LOS ANGELES, Oct. 16, 2019 /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, 2019. The Company reported net
income of $72.8 million, or
$0.91 per share, for the third
quarter of 2019.
FINANCIAL PERFORMANCE
|
Three months
ended
|
(unaudited)
|
September 30,
2019
|
|
June 30,
2019
|
|
September 30,
2018
|
Net income
|
$72.8
million
|
|
$72.2
million
|
|
$69.8
million
|
Basic earnings per
common share
|
$0.91
|
|
$0.90
|
|
$0.86
|
Diluted earnings per
common share
|
$0.91
|
|
$0.90
|
|
$0.85
|
Return on average
assets
|
1.65%
|
|
1.69%
|
|
1.72%
|
Return on average
total stockholders' equity
|
12.98%
|
|
13.27%
|
|
13.19%
|
Efficiency
ratio
|
41.67%
|
|
44.53%
|
|
43.14%
|
THIRD QUARTER HIGHLIGHTS
- Total loans, including loans held for sale, increased
$171.8 million, or 4.9% annualized,
to $14.8 billion for the
quarter.
- Total deposits increased $295.3
million, or 8.6% annualized, to $14.7
billion for the quarter.
"In the third quarter of 2019, our total loans increased
$171.8 million, or 4.9% annualized,
to $14.8 billion. We are pleased by
the $295.3 million increase, or 8.6%
annualized, in total deposits for the quarter," commented Pin Tai,
Chief Executive Officer of the Company.
THIRD QUARTER INCOME STATEMENT REVIEW
Net income for the quarter ended September 30, 2019, was $72.8 million, an increase of $3.0 million, or 4.3%, compared to net income of
$69.8 million for the same quarter a
year ago. Diluted earnings per share for the quarter ended
September 30, 2019, was $0.91 compared to $0.85 for the same quarter a year ago.
Return on average stockholders' equity was 12.98% and return on
average assets was 1.65% for the quarter ended September 30, 2019, compared to a return on
average stockholders' equity of 13.19% and a return on average
assets of 1.72% for the same quarter a year ago.
Net interest income before provision for credit
losses
Net interest income before provision for credit losses increased
$1.9 million, or 1.3%, to
$147.0 million during the third
quarter of 2019, compared to $145.1
million during the same quarter a year ago. The increase was
due primarily to a $3.1 million
increase in interest recoveries and prepayment penalties, offset in
part by an increase in interest expense from time deposits.
The net interest margin was 3.56% for the third quarter of 2019
compared to 3.83% for the third quarter of 2018 and 3.58% for the
second quarter of 2019.
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%. In comparison, for the third
quarter of 2018, the yield on average interest-earning assets was
4.67%, the cost of funds on average interest-bearing liabilities
was 1.15%, and the cost of interest-bearing deposits was 1.05%. The
increase in the yield on average interest-earning assets resulted
primarily from the higher interest recoveries and prepayment
penalties discussed above. 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
3.15% for the quarter ended September 30,
2019, compared to 3.52% for the same quarter a year ago.
Provision/(reversal) for credit losses
The Company recorded a reversal for credit losses of
$2.0 million in the third quarter of
2019 compared to a reversal of $1.5
million in the same quarter a year ago. The reversal for
credit losses was based on our management's review of the
appropriateness of the allowance for loan losses at September 30, 2019 and September 30, 2018. The following table
summarizes the charge-offs and recoveries for the periods
indicated:
|
Three months
ended
|
|
Nine months ended
September 30,
|
|
September 30,
2019
|
|
June 30,
2019
|
|
September 30,
2018
|
|
2019
|
|
2018
|
|
(In thousands)
(Unaudited)
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
Commercial
loans
|
$ 3,356
|
|
$ 1,713
|
|
$ 122
|
|
$ 6,300
|
|
$ 629
|
Real estate
loans (1)
|
-
|
|
-
|
|
-
|
|
-
|
|
390
|
Total
charge-offs
|
3,356
|
|
1,713
|
|
122
|
|
6,300
|
|
1,019
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
Commercial
loans
|
211
|
|
1,356
|
|
187
|
|
1,609
|
|
1,250
|
Construction
loans
|
-
|
|
30
|
|
44
|
|
1,073
|
|
132
|
Real estate
loans(1)
|
8,401
|
|
423
|
|
2,949
|
|
9,134
|
|
4,315
|
Total
recoveries
|
8,612
|
|
1,809
|
|
3,180
|
|
11,816
|
|
5,697
|
Net
(recoveries)/charge-offs
|
$ (5,256)
|
|
$ (96)
|
|
$ (3,058)
|
|
$ (5,516)
|
|
$ (4,678)
|
|
|
|
|
|
|
|
|
|
|
(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, equity securities
gains (losses), wire transfer fees, and other sources of fee
income, was $10.4 million for the
third quarter of 2019, an increase of $2.6
million, or 33.3%, compared to $7.8
million for the third quarter of 2018. The increase was
primarily due to an increase of $1.5
million in the valuation of interest rate swap contracts and
an increase of $0.8 million from the
sale of residential mortgages, when compared to the same quarter a
year ago.
