CATY Cathay General Bancorp

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, 2024. The Company reported net income of $67.5 million, or $0.94 per diluted share, for the third quarter of 2024.

FINANCIAL PERFORMANCE

Three months ended

(unaudited)

September 30, 2024

June 30, 2024

September 30, 2023

Net income $ 67.5 million $ 66.8 million $ 82.4 million Basic earnings per common share

$0.94

$0.92

$1.14

Diluted earnings per common share

$0.94

$0.92

$1.13

Return on average assets

1.15%

1.15%

1.42%

Return on average total stockholders' equity

9.50%

9.63%

12.36%

Efficiency ratio

51.11%

55.65%

48.57%

THIRD QUARTER HIGHLIGHTS

• Net interest margin increased to 3.04% in the third quarter of 2024 from 3.01% in the second quarter of 2024.
• Diluted earnings per share increased to $0.94 for the third quarter of 2024 compared to $0.92 for the second quarter of 2024.
• Total deposits increased by $170.9 million, or 3.5% annualized, to $19.94 billion in the third quarter of 2024.

We are pleased to see the increase in the net interest margin compared to the second quarter. During the third quarter, we repurchased 0.8 million shares at an average cost of $42.0 per share, for a total of $35.0 million.”, commented Chang M. Liu, President and Chief Executive Officer of the Company.

INCOME STATEMENT REVIEW THIRD QUARTER 2024 COMPARED TO THE SECOND QUARTER 2024

Net income for the quarter ended September 30, 2024, was $67.5 million, an increase of $0.7 million, or 1.0%, compared to net income of $66.8 million for the second quarter of 2024. Diluted earnings per share for the third quarter of 2024 was $0.94 per share compared to $0.92 per share for the second quarter of 2024. The third quarter net income included $2.2 million after-tax or $0.03 per diluted share in higher income tax expense related to 2023 low-income housing tax credits discrete item.

Return on average stockholders’ equity was 9.50% and return on average assets was 1.15% for the quarter ended September 30, 2024, compared to a return on average stockholders’ equity of 9.63% and a return on average assets of 1.15% in the second quarter of 2024.

Net interest income before provision for credit losses

Net interest income before provision for credit losses increased $3.9 million, or 2.4%, to $169.2 million during the third quarter of 2024, compared to $165.3 million in the second quarter of 2024. The increase was due primarily to an increase in interest income from loans offset, in part, by an increase in deposit interest expense.

The net interest margin was 3.04% for the third quarter of 2024 compared to 3.01% for the second quarter of 2024.

For the third quarter of 2024, the yield on average interest-earning assets was 6.10%, the cost of funds on average interest-bearing liabilities was 3.99%, and the cost of interest-bearing deposits was 3.95%. In comparison, for the second quarter of 2024, the yield on average interest-earning assets was 6.05%, the cost of funds on average interest-bearing liabilities was 3.97%, and the cost of interest-bearing deposits was 3.94%. The increase in the costs of average interest-bearing liabilities was mainly a result of higher interest rates on interest bearing deposits. The net interest spread, defined as the difference between the yield on average interest-earning assets and the cost of funds on average interest-bearing liabilities, was 2.11% for the third quarter of 2024, compared to 2.08% for the second quarter of 2024.

Provision for credit losses

The Company recorded a provision for credit losses of $14.5 million in the third quarter of 2024 compared with $6.6 million in the second quarter of 2024. As of September 30, 2024, the allowance for credit losses, which is comprised of the reserve for loan losses and the reserve for unfunded loan commitments, increased $10.2 million to $173.2 million, or 0.89% of gross loans, compared to $163.0 million, or 0.84% of gross loans, as of June 30, 2024.

The following table sets forth the charge-offs and recoveries for the periods indicated:

Three months ended

Nine months ended September 30, September 30, 2024 June 30, 2024 September 30, 2023

2024

2023

(In thousands) (Unaudited) Charge-offs: Commercial loans

$ 2,666

$ 8,257

$ 6,254

$ 12,862

$ 12,517

Real estate loans (1)

1,805

—

1,221

2,059

5,341

Installment and other loans

7

—

8

7

15

Total charge-offs

4,478

8,257

7,483

14,928

17,873

Recoveries: Commercial loans

88

126

611

1,026

1,564

Real estate loans (1)

186

134

261

561

2,862

Installment and other loans

1

—

—

1

—

Total recoveries

275

260

872

1,588

4,426

Net charge-offs

$ 4,203

$ 7,997

$ 6,611

$ 13,340

$ 13,447

(1) Real estate loans include commercial real estate loans, residential mortgage loans and equity lines.

