Cathay General Bancorp Announces Second Quarter 2024 Results
Cathay General Bancorp (CATY) reported net income of $66.8 million, or $0.92 per share, for Q2 2024. This includes $4.1 million from accelerated amortization of solar tax credit investments and a $1.4 million mark-to-market loss from equity securities. Key highlights:
- Net interest margin decreased to 3.01% from 3.05% in Q1 2024
- Diluted EPS decreased to $0.92 from $0.98 in Q1 2024
- New $125 million stock repurchase program announced
- Gross loans decreased 0.4% to $19.36 billion
- Total deposits decreased 0.4% to $19.77 billion
- Non-performing assets increased 3.1% to $129.0 million
The company maintains strong capital ratios, with a Tier 1 risk-based capital ratio of 13.26% and total risk-based capital ratio of 14.74% as of June 30, 2024.
Cathay General Bancorp (CATY) ha riportato un reddito netto di 66,8 milioni di dollari, ovvero 0,92 dollari per azione, per il secondo trimestre del 2024. Questo include 4,1 milioni di dollari derivanti dall'ammortamento accelerato degli investimenti in crediti fiscali per l'energia solare e una perdita di 1,4 milioni di dollari da un mark-to-market su titoli azionari. Punti salienti:
- Il margine di interesse netto è diminuito a 3,01% rispetto al 3,05% del primo trimestre del 2024
- L'EPS diluito è sceso a 0,92 dollari da 0,98 dollari nel primo trimestre del 2024
- Annunciato un nuovo programma di riacquisto di azioni da 125 milioni di dollari
- I prestiti lordi sono diminuiti dello 0,4% a 19,36 miliardi di dollari
- I depositi totali sono diminuiti dello 0,4% a 19,77 miliardi di dollari
- I beni non performanti sono aumentati del 3,1% a 129,0 milioni di dollari
L'azienda mantiene forti rapporti di capitale, con un rapporto di capitale di base Tier 1 del 13,26% e un rapporto di capitale totale basato sul rischio del 14,74% al 30 giugno 2024.
Cathay General Bancorp (CATY) reportó ingresos netos de 66.8 millones de dólares, o 0.92 dólares por acción, para el segundo trimestre de 2024. Esto incluye 4.1 millones de dólares por la amortización acelerada de inversiones en créditos fiscales solares y una pérdida de 1.4 millones de dólares por la valoración de mercado de valores. Puntos destacados:
- El margen de interés neto disminuyó a 3.01% desde el 3.05% en el primer trimestre de 2024
- El EPS diluido disminuyó a 0.92 dólares desde 0.98 dólares en el primer trimestre de 2024
- Anunciado un nuevo programa de recompra de acciones por 125 millones de dólares
- Los préstamos brutos disminuyeron un 0.4% a 19.36 mil millones de dólares
- Los depósitos totales disminuyeron un 0.4% a 19.77 mil millones de dólares
- Los activos no productivos aumentaron un 3.1% a 129.0 millones de dólares
La empresa mantiene sólidos ratios de capital, con un ratio de capital base de Tier 1 del 13.26% y un ratio de capital total basado en riesgos del 14.74% al 30 de junio de 2024.
Cathay General Bancorp (CATY)는 2024년 2분기에 6680만 달러의 순이익, 또는 주당 0.92달러를 보고했습니다. 여기에는 태양광 세금 크레딧 투자에 대한 가속화된 상각으로 인한 410만 달러와 주식 증권에서 발생한 140만 달러의 시장 가치 손실이 포함됩니다. 주요 요점:
- 순이자마진은 3.01%로 2024년 1분기의 3.05%에서 감소했습니다
- 희석 EPS는 2024년 1분기의 0.98달러에서 0.92달러로 감소했습니다
- 1억 2500만 달러 규모의 새로운 자사주 매입 프로그램 발표
- 총대출이 0.4% 감소하여 193억 6천만 달러에 달했습니다
- 총예금이 0.4% 감소하여 197억 7천만 달러에 달했습니다
- 부실자산이 3.1% 증가하여 1억 2900만 달러에 달했습니다
회사는 2024년 6월 30일 기준으로 13.26%의 Tier 1 위험 기준 자본 비율과 14.74%의 총 위험 기준 자본 비율을 유지하고 있습니다.
Cathay General Bancorp (CATY) a déclaré un revenu net de 66,8 millions de dollars, soit 0,92 dollar par action, pour le deuxième trimestre 2024. Cela inclut 4,1 millions de dollars provenant de l'amortissement accéléré des investissements en crédits d'impôt solaire et une perte de 1,4 million de dollars due à l'évaluation à la juste valeur des titres. Points clés :
- La marge d'intérêt nette a diminué à 3,01% par rapport à 3,05% au 1er trimestre 2024
- Le BPA dilué a diminué à 0,92 dollar contre 0,98 dollar au 1er trimestre 2024
- Un nouveau programme de rachat d'actions de 125 millions de dollars annoncé
- Les prêts bruts ont diminué de 0,4 % à 19,36 milliards de dollars
- Les dépôts totaux ont diminué de 0,4 % à 19,77 milliards de dollars
- Les actifs non productifs ont augmenté de 3,1 % à 129 millions de dollars
L'entreprise maintient de solides ratios de capital, avec un ratio de capital de base de Tier 1 de 13,26 % et un ratio de capital total basé sur le risque de 14,74 % au 30 juin 2024.
