        |      |                            | 131,102   |                            |           |            |        |          |        |         |      |            |      |         | 94,005    |           |           |          |        |        |        |  |      |     
|Other noninterest-bearing liabilities                            |                                                                             |                                          |       |                        |      |                            | 23,409    |                            |           |            |        |          |        |         |      |            |      |         | 12,976    |           |           |          |        |        |        |  |      |     
|Stockholders equity                                             |                                                                             |                                          |       |                        |      |                            | 180,212   |                            |           |            |        |          |        |         |      |            |      |         | 139,215   |           |           |          |        |        |        |  |      |     
|                                                                 |                                                                             |                                          |       |                        |      |                            |           |                            |           |            |        |          |        |         |      |            |      |         |           |           |           |          |        |        |        |  |      |     
|Total liabilities and stockholders equity                       |                                                                             |                                          |       |                        |      | $                          | 2,981,214 |                            |           |            |        |          |        |         |      |            |      | $       | 2,525,739 |           |           |          |        |        |        |  |      |     
|                                                                 |                                                                             |                                          |       |                        |      |                            |           |                            |           |            |        |          |        |         |      |            |      |         |           |           |           |          |        |        |        |  |      |     
|Net interest income/net interest rate spread(2)                  |                                                                             |                                          | 3.52  | %                      |      |                            |           |                            |           | $          | 27,772 |          |        |         | 3.49 | %          |      |         |           |           |           | $        | 22,797 |        |        |  | 3.25 | %   
|                                                                 |                                                                             |                                          |       |                        |      |                            |           |                            |           |            |        |          |        |         |      |            |      |         |           |           |           |          |        |        |        |  |      |     
|Net interest-earning assets/net interest margin(3)               |                                                                             |                                          | 3.78  | %                      |      | $                          | 292,636   |                            |           |            |        |          |        |         | 3.78 | %          |      | $       | 208,033   |           |           |          |        |        |        |  | 3.67 | %   
|                                                                 |                                                                             |                                          |       |                        |      |                            |           |                            |           |            |        |          |        |         |      |            |      |         |           |           |           |          |        |        |        |  |      |     
|Ratio of interest-earning assets to interest-bearing liabilities |                                                                             |                                          | 1.10x |                        |      |                            | 1.11x     |                            |           |            |        |          |        |         |      |            |      |         | 1.09x     |           |           |          |        |        |        |  |      |     
|                                                                 |                                                                             |                                          |       |                        |      |                            |           |                            |           |            |        |          |        |         |      |            |      |         |           |           |           |          |        |        |        |  |      |     



---

|(1) |  | Nonaccrual loans are included in the table for computation purposes, but the foregone interest on such loans is excluded.                                
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|   
|   
|   
|(2) |  | Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.
|   
|   
|   
|   
|(3) |  | Net interest margin represents net interest income divided by average interest-earning assets.                                                           

Provision for Loan Losses. The provision for loan losses reflects
managements judgment of the current period cost associated with credit risk
inherent in the Companys loan portfolio. Specifically, the provision for loan
losses represents the amount charged against current period earnings to achieve
an allowance for loan losses that, in managements judgment, is adequate to
absorb losses inherent in the Companys loan portfolio.

The provision for loan losses of $887,000 for the three months ended March
31, 2002 was relatively consistent with the provision of $753,000 for the
corresponding period of the preceding year. At March 31, 2002, the allowance
for loan losses was $35.1 million. Net loan charge-offs were $290,000 for the
three months ended March 31, 2002, compared with net loan recoveries of $29,000
for the corresponding period of 2001.

Noninterest Income. Noninterest income for the three months ended March
31, 2002 was $1.9 million compared to $1.3 million for the corresponding
quarter of 2001, an increase of $653,000, or 51.6%, primarily as a result of an
increase in commercial banking fees and gain from sale of SBA loans.
Commercial banking fees increased 28.8% to $997,000 for the three months ended
March 31, 2002 as compared to $774,000 for the corresponding period of 2001, as
a result of increased commercial banking activities. Gain on sale of loans
increased to $451,000 in the first quarter of 2002 from $238,000 in the first
quarter of 2001 as a result of increased SBA loan sales.

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##### Table of Contents



Noninterest Expense. Noninterest expense of $13.7 million for the three
months ended March 31, 2002 increased $2.0 million, or 17.0%, compared with
$11.8 million for the corresponding quarter of 2001. Personnel expenses
increased to $7.6 million for the three months ended March 31, 2002, from $6.4
million for the corresponding period of 2001, an increase of $1.2 million, or
18.4%, primarily due to the additional staffing required to support continued
growth of the Banks commercial banking business, the opening of the Asia
Banking and International Divisions during the latter part of 2001, the opening
of the Hong Kong Representative Office in the first quarter of 2002, and
increased incentive accruals related to the loan and deposit growth.

