LOS ANGELES, April 16, 2014 /PRNewswire/ -- Cathay
General Bancorp (the "Company", NASDAQ: CATY), the holding company
for Cathay Bank, today announced results for the first quarter of
2014.
FINANCIAL PERFORMANCE
|
Three months ended
March 31,
|
|
2014
|
|
2013
|
Net income
|
$31.3
million
|
|
$28.8
million
|
Net income available
to common stockholders
|
$31.3
million
|
|
$23.7
million
|
Basic earnings per
common share
|
$0.39
|
|
$0.30
|
Diluted earnings per
common share
|
$0.39
|
|
$0.30
|
Return on average
assets
|
1.19%
|
|
1.12%
|
Return on average
total stockholders' equity
|
8.53%
|
|
7.20%
|
Efficiency
ratio
|
49.44%
|
|
51.71%
|
FIRST QUARTER HIGHLIGHTS
- Diluted earnings per share increased 30.0% to $0.39 per share for the first quarter of 2014
compared to $0.30 per share for the
same quarter a year ago.
- Total loans increased $217.7
million, or 2.7%, in the first quarter of 2014, to
$8.3 billion at March 31, 2014, compared to $8.1 billion at December
31, 2013.
"Our loan growth for the first quarter was solid at $217.7 million, or an 11% annualized rate.
We expect to achieve good loan growth in the remaining three
quarters of 2014" commented Dunson
Cheng, Chairman of the Board, Chief Executive Officer, and
President of the Company.
"Our new Bensonhurst, New York
branch opened in March, 2014 and we expect to open our second
San Francisco branch in June
2014. We continue to look for new branches within our
footprint to better serve our customers," said Peter Wu, Executive Vice Chairman and Chief
Operating Officer.
"We have implemented other enhancements in our data processing
capabilities since the completion of the core conversion on
July 15, 2013. Starting with
the second half of 2014, we expect to begin fully realizing the
operating efficiencies provided by our new core system," concluded
Dunson Cheng.
FIRST QUARTER INCOME STATEMENT REVIEW
Net income available to common stockholders for the quarter
ended March 31, 2014, was
$31.3 million, an increase of
$7.6 million, or 32.1%, compared to a
net income available to common stockholders of $23.7 million for the same quarter a year
ago. Diluted earnings per share available to common
stockholders for the quarter ended March 31,
2014, was $0.39 compared to
$0.30 for the same quarter a year ago
due primarily to the elimination of dividends on preferred stock, a
decrease in the cost associated with debt redemption, and an
increase in net interest income.
Return on average stockholders' equity was 8.53% and return on
average assets was 1.19% for the quarter ended March 31, 2014, compared to a return on average
stockholders' equity of 7.20% and a return on average assets of
1.12% for the same quarter a year ago.
Net interest income before provision for credit
losses
Net interest income before provision for credit losses increased
$2.6 million, or 3.2%, to
$82.7 million during the first
quarter of 2014 compared to $80.1
million during the same quarter a year ago. The
increase was due primarily to the decrease in interest expense from
securities sold under agreements to repurchase.
The net interest margin, on a fully taxable-equivalent basis,
was 3.38% for the first quarter of 2014, compared to 3.30% for the
fourth quarter of 2013 and 3.35% for the first quarter of
2013. The increase in the net interest margin was due mainly
to the prepayment of securities sold under agreements to repurchase
during the last twelve months.
For the first quarter of 2014, the yield on average
interest-earning assets was 4.14%, on a fully taxable-equivalent
basis, the cost of funds on average interest-bearing liabilities
was 0.99%, and the cost of interest bearing deposits was
0.65%. In comparison, for the first quarter of 2013, the
yield on average interest-earning assets was 4.26%, on a fully
taxable-equivalent basis, the cost of funds on average
interest-bearing liabilities was 1.18%, and the cost of interest
bearing deposits was 0.63%. 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 seven basis points to 3.15% for the quarter ended
March 31, 2014, from 3.08% for the
same quarter a year ago, primarily for the reason discussed
above.
