LOS ANGELES, April 20, 2016 /PRNewswire/ -- Cathay
General Bancorp (the "Company", NASDAQ: CATY), the holding company
for Cathay Bank, today announced net income of $46.2 million, or $0.57 per share, for the first quarter of
2016.
FINANCIAL PERFORMANCE
|
Three months
ended
|
|
March 31,
2016
|
|
December 31,
2015
|
|
March 31,
2015
|
Net income
|
$46.2
million
|
|
$41.4
million
|
|
$36.0
million
|
Basic earnings per
common share
|
$0.58
|
|
$0.51
|
|
$0.45
|
Diluted earnings per
common share
|
$0.57
|
|
$0.51
|
|
$0.45
|
Return on average
assets
|
1.43%
|
|
1.27%
|
|
1.30%
|
Return on average
total stockholders' equity
|
10.66%
|
|
9.40%
|
|
8.97%
|
Efficiency
ratio
|
46.92%
|
|
49.22%
|
|
45.74%
|
FIRST QUARTER HIGHLIGHTS
- Diluted earnings per share increased 26.7% to $0.57 per share for the first quarter of 2016
compared to $0.45 per share for the
same quarter a year ago.
- Loan loss recoveries of $6.1
million during the first quarter of 2016.
"In the first quarter, our loan growth was $200 million, or 8% annualized, while we reduced
our time deposits by $238
million. As a result, our net interest income
increased by 16.4% compared to the first quarter of 2015,"
commented Dunson Cheng, Chairman of
the Board, Chief Executive Officer, and President of the
Company.
"During the quarter we continued our capital management program
and repurchased an additional 2.0 million shares of our stock at an
average price of $27.03," concluded
Dunson Cheng.
FIRST QUARTER INCOME STATEMENT REVIEW
Net income for the quarter ended March
31, 2016, was $46.2 million,
an increase of $10.2 million, or
28.3%, compared to net income of $36.0
million for the same quarter a year ago. Diluted
earnings per share for the quarter ended March 31, 2016, was $0.57 compared to $0.45 for the same quarter a year ago.
Return on average stockholders' equity was 10.66% and return on
average assets was 1.43% for the quarter ended March 31, 2016, compared to a return on average
stockholders' equity of 8.97% and a return on average assets of
1.30% for the same quarter a year ago.
Net interest income before provision for credit
losses
Net interest income before provision for credit losses increased
$14.5 million, or 16.4%, to
$102.4 million during the first
quarter of 2016 compared to $87.9
million during the same quarter a year ago. The
increase was due primarily to the increase in interest income from
loans and investment securities, offset by the increase in interest
expense from time deposits.
The net interest margin was 3.42% for the first quarter of 2016
compared to 3.41% for the first quarter of 2015. The increase
in the net interest margin was due to the impact from the increase
in loans. The net interest margin increased to 3.42% for the
first quarter of 2016 from 3.30% for the fourth quarter of 2015,
primarily due to higher interest recoveries and lower excess cash
balances.
For the first quarter of 2016, the yield on average
interest-earning assets was 4.09%, the cost of funds on average
interest-bearing liabilities was 0.89%, and the cost of interest
bearing deposits was 0.69%. In comparison, for the first
quarter of 2015, the yield on average interest-earning assets was
4.08%, the cost of funds on average interest-bearing liabilities
was 0.88%, and the cost of interest bearing deposits was 0.65%. 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 3.20% for the quarter ended
March 31, 2016, compared to 3.20% for
the same quarter a year ago.
Provision for credit losses
Provision for credit losses was a credit of $10.5 million for the first quarter of 2016
compared to a credit of $5.0 million
for the first quarter of 2015. The provision for credit
losses was based on the review of the appropriateness of the
allowance for loan losses at March 31,
2016. The provision or reversal for credit losses represents
the charge against or benefit toward current earnings that is
determined by management, through a credit review process, as the
amount needed to establish an allowance that management believes to
be sufficient to absorb credit losses inherent in the Company's
loan portfolio, including unfunded commitments. The following
table summarizes the charge-offs and recoveries for the periods
indicated:
|
Three months
ended
|
|
|
March 31,
2016
|
|
December 31,
2015
|
|
March 31,
2015
|
|
|
(In
thousands)
|
Charge-offs:
|
|
|
|
|
|
|
Commercial
loans
|
$
2,069
|
|
$
9,672
|
|
$
864
|
|
Real estate
loans (1)
|
259
|
|
227
|
|
3,600
|
|
Total
charge-offs
|
2,328
|
|
9,899
|
|
4,464
|
|
Recoveries:
|
|
|
|
|
|
|
Commercial
loans
|
$
987
|
|
1,534
|
|
2,274
|
|
Construction
loans
|
7,276
|
|
39
|
|
45
|
|
Real estate
loans (1)
|
155
|
|
213
|
|
1,813
|
|
Total recoveries
|
8,418
|
|
1,786
|
|
4,132
|
|
Net
charge-offs/(recoveries)
|
$
(6,090)
|
|
$
8,113
|
|
$
332
|
|
|
|
|
|
|
|
|
(1) Real estate loans
include commercial mortgage loans, residential mortgage loans, and
equity lines.
