LOS ANGELES, April 27, 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 March 31, 2020. The Company reported net
income of $46.9 million, or
$0.59 per share, for the first
quarter of 2020.
FINANCIAL PERFORMANCE
|
Three months
ended
|
(unaudited)
|
March 31,
2020
|
|
December 31,
2019
|
|
March 31,
2019
|
Net income
|
$46.9
million
|
|
$67.4
million
|
|
$66.7
million
|
Basic earnings per
common share
|
$0.59
|
|
$0.85
|
|
$0.83
|
Diluted earnings per
common share
|
$0.59
|
|
$0.84
|
|
$0.83
|
Return on average
assets
|
1.05%
|
|
1.49%
|
|
1.61%
|
Return on average
total stockholders' equity
|
8.12%
|
|
11.75%
|
|
12.57%
|
Efficiency
ratio
|
44.60%
|
|
47.51%
|
|
45.42%
|
FIRST QUARTER HIGHLIGHTS
- Total loans increased for the quarter by $458.7 million, or 3.0%, to $15.5 billion from $15.1
billion in 2019.
- Total deposits increased for the quarter by $397.8 million, or 2.7%, to $15.1 billion from $14.7
billion in 2019.
"For the first quarter of 2020, our total loans increased
$458.7 million, or 12.2% annualized,
to $15.5 billion due in part to
higher drawdowns by our commercial loan borrowers. We
repurchased 400,000 shares of our common stock at an average cost
of $32.20 and do not plan to buy back
additional stock until further notice. We are prepared to operate
during these challenging times to serve the financial needs of our
customers," commented Pin Tai, Chief Executive Officer of the
Company.
FIRST QUARTER INCOME STATEMENT REVIEW
Net income for the quarter ended March
31, 2020, was $46.9 million, a
decrease of $19.8 million, or 29.7%,
compared to net income of $66.7
million for the same quarter a year ago. Diluted
earnings per share for the quarter ended March 31, 2020, was $0.59 per share compared to $0.83 per share for the same quarter a year
ago.
Return on average stockholders' equity was 8.12% and return on
average assets was 1.05% for the quarter ended March 31, 2020, compared to a return on average
stockholders' equity of 12.57% and a return on average assets of
1.61% for the same quarter a year ago.
Net interest income before provision for credit
losses
Net interest income before provision for credit losses decreased
$3.0 million, or 2.1%, to
$140.3 million during the first
quarter of 2020, compared to $143.3
million during the same quarter a year ago. The
decrease was due primarily to an increase in interest expense from
time deposits, and a decrease in interest income from loans and
securities.
The net interest margin was 3.34% for the first quarter of 2020
compared to 3.70% for the first quarter of 2019 and 3.34% for the
fourth quarter of 2019.
For the first quarter of 2020, the yield on average
interest-earning assets was 4.44%, the cost of funds on average
interest-bearing liabilities was 1.49%, and the cost of
interest-bearing deposits was 1.44%. In comparison, for the
first quarter of 2019, the yield on average interest-earning assets
was 4.85%, the cost of funds on average interest-bearing
liabilities was 1.55%, and the cost of interest-bearing deposits
was 1.46%. 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 2.95% for the quarter ended
March 31, 2020, compared to 3.30% for
the same quarter a year ago.
Provision for credit losses
Based on a review of the appropriateness of the allowance for
loan losses at March 31, 2020, the
Company recorded a provision for credit losses of $25.0 million in first quarter of 2020 compared
to no provision for credit losses in the first 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 bank liabilities and
assets. As permitted under the recently enacted 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 US government declares an end to the
national emergency or December 31,
2020. The expected impact of CECL on first quarter results,
if CECL had been adopted, will be disclosed in our Form 10-Q for
the first quarter of 2020. The following table sets forth the
charge-offs and recoveries for the periods indicated:
|
Three months
ended
|
|
March 31,
2020
|
|
December 31,
2019
|
|
March 31,
2019
|
|
(In thousands)
(Unaudited)
|
Charge-offs:
|
|
|
|
|
|
Commercial
loans
|
$
1,321
|
|
$
697
|
|
$
1,231
|
Total
charge-offs
|
1,321
|
|
697
|
|
1,231
|
Recoveries:
|
|
|
|
|
|
Commercial
loans
|
1,208
|
|
2,546
|
|
41
|
Construction
loans
|
-
|
|
-
|
|
1,044
|
Real estate
loans(1)
|
162
|
|
467
|
|
310
|
Total recoveries
|
1,370
|
|
3,013
|
|
1,395
|
Net
(recoveries)/charge-offs
|
$
(49)
|
|
$
(2,316)
|
|
$
(164)
|
|
|
|
|
|
|
(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
$5.8 million for the first quarter of
2020, a decrease of $7.1 million, or
55.0%, compared to $12.9 million for
the first quarter of 2019. The decrease was primarily due to
a $10.3 million decrease in net
losses from equity securities, offset in part by a $1.4 million increase in wealth management fees
and an increase of $1.3 million in
the valuation of interest rate swap contracts, when compared to the
same quarter a year ago.