Provision for credit losses
Provision for credit losses was zero for both the first quarter
of 2014 and the first quarter of 2013. The provision for
credit losses was based on the review of the adequacy of the
allowance for loan losses at March 31,
2014. The provision or reversal for credit losses represents
the charge against or benefit toward 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
indicated:
|
Three months
ended
|
|
|
March 31,
2014
|
|
December 31,
2013
|
|
March 31,
2013
|
|
|
(In
thousands)
|
Charge-offs:
|
|
|
|
|
|
|
Commercial
loans
|
$
7,226
|
|
$
11,045
|
|
$
2,690
|
|
Real estate
loans (1)
|
1,776
|
|
626
|
|
1,130
|
|
Real estate-
land loans
|
-
|
|
-
|
|
270
|
|
Total
charge-offs
|
9,002
|
|
11,671
|
|
4,090
|
|
Recoveries:
|
|
|
|
|
|
|
Commercial
loans
|
2,017
|
|
724
|
|
955
|
|
Construction
loans- residential
|
16
|
|
1
|
|
46
|
|
Construction
loans- other
|
9
|
|
27
|
|
33
|
|
Real estate
loans (1)
|
2,577
|
|
1,749
|
|
359
|
|
Real estate-
land loans
|
3
|
|
896
|
|
9
|
|
Total recoveries
|
4,622
|
|
3,397
|
|
1,402
|
|
Net
charge-offs
|
$
4,380
|
|
$
8,274
|
|
$
2,688
|
|
|
|
|
|
|
|
|
(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), gains (losses) on loan sales, wire transfer fees, and
other sources of fee income, was $14.6
million for the first quarter of 2014, a decrease of
$322,000, or 2.2%, compared to
$14.9 million for the first quarter
of 2013. The decrease in non-interest income in the first quarter
of 2014 was primarily due to decreases of $438,000 in gains on sale of loans and of
$332,000 in gains on sale of
securities partially offset by an increase of $304,000 in commissions from wealth
management.
Non-interest expense
Non-interest expense decreased $1.0
million, or 2.2%, to $48.1
million in the first quarter of 2014 compared to
$49.1 million in the same quarter a
year ago. The efficiency ratio was 49.44% in the first
quarter of 2014 compared to 51.71% for the same quarter a year
ago.
Prepayment penalties decreased $2.2
million to $3.4 million in the
first quarter of 2014 compared to $5.6
million in the same quarter a year ago. The Company
prepaid $100.0 million of securities
sold under agreements to repurchase in the first quarter of 2014
compared to $100.0 million in the
same period a year ago. Amortization of core deposit premium
decreased $1.2 million to
$172,000 in the first quarter of 2014
compared to $1.4 million in the same
quarter a year ago as a result of the full amortization of the core
deposit premium from the General Bank acquisition. Other
professional services expenses decreased $661,000 due to the completion of core system
conversion in 2013. Offsetting the above decreases were a
$1.0 million increase in litigation
expense, a $741,000 increase in
operations of affordable housing investments primarily due to
new investments, a $598,000 increase
in salaries and employee benefits primarily due to higher bonus
accruals and amortization of long term incentive compensation
awards, and a $416,000 increase in
FDIC and state assessments.
Income taxes
The effective tax rate for the first quarter of 2014 was 36.4%
compared to 36.9% for the first quarter of 2013. The
effective tax rate includes the impact of the utilization of low
income housing tax credits.
BALANCE SHEET REVIEW
Gross loans were $8.30 billion at
March 31, 2014, an increase of
$217.7 million, or 2.7%, from
$8.08 billion at December 31, 2013, primarily due to increases of
$169.9 million, or 4.2%, in
commercial mortgage loans, $86.0
million, or 6.3%, in residential mortgage loans, and
