Cathay General Bancorp (the “Company,” “we,” “us,” or “our”)
(Nasdaq: CATY), the holding company for Cathay Bank, today
announced its unaudited financial results for the quarter ended
March 31, 2024. The Company reported net income of $71.4 million,
or $0.98 per share, for the first quarter of 2024. The first
quarter net income included a $9.0 million or $0.09 per diluted
share mark-to market loss from equity securities held by the
Company and a $2.9 million or $0.03 per diluted share accrual for
an increase in the FDIC special assessment.
FINANCIAL PERFORMANCE
Three months ended
(unaudited)
March 31, 2024
December 31, 2023
March 31, 2023
Net income
$ 71.4 million
$82.5 million
$ 96.0 million
Basic earnings per common share
$0.98
$1.14
$1.32
Diluted earnings per common share
$0.98
$1.13
$1.32
Return on average assets
1.23%
1.40%
1.76%
Return on average total stockholders' equity
10.40%
12.21%
15.39%
Efficiency ratio
53.22%
53.84%
40.25%
FIRST QUARTER HIGHLIGHTS
- Total deposits increased by $520.8 million, or 10.8%
annualized, to $19.85 billion in the first quarter of 2024.
- Net interest margin decreased to 3.05% in the first quarter of
2024 from 3.27% in the fourth quarter of 2023.
- Diluted earnings per share decreased to $0.98 for the first
quarter of 2024 compared to $1.13 for the fourth quarter of 2023
due in part to changes in equity securities valuations.
“For the first quarter of 2024, our total deposits increased by
$520.8 million, or 10.8% annualized, to $19.85 billion,” commented
Chang M. Liu, President and Chief Executive Officer of the
Company.
INCOME STATEMENT REVIEW FIRST QUARTER 2024 COMPARED TO
THE FOURTH QUARTER 2023
Net income for the quarter ended March 31, 2024, was $71.4
million, a decrease of $11.1 million, or 13.5%, compared to net
income of $82.5 million for the fourth quarter of 2023. Diluted
earnings per share for the first quarter of 2024 was $0.98 per
share compared to $1.13 per share for the fourth quarter of 2023.
The first quarter net income included a $9.0 million, or $0.09 per
diluted share mark-to-market loss from equity securities held by
the Company and a $2.9 million, or $0.03 per diluted share, accrual
for an increase in the FDIC special assessment.
Return on average stockholders’ equity was 10.40% and return on
average assets was 1.23% for the quarter ended March 31, 2024,
compared to a return on average stockholders’ equity of 12.21% and
a return on average assets of 1.40% in the fourth quarter of
2023.
Net interest income before provision for credit losses
Net interest income before provision for credit losses decreased
$13.5 million, or 7.4%, to $168.6 million during the first quarter
of 2024, compared to $182.1 million in the fourth quarter of 2023.
The decrease was due primarily to an increase in deposit interest
expense and a decrease in interest income from loans and
securities.
The net interest margin was 3.05% for the first quarter of 2024
compared to 3.27% for the fourth quarter of 2023.
For the first quarter of 2024, the yield on average
interest-earning assets was 6.01%, the cost of funds on average
interest-bearing liabilities was 3.87%, and the cost of
interest-bearing deposits was 3.78%. In comparison, for the fourth
quarter of 2023, the yield on average interest-earning assets was
5.99%, the cost of funds on average interest-bearing liabilities
was 3.59%, and the cost of interest-bearing deposits was 3.50%. The
increase in the costs of average interest-bearing liabilities was
mainly a result of higher interest rates on interest bearing
deposits. The net interest spread, defined as the difference
between the yield on average interest-earning assets and the cost
of funds on average interest-bearing liabilities, was 2.14% for the
first quarter of 2024, compared to 2.40% for the fourth quarter of
2023.
Provision for credit losses
The Company recorded a provision for credit losses of $1.9
million in the first quarter of 2024 compared with $1.7 million in
the fourth quarter of 2023. As of March 31, 2024, the allowance for
credit losses, comprised of the reserve for loan losses and the
reserve for unfunded loan commitments, increased $760 thousand to
$164.4 million, or 0.85% of gross loans, compared to $163.6
million, or 0.84% of gross loans, as of December 31, 2023.