Non-interest expense
Non-interest expense decreased $5.8
million, or 8.2%, to $65.2
million in the first quarter of 2020 compared to
$71.0 million in the same quarter a
year ago. The decrease in non-interest expense in the first
quarter of 2020 was primarily due to a $4.5
million gain recognized on sale of a foreclosed property, a
decrease of $1.2 million in salaries
and employee benefits and a decrease of $2.4
million in provision for unfunded commitments, offset by an
increase of $3.1 million in
amortization expense of investments in low income housing and
alternative energy partnerships when compared to the same quarter a
year ago. The efficiency ratio was 44.6% in the first quarter
of 2020 compared to 45.4% for the same quarter a year ago.
Income taxes
The effective tax rate for the first quarter of 2020 was 16.3%
compared to 21.8% for the first quarter of 2019. The effective tax
rate includes an alternative energy investment made in the second
quarter of 2019 and the impact of low-income housing tax
credits.
BALANCE SHEET REVIEW
Gross loans were $15.5 billion at
March 31, 2020, an increase of
$458.7 million, or 3.0%, from
$15.1 billion at December 31, 2019. The increase was
primarily due to increases of $194.3
million, or 7.0%, in commercial loans, $147.3 million, or 2.0%, in commercial mortgage
loans, $85.3 million, or 2.1%, in
residential mortgage loans, and $37.3
million, or 10.7%, in equity lines. The loan balances
and composition at March 31, 2020,
compared to December 31, 2019 and
March 31, 2019, are presented
below:
|
March 31,
2020
|
|
December 31,
2019
|
|
March 31,
2019
|
|
(In thousands)
(Unaudited)
|
Commercial
loans
|
$
2,973,078
|
|
$
2,778,744
|
|
$
2,736,195
|
Residential mortgage
loans
|
4,173,876
|
|
4,088,586
|
|
3,803,692
|
Commercial mortgage
loans
|
7,422,585
|
|
7,275,262
|
|
6,888,898
|
Equity
lines
|
385,317
|
|
347,975
|
|
273,215
|
Real estate
construction loans
|
577,240
|
|
579,864
|
|
567,789
|
Installment and other
loans
|
2,116
|
|
5,050
|
|
7,633
|
Gross
loans
|
$
15,534,212
|
|
$
15,075,481
|
|
$
14,277,422
|
Allowance for loan
losses
|
(148,273)
|
|
(123,224)
|
|
(122,555)
|
Unamortized deferred
loan fees
|
(277)
|
|
(626)
|
|
(1,549)
|
Total loans,
net
|
$
15,385,662
|
|
$
14,951,631
|
|
$
14,153,318
|
Total deposits were $15.1 billion
at March 31, 2020, an increase of
$397.8 million, or 2.7%, from
$14.7 billion at December 31, 2019. The deposit balances and
composition at March 31, 2020,
compared to December 31, 2019 and
March 31, 2019, are set forth
below:
|
March 31,
2020
|
|
December 31,
2019
|
|
March 31,
2019
|
|
(In thousands)
(Unaudited)
|
Non-interest-bearing
demand deposits
|
$
2,860,580
|
|
$
2,871,444
|
|
$
2,760,377
|
NOW
deposits
|
1,514,434
|
|
1,358,152
|
|
1,269,085
|
Money market
deposits
|
2,482,950
|
|
2,260,764
|
|
1,839,468
|
Savings
deposits
|
710,602
|
|
758,903
|
|
710,214
|
Time
deposits
|
7,521,584
|
|
7,443,045
|
|
7,507,220
|
Total
deposits
|
$
15,090,150
|
|
$
14,692,308
|
|
$
14,086,364
|
ASSET QUALITY REVIEW
At March 31, 2020, total
non-accrual loans were $53.7 million,
an increase of $13.2 million, or
32.6%, from $40.5 million at
December 31, 2019, and a decrease of
$3.0 million, or 5.3%, from
$56.7 million at March 31, 2019.