Cathay General Bancorp (CATY) berichtete von einem Nettogewinn von 66,8 Millionen Dollar oder 0,92 Dollar pro Aktie für das 2. Quartal 2024. Dies umfasst 4,1 Millionen Dollar aus der beschleunigten Abschreibung von Solarsteuergutschriften und einen Verlust von 1,4 Millionen Dollar aus der Neubewertung von Aktienwerten. Wichtige Höhepunkte:
- Die Nettomarge fiel auf 3,01% von 3,05% im 1. Quartal 2024
- Der verwässerte Gewinn pro Aktie (EPS) fiel von 0,98 Dollar im 1. Quartal 2024 auf 0,92 Dollar
- Ein neues Aktienrückkaufprogramm über 125 Millionen Dollar angekündigt
- Bruttokredite sanken um 0,4% auf 19,36 Milliarden Dollar
- Gesamteinlagen sanken um 0,4% auf 19,77 Milliarden Dollar
- Problematische Anlagen stiegen um 3,1% auf 129,0 Millionen Dollar
Das Unternehmen hat starke Kapitalquoten, mit einer Tier-1-Kapitalquote von 13,26% und einer Gesamt-Kapitalquote von 14,74% zum 30. Juni 2024.
- Announced new $125 million stock repurchase program
- Maintained strong capital ratios (Tier 1 risk-based: 13.26%, Total risk-based: 14.74%)
- Net interest margin stabilizing at 3.01%
- Net income decreased 6.4% to $66.8 million compared to Q1 2024
- Diluted EPS decreased to $0.92 from $0.98 in Q1 2024
- Provision for credit losses increased to $6.6 million from $1.9 million in Q1 2024
- Non-performing assets increased 3.1% to $129.0 million
- Efficiency ratio increased to 55.65% from 53.22% in Q1 2024
The financial results announced for Cathay General Bancorp’s second quarter of 2024 present a mixed picture. The key highlight is a net income of
From a market perspective, Cathay General Bancorp’s quarterly results show critical trends that investors need to keep an eye on. The slight dip in net interest margin and increased provision for credit losses could be interpreted as early signs of economic stress or strategic conservatism. The stock repurchase program is a strategic move to return capital to shareholders and often indicates that the company believes its stock is undervalued. This could potentially provide support to the stock price in the near term. However, investors should also be mindful of the slight decline in deposit balances and the continued pressure on earnings per share. The efficiency ratio increase to
In reviewing the financial disclosures from Cathay General Bancorp, several legal and regulatory implications come to light. The company's adherence to Basel III capital requirements, with a Tier 1 risk-based capital ratio of
FINANCIAL PERFORMANCE
| Three months ended | |||||
| (unaudited) | June 30, 2024 | March 31, 2024 | June 30, 2023 | ||
| Net income | |||||
| Basic earnings per common share |
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| Diluted earnings per common share |
|
|
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| Return on average assets |
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| Return on average total stockholders' equity |
|
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| Efficiency ratio |
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SECOND QUARTER HIGHLIGHTS
-
Net interest margin decreased to
3.01% in the second quarter of 2024 from3.05% in the first quarter of 2024. -
Diluted earnings per share decreased to
$0.92 $0.98 -
On May 28, 2024, the Company announced a new stock repurchase program to buy back up to
$125.0 million $125.0 million $43.14
“We are seeing signs that our net interest margin has begun to stabilize. During the second quarter, we repurchased 0.7 million shares at an average cost of
INCOME STATEMENT REVIEW
SECOND QUARTER 2024 COMPARED TO THE FIRST QUARTER 2024
Net income for the quarter ended June 30, 2024, was
Return on average stockholders’ equity was
Net interest income before provision for credit losses
Net interest income before provision for credit losses decreased
The net interest margin was
For the second quarter of 2024, the yield on average interest-earning assets was
Provision for credit losses
The Company recorded a provision for credit losses of
The following table sets forth the charge-offs and recoveries for the periods indicated:
Three months ended |
|
Six months ended June 30, |
|||||||||||||
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
|
|
2024 |
|
|
2023 |
|||||
| (In thousands) (Unaudited) | |||||||||||||||
| Charge-offs: | |||||||||||||||
| Commercial loans | $ |
8,257 |
$ |
1,939 |
$ |
2,352 |
$ |
10,196 |
$ |
6,263 |
|||||
| Real estate loans (1) |
|
— |
|
254 |
|
130 |
|
254 |
|
4,120 |
|||||
| Installment and other loans |
|
— |
|
— |
|
1 |
|
— |
|
7 |
|||||
| Total charge-offs |
|
8,257 |
|
2,193 |
|
2,483 |
|
10,450 |
|
10,390 |
|||||
| Recoveries: | |||||||||||||||
| Commercial loans |
|
126 |
|
812 |
|
442 |
|
938 |
|
953 |
|||||
| Real estate loans (1) |
|
134 |
|
241 |
|
61 |
|
375 |
|
2,601 |
|||||
| Installment and other loans |
|
— |
|
— |
|
— |
|
— |
|
— |
|||||
| Total recoveries |
|
260 |
|
1,053 |
|
503 |
|
1,313 |
|
3,554 |