Non-interest expense
Non-interest expense decreased $0.4
million, or 0.6%, to $65.6
million in the third quarter of 2019 compared to
$66.0 million in the same quarter a
year ago. The decrease was primarily due to a $4.1 million decrease in the amortization of low
income housing and alternative energy partnerships which was
partially offset by a $1.4 million
increase in salary and employee benefits and a $1.2 million increase in marketing expense, when
compared to the same quarter a year ago. The efficiency ratio was
41.67% in the third quarter of 2019 compared to 43.1% for the same
quarter a year ago.
Income taxes
The effective tax rate for the third quarter of 2019 was 22.4%
compared to 21.1% for the third quarter of 2018. The income tax
expense for the third quarter of 2019 included a $1.4 million adjustment to reflect the impact of
the delay in installation of solar systems and $0.8 million adjustment for lower than expected
low income housing tax credits. The effective tax rate for both
quarters includes the impact of low-income housing and alternative
energy investment tax credits.
BALANCE SHEET REVIEW
Gross loans, including loans held for sale, were $14.8 billion at September
30, 2019, an increase of $769.5
million, or 5.5%, from $14.0
billion at December 31, 2018.
The increase was primarily due to increases of $353.7 million, or 9.6%, in residential mortgage
loans, including loans held for sale, $411.4
million, or 6.1%, in commercial mortgage loans, $65.3 million, or 26.1%, in home equity loans,
and $12.4 million, or 2.1%, in real
estate construction loans, offset by a decrease of $73.9 million, or 2.7%, in commercial loans. The
loan balances and composition at September
30, 2019, compared to December 31,
2018 and September 30, 2018,
are presented below:
|
September 30,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
(In thousands)
(Unaudited)
|
Commercial
loans
|
$
2,668,061
|
|
$
2,741,965
|
|
$
2,674,089
|
Residential mortgage
loans
|
4,010,739
|
|
3,693,853
|
|
3,569,111
|
Commercial mortgage
loans
|
7,135,599
|
|
6,724,200
|
|
6,580,254
|
Equity
lines
|
315,252
|
|
249,967
|
|
221,599
|
Real estate
construction loans
|
593,816
|
|
581,454
|
|
597,018
|
Installment and other
loans
|
5,087
|
|
4,349
|
|
5,575
|
Gross
loans
|
$
14,728,554
|
|
$
13,995,788
|
|
$
13,647,646
|
|
|
|
|
|
|
Allowance for loan
losses
|
(125,908)
|
|
(122,391)
|
|
(123,457)
|
Unamortized deferred
loan fees
|
(1,081)
|
|
(1,565)
|
|
(2,086)
|
Total loans,
net
|
$
14,601,565
|
|
$
13,871,832
|
|
$
13,522,103
|
|
|
|
|
|
|
Loans held for
sale
|
$ 36,778
|
|
$ -
|
|
$ -
|
Total deposits were $14.7 billion
at September 30, 2019, an increase of
$955.9 million, or 7.0%, from
$13.7 billion at December 31, 2018. The deposit balances and
composition at September 30, 2019,
compared to December 31, 2018 and
September 30, 2018, are presented
below:
|
September 30,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
(In thousands)
(Unaudited)
|
Non-interest-bearing
demand deposits
|
$
2,939,924
|
|
$
2,857,443
|
|
$
2,957,881
|
NOW
deposits
|
1,282,267
|
|
1,365,763
|
|
1,409,463
|
Money market
deposits
|
2,095,328
|
|
2,027,404
|
|
2,134,097
|
Savings
deposits
|
721,547
|
|
738,656
|
|
747,814
|
Time
deposits
|
7,619,203
|
|
6,713,074
|
|
6,331,823
|
Total
deposits
|
$
14,658,269
|
|
$
13,702,340
|
|
$
13,581,078
|
ASSET QUALITY REVIEW
At September 30, 2019, total
non-accrual loans were $47.2 million,
an increase of $5.4 million, or
12.9%, from $41.8 million at
December 31, 2018, and an increase of
$4.8 million, or 11.3%, from
$42.4 million at September 30, 2018.