|
Non-interest income
Non-interest income, which includes revenues from depository
service fees, letters of credit commissions, securities gains
(losses), gains (losses) on loan sales, wire transfer fees, and
other sources of fee income, was $7.5
million for the first quarter of 2016, a decrease of
$1.0 million, or 11.8%, compared to
$8.5 million for the first quarter of
2015.
Non-interest expense
Non-interest expense increased $7.5
million, or 16.9%, to $51.6
million in the first quarter of 2016 compared to
$44.1 million in the same quarter a
year ago. The increase in non-interest expense in the first
quarter of 2016 was primarily due to increases of $4.3 million in salaries and bonus expense,
$1.0 million in professional services
expenses, and $0.9 million in other
operating expenses. The efficiency ratio was 46.92% in the
first quarter of 2016 compared to 45.74% for the same quarter a
year ago.
Income taxes
The effective tax rate for the first quarter of 2016 was 32.9%
compared to 37.3% for the first quarter of 2015. The
effective tax rate includes the impact of the utilization of low
income housing tax credits and alternative energy tax
credits. During the first quarter of 2016, income tax expense
included $3.3 million for the
write-off of deferred tax assets related to stock options that
expired unexercised during the quarter.
BALANCE SHEET REVIEW
Gross loans, excluding loans held for sale, were $10.4 billion at March 31,
2016, an increase of $200.2
million, or 2.0%, from $10.2
billion at December 31, 2015,
primarily due to increases of $144.4
million, or 2.7%, in commercial mortgage loans, $111.4 million, or 5.8%, in residential mortgage
loans, and $11.9 million, or 2.7%, in
real estate construction loans partially offset by decreases of
$65.7 million, or 2.8%, in commercial
loans. The loan balances and composition at March 31, 2016, compared to December 31, 2015, and to March 31, 2015, are presented below:
|
March 31,
2016
|
|
December 31,
2015
|
|
March 31,
2015
|
|
(Dollars in
thousands)
|
Commercial
loans
|
$
2,251,187
|
|
$
2,316,863
|
|
$ 2,434,550
|
Residential mortgage
loans
|
2,043,789
|
|
1,932,355
|
|
1,600,269
|
Commercial mortgage
loans
|
5,445,574
|
|
5,301,218
|
|
4,663,051
|
Equity
lines
|
168,284
|
|
168,980
|
|
175,997
|
Real estate
construction loans
|
453,469
|
|
441,543
|
|
345,560
|
Installment &
other loans
|
1,344
|
|
2,493
|
|
5,370
|
|
|
|
|
|
|
Gross
loans
|
$ 10,363,647
|
|
$
10,163,452
|
|
$ 9,224,797
|
|
|
|
|
|
|
Allowance for loan
losses
|
(134,552)
|
|
(138,963)
|
|
(156,089)
|
Unamortized deferred
loan fees
|
(7,585)
|
|
(8,262)
|
|
(11,116)
|
|
|
|
|
|
|
Total loans,
net
|
$ 10,221,510
|
|
$
10,016,227
|
|
$ 9,057,592
|
Loans held for
sale
|
$
-
|
|
$
6,676
|
|
$
-
|
Total deposits were $10.3 billion
at March 31, 2016, a decrease of
$185 million from $10.5 billion at December
31, 2015, primarily due to a $188
million decrease in brokered deposits. The deposit
balances and composition at March 31,
2016, compared to December 31,
2015, and to March 31, 2015,
are presented below:
|
March 31,
2016
|
|
December 31,
2015
|
|
March 31,
2015
|
|
(Dollars in
thousands)
|
Non-interest-bearing
demand deposits
|
$
2,059,073
|
|
$
2,033,048
|
|
$ 1,691,173
|
NOW
deposits
|
992,278
|
|
966,404
|
|
822,940
|
Money market
deposits
|
1,923,114
|
|
1,905,719
|
|
1,551,453
|
Savings
deposits
|
602,154
|
|
618,164
|
|
557,924
|
Time
deposits
|
4,747,497
|
|
4,985,752
|
|
4,489,760
|
Total
deposits
|
$
10,324,116
|
|
$
10,509,087
|
|
$ 9,113,250
|
ASSET QUALITY REVIEW
At March 31, 2016, total
non-accrual loans were $44.6 million,
a decrease of $35.7 million, or
44.4%, from $80.3 million at
March 31, 2015, and a decrease of
$7.5 million, or 14.4% from
$52.1 million at December 31, 2015.