The allowance for loan losses was $148.3
million and the allowance for off-balance sheet unfunded
credit commitments was $3.0 million
at March 31, 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 $148.3
million allowance for loan losses at March 31, 2020, increased $25.1 million, or 20.4%, from $123.2 million at December
31, 2019. This increase included $22.0 million of additional allowance for loan
losses due to deterioration in economic conditions in the closing
weeks of the quarter related to COVID-19. This deterioration
is reflected in unprecedented increases in new unemployment claims
in the United States and
deterioration in global economic measures during this period.
The allowance for loan losses represented 0.95% of period-end gross
loans, and 254.5% of non-performing loans at March 31, 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 March 31, 2020, compared to
December 31, 2019 and March 31, 2019, are shown below:
(Dollars in
thousands) (Unaudited)
|
March 31,
2020
|
|
December 31,
2019
|
|
% Change
|
|
March 31,
2019
|
|
% Change
|
Non-performing
assets
|
|
|
|
|
|
|
|
|
|
Accruing loans past
due 90 days or more
|
$
4,531
|
|
$
6,409
|
|
(29)
|
|
$
-
|
|
100
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
|
Construction
loans
|
4,482
|
|
4,580
|
|
(2)
|
|
4,801
|
|
(7)
|
Commercial
mortgage loans
|
11,859
|
|
9,928
|
|
19
|
|
17,940
|
|
(34)
|
Commercial
loans
|
30,443
|
|
19,381
|
|
57
|
|
26,499
|
|
15
|
Residential
mortgage loans
|
6,949
|
|
6,634
|
|
5
|
|
7,443
|
|
(7)
|
Total non-accrual
loans:
|
$
53,733
|
|
$
40,523
|
|
33
|
|
$
56,683
|
|
(5)
|
Total non-performing
loans
|
58,264
|
|
46,932
|
|
24
|
|
56,683
|
|
3
|
Other real
estate owned
|
9,048
|
|
10,244
|
|
(12)
|
|
12,522
|
|
(28)
|
Total non-performing
assets
|
$
67,312
|
|
$
57,176
|
|
18
|
|
$
69,205
|
|
(3)
|
Accruing troubled
debt restructurings (TDRs)
|
$
34,364
|
|
$
35,336
|
|
(3)
|
|
$
62,948
|
|
(45)
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
$
148,273
|
|
$
123,224
|
|
20
|
|
$
122,555
|
|
21
|
Total gross loans
outstanding, at period-end
|
$
15,534,212
|
|
$
15,075,481
|
|
3
|
|
$
14,277,422
|
|
9
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses to non-performing loans, at period-end
|
254.48%
|
|
262.56%
|
|
|
|
216.21%
|
|
|
Allowance for loan
losses to gross loans, at period-end
|
0.95%
|
|
0.82%
|
|
|
|
0.86%
|
|
|
The ratio of non-performing assets to total assets was 0.4% at
March 31, 2020, compared to 0.3% at
December 31, 2019. Total
non-performing assets increased $10.1
million, or 17.7%, to $67.3
million at March 31, 2020,
compared to $57.2 million at
December 31, 2019, primarily due to a
$12.1 million commercial loan that is
in the process of being restructured, offset in part by a decrease
of $1.9 million, or 29.3%, in
accruing loans past due 90 days or more and a decrease of
$1.2 million, or 11.7%, in other real
estate owned.
CAPITAL ADEQUACY REVIEW
At March 31, 2020, the Company's
Tier 1 risk-based capital ratio of 12.38%, total risk-based capital
ratio of 14.12%, and Tier 1 leverage capital ratio of 10.82%,
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%.