The allowance for loan losses was $125.9
million and the allowance for off-balance sheet unfunded
credit commitments was $4.6 million
at September 30, 2019, which
represented the amount believed by management to be appropriate to
absorb credit losses inherent in the loan portfolio, including
unfunded credit commitments. The $125.9
million allowance for loan losses at September 30, 2019, increased $3.5 million, or 2.9%, from $122.4 million at December
31, 2018. The allowance for loan losses represented 0.85% of
period-end gross loans, and 263.0% of non-performing loans at
September 30, 2019. The comparable
ratios were 0.87% of period-end gross loans, and 268.5% of
non-performing loans at December 31,
2018. The changes in non-performing assets and troubled debt
restructurings at September 30, 2019,
compared to December 31, 2018 and
September 30, 2018, are shown
below:
(Dollars in
thousands) (Unaudited)
|
September 30,
2019
|
|
December 31,
2018
|
|
% Change
|
|
September 30,
2018
|
|
% Change
|
Non-performing
assets
|
|
|
|
|
|
|
|
|
|
Accruing loans past
due 90 days or more
|
$ 683
|
|
$ 3,773
|
|
(82)
|
|
$ 6,681
|
|
(90)
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
|
Construction
loans
|
4,629
|
|
4,872
|
|
(5)
|
|
4,922
|
|
(6)
|
Commercial
mortgage loans
|
12,330
|
|
10,611
|
|
16
|
|
13,172
|
|
(6)
|
Commercial
loans
|
22,970
|
|
18,805
|
|
22
|
|
17,118
|
|
34
|
Residential
mortgage loans
|
7,271
|
|
7,527
|
|
(3)
|
|
7,199
|
|
1
|
Total non-accrual
loans:
|
$ 47,200
|
|
$ 41,815
|
|
13
|
|
$ 42,411
|
|
11
|
Total non-performing loans
|
47,883
|
|
45,588
|
|
5
|
|
49,092
|
|
(2)
|
Other real estate
owned
|
11,329
|
|
12,674
|
|
(11)
|
|
8,741
|
|
30
|
Total non-performing assets
|
$ 59,212
|
|
$ 58,262
|
|
2
|
|
$ 57,833
|
|
2
|
Accruing troubled
debt restructurings (TDRs)
|
$ 41,647
|
|
$ 65,071
|
|
(36)
|
|
$ 74,598
|
|
(44)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
$ 125,908
|
|
$ 122,391
|
|
3
|
|
$ 123,457
|
|
2
|
|
|
|
|
|
|
|
|
|
|
Total gross loans
outstanding, at period-end
|
$
14,728,554
|
|
$
13,995,788
|
|
5
|
|
$
13,647,646
|
|
8
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses to non-performing loans, at period-end
|
262.95%
|
|
268.47%
|
|
|
|
251.48%
|
|
|
Allowance for loan
losses to gross loans, at period-end
|
0.85%
|
|
0.87%
|
|
|
|
0.90%
|
|
|
The ratio of non-performing assets to total assets was 0.3% at
September 30, 2019, and December 31, 2018. Total non-performing assets
increased $0.9 million, or 1.5%, to
$59.2 million at September 30, 2019, compared to $58.3 million at December
31, 2018, primarily due to an increase of $5.4 million, or 12.9%, in non-accrual loans,
offset in part by a decrease of $1.3
million, or 10.6%, in other real estate owned and a decrease
of $3.1 million, or 81.9%, in
accruing loans past due 90 days or more.
