CATY
$28.66
Cathay Genl Bncp
$.41
1.45%
Earnings Details
3rd Quarter September 2020
Monday, October 26, 2020 4:38:00 PM
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Summary

Cathay Genl Bncp (CATY) Recent Earnings

Cathay Genl Bncp (CATY) reported 3rd Quarter September 2020 earnings of $0.71 per share on revenue of $182.2 million. The consensus earnings estimate was $0.61 per share on revenue of $149.9 million. Revenue fell 12.5% compared to the same quarter a year ago.

Cathay General Bancorp is a holding company for Cathay Bank, which offers various financial services for individuals, professionals, and small to medium-sized businesses in California.

Results
Reported Earnings
$0.71
Earnings Whisper
-
Consensus Estimate
$0.61
Reported Revenue
$182.2 Mil
Revenue Estimate
$149.9 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Cathay General Bancorp Announces Third Quarter 2020 Results

LOS ANGELES, Oct. 26, 2020 /PRNewswire/ -- 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 September 30, 2020.  The Company reported net income of $56.8 million, or $0.71 per share, for the third quarter of 2020.

FINANCIAL PERFORMANCE


Three months ended

(unaudited)

September 30, 2020


June 30, 2020


September 30, 2019

Net income

$56.8 million


$54.3 million


$72.8 million

Basic earnings per common share

$0.71


$0.68


$0.91

Diluted earnings per common share

$0.71


$0.68


$0.91

Return on average assets

1.18%


1.15%


1.65%

Return on average total stockholders' equity

9.53%


9.31%


12.98%

Efficiency ratio

51.53%


44.82%


41.67%

 

THIRD QUARTER HIGHLIGHTS

  • The net interest margin of 3.02% during the third quarter of 2020 is unchanged from the second quarter of 2020.
  • The provision for loan losses decreased to $12.5 million for the third quarter of 2020 compared to $25.0 million for the second quarter of 2020.

"For the third quarter of 2020, our net interest margin was 3.02%, unchanged from the second quarter of 2020 while our net interest income for the third quarter increased to $137.5 million compared to $134.5 million for the second quarter of 2020 on higher average earning assets," commented Chang M. Liu, President and Chief Executive Officer of the Company.

THIRD QUARTER INCOME STATEMENT REVIEW

Net income for the quarter ended September 30, 2020, was $56.8 million, a decrease of $16.0 million, or 22.0%, compared to net income of $72.8 million for the same quarter a year ago.  Diluted earnings per share for the quarter ended September 30, 2020, was $0.71 per share compared to $0.91 per share for the same quarter a year ago.

Return on average stockholders' equity was 9.53% and return on average assets was 1.18% for the quarter ended September 30, 2020, compared to a return on average stockholders' equity of 12.98% and a return on average assets of 1.65% for the same quarter a year ago.

Net interest income before provision for credit losses

Net interest income before provision for credit losses decreased $9.5 million, or 6.5%, to $137.5 million during the third quarter of 2020, compared to $147.0 million during the same quarter a year ago. The decrease was due primarily to a decrease in interest income from loans and securities.

The net interest margin was 3.02% for the third quarter of 2020 compared to 3.56% for the third quarter of 2019 and 3.02% for the second quarter of 2020.

For the third quarter of 2020, the yield on average interest-earning assets was 3.78%, the cost of funds on average interest-bearing liabilities was 1.04%, and the cost of interest-bearing deposits was 0.99%. In comparison, for the third quarter of 2019, the yield on average interest-earning assets was 4.80%, the cost of funds on average interest-bearing liabilities was 1.65%, and the cost of interest-bearing deposits was 1.60%. The decrease in the yield on average interest-earning assets resulted mainly from lower rates on loans.  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 2.74% for the quarter ended September 30, 2020, compared to 3.15% for the same quarter a year ago.

