LOS ANGELES, July 20, 2011 /PRNewswire/ -- Cathay General
Bancorp (the "Company") (NASDAQ: CATY), the holding company for
Cathay Bank (the "Bank"), today announced results for the second
quarter of 2011.
FINANCIAL PERFORMANCE
|
Second
Quarter
|
|
|
2011
|
|
2010
|
|
Net income
|
$24.3 million
|
|
$1.9 million
|
|
Net income/(loss) available to
common stockholders
|
$20.2 million
|
|
($2.2) million
|
|
Basic earnings/(loss) per common
share
|
$0.26
|
|
($0.03)
|
|
Diluted earnings/(loss) per
common share
|
$0.26
|
|
($0.03)
|
|
Return on average
assets
|
0.91%
|
|
0.07%
|
|
Return on average total
stockholders' equity
|
6.64%
|
|
0.54%
|
|
Efficiency ratio
|
50.03%
|
|
49.16%
|
|
|
|
|
|
SECOND QUARTER HIGHLIGHTS
- Improved profitability – Second quarter net income was
$24.3 million compared to net income
of $22.1 million in the first quarter
of 2011 and net income of $1.9
million in the same quarter a year ago.
- Strong growth in commercial loans – Commercial loans increased
$105.5 million during the second
quarter of 2011 and $196.0 million
during the first half of 2011.
- Increase in net interest margin – The net interest margin
increased to 3.19% for the second quarter of 2011, from 3.06% for
the first quarter of 2011, and from 2.73% for the second quarter a
year ago.
"We are pleased to see continuing improvement in profitability
compared to prior quarters. Commercial loan growth of 27%
annualized was especially strong this quarter as we continued to
decrease our exposure to commercial real estate loans," commented
Dunson Cheng, Chairman of the Board,
Chief Executive Officer, and President of the Company.
"Our net interest margin increased to 3.19% during the second
quarter due mainly to a decrease in wholesale borrowings. We expect
continued steady improvement in the net interest margin during the
second half as well," said Peter Wu,
Executive Vice Chairman and Chief Operating Officer.
"We continue to make steady progress in reducing the overall
level of credit risk in our loan portfolio and completed sales of
$41 million of nonaccrual loans
during the second quarter. We are hopeful that our continued growth
in commercial and residential mortgage loans will increase our
profitability back to our historical levels over the course of
time," concluded Dunson Cheng.
INCOME STATEMENT REVIEW
Net income available to common stockholders for the quarter
ended June 30, 2011, was $20.2 million, an increase of $22.4 million compared to a net loss available to
common stockholders of $2.2 million
for the same quarter a year ago. Diluted earnings per share
available to common stockholders for the quarter ended June 30, 2011, was $0.26 compared to a loss per share of
$0.03 for the same quarter a year ago
due primarily to decreases in the provision for credit losses,
decreases in net losses from interest rate swaps, decreases in FDIC
assessments, and increases in net interest income which were
partially offset by prepayment penalties on the repayment of
Federal Home Loan Bank ("FHLB") advances and prepayment penalties
on the prepayment of securities sold under an agreement to
repurchase and increases in incentive compensation accruals.
Return on average stockholders' equity was 6.64% and return on
average assets was 0.91% for the quarter ended June 30, 2011, compared to a return on average
stockholders' equity of 0.54% and a return on average assets of
0.07% for the same quarter a year ago.
Net interest income before provision for credit
losses
Net interest income before provision for credit losses increased
$3.7 million, or 5.0% to $78.3 million during the second quarter of 2011
compared to $74.6 million during the
same quarter a year ago. The increase was due primarily to
the decrease in interest expense paid on time certificates of
deposit and the prepayment of FHLB advances and securities sold
under agreement to repurchase.
The net interest margin, on a fully taxable-equivalent basis,
was 3.19% for the second quarter of 2011, an increase of 13 basis
points from 3.06% for the first quarter of 2011 and an increase of
46 basis points from 2.73% for the second quarter of 2010.
The decrease in the rate on interest bearing deposits and the
prepayment of FHLB advances and decreases in securities sold under
agreement to repurchase contributed to the increase in the net
interest margin from the same quarter a year ago.
For the second quarter of 2011, the yield on average
interest-earning assets was 4.65%, on a fully taxable-equivalent
basis, the cost of funds on average interest-bearing liabilities
equaled 1.77%, and the cost of interest bearing deposits was 1.05%.
In comparison, for the second quarter of 2010, the yield on
average interest-earning assets was 4.55%, on a fully
taxable-equivalent basis, cost of funds on average interest-bearing
liabilities equaled 2.14%, and the cost of interest bearing
deposits was 1.33%. The interest spread, defined as the difference
between the yield on average interest-earning assets and the cost
of funds on average interest-bearing liabilities, increased 47
basis points to 2.88% for the second quarter ended June 30, 2011, from 2.41% for the same quarter a
year ago, primarily due to the reasons discussed above.
The cost of deposits, including demand deposits, decreased 4
basis points to 0.91% in the second quarter of 2011 compared to
0.95% in the first quarter of 2011 and decreased 27 basis points
from 1.18% in the second quarter of 2010 due primarily to the
decrease in the rates paid on certificates of deposit upon renewal
and on money market accounts.