CAPITAL ADEQUACY REVIEW
At September 30, 2019, the
Company's Tier 1 risk-based capital ratio of 12.41%, total
risk-based capital ratio of 14.06%, and Tier 1 leverage capital
ratio of 10.81%, 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, 2018, the Company's Tier
1 risk-based capital ratio was 12.43%, total risk-based capital
ratio was 14.15%, and Tier 1 leverage capital ratio was 10.83%.
During the third quarter of 2019, the Company repurchased
135,000 shares of common stock at an average cost of $34.76.
YEAR-TO-DATE REVIEW
Net income for the nine months ended September 30, 2019, was $211.8 million, an increase of $4.6 million, or 2.2%, compared to net income of
$207.2 million for the same period a
year ago. Diluted earnings per share was $2.64 for the nine months ended September 30, 2019, compared to $2.53 per share for the same period a year ago.
The net interest margin for the nine months ended September 30, 2019 was 3.61%, compared to 3.80%
for the same period a year ago.
Return on average stockholders' equity was 12.94% and return on
average assets was 1.65% for the nine months ended September 30, 2019, compared to a return on
average stockholders' equity of 13.56% and a return on average
assets of 1.75% for the same period a year ago. The efficiency
ratio for the nine months ended September
30, 2019 was 43.87%, compared to 43.05% for the same period
a year ago.
CONFERENCE CALL
Cathay General Bancorp will host a conference call this
afternoon to discuss its third quarter 2019 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
1-855-761-3186 and enter Conference ID 7658775. 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 found at
www.cathaybank.com. Cathay General Bancorp's website is found 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 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;
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 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; our ability to consummate and realize the anticipated
benefits of our acquisitions; the risk that integration of business
operations following any acquisitions, will be materially delayed
or will be more costly or difficult than expected; 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, 2018 (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
CONSOLIDATED
FINANCIAL HIGHLIGHTS
(Unaudited)
|
|
|
|
Three months
ended
|
|
Nine months ended
September 30,
|
(Dollars in
thousands, except per share data)
|
|
September 30,
2019
|
|
June 30,
2019
|
|
September 30,
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
PERFORMANCE
|
|
|
|
|
|
|
|
|
|
|
Net interest income
before provision for credit losses
|
|
$ 147,000
|
|
$ 143,379
|
|
$ 145,084
|
|
$ 433,695
|
|
$ 420,458
|
Reversal for credit
losses
|
|
(2,000)
|
|
-
|
|
(1,500)
|
|
(2,000)
|
|
(4,500)
|
Net interest income
after reversal for credit losses
|
|
149,000
|
|
143,379
|
|
146,584
|
|
435,695
|
|
424,958
|
Non-interest
income
|
|
10,388
|
|
12,794
|
|
7,835
|
|
36,103
|
|
20,912
|
Non-interest
expense
|
|
65,580
|
|
69,546
|
|
65,964
|
|
206,096
|
|
190,023
|
Income before income