Provision/(Reversal) for credit losses

Based on a review of the appropriateness of the allowance for loan losses at September 30, 2020, the Company recorded a provision for credit losses of $12.5 million in the third quarter of 2020, compared to a reversal for credit losses of $2.0 million in the third quarter of 2019.  The provision for credit losses is primarily a result of the economic deterioration of the global economy resulting from the COVID-19 pandemic.  The Company will continue to monitor the continuing impact of the pandemic on credit risks and losses, as well as on customer demand deposits and other liabilities and assets.  As permitted under the Coronavirus, Aid, Relief and Economic Security Act (the "CARES Act"), the Company has chosen to defer the adoption of the Current Expected Credit Losses (CECL) methodology for estimated credit losses until the earlier of the date the U.S. government declares an end to the national emergency or December 31, 2020. The expected impact of CECL on the third quarter results, if CECL had been adopted, will be disclosed in the Company's Form 10-Q for the third quarter of 2020.  The following table sets forth the charge-offs and recoveries for the periods indicated:












Three months ended


Nine months ended September 30,


September 30, 2020


June 30, 2020


September 30, 2019


2020


2019


(In thousands) (Unaudited)

Charge-offs:










  Commercial loans

$                        6,956


$                   5,106


$                         3,356


$                13,383


$                6,300

     Total charge-offs 

6,956


5,106


3,356


13,383


6,300

Recoveries:










  Commercial loans

3,796


1,350


212


6,354


1,609

  Construction loans



3,378



4,612

  Real estate loans(1)

110


163


5,023


435


5,596

     Total recoveries

3,906


1,513


8,613


6,789


11,817

Net charge-offs/(recoveries)

$                        3,050


$                   3,593


$                      (5,257)


$                  6,594


$             (5,517)











(1) Real estate loans include 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), wire transfer fees, and other sources of fee income, was $10.0 million for the third quarter of 2020, a decrease of $0.4 million, or 3.8%, compared to $10.4 million for the third quarter of 2019.  The decrease was primarily due to a $2.0 million decrease in net gains from equity securities, and a decrease of $0.7 million from gain on sale of loans, offset in part by a $1.4 million increase in gain on low income housing investments, and a $0.6 million increase in wealth management fees, when compared to the same quarter a year ago.

Non-interest expense

Non-interest expense increased $10.4 million, or 15.9%, to $76.0 million in the third quarter of 2020 compared to $65.6 million in the same quarter a year ago.  The increase in non-interest expense in the third quarter of 2020 was primarily due to an increase of $9.2 million in amortization expense of investments in low-income housing and alternative energy partnerships, an increase of $1.4 million in salaries and employee benefits and an increase of $1.0 million in provision for unfunded commitments offset, in part, by a decrease of $1.3 million in marketing expense, when compared to the same quarter a year ago.  The efficiency ratio was 51.5% in the third quarter of 2020 compared to 41.7% for the same quarter a year ago.

Income taxes

The effective tax rate for the third quarter of 2020 was 3.7% compared to 22.4% for the third quarter of 2019. The effective tax rate includes an alternative energy investment made in the second quarter of 2020 and the impact of low-income housing tax credits.

BALANCE SHEET REVIEW 

Gross loans, including loans held for sale, were $15.6 billion at September 30, 2020, an increase of $490.3 million, or 3.3%, from $15.1 billion at December 31, 2019.  The increase was primarily due to $265.7 million in Paycheck Protection Loans and increases of $184.1 million, or 2.5%, in commercial mortgage loans, $81.3 million, or 2.0%, in residential mortgage loans, $63.9 million, or 18.4%, in equity lines and $95.2 million, or 16.4%, in real estate construction loans offset, in part, by a decrease of $196.5 million, or 7.1%, in commercial loans not including Paycheck Protection Loans.  The loan balances and composition at September 30, 2020, compared to December 31, 2019 and September 30, 2019, are presented below:








September 30, 2020


December 31, 2019


September 30, 2019


(In thousands) (Unaudited)