|||||
| Net charge-offs/(recoveries) | $ |
7,997 |
$ |
1,140 |
$ |
1,980 |
$ |
9,137 |
$ |
6,836 |
|||||
(1) |
Real estate loans include commercial real estate loans, residential mortgage loans and equity lines |
Non-interest income
Non-interest income, which includes revenues from depository service fees, letters of credit commissions, securities gains (losses), wealth management fees, and other sources of fee income, was
Non-interest expense
Non-interest expense increased
Income taxes
The effective tax rate for the second quarter of 2024 was
BALANCE SHEET REVIEW
Gross loans, excluding loans held for sale, were
The loan balances and composition as of June 30, 2024, compared to March 31, 2024, and June 30, 2023, are presented below:
| June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||||
| (In thousands) (Unaudited) | ||||||||||||
| Commercial loans | $ |
3,090,763 |
|
$ |
3,132,580 |
|
$ |
3,317,868 |
|
|||
| Construction loans |
|
356,978 |
|
|
382,775 |
|
|
521,673 |
|
|||
| Commercial real estate loans |
|
9,886,030 |
|
|
9,821,807 |
|
|
9,293,475 |
|
|||
| Residential mortgage loans |
|
5,782,202 |
|
|
5,841,846 |
|
|
5,542,466 |
|
|||
| Equity lines |
|
235,277 |
|
|
245,222 |
|
|
272,055 |
|
|||
| Installment and other loans |
|
6,274 |
|
|
5,166 |
|
|
5,257 |
|
|||
| Gross loans | $ |
19,357,524 |
|
$ |
19,429,396 |
|
$ |
18,952,794 |
|
|||
| Allowance for loan losses |
|
(153,404 |
) |
|
(154,589 |
) |
|
(155,109 |
) |
|||
| Unamortized deferred loan fees |
|
(10,785 |
) |
|
(11,737 |
) |
|
(9,497 |
) |
|||
| Total loans, net | $ |
19,193,335 |
|
$ |
19,263,070 |
|
$ |
18,788,188 |
|
|||
Total deposits were
The deposit balances and composition as of June 30, 2024, compared to March 31, 2024, and June 30, 2023, are presented below:
| June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||
| (In thousands) (Unaudited) | |||||||||
| Non-interest-bearing demand deposits | $ |
3,161,632 |
$ |
3,289,539 |
$ |
3,561,237 |
|||
| NOW deposits |
|
2,145,580 |
|
2,331,486 |
|
2,404,470 |
|||
| Money market deposits |
|
3,182,031 |
|
3,117,557 |
|
3,033,868 |
|||
| Savings deposits |
|
1,014,287 |
|
1,039,144 |
|
1,131,602 |
|||
| Time deposits |
|
10,269,487 |
|
10,068,533 |
|
8,965,826 |
|||
| Total deposits | $ |
19,773,017 |
$ |
19,846,259 |
$ |
19,097,003 |
|||
ASSET QUALITY REVIEW
As of June 30, 2024, total non-accrual loans were
The allowance for loan losses was
The changes in non-performing assets and modifications to borrowers experiencing financial difficulties as of June 30, 2024, compared to March 31, 2024, and June 30, 2023, are presented below:
| (Dollars in thousands) (Unaudited) | June 30, 2024 | March 31, 2024 | % Change | June 30, 2023 | % Change | ||||||||||||
| Non-performing assets | |||||||||||||||||
| Accruing loans past due 90 days or more | $ |
3,443 |
|
$ |
7,560 |
|
(54 |
) |
$ |
5,968 |
|
(42 |
) |
||||
| Non-accrual loans: | |||||||||||||||||
| Construction loans |
|
22,998 |
|
|
22,998 |
|
— |
|
|
— |
|
— |
|
||||
| Commercial real estate loans |
|
60,085 |
|
|
47,465 |
|
27 |
|
|
39,558 |
|
52 |
|
||||
| Commercial loans |
|
4,075 |
|
|
14,642 |
|
(72 |
) |
|
17,574 |
|
(77 |
) |
||||
| Residential mortgage loans |
|
20,112 |
|
|
13,002 |
|
55 |
|
|
11,872 |
|
69 |
|
||||
| Total non-accrual loans | $ |
107,270 |
|
$ |
98,107 |
|
9 |
|
$ |
69,004 |
|
55 |
|
||||
| Total non-performing loans |
|
110,713 |
|
|
105,667 |
|
5 |
|
|
74,972 |
|
48 |
|
||||
| Other real estate owned |
|
18,277 |
|
|
19,441 |
|
(6 |
) |
|
4,067 |
|
349 |
|
||||
| Total non-performing assets | $ |
128,990 |
|
$ |
125,108 |
|
3 |
|
$ |
79,039 |
|
63 |
|
||||
| Accruing loan modifications to borrowers experiencing financial difficulties |
$ |
— |
|
$ |
— |
|
— |
|
$ |
— |
|
— |
|
||||
| Allowance for loan losses | $ |
153,404 |
|
$ |
154,589 |
|
(1 |
) |
$ |
155,109 |
|
(1 |
) |
||||
| Total gross loans outstanding, at period-end | $ |
19,357,524 |
|
$ |
19,429,396 |
|
(0 |
) |
$ |
18,952,794 |
|
2 |
|
||||
| Allowance for loan losses to non-performing loans, at period-end |
|
138.56 |
% |
|
146.30 |
% |
|
206.89 |
% |
||||||||
| Allowance for loan losses to gross loans, at period-end |
|
0.79 |
% |
|
0.80 |
% |
|
0.82 |
% |
||||||||
The ratio of non-performing assets to total assets was
CAPITAL ADEQUACY REVIEW
As of June 30, 2024, the Company’s Tier 1 risk-based capital ratio of
CONFERENCE CALL
Cathay General Bancorp will host a conference call to discuss its second quarter 2024 financial results this afternoon, Monday, July 22, 2024, at 3:00 p.m., Pacific Time. Analysts and investors may dial in and participate in the question-and-answer session. To access the call, please dial 1-833-816-1377 and refer to Conference Code 10190674. The presentation accompanying this call and access to the live webcast is available on our site at www.cathaygeneralbancorp.com and a replay of the webcast will be archived for one year within 24 hours after the event.