Provision for credit losses
The provision for credit losses was $10.0
million for the second quarter of 2011 compared to
$6.0 million for the first quarter of
2011 and compared to $45.0 million in
the second quarter of 2010. The provision for credit losses
was based on the review of the adequacy of the allowance for loan
losses at June 30, 2011. The
provision for credit losses represents the charge against current
earnings that is determined by management, through a credit review
process, as the amount needed to establish an allowance that
management believes to be sufficient to absorb credit losses
inherent in the Company's loan portfolio, including unfunded
commitments. The following table summarizes the charge-offs
and recoveries for the periods as indicated:
|
For the
three months ended June 30,
|
|
For the six
months ended June 30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
(In
thousands)
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
Commercial
loans
|
$ 8,618
|
|
$ 2,267
|
|
$ 9,996
|
|
$ 11,913
|
|
Construction loans-
residential
|
4,541
|
|
2,412
|
|
7,426
|
|
10,809
|
|
Construction loans-
other
|
66
|
|
1,324
|
|
3,429
|
|
18,390
|
|
Real estate loans
(1)
|
13,614
|
|
13,913
|
|
18,559
|
|
38,070
|
|
Real estate- land
loans
|
82
|
|
7,931
|
|
486
|
|
12,682
|
|
Total
charge-offs
|
26,921
|
|
27,847
|
|
39,896
|
|
91,864
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
Commercial
loans
|
280
|
|
1,791
|
|
1,055
|
|
2,369
|
|
Construction loans-
residential
|
3,001
|
|
2,426
|
|
3,661
|
|
2,496
|
|
Construction loans-
other
|
-
|
|
339
|
|
227
|
|
417
|
|
Real estate loans
(1)
|
1,295
|
|
720
|
|
2,239
|
|
922
|
|
Real estate- land
loans
|
588
|
|
12
|
|
593
|
|
42
|
|
Installment and other
loans
|
-
|
|
-
|
|
-
|
|
2
|
|
Total
recoveries
|
5,164
|
|
5,288
|
|
7,775
|
|
6,248
|
|
Net Charge-offs
|
$ 21,757
|
|
$ 22,559
|
|
$ 32,121
|
|
$ 85,616
|
|
|
|
|
|
|
|
|
|
|
(1) Real estate loans includes
commercial mortgage 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), gains (losses) on loan sales, wire transfer fees, and
other sources of fee income, was $12.5
million for the second quarter of 2011, an increase of
$5.1 million, or 68.0%, compared to
non-interest income of $7.4 million
for the second quarter of 2010. The increase in non-interest income
in the second quarter of 2011 was primarily due to a decrease of
$2.5 million in loss from interest
rate swaps, increases of $1.1 million
from gains on sale of loans, $662,000
in commissions from foreign exchange transactions, $575,000 from wealth management commissions, and
$327,000 in letters of credit
commissions compared to the second quarter of 2010.
Non-interest expense
Non-interest expense increased $5.1
million, or 12.6%, to $45.4
million in the second quarter of 2011 compared to
$40.3 million in the same quarter a
year ago. The efficiency ratio was 50.03% in the second
quarter of 2011 compared to 49.16% for the same quarter a year ago
due primarily to increases in salaries and incentive compensation
expense and higher prepayment penalties from prepayment of FHLB
advance and prepayment of repurchase agreements offset by decreased
losses from interest rate swaps.
Prepayment penalties from prepaying FHLB advances and a
repurchase agreement were $5.2
million in the second quarter of 2011 compared to none in
the same quarter a year ago. The Company prepaid a repurchase
agreement of $50.0 million and a FHLB
advance of $100.0 million during the
second quarter of 2011. Salaries and employee benefits
increased $2.9 million to
$17.7 million in the second quarter
of 2011 compared to $14.8 million in
the same quarter a year ago primarily due to increases in incentive
compensation and the hiring of new employees. OREO expense
increased $664,000 to $2.3 million in the second quarter of 2011
compared to $1.6 million in the
second quarter of 2010 primarily due to higher gains on transfer to
OREO in 2010. Offsetting the above increases was a decrease
of $2.9 million in FDIC assessments
primarily due to the change in the FDIC insurance assessment
methodology that became effective on April
1, 2011.
Income taxes
The effective tax rate for the second quarter of 2011 was 31.0%
compared to a benefit in the second quarter of 2010. The
effective tax rate includes the impact of the utilization of low
income housing tax credits and recognition of other tax credits
during the second quarter of 2011. The effective tax rate for
the remainder of 2011 is expected to be 34.1% based on the
forecasted net income for the full year.
BALANCE SHEET REVIEW
Total assets were $10.5 billion at
June 30, 2011, a decrease of
$266.5 million, or 2.5%, from
$10.8 billion at December 31, 2010, primarily due to the decrease
of $387.4 million in investment
securities offset by the increase of $145.0
million in securities purchased under agreements to
resell.
Gross loans, excluding loans held for sale, were $6.92 billion at June 30,
2011, an increase of $53.5
million, or 0.8%, from $6.87
billion at December 31, 2010,
primarily due to an increase of $196.0
million, or 13.6%, in commercial loans and an increase of
$88.8 million, or 10.4%, in
residential mortgage loans offset by a decrease of $101.0 million, or 24.6%, in construction loans,
and a decrease of $135.5 million, or
3.4%, in commercial real estate loans. The changes in loan
composition from December 31, 2010,
are presented below:
Type of Loans:
|
June 30,
2011
|
|
December 31,
2010
|
|
%
Change
|
|
|
(Dollars in
thousands)
|
|
|
|
Commercial
|
$ 1,637,132
|
|
$
1,441,167
|
|
14
|
|
Residential mortgage
|
941,229
|
|
852,454
|
|
10
|
|
Commercial mortgage
|
3,804,525
|
|
3,940,061
|
|
(3)
|
|
Equity lines
|
214,215
|
|
208,876
|
|
3
|
|
Real estate
construction
|
308,939
|
|
409,986
|
|
(25)
|
|
Installment &
other
|
16,117
|
|
16,077
|
|
0
|
|
|
|
|
|
|
|
|
Gross loans and
leases
|
$ 6,922,157
|
|
$
6,868,621
|
|
1
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
(229,900)
|
|
(245,231)
|
|
(6)
|
|
Unamortized deferred loan
fees
|
(7,620)
|
|
(7,621)
|
|
(0)
|
|
|
|
|
|
|