The allowance for loan losses was $134.6
million and the allowance for off-balance sheet unfunded
credit commitments was $2.7 million
at March 31, 2016, which represented
the amount believed by management to be appropriate to absorb
credit losses inherent in the loan portfolio, including unfunded
commitments. The $134.6 million
allowance for loan losses at March 31,
2016, decreased $4.4 million,
or 3.2%, from $139.0 million at
December 31, 2015. The
allowance for loan losses represented 1.30% of period-end gross
loans, excluding loans held for sale, and 301.4% of non-performing
loans at March 31, 2016. The
comparable ratios were 1.37% of period-end gross loans, excluding
loans held for sale, and 266.6% of non-performing loans at
December 31, 2015. The changes
in non-performing assets and troubled debt restructurings at
March 31, 2016, compared to
December 31, 2015, and to
March 31, 2015, are highlighted
below:
(Dollars in
thousands)
|
March 31,
2016
|
|
December 31,
2015
|
|
% Change
|
|
March 31,
2015
|
|
% Change
|
Non-performing
assets
|
|
|
|
|
|
|
|
|
|
Accruing loans past
due 90 days or more
|
$
-
|
|
$
-
|
|
-
|
|
$
787
|
|
(100)
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
|
Construction
loans
|
6,179
|
|
16,306
|
|
(62)
|
|
17,126
|
|
(64)
|
Commercial
real estate loans
|
28,537
|
|
25,231
|
|
13
|
|
43,079
|
|
(34)
|
Commercial
loans
|
2,645
|
|
3,545
|
|
(25)
|
|
12,086
|
|
(78)
|
Residential
mortgage loans
|
7,282
|
|
7,048
|
|
3
|
|
8,033
|
|
(9)
|
Total non-accrual
loans:
|
$
44,643
|
|
$
52,130
|
|
(14)
|
|
$
80,324
|
|
(44)
|
Total
non-performing loans
|
44,643
|
|
52,130
|
|
(14)
|
|
81,111
|
|
(45)
|
Other real
estate owned
|
27,271
|
|
24,701
|
|
10
|
|
30,799
|
|
(11)
|
Total
non-performing assets
|
$
71,914
|
|
$
76,831
|
|
(6)
|
|
$
111,910
|
|
(36)
|
Accruing
troubled debt restructurings (TDRs)
|
$
90,172
|
|
$
81,680
|
|
10
|
|
$
100,393
|
|
(10)
|
Non-accrual loans
held for sale
|
$
-
|
|
$
5,944
|
|
(100)
|
|
$
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
$
134,552
|
|
$
138,963
|
|
(3)
|
|
$
156,089
|
|
(14)
|
|
|
|
|
|
|
|
|
|
|
Total gross loans
outstanding, at period-end (1)
|
$
10,363,647
|
|
$
10,163,452
|
|
2
|
|
$
9,224,797
|
|
12
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses to non-performing loans, at period-end (2)
|
301.40%
|
|
266.57%
|
|
|
|
192.44%
|
|
|
Allowance for loan
losses to gross loans, at period-end (1)
|
1.30%
|
|
1.37%
|
|
|
|
1.69%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes loans
held for sale at period-end.
|
(2) Excludes
non-accrual loans held for sale at period-end.
|
Troubled debt restructurings on accrual status totaled
$90.2 million at March 31, 2016, compared to $81.7 million at December
31, 2015. These loans are classified as troubled debt
restructurings as a result of granting a concession to
borrowers. Although these loan modifications are considered
troubled debt restructurings under Accounting Standard Codification
310-40 and Accounting Standard Update 2011-02, these loans have
demonstrated sustained performance under the modified terms.
The sustained performance considered by management includes the
periods prior to the modification if the prior performance met or
exceeded the modified terms as well as cash paid to set up interest
reserves.