Provision for Income Taxes. The provision for income taxes was $6.0
million and $4.5 million on the income before taxes of $15.1 million and $11.6
million for the three months ended March 31, 2002 and 2001, respectively. The
effective tax rate for the quarter ended March 31, 2002 was 39.79%, compared
with 39.20% for the quarter ended March 31, 2001.

FINANCIAL CONDITION

The Company experienced continued asset growth during the first quarter of
2002. Total assets at March 31, 2002 were $3.06 billion, an increase of
$123.7 million, or 4.2%, from $2.93 billion at December 31, 2001. The growth
resulted primarily from increases in the loan portfolio and in securities and
investments.

During the three months ended March 31, 2002, total loans increased by
$23.9 million, or 1.1%, to $2.29 billion, from $2.26 billion at December 31,
2001. This growth was led by an increase in commercial loans due to the Banks
continuing focus on originating such loans. Total commercial loans grew to
$1.93 billion at March 31, 2002, from $1.82 billion at December 31, 2001.
Residential mortgage (one to four family) loans decreased to $352.2 million at
March 31, 2002 from $430.1 million at December 31, 2001, primarily due to
principal repayments and a $64.3 million internal securitization of residential
mortgage (one to four family) loans in the first quarter of 2002. New loan
commitments of $291.2 million for the three months ended March 31, 2002 were
comprised of $245.2 million of commercial loans and $45.9 million of consumer
loans. Securities (including available-for-sale and held-to-maturity) totaled
$665.2 million at March 31, 2002, an increase of $71.8 million, or 12.1%, from
$593.4 million at December 31, 2001, as a result of the internal securitization
of loans and purchases of additional securities for liquidity purposes.

Total past due loans were 0.54% of total loans at March 31, 2002, compared
with 0.64% at December 31, 2001. Nonperforming assets were $556,000, or 0.02%,
of total assets at March 31, 2002, compared with nonperforming assets of
$991,000, or 0.03%, of total assets at December 31, 2001. The allowance for
loan losses was $35.1 million at March 31, 2002, an increase of $597,000 from
$34.6 million at December 31, 2001. The increase in the allowance for loan
losses reflected the growth in the loan portfolio during the three months ended
March 31, 2002 and increased concentration in commercial loans.

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The following table shows the composition of the Banks loan portfolio by
amount and percentage of gross loans in each major loan category at the dates
indicated:

|                                   |                                           |   |                        |           |                      |  |        |       |   |   |           |           |  |  |        |       |  
|---------------------------------- | ----------------------------------------- | - | ---------------------- | --------- | -------------------- |  | ------ | ----- | - | - | --------- | --------- |  |  | ------ | ----- | -
|                                   |                                           |   | At March 31, 2002      |           | At December 31, 2001
|                                   |                                           |   |                        |           |                     
|                                   |                                           |   | Amount                 |           | %                    |  | Amount |       | %
|                                   |                                           |   |                        |           |                      |  |        |       |  
|                                   |                                           |   | (Dollars in Thousands)
|Commercial:                        |                                           |   |                        |           |                      |  |        |       |   |   |           |           |  |  |        |      
|                                   | Secured by real estate-nonresidential     |   | $                      | 829,317   |                      |  |        | 36.17 | % |   | $         | 798,882   |  |  |        | 35.22 | %
|                                   | Secured by real estate-multifamily        |   |                        | 753,964   |                      |  |        | 32.88 |   |   |           | 677,271   |  |  |        | 29.86 |  
|                                   | Construction                              |   |                        | 177,054   |                      |  |        | 7.72  |   |   |           | 182,558   |  |  |        | 8.05  |  
|                                   | Commercial business                       |   |                        | 165,876   |                      |  |        | 7.24  |   |   |           | 163,628   |  |  |        | 7.21  |  
|                                   |                                           |   |                        |           |                      |  |        |       |   |   |           |           |  |  |        |      
|                                   | Total commercial loans                    |   |                        | 1,926,211 |                      |  |        | 84.01 |   |   |           | 1,822,339 |  |  |        | 80.34 |  
|                                   |                                           |   |                        |           |                      |  |        |       |   |   |           |           |  |  |        |      
|Consumer:                          |                                           |   |                        |           |                      |  |        |       |   |   |           |           |  |  |        |      
|                                   | Residential mortgage (one to four family) |   |                        | 352,166   |                      |  |        | 15.36 |   |   |           | 430,057   |  |  |        | 18.96 |  
|                                   | Other                                     |   |                        | 14,466    |                      |  |        | 0.63  |   |   |           | 16,003    |  |  |        | 0.70  |  
|                                   |                                           |   |                        |           |                      |  |        |       |   |   |           |           |  |  |        |      
|                                   | Total consumer loans                      |   |                        | 366,622   |                      |  |        | 15.99 |   |   |           | 446,060   |  |  |        | 19.66 |  
|                                   |                                           |   |                        |           |                      |  |        |       |   |   |           |           |  |  |        |      
|Total gross loans                  |                                           |   | 2,292,833              |           |                      |  | 100.00 | %     |   |   | 2,268,399 |           |  |  | 100.00 | %    
|                                   |                                           |   |                        |           |                      |  |        |       |   |   |           |           |  |  |        |      
|Net deferred loan origination fees |                                           |   | (4,663                 | )         |                      |  |        |       |   |   | (4,096    | )         |  |  |        |      
|                                   |                                           |   |                        |           |                      |  |        |       |   |   |           |           |  |  |        |      
|Loans                              |                                           |   | 2,288,170              |           |                      |  |        |       |   |   | 2,264,303 |           |  |  |        |      
|Allowance for loan losses          |                                           |   | (35,147                | )         |                      |  |        |       |   |   | (34,550   | )         |  |  |        |      
|                                   |                                           |   |                        |           |                      |  |        |       |   |   |           |           |  |  |        |      
|Net loans                          |                                           | $ | 2,253,023              |           |                      |  |        |       |   | $ | 2,229,753 |           |  |  |        |      
|                                   |                                           |   |                        |           |                      |  |        |       |   |   |           |           |  |  |        |      