$32.1 million, or 14.5%, in real
estate construction loans, offset by a decrease of $68.8 million, or 3.0%, in commercial
loans. The changes in loan balances and composition from
December 31, 2013, are presented
below:
Type of
Loans
|
March 31,
2014
|
|
December 31,
2013
|
|
%
Change
|
|
(Dollars in
thousands)
|
|
|
Commercial
loans
|
$
2,229,880
|
|
$
2,298,724
|
|
(3)
|
Residential mortgage
loans
|
1,441,230
|
|
1,355,255
|
|
6
|
Commercial mortgage
loans
|
4,192,987
|
|
4,023,051
|
|
4
|
Equity
lines
|
172,395
|
|
171,277
|
|
1
|
Real estate
construction loans
|
253,832
|
|
221,701
|
|
14
|
Installment &
other loans
|
11,958
|
|
14,555
|
|
(18)
|
|
|
|
|
|
|
Gross
loans
|
$
8,302,282
|
|
$
8,084,563
|
|
3
|
|
|
|
|
|
|
Allowance for loan
losses
|
(169,138)
|
|
(173,889)
|
|
(3)
|
Unamortized deferred
loan fees
|
(12,936)
|
|
(13,487)
|
|
(4)
|
|
|
|
|
|
|
Total loans,
net
|
$
8,120,208
|
|
$
7,897,187
|
|
3
|
Total deposits were $8.23 billion
at March 31, 2014, an increase of
$251.3 million, or 3.1%, from
$7.98 billion at December 31, 2013, primarily due to a
$145.1 million, or 15.6%, increase in
time deposits under $100,000, a
$50.8 million, or 1.6%, increase in
time deposits of $100,000 or more, a
$46.9 million, or 3.3%, increase in
non-interest bearing demand deposits, and a $24.4 million, or 4.9%, increase in saving
deposits, offset by a $24.9 million,
or 1.9%, decrease in money market deposits. The changes in
deposit balances and composition from December 31, 2013, are presented below:
Deposits
|
March 31,
2014
|
|
December 31,
2013
|
|
%
Change
|
|
(Dollars in
thousands)
|
|
|
Non-interest-bearing
demand deposits
|
$
1,488,720
|
|
$
1,441,858
|
|
3
|
NOW
deposits
|
692,925
|
|
683,873
|
|
1
|
Money market
deposits
|
1,261,419
|
|
1,286,338
|
|
(2)
|
Savings
deposits
|
523,950
|
|
499,520
|
|
5
|
Time deposits under
$100,000
|
1,076,329
|
|
931,204
|
|
16
|
Time deposits of
$100,000 or more
|
3,189,282
|
|
3,138,512
|
|
2
|
Total
deposits
|
$
8,232,625
|
|
$
7,981,305
|
|
3
|
ASSET QUALITY REVIEW
At March 31, 2014, total
non-accrual loans were $70.4 million,
a decrease of $29.9 million, or
29.8%, from $100.3 million at
March 31, 2013, and a decrease of
$12.8 million, or 15.4%, from
$83.2 million at December 31, 2013.
The allowance for loan losses was $169.2
million and the allowance for off-balance sheet unfunded
credit commitments was $1.7 million
at March 31, 2014, which represented
the amount believed by management to be sufficient to absorb credit
losses inherent in the loan portfolio, including unfunded
commitments. The allowance for credit losses, which is the
sum of the allowances for loan losses and for off-balance sheet
unfunded credit commitments, was $170.9
million at March 31, 2014,
compared to $175.3 million at
December 31, 2013, a decrease of
$4.4 million, or 2.5%. The
allowance for credit losses represented 2.06% of period-end gross
loans and 239.4% of non-performing loans at March 31, 2014. The comparable ratios were
2.17% of period-end gross loans and 208.2% of non-performing loans
at December 31, 2013. The
changes in the Company's non-performing assets and troubled debt
restructurings at March 31, 2014,
compared to December 31, 2013, and to
March 31, 2013, are highlighted
below:
(Dollars in thousands)
|
March 31,
2014
|
|
December 31,
2013
|
|
% Change
|
|
March 31,
2013
|
|
% Change
|
Non-performing assets
|
|
|
|
|
|
|
|
|
|
Accruing loans past
due 90 days or more
|
$
974
|
|
$
982
|
|
(1)
|
|
$
800
|
|
22
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
|
Construction-
residential loans
|
3,313
|
|