The following table sets forth the charge-offs and recoveries
for the periods indicated:
Three months ended March 31, 2024 December 31, 2023 March 31, 2023
(In thousands) (Unaudited)
Charge-offs: Commercial loans
$
1,939
$
1,392
$
3,911
Construction loans
—
4,221
—
Real estate loans (1)
254
—
3,990
Installment and other loans
—
—
6
Total charge-offs
2,193
5,613
7,907
Recoveries: Commercial loans
812
1,426
511
Construction loans
—
—
—
Real estate loans (1)
241
55
2,540
Total recoveries
1,053
1,481
3,051
Net charge-offs/(recoveries)
$
1,140
$
4,132
$
4,856
(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 $6.6 million for the first quarter of 2024, a decrease of $16.5
million, or 71.4%, compared to $23.1 million for the fourth quarter
of 2023. The decrease was primarily due to an $18.0 million
decrease in unrealized gains on equity securities offset, in part,
by a $1.4 million recovery from the sale of a previously
written-off security, when compared to the fourth quarter of
2023.
Non-interest expense
Non-interest expense decreased $17.3 million, or 15.7%, to $93.2
million in the first quarter of 2024 compared to $110.5 million in
the fourth quarter of 2023. The decrease in non-interest expense in
the first quarter of 2024 was primarily due to a decrease of $11.7
million in amortization expense of investments in low-income
housing and alternative energy partnerships, a decrease of $8.3
million in FDIC and state assessments and a decrease of $1.3
million in professional services expenses offset, in part, by an
increase of $3.5 million in salaries and employee benefits when
compared to the fourth quarter of 2023. The efficiency ratio,
defined as non-interest expense divided by the sum of net interest
income before provision for loan losses plus non-interest income,
was 53.22% in the first quarter of 2024 compared to 53.84% for the
fourth quarter of 2023.
Income taxes
The effective tax rate for the first quarter of 2024 was 10.76%
compared to 11.28% for the fourth quarter of 2023. The effective
tax rate includes the impact of alternative energy investments and
low-income housing tax credits.
BALANCE SHEET REVIEW
Gross loans, excluding loans held for sale, were $19.43 billion
as of March 31, 2024, a decrease of $118.7 million, or 0.6%, from
$19.55 billion as of December 31, 2023. The decrease was primarily
due to a decrease of $172.5 million, or 5.2%, in commercial loans,
and a decrease of $39.9 million, or 9.4%, in construction loans
offset, in part, by an increase of $92.2 million, or 0.9%, in
commercial real estate loans and an increase of $3.1 million, or
0.1%, in residential mortgage loans.
The loan balances and composition as of March 31, 2024, compared
to December 31, 2023, and March 31, 2023, are presented below:
March 31, 2024
December 31, 2023
March 31, 2023
(In thousands) (Unaudited)
Commercial loans
$
3,132,580
$
3,305,048
$
3,153,039
Construction loans
382,775
422,647
558,967
Commercial real estate loans
9,821,807
9,729,581
8,916,766
Residential mortgage loans
5,841,846
5,838,747
5,384,220
Equity lines
245,222
245,919
298,630
Installment and other loans
5,166
6,198
5,717
Gross loans
$
19,429,396
$
19,548,140
$
18,317,339
Allowance for loan losses
(154,589
)
(154,562
)
(144,884
)
Unamortized deferred loan fees
(11,737
)
(10,720
)
(5,872
)
Total loans, net
$
19,263,070
$
19,382,858
$
18,166,583
Total deposits were $19.85 billion as of March 31, 2024, an
increase of $520.8 million, or 2.7%, from $19.33 billion as of
December 31, 2023.