ABOUT CATHAY GENERAL BANCORP
Cathay General Bancorp is a publicly traded company (Nasdaq: CATY) and is the holding company for Cathay Bank, a
FORWARD-LOOKING STATEMENTS
Statements made in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995 regarding management’s beliefs, projections, and assumptions concerning future results and events. These forward-looking statements may include, but are not limited to, such words as “aims,” “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “hopes,” “intends,” “may,” “plans,” “projects,” “predicts,” “potential,” “possible,” “optimistic,” “seeks,” “shall,” “should,” “will,” and variations of these words and similar expressions. Forward-looking statements are based on estimates, beliefs, projections, and assumptions of management and are not guarantees of future performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. Such risks and uncertainties and other factors include, but are not limited to, adverse developments or conditions related to or arising from local, regional, national and international business, market and economic conditions and events and the impact they may have on us, our customers and our operations, assets and liabilities; possible additional provisions for loan losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to including potential future supervisory action by bank supervisory authorities; increased costs of compliance and other risks associated with changes in regulation; higher capital requirements from the implementation of the Basel III capital standards; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; our ability to generate anticipated returns on our investments and financings, including in tax-advantaged projects; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; natural disasters, public health crises and geopolitical events; general economic or business conditions in
These and other factors are further described in Cathay General Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2023 (Item 1A in particular), other reports filed with the Securities and Exchange Commission (“SEC”), and other filings Cathay General Bancorp makes with the SEC from time to time. Actual results in any future period may also vary from the past results discussed in this press release. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we undertake no obligation to update or review any forward-looking statement to reflect circumstances, developments or events occurring after the date on which the statement is made or to reflect the occurrence of unanticipated events.
CATHAY GENERAL BANCORP CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
||||||||||||||||||||
Three months ended |
|
Six months ended June 30, |
||||||||||||||||||
| (Dollars in thousands, except per share data) | June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
|
|
2024 |
|
|
|
2023 |
|
|||||||
| Financial performance | ||||||||||||||||||||
| Net interest income before provision for credit losses | $ |
165,316 |
|
$ |
168,572 |
|
$ |
181,533 |
|
$ |
333,888 |
|
$ |
373,968 |
|
|||||
| Provision for credit losses |
|
6,600 |
|
|
1,900 |
|
|
9,155 |
|
|
8,500 |
|
|
17,255 |
|
|||||
| Net interest income after provision for credit losses |
|
158,716 |
|
|
166,672 |
|
|
172,378 |
|
|
325,388 |
|
|
356,713 |
|
|||||
| Non-interest income |
|
13,215 |
|
|
6,611 |
|
|
23,110 |
|
|
19,826 |
|
|
37,354 |
|
|||||
| Non-interest expense |
|
99,352 |
|
|
93,239 |
|
|
92,821 |
|
|
192,591 |
|
|
176,007 |
|
|||||
| Income before income tax expense |
|
72,579 |
|
|
80,044 |
|
|
102,667 |
|
|
152,623 |
|
|
218,060 |
|
|||||
| Income tax expense |
|
5,750 |
|
|
8,609 |
|
|
9,447 |
|
|
14,359 |
|
|
28,833 |
|
|||||
| Net income | $ |
66,829 |
|
$ |
71,435 |
|
$ |
93,220 |
|
$ |
138,264 |
|
$ |
189,227 |
|
|||||
| Net income per common share | ||||||||||||||||||||
| Basic | $ |
0.92 |
|
$ |
0.98 |
|
$ |
1.29 |
|
$ |
1.90 |
|
$ |
2.61 |
|
|||||
| Diluted | $ |
0.92 |
|
$ |
0.98 |
|
$ |
1.28 |
|
$ |
1.90 |
|
$ |