Non-interest income

Non-interest income, which includes revenues from depository service fees, letters of credit commissions, securities gains (losses), wealth management fees, and other sources of fee income, was $20.4 million for the third quarter of 2024, an increase of $7.2 million, or 54.5%, compared to $13.2 million for the second quarter of 2024. The increase was primarily due to a $5.7 million increase in unrealized gains on equity securities when compared to the second quarter of 2024.

Non-interest expense

Non-interest expense decreased $2.5 million, or 2.5%, to $96.9 million in the third quarter of 2024 compared to $99.4 million in the second quarter of 2024. The decrease in non-interest expense in the third quarter of 2024 was primarily due to a decrease of $1.2 million in professional services, when compared to the second quarter of 2024. The efficiency ratio, defined as non-interest expense divided by the sum of net interest income before provision for loan losses plus non-interest income, was 51.11% in the third quarter of 2024 compared to 55.65% for the second quarter of 2024.

Income taxes

The effective tax rate for the third quarter of 2024 was 13.61% compared to 7.92% for the second quarter of 2024. The effective tax rate includes the impact of alternative energy investments and low-income housing tax credits. Income tax expense in the third quarter included a $2.2 million discrete item for 2023 low-income housing tax credits.

BALANCE SHEET REVIEW

Gross loans, excluding loans held for sale, were $19.37 billion as of September 30, 2024, an increase of $16.1 million, or 0.1%, from $19.36 billion as of June 30, 2024. The increase was primarily due to an increase of $89.2 million, or 0.9%, in commercial real estate loans, and an increase of $16.2 million, or 0.5% in commercial loans offset, in part, by a decrease of $49.9 million, or 14.0% in construction loans, a decrease of $31.7 million, or 0.5%, in residential mortgage loans and a decrease of $8.4 million, or 3.6% in equity lines.

The loan balances and composition as of September 30, 2024, compared to June 30, 2024, and September 30, 2023, are presented below:

September 30, 2024 June 30, 2024 September 30, 2023 (In thousands) (Unaudited) Commercial loans

$ 3,106,994

$ 3,090,763

$ 3,090,609

Construction loans

307,057

356,978

474,294

Commercial real estate loans

9,975,272

9,886,030

9,511,805

Residential mortgage loans

5,750,546

5,782,202

5,685,844

Equity lines

226,838

235,277

253,826

Installment and other loans

6,886

6,274

7,444

Gross loans

$ 19,373,593

$ 19,357,524

$ 19,023,822

  Allowance for loan losses

(163,733)

(153,404)

(154,619)

Unamortized deferred loan fees

(10,505)

(10,785)

(9,521)

Total loans, net

$ 19,199,355

$ 19,193,335

$ 18,859,682

  Loans held for sale

$ 5,190

$ —

$ —

Total deposits were $19.94 billion as of September 30, 2024, an increase of $170.9 million, or 0.9%, from $19.77 billion as of June 30, 2024.

The deposit balances and composition as of September 30, 2024, compared to June 30, 2024, and September 30, 2023, are presented below:

September 30, 2024 June 30, 2024 September 30, 2023 (In thousands) (Unaudited) Non-interest-bearing demand deposits

$ 3,253,823

$ 3,161,632

$ 3,623,483

NOW deposits

2,093,861

2,145,580

2,454,878

Money market deposits

3,134,460

3,182,031

3,222,612

Savings deposits

1,215,974

1,014,287

1,131,352

Time deposits

10,245,823

10,269,487

9,203,263

Total deposits

$ 19,943,941

$ 19,773,017

$ 19,635,588

ASSET QUALITY REVIEW

As of September 30, 2024, total non-accrual loans were $162.8 million, an increase of $55.5 million, or 51.7%, from $107.3 million as of June 30, 2024.