|
|
Total loans and leases,
net
|
$ 6,684,637
|
|
$
6,615,769
|
|
1
|
|
Loans held for sale
|
$
1,637
|
|
$
2,873
|
|
(43)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits were $7.1 billion
at June 30, 2011, an increase of
$117.3 million, or 1.7%, from
$7.0 billion at December 31, 2010, primarily due to a
$223.4 million, or 7.0%, increase in
time deposits of $100,000 or more, a
$64.5 million, or 6.9%, increase in
non-interest-bearing demand deposits offset by a $40.3 million, or 4.1%, decrease in money market
deposits and a $126.1 million, or
11.7%, decrease in time deposits under $100,000. The changes in deposit
composition from December 31, 2010,
are presented below:
Deposits
|
June 30,
2011
|
|
December 31,
2010
|
|
%
Change
|
|
|
(Dollars in
thousands)
|
|
|
|
Non-interest-bearing
demand
|
$
994,765
|
|
$
930,300
|
|
7
|
|
NOW
|
417,301
|
|
418,703
|
|
(0)
|
|
Money market
|
942,334
|
|
982,617
|
|
(4)
|
|
Savings
|
382,478
|
|
385,245
|
|
(1)
|
|
Time deposits under
$100,000
|
955,121
|
|
1,081,266
|
|
(12)
|
|
Time deposits of $100,000 or
more
|
3,417,150
|
|
3,193,715
|
|
7
|
|
Total deposits
|
$ 7,109,149
|
|
$
6,991,846
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY REVIEW
At June 30, 2011, total
non-accrual portfolio loans, excluding non-accrual loans held for
sale, were $256.4 million, an
increase of $14.1 million, or 5.8%,
from $242.3 million at December 31, 2010, and a decrease of $57.0 million, or 18.2%, from $313.4 million at June 30,
2010. A summary of non-accrual loans, excluding
non-accrual loans held for sale, and the related allowance and
charge-offs as of June 30, 2011, is
shown below:
|
|
|
|
At June 30,
2011
|
|
|
Balance
|
|
Allowance
|
Cumulative
Charge-off
|
Cumulative
Charge-off as a
% of Unpaid
Balance
|
|
|
(Dollars in
thousands)
|
|
Non-accrual loans without
charge-off
|
|
|
|
|
|
|
Commercial real
estate
|
$
34,366
|
|
$
1,740
|
$
-
|
0.0%
|
|
Commercial
|
10,656
|
|
1,151
|
-
|
0.0%
|
|
Construction-
residential
|
16,637
|
|
-
|
-
|
0.0%
|
|
Construction-
non-residential
|
7,502
|
|
-
|
-
|
0.0%
|
|
Residential
mortgage
|
12,255
|
|
775
|
-
|
0.0%
|
|
Land
|
5,987
|
|
107
|
-
|
0.0%
|
|
Subtotal
|
$
87,403
|
|
$
3,773
|
$
-
|
0.0%
|
|
Non-accrual loans with
charge-off
|
|
|
|
|
|
|
Commercial real
estate
|
$
87,726
|
|
$
133
|
$
33,152
|
27.4%
|
|
Commercial
|
23,694
|
|
1,217
|
20,427
|
46.3%
|
|
Construction-
residential
|
24,393
|
|
7,140
|
9,144
|
27.3%
|
|
Construction-
non-residential
|
21,917
|
|
-
|
25,972
|
54.2%
|
|
Residential
mortgage
|
3,064
|
|
253
|
1,242
|
28.8%
|
|
Land
|
8,222
|
|
-
|
5,672
|
40.8%
|
|
Subtotal
|
$
169,016
|
|
$
8,743
|
$
95,609
|
36.1%
|
|
Total
|
$
256,419
|
|
$
12,516
|
$
95,609
|
27.2%
|
|
|
|
|
|
|
|
The allowance for loan losses was $229.9
million and the allowance for off-balance sheet unfunded
credit commitments was $1.5 million
at June 30, 2011, and represented the
amount that the Company believes to be sufficient to absorb credit
losses inherent in the Company's loan portfolio including unfunded
commitments. The allowance for credit losses, the sum of
allowance for loan losses and for off-balance sheet unfunded credit
commitments, was $231.4 million at
June 30, 2011, compared to
$247.6 million at December 31, 2010, a decrease of $16.2 million, or 6.5%. The allowance for
credit losses represented 3.34% of period-end gross loans,
excluding loans held for sale, and 90.3% of non-performing
portfolio loans at June 30, 2011.
The comparable ratios were 3.60% of period-end gross loans
and 100.1% of non-performing loans at December 31, 2010. Results of the changes
from December 31, 2010, and
June 30, 2010, to June 30, 2011, of the Company's non-performing
assets and troubled debt restructurings are highlighted below:
(Dollars in
thousands)
|
June 30,
2011
|
|
December 31,
2010
|
|
% Change
|
|
June 30,
2010
|
|
% Change
|
|
Non-performing
assets
|
|
|
|
|
|
|
|
|
|
|
Accruing loans past due 90 days
or more
|
$
-
|
|
$
5,006
|
|
(100)
|
|
$
887
|
|
(100)
|
|
Non-accrual loans:
|
|
|
|
|
|
|
|
|
|
|
Construction-
residential
|
41,030
|
|
25,251
|
|
62
|
|
48,255
|
|
(15)
|
|
Construction-
non-residential
|
29,419
|
|
28,686
|
|
3
|
|
40,570
|
|
(27)
|
|
Land
|
14,209
|
|
21,923
|
|
(35)
|
|
28,185
|
|
(50)
|
|
Commercial real estate,
excluding land (3)
|
122,092
|
|
122,672
|
|
(0)
|
|
156,814
|
|
(22)
|
|
Commercial
|
34,350
|
|
31,499
|
|
9
|
|
29,222
|
|
18
|
|
Residential
mortgage
|
15,319
|
|
12,288
|
|
25
|
|
10,324
|
|
48
|
|
Total non-accrual
loans:
|
$
256,419
|
|
$
242,319
|
|
6
|
|
$
313,370
|
|
(18)
|
|
Total non-performing
loans
|
256,419
|
|
247,325
|
|
4
|
|
314,257
|
|
(18)
|
|
Other real estate
owned
|
74,233
|
|
77,740
|
|
(5)
|
|
101,053
|
|
(27)
|
|
Total non-performing
assets
|
$
330,652
|
|
$
325,065
|
|
2
|
|
$
415,310
|
|
(20)
|
|
Accruing troubled
debt restructurings (TDRs)
|
$
116,327
|
|
$
136,800
|
|
(15)
|
|
$
58,017
|
|
101
|
|
Non-accrual TDRs (included in
non-accrual loans above)
|
$
38,230
|
|
$
28,146
|
|
36
|
|
$
65,638
|
|
(42)
|
|
Non-accrual loans held for
sale
|
$
1,637
|
|
$
2,873
|
|
(43)
|
|
$
6,514
|
|
(75)
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
$
229,900
|
|
$
245,231
|
|
(6)
|
|
$
255,650
|
|
(10)
|
|
Allowance for off-balance sheet
credit commitments
|
1,547
|
|
2,337
|
|
(34)
|
|
4,830
|
|
(68)
|
|
Allowance for credit
losses
|
$
231,447
|
|
$
247,568
|
|
(7)
|
|
$
260,480
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gross loans outstanding,
at period-end (1)
|
$6,922,157
|
|
$6,868,621
|
|
1
|
|
$6,853,624
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to
non-performing loans, at period-end (2)
|
89.66%
|
|
99.15%
|
|
|
|
81.35%
|
|
|
|
Allowance for loan losses to
gross loans, at period-end (1)
|
3.32%
|
|
3.57%
|
|
|
|
3.73%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses to
non-performing loans, at period-end (2)
|
90.26%
|
|
100.10%
|
|
|
|
82.89%
|
|
|
|
Allowance for credit losses to
gross loans, at period-end (1)
|
3.34%
|
|
3.60%
|
|
|
|
3.80%
|
|
|
|
(1) Excludes loans held for sale
at period-end.