Commercial loans

$                2,582,272


$               2,778,744


$                  2,668,061

Paycheck protection program loans

265,728



Residential mortgage loans

4,169,847


4,088,586


4,010,739

Commercial mortgage loans

7,459,316


7,275,262


7,135,599

Equity lines

411,848


347,975


315,252

Real estate construction loans

675,112


579,864


593,816

Installment and other loans

1,656


5,050


5,087

Gross loans

$              15,565,779


$             15,075,481


$                14,728,554







Allowance for loan losses

(179,130)


(123,224)


(125,908)

Unamortized deferred loan fees

(4,210)


(626)


(1,081)

Total loans, net

$              15,382,439


$             14,951,631


$                14,601,565







Loans held for sale

$                            —


$                           —


$                       36,778







Total deposits were $16.0 billion at September 30, 2020, an increase of $1.3 billion, or 8.8%, from $14.7 billion at December 31, 2019.  The increases in non-interest bearing demand deposits NOW deposits and money market deposits resulted from higher liquidity maintained by our depositors during these uncertain times and improved money market deposit generation from corporate accounts. The decreases in time deposits resulted primarily from the runoff of wholesale time deposits.  The deposit balances and composition at September 30, 2020, compared to December 31, 2019 and September 30, 2019, are presented below:








September 30, 2020


December 31, 2019


September 30, 2019


(In thousands) (Unaudited)

Non-interest-bearing demand deposits

$                3,306,421


$               2,871,444


$                2,939,924

NOW deposits

1,767,227


1,358,152


1,282,267

Money market deposits

3,227,359


2,260,764


2,095,328

Savings deposits

784,076


758,903


721,547

Time deposits

6,949,165


7,443,045


7,619,203

Total deposits

$              16,034,248


$             14,692,308


$              14,658,269







ASSET QUALITY REVIEW

At September 30, 2020, total non-accrual loans were $77.2 million, an increase of $36.7 million, or 90.6%, from $40.5 million at December 31, 2019, and an increase of $30.0 million, or 63.6%, from $47.2 million at September 30, 2019.  The increase was due primarily to two commercial real estate loans totaling $25.0 million that become non-accrual during the third quarter of 2020.

The allowance for loan losses was $179.1 million and the allowance for off-balance sheet unfunded credit commitments was $5.7 million at September 30, 2020, which represented the amount believed by management to be appropriate to absorb credit losses inherent in the loan portfolio, including unfunded credit commitments.  The $179.1 million allowance for loan losses at September 30, 2020, increased $55.9 million, or 45.4%, from $123.2 million at December 31, 2019.  This increase includes additional provisions for credit losses and reflects the deterioration in economic conditions related to the COVID-19 pandemic. The allowance for loan losses represented 1.15% of period-end gross loans, and 223.8% of non-performing loans at September 30, 2020.  The comparable ratios were 0.82% of period-end gross loans, and 262.6% of non-performing loans at December 31, 2019.  The changes in non-performing assets and troubled debt restructurings at September 30, 2020, compared to December 31, 2019 and September 30, 2019, are presented below:











(Dollars in thousands) (Unaudited)

September 30, 2020


December 31, 2019


 

%


September 30, 2019


%

Non-performing assets










Accruing loans past due 90 days or more

$                       2,868


$                      6,409


(55)


$                          683


320

Non-accrual loans:










  Construction loans

4,335


4,580


(5)


4,629


(6)

  Commercial mortgage loans

33,782


9,928


240


12,330


174

  Commercial loans

29,757


19,381


54


22,970


30

  Residential mortgage loans

9,317


6,634


40


7,271


28

Total non-accrual loans:

$                     77,191


$                    40,523


90


$                     47,200


64

Total non-performing loans

80,059


46,932


71


47,883


67

 Other real estate owned

4,918


10,244


(52)


11,329


(57)