The Company continues to emphasize production of commercial real estate
and commercial business loans and to place reduced emphasis on the origination
volume of residential mortgage (one to four family) loans. The Bank holds
substantially all of its loan originations in portfolio, except for the
guaranteed portion of Small Business Administration (SBA) loans which are
generally sold in the secondary market.

Due to its change in the loan origination focus to commercial loans, the
Bank is originating more loans which reprice in our shorter time periods than
the traditional repricing terms of residential mortgage (one to four family)
loans. Construction loans, commercial business loans and SBA loans generally
have monthly repricing terms. Commercial real estate loans generally reprice
each month or are intermediate fixed, meaning that the loans have interest
rates which are fixed for a period, typically five years, and then generally
reprice monthly or become due and payable. Residential mortgage (one to four
family) loans may be adjustable-rate repricing semiannually or annually, fixed
rate for terms of 15 or 30 years, or have interest rates that are fixed for a
period, typically five years, and then generally reprice semi-annually or
annually.

As a result of the change of focus to commercial lending, adjustable-rate
loans increased to $1.72 billion, an increase of $20.5 million, or 1.2%, from
$1.70 billion at December 31, 2001. Fixed-rate loans increased $3.9 million,
or 0.7%, to $568.8 million, or 24.8% of gross loans at March 31, 2002, compared
with $564.9 million, or 24.9% of the gross loans at December 31, 2001. At
March 31, 2002, total gross loans included $190.9 million of intermediate
fixed-rate loans compared with $221.6 million at December 31, 2001, a decrease
of $30.7 million, or 13.9%.

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The following table shows the Banks new loan commitments during the periods indicated:

|            |                                              |                        |   |                            |         |      |   |         |         | 
|----------- | -------------------------------------------- | ---------------------- | - | -------------------------- | ------- | ---- | - | ------- | ------- | 
|            |                                              |                        |   | For the Three Months Ended
|            |                                              |                        |   | March 31,                 
|            |                                              |                        |   |                           
|            |                                              |                        |   | 2002                       |         | 2001
|            |                                              |                        |   |                            |         |     
|            |                                              |                        |   | (Dollars in Thousands)    
|Commercial: |                                              |                        |   |                            |         |      |   |        
|            | Secured by real estate-nonresidential(1)     |                        | $ | 65,859                     |         |      | $ | 59,202  |        
|            | Secured by real estate-multifamily(1)        |                        |   | 98,863                     |         |      |   | 37,874  |        
|            | Construction                                 |                        |   | 30,877                     |         |      |   | 41,928  |        
|            | Commercial business                          |                        |   | 49,618                     |         |      |   | 35,363  |        
|            |                                              |                        |   |                            |         |      |   |        
|            |                                              | Total commercial loans |   |                            | 245,217 |      |   |         | 174,367 | 
|            |                                              |                        |   |                            |         |      |   |        
|Consumer:   |                                              |                        |   |                            |         |      |   |        
|            | Residential mortgage (one to four family)(1) |                        |   | 41,003                     |         |      |   | 6,135   |        
|            | Home equity and other                        |                        |   | 4,938                      |         |      |   | 4,123   |        
|            |                                              |                        |   |                            |         |      |   |        
|            |                                              | Total consumer loans   |   |                            | 45,941  |      |   |         | 10,258  | 
|            |                                              |                        |   |                            |         |      |   |        
|            | Total new commitments                        |                        | $ | 291,158                    |         |      | $ | 184,625 |        
|            |                                              |                        |   |                            |         |      |   |        



---

|(1) |  | For nonresidential loans, substantially all commitments have been funded. For multifamily
and residential mortgage (one to four family) loans, all commitments have been funded.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Nonperforming Assets and OREO. Management generally places loans on
nonaccrual status when they become 90 days past due, unless they are both well
secured and in the process of collection. When a loan is placed on nonaccrual
status, any interest previously accrued but not collected is reversed from
income. Nonaccrual loans were $556,000 at March 31, 2002 compared to $991,000
at December 31, 2001.