3,313
|
|
-
|
|
3,271
|
|
1
|
Construction-
non-residential loans
|
24,729
|
|
25,273
|
|
(2)
|
|
32,966
|
|
(25)
|
Land
loans
|
6,502
|
|
6,502
|
|
-
|
|
8,325
|
|
(22)
|
Commercial
real estate loans, excluding land loans
|
10,540
|
|
13,119
|
|
(20)
|
|
30,896
|
|
(66)
|
Commercial
loans
|
13,806
|
|
21,232
|
|
(35)
|
|
13,192
|
|
5
|
Residential
mortgage loans
|
11,498
|
|
13,744
|
|
(16)
|
|
11,679
|
|
(2)
|
Total non-accrual
loans:
|
$
70,388
|
|
$
83,183
|
|
(15)
|
|
$
100,329
|
|
(30)
|
Total
non-performing loans
|
71,362
|
|
84,165
|
|
(15)
|
|
101,129
|
|
(29)
|
Other real estate
owned
|
44,853
|
|
52,985
|
|
(15)
|
|
45,316
|
|
(1)
|
Total
non-performing assets
|
$
116,215
|
|
$
137,150
|
|
(15)
|
|
$
146,445
|
|
(21)
|
Accruing troubled
debt restructurings (TDRs)
|
$
118,922
|
|
$
117,597
|
|
1
|
|
$
130,215
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
$
169,138
|
|
$
173,889
|
|
(3)
|
|
$
178,692
|
|
(5)
|
Allowance for
off-balance sheet credit commitments
|
1,734
|
|
1,362
|
|
27
|
|
3,304
|
|
(48)
|
Allowance for credit
losses
|
$
170,872
|
|
$
175,251
|
|
(2)
|
|
$
181,996
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
Total gross loans
outstanding, at period-end
|
$
8,302,282
|
|
$
8,084,563
|
|
3
|
|
$
7,364,340
|
|
13
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses to non-performing loans, at period-end
|
237.01%
|
|
206.60%
|
|
|
|
176.70%
|
|
|
Allowance for loan
losses to gross loans, at period-end
|
2.04%
|
|
2.15%
|
|
|
|
2.43%
|
|
|
Allowance for credit
losses to gross loans, at period-end
|
2.06%
|
|
2.17%
|
|
|
|
2.47%
|
|
|
Troubled debt restructurings on accrual status totaled
$118.9 million at March 31, 2014, compared to $117.6 million at December
31, 2013. These loans are classified as troubled debt
restructurings as a result of granting a concession to
borrowers. 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.
The ratio of non-performing assets to total assets was 1.0% at
March 31, 2014, compared to 1.3% at
December 31, 2013. Total
non-performing assets decreased $20.9
million, or 15.3%, to $116.2
million at March 31, 2014,
compared to $137.2 million at
December 31, 2013, primarily due to a
$12.8 million, or 15.4%, decrease in
non-accrual loans and a $8.1 million,
or 15.3%, decrease in other real estate owned.
CAPITAL ADEQUACY REVIEW
At March 31, 2014, the Company's
Tier 1 risk-based capital ratio of 14.96%, total risk-based capital
ratio of 16.28%, and Tier 1 leverage capital ratio of 12.70%,
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, 2013, the Company's Tier
1 risk-based capital ratio was 15.04%, total risk-based capital
ratio was 16.35%, and Tier 1 leverage capital ratio was 12.48%.
CONFERENCE CALL
Cathay General Bancorp will host a conference call this
afternoon to discuss its first quarter 2014 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
1-866-202-3048 and enter Participant Passcode 62491494. 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 32 branches in
California, nine 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 Nevada, 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," "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 U.S. and international business and
economic conditions; 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 (the "Dodd-Frank 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; environmental liabilities; our
ability to compete with larger competitors; our ability to retain
key personnel; successful management of reputational risk; natural