The deposit balances and composition as of March 31, 2024,
compared to December 31, 2023, and March 31, 2023, are presented
below:
March 31, 2024
December 31, 2023
March 31, 2023
(In thousands) (Unaudited)
Non-interest-bearing demand deposits
$
3,289,539
$
3,529,018
$
3,748,719
NOW deposits
2,331,486
2,370,685
2,354,195
Money market deposits
3,117,557
3,049,754
3,014,500
Savings deposits
1,039,144
1,039,203
891,061
Time deposits
10,068,533
9,336,787
8,640,397
Total deposits
$
19,846,259
$
19,325,447
$
18,648,872
ASSET QUALITY REVIEW
As of March 31, 2024, total non-accrual loans were $98.1
million, an increase of $31.4 million, or 47.1%, from $66.7 million
as of December 31, 2023.
The allowance for loan losses was $154.6 million and the
allowance for off-balance sheet unfunded credit commitments was
$9.8 million as of March 31, 2024. The allowances represent the
amount estimated by management to be appropriate to absorb expected
credit losses inherent in the loan portfolio, including unfunded
credit commitments. The allowance for loan losses represented 0.80%
of period-end gross loans, and 146.30% of non-performing loans as
of March 31, 2024. The comparable ratios were 0.79% of period-end
gross loans, and 209.33% of non-performing loans as of December 31,
2023.
The changes in non-performing assets and modifications to
borrowers experiencing financial difficulties as of March 31, 2024,
compared to December 31, 2023, and March 31, 2023, are presented
below:
(Dollars in thousands) (Unaudited)
March 31, 2024
December 31, 2023
% Change
March 31, 2023
% Change
Non-performing assets Accruing loans past due 90 days or
more
$
7,560
$
7,157
6
$
12,756
(41
)
Non-accrual loans: Construction loans
22,998
7,736
197
—
—
Commercial real estate loans
47,465
32,030
48
40,218
18
Commercial loans
14,642
14,404
2
22,079
(34
)
Residential mortgage loans
13,002
12,511
4
11,283
15
Total non-accrual loans
$
98,107
$
66,681
47
$
73,580
33
Total non-performing loans
105,667
73,838
43
86,336
22
Other real estate owned
19,441
19,441
—
4,067
378
Total non-performing assets
$
125,108
$
93,279
34
$
90,403
38
Accruing loan modifications to borrowers experiencing financial
difficulties
$
—
$
2,872
(100
)
$
—
—
Allowance for loan losses
$
154,589
$
154,562
—
$
144,884
7
Total gross loans outstanding, at period-end
$
19,429,396
$
19,548,140
(1
)
$
18,317,339
6
Allowance for loan losses to non-performing loans, at
period-end
146.30
%
209.33
%
167.81
%
Allowance for loan losses to gross loans, at period-end
0.80
%
0.79
%
0.79
%
The ratio of non-performing assets to total assets was 0.53% as
of March 31, 2024, compared to 0.40% as of December 31, 2023. Total
non-performing assets increased $31.8 million, or 34.1%, to $125.1
million as of March 31, 2024, compared to $93.3 million as of
December 31, 2023, primarily due to an increase of $31.4 million,
or 47.1%, in non-accrual loans, and an increase of $403 thousand,
or 5.6%, in accruing loans past due 90 days or more.
CAPITAL ADEQUACY REVIEW
As of March 31, 2024, the Company’s Tier 1 risk-based capital
ratio of 13.08%, total risk-based capital ratio of 14.55%, and Tier
1 leverage capital ratio of 10.71%, calculated under the Basel III
capital rules, 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 8%, 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%. As of December 31, 2023, the Company’s Tier 1
risk-based capital ratio was 12.84%, total risk-based capital ratio
was 14.31%, and Tier 1 leverage capital ratio was 10.55%.
CONFERENCE CALL
Cathay General Bancorp will host a conference call to discuss
its first quarter 2024 financial results this afternoon, Monday,
April 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 10187902. 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 California
state-chartered bank. Founded in 1962, Cathay Bank offers a wide
range of financial services and currently operates over 60 branches
across the United States in California, New York, Washington,
Texas, Illinois, Massachusetts, Maryland, Nevada, and New Jersey.