CONFERENCE CALL
Cathay General Bancorp will host a conference call this
afternoon to discuss its first quarter 2020 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 2954129. 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 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
|
(Dollars in
thousands, except per share data)
|
|
March 31,
2020
|
|
December 31,
2019
|
|
March 31,
2019
|
|
|
|
|
|
|
|
FINANCIAL
PERFORMANCE
|
|
|
|
|
|
|
Net interest income
before provision for credit
losses
|
|
$
140,311
|
|
$
141,211
|
|
$
143,316
|
Provision/(reversal)
for credit losses
|
|
25,000
|
|
(5,000)
|
|
-
|
Net interest income
after reversal for credit losses
|
|
115,311
|
|
146,211
|
|
143,316
|
Non-interest
income
|
|
5,786
|
|
8,648
|
|
12,921
|
Non-interest
expense
|
|
65,154
|
|
71,191
|
|
70,970
|
Income before income
tax expense
|
|
55,943
|
|
83,668
|
|
85,267
|
Income tax
expense
|
|
9,091
|
|
16,290
|
|
18,588
|
Net income
|
|
$
46,852
|
|
$
67,378
|
|
$
66,679
|
|
|
|
|
|
|
|
Net income per common
share
|
|
|
|
|
|
|
Basic
|
|
$
0.59
|
|
$
0.85
|
|
$
0.83
|
Diluted
|
|
$
0.59
|
|
$
0.84
|
|
$
0.83
|
Cash dividends
paid per common share
|
|
$
0.31
|
|
$
0.31
|
|
$
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
RATIOS
|
|
|
|
|
|
|
Return on average
assets
|
|
1.05%
|
|
1.49%
|
|
1.61%
|
Return on average
total stockholders' equity
|
|
8.12%
|
|
11.75%
|
|
12.57%
|
Efficiency
ratio
|
|
44.60%
|
|
47.51%
|
|
45.42%
|
Dividend payout
ratio
|
|
52.63%
|
|
36.67%
|
|
37.44%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELD ANALYSIS
(Fully taxable equivalent)
|
|
|
|
|
|
|
Total
interest-earning assets
|
|
4.44%
|
|
4.53%
|
|
4.85%
|
Total
interest-bearing liabilities
|
|
1.49%
|
|
1.61%
|
|
1.55%
|
Net interest
spread
|
|
2.95%
|
|
2.92%
|
|
3.30%
|
Net interest
margin
|
|
3.34%
|
|
3.34%
|
|
3.70%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS
|
|
March 31,
2020
|
|
December 31,
2019
|
|
March 31,
2019
|
Tier 1 risk-based
capital ratio
|
|
12.38%
|
|
12.51%
|
|
12.42%
|
Total risk-based
capital ratio
|
|
14.12%
|
|
14.11%
|
|
14.12%
|
Tier 1 leverage
capital ratio
|
|
10.82%
|
|
10.83%
|
|
10.79%
|
|
|
.
|
|
|
|
|
CATHAY GENERAL
BANCORP
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
(In thousands, except
share and per share data)
|
|
March 31,
2020
|
|
December 31,
2019
|
|
March 31,
2019
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
136,350
|
|
$
177,240
|
|
$
194,928
|
Short-term
investments and interest bearing deposits
|
|
363,666
|
|
416,538
|
|
343,452
|
Securities
available-for-sale (amortized cost of $1,330,232 at March 31,
2020, $1,443,730 at December
31, 2019 and $1,322,579 at March 31, 2019)
|
|
1,355,173
|
|
1,451,842
|
|
1,309,853
|
Loans
|
|
15,534,212
|
|
15,075,481
|
|
14,277,422
|
Less: Allowance
for loan losses
|
|
(148,273)
|
|
(123,224)
|
|
(122,555)
|
Unamortized
deferred loan fees, net
|
|
(277)
|
|
(626)
|
|
(1,549)
|
Loans,
net
|
|
15,385,662
|
|
14,951,631
|
|
14,153,318
|
Equity
securities
|
|
18,790
|
|
28,005
|
|
29,261
|
Federal Home Loan
Bank stock
|
|
17,250
|
|
18,090
|
|
17,250
|
Other real estate
owned, net
|
|
9,048
|
|
10,244
|
|
12,522
|
Affordable housing
investments and alternative energy partnerships, net
|
|
294,639
|
|
308,681
|
|
285,831
|
Premises and
equipment, net
|
|
103,481
|
|
104,239
|
|
103,237
|
Customers' liability
on acceptances
|
|
5,175
|
|