2.60 |
|
|||||
| Cash dividends paid per common share | $ |
0.34 |
|
$ |
0.34 |
|
$ |
0.34 |
|
$ |
0.68 |
|
$ |
0.68 |
|
|||||
| Selected ratios | ||||||||||||||||||||
| Return on average assets |
|
1.15 |
% |
|
1.23 |
% |
|
1.67 |
% |
|
1.19 |
% |
|
1.71 |
% |
|||||
| Return on average total stockholders’ equity |
|
9.63 |
% |
|
10.40 |
% |
|
14.47 |
% |
|
10.01 |
% |
|
14.92 |
% |
|||||
| Efficiency ratio |
|
55.65 |
% |
|
53.22 |
% |
|
45.36 |
% |
|
54.45 |
% |
|
42.79 |
% |
|||||
| Dividend payout ratio |
|
37.06 |
% |
|
34.59 |
% |
|
26.46 |
% |
|
35.78 |
% |
|
26.04 |
% |
|||||
| Yield analysis (Fully taxable equivalent) | ||||||||||||||||||||
| Total interest-earning assets |
|
6.05 |
% |
|
6.01 |
% |
|
5.68 |
% |
|
6.03 |
% |
|
5.61 |
% |
|||||
| Total interest-bearing liabilities |
|
3.97 |
% |
|
3.87 |
% |
|
2.99 |
% |
|
3.92 |
% |
|
2.73 |
% |
|||||
| Net interest spread |
|
2.08 |
% |
|
2.14 |
% |
|
2.69 |
% |
|
2.11 |
% |
|
2.88 |
% |
|||||
| Net interest margin |
|
3.01 |
% |
|
3.05 |
% |
|
3.44 |
% |
|
3.03 |
% |
|
3.59 |
% |
|||||
| Capital ratios | June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||||||||||||
| Tier 1 risk-based capital ratio |
|
13.26 |
% |
|
13.08 |
% |
|
12.38 |
% |
|||||||||||
| Total risk-based capital ratio |
|
14.74 |
% |
|
14.55 |
% |
|
13.88 |
% |
|||||||||||
| Tier 1 leverage capital ratio |
|
10.83 |
% |
|
10.71 |
% |
|
10.45 |
% |
|||||||||||
CATHAY GENERAL BANCORP CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||||||
| (In thousands, except share and per share data) | June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||||
| Assets | ||||||||||||
| Cash and due from banks | $ |
160,389 |
|
$ |
165,284 |
|
$ |
187,886 |
|
|||
| Short-term investments and interest bearing deposits |
|
944,612 |
|
|
1,010,651 |
|
|
1,294,379 |
|
|||
| Securities available-for-sale (amortized cost of |
||||||||||||
|
1,648,731 |
|
|
1,653,167 |
|
|
1,487,321 |
|
||||
| Loans held for sale |
|
— |
|
|
23,171 |
|
|
— |
|
|||
| Loans |
|
19,357,524 |
|
|
19,429,396 |
|
|
18,952,794 |
|
|||
| Less: Allowance for loan losses |
|
(153,404 |
) |
|
(154,589 |
) |
|
(155,109 |
) |
|||
| Unamortized deferred loan fees, net |
|
(10,785 |
) |
|
(11,737 |
) |
|
(9,497 |
) |
|||
| Loans, net |
|
19,193,335 |
|
|
19,263,070 |
|
|
18,788,188 |
|
|||
| Equity securities |
|
29,949 |
|
|
31,380 |
|
|
37,674 |
|
|||
| Federal Home Loan Bank stock |
|
17,250 |
|
|
17,250 |
|
|
25,242 |
|
|||
| Other real estate owned, net |
|
18,277 |
|
|
19,441 |
|
|
4,067 |
|
|||
| Affordable housing investments and alternative energy partnerships, net |
|
309,834 |
|
|
330,912 |
|
|
323,984 |
|
|||
| Premises and equipment, net |
|
89,451 |
|
|
90,454 |
|
|
92,090 |
|
|||
| Customers’ liability on acceptances |
|
16,264 |
|
|
17,074 |
|
|
4,364 |
|
|||
| Accrued interest receivable |
|
99,434 |
|
|
97,937 |
|
|
86,211 |
|
|||
| Goodwill |
|
375,696 |
|
|
375,696 |
|
|
375,696 |
|
|||
| Other intangible assets, net |
|
3,860 |
|
|
4,131 |
|
|
4,992 |
|
|||
| Right-of-use assets- operating leases |
|
32,858 |
|
|
31,698 |
|
|
31,399 |
|
|||
| Other assets |
|
295,305 |
|
|
273,487 |
|
|
284,945 |
|
|||
| Total assets | $ |
23,235,245 |
|
$ |
23,404,803 |
|
$ |
23,028,438 |
|
|||
| Liabilities and Stockholders’ Equity | ||||||||||||
| Deposits: | ||||||||||||
| Non-interest-bearing demand deposits | $ |
3,161,632 |
|
$ |
3,289,539 |
|
$ |
3,561,237 |
|
|||
| Interest-bearing deposits: | ||||||||||||
| NOW deposits |
|
2,145,580 |
|
|
2,331,486 |
|
|
2,404,470 |
|
|||
| Money market deposits |
|
3,182,031 |
|
|
3,117,557 |
|
|
3,033,868 |
|
|||
| Savings deposits |
|
1,014,287 |
|
|
1,039,144 |
|
|
1,131,602 |
|
|||
| Time deposits |
|
10,269,487 |
|
|
10,068,533 |
|
|
8,965,826 |
|
|||
| Total deposits |
|
19,773,017 |
|
|
19,846,259 |
|
|
19,097,003 |
|
|||
| Advances from the Federal Home Loan Bank |
|
165,000 |
|
|
265,000 |
|
|
815,000 |
|
|||
| Other borrowings for affordable housing investments |
|
17,838 |
|
|
17,557 |
|