tax expense
|
|
93,808
|
|
86,627
|
|
88,455
|
|
265,702
|
|
255,847
|
Income tax
expense
|
|
20,973
|
|
14,383
|
|
18,698
|
|
53,944
|
|
48,610
|
Net income
|
|
$ 72,835
|
|
$ 72,244
|
|
$ 69,757
|
|
$ 211,758
|
|
$ 207,237
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 0.91
|
|
$ 0.90
|
|
$ 0.86
|
|
$ 2.64
|
|
$ 2.55
|
Diluted
|
|
$ 0.91
|
|
$ 0.90
|
|
$ 0.85
|
|
$ 2.64
|
|
$ 2.53
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid
per common share
|
|
$ 0.31
|
|
$ 0.31
|
|
$ 0.24
|
|
$ 0.93
|
|
$ 0.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
RATIOS
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.65%
|
|
1.69%
|
|
1.72%
|
|
1.65%
|
|
1.75%
|
Return on average
total stockholders' equity
|
|
12.98%
|
|
13.27%
|
|
13.19%
|
|
12.94%
|
|
13.56%
|
Efficiency
ratio
|
|
41.67%
|
|
44.53%
|
|
43.14%
|
|
43.87%
|
|
43.05%
|
Dividend payout
ratio
|
|
33.92%
|
|
34.26%
|
|
28.00%
|
|
35.14%
|
|
28.23%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELD ANALYSIS
(Fully taxable equivalent)
|
|
|
|
|
|
|
|
|
|
|
Total
interest-earning assets
|
|
4.80%
|
|
4.81%
|
|
4.67%
|
|
4.82%
|
|
4.56%
|
Total
interest-bearing liabilities
|
|
1.65%
|
|
1.65%
|
|
1.15%
|
|
1.62%
|
|
1.03%
|
Net interest
spread
|
|
3.15%
|
|
3.16%
|
|
3.52%
|
|
3.20%
|
|
3.53%
|
Net interest
margin
|
|
3.56%
|
|
3.58%
|
|
3.83%
|
|
3.61%
|
|
3.80%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS
|
|
September 30,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
|
|
|
Tier 1 risk-based
capital ratio
|
|
12.41%
|
|
12.43%
|
|
12.81%
|
|
|
|
|
Total risk-based
capital ratio
|
|
14.06%
|
|
14.15%
|
|
14.60%
|
|
|
|
|
Tier 1 leverage
capital ratio
|
|
10.81%
|
|
10.83%
|
|
11.03%
|
|
|
|
|
|
|
.
|
|
|
|
|
|
.
|
|
|
CATHAY GENERAL
BANCORP
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
(In thousands, except
share and per share data)
|
|
September 30,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$ 257,189
|
|
$ 225,333
|
|
$ 204,178
|
Short-term
investments and interest bearing deposits
|
|
567,957
|
|
374,957
|
|
377,839
|
Securities
available-for-sale (amortized cost of $1,422,431 at September 30,
2019, $1,267,731 at December 31,
2018 and $1,320,843 at September 30, 2018)
|
|
1,427,438
|
|
1,242,509
|
|
1,283,060
|
Loans held for
sale
|
|
36,778
|
|
-
|
|
-
|
Loans
|
|
14,728,554
|
|
13,995,788
|
|
13,647,646
|
Less: Allowance for
loan losses
|
|
(125,908)
|
|
(122,391)
|
|
(123,457)
|
Unamortized deferred
loan fees, net
|
|
(1,081)
|
|
(1,565)
|
|
(2,086)
|
Loans, net
|
|
14,601,565
|
|
13,871,832
|
|
13,522,103
|
Equity
securities
|
|
32,862
|
|
25,098
|
|
23,522
|
Federal Home Loan
Bank stock
|
|
17,250
|
|
17,250
|
|
17,250
|
Other real estate
owned, net
|
|
11,329
|
|
12,674
|
|
8,741
|
Affordable housing
investments and alternative energy partnerships, net
|
|
321,929
|
|
282,734
|
|
295,857
|
Premises and
equipment, net
|
|
103,820
|
|
103,189
|
|
102,565
|
Customers' liability
on acceptances
|
|
12,503
|
|
22,709
|
|
10,454
|
Accrued interest
receivable
|
|
52,337
|
|
51,650
|
|
50,291
|
Goodwill
|
|
372,189
|
|
372,189
|
|
372,189
|
Other intangible