|
|
(2) Excludes non-accrual loans
held for sale at period-end.
|
|
(3) June 30, 2011 totals
included two loans totaling $13.7 million which became OREO on July
5 and a loan for which a $7.4 million payment was in transit on
June 30, 2011.
|
|
|
|
|
|
|
|
|
|
|
|
At June 30, 2011, total
residential construction loans were $88.8
million of which $2.0 million
were in Riverside county in
California. At June 30, 2011, total land loans were $110.2 million, of which $17.5 million were in San Bernardino, Riverside, and Imperial counties in California, $714,000 were in the Central Valley of
California, and $1.7 million were in the state of Nevada.
Troubled debt restructurings on non-accrual status totaled
$38.2 million at June 30, 2011. Troubled debt restructurings on
accrual status totaled $116.3 million
at June 30, 2011. These loans
are classified as troubled debt restructurings as a result of
granting a concession to borrowers who are experiencing financial
difficulties. The concessions may be granted in various
forms, including change in the stated interest rate, reduction in
the loan balance or accrued interest, or extension of the maturity
date that causes a significant delay in payment. Although
these loan modifications are considered troubled debt
restructurings under Accounting Standard Codification 310-40 and
Accounting Standard Update 2011-02, these loans have been
performing under the restructured terms and have demonstrated
sustained performance under the modified terms. The sustained
performance considered by management includes the periods prior to
the modification if the prior performance met or exceeded the
modified terms as well as cash paid to set up interest
reserves.
Non-performing assets, excluding non-accrual loans held for
sale, to total assets was 3.1% at June 30,
2011, compared to 3.0% at December
31, 2010, and compared to 3.6% at June 30, 2010. Total non-performing
portfolio assets increased $5.6
million, or 1.7%, to $330.7
million at June 30, 2011,
compared to $325.1 million at
December 31, 2010, primarily due to a
$14.1 million increase in non-accrual
loans offset by a $3.5 million
decrease in OREO and by a $5.0
million decrease in accruing loans past due 90 days or more.
Total non-performing portfolio assets decreased $84.6 million, or 20.4%, to $330.7 million at June 30,
2011, compared to $415.3
million at June 30, 2010,
primarily due to a $57.0 million
decrease in non-accrual loans, a $26.8
million decrease in OREO, and a $0.9
million decrease in accruing loans past due 90 days or
more.
CAPITAL ADEQUACY REVIEW
At June 30, 2011, the Company's
Tier 1 risk-based capital ratio of 15.75%, total risk-based capital
ratio of 17.67%, and Tier 1 leverage capital ratio of 12.19%,
continue to place the Company in the "well capitalized" category
for regulatory purposes, which is defined as institutions with a
Tier 1 risk-based capital ratio equal to or greater than 6%, a
total risk-based capital ratio equal to or greater than 10%, and a
Tier 1 leverage capital ratio equal to or greater than 5%. At
December 31, 2010, the Company's Tier
1 risk-based capital ratio was 15.37%, total risk-based capital
ratio was 17.27%, and Tier 1 leverage capital ratio was 11.44%.
YEAR-TO-DATE REVIEW
Net income attributable to common stockholders was $38.2 million, an increase of $70.2 million, or 219%, compared to net loss
attributable to common stockholders of $32.0
million for the same period a year ago due primarily to
decreases in the provision for loan losses, decreases in net losses
from interest rate swaps, decreases in FDIC assessments and
increases in net interest income which were partially offset by
prepayment penalties on the repayment of FHLB advances and the
prepayment of securities sold under an agreement to repurchase and
increases in salaries and incentive compensation expense.
Diluted earnings per share was $0.49 compared to $0.42 loss per share for the same period a year
ago. The net interest margin for the six months ended
June 30, 2011, increased 40 basis
points to 3.13% compared to 2.73% for the same period a year
ago.
Return on average stockholders' equity was 6.42% and return on
average assets was 0.87% for the six months ended June 30, 2011, compared to a negative return on
average stockholders' equity of 3.42% and a negative return on
average assets of 0.41% for the same period of 2010. The
efficiency ratio for the six months ended June 30, 2011 was 52.21% compared to 52.30% for
the same period a year ago.
CONFERENCE CALL
Cathay General Bancorp will host a conference call this
afternoon to discuss its second quarter 2011 financial results. The
call will begin 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
1-800-901-5213 and enter Participant Passcode 60095560. A
listen-only live Webcast of the call will be available at
www.cathaygeneralbancorp.com and a recorded version is scheduled to
be available for replay for 12 months after the call.
ABOUT CATHAY GENERAL BANCORP
Cathay General Bancorp is the holding company for Cathay Bank, a
California state-chartered bank.
Founded in 1962, Cathay Bank offers a wide range of financial
services. Cathay Bank currently operates 31 branches in
California, eight branches in
New York State, one in
Massachusetts, two in Texas, three in Washington State, three in the Chicago, Illinois area, one in New Jersey, one in Hong Kong, and a representative office in
Shanghai and in Taipei. Cathay Bank's website is found at
http://www.cathaybank.com. Cathay General Bancorp's website is
found at http://www.cathaygeneralbancorp.com. Information set
forth on such websites is not incorporated into this press
release.