Overseas, it has a branch outlet in Hong Kong, and a representative
office in Beijing, Shanghai, and Taipei. To learn more about Cathay
Bank, please visit www.cathaybank.com. Cathay General Bancorp’s
website is at www.cathaygeneralbancorp.com. Information set forth
on such websites is not incorporated into this press release.
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 Asia, and other regions where
Cathay Bank has operations; failures, interruptions, or security
breaches of our information systems; our ability to adapt our
systems to technological changes; risk management processes and
strategies; adverse results in legal proceedings; certain
provisions in our charter and bylaws that may affect acquisition of
the Company; changes in accounting standards or tax laws and
regulations; market disruption and volatility; restrictions on
dividends and other distributions by laws and regulations and by
our regulators and our capital structure; issuance of preferred
stock; successfully raising additional capital, if needed, and the
resulting dilution of interests of holders of our common stock; the
soundness of other financial institutions; and general competitive,
economic political, and market conditions and fluctuations.
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
(Dollars in thousands, except per
share data)
March 31, 2024
December 31, 2023
March 31, 2023
Financial performance Net interest income before
provision for credit losses
$
168,572
$
182,138
$
192,435
Provision for credit losses
1,900
1,723
8,100
Net interest income after provision for credit losses
166,672
180,415
184,335
Non-interest income
6,611
23,101
14,244
Non-interest expense
93,239
110,498
83,186
Income before income tax expense
80,044
93,018
115,393
Income tax expense
8,609
10,492
19,386
Net income
$
71,435
$
82,526
$
96,007
Net income per common share Basic
$
0.98
$
1.14
$
1.32
Diluted
$
0.98
$
1.13
$
1.32
Cash dividends paid per common share
$
0.34
$
0.34
$
0.34
Selected ratios Return on average assets
1.23
%
1.40
%
1.76
%
Return on average total stockholders’ equity
10.40
%
12.21
%
15.39
%
Efficiency ratio
53.22
%
53.84
%
40.25
%
Dividend payout ratio
34.59
%
29.92
%
25.63
%
Yield analysis (Fully taxable equivalent)
Total interest-earning assets
6.01
%
5.99
%
5.54
%
Total interest-bearing liabilities
3.87
%
3.59
%
2.46
%
Net interest spread
2.14
%
2.40
%
3.08
%
Net interest margin
3.05
%
3.27
%
3.74
%
Capital ratios
March 31, 2024
December 31, 2023
March 31, 2023
Tier 1 risk-based capital ratio
13.08
%
12.84
%
12.42
%
Total risk-based capital ratio
14.55
%
14.31
%
13.94
%
Tier 1 leverage capital ratio
10.71
%
10.55
%
10.27
%
CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(In thousands, except share and per share data) March 31,
2024 December 31, 2023 March 31, 2023
Assets Cash and
due from banks
$
165,284
$
173,988
$
252,048
Short-term investments and interest bearing deposits
1,010,651
654,813
881,282
Securities available-for-sale (amortized cost of $1,783,915 at
March 31, 2024, $1,726,080 at December 31, 2023 and $1,672,440 at
March 31, 2023)
1,653,167
1,604,570
1,541,250
Loans held for sale
23,171
—
—
Loans
19,429,396
19,548,140
18,317,339
Less: Allowance for loan losses
(154,589
)
(154,562
)
(144,884
)
Unamortized deferred loan fees, net
(11,737
)
(10,720
)
(5,872
)
Loans, net
19,263,070
19,382,858
18,166,583
Equity securities
31,380
40,406
27,011
Federal Home Loan Bank stock
17,250
17,746
17,250
Other real estate owned, net
19,441
19,441
4,067