10,694
|
|
20,052
|
Accrued interest
receivable
|
|
53,110
|
|
53,541
|
|
54,955
|
Goodwill
|
|
372,189
|
|
372,189
|
|
372,189
|
Other intangible
assets, net
|
|
6,187
|
|
6,296
|
|
6,874
|
Right-of-use assets-
operating leases
|
|
32,743
|
|
33,990
|
|
38,591
|
Other
assets
|
|
142,996
|
|
150,924
|
|
176,779
|
|
|
|
|
|
|
|
Total
assets
|
|
$
18,296,459
|
|
$
18,094,144
|
|
$
17,119,092
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
Non-interest-bearing
demand deposits
|
|
$
2,860,580
|
|
$
2,871,444
|
|
$
2,760,377
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
NOW
deposits
|
|
1,514,434
|
|
1,358,152
|
|
1,269,085
|
Money market
deposits
|
|
2,482,950
|
|
2,260,764
|
|
1,839,468
|
Savings
deposits
|
|
710,602
|
|
758,903
|
|
710,214
|
Time
deposits
|
|
7,521,584
|
|
7,443,045
|
|
7,507,220
|
Total
deposits
|
|
15,090,150
|
|
14,692,308
|
|
14,086,364
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
12,898
|
|
25,683
|
|
-
|
Advances from the
Federal Home Loan Bank
|
|
495,000
|
|
670,000
|
|
420,000
|
Other borrowings for
affordable housing investments
|
|
28,981
|
|
29,022
|
|
29,436
|
Long-term
debt
|
|
119,136
|
|
119,136
|
|
174,448
|
Deferred payments
from acquisition
|
|
7,716
|
|
7,644
|
|
18,663
|
Acceptances
outstanding
|
|
5,175
|
|
10,694
|
|
20,052
|
Lease liabilities -
operating leases
|
|
34,790
|
|
35,873
|
|
39,534
|
Other
liabilities
|
|
189,576
|
|
209,501
|
|
167,266
|
Total
liabilities
|
|
15,983,422
|
|
15,799,861
|
|
14,955,763
|
Stockholders'
equity
|
|
2,313,037
|
|
2,294,283
|
|
2,163,329
|
Total liabilities and
equity
|
|
$
18,296,459
|
|
$
18,094,144
|
|
$
17,119,092
|
|
|
|
|
|
|
|
Book value per common
share
|
|
$
29.12
|
|
$
28.78
|
|
$
26.92
|
Number of common
shares outstanding
|
|
79,420,267
|
|
79,729,419
|
|
80,362,840
|
CATHAY GENERAL
BANCORP
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
Three months
ended
|
|
|
March 31,
2020
|
December 31,
2019
|
March 31,
2019
|
|
|
(In thousands, except
share and per share data)
|
INTEREST AND
DIVIDEND INCOME
|
|
|
|
|
Loan receivable,
including loan fees
|
|
$
177,870
|
$
181,224
|
$
178,277
|
Investment
securities
|
|
7,610
|
8,583
|
7,290
|
Federal Home Loan
Bank stock
|
|
305
|
304
|
304
|
Deposits with
banks
|
|
951
|
1,115
|
1,890
|
|
|
|
|
|
Total interest and
dividend income
|
|
186,736
|
191,226
|
187,761
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
Time
deposits
|
|
35,155
|
38,799
|
34,123
|
Other
deposits
|
|
7,991
|
7,720
|
5,377
|
Advances from Federal
Home Loan Bank
|
|
1,552
|
1,466
|
2,590
|
Long-term
debt
|
|
1,440
|
1,760
|
2,132
|
Deferred payments
from acquisition
|
|
58
|
66
|
217
|
Short-term
borrowings
|
|
229
|
204
|
6
|
|
|
|
|
|
Total interest
expense
|
|
46,425
|
50,015
|
44,445
|
|
|
|
|
|
Net interest income
before provision/(reversal) for credit losses
|
|
140,311
|
141,211
|
143,316
|
Provision/(reversal)
for credit losses
|
|
25,000
|
(5,000)
|
-
|
|
|
|
|
|
Net interest income
after provision/(reversal) for credit losses
|
|
115,311
|
146,211
|
143,316
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
Net (losses)/gains
from equity securities
|
|
(6,102)
|
(2,028)
|
4,163
|
Securities gains,
net
|
|
6
|
318
|
-
|
Letters of credit
commissions
|
|
1,640
|
1,674
|
1,554
|
Depository service
fees
|
|
1,298
|
1,146
|
1,255
|
Other operating
income
|
|
8,944
|
7,538
|
5,949
|
|
|
|
|
|