disasters 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; and the soundness of other financial
institutions.
These and other factors are further described in Cathay General
Bancorp's Annual Report on Form 10-K for the year ended
December 31, 2013 (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
March 31,
|
|
|
(Dollars in
thousands, except per share data)
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
|
|
|
|
FINANCIAL
PERFORMANCE
|
|
|
|
|
|
|
Net interest income
before provision for credit
losses
|
|
$
82,658
|
|
$
80,132
|
|
3
|
Provision for credit
losses
|
|
-
|
|
-
|
|
-
|
Net interest income
after provision for credit losses
|
|
82,658
|
|
80,132
|
|
3
|
Non-interest
income
|
|
14,559
|
|
14,881
|
|
(2)
|
Non-interest
expense
|
|
48,068
|
|
49,128
|
|
(2)
|
Income before income
tax expense
|
|
49,149
|
|
45,885
|
|
7
|
Income tax
expense
|
|
17,890
|
|
16,887
|
|
6
|
Net income
|
|
31,259
|
|
28,998
|
|
8
|
Net income
attributable to noncontrolling interest
|
|
-
|
|
151
|
|
(100)
|
Net income
attributable to Cathay General Bancorp
|
|
$
31,259
|
|
$
28,847
|
|
8
|
Dividends on
preferred stock and noncash charge from repayment
|
-
|
|
(5,184)
|
|
(100)
|
Net income
attributable to common stockholders
|
|
$
31,259
|
|
$
23,663
|
|
32
|
|
|
|
|
|
|
|
Net income
attributable to common stockholders per common share:
|
|
|
|
|
|
Basic
|
|
$
0.39
|
|
$
0.30
|
|
30
|
Diluted
|
|
$
0.39
|
|
$
0.30
|
|
30
|
|
|
|
|
|
|
|
Cash dividends
paid per common share
|
|
$
0.05
|
|
$
0.01
|
|
400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
RATIOS
|
|
|
|
|
|
|
Return on average
assets
|
|
1.19%
|
|
1.12%
|
|
6
|
Return on average
total stockholders' equity
|
|
8.53%
|
|
7.20%
|
|
18
|
Efficiency
ratio
|
|
49.44%
|
|
51.71%
|
|
(4)
|
Dividend payout
ratio
|
|
12.73%
|
|
2.73%
|
|
366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELD ANALYSIS
(Fully taxable equivalent)
|
|
|
|
|
|
|
Total
interest-earning assets
|
|
4.14%
|
|
4.26%
|
|
(3)
|
Total
interest-bearing liabilities
|
|
0.99%
|
|
1.18%
|
|
(16)
|
Net interest
spread
|
|
3.15%
|
|
3.08%
|
|
2
|
Net interest
margin
|
|
3.38%
|
|
3.35%
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS
|
|
March 31,
2014
|
|
March 31,
2013
|
|
December 31,
2013
|
Tier 1 risk-based
capital ratio
|
|
14.96%
|
|
16.38%
|
|
15.04%
|
Total risk-based
capital ratio
|
|
16.28%
|
|
18.16%
|
|
16.35%
|
Tier 1 leverage
capital ratio
|
|
12.70%
|
|
13.06%
|
|
12.48%
|
|
|
|
|
|
|
|
CATHAY
GENERAL BANCORP
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
(In thousands, except
share and per share data)
|
|
March 31,
2014
|
|
December 31,
2013
|
|
% change
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
161,657
|
|
$
153,747
|
|
5
|
Short-term
investments and interest bearing deposits
|
|
620,306
|
|
516,938
|
|
20
|
Securities
available-for-sale (amortized cost of $1,617,014 in 2014 and
$1,637,965 in 2013)
|
|
|
|
|
|
|
|
1,578,897
|
|
1,586,668
|
|
(0)
|
Trading
securities
|
|
-
|
|
4,936
|
|
(100)
|
Loans
|
|
8,302,282
|
|
8,084,563
|
|
3
|
Less: Allowance
for loan losses
|
|
(169,138)
|
|
(173,889)
|
|
(3)
|
Unamortized
deferred loan fees, net
|
|
(12,936)
|
|
(13,487)
|
|
(4)
|
Loans,
net
|
|
8,120,208
|
|
7,897,187
|
|
3
|
Federal Home Loan
Bank stock
|
|
29,901
|
|
25,000
|
|
20
|
Other real estate
owned, net
|
|
44,853
|
|
52,985
|
|
(15)
|
Affordable housing
investments, net
|
|
89,303
|
|
84,108
|
|
6
|
Premises and
equipment, net
|
|
102,340
|
|
102,045
|
|
0
|
Customers' liability
on acceptances
|
|
23,677
|
|
32,194
|
|
(26)
|
Accrued interest
receivable
|
|
25,237
|
|
24,274
|
|
4
|
Goodwill