assets, net
|
|
6,821
|
|
7,194
|
|
7,391
|
Right-of-use assets-
operating leases
|
|
34,518
|
|
-
|
|
-
|
Other
assets
|
|
148,481
|
|
175,419
|
|
186,282
|
|
|
|
|
|
|
|
Total
assets
|
|
$
18,004,966
|
|
$
16,784,737
|
|
$
16,461,722
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
Non-interest-bearing
demand deposits
|
|
$
2,939,924
|
|
$
2,857,443
|
|
$
2,957,881
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
NOW
deposits
|
|
1,282,267
|
|
1,365,763
|
|
1,409,463
|
Money market
deposits
|
|
2,095,328
|
|
2,027,404
|
|
2,134,097
|
Savings
deposits
|
|
721,547
|
|
738,656
|
|
747,814
|
Time
deposits
|
|
7,619,203
|
|
6,713,074
|
|
6,331,823
|
Total
deposits
|
|
14,658,269
|
|
13,702,340
|
|
13,581,078
|
|
|
|
|
|
|
|
Advances from the
Federal Home Loan Bank
|
|
600,000
|
|
530,000
|
|
315,000
|
Other borrowings for
affordable housing investments
|
|
30,767
|
|
17,298
|
|
17,332
|
Long-term
debt
|
|
160,386
|
|
189,448
|
|
194,136
|
Deferred payments
from acquisition
|
|
7,602
|
|
18,458
|
|
18,253
|
Acceptances
outstanding
|
|
12,503
|
|
22,709
|
|
10,454
|
Lease liabilities -
operating leases
|
|
36,142
|
|
-
|
|
-
|
Other
liabilities
|
|
253,403
|
|
182,618
|
|
208,694
|
Total
liabilities
|
|
15,759,072
|
|
14,662,871
|
|
14,344,947
|
Stockholders'
equity
|
|
2,245,894
|
|
2,121,866
|
|
2,116,775
|
Total liabilities and
equity
|
|
$
18,004,966
|
|
$
16,784,737
|
|
$
16,461,722
|
|
|
|
|
|
|
|
Book value per common
share
|
|
$ 28.18
|
|
$ 26.36
|
|
$ 25.93
|
Number of common
shares outstanding
|
|
79,706,511
|
|
80,501,948
|
|
81,396,047
|
CATHAY GENERAL
BANCORP
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
Three months
ended
|
|
Nine months ended
September 30,
|
|
|
September 30,
2019
|
June 30,
2019
|
September 30,
2018
|
|
2019
|
2018
|
|
|
(In thousands, except
share and per share data)
|
INTEREST AND
DIVIDEND INCOME
|
|
|
|
|
|
|
|
Loan receivable,
including loan fees
|
|
$ 187,827
|
$ 182,291
|
$ 168,179
|
|
$ 548,395
|
$ 478,128
|
Investment
securities
|
|
8,687
|
8,477
|
7,546
|
|
24,454
|
21,212
|
Federal Home Loan
Bank stock
|
|
301
|
298
|
303
|
|
903
|
1,079
|
Deposits with
banks
|
|
1,016
|
1,383
|
838
|
|
4,289
|
3,667
|
|
|
|
|
|
|
|
|
Total interest and
dividend income
|
|
197,831
|
192,449
|
176,866
|
|
578,041
|
504,086
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
Time
deposits
|
|
40,378
|
39,491
|
22,135
|
|
113,992
|
56,593
|
Other
deposits
|
|
6,626
|
5,588
|
5,474
|
|
17,591
|
14,892
|
Securities sold under
agreements to repurchase
|
|
-
|
-
|
124
|
|
-
|
1,446
|
Advances from Federal
Home Loan Bank
|
|
1,786
|
1,792
|
1,430
|
|
6,174
|
3,286
|
Long-term
debt
|
|
1,948
|
2,007
|
2,220
|
|
6,087
|
6,465
|
Deferred payments
from acquisition
|
|
93
|
192
|
399
|
|
502
|
946
|
|
|
|
|
|
|
|
|
Total interest
expense
|
|
50,831
|
49,070
|
31,782
|
|
144,346
|
83,628
|
|
|
|
|
|
|
|
|
Net interest income
before reversal for credit losses
|
|
147,000
|
143,379
|
145,084
|
|
433,695
|
420,458
|
Reversal for credit
losses
|
|
(2,000)
|
-
|
(1,500)
|
|
(2,000)
|
(4,500)
|
|
|
|
|
|
|
|
|
Net interest income