The following table sets forth information regarding nonperforming assets
at the dates indicated:

|                                                      |            |                                           |                  |                        |     |                        |           |                 |     |     |     | 
|----------------------------------------------------- | ---------- | ----------------------------------------- | ---------------- | ---------------------- | --- | ---------------------- | --------- | --------------- | --- | --- | --- | 
|                                                      |            |                                           |                  |                        |     | At March 31,           |           | At December 31,
|                                                      |            |                                           |                  |                        |     | 2002                   |           | 2001           
|                                                      |            |                                           |                  |                        |     |                        |           |                
|                                                      |            |                                           |                  |                        |     | (Dollars in Thousands)
|Nonaccrual loans:                                     |            |                                           |                  |                        |     |                        |           |                
|                                                      | Commercial |                                           |                  |                        |     |                        |           |                 |    
|                                                      |            | Secured by real estate-multifamily        |                  | $                      |    |                        |           | $               | 210 |    
|                                                      |            | Construction loans                        |                  |                        | 485 |                        |           |                 |    |    
|                                                      |            |                                           |                  |                        |     |                        |           |                
|                                                      |            |                                           | Total commercial |                        |     | 485                    |           |                 |     | 210 |    
|                                                      |            |                                           |                  |                        |     |                        |           |                
|                                                      | Consumer   |                                           |                  |                        |     |                        |           |                 |    
|                                                      |            | Residential mortgage (one to four family) |                  |                        |    |                        |           |                 | 781 |    
|                                                      |            | Other                                     |                  |                        | 71  |                        |           |                 |    |    
|                                                      |            |                                           |                  |                        |     |                        |           |                
|                                                      |            |                                           | Total consumer   |                        |     | 71                     |           |                 |     | 781 |    
|                                                      |            |                                           |                  |                        |     |                        |           |                
|                                                      |            |                                           |                  | Total nonaccrual loans |     |                        | 556       |                 |     |     | 991 | 
|                                                      |            |                                           |                  |                        |     |                        |           |                
|Other real estate owned (OREO)                      |            |                                           |                 |                        |     |                        |          |                
|                                                      |            |                                           |                  |                        |     |                        |           |                
|Total nonperforming assets                            |            | $                                         | 556              |                        |     | $                      | 991       |                
|                                                      |            |                                           |                  |                        |     |                        |           |                
|Nonperforming assets to total assets                  |            |                                           | 0.02             | %                      |     |                        | 0.03      | %              
|Nonaccrual loans to loans                             |            |                                           | 0.02             |                        |     |                        | 0.04      |                
|Nonperforming assets to loans and OREO                |            |                                           | 0.02             |                        |     |                        | 0.04      |                
|Loans                                                 |            | $                                         | 2,288,170        |                        |     | $                      | 2,264,303 |                
|Gross income not recognized on nonaccrual loans       |            | $                                         | 39               |                        |     | $                      | 24        |                
|Accruing loans contractually past due 90 days or more |            | $                                         |                 |                        |     | $                      | 1,269     |                

Total nonperforming assets were $556,000 at March 31, 2002, a decrease of
$435,000, or 43.9%, from $991,000 at December 31, 2001. The Bank records OREO
at the lower of carrying value or fair value less estimated disposal costs.
Any write-down of OREO is charged to earnings. There were no OREOs at March
31, 2002 and December 31, 2001.

Management cannot predict the extent to which economic conditions in the
Banks market area may worsen or the full impact such conditions may have on
the Banks loan portfolio. Accordingly, there can be no assurance that

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other loans will not become 90 days or more past due, be placed on nonaccrual status,
or become impaired or restructured loans or OREO in the future.

Allowance for Loan Losses. The Bank has established a formal process for
determining an adequate allowance for loan losses. This process results in an
allowance that consists of two components, allocated and unallocated. The
allocated component includes allowance estimates that result from analyzing
certain individual loans (including impaired loans), and includes the results
of analyzing loans in groups. For loans that are analyzed individually, third
party information, such as appraisals, may be used to supplement managements
analysis. For loans that are analyzed in groups, such as residential mortgage
(one to four family) loans, managements analysis consists of reviewing
delinquency trends, charge-off experience, current economic conditions,
composition of the loan portfolio, regional collateral value trends, and other
factors. The unallocated component of the allowance for loan losses is
intended to compensate for the subjective nature of estimating an adequate
allowance for loan losses, economic uncertainties, and other factors. In
addition to the assessment performed by management, the Banks loan portfolio
is subject to an internal asset review function and is examined by the Banks
regulators. The results of these examinations are incorporated into
managements assessment of the allowance for loan losses.

The allowance for loan losses is increased by provisions for loan losses,
which are charged against earnings, and reduced by charge-offs, net of any
recoveries. Loans are charged off when they are classified as loss, as defined
by bank regulations. For any loan that is past due more than 90 days,
management will generally charge off the amount by which the recorded loan
amount exceeds the value of the underlying collateral, unless the loan is both
well secured and in the process of collection. Recoveries of amounts that have
previously been charged off are generally recorded only to the extent that cash
is received.