Total non-interest
income
|
|
5,786
|
8,648
|
12,921
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
Salaries and employee
benefits
|
|
30,939
|
32,100
|
32,132
|
Occupancy
expense
|
|
5,177
|
5,386
|
5,549
|
Computer and
equipment expense
|
|
2,593
|
2,660
|
2,879
|
Professional services
expense
|
|
5,145
|
5,899
|
5,257
|
Data processing
service expense
|
|
3,666
|
3,473
|
3,410
|
FDIC and State
assessments
|
|
2,415
|
2,427
|
2,476
|
Marketing
expense
|
|
1,886
|
2,029
|
2,141
|
Other real estate
owned (income)/expense
|
|
(4,104)
|
276
|
280
|
Amortization of
investments in low income housing and alternative energy
partnerships
|
|
13,890
|
12,822
|
10,810
|
Amortization of core
deposit intangibles
|
|
172
|
172
|
172
|
Other operating
expense
|
|
3,375
|
3,947
|
5,864
|
|
|
|
|
|
Total non-interest
expense
|
|
65,154
|
71,191
|
70,970
|
|
|
|
|
|
Income before income
tax expense
|
|
55,943
|
83,668
|
85,267
|
Income tax
expense
|
|
9,091
|
16,290
|
18,588
|
Net income
|
|
$
46,852
|
$
67,378
|
$
66,679
|
Net income per common
share:
|
|
|
|
|
Basic
|
|
$
0.59
|
$
0.85
|
$
0.83
|
Diluted
|
|
$
0.59
|
$
0.84
|
$
0.83
|
|
|
|
|
|
Cash dividends paid
per common share
|
|
$
0.31
|
$
0.31
|
$
0.31
|
Basic average common
shares outstanding
|
|
79,588,076
|
79,711,414
|
80,455,317
|
Diluted average
common shares outstanding
|
|
79,830,025
|
80,002,421
|
80,703,134
|
CATHAY GENERAL
BANCORP
AVERAGE BALANCES –
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)
|
|
|
Three months
ended
|
|
(In
thousands)
|
March 31,
2020
|
|
December 31,
2019
|
|
March 31,
2019
|
Interest-earning
assets
|
Average
Balance
|
Average
Yield/Rate (1)
|
|
Average
Balance
|
Average
Yield/Rate (1)
|
|
Average
Balance
|
Average
Yield/Rate (1)
|
Loans
(1)
|
$15,213,440
|
4.69%
|
|
$14,915,076
|
4.82%
|
|
$14,088,488
|
5.13%
|
Taxable investment
securities
|
1,379,371
|
2.22%
|
|
1,557,877
|
2.19%
|
|
1,270,053
|
2.33%
|
FHLB stock
|
17,268
|
7.09%
|
|
17,259
|
7.00%
|
|
17,304
|
7.13%
|
Deposits with
banks
|
311,024
|
1.23%
|
|
275,032
|
1.61%
|
|
312,779
|
2.45%
|
|
|
|
|
|
|
|
|
|
Total
interest-earning assets
|
$16,921,103
|
4.44%
|
|
$16,765,244
|
4.53%
|
|
$15,688,624
|
4.85%
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
$
1,388,597
|
0.21%
|
|
$
1,307,285
|
0.18%
|
|
$
1,309,109
|
0.19%
|
Money market
deposits
|
2,437,997
|
1.15%
|
|
2,244,973
|
1.19%
|
|
1,915,030
|
0.94%
|
Savings
deposits
|
733,372
|
0.18%
|
|
748,148
|
0.20%
|
|
717,393
|
0.19%
|
Time
deposits
|
7,495,619
|
1.89%
|
|
7,574,179
|
2.03%
|
|
7,064,254
|
1.96%
|
Total
interest-bearing deposits
|
$12,055,585
|
1.44%
|
|
$11,874,585
|
1.55%
|
|
$11,005,786
|
1.46%
|
Other borrowed
funds
|
392,029
|
1.89%
|
|
342,227
|
2.01%
|
|
462,043
|
2.47%
|
Long-term
debt
|
119,136
|
4.86%
|
|
142,451
|
4.90%
|
|
183,115
|
4.72%
|
Total
interest-bearing liabilities
|
12,566,750
|
1.49%
|
|
12,359,263
|
1.61%
|
|
11,650,944
|
1.55%
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
demand deposits
|
2,863,889
|
|
|
2,979,134
|
|
|
2,775,545
|
|
|
|
|
|
|
|
|
|
|
Total deposits
and other borrowed funds
|
$15,430,639
|
|
|
$15,338,397
|
|
|
$14,426,489
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
$18,003,092
|
|
|
$17,883,476
|
|
|
$16,811,249
|
|
Total average
equity
|
$
2,320,330
|
|
|
$
2,274,986
|
|
|
$
2,151,192
|
|
|
|
|
|
|
|
|
|
|
(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