after reversal for credit losses
|
|
149,000
|
143,379
|
146,584
|
|
435,695
|
424,958
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
|
|
Net gains/(losses)
from equity securities
|
|
365
|
3,237
|
391
|
|
7,765
|
(4,580)
|
Securities
(losses)/gains, net
|
|
(121)
|
13
|
(14)
|
|
(108)
|
(14)
|
Letters of credit
commissions
|
|
1,602
|
1,577
|
1,459
|
|
4,733
|
4,110
|
Depository service
fees
|
|
1,119
|
1,243
|
1,219
|
|
3,617
|
3,905
|
Gains from
acquisition
|
|
-
|
-
|
-
|
|
-
|
340
|
Other operating
income
|
|
7,423
|
6,724
|
4,780
|
|
20,096
|
17,151
|
|
|
|
|
|
|
|
|
Total non-interest
income
|
|
10,388
|
12,794
|
7,835
|
|
36,103
|
20,912
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
31,915
|
33,153
|
30,514
|
|
97,200
|
91,491
|
Occupancy
expense
|
|
5,579
|
5,489
|
5,186
|
|
16,617
|
15,808
|
Computer and
equipment expense
|
|
2,741
|
2,833
|
2,772
|
|
8,453
|
8,477
|
Professional services
expense
|
|
5,952
|
6,000
|
5,286
|
|
17,209
|
17,055
|
Data processing
service expense
|
|
3,246
|
3,081
|
3,080
|
|
9,737
|
9,450
|
FDIC and State
assessments
|
|
2,582
|
2,132
|
2,555
|
|
7,190
|
6,732
|
Marketing
expense
|
|
2,436
|
979
|
1,263
|
|
5,556
|
5,521
|
Other real estate
owned expense
|
|
190
|
369
|
(21)
|
|
839
|
(236)
|
Amortization of
investments in low income housing and
alternative energy partnerships
|
|
6,997
|
9,102
|
11,115
|
|
26,909
|
21,989
|
Amortization of core
deposit intangibles
|
|
172
|
171
|
190
|
|
515
|
704
|
Acquisition and
integration costs
|
|
-
|
-
|
179
|
|
-
|
2,083
|
Other operating
expense
|
|
3,770
|
6,237
|
3,845
|
|
15,871
|
10,949
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
|
65,580
|
69,546
|
65,964
|
|
206,096
|
190,023
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
|
93,808
|
86,627
|
88,455
|
|
265,702
|
255,847
|
Income tax
expense
|
|
20,973
|
14,383
|
18,698
|
|
53,944
|
48,610
|
Net income
|
|
$ 72,835
|
$ 72,244
|
$ 69,757
|
|
$ 211,758
|
$ 207,237
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
Basic
|
|
$ 0.91
|
$ 0.90
|
$ 0.86
|
|
$ 2.64
|
$ 2.55
|
Diluted
|
|
$ 0.91
|
$ 0.90
|
$ 0.85
|
|
$ 2.64
|
$ 2.53
|
|
|
|
|
|
|
|
|
Cash dividends paid
per common share
|
|
$ 0.31
|
$ 0.31
|
$ 0.24
|
|
$ 0.93
|
$ 0.72
|
Basic average common
shares outstanding
|
|
79,736,814
|
80,106,329
|
81,311,899
|
|
80,096,855
|
81,224,555
|
Diluted average
common shares outstanding
|
|
79,993,830
|
80,302,679
|
81,855,271
|
|
80,330,616
|
81,770,874
|
CATHAY GENERAL
BANCORP
AVERAGE BALANCES –
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)
|
|
|
Three months
ended
|
(In
thousands)
|
September 30,
2019
|
|
June 30,
2019
|
|
September 30,
2018
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets
|
Average Balance
|
Average
Yield/Rate (1)
|
|
Average Balance
|
Average
Yield/Rate (1)
|
|
Average Balance
|
Average
Yield/Rate (1)
|
Loans
(1)
|
$14,662,847
|
5.08%
|
|
$14,365,544
|
5.09%
|
|
$
13,434,018
|
4.97%
|
Taxable investment
securities
|
1,498,569
|
2.30%
|
|
1,441,005
|
2.36%
|
|
1,399,031
|
2.14%
|
FHLB stock
|
17,250
|
6.92%
|
|
17,250
|
6.93%
|
|
17,250
|
6.95%
|
Deposits with
banks
|
188,772