Total non-performing assets

$                     84,977


$                    57,176


49


$                     59,212


44

Accruing troubled debt restructurings (TDRs)

$                     28,587


$                    35,336


(19)


$                     41,647


(31)











Allowance for loan losses

$                   179,130


$                  123,224


45


$                   125,908


42

Total gross loans outstanding, at period-end (1)

$              15,565,779


$             15,075,481


3


$              14,728,554


6











Allowance for loan losses to non-performing loans, at period-end (2)

223.75%


262.56%




262.95%



Allowance for loan losses to gross loans, at period-end (1)

1.15%


0.82%




0.85%













(1) Excludes loans held for sale at period-end.










(2) Excludes non-accrual loans held for sale at period-end.










The ratio of non-performing assets to total assets was 0.4% at September 30, 2020, compared to 0.3% at December 31, 2019.  Total non-performing assets increased $27.8 million, or 48.6%, to $85.0 million at September 30, 2020, compared to $57.2 million at December 31, 2019, primarily due to an increase of $36.7 million, or 90.6%, in nonaccrual loans, offset, in part, by a decrease of $5.3 million, or 52.0%, in other real estate owned and a decrease of $3.5 million, or 55.2%, in accruing loans past due 90 days or more. 

CAPITAL ADEQUACY REVIEW

At September 30, 2020, the Company's Tier 1 risk-based capital ratio of 13.22%, total risk-based capital ratio of 15.23%, and Tier 1 leverage capital ratio of 10.51%, 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%. At December 31, 2019, the Company's Tier 1 risk-based capital ratio was 12.51%, total risk-based capital ratio was 14.11%, and Tier 1 leverage capital ratio was 10.83%.

YEAR-TO-DATE REVIEW

Net income for the nine months ended September 30, 2020, was $158.0 million, a decrease of $53.8 million, or 25.4%, compared to net income of $211.8 million for the same period a year ago.  Diluted earnings per share was $1.98 compared to $2.64 per share for the same period a year ago.  The net interest margin for the nine months ended September 30, 2020, was 3.12% compared to 3.61% for the same period a year ago.

Return on average stockholders' equity was 8.99% and return on average assets was 1.13% for the nine months ended September 30, 2020, compared to a return on average stockholders' equity of 12.94% and a return on average assets of 1.65% for the same period a year ago.  The efficiency ratio for the nine months ended September 30, 2020, was 46.98% compared to 43.87% for the same period a year ago. 

CONFERENCE CALL

Cathay General Bancorp will host a conference call to discuss its third quarter 2020 financial results this afternoon, Monday, October 26, 2020, 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 1-855-761-3186 and enter Conference ID 8781217. A presentation to accompany the earnings call will be available at www.cathaygeneralbancorp.com.  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 38 branches in California, 10 branches in New York State, four in Washington State, three in Illinois, two in Texas, one in Maryland, Massachusetts, Nevada, and New Jersey, one in Hong Kong, and a representative office in Taipei, Beijing, and Shanghai. Cathay Bank's website is at 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 (such as the COVID-19 pandemic) 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 including the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act; 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 (such as the COVID-19 pandemic) 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, 2019 (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


Nine months ended September 30,

(Dollars in thousands, except per share data)


September 30, 2020


June 30, 2020


September 30, 2019


2020


2019












FINANCIAL PERFORMANCE











Net interest income before provision/(reversal) for credit losses    


$                 137,504


$                 134,475


$                 147,000


$            412,290


$            433,695

Provision/(reversal) for credit losses


12,500


25,000


(2,000)


62,500


(2,000)