FORWARD-LOOKING STATEMENTS AND OTHER NOTICES
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," "could,"
"estimates," "expects," "hopes," "intends," "may," "plans,"
"projects," "seeks," "shall," "should," "will," "predicts,"
"potential," "continue," 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: U.S.
and international economic and market conditions; market disruption
and volatility; current and potential future supervisory action by
bank supervisory authorities and changes in laws and regulations,
or their interpretations; restrictions on dividends and other
distributions by laws and regulations and by our regulators and our
capital structure; credit losses and deterioration in asset or
credit quality; availability of capital; potential goodwill
impairment; liquidity risk; fluctuations in interest rates; past
and future acquisitions; inflation and deflation; success of
expansion, if any, of our business in new markets; the soundness of
other financial institutions; real estate market conditions; our
ability to compete with competitors; increased costs of compliance
and other risks associated with changes in regulations and the
current regulatory environment, including the requirements of the
Dodd-Frank Wall Street Reform and Consumer Protection Act (the
"Dodd-Frank Act"), the potential for substantial changes in the
legal, regulatory, and enforcement framework and oversight
applicable to financial institutions in reaction to adverse
financial market events of recent years, including changes pursuant
to the Dodd-Frank Act; the short term and long term impact of the
Basel II and the proposed Basel III capital standards of the Basel
Committee; our ability to retain key personnel; successful
management of reputational risk; natural disasters and geopolitical
events; general economic or business conditions in California, Asia, and other regions where Cathay Bank has
operations; restrictions on compensation paid to our executives as
a result of our participation in the TARP Capital Purchase
Program; our ability to adapt our information technology systems;
and changes in accounting standards or tax laws and
regulations.
These and other factors are further described in Cathay General
Bancorp's Annual Report on Form 10-K for the year ended
December 31, 2010 (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,
which speak to the date of this press release. Cathay General
Bancorp has no intention and undertakes no obligation to update any
forward-looking statement or to publicly announce any revision of
any forward-looking statement to reflect future developments or
events, except as required by law.
Cathay General Bancorp's filings with the SEC are available at
the website maintained by the SEC at http://www.sec.gov, or by
request directed to Cathay General Bancorp, 9650 Flair Drive,
El Monte, California 91731,
Attention: Investor Relations (626) 279-3286.
CATHAY GENERAL
BANCORP
CONSOLIDATED
FINANCIAL HIGHLIGHTS
(Unaudited)
|
|
|
Three months
ended June 30,
|
|
Six months
ended June 30,
|
|
(Dollars in thousands, except
per share data)
|
2011
|
|
2010
|
|
%
Change
|
|
2011
|
|
2010
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
PERFORMANCE
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income before
provision for credit losses
|
$ 78,315
|
|
$ 74,607
|
|
5
|
|
$
153,420
|
|
$
149,328
|
3
|
|
Provision for credit
losses
|
10,000
|
|
45,000
|
|
(78)
|
|
16,000
|
|
129,000
|
(88)
|
|
Net interest income after
provision for credit losses
|
68,315
|
|
29,607
|
|
131
|
|
137,420
|
|
20,328
|
576
|
|
Non-interest
income
|
12,453
|
|
7,412
|
|
68
|
|
25,079
|
|
12,196
|
106
|
|
Non-interest
expense
|
45,410
|
|
40,319
|
|
13
|
|
93,193
|
|
84,482
|
10
|
|
Income/(loss) before
income tax expense
|
35,358
|
|
(3,300)
|
|
1,171
|
|
69,306
|
|
(51,958)
|
233
|
|
Income tax
expense/(benefit)
|
10,906
|
|
(5,373)
|
|
303
|
|
22,640
|
|
(28,441)
|
180
|
|
Net
income/(loss)
|
24,452
|
|
2,073
|
|
1,080
|
|
46,666
|
|
(23,517)
|
298
|
|
Net income
attributable to noncontrolling interest
|
(150)
|
|
(150)
|
|
-
|
|
(301)
|
|
(301)
|
-
|
|
Net income/(loss)
attributable to Cathay General Bancorp
|
$ 24,302
|
|
$ 1,923
|
|
1,164
|
|
$
46,365
|
|
$
(23,818)
|
295
|
|
Dividends on preferred
stock
|
(4,107)
|
|
(4,096)
|
|
0
|
|
(8,212)
|
|
(8,188)
|
0
|
|
Net income/(loss)
attributable to common stockholders
|
$ 20,195
|
|
$ (2,173)
|
|
1,029
|
|
$
38,153
|
|
$
(32,006)
|
219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
attributable to common stockholders per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.26
|
|
$
(0.03)
|
|
967
|
|
$
0.49
|
|
$
(0.42)
|
217
|
|
Diluted
|
$
0.26
|
|
$
(0.03)
|
|
967
|
|
$
0.49
|
|
$
(0.42)
|