|
2.14%
|
|
235,019
|
2.36%
|
|
178,434
|
1.86%
|
|
|
|
|
|
|
|
|
|
Total
interest-earning assets
|
$16,367,438
|
4.80%
|
|
$16,058,818
|
4.81%
|
|
$15,028,733
|
4.67%
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
$
1,281,629
|
0.18%
|
|
$
1,265,105
|
0.18%
|
|
$
1,396,436
|
0.20%
|
Money market
deposits
|
2,028,039
|
1.11%
|
|
1,857,384
|
1.00%
|
|
2,234,139
|
0.79%
|
Savings
deposits
|
726,763
|
0.19%
|
|
731,512
|
0.20%
|
|
780,412
|
0.18%
|
Time
deposits
|
7,623,238
|
2.10%
|
|
7,570,131
|
2.09%
|
|
5,997,268
|
1.46%
|
Total
interest-bearing deposits
|
$11,659,669
|
1.60%
|
|
$11,424,132
|
1.58%
|
|
$10,408,255
|
1.05%
|
Securities sold under
agreements to repurchase
|
-
|
|
|
-
|
0.00%
|
|
16,304
|
3.02%
|
Other borrowed
funds
|
362,698
|
2.05%
|
|
353,799
|
2.25%
|
|
307,298
|
2.36%
|
Long-term
debt
|
165,023
|
4.68%
|
|
169,761
|
4.74%
|
|
194,136
|
4.54%
|
Total
interest-bearing liabilities
|
12,187,390
|
1.65%
|
|
11,947,692
|
1.65%
|
|
10,925,993
|
1.15%
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
demand deposits
|
2,805,582
|
|
|
2,789,644
|
|
|
2,877,646
|
|
|
|
|
|
|
|
|
|
|
Total deposits and
other borrowed funds
|
$14,992,972
|
|
|
$14,737,336
|
|
|
$13,803,639
|
|
Total average
assets
|
$17,483,376
|
|
|
$17,157,578
|
|
|
$16,134,349
|
|
Total average
equity
|
$
2,226,591
|
|
|
$
2,184,251
|
|
|
$
2,097,786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
|
|
(In
thousands)
|
September 30,
2019
|
|
September 30,
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets
|
Average Balance
|
Average
Yield/Rate (1)
|
|
Average Balance
|
Average
Yield/Rate (1)
|
|
|
|
Loans
(1)
|
$14,374,397
|
5.10%
|
|
$13,126,693
|
4.87%
|
|
|
|
Taxable investment
securities
|
1,404,046
|
2.33%
|
|
1,357,818
|
2.09%
|
|
|
|
FHLB stock
|
17,268
|
6.99%
|
|
18,975
|
7.60%
|
|
|
|
Deposits with
banks
|
245,971
|
2.33%
|
|
281,883
|
1.74%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest-earning assets
|
$16,041,682
|
4.82%
|
|
$14,785,369
|
4.56%
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
$
1,285,180
|
0.18%
|
|
$
1,394,743
|
0.19%
|
|
|
|
Money market
deposits
|
1,933,898
|
1.02%
|
|
2,230,365
|
0.70%
|
|
|
|
Savings
deposits
|
725,257
|
0.20%
|
|
807,402
|
0.20%
|
|
|
|
Time
deposits
|
7,421,255
|
2.05%
|
|
5,833,807
|
1.30%
|
|
|
|
Total
interest-bearing deposits
|
$11,365,590
|
1.55%
|
|
$10,266,317
|
0.93%
|
|
|
|
Securities sold under
agreements to repurchase
|
-
|
|
|
66,300
|
2.92%
|
|
|
|
Other borrowed
funds
|
392,483
|
2.27%
|
|
287,771
|
1.97%
|
|
|
|
Long-term
debt
|
172,567
|
4.72%
|
|
194,136
|
4.45%
|
|
|
|
Total
interest-bearing liabilities
|
11,930,640
|
1.62%
|
|
10,814,524
|
1.03%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
demand deposits
|
2,790,367
|
|
|
2,796,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits and
other borrowed funds
|
$14,721,007
|
|
|
$13,611,355
|
|
|
|
|
Total average
assets
|
$17,153,196
|
|
|
$15,864,583
|
|
|
|
|
Total average
equity
|
$
2,187,621
|
|
|
$
2,042,837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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