The allowance for loan losses was $163.7 million and the allowance for off-balance sheet unfunded credit commitments was $9.5 million as of September 30, 2024. The allowances represent the amount estimated by management to be appropriate to absorb expected credit losses inherent in the loan portfolio, including unfunded credit commitments. The allowance for loan losses represented 0.85% of period-end gross loans, and 96.45% of non-performing loans as of September 30, 2024. The comparable ratios were 0.79% of period-end gross loans, and 138.56% of non-performing loans as of June 30, 2024.

The changes in non-performing assets and modifications to borrowers experiencing financial difficulties as of September 30, 2024, compared to June 30, 2024, and September 30, 2023, are presented below:

(Dollars in thousands) (Unaudited)

September 30, 2024

 

June 30, 2024

 

% Change

 

September 30, 2023

 

% Change

Non-performing assets Accruing loans past due 90 days or more

$ 6,931

$ 3,443

101

$ 1,924

260

  Non-accrual loans: Construction loans

—

22,998

(100)

16,992

(100) Commercial real estate loans

87,577

60,085

46

32,539

169

Commercial loans *

52,074

4,075

1,178

14,661

255

Residential mortgage loans

23,183

20,112

15

13,138

76

Total non-accrual loans

$ 162,834

$ 107,270

52

$ 77,330

111

Total non-performing loans

169,765

110,713

53

79,254

114

Other real estate owned

18,277

18,277

—

14,407

27

Total non-performing assets

$ 188,042

$ 128,990

46

$ 93,661

101

  Allowance for loan losses

$ 163,733

$ 153,404

7

$ 154,619

6

Total gross loans outstanding, at period-end

$ 19,373,593

$ 19,357,524

0

$ 19,023,822

2

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

96.45%

138.56%

195.09%

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

0.85%

0.79%

0.81%

* Commercial nonaccrual loans included $19.5 million of loans that are current.

The increase in our nonaccrual loans was primarily caused by a $38.1 million loan relationship that was placed on nonaccrual status due to interest delinquency of more than ninety days on $18.6 million of these loans. The remaining $19.5 million of loans in this relationship were still current as of September 30, 2024. The borrower is actively seeking financing elsewhere for these loans.

The ratio of non-performing assets to total assets was 0.81% as of September 30, 2024, compared to 0.56% as of June 30, 2024. Total non-performing assets increased $59.0 million, or 45.7%, to $188.0 million as of September 30, 2024, compared to $129.0 million as of June 30, 2024, primarily due to an increase of $55.5 million, or 51.7%, in non-accrual loans, and an increase of $3.5 million, or 101.3%, in accruing loans past due 90 days or more.

CAPITAL ADEQUACY REVIEW

As of September 30, 2024, the Company’s Tier 1 risk-based capital ratio of 13.33%, total risk-based capital ratio of 14.88%, 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%. As of June 30, 2024, the Company’s Tier 1 risk-based capital ratio was 13.26%, total risk-based capital ratio was 14.74%, and Tier 1 leverage capital ratio was 10.83%.

YEAR-TO-DATE REVIEW

Net income for the nine months ended September 30, 2024, was $205.8 million, a decrease of $65.8 million, or 24.2%, compared to net income of $271.6 million for the same period a year ago. Diluted earnings per share was $2.83 compared to $3.73 per share for the same period a year ago. The net interest margin for the nine months ended September 30, 2024, was 3.03% compared to 3.52% for the same period a year ago.

Return on average stockholders’ equity was 9.84% and return on average assets was 1.18% for the nine months ended September 30, 2024, compared to a return on average stockholders’ equity of 14.04% and a return on average assets of 1.61% for the same period a year ago. The efficiency ratio for the nine months ended September 30, 2024, was 53.28% compared to 44.64% for the same period a year ago.

CONFERENCE CALL

Cathay General Bancorp will host a conference call to discuss its third quarter 2024 financial results this afternoon, Monday, October 21, 2024, at 3:00 p.m., Pacific Time. Analysts and investors may dial in and participate in the question-and-answer session. To access the call, please dial 1-833-816-1377 and refer to Conference Code 10193436. The presentation accompanying this call and access to the live webcast is available on our site at www.cathaygeneralbancorp.com and a replay of the webcast will be archived for one year within 24 hours after the event.