217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid per common
share
|
$
0.01
|
|
$
0.01
|
|
$
-
|
|
$
0.02
|
|
$
0.02
|
$ -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
0.91%
|
|
0.07%
|
|
1,200
|
|
0.87%
|
|
-0.41%
|
312
|
|
Return on average total
stockholders’ equity
|
6.64%
|
|
0.54%
|
|
1,130
|
|
6.42%
|
|
-3.42%
|
288
|
|
Efficiency
ratio
|
50.03%
|
|
49.16%
|
|
2
|
|
52.21%
|
|
52.30%
|
(0)
|
|
Dividend payout
ratio
|
3.24%
|
|
40.82%
|
|
|
|
3.39%
|
|
n/m
|
*
|
|
* n/m, not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELD ANALYSIS (Fully taxable
equivalent)
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning
assets
|
4.65%
|
|
4.55%
|
|
2
|
|
4.64%
|
|
4.58%
|
1
|
|
Total interest-bearing
liabilities
|
1.77%
|
|
2.14%
|
|
(17)
|
|
1.83%
|
|
2.17%
|
(16)
|
|
Net interest
spread
|
2.88%
|
|
2.41%
|
|
20
|
|
2.81%
|
|
2.41%
|
17
|
|
Net interest
margin
|
3.19%
|
|
2.73%
|
|
17
|
|
3.13%
|
|
2.73%
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS
|
June 30,
2011
|
|
June 30,
2010
|
|
December 31,
2010
|
|
Well
Capitalized
Requirements
|
|
Minimum
Regulatory
Requirements
|
|
Tier 1 risk-based capital
ratio
|
15.75%
|
|
14.89%
|
|
15.37%
|
|
6.0%
|
|
4.0%
|
|
Total risk-based capital
ratio
|
17.67%
|
|
16.80%
|
|
17.27%
|
|
10.0%
|
|
8.0%
|
|
Tier 1 leverage capital
ratio
|
12.19%
|
|
10.30%
|
|
11.44%
|
|
5.0%
|
|
4.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CATHAY
GENERAL BANCORP
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
(In thousands, except share and
per share data)
|
June 30,
2011
|
|
December 31,
2010
|
|
%
change
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Cash and due from
banks
|
$
128,584
|
|
$
87,347
|
|
47
|
|
Short-term investments and
interest bearing deposits
|
96,061
|
|
206,321
|
|
(53)
|
|
Securities purchased under
agreements to resell
|
255,000
|
|
110,000
|
|
132
|
|
Securities held-to-maturity
(market value of $1,286,976 in 2011
|
|
|
|
|
|
|
and $837,359 in
2010)
|
1,271,767
|
|
840,102
|
|
51
|
|
Securities available-for-sale
(amortized cost of $1,176,942 in 2011
|
|
|
|
|
|
|
and $2,005,330 in
2010)
|
1,184,504
|
|
2,003,567
|
|
(41)
|
|
Trading securities
|
4,599
|
|
3,818
|
|
20
|
|
Loans held for sale
|
1,637
|
|
2,873
|
|
(43)
|
|
Loans
|
6,922,157
|
|
6,868,621
|
|
1
|
|
Less: Allowance for
loan losses
|
(229,900)
|
|
(245,231)
|
|
(6)
|
|
Unamortized deferred loan
fees, net
|
(7,620)
|
|
(7,621)
|
|
(0)
|
|
Loans, net
|
6,684,637
|
|
6,615,769
|
|
1
|
|
Federal Home Loan Bank
stock
|
58,759
|
|
63,873
|
|
(8)
|
|
Other real estate owned,
net
|
74,233
|
|
77,740
|
|
(5)
|
|
Affordable housing investments,
net
|
82,993
|
|
88,472
|
|
(6)
|
|
Premises and equipment,
net
|
107,834
|
|
109,456
|
|
(1)
|
|
Customers’ liability on
acceptances
|
17,906
|
|
14,014
|
|
28
|
|
Accrued interest
receivable
|
31,931
|
|
35,382
|
|
(10)
|
|
Goodwill
|
316,340
|
|
316,340
|
|
-
|
|
Other intangible assets,
net
|
14,314
|
|
17,044
|
|
(16)
|
|
Other assets
|
204,431
|
|
209,868
|
|
(3)
|
|
|
|
|
|
|
|
|
Total assets
|
$
10,535,530
|
|
$
10,801,986
|
|
(2)
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’
Equity
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
Non-interest-bearing
demand deposits
|
$
994,765
|
|
$
930,300
|
|
7
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
NOW deposits
|
417,301
|
|
418,703
|
|
(0)
|
|
Money market
deposits
|
942,334
|
|
982,617
|
|
(4)
|
|
Savings
deposits
|
382,478
|
|
385,245
|
|
(1)
|
|
Time deposits under
$100,000
|
955,121
|
|
1,081,266
|
|
(12)
|
|
Time deposits of $100,000
or more
|
3,417,150
|
|
3,193,715
|
|
7
|
|
Total deposits
|
7,109,149
|
|
6,991,846
|
|
2
|
|
|
|
|
|
|
|
|
Securities sold under agreements
to repurchase
|
1,411,500
|
|
1,561,000
|
|
(10)
|
|
Advances from the Federal Home
Loan Bank
|
250,000
|
|
550,000
|
|
(55)
|
|
Other borrowings from financial
institutions
|
19,396
|
|
8,465
|
|
129
|
|
Other borrowings for affordable
housing investments
|
19,040
|
|
19,111
|
|
(0)
|
|
Long-term debt
|
171,136
|
|
171,136
|
|
-
|
|
Acceptances
outstanding
|
17,906
|
|
14,014
|
|
28
|
|
Other liabilities
|
55,536
|
|
50,309
|
|
10
|
|
Total
liabilities
|
9,053,663
|
|
9,365,881
|
|
(3)
|
|
Commitments and
contingencies
|
-
|
|
-
|
|
-
|
|
Stockholders’ Equity
|
|
|
|
|
|
|
Preferred stock,
10,000,000 shares authorized, 258,000 issued
|
|
|
|
|
|
|
and outstanding in 2011
and 2010
|
249,217
|
|
247,455
|
|
1
|
|
Common stock, $0.01 par
value, 100,000,000 shares authorized,
|
|
|
|
|
|
|
82,845,764 issued and
78,638,199 outstanding at June 30, 2011, and
|
|
|
|
|
|
|
82,739,348 issued and
78,531,783 outstanding at December 31, 2010
|
828
|
|
827
|
|
0
|
|
Additional
paid-in-capital
|
764,524
|
|
762,509
|
|
0
|