While management uses all available evidence in assessing the adequacy of
the allowance for loan losses, future additions to the allowance for loan
losses will be subject to continuing evaluations of the inherent risk in the
portfolio. In times of economic downturn, asset quality may deteriorate and
additional provisions for loan losses could be required. Additionally, the
Banks regulators review the adequacy of the allowance for loan losses as part
of their examination process and may require the Bank to record additional
provisions for loan losses based on their judgment or information available to
them at the time of their examinations. Management believes that the allowance
for loan losses is adequate to provide for estimated losses inherent in the
Banks loan portfolio.

The following table sets forth information concerning the Banks allowance
for loan losses for the dates indicated:

|                                                         |  |                            |        |      |  |   |        |   
|-------------------------------------------------------- |  | -------------------------- | ------ | ---- |  | - | ------ | --
|                                                         |  | For the Three Months Ended
|                                                         |  | March 31,                 
|                                                         |  |                           
|                                                         |  | 2002                       |        | 2001
|                                                         |  |                            |        |     
|                                                         |  | (Dollars in Thousands)    
|Balance at beginning of period                           |  | $                          | 34,550 |      |  | $ | 28,901 |   
|Provision for loan losses                                |  |                            | 887    |      |  |   | 753    |   
|Loans charged off                                        |  |                            | 300    |      |  |   |       |   
|Recoveries                                               |  |                            | 10     |      |  |   | 29     |   
|                                                         |  |                            |        |      |  |   |        |   
|Balance at end of period                                 |  | $                          | 35,147 |      |  | $ | 29,683 |   
|                                                         |  |                            |        |      |  |   |        |   
|Allowance for loan losses to loans                       |  |                            | 1.54   | %    |  |   | 1.50   | % 
|Annualized net charge-offs (recoveries) to average loans |  |                            | 0.05   | %    |  |   | (0.01  | )%

Securities. Securities (including available-for-sale and
held-to-maturity) increased during the first three months of 2002 by $71.8
million, or 12.1%, to $665.2 million at March 31, 2002 from $593.4 million at
December 31, 2001. The increase in securities resulted primarily from the
internal securitization of residential mortgage (one to four family) loans for
risk-based capital management purposes.

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The following table presents the Banks securities portfolio on the dates
indicated:

|                                                                   |                            |                                                     |         |                        |         |                      |         |           |         |        |         |         |         |   |         |         |         | 
|------------------------------------------------------------------ | -------------------------- | --------------------------------------------------- | ------- | ---------------------- | ------- | -------------------- | ------- | --------- | ------- | ------ | ------- | ------- | ------- | - | ------- | ------- | ------- | 
|                                                                   |                            |                                                     |         | At March 31, 2002      |         | At December 31, 2001
|                                                                   |                            |                                                     |         |                        |         |                     
|                                                                   |                            |                                                     |         | Amortized              |         | Market               |         | Amortized |         | Market
|                                                                   |                            |                                                     |         | Cost                   |         | Value                |         | Cost      |         | Value 
|                                                                   |                            |                                                     |         |                        |         |                      |         |           |         |       
|                                                                   |                            |                                                     |         | (Dollars in Thousands)
|Investment securities available for sale:                          |                            |                                                     |         |                        |         |                      |         |           |         |        |         |         |         |   |         |        
|                                                                   | Trust Preferred Securities |                                                     | $       | 89,712                 |         |                      | $       | 77,217    |         |        | $       | 100,327 |         |   | $       | 89,929  |        
|                                                                   | Federal Agency Notes       |                                                     |         | 32,180                 |         |                      |         | 31,893    |         |        |         | 36,507  |         |   |         | 36,378  |        
|                                                                   | Asset-backed Securities    |                                                     |         | 7,202                  |         |                      |         | 7,206     |         |        |         | 12,018  |         |   |         | 12,012  |        
|                                                                   |                            |                                                     |         |                        |         |                      |         |           |         |        |         |         |         |   |         |        
|                                                                   |                            | Total investment securities available for sale      |         |                        | 129,094 |                      |         |           | 116,316 |        |         |         | 148,852 |   |         |         | 138,319 | 
|                                                                   |                            |                                                     |         |                        |         |                      |         |           |         |        |         |         |         |   |         |        
|Mortgage-backed securities available for sale:                     |                            |                                                     |         |                        |         |                      |         |           |         |        |         |         |         |   |         |        
|                                                                   | FNMA                       |                                                     |         | 248,636                |         |                      |         | 249,055   |         |        |         | 206,902 |         |   |         | 206,777 |        
|                                                                   | GNMA                       |                                                     |         | 193,311                |         |                      |         | 190,942   |         |        |         | 145,091 |         |   |         | 145,395 |        
|                                                                   | FHLMC                      |                                                     |         | 53,894                 |         |                      |         | 53,138    |         |        |         | 47,747  |         |   |         | 46,928  |        
|                                                                   | Other                      |                                                     |         |                       |         |                      |         |          |         |        |         | 4,504   |         |   |         | 4,502   |        
|                                                                   |                            |                                                     |         |                        |         |                      |         |           |         |        |         |         |         |   |         |        
|                                                                   |                            | Total mortgage-backed securities available for sale |         |                        | 495,841 |                      |         |           | 493,135 |        |         |         | 404,244 |   |         |         | 403,602 | 
|                                                                   |                            |                                                     |         |                        |         |                      |         |           |         |        |         |         |         |   |         |        
|Total investment and mortgage-backed securities available for sale |                            | $                                                   | 624,935 |                        |         | $                    | 609,451 |           |         | $      | 553,096 |         |         | $ | 541,921 |        
|                                                                   |                            |                                                     |         |                        |         |                      |         |           |         |        |         |         |         |   |         |        
|Investment securities held to maturity:                            |                            |                                                     |         |                        |         |                      |         |           |         |        |         |         |         |   |         |        
|                                                                   | Municipals                 |                                                     | $       | 54,774                 |         |                      | $       | 53,740    |         |        | $       | 50,444  |         |   | $       | 49,667  |        
|                                                                   |                            |                                                     |         |                        |         |                      |         |           |         |        |         |         |         |   |         |        
|Mortgage-backed securities held to maturity:                       |                            |                                                     |         |                        |         |                      |         |           |         |        |         |         |         |   |         |        
|                                                                   | Other                      |                                                     |         | 960                    |         |                      |         | 960       |         |        |         | 1,028   |         |   |         | 1,028   |        
|                                                                   |                            |                                                     |         |                        |         |                      |         |           |         |        |         |         |         |   |         |        
|Total investment and mortgage-backed securities held to maturity   |                            | $                                                   | 55,734  |                        |         | $                    | 54,700  |           |         | $      | 51,472  |         |         | $ | 50,695  |        
|                                                                   |                            |                                                     |         |                        |         |                      |         |           |         |        |         |         |         |   |         |        