|
22,428 |
|
|||
| Long-term debt |
|
119,136 |
|
|
119,136 |
|
|
119,136 |
|
|||
| Acceptances outstanding |
|
16,264 |
|
|
17,074 |
|
|
4,364 |
|
|||
| Lease liabilities - operating leases |
|
35,355 |
|
|
34,325 |
|
|
33,870 |
|
|||
| Other liabilities |
|
315,393 |
|
|
327,380 |
|
|
333,966 |
|
|||
| Total liabilities |
|
20,442,003 |
|
|
20,626,731 |
|
|
20,425,767 |
|
|||
| Stockholders' equity |
|
2,793,242 |
|
|
2,778,072 |
|
|
2,602,671 |
|
|||
| Total liabilities and equity | $ |
23,235,245 |
|
$ |
23,404,803 |
|
$ |
23,028,438 |
|
|||
| Book value per common share | $ |
38.70 |
|
$ |
38.22 |
|
$ |
35.87 |
|
|||
| Number of common shares outstanding |
|
72,170,433 |
|
|
72,688,191 |
|
|
72,563,169 |
||||
CATHAY GENERAL BANCORP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
|||||||||||||||||||
| Three months ended | Six months ended June 30, | ||||||||||||||||||
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
|
|
2024 |
|
|
|
2023 |
|
|||||||
| (In thousands, except share and per share data) | |||||||||||||||||||
| Interest and Dividend Income | |||||||||||||||||||
| Loans receivable | $ |
303,336 |
|
$ |
302,528 |
|
$ |
273,478 |
$ |
605,864 |
|
$ |
534,657 |
|
|||||
| Investment securities |
|
15,644 |
|
|
14,951 |
|
|
12,370 |
|
30,595 |
|
|
24,134 |
|
|||||
| Federal Home Loan Bank stock |
|
499 |
|
|
431 |
|
|
298 |
|
930 |
|
|
602 |
|
|||||
| Deposits with banks |
|
13,381 |
|
|
14,732 |
|
|
13,959 |
|
28,113 |
|
|
26,098 |
|
|||||
| Total interest and dividend income |
|
332,860 |
|
|
332,642 |
|
|
300,105 |
|
665,502 |
|
|
585,491 |
|
|||||
| Interest Expense | |||||||||||||||||||
| Time deposits |
|
118,076 |
|
|
109,546 |
|
|
79,975 |
|
227,622 |
|
|
144,149 |
|
|||||
| Other deposits |
|
44,512 |
|
|
42,788 |
|
|
30,659 |
|
87,300 |
|
|
54,476 |
|
|||||
| Advances from Federal Home Loan Bank |
|
2,316 |
|
|
9,316 |
|
|
5,498 |
|
11,632 |
|
|
8,096 |
|
|||||
| Long-term debt |
|
1,863 |
|
|
1,721 |
|
|
1,552 |
|
3,584 |
|
|
2,995 |
|
|||||
| Short-term borrowings |
|
777 |
|
|
699 |
|
|
888 |
|
1,476 |
|
|
1,807 |
|
|||||
| Total interest expense |
|
167,544 |
|
|
164,070 |
|
|
118,572 |
|
331,614 |
|
|
211,523 |
|
|||||
| Net interest income before provision for credit losses |
|
165,316 |
|
|
168,572 |
|
|
181,533 |
|
333,888 |
|
|
373,968 |
|
|||||
| Provision for credit losses |
|
6,600 |
|
|
1,900 |
|
|
9,155 |
|
8,500 |
|
|
17,255 |
|
|||||
| Net interest income after provision for credit losses |
|
158,716 |
|
|
166,672 |
|
|
172,378 |
|
325,388 |
|
|
356,713 |
|
|||||
| Non-Interest Income | |||||||||||||||||||
| Net (losses)/gains from equity securities |
|
(1,430 |
) |
|
(9,027 |
) |
|
10,663 |
|
(10,457 |
) |
|
15,516 |
|
|||||
| Debt securities gains/(losses), net |
|
— |
|
|
1,107 |
|
|
— |
|
1,107 |
|
|
(3,000 |
) |
|||||
| Letters of credit commissions |
|
1,888 |
|
|
1,717 |
|
|
1,664 |
|
3,605 |
|
|
3,234 |
|
|||||
| Depository service fees |
|
1,778 |
|
|
1,550 |
|
|
1,641 |
|
3,328 |
|
|
3,473 |
|
|||||
| Wealth management fees |
|
5,678 |
|
|
5,638 |
|
|
3,639 |
|
11,316 |
|
|
7,536 |
|
|||||
| Other operating income |
|
5,301 |
|
|
5,626 |
|
|
5,503 |
|
10,927 |
|
|
10,595 |
|
|||||
| Total non-interest income |
|
13,215 |
|
|
6,611 |
|
|
23,110 |
|
19,826 |
|
|
37,354 |
|
|||||
| Non-Interest Expense | |||||||||||||||||||
| Salaries and employee benefits |
|
40,439 |
|
|
43,552 |
|
|
37,048 |
|
83,991 |
|
|
75,274 |
|
|||||
| Occupancy expense |
|
5,652 |
|
|
5,967 |
|
|
5,528 |
|
11,619 |
|
|
11,032 |
|
|||||
| Computer and equipment expense |
|
5,391 |
|
|
5,068 |
|
|
4,227 |
|
10,459 |
|
|
8,512 |
|
|||||
| Professional services expense |
|
8,212 |
|
|
6,992 |
|
|
8,900 |
|
15,204 |
|
|
16,306 |
|
|||||
| Data processing service expense |
|
3,877 |
|
|
3,929 |
|
|
3,672 |
|
7,806 |
|
|
7,396 |
|
|||||
| FDIC and State assessments |
|
3,742 |
|
|
6,089 |
|
|
3,012 |
|
9,831 |
|
|
6,167 |
|
|||||
| Marketing expense |
|
1,474 |
|
|
1,914 |
|
|
2,416 |
|
3,388 |
|
|
3,190 |
|
|||||