|
Accumulated other
comprehensive income/(loss), net
|
4,382
|
|
(1,022)
|
|
529
|
|
Retained
earnings
|
580,205
|
|
543,625
|
|
7
|
|
Treasury stock, at cost
(4,207,565 shares at June 30, 2011,
|
|
|
|
|
|
|
and at
December 31, 2010)
|
(125,736)
|
|
(125,736)
|
|
-
|
|
|
|
|
|
|
|
|
Total Cathay General
Bancorp stockholders' equity
|
1,473,420
|
|
1,427,658
|
|
3
|
|
Noncontrolling
interest
|
8,447
|
|
8,447
|
|
-
|
|
Total equity
|
1,481,867
|
|
1,436,105
|
|
3
|
|
Total liabilities and
equity
|
$
10,535,530
|
|
$
10,801,986
|
|
(2)
|
|
|
|
|
|
|
|
|
Book value per common stock
share
|
$15.34
|
|
$14.80
|
|
4
|
|
Number of common stock shares
outstanding
|
78,638,199
|
|
78,531,783
|
|
0
|
|
|
|
|
|
|
|
CATHAY
GENERAL BANCORP
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
Three months
ended June 30,
|
|
Six months
ended June 30,
|
|
|
2011
|
2010
|
|
2011
|
2010
|
|
|
(In
thousands, except share and per share data)
|
|
INTEREST AND DIVIDEND
INCOME
|
|
|
|
|
|
|
Loan receivable, including loan
fees
|
$
89,792
|
$
95,083
|
|
$
180,350
|
$
190,822
|
|
Investment securities-
taxable
|
23,116
|
28,751
|
|
44,970
|
59,039
|
|
Investment securities-
nontaxable
|
1,055
|
99
|
|
2,111
|
176
|
|
Federal Home Loan Bank
stock
|
49
|
46
|
|
96
|
94
|
|
Federal funds sold and
securities
|
|
|
|
|
|
|
purchased under agreements
to resell
|
7
|
-
|
|
48
|
-
|
|
Deposits with banks
|
320
|
308
|
|
541
|
625
|
|
|
|
|
|
|
|
|
Total interest and dividend
income
|
114,339
|
124,287
|
|
228,116
|
250,756
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE
|
|
|
|
|
|
|
Time deposits of $100,000 or
more
|
10,894
|
14,281
|
|
21,619
|
29,664
|
|
Other deposits
|
5,374
|
7,985
|
|
11,094
|
17,086
|
|
Securities sold under agreements
to repurchase
|
14,892
|
16,490
|
|
31,063
|
32,802
|
|
Advances from Federal Home Loan
Bank
|
3,642
|
9,981
|
|
8,491
|
20,020
|
|
Long-term debt
|
1,216
|
943
|
|
2,422
|
1,856
|
|
Short-term borrowings
|
6
|
-
|
|
7
|
-
|
|
|
|
|
|
|
|
|
Total interest
expense
|
36,024
|
49,680
|
|
74,696
|
101,428
|
|
|
|
|
|
|
|
|
Net interest income before
provision for credit losses
|
78,315
|
74,607
|
|
153,420
|
149,328
|
|
Provision for credit
losses
|
10,000
|
45,000
|
|
16,000
|
129,000
|
|
|
|
|
|
|
|
|
Net interest income after
provision for loan losses
|
68,315
|
29,607
|
|
137,420
|
20,328
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
|
Securities gains, net
|
5,178
|
5,189
|
|
11,410
|
8,628
|
|
Letters of credit
commissions
|
1,395
|
1,068
|
|
2,673
|
2,027
|
|
Depository service
fees
|
1,399
|
1,236
|
|
2,760
|
2,593
|
|
Other operating
income/(loss)
|
4,481
|
(81)
|
|
8,236
|
(1,052)
|
|
|
|
|
|
|
|
|
Total non-interest
income
|
12,453
|
7,412
|
|
25,079
|
12,196
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
|
Salaries and employee
benefits
|
17,659
|
14,783
|
|
35,930
|
30,009
|
|
Occupancy expense
|
3,457
|
3,793
|
|
6,995
|
7,631
|
|
Computer and equipment
expense
|
2,115
|
2,108
|
|
4,298
|
4,121
|
|
Professional services
expense
|
4,959
|
5,000
|
|
8,688
|
9,639
|
|
FDIC and State
assessments
|
2,905
|
5,784
|
|
7,222
|
10,928
|
|
Marketing expense
|
817
|
821
|
|
1,512
|
1,720
|
|
Other real estate owned
expense
|
2,262
|
1,598
|
|
2,483
|
4,893
|
|
Operations of affordable housing
investments
|
1,977
|
2,112
|
|
3,953
|
4,225
|
|
Amortization of core deposit
intangibles
|
1,460
|
1,485
|
|
2,941
|
2,992
|
|
Cost associated with debt
redemption
|
5,176
|
-
|
|
13,987
|
909
|
|
Other operating
expense
|
2,623
|
2,835
|
|
5,184
|
7,415
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
45,410
|
40,319
|
|
93,193
|
84,482
|
|
|
|
|
|
|
|
|
Income/(loss) before income tax
expense/(benefit)
|
35,358
|
(3,300)
|
|
69,306
|
(51,958)
|
|
Income tax
expense/(benefit)
|
10,906
|
(5,373)
|
|
22,640
|
(28,441)
|
|
Net income/(loss)
|
24,452
|
2,073
|
|
46,666
|
(23,517)
|
|
Less: net income
attributable to noncontrolling interest
|
(150)
|
(150)
|
|
(301)
|
(301)
|
|
Net income/(loss) attributable
to Cathay General Bancorp
|
24,302
|
1,923
|
|
46,365
|
(23,818)
|
|
|
|
|
|
|
|
|
Dividends on preferred
stock
|
(4,107)
|
(4,096)
|
|
(8,212)
|
(8,188)
|
|
Net income/(loss) attributable
to common stockholders
|
$
20,195
|
$
(2,173)
|
|
$
38,153
|
$
(32,006)
|
|
|
|
|
|
|
|
|
Net income/(loss) attributable
to common stockholders per common share:
|
|
|
|
|
|
|
Basic
|
$
0.26
|
$
(0.03)
|
|
$
0.49
|
$
(0.42)
|
|
Diluted
|
$
0.26
|
$
(0.03)
|
|
$
0.49
|
$
(0.42)
|
|
|
|
|
|
|
|
|
Cash dividends paid per common
share
|
$
0.01
|
$
0.01
|
|
$
0.02
|
$
0.02
|
|
Basic average common shares
outstanding
|
78,635,324
|
78,513,577
|
|
78,622,464
|
75,599,854
|
|
Diluted average common shares
outstanding
|
78,637,108
|
78,513,577
|