Affordable housing investments and alternative energy partnerships,
net
330,912
315,683
316,475
Premises and equipment, net
90,454
91,097
93,204
Customers’ liability on acceptances
17,074
3,264
6,547
Accrued interest receivable
97,937
97,673
82,420
Goodwill
375,696
375,696
375,696
Other intangible assets, net
4,131
4,461
5,564
Right-of-use assets- operating leases
31,698
32,076
29,906
Other assets
273,487
267,762
232,298
Total assets
$
23,404,803
$
23,081,534
$
22,031,601
Liabilities and Stockholders’ Equity Deposits:
Non-interest-bearing demand deposits
$
3,289,539
$
3,529,018
$
3,748,719
Interest-bearing deposits: NOW deposits
2,331,486
2,370,685
2,354,195
Money market deposits
3,117,557
3,049,754
3,014,500
Savings deposits
1,039,144
1,039,203
891,061
Time deposits
10,068,533
9,336,787
8,640,397
Total deposits
19,846,259
19,325,447
18,648,872
Advances from the Federal Home Loan Bank
265,000
540,000
360,000
Other borrowings for affordable housing investments
17,557
15,787
22,481
Long-term debt
119,136
119,136
119,136
Acceptances outstanding
17,074
3,264
6,547
Lease liabilities - operating leases
34,325
34,797
32,599
Other liabilities
327,380
306,528
299,627
Total liabilities
20,626,731
20,344,959
19,489,262
Stockholders' equity
2,778,072
2,736,575
2,542,339
Total liabilities and equity
$
23,404,803
$
23,081,534
$
22,031,601
Book value per common share
$
38.22
$
37.66
$
35.12
Number of common shares outstanding
72,688,191
72,668,927
72,390,694
CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
March 31, 2024
December 31, 2023
March 31, 2023
(In thousands, except share and
per share data)
Interest and Dividend Income Loans receivable
$
302,528
$
302,477
$
261,179
Investment securities
14,951
14,885
11,764
Federal Home Loan Bank stock
431
392
304
Deposits with banks
14,732
15,509
12,139
Total interest and dividend income
332,642
333,263
285,386
Interest Expense Time deposits
109,546
97,826
64,174
Other deposits
42,788
43,282
23,817
Advances from Federal Home Loan Bank
9,316
7,289
2,598
Long-term debt
1,721
1,759
1,443
Short-term borrowings
699
969
919
Total interest expense
164,070
151,125
92,951
Net interest income before provision for credit losses
168,572
182,138
192,435
Provision for credit losses
1,900
1,723
8,100
Net interest income after provision for credit losses
166,672
180,415
184,335
Non-Interest Income Net (losses)/gains from equity
securities
(9,027
)
8,950
4,853
Debt securities gains/(losses), net
1,107
—
(3,000
)
Letters of credit commissions
1,717
1,744
1,570
Depository service fees
1,550
1,423
1,832
Wealth management fees
5,638
4,820
3,897
Other operating income
5,626
6,164
5,092
Total non-interest income
6,611
23,101
14,244
Non-Interest Expense Salaries and employee benefits
43,552
40,101
38,226
Occupancy expense
5,967
5,387
5,504
Computer and equipment expense
5,068
4,579
4,285
Professional services expense
6,992
8,279
7,406
Data processing service expense
3,929
3,718
3,724
FDIC and State assessments
6,089
14,358
3,155
Marketing expense
1,914
1,110
774
Other real estate owned expense
253
195
50
Amortization of investments in low income housing and alternative
energy partnerships
14,432
26,119
15,594
Amortization of core deposit intangibles
339
251
250
Acquisition, integration and restructuring costs
—
671
—
Other operating expense
4,704
5,730
4,218
Total non-interest expense
93,239
110,498
83,186
Income before income tax expense
80,044
93,018
115,393
Income tax expense
8,609
10,492
19,386
Net income
$
71,435
$
82,526
$