Net interest income after provision/(reversal) for credit losses


125,004


109,475


149,000


349,790


435,695

Non-interest income


9,977


15,606


10,388


31,369


36,103

Non-interest expense


75,997


67,268


65,580


208,419


206,096

Income before income tax expense


58,984


57,813


93,808


172,740


265,702

Income tax expense


2,190


3,492


20,973


14,773


53,944

Net income


$                   56,794


$                  54,321


$                   72,835


$            157,967


$            211,758












Net income per common share











Basic


$                      0.71


$                      0.68


$                      0.91


$                 1.98


$                 2.64

Diluted


$                      0.71


$                      0.68


$                      0.91


$                 1.98


$                 2.64












 Cash dividends paid per common share  


$                      0.31


$                      0.31


$                      0.31


$                 0.93


$                 0.93























SELECTED RATIOS











Return on average assets


1.18%


1.15%


1.65%


1.13%


1.65%

Return on average total stockholders' equity


9.53%


9.31%


12.98%


8.99%


12.94%

Efficiency ratio


51.53%


44.82%


41.67%


46.98%


43.87%

Dividend payout ratio


43.46%


45.42%


33.92%


46.85%


35.14%























YIELD ANALYSIS (Fully taxable equivalent)











Total interest-earning assets


3.78%


3.91%


4.80%


4.03%


4.82%

Total interest-bearing liabilities


1.04%


1.20%


1.65%


1.24%


1.62%

Net interest spread


2.74%


2.71%


3.15%


2.79%


3.20%

Net interest margin


3.02%


3.02%


3.56%


3.12%


3.61%























CAPITAL RATIOS


September 30, 2020


December 31, 2019


September 30, 2019





Tier 1 risk-based capital ratio


13.22%


12.51%


12.41%





Total risk-based capital ratio


15.23%


14.11%


14.06%





Tier 1 leverage capital ratio


10.51%


10.83%


10.81%





 


 

 

CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)


(In thousands, except share and per share data)


September 30, 2020


December 31, 2019


September 30, 2019








Assets







Cash and due from banks


$                    128,896


$                    177,240


$                      257,189

Short-term investments and interest bearing deposits


1,305,170


416,538


567,957

Securities available-for-sale (amortized cost of $1,060,975 at September 30, 2020







    $1,443,730 at December 31, 2019 and $1,422,431 at September 30, 2019)


1,080,540


1,451,842


1,427,438

Loans held for sale




36,778

Loans


15,565,779


15,075,481


14,728,554

Less:  Allowance for loan losses


(179,130)


(123,224)


(125,908)

 Unamortized deferred loan fees, net


(4,210)


(626)


(1,081)

 Loans, net


15,382,439


14,951,631


14,601,565

Equity securities


22,964


28,005


32,862

Federal Home Loan Bank stock


17,250


18,090


17,250

Other real estate owned, net


4,918


10,244


11,329

Affordable housing investments and alternative energy partnerships, net


325,013


308,681


321,929

Premises and equipment, net


103,438


104,239


103,820

Customers' liability on acceptances


12,973


10,694


12,503

Accrued interest receivable


57,102


53,541


52,337

Goodwill


372,189


372,189


372,189

Other intangible assets, net


5,631


6,296


6,821

Right-of-use assets- operating leases


32,591


33,990


34,518

Other assets


167,124


150,924


148,481

Total assets


$                19,018,238


$               18,094,144


$                  18,004,966








Liabilities and Stockholders' Equity







Deposits







Non-interest-bearing demand deposits


$                  3,306,421


$                 2,871,444


$                   2,939,924

Interest-bearing deposits:







NOW deposits


1,767,227


1,358,152


1,282,267

Money market deposits


3,227,359


2,260,764


2,095,328

Savings deposits


784,076


758,903


721,547

Time deposits 


6,949,165


7,443,045


7,619,203

Total deposits


16,034,248


14,692,308


14,658,269








Short-term borrowings



25,683


Advances from the Federal Home Loan Bank


230,000


670,000


600,000

Other borrowings for affordable housing investments


23,788


29,022


30,767

Long-term debt


119,136


119,136


160,386

Deferred payments from acquisition



7,644


7,602

Acceptances outstanding


12,973


10,694


12,503

Lease liabilities - operating leases


35,116


35,873


36,142

Other liabilities


188,254


209,501


253,403

Total liabilities


16,643,515


15,799,861


15,759,072

Stockholders' equity


2,374,723


2,294,283


2,245,894

Total liabilities and equity


$                19,018,238


$               18,094,144


$                  18,004,966








Book value per common share


$                         29.81


$                        28.78


$                           28.18

Number of common shares outstanding


79,659,396


79,729,419


79,706,511

 