The ratio of non-performing assets, excluding non-accrual loans
held for sale, to total assets was 0.5% at March 31, 2016, compared to 0.6% at December 31, 2015. Total non-performing
assets decreased $4.9 million, or
6.4%, to $71.9 million at
March 31, 2016, compared to
$76.8 million at December 31, 2015, primarily due to a
$7.5 million, or 14.4%, decrease in
non-accrual loans offset by a $2.6
million increase in other real estate owned.
CAPITAL ADEQUACY REVIEW
At March 31, 2016, the Company's
common equity Tier 1 capital ratio of 12.60%, Tier 1
risk-based capital ratio of 13.67%, total risk-based capital ratio
of 14.93%, and Tier 1 leverage capital ratio of 11.73%, calculated
under the new Basel III capital rules that became effective
January 1, 2015, continue to place
the Company in the "well capitalized" category for regulatory
purposes, which is defined as institutions with a common equity
tier 1 capital ratio equal to or greater than 6.5%, 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, 2015, the Company's common equity
Tier 1 capital ratio was 12.95%, Tier 1 risk-based capital ratio
was 14.03%, total risk-based capital ratio was 15.30%, and Tier 1
leverage capital ratio was 11.95%.
CONFERENCE CALL
Cathay General Bancorp will host a conference call this
afternoon to discuss its first quarter 2016 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 86705150. 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 33 branches in
California, 12 branches in
New York State, three in the
Chicago, Illinois area, three in
Washington State, two in
Texas, one in Maryland, one in Massachusetts, one in Nevada, one in New
Jersey, one in Hong Kong,
and a representative office in Shanghai and in Taipei. Cathay Bank's website is found at
http://www.cathaybank.com. Cathay General Bancorp's website is
found at http://www.cathaygeneralbancorp.com. Information set
forth on such websites is not incorporated into this press
release.
FORWARD-LOOKING STATEMENTS
Statements made in this press release, other than statements of
historical fact, are forward-looking statements within the meaning
of the applicable provisions of the Private Securities Litigation
Reform Act of 1995 regarding management's beliefs, projections, and
assumptions concerning future results and events. These
forward-looking statements may include, but are not limited to,
such words as "aims," "anticipates," "believes," "can," "continue,"
"could," "estimates," "expects," "hopes," "intends," "may,"
"plans," "projects," "predicts," "potential," "possible,"
"optimistic," "seeks," "shall," "should," "will," and variations of
these words and similar expressions. Forward-looking statements are
based on estimates, beliefs, projections, and assumptions of
management and are not guarantees of future performance. These
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from our historical experience and our present expectations or
projections. Such risks and uncertainties and other factors
include, but are not limited to, adverse developments or conditions
related to or arising from U.S. and international business and
economic conditions; possible additional provisions for loan losses
and charge-offs; credit risks of lending activities and
deterioration in asset or credit quality; extensive laws and
regulations and supervision that we are subject to including
potential future supervisory action by bank supervisory
authorities; increased costs of compliance and other risks
associated with changes in regulation including the implementation
of the Dodd-Frank Wall Street Reform and Consumer Protection Act
(the "Dodd-Frank Act"); higher capital requirements from the
implementation of the Basel III capital standards; compliance with
the Bank Secrecy Act and other money laundering statutes and
regulations; potential goodwill impairment; liquidity risk;
fluctuations in interest rates; risks associated with acquisitions
and the expansion of our business into new markets; inflation and
deflation; real estate market conditions and the value of real
estate collateral; environmental liabilities; our ability to
compete with larger competitors; our ability to retain key
personnel; successful management of reputational risk; natural
disasters and geopolitical events; general economic or business
conditions in Asia, and other
regions where Cathay Bank has operations; failures, interruptions,
or security breaches of our information systems; our ability to
adapt our systems to technological changes; risk management
processes and strategies; adverse results in legal proceedings;
certain provisions in our charter and bylaws that may affect
acquisition of the Company; changes in accounting standards or tax
laws and regulations; market disruption and volatility;
restrictions on dividends and other distributions by laws and
regulations and by our regulators and our capital structure;
issuance of preferred stock; successfully raising additional
capital, if needed, and the resulting dilution of interests of
holders of our common stock; and the soundness of other financial
institutions.