|
78,636,369
|
75,599,854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CATHAY
GENERAL BANCORP
AVERAGE
BALANCES – SELECTED CONSOLIDATED FINANCIAL
INFORMATION
(Unaudited)
|
|
|
For the
three months ended,
|
|
|
(In thousands)
|
June 30,
2011
|
|
June 30,
2010
|
|
March 31,
2011
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets
|
Average
Balance
|
Average
Yield/Rate
(1) (2)
|
|
Average
Balance
|
Average
Yield/Rate
(1) (2)
|
|
Average
Balance
|
Average
Yield/Rate
(1) (2)
|
|
Loans and leases (1)
|
$ 6,900,481
|
5.22%
|
|
$ 6,872,503
|
5.55%
|
|
$ 6,897,109
|
5.32%
|
|
Taxable investment
securities
|
2,647,076
|
3.50%
|
|
3,744,929
|
3.08%
|
|
2,671,826
|
3.32%
|
|
Tax-exempt investment securities
(2)
|
134,865
|
4.83%
|
|
10,323
|
5.94%
|
|
133,516
|
4.94%
|
|
FHLB stock
|
60,047
|
0.33%
|
|
70,396
|
0.26%
|
|
63,789
|
0.30%
|
|
Federal funds sold and
securities purchased
|
|
|
|
|
|
|
|
|
|
under agreements to
resell
|
39,231
|
0.07%
|
|
-
|
-
|
|
81,889
|
0.20%
|
|
Deposits with banks
|
131,968
|
0.97%
|
|
263,048
|
0.47%
|
|
168,492
|
0.53%
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning
assets
|
$ 9,913,668
|
4.65%
|
|
$10,961,199
|
4.55%
|
|
$10,016,621
|
4.63%
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
$
416,437
|
0.20%
|
|
$
378,496
|
0.21%
|
|
$
412,990
|
0.20%
|
|
Money market
|
986,362
|
0.81%
|
|
938,109
|
0.91%
|
|
1,026,770
|
0.84%
|
|
Savings deposits
|
390,387
|
0.15%
|
|
364,867
|
0.22%
|
|
380,344
|
0.14%
|
|
Time deposits
|
4,408,690
|
1.27%
|
|
5,012,668
|
1.58%
|
|
4,267,781
|
1.33%
|
|
Total interest-bearing
deposits
|
$ 6,201,876
|
1.05%
|
|
$ 6,694,140
|
1.33%
|
|
$ 6,087,885
|
1.10%
|
|
Federal funds
purchased
|
-
|
-
|
|
-
|
-
|
|
111
|
1.27%
|
|
Securities sold under agreements
to repurchase
|
1,428,407
|
4.18%
|
|
1,560,170
|
4.24%
|
|
1,548,600
|
4.23%
|
|
Other borrowed funds
|
359,031
|
4.08%
|
|
894,870
|
4.47%
|
|
465,649
|
4.22%
|
|
Long-term debt
|
171,136
|
2.85%
|
|
171,136
|
2.21%
|
|
171,136
|
2.86%
|
|
Total interest-bearing
liabilities
|
8,160,450
|
1.77%
|
|
9,320,316
|
2.14%
|
|
8,273,381
|
1.90%
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing demand
deposits
|
979,392
|
|
|
874,395
|
|
|
937,650
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits and other
borrowed funds
|
$ 9,139,842
|
|
|
$10,194,711
|
|
|
$ 9,211,031
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average assets
|
$10,682,900
|
|
|
$11,695,411
|
|
|
$10,727,733
|
|
|
Total average equity
|
$ 1,476,417
|
|
|
$ 1,428,553
|
|
|
$ 1,451,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six
months ended,
|
|
(In thousands)
|
June 30,
2011
|
|
June 30,
2010
|
|
|
|
|
|
|
|
|
Interest-earning
assets
|
Average
Balance
|
Average
Yield/Rate
(1) (2)
|
|
Average
Balance
|
Average
Yield/Rate
(1) (2)
|
|
Loans and leases (1)
|
$ 6,898,804
|
5.27%
|
|
$ 6,912,545
|
5.57%
|
|
Taxable investment
securities
|
2,659,382
|
3.41%
|
|
3,708,160
|
3.21%
|
|
Tax-exempt investment securities
(2)
|
134,195
|
4.88%
|
|
11,219
|
4.87%
|
|
FHLB stock
|
61,908
|
0.31%
|
|
71,090
|
0.27%
|
|
Federal funds sold and
securities purchased
|
|
|
|
|
|
|
under agreements to
resell
|
60,442
|
0.16%
|
|
-
|
-
|
|
Deposits with banks
|
150,129
|
0.73%
|
|
347,411
|
0.36%
|
|
Total interest-earning
assets
|
$ 9,964,860
|
4.64%
|
|
$11,050,425
|
4.58%
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
$
414,723
|
0.20%
|
|
$
386,138
|
0.27%
|
|
Money market deposits
|
1,006,455
|
0.83%
|
|
935,031
|
0.95%
|
|
Savings deposits
|
385,393
|
0.15%
|
|
360,213
|
0.22%
|
|
Time deposits
|
4,338,625
|
1.30%
|
|
5,106,468
|
1.64%
|
|
Total interest-bearing
deposits
|
$ 6,145,196
|
1.07%
|
|
$ 6,787,850
|
1.39%
|
|
Federal funds
purchased
|
55
|
1.27%
|
|
-
|
-
|
|
Securities sold under agreements
to repurchase
|
1,488,171
|
4.21%
|
|
1,560,185
|
4.24%
|
|
Other borrowed funds
|
412,045
|
4.16%
|
|
903,660
|
4.47%
|
|
Long-term debt
|
171,136
|
2.85%
|
|
171,136
|
2.19%
|
|
Total interest-bearing
liabilities
|
8,216,603
|
1.83%
|
|
9,422,831
|
2.17%
|
|
|
|
|
|
|
|
|
Non-interest-bearing demand
deposits
|
958,636
|
|
|
879,509
|
|
|
|
|
|
|
|
|
|
Total deposits and other
borrowed funds
|
$ 9,175,239
|
|
|
$10,302,340
|
|
|
|
|
|
|
|
|
|
Total average assets
|
$10,705,192
|
|
|
$11,789,187
|
|
|
Total average equity
|
$ 1,463,798
|
|
|
$ 1,413,558
|
|
|
|
|
|
|
|
|
|
(1) Yields and interest earned
include net loan fees. Non-accrual loans are included in the
average balance.
|
|
(2) The average yield has been
adjusted to a fully taxable-equivalent basis for certain securities
of states and political subdivisions and other securities held
using a statutory Federal income tax rate of 35%.
|
|
|
|
|
|
|
|
SOURCE Cathay General Bancorp