As of March 31, 2002, the carrying value of the securities was $680.7
million and the market value was $664.2 million. The total unrealized loss on
these securities was $16.5 million. Of this total, $15.5 million relates to
securities, which are available for sale on which the unrealized loss, net of
tax, is included as a reduction of stockholders equity. The difference
between the carrying value and market value of securities, which are held to
maturity, aggregating a loss of $1.0 million, has not been recognized in the
financial statements as of March 31, 2002. The unrealized losses are the
result of movements in market interest rates.

Deposits. Deposits are the Banks primary source of funds to use in
lending and investment activities. Deposit balances were $2.54 billion at
March 31, 2002, which represented an increase of $77.9 million, or 3.2%, from
$2.47 billion at December 31, 2001. Core deposit balances increased by $88.2
million, or 10.1%, and time deposits decreased by $10.4 million, or 0.7%,
during this period. Core deposits include NOW, demand deposit, money market
and savings accounts. The growth in core deposits resulted primarily from the
Banks continued focus on developing new and expanding existing commercial and
consumer relationships in the ethnic Chinese community, its retail niche
market. At March 31, 2002, 62.0% of deposits were time deposits, 18.7% were
savings accounts, and 19.3% were NOW, demand deposit and money market accounts.
By comparison, at December 31, 2001, 64.4% of deposits were time deposits,
18.3% were savings accounts, and 17.3% were NOW, demand deposit and money
market accounts.

The Bank obtains deposits primarily from the communities it serves. No
material portion of its deposits are from or are dependent on any one person or
industry. At March 31, 2002, less than 2.0% of the Banks deposits were held
by customers with addresses located outside the United States. Additionally,
at that date, the 100 depositors with the largest aggregate deposit balances
comprised less than 15.0% of the Banks total deposits. The Bank accepts
deposits in excess of $100,000 from customers. Included in time deposits as of
March 31, 2002, is $744.5 million of deposits of $100,000 or greater. Such
deposits make up 29.3% of total deposits. At March 31, 2002, the Bank had no
brokered deposits. Substantially all of the time deposits as of March 31, 2002
mature in one year or less.

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The following table presents the balances and rates paid for categories of
deposits at the dates indicated:

|                                               |                     |   |                        |           |                      |  |          |      |              |   |           |           |          |  |      |      | 
|---------------------------------------------- | ------------------- | - | ---------------------- | --------- | -------------------- |  | -------- | ---- | ------------ | - | --------- | --------- | -------- |  | ---- | ---- | 
|                                               |                     |   | At March 31, 2002      |           | At December 31, 2001
|                                               |                     |   |                        |           |                     
|                                               |                     |   |                        |           |                      |  | Weighted |      |              |   |           |           | Weighted
|                                               |                     |   | Balance                |           | Average Rate         |  | Balance  |      | Average Rate
|                                               |                     |   |                        |           |                      |  |          |      |             
|                                               |                     |   | (Dollars in Thousands)
|NOW, demand deposits and money market accounts |                     | $ | 490,024                |           |                      |  | 1.10     | %    |              | $ | 427,338   |           |          |  | 1.19 | %   
|Savings accounts                               |                     |   | 475,289                |           |                      |  | 1.27     |      |              |   | 449,735   |           |          |  | 1.41 |     
|Time deposits:                                 |                     |   |                        |           |                      |  |          |      |              |   |           |           |          |  |      |     
|                                               | Less than $100,000  |   |                        | 834,255   |                      |  |          | 2.82 |              |   |           | 871,754   |          |  |      | 3.62 | 
|                                               | $100,000 or greater |   |                        | 744,472   |                      |  |          | 3.23 |              |   |           | 717,325   |          |  |      | 3.80 | 
|                                               |                     |   |                        |           |                      |  |          |      |              |   |           |           |          |  |      |     
|                                               | Total time deposits |   |                        | 1,578,727 |                      |  |          | 3.01 |              |   |           | 1,589,079 |          |  |      | 3.70 | 
|                                               |                     |   |                        |           |                      |  |          |      |              |   |           |           |          |  |      |     
|Total deposits                                 |                     | $ | 2,544,040              |           |                      |  | 2.32     | %    |              | $ | 2,466,152 |           |          |  | 2.85 | %   
|                                               |                     |   |                        |           |                      |  |          |      |              |   |           |           |          |  |      |     

Other Borrowings.The Bank maintains borrowing lines with numerous
correspondent banks and brokers and with the Federal Home Loan Bank (FHLB) of
San Francisco to supplement our supply of lendable funds. Such borrowings are
generally secured with mortgage loans and/or securities with a market value at
least equal to outstanding balances. In addition to loans and securities,
advances from the FHLB of San Francisco are typically secured by a pledge of
our stock in the FHLB of San Francisco. At March 31, 2002, the Bank had $258.0
million of advances outstanding and $238.0 million outstanding at December 31,
2001.

Included in the $258.0 million of FHLB advances as of March 31, 2002 were
$9.0 million of short-term advances which mature within one year. Of the
$249.0 million in long-term advances, $33.0 million mature between 2004 and
2008. An additional $216.0 million mature in 2008 with provisions which allow
the FHLB of San Francisco, at their option, to terminate the advances at
quarterly intervals at specified periods ranging from three to five years
beyond the original advance dates. As of March 31, 2002, $136.0 million of
these advances may be terminated at the option of the FHLB.

In December of 1998, the Bank entered into the Treasury Investment Program with the
Federal Reserve Bank of San Francisco ("FRB"). This borrowing line allowed the Bank to utilize deposits made to the U.S. Treasury
for federal tax payments until the Treasury needed the funds. This borrowing line had to be fully collateralized at all times. In
March of 2001, the Bank discontinued its participation in the Treasury Investment Program.

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The following table sets forth certain information regarding short and
long-term borrowings of the Bank at or for the dates indicated:

|                                  |                                                                         |  |                                  |         |      |  |   |         |  
|--------------------------------- | ----------------------------------------------------------------------- |  | -------------------------------- | ------- | ---- |  | - | ------- | -
|                                  |                                                                         |  | At or For the Three Months Ended
|                                  |                                                                         |  | March 31,                       
|                                  |                                                                         |  |                                 
|                                  |                                                                         |  | 2002                             |         | 2001
|                                  |                                                                         |  |                                  |         |     
|                                  |                                                                         |  | (Dollars in Thousands)          
|Short-term borrowings:            |                                                                         |  |                                  |         |      |  |   |        
|FHLB of San Francisco advances:   |                                                                         |  |                                  |         |      |  |   |        
|                                  | Average balance outstanding                                             |  | $                                | 7,048   |      |  | $ | 22,870  |  
|                                  | Maximum amount outstanding at any month end                             |  |                                  | 18,220  |      |  |   | 39,177  |  
|                                  | Balance outstanding at end of period                                    |  |                                  | 9,000   |      |  |   | 20,000  |  
|                                  | Weighted average interest rate during the period                        |  |                                  | 5.56    | %    |  |   | 6.52    | %
|                                  | Weighted average interest rate at end of period                         |  |                                  | 4.63    | %    |  |   | 6.74    | %
|                                  | Weighted average remaining term to maturity at end of period (in years) |  |                                  | 1       |      |  |   |        |  
|FRB direct investment borrowings: |                                                                         |  |                                  |         |      |  |   |        
|                                  | Average balance outstanding                                             |  | $                                |        |      |  | $ | 2,842   |  
|                                  | Maximum amount outstanding at any month end                             |  |                                  |        |      |  |   | 10,000  |  
|                                  | Balance outstanding at end of period                                    |  |                                  |        |      |  |   |        |  
|                                  | Weighted average interest rate during the period                        |  |                                  |        | %    |  |   | 5.56    | %
|                                  | Weighted average interest rate at end of period                         |  |                                  |        | %    |  |   |        | %
|                                  | Weighted average remaining term to maturity at end of period (in years) |  |                                  |        |      |  |   |        |  
|Long-term borrowings:             |                                                                         |  |                                  |         |      |  |   |        
|FHLB of San Francisco advances:   |                                                                         |  |                                  |         |      |  |   |        
|                                  | Average balance outstanding                                             |  | $                                | 248,689 |      |  | $ | 238,000 |  
|                                  | Maximum amount outstanding at any month end                             |  |                                  | 253,000 |      |  |   | 238,000 |  
|                                  | Balance outstanding at end of period                                    |  |                                  | 249,000 |      |  |   | 238,000 |  
|                                  | Weighted average interest rate during the period                        |  |                                  | 5.32    | %    |  |   | 5.45    | %
|                                  | Weighted average interest rate at end of period                         |  |                                  | 5.36    | %    |  |   | 5.46    | %
|                                  | Weighted average remaining term to maturity at end of period (in years) |  |                                  | 6       |      |  |   | 7       |  