ABOUT CATHAY GENERAL BANCORP

Cathay General Bancorp is a publicly traded company (Nasdaq: CATY) and is the holding company for Cathay Bank, a California state-chartered bank. Founded in 1962, Cathay Bank offers a wide range of financial services and currently operate over 60 branches across the United States in California, New York, Washington, Texas, Illinois, Massachusetts, Maryland, Nevada, and New Jersey. Overseas, it has a branch outlet in Hong Kong, and a representative office in Beijing, Shanghai, and Taipei. To learn more about Cathay Bank, please visit www.cathaybank.com. Cathay General Bancorp’s website is at www.cathaygeneralbancorp.com. Information set forth on such websites is not incorporated into this press release.

FORWARD-LOOKING STATEMENTS

Statements made in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995 regarding management’s beliefs, projections, and assumptions concerning future results and events. These forward-looking statements may include, but are not limited to, such words as “aims,” “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “hopes,” “intends,” “may,” “plans,” “projects,” “predicts,” “potential,” “possible,” “optimistic,” “seeks,” “shall,” “should,” “will,” and variations of these words and similar expressions. Forward-looking statements are based on estimates, beliefs, projections, and assumptions of management and are not guarantees of future performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. Such risks and uncertainties and other factors include, but are not limited to, adverse developments or conditions related to or arising from local, regional, national and international business, market and economic conditions and events and the impact they may have on us, our customers and our operations, assets and liabilities; possible additional provisions for loan losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to including potential future supervisory action by bank supervisory authorities; increased costs of compliance and other risks associated with changes in regulation; higher capital requirements from the implementation of the Basel III capital standards; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; our ability to generate anticipated returns on our investments and financings, including in tax-advantaged projects; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; natural disasters, public health crises and geopolitical events; general economic or business conditions in Asia, and other regions where Cathay Bank has operations; failures, interruptions, or security breaches of our information systems; our ability to adapt our systems to technological changes; risk management processes and strategies; adverse results in legal proceedings; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in accounting standards or tax laws and regulations; market disruption and volatility; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; issuance of preferred stock; successfully raising additional capital, if needed, and the resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; and general competitive, economic political, and market conditions and fluctuations.

These and other factors are further described in Cathay General Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2023 (Item 1A in particular), other reports filed with the Securities and Exchange Commission (“SEC”), and other filings Cathay General Bancorp makes with the SEC from time to time. Actual results in any future period may also vary from the past results discussed in this press release. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we undertake no obligation to update or review any forward-looking statement to reflect circumstances, developments or events occurring after the date on which the statement is made or to reflect the occurrence of unanticipated events.

CATHAY GENERAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

Three months ended

 

Nine months ended September 30,

(Dollars in thousands, except per share data)

September 30, 2024

 

June 30, 2024

 

September 30, 2023

 

2024

 

2023

  Financial performance Net interest income before provision for credit losses

$ 169,155

$ 165,316

$ 185,640

$ 503,043

$ 559,608

Provision for credit losses

14,500

6,600

7,000

23,000

24,255

Net interest income after provision for credit losses

154,655

158,716

178,640

480,043

535,353

Non-interest income

20,365

13,215

7,837

40,191

45,191

Non-interest expense

96,867

99,352

93,973

289,458

269,980

Income before income tax expense

78,153

72,579

92,504

230,776

310,564

Income tax expense

10,639

5,750

10,133

24,998

38,966

Net income

$ 67,514

$ 66,829

$ 82,371

$ 205,778

$ 271,598

  Net income per common share Basic

$ 0.94

$ 0.92

$ 1.14

$ 2.84

$ 3.74

Diluted

$ 0.94

$ 0.92

$ 1.13

$ 2.83

$ 3.73

  Cash dividends paid per common share

$ 0.34

$ 0.34

$ 0.34

$ 1.02

$ 1.02

    Selected ratios Return on average assets

1.15%

1.15%

1.42%

1.18%

1.61%

Return on average total stockholders’ equity

9.50%

9.63%

12.36%

9.84%

14.04%

Efficiency ratio

51.11%

55.65%

48.57%

53.28%

44.64%

Dividend payout ratio

36.04%

37.06%

29.95%

35.87%

27.22%

    Yield analysis (Fully taxable equivalent) Total interest-earning assets

6.10%

6.05%

5.89%

6.05%

5.71%

Total interest-bearing liabilities

3.99%

3.97%

3.33%

3.95%

2.94%

Net interest spread

2.11%

2.08%

2.56%

2.10%

2.77%

Net interest margin

3.04%

3.01%

3.38%

3.03%

3.52%

    Capital ratios

September 30, 2024

June 30, 2024

September 30, 2023

Tier 1 risk-based capital ratio

13.33%

13.26%

12.70%

Total risk-based capital ratio

14.88%

14.74%

14.21%

Tier 1 leverage capital ratio

10.82%

10.83%

10.44%

.