| Other real estate owned expense |
|
1,482 |
|
|
253 |
|
|
81 |
|
1,735 |
|
|
131 |
|
|||||
| Amortization of investments in low income housing and alternative energy partnerships |
|
23,396 |
|
|
14,432 |
|
|
21,746 |
|
37,828 |
|
|
37,340 |
|
|||||
| Amortization of core deposit intangibles |
|
259 |
|
|
339 |
|
|
559 |
|
598 |
|
|
809 |
|
|||||
| Other operating expense |
|
5,428 |
|
|
4,704 |
|
|
5,632 |
|
10,132 |
|
|
9,850 |
|
|||||
| Total non-interest expense |
|
99,352 |
|
|
93,239 |
|
|
92,821 |
|
192,591 |
|
|
176,007 |
|
|||||
| Income before income tax expense |
|
72,579 |
|
|
80,044 |
|
|
102,667 |
|
152,623 |
|
|
218,060 |
|
|||||
| Income tax expense |
|
5,750 |
|
|
8,609 |
|
|
9,447 |
|
14,359 |
|
|
28,833 |
|
|||||
| Net income | $ |
66,829 |
|
$ |
71,435 |
|
$ |
93,220 |
$ |
138,264 |
|
$ |
189,227 |
|
|||||
| Net income per common share: | |||||||||||||||||||
| Basic | $ |
0.92 |
|
$ |
0.98 |
|
$ |
1.29 |
$ |
1.90 |
|
$ |
2.61 |
|
|||||
| Diluted | $ |
0.92 |
|
$ |
0.98 |
|
$ |
1.28 |
$ |
1.90 |
|
$ |
2.60 |
|
|||||
| Cash dividends paid per common share | $ |
0.34 |
|
$ |
0.34 |
|
$ |
0.34 |
$ |
0.68 |
|
$ |
0.68 |
|
|||||
| Basic average common shares outstanding |
|
72,658,810 |
|
|
72,673,974 |
|
|
72,536,301 |
|
72,666,392 |
|
|
72,534,779 |
|
|||||
| Diluted average common shares outstanding |
|
72,825,356 |
|
|
72,971,157 |
|
|
72,753,746 |
|
72,898,256 |
|
|
72,826,301 |
|
|||||
CATHAY GENERAL BANCORP AVERAGE BALANCES – SELECTED CONSOLIDATED FINANCIAL INFORMATION (Unaudited) |
||||||||||||||
| Three months ended | ||||||||||||||
| (In thousands)(Unaudited) | June 30, 2024 |
March 31, 2024 | June 30, 2023 | |||||||||||
| Interest-earning assets: | Average Balance | Average Yield/Rate (1) |
Average Balance | Average Yield/Rate (1) |
Average Balance | Average Yield/Rate (1) |
||||||||
| Loans (1) | $ |
19,439,112 |
6.28 |
% |
$ |
19,498,954 |
6.24 |
% |
$ |
18,503,889 |
5.93 |
% |
||
| Taxable investment securities |
|
1,667,279 |
3.77 |
% |
|
1,638,317 |
3.67 |
% |
|
1,561,443 |
3.18 |
% |
||
| FHLB stock |
|
17,250 |
11.63 |
% |
|
23,006 |
7.53 |
% |
|
18,431 |
6.49 |
% |
||
| Deposits with banks |
|
997,808 |
5.39 |
% |
|
1,093,972 |
5.42 |
% |
|
1,090,019 |
5.14 |
% |
||
| Total interest-earning assets | $ |
22,121,449 |
6.05 |
% |
$ |
22,254,249 |
6.01 |
% |
$ |
21,173,782 |
5.68 |
% |
||
| Interest-bearing liabilities: | ||||||||||||||
| Interest-bearing demand deposits | $ |
2,169,045 |
2.07 |
% |
$ |
2,312,246 |
2.19 |
% |
$ |
2,325,101 |
1.57 |
% |
||
| Money market deposits |
|
3,217,813 |
3.77 |
% |
|
3,114,298 |
3.53 |
% |
|
3,047,163 |
2.55 |
% |
||
| Savings deposits |
|
1,037,771 |
1.23 |
% |
|
1,046,103 |
1.10 |
% |
|
1,076,260 |
0.81 |
% |
||
| Time deposits |
|
10,185,497 |
4.66 |
% |
|
9,720,917 |
4.53 |
% |
|
8,803,900 |
3.64 |
% |
||
| Total interest-bearing deposits | $ |
16,610,126 |
3.94 |
% |
$ |
16,193,564 |
3.78 |
% |
$ |
15,252,424 |
2.91 |
% |
||
| Other borrowed funds |
|
235,234 |
5.29 |
% |
|
730,779 |
5.51 |
% |
|
508,081 |
5.04 |
% |
||
| Long-term debt |
|
119,136 |
6.29 |
% |
|
119,136 |
5.81 |
% |
|
119,136 |
5.22 |
% |
||
| Total interest-bearing liabilities |
|
16,964,496 |
3.97 |
% |
|
17,043,479 |
3.87 |
% |
|
15,879,641 |
2.99 |
% |
||
| Non-interest-bearing demand deposits |
|
3,247,498 |
|
3,338,551 |
|
3,667,533 |
||||||||
| Total deposits and other borrowed funds | $ |
20,211,994 |
$ |
20,382,030 |
$ |
19,547,174 |
||||||||
| Total average assets | $ |
23,336,454 |
$ |
23,451,901 |
$ |
22,403,606 |
||||||||
| Total average equity | $ |
2,792,557 |
$ |
2,761,843 |
$ |
2,583,677 |
||||||||
(1) |
Yields and interest earned include net loan fees. Non-accrual loans are included in the average balance. |
| Six months ended | |||||||||
| (In thousands)(Unaudited) | June 30, 2024 | June 30, 2023 | |||||||
| Interest-earning assets: | Average Balance |
Average Yield/Rate (1) |
Average Balance |
Average Yield/Rate (1) |
|||||
| Loans (1) | $ |
19,469,033 |
6.26 |
% |
$ |
18,375,402 |