Guaranteed Preferred Beneficial Interests in Junior Subordinated
Debentures.The Company has issued a total of $46.0 million of junior
subordinated debentures. The proceeds from the issuances were used primarily
to provide additional capital for the Bank and for general business purposes.

Regulatory Capital. Under capital adequacy guidelines and the regulatory
framework for prompt corrective action, the Bank must meet specific capital
guidelines as calculated under regulatory accounting practices. As of March
31, 2002, the Bank met the Well Capitalized requirements under these
guidelines. The total risk-based capital ratio of the Bank at March 31, 2002
was 11.02%, as compared with 10.91% at December 31, 2001. The ratio of Tier I
capital (as defined in the regulations) to average assets (as defined) of the
Bank at March 31, 2002 and December 31, 2001 was 7.26%. The Companys capital
ratios are approximately those of the Bank, and similarly the Company is
categorized as Well Capitalized.




ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has been no material change in the Companys exposure to market risk
since the information was disclosed in the Companys Annual Report dated
December 31, 2001 on file with the Securities and Exchange Commission (SEC File
No. 0-24947).

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##### Table of Contents






PART II  OTHER INFORMATION




Item 1. Legal Proceedings

The Companys wholly-owned subsidiary, United Commercial Bank, has been a
party to litigation incidental to various aspects of its operations, in the
ordinary course of business.

Management is not currently aware of any litigation that will have a
material adverse impact on the Companys consolidated financial condition, or
the results of operations.




Item 2. Changes in Securities and Use of Proceeds

Not applicable.




Item 3. Defaults Upon Senior Securities

Not applicable.




Item 4. Submission of Matters to a Vote of Security Holders

None.




Item 5. Other Information

None.




Item 6. Exhibits and Reports on Form 8-K

|     |  |                                                                                                                   
|---- |  | ------------------------------------------------------------------------------------------------------------------
|(a)  |  | List of Exhibits (Filed herewith unless otherwise noted)                                                          
|    
|3.1  |  | Amended and Restated Certificate of Incorporation of UCBH Holdings, Inc.*                                         
|3.2  |  | Bylaws of UCBH Holdings, Inc.*                                                                                    
|3.3  |  | Certificate of Amendment to the Amended and Restated Certificate of
Incorporation of UCBH Holdings, Inc.**        
|4.0  |  | Form of Stock Certificate of UCBH Holdings, Inc.*                                                                 
|10.1 |  | Employment Agreement between United Commercial Bank and Thomas S. Wu*                                             
|10.2 |  | Employment Agreement between UCBH Holdings, Inc. and Thomas S. Wu*                                                
|10.3 |  | Form of Termination and Change in Control Agreement between United
Commercial Bank and certain executive officers*
|10.4 |  | Form of Termination and Change in Control Agreement between UCBH
Holdings, Inc. and certain executive officers*   
|10.5 |  | Amended UCBH Holdings, Inc. 1998 Stock Option Plan**                                                              
|    
|(b)  |  | Reports on Form 8-K                                                                                               
|    
|     |  | None.                                                                                                             



---

|*  |  | Incorporated by reference to the exhibit of the same number from the
Companys Registration Statement on Form S-1, filed with the Securities
and Exchange Commission on July 1, 1998 (SEC File No. 333-58325).         
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|  
|  
|  
|** |  | Incorporated by reference to the exhibit of the same number from the
Companys Form 10-Q for the quarter ended March 31, 2001, filed with the
Securities and Exchange Commission on May 3, 2001 (SEC File No. 0-24947).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



| | UCBH HOLDINGS, INC.
| | -------------------



|Date:   April 26, 2002 | /s/ Thomas S. Wu
Thomas S. Wu
Chairman, President and Chief Executive Officer
(principal executive officer)
|---------------------- | -----------------------------------------------------------------------------------------------------------



|Date:   April 26, 2002 | /s/ Jonathan H. Downing
Jonathan H. Downing
Executive Vice President and
Chief Financial Officer
(principal financial officer)
|---------------------- | ------------------------------------------------------------------------------------------------------------------------------

Page 17