|
|
316,340
|
|
316,340
|
|
-
|
Other intangible
assets, net
|
|
2,051
|
|
2,230
|
|
(8)
|
Other
assets
|
|
176,418
|
|
190,634
|
|
(7)
|
|
|
|
|
|
|
|
Total
assets
|
|
$
11,291,188
|
|
$
10,989,286
|
|
3
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
Non-interest-bearing
demand deposits
|
|
$
1,488,720
|
|
$
1,441,858
|
|
3
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
NOW
deposits
|
|
692,925
|
|
683,873
|
|
1
|
Money market
deposits
|
|
1,261,419
|
|
1,286,338
|
|
(2)
|
Savings
deposits
|
|
523,950
|
|
499,520
|
|
5
|
Time deposits under
$100,000
|
|
1,076,329
|
|
931,204
|
|
16
|
Time deposits of
$100,000 or more
|
|
3,189,282
|
|
3,138,512
|
|
2
|
Total
deposits
|
|
8,232,625
|
|
7,981,305
|
|
3
|
|
|
|
|
|
|
|
Securities sold under
agreements to repurchase
|
|
700,000
|
|
800,000
|
|
(13)
|
Advances from the
Federal Home Loan Bank
|
|
636,200
|
|
521,200
|
|
22
|
Other borrowings for
affordable housing investments
|
|
19,025
|
|
19,062
|
|
(0)
|
Long-term
debt
|
|
121,136
|
|
121,136
|
|
-
|
Acceptances
outstanding
|
|
23,677
|
|
32,194
|
|
(26)
|
Other
liabilities
|
|
64,124
|
|
55,418
|
|
16
|
Total
liabilities
|
|
9,796,787
|
|
9,530,315
|
|
3
|
Commitments and
contingencies
|
|
-
|
|
-
|
|
-
|
Stockholders'
Equity
|
|
|
|
|
|
|
Common stock, $0.01
par value, 100,000,000 shares authorized,
83,827,123 issued and
79,619,558 outstanding at March 31, 2014, and
83,797,434 issued and
79,589,869 outstanding at December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
838
|
|
838
|
|
-
|
Additional
paid-in-capital
|
|
785,002
|
|
784,489
|
|
0
|
Accumulated other
comprehensive loss, net
|
|
(22,091)
|
|
(29,729)
|
|
(26)
|
Retained
earnings
|
|
856,388
|
|
829,109
|
|
3
|
Treasury stock, at
cost (4,207,565 shares at March 31, 2014, and at December 31, 2013)
|
|
|
|
|
|
|
|
(125,736)
|
|
(125,736)
|
|
-
|
|
|
|
|
|
|
|
Total
equity
|
|
1,494,401
|
|
1,458,971
|
|
2
|
Total liabilities and
equity
|
|
$
11,291,188
|
|
$
10,989,286
|
|
3
|
|
|
|
|
|
|
|
Book value per common
share
|
|
$18.70
|
|
$18.24
|
|
3
|
Number of common
shares outstanding
|
|
79,619,558
|
|
79,589,869
|
|
0
|
CATHAY
GENERAL BANCORP
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
|
Three months ended
March 31,
|
|
|
|
2014
|
2013
|
|
|
|
(In thousands, except
share and per share data)
|
INTEREST AND
DIVIDEND INCOME
|
|
|
|
|
Loan receivable,
including loan fees
|
|
$
92,732
|
$
88,840
|
|
Investment
securities- taxable
|
|
7,576
|
11,786
|
|
Investment
securities- nontaxable
|
|
-
|
967
|
|
Federal Home Loan
Bank stock
|
|
450
|
250
|
|
Deposits with
banks
|
|
449
|
208
|
|
|
|
|
|
|
Total interest and
dividend income
|
|
101,207
|
102,051
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
Time deposits of
$100,000 or more
|
|
6,664
|
6,757
|
|
Other
deposits
|
|
4,028
|
2,766
|
|
Securities sold under
agreements to repurchase
|
|
6,930
|
11,392
|
|
Advances from Federal
Home Loan Bank
|
|
199
|
80
|
|
Long-term
debt
|
|
728
|
924
|
|
|
|
|
|
|
Total interest
expense
|
|
18,549
|
21,919
|
|
|
|
|
|
|
Net interest income
before provision for credit losses
|
|
82,658
|
80,132
|
|
Provision for credit
losses
|
|
-
|
-
|
|
|
|
|
|
|
Net interest income
after provision for credit losses
|
|
82,658
|
80,132
|
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
Securities gains,
net
|
|
5,960
|
6,292
|
|
Letters of credit
commissions
|
|
1,468
|
1,461
|
|
Depository service
fees
|
|
1,363
|
1,474
|
|
Other operating
income
|
|
5,768
|
5,654
|
|
|
|
|
|
|
Total non-interest
income
|
|
14,559
|
14,881