 


CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)




Three months ended


Nine months ended September 30,



September 30, 2020

June 30, 2020

September 30, 2019


2020

2019



(In thousands, except share and per share data)

INTEREST AND  DIVIDEND INCOME








Loan receivable, including loan fees


$                   167,556

$           168,149

$                    187,827


$              513,575

$                548,395

Investment securities


4,115

5,405

8,687


17,130

24,454

Federal Home Loan Bank stock


216

214

301


735

903

Deposits with banks


347

240

1,016


1,538

4,289

Total interest and dividend income


172,234

174,008

197,831


532,978

578,041









INTEREST EXPENSE








Time deposits 


26,247

30,811

40,378


92,213

113,992

Other deposits


5,761

5,919

6,626


19,671

17,591

Advances from Federal Home Loan Bank


1,251

1,316

1,661


4,119

5,976

Long-term debt


1,456

1,440

1,948


4,336

6,087

Deferred payments from acquisition


15

42

93


115

502

Short-term borrowings


5

125


234

198

Total interest expense


34,730

39,533

50,831


120,688

144,346









Net interest income before provision/(reversal) for credit losses


137,504

134,475

147,000


412,290

433,695

Provision/(reversal) for credit losses


12,500

25,000

(2,000)


62,500

(2,000)

Net interest income after provision/(reversal) for credit losses


125,004

109,475

149,000


349,790

435,695









NON-INTEREST INCOME








Net (losses)/gains from equity securities


(1,605)

5,779

364


(1,928)

7,764

Securities gains/(losses), net


1,147

(121)


1,153

(108)

Letters of credit commissions


1,792

1,560

1,602


4,992

4,733

Depository service fees


1,263

1,117

1,119


3,678

3,617

Other operating income


8,527

6,003

7,424


23,474

20,097

Total non-interest income


9,977

15,606

10,388


31,369

36,103









NON-INTEREST EXPENSE








Salaries and employee benefits


33,341

28,197

31,915


92,477

97,200

Occupancy expense


5,295

4,963

5,579


15,435

16,617

Computer and equipment expense


3,044

2,581

2,741


8,218

8,453

Professional services expense


5,241

5,200

5,952


15,586

17,209

Data processing service expense


3,772

3,566

3,246


11,004

9,737

FDIC and State assessments


1,993

2,446

2,582


6,854

7,190

Marketing expense


1,089

915

2,436


3,890

5,556

Other real estate owned expense/(income)


423

452

190


(3,229)

839

Amortization of investments in low income housing and
  alternative energy partnerships


16,173

12,934

6,997


42,997

26,909

Amortization of core deposit intangibles


172

171

172


515

515

Other operating expense


5,454

5,843

3,770


14,672

15,871

Total non-interest expense


75,997

67,268

65,580


208,419

206,096









Income before income tax expense


58,984

57,813

93,808


172,740

265,702

Income tax expense


2,190

3,492

20,973


14,773

53,944

Net income


$                   56,794

$            54,321

$                     72,835


$             157,967

$               211,758

Net income per common share:








Basic


$                        0.71

$                0.68

$                          0.91


$                   1.98

$                     2.64

Diluted


$                        0.71

$                0.68

$                          0.91


$                   1.98

$                     2.64









Cash dividends paid per common share


$                        0.31

$                0.31

$                          0.31


$                   0.93

$                     0.93

Basic average common shares outstanding


79,628,372

79,581,097

79,736,814


79,599,288

80,096,855

Diluted average common shares outstanding


79,764,318

79,682,426

79,993,830


79,758,943

80,330,616

 