5.87 |
% |
|
| Taxable investment securities |
|
1,652,798 |
3.72 |
% |
|
1,555,177 |
3.13 |
% |
|
| FHLB stock |
|
20,128 |
9.29 |
% |
|
17,856 |
6.80 |
% |
|
| Deposits with banks |
|
1,045,890 |
5.41 |
% |
|
1,080,158 |
4.87 |
% |
|
| Total interest-earning assets | $ |
22,187,849 |
6.03 |
% |
$ |
21,028,593 |
5.61 |
% |
|
| Interest-bearing liabilities: | |||||||||
| Interest-bearing demand deposits | $ |
2,240,645 |
2.13 |
% |
$ |
2,339,735 |
1.35 |
% |
|
| Money market deposits |
|
3,166,055 |
3.66 |
% |
|
3,211,795 |
2.29 |
% |
|
| Savings deposits |
|
1,041,938 |
1.16 |
% |
|
1,007,753 |
0.48 |
% |
|
| Time deposits |
|
9,953,207 |
4.60 |
% |
|
8,516,156 |
3.41 |
% |
|
| Total interest-bearing deposits | $ |
16,401,845 |
3.86 |
% |
$ |
15,075,439 |
2.66 |
% |
|
| Other borrowed funds |
|
483,007 |
5.46 |
% |
|
415,317 |
4.81 |
% |
|
| Long-term debt |
|
119,136 |
6.05 |
% |
|
119,136 |
5.07 |
% |
|
| Total interest-bearing liabilities |
|
17,003,988 |
3.92 |
% |
|
15,609,892 |
2.73 |
% |
|
| Non-interest-bearing demand deposits |
|
3,293,024 |
|
3,812,229 |
|||||
| Total deposits and other borrowed funds | $ |
20,297,012 |
$ |
19,422,121 |
|||||
| Total average assets | $ |
23,394,177 |
$ |
22,251,861 |
|||||
| Total average equity | $ |
2,777,200 |
$ |
2,557,344 |
|||||
(1) |
Yields and interest earned include net loan fees. Non-accrual loans are included in the average balance. |
CATHAY GENERAL BANCORP
GAAP to NON-GAAP RECONCILIATION
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible equity and tangible equity to tangible assets ratio are non-GAAP financial measures. Tangible equity and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.
| As of | |||||||||||||||||||
| June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||||||||||||
| (In thousands) (Unaudited) | |||||||||||||||||||
| Stockholders' equity | (a) | $ |
2,793,242 |
|
$ |
2,778,072 |
|
$ |
2,602,671 |
|
|||||||||
| Less: Goodwill |
|
(375,696 |
) |
|
(375,696 |
) |
|
(375,696 |
) |
||||||||||
| Other intangible assets (1) |
|
(3,860 |
) |
|
(4,131 |
) |
|
(4,992 |
) |
||||||||||
| Tangible equity | (b) | $ |
2,413,686 |
|
$ |
2,398,245 |
|
$ |
2,221,983 |
|
|||||||||
| Total assets | (c) | $ |
23,235,245 |
|
$ |
23,404,803 |
|
$ |
23,028,438 |
|
|||||||||
| Less: Goodwill |
|
(375,696 |
) |
|
(375,696 |
) |
|
(375,696 |
) |
||||||||||
| Other intangible assets (1) |
|
(3,860 |
) |
|
(4,131 |
) |
|
(4,992 |
) |
||||||||||
| Tangible assets | (d) | $ |
22,855,689 |
|
$ |
23,024,976 |
|
$ |
22,647,750 |
|
|||||||||
| Number of common shares outstanding | (e) |
|
72,170,433 |
|
|
72,688,191 |
|
|
72,563,169 |
|
|||||||||
| Total stockholders' equity to total assets ratio | (a)/(c) |
|
12.02 |
% |
|
11.87 |
% |
|
11.30 |
% |
|||||||||
| Tangible equity to tangible assets ratio | (b)/(d) |
|
10.56 |
% |
|
10.42 |
% |
|
9.81 |
% |
|||||||||
| Tangible book value per share | (b)/(e) | $ |
33.44 |
|
$ |
32.99 |
|
$ |
30.62 |
|
|||||||||
| Three months ended | Six months ended | ||||||||||||||||||
| June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||||||||||
| (In thousands) (Unaudited) | |||||||||||||||||||
| Net Income | $ |
66,829 |
|
$ |
71,435 |
|
$ |
93,220 |
|
$ |
138,264 |
|
$ |
189,227 |
|
||||
| Add: Amortization of other intangibles (1) |
|
270 |
|
|
330 |
|
|
570 |
|
|
600 |
|
|
762 |
|
||||
| Tax effect of amortization adjustments (2) |
|
(80 |
) |
|
(98 |
) |
|
(169 |
) |
|
(178 |
) |
|
(226 |
) |
||||
| Tangible net income | (f) | $ |
67,019 |
|
$ |
71,667 |
|
$ |
93,621 |
|
$ |
138,686 |
|
$ |
189,763 |
|
|||
| Return on tangible common equity (3) | (f)/(b) |
|
11.11 |
% |
|
11.95 |
% |
|
16.85 |
% |
|
11.49 |
% |
|
17.08 |
% |
|||
(1) |
Includes core deposit intangibles and mortgage servicing |
|
(2) |
Applied the statutory rate of |
|
(3) |
Annualized |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240722138417/en/
Heng W. Chen
(626) 279-3652
Source: Cathay General Bancorp
FAQ
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