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
Salaries and employee
benefits
|
|
23,451
|
22,853
|
|
Occupancy
expense
|
|
3,862
|
3,644
|
|
Computer and
equipment expense
|
|
2,302
|
2,676
|
|
Professional services
expense
|
|
5,156
|
5,817
|
|
FDIC and State
assessments
|
|
2,154
|
1,738
|
|
Marketing
expense
|
|
564
|
437
|
|
Other real estate
owned expense
|
|
759
|
623
|
|
Operations of
affordable housing investments
|
|
2,436
|
1,695
|
|
Amortization of core
deposit intangibles
|
|
172
|
1,396
|
|
Cost associated with
debt redemption
|
|
3,376
|
5,645
|
|
Other operating
expense
|
|
3,836
|
2,604
|
|
|
|
|
|
|
Total non-interest
expense
|
|
48,068
|
49,128
|
|
|
|
|
|
|
Income before income
tax expense
|
|
49,149
|
45,885
|
|
Income tax
expense
|
|
17,890
|
16,887
|
|
Net income
|
|
31,259
|
28,998
|
|
Less: net income
attributable to noncontrolling interest
|
|
-
|
151
|
|
Net income
attributable to Cathay General Bancorp
|
|
31,259
|
28,847
|
|
|
|
|
|
|
Dividends on
preferred stock and noncash charge from repayment
|
|
-
|
(5,184)
|
|
Net income
attributable to common stockholders
|
|
$
31,259
|
$
23,663
|
|
|
|
|
|
|
Net income
attributable to common stockholders per common share:
|
|
|
|
|
Basic
|
|
$
0.39
|
$
0.30
|
|
Diluted
|
|
$
0.39
|
$
0.30
|
|
|
|
|
|
|
Cash dividends paid
per common share
|
|
$
0.05
|
$
0.01
|
|
Basic average common
shares outstanding
|
|
79,595,757
|
78,795,564
|
|
Diluted average
common shares outstanding
|
|
80,039,382
|
78,815,141
|
|
CATHAY
GENERAL BANCORP
|
AVERAGE BALANCES –
SELECTED CONSOLIDATED FINANCIAL INFORMATION
|
(Unaudited)
|
|
|
Three months
ended,
|
|
(In
thousands)
|
March 31,
2014
|
|
March 31,
2013
|
|
December 31,
2013
|
|
|
|
|
|
|
|
|
|
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 (1)
|
$
8,157,186
|
4.61%
|
|
$
7,386,866
|
4.88%
|
|
$
7,945,343
|
4.61%
|
Taxable investment
securities
|
1,581,642
|
1.94%
|
|
2,006,091
|
2.38%
|
|
1,683,358
|
1.99%
|
Tax-exempt investment
securities (2)
|
|
-
|
|
124,182
|
4.86%
|
|
-
|
-
|
FHLB stock
|
25,054
|
7.30%
|
|
41,041
|
2.47%
|
|
26,801
|
6.50%
|
Deposits with
banks
|
148,241
|
1.23%
|
|
196,615
|
0.43%
|
|
190,092
|
0.74%
|
|
|
|
|
|
|
|
|
|
Total
interest-earning assets
|
$
9,912,123
|
4.14%
|
|
$
9,754,795
|
4.26%
|
|
$
9,845,594
|
4.09%
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
$
682,765
|
0.16%
|
|
$
600,110
|
0.16%
|
|
$
667,005
|
0.16%
|
Money market
deposits
|
1,275,726
|
0.61%
|
|
1,164,125
|
0.55%
|
|
1,323,759
|
0.61%
|
Savings
deposits
|
498,390
|
0.07%
|
|
466,952
|
0.08%
|
|
504,411
|
0.08%
|
Time
deposits
|
4,171,061
|
0.82%
|
|
3,878,847
|
0.80%
|
|
4,047,956
|
0.81%
|
Total
interest-bearing deposits
|
$
6,627,942
|
0.65%
|
|
$
6,110,034
|
0.63%
|
|
$
6,543,131
|
0.65%
|
Securities sold under
agreements to repurchase
|
707,222
|
3.97%
|
|
1,197,222
|
3.86%
|
|
800,000
|
3.92%
|
Other borrowed
funds
|
175,252
|
0.46%
|
|
48,807
|
0.66%
|
|
87,746
|
0.69%
|
Long-term
debt
|
121,136
|
2.44%
|
|
171,136
|
2.19%
|
|
164,614
|
2.20%
|
Total
interest-bearing liabilities
|
7,631,552
|
0.99%
|
|
7,527,199
|
1.18%
|
|
7,595,491
|
1.03%
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
demand deposits
|
1,445,269
|
|
|
1,221,552
|
|
|
1,448,044
|
|
|
|
|
|
|
|
|
|
|
Total deposits and
other borrowed funds
|
$
9,076,821
|
|
|
$
8,748,751
|
|
|
$
9,043,535
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
$
10,645,980
|
|
|
$
10,464,464
|
|
|
$
10,612,221
|
|
Total average
equity
|
$
1,486,205
|
|
|
$
1,632,773
|
|
|
$
1,463,034
|
|
|
|
|
|
|
|
|
|
|
(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