 


 

CATHAY GENERAL BANCORP
AVERAGE BALANCES – SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited) 



Three months ended


(In thousands)

September 30, 2020


June 30, 2020


September 30, 2019

Interest-earning assets

Average Balance

Average Yield/Rate (1)


Average Balance

Average Yield/Rate (1)


Average Balance

Average Yield/Rate (1)

Loans (1)

$    15,592,536

4.28%


$ 15,626,412

4.33%


$   14,662,847

5.08%

Taxable investment securities 

1,145,092

1.43%


1,268,661

1.71%


1,498,569

2.30%

FHLB stock

17,250

4.99%


17,434

4.95%


17,250

6.92%

Deposits with banks

1,385,535

0.10%


980,949

0.10%


188,772

2.14%

Total interest-earning assets

$    18,140,413

3.78%


$ 17,893,456

3.91%


$   16,367,438

4.80%










Interest-bearing liabilities









Interest-bearing demand deposits

$      1,695,882

0.17%


$   1,586,112

0.19%


$     1,281,629

0.18%

Money market deposits

3,119,091

0.62%


2,756,493

0.72%


2,028,039

1.11%

Savings deposits

766,521

0.11%


740,500

0.14%


726,763

0.19%

Time deposits

7,281,403

1.43%


7,616,446

1.63%


7,623,238

2.10%

Total interest-bearing deposits

$    12,862,897

0.99%


$ 12,699,551

1.16%


$   11,659,669

1.60%

Other borrowed funds

263,306

1.91%


412,953

1.33%


362,698

2.05%

Long-term debt

119,136

4.86%


119,136

4.86%


165,023

4.68%

Total interest-bearing liabilities

13,245,339

1.04%


13,231,640

1.20%


12,187,390

1.65%










Non-interest-bearing demand deposits

3,301,253



3,101,265



2,805,582











Total deposits and other borrowed funds

$    16,546,592



$ 16,332,905



$   14,992,972











Total average assets

$    19,164,220



$ 18,930,651



$   17,483,376


Total average equity

$      2,370,817



$   2,346,775



$     2,226,591












Nine months ended




(In thousands)

September 30, 2020


September 30, 2019




Interest-earning assets

Average Balance

Average Yield/Rate (1)


Average Balance

Average Yield/Rate (1)




Loans (1)

$    15,477,883

4.43%


$ 14,374,397

5.10%




Taxable investment securities 

1,263,937

1.81%


1,404,046

2.33%




FHLB stock

17,317

5.67%


17,268

6.99%




Deposits with banks

894,302

0.23%


245,971

2.33%




Total interest-earning assets

$    17,653,439

4.03%


$ 16,041,682

4.82%













Interest-bearing liabilities









Interest-bearing demand deposits

$      1,557,371

0.19%


$   1,285,180

0.18%




Money market deposits

2,772,463

0.81%


1,933,898

1.02%




Savings deposits

746,870

0.14%


725,257

0.20%




Time deposits

7,463,821

1.65%


7,421,255

2.05%




Total interest-bearing deposits

$    12,540,525

1.19%


$ 11,365,590

1.55%




Other borrowed funds

355,758

1.68%


392,483

2.27%




Long-term debt

119,136

4.86%


172,567

4.72%




Total interest-bearing liabilities

13,015,419

1.24%


11,930,640

1.62%













Non-interest-bearing demand deposits

3,089,578



2,790,367





Total deposits and other borrowed funds

$    16,104,997



$ 14,721,007














Total average assets

$    18,701,000



$ 17,153,196





Total average equity

$      2,346,049



$   2,187,621














(1) Yields and interest earned include net loan fees. Non-accrual loans are included in the average balance.

 

 

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SOURCE Cathay General Bancorp