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and per share data) September 30, 2024 June 30, 2024 September 30, 2023   Assets Cash and due from banks

$ 182,542

$ 160,389

$ 145,580

Short-term investments and interest bearing deposits

1,156,223

944,612

1,017,354

Securities available-for-sale (amortized cost of $1,602,696 at September 30, 2024, $1,780,251 at June 30, 2024 and $1,684,951 at September 30, 2023)

1,508,356

1,648,731

1,508,798

Loans held for sale

5,190

—

—

Loans

19,373,593

19,357,524

19,023,822

Less: Allowance for loan losses

(163,733)

(153,404)

(154,619)

Unamortized deferred loan fees, net

(10,505)

(10,785)

(9,521)

Loans, net

19,199,355

19,193,335

18,859,682

Equity securities

35,741

29,949

31,456

Federal Home Loan Bank stock

17,250

17,250

17,250

Other real estate owned, net

18,277

18,277

14,407

Affordable housing investments and alternative energy partnerships, net

280,091

309,834

332,903

Premises and equipment, net

89,158

89,451

91,033

Customers’ liability on acceptances

12,043

16,264

16,900

Accrued interest receivable

95,351

99,434

90,875

Goodwill

375,696

375,696

375,696

Other intangible assets, net

3,590

3,860

4,725

Right-of-use assets- operating leases

30,543

32,858

30,586

Other assets

265,037

295,305

307,284

Total assets

$ 23,274,443

$ 23,235,245

$ 22,844,529

  Liabilities and Stockholders’ Equity Deposits: Non-interest-bearing demand deposits

$ 3,253,823

$ 3,161,632

$ 3,623,483

Interest-bearing deposits: NOW deposits

2,093,861

2,145,580

2,454,878

Money market deposits

3,134,460

3,182,031

3,222,612

Savings deposits

1,215,974

1,014,287

1,131,352

Time deposits

10,245,823

10,269,487

9,203,263

Total deposits

19,943,941

19,773,017

19,635,588

  Advances from the Federal Home Loan Bank

60,000

165,000

15,000

Other borrowings for affordable housing investments

17,783

17,838

22,374

Long-term debt

119,136

119,136

119,136

Acceptances outstanding

12,043

16,264

16,900

Lease liabilities - operating leases

32,906

35,355

32,962

Other liabilities

258,321

315,393

363,833

Total liabilities

20,444,130

20,442,003

20,205,793

Stockholders' equity

2,830,313

2,793,242

2,638,736

Total liabilities and equity

$ 23,274,443

$ 23,235,245

$ 22,844,529

  Book value per common share

$ 39.66

$ 38.70

$ 36.35

Number of common shares outstanding

71,355,869

72,170,433

72,586,992

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended

 

Nine months ended September 30,

September 30, 2024

 

June 30, 2024

 

September 30, 2023

 

2024

 

2023

(In thousands, except share and per share data) Interest and Dividend Income Loans receivable

$ 310,311

$ 303,336

$ 293,108

$ 916,175

$ 827,765

Investment securities

15,125

15,644

12,698

45,720

36,832

Federal Home Loan Bank stock

375

499

355

1,305

957

Deposits with banks

13,680

13,381

17,307

41,793

43,405

Total interest and dividend income

339,491

332,860

323,468

1,004,993

908,959

Interest Expense Time deposits

119,786

118,076

90,022

347,408

234,171

Other deposits

45,918

44,512

38,207

133,218

92,683

Advances from Federal Home Loan Bank

1,885

2,316

6,779

13,517

14,875

Long-term debt

2,351

1,863

1,726

5,935

4,721

Short-term borrowings

396

777

1,094

1,872

2,901

Total interest expense

170,336

167,544

137,828

501,950

349,351

Net interest income before provision for credit losses

169,155

165,316

185,640

503,043

559,608

Provision for credit losses

14,500

6,600

7,000

23,000

24,255

Net interest income after provision for credit losses

154,655

158,716

178,640

480,043

535,353

Non-Interest Income Net gains/(losses) from equity securities

4,253

(1,430)