96,007
Net income per common share: Basic
$
0.98
$
1.14
$
1.32
Diluted
$
0.98
$
1.13
$
1.32
Cash dividends paid per common share
$
0.34
$
0.34
$
0.34
Basic average common shares outstanding
72,673,974
72,652,779
72,533,239
Diluted average common shares outstanding
72,971,157
72,906,310
72,899,662
CATHAY GENERAL BANCORP
AVERAGE BALANCES – SELECTED
CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)
Three months ended
(In thousands)(Unaudited)
March 31, 2024
December 31, 2023
March 31, 2023
Interest-earning assets:
Average Balance
Average Yield/Rate (1)
Average Balance
Average Yield/Rate (1)
Average Balance
Average Yield/Rate (1)
Loans (1)
$
19,498,954
6.24
%
$
19,330,187
6.21
%
$
18,245,488
5.81
%
Taxable investment securities
1,638,317
3.67
%
1,594,267
3.71
%
1,548,841
3.08
%
FHLB stock
23,006
7.53
%
19,599
7.94
%
17,276
7.14
%
Deposits with banks
1,093,972
5.42
%
1,130,806
5.44
%
1,070,188
4.60
%
Total interest-earning assets
$
22,254,249
6.01
%
$
22,074,859
5.99
%
$
20,881,793
5.54
%
Interest-bearing liabilities: Interest-bearing demand
deposits
$
2,312,246
2.19
%
$
2,466,263
2.14
%
$
2,354,531
1.12
%
Money market deposits
3,114,298
3.53
%
3,200,455
3.33
%
3,378,257
2.05
%
Savings deposits
1,046,103
1.10
%
1,112,454
1.11
%
938,485
0.10
%
Time deposits
9,720,917
4.53
%
9,208,820
4.21
%
8,225,215
3.16
%
Total interest-bearing deposits
$
16,193,564
3.78
%
$
15,987,992
3.50
%
$
14,896,488
2.40
%
Other borrowed funds
730,779
5.51
%
600,483
5.46
%
321,522
4.44
%
Long-term debt
119,136
5.81
%
119,136
5.86
%
119,136
4.91
%
Total interest-bearing liabilities
17,043,479
3.87
%
16,707,611
3.59
%
15,337,146
2.46
%
Non-interest-bearing demand deposits
3,338,551
3,598,385
3,958,533
Total deposits and other borrowed funds
$
20,382,030
$
20,305,996
$
19,295,679
Total average assets
$
23,451,901
$
23,304,836
$
22,098,431
Total average equity
$
2,761,843
$
2,681,899
$
2,530,719
(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 March 31, 2024 December 31, 2023 March 31, 2023 (In
thousands) (Unaudited) Stockholders' equity
(a)
$
2,778,072
$
2,736,575
$
2,542,339
Less: Goodwill
(375,696
)
(375,696
)
(375,696
)
Other intangible assets (1)
(4,131
)
(4,461
)
(5,564
)
Tangible equity
(b)
$
2,398,245
$
2,356,418
$
2,161,079
Total assets
(c)
$
23,404,803
$
23,081,534
$
22,031,601
Less: Goodwill
(375,696
)
(375,696
)
(375,696
)
Other intangible assets (1)
(4,131
)
(4,461
)
(5,564
)
Tangible assets
(d)
$
23,024,976
$
22,701,377
$
21,650,341
Number of common shares outstanding
(e)
72,688,191
72,668,927
72,390,694
Total stockholders' equity to total assets ratio
(a)/(c)
11.87
%
11.86
%
11.54
%
Tangible equity to tangible assets ratio
(b)/(d)
10.42
%
10.38
%
9.98
%
Tangible book value per share
(b)/(e)
$
32.99
$
32.43
$
29.85
Three months ended
March 31, 2024
December 31, 2023
March 31, 2023
(In thousands) (Unaudited)
Net Income
$
71,435
$
82,526
$
96,007
Add: Amortization of other intangibles (1)
330
262
192
Tax effect of amortization adjustments (2)
(98
)
(78
)
(57
)
Tangible net income
(f)
$
71,667
$
82,710
$
96,142
Return on tangible common equity (3)
(f)/(b)
11.95
%
14.04
%
17.80
%
(1)
Includes core deposit intangibles
and mortgage servicing
(2)
Applied the statutory rate of
29.65%.
(3)
Annualized
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240422394216/en/
Heng W. Chen (626) 279-3652
Cathay General Bancorp (NASDAQ:CATY)
Historical Stock Chart
From Jul 2024 to Aug 2024
Cathay General Bancorp (NASDAQ:CATY)
Historical Stock Chart
From Aug 2023 to Aug 2024