Cathay General Bancorp said it received approval to obtain $258 million as part of the government’s $700 billion program to invest in banks.

The bank plans to use the funds to expand services, said Cathay Chief Executive Dunson Cheng, noting that the Los Angeles parent of Cathay Bank was considered “well capitalized” by regulatory standards.

“However, in view of the current uncertain economic outlook, we deem it prudent to participate in the (program) to position the company to expand its services to its communities and to enhance its strategic position,” Cheng said.

Cathay joins East West Bancorp Inc., Nara Bancorp Inc. and Broadway Financial Corp., which last week said they would participate in the Troubled Assets Relief Program. Also, City National Corp. last month became the first Los Angeles County-based bank to accept government investment.

1st Century Bancshares, Inc., the holding company of 1st Century Bank, said Monday it had decided not to apply for investment from the program.

Cathay which has 31 branches in California and 19 outside the state, recently increased its provision for credit losses sixfold to $15.8 million and said third quarter earnings fell 80 percent to $6.9 million from a year earlier.

Cathay shares were down 48 cents, or 2.5 percent, to $18.24 in morning trading on the Nasdaq.