(6,218)

(6,204)

9,298

Debt securities gains/(losses), net

—

—

—

1,107

(3,000)

Letters of credit commissions

2,081

1,888

1,738

5,686

4,972

Depository service fees

1,572

1,778

1,536

4,900

5,009

Wealth management fees

6,545

5,678

5,150

17,861

12,686

Other operating income

5,914

5,301

5,631

16,841

16,226

Total non-interest income

20,365

13,215

7,837

40,191

45,191

Non-Interest Expense Salaries and employee benefits

40,859

40,439

38,774

124,850

114,048

Occupancy expense

5,938

5,652

5,851

17,557

16,883

Computer and equipment expense

4,753

5,391

4,387

15,212

12,899

Professional services expense

7,021

8,212

7,906

22,225

24,212

Data processing service expense

4,330

3,877

3,614

12,136

11,010

FDIC and State assessments

3,250

3,742

3,063

13,081

9,230

Marketing expense

1,614

1,474

1,587

5,002

4,777

Other real estate owned expense

596

1,482

435

2,331

566

Amortization of investments in low income housing andalternative energy partnerships

24,077

23,396

23,157

61,905

60,497

Amortization of core deposit intangibles

250

259

250

848

1,059

Other operating expense

4,179

5,428

4,949

14,311

14,799

Total non-interest expense

96,867

99,352

93,973

289,458

269,980

Income before income tax expense

78,153

72,579

92,504

230,776

310,564

Income tax expense

10,639

5,750

10,133

24,998

38,966

Net income

$ 67,514

$ 66,829

$ 82,371

$ 205,778

$ 271,598

Net income per common share: Basic

$ 0.94

$ 0.92

$ 1.14

$ 2.84

$ 3.74

Diluted

$ 0.94

$ 0.92

$ 1.13

$ 2.83

$ 3.73

Cash dividends paid per common share

$ 0.34

$ 0.34

$ 0.34

$ 1.02

$ 1.02

Basic average common shares outstanding

71,786,624

72,658,810

72,568,518

72,370,995

72,546,149

Diluted average common shares outstanding

72,032,456

72,825,356

72,890,414

72,607,550

72,847,907

CATHAY GENERAL BANCORP

AVERAGE BALANCES – SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited)

 

Three months ended

(In thousands)(Unaudited)

September 30, 2024

 

June 30, 2024

 

September 30, 2023

Interest-earning assets:

Average Balance

Average

Yield/Rate (1)

 

Average

Balance

Average Yield/Rate (1)

 

Average Balance

Average Yield/Rate (1)

Loans (1)

$ 19,455,540

6.35%

$ 19,439,112

6.28%

$ 18,959,444

6.13%

Taxable investment securities

1,638,414

3.67%

1,667,279

3.77%

1,530,767

3.29%

FHLB stock

17,250

8.65%

17,250

11.63%

19,141

7.35%

Deposits with banks

1,035,534

5.26%

997,808

5.39%

1,273,751

5.39%

Total interest-earning assets

$ 22,146,738

6.10%

$ 22,121,449

6.05%

$ 21,783,103

5.89%

  Interest-bearing liabilities: Interest-bearing demand deposits

$ 2,134,807

2.10%

$ 2,169,045

2.07%

$ 2,405,011

1.98%

Money market deposits

3,073,384

3.75%

3,217,813

3.77%

3,036,445

2.98%

Savings deposits

1,212,870

1.85%

1,037,771

1.23%

1,151,615

1.17%

Time deposits

10,250,601

4.65%

10,185,497

4.66%

9,145,176

3.91%

Total interest-bearing deposits

$ 16,671,662

3.95%

$ 16,610,126

3.94%

$ 15,738,247

3.23%

Other borrowed funds

186,838

4.86%

235,234

5.29%

586,824

5.32%

Long-term debt

119,136

7.85%

119,136

6.29%

119,136

5.75%

Total interest-bearing liabilities

16,977,636

3.99%

16,964,496

3.97%

16,444,207

3.33%

  Non-interest-bearing demand deposits

3,230,150

3,247,498

3,603,779

  Total deposits and other borrowed funds

$ 20,207,786

$ 20,211,994

$ 20,047,986

  Total average assets

$ 23,353,032

$ 23,336,454

$ 22,997,427

Total average equity

$ 2,828,386

$ 2,792,557

$ 2,644,006

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

Nine months ended (In thousands)(Unaudited) September 30, 2024 September 30, 2023 Interest-earning assets:

Average Balance

Average Yield/Rate (1)

 

Average

Balance

Average Yield/Rate (1)

Loans (1)

$ 19,464,502

6.29%

$ 18,572,222

5.96%

Taxable investment securities

1,647,968

3.71%

1,546,951

3.18%

FHLB stock

19,162

9.10%

18,290

7.00%

Deposits with banks

1,042,413

5.36%

1,145,398

5.07%

Total interest-earning assets

$ 22,174,045

6.05%

$ 21,282,861

5.71%

  Interest-bearing liabilities: Interest-bearing demand deposits

$ 2,205,108

2.12%

$ 2,361,732

1.57%

Money market deposits

3,134,940

3.69%

3,152,703

2.51%

Savings deposits

1,099,331

1.42%

1,056,234

0.73%

Time deposits

10,053,062

4.62%

8,728,133

3.59%

Total interest-bearing deposits

$ 16,492,441

3.89%

$ 15,298,802

2.86%

  Other borrowed funds

383,563

5.36%

473,114

5.02%

Long-term debt

119,136

6.65%

119,136

5.30%

Total interest-bearing liabilities

16,995,140

3.95%

15,891,052

2.94%

  Non-interest-bearing demand deposits

3,271,913

3,741,982

  Total deposits and other borrowed funds

$ 20,267,053

$ 19,633,034

  Total average assets

$ 23,380,362

$ 22,053,114

Total average equity

$ 2,794,387

$ 2,586,548

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

CATHAY GENERAL BANCORP GAAP to NON-GAAP RECONCILIATION SELECTED CONSOLIDATED FINANCIAL INFORMATION (Unaudited)

The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible equity and tangible equity to tangible assets ratio are non-GAAP financial measures. Tangible equity and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.

As of

September 30, 2024

 

June 30, 2024

 

September 30, 2023

(In thousands) (Unaudited)

Stockholders' equity (a)

$ 2,830,313

$ 2,793,242

$ 2,638,736

Less: Goodwill

(375,696)

(375,696)

(375,696)

Other intangible assets (1)

(3,590)

(3,860)

(4,725)

Tangible equity (b)

$ 2,451,027

$ 2,413,686

$ 2,258,315

  Total assets (c)

$ 23,274,443

$ 23,235,245

$ 22,844,529

Less: Goodwill

(375,696)

(375,696)

(375,696)

Other intangible assets (1)

(3,590)

(3,860)

(4,725)

Tangible assets (d)

$ 22,895,157

$ 22,855,689

$ 22,464,108

  Number of common shares outstanding (e)

71,355,869

72,170,433

72,586,992

  Total stockholders' equity to total assets ratio (a)/(c)

12.16%

12.02%

11.55%

Tangible equity to tangible assets ratio (b)/(d)

10.71%

10.56%

10.05%

Tangible book value per share (b)/(e)

$ 34.35

$ 33.44

$ 31.11

 

Three months ended

 

Nine months ended

September 30, 2024

 

June 30, 2024

 

September 30, 2023

 

September 30, 2024

September 30, 2023

(In thousands) (Unaudited) Net Income

$ 67,514

$ 66,829

$ 82,371

$ 205,778

$ 271,598

Add: Amortization of other intangibles (1)

264

270

270

863

1,031

Tax effect of amortization adjustments (2)

(78)

(80)

(80)

(256)

(306)

Tangible net income (f)

$ 67,700

$ 67,019

$ 82,561

$ 206,385

$ 272,323

  Return on tangible common equity (3) (f)/(b)

11.05%

11.11%

14.62%

11.23%

16.08%

(1) Includes core deposit intangibles and mortgage servicing (2) Applied the statutory rate of 29.65%. (3) Annualized

View source version on businesswire.com: https://www.businesswire.com/news/home/20241021272557/en/

Heng W. Chen (626) 279-3652