These and other factors are further described in Cathay General
Bancorp's Annual Report on Form 10-K for the year ended
December 31, 2015 (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
|
|
(Dollars in
thousands, except per share data)
|
|
March 31,
2016
|
|
December 31,
2015
|
|
March 31,
2015
|
|
|
|
|
|
|
|
|
|
FINANCIAL
PERFORMANCE
|
|
|
|
|
|
|
|
Net interest income
before provision for credit
losses
|
|
$
102,368
|
|
$
99,416
|
|
$
87,926
|
|
Reversal for credit
losses
|
|
(10,500)
|
|
(3,000)
|
|
(5,000)
|
|
Net interest income
after reversal for credit losses
|
|
112,868
|
|
102,416
|
|
92,926
|
|
Non-interest
income
|
|
7,541
|
|
9,350
|
|
8,549
|
|
Non-interest
expense
|
|
51,571
|
|
53,533
|
|
44,131
|
|
Income before income
tax expense
|
|
68,838
|
|
58,233
|
|
57,344
|
|
Income tax
expense
|
|
22,675
|
|
16,787
|
|
21,364
|
|
Net income
|
|
$
46,163
|
|
$
41,446
|
|
$
35,980
|
|
|
|
|
|
|
|
|
|
Net income per common
share
|
|
|
|
|
|
|
|
Basic
|
|
$
0.58
|
|
$
0.51
|
|
$
0.45
|
|
Diluted
|
|
$
0.57
|
|
$
0.51
|
|
$
0.45
|
|
|
|
|
|
|
|
|
|
Cash dividends
paid per common share
|
|
$
0.18
|
|
$
0.18
|
|
$
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
RATIOS
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.43%
|
|
1.27%
|
|
1.30%
|
|
Return on average
total stockholders' equity
|
|
10.66%
|
|
9.40%
|
|
8.97%
|
|
Efficiency
ratio
|
|
46.92%
|
|
49.22%
|
|
45.74%
|
|
Dividend payout
ratio
|
|
30.72%
|
|
35.21%
|
|
22.18%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELD ANALYSIS
(Fully taxable equivalent)
|
|
|
|
|
|
|
|
Total
interest-earning assets
|
|
4.09%
|
|
3.97%
|
|
4.08%
|
|
Total
interest-bearing liabilities
|
|
0.89%
|
|
0.89%
|
|
0.88%
|
|
Net interest
spread
|
|
3.20%
|
|
3.08%
|
|
3.20%
|
|
Net interest
margin
|
|
3.42%
|
|
3.30%
|
|
3.41%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS
|
|
March 31,
2016
|
|
December 31,
2015
|
|
March 31,
2015
|
|
Common Equity Tier 1
capital ratio
|
|
12.60%
|
|
12.95%
|
|
13.35%
|
|
Tier 1 risk-based
capital ratio
|
|
13.67%
|
|
14.03%
|
|
14.52%
|
|
Total risk-based
capital ratio
|
|
14.93%
|
|
15.30%
|
|
15.79%
|
|
Tier 1 leverage
capital ratio
|
|
11.73%
|
|
11.95%
|
|
13.16%
|
|
|
|
|
|
|
|
|
|
CATHAY GENERAL
BANCORP
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
(In thousands, except
share and per share data)
|
|
March 31,
2016
|
|
December 31,
2015
|
|
March 31,
2015
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
192,642
|
|
$
180,130
|
|
$
182,159
|
Short-term
investments and interest bearing deposits
|
|
432,384
|
|
536,880
|
|
618,726
|
Securities available-for-sale (amortized cost of
$1,476,424 in 2016 and $1,595,723 in 2015)
|
|
1,485,124
|
|
1,586,352
|
|
1,203,682
|
Loans held for
sale
|
|
-
|
|
6,676
|
|
-
|
Loans
|
|
10,363,647
|
|
10,163,452
|
|
9,224,797
|
Less: Allowance
for loan losses
|
|
(134,552)
|
|
(138,963)
|
|
(156,089)
|
Unamortized
deferred loan fees, net
|
|
(7,585)
|
|
(8,262)
|
|
(11,116)
|
Loans,
net
|
|
10,221,510
|
|
10,016,227
|
|
9,057,592
|
Federal Home Loan
Bank stock
|
|
17,250
|
|
17,250
|
|
25,000
|
Other real estate
owned, net
|
|
27,271
|
|
24,701
|
|
30,799
|
Affordable housing
investments and alternative energy partnerships, net
|
|
212,795
|
|
182,943
|
|
129,829
|
Premises and
equipment, net
|
|
108,231
|
|
108,924
|
|
98,512
|
Customers' liability
on acceptances
|
|
26,843
|
|
40,335
|
|
17,956
|
Accrued interest
receivable
|
|
32,517
|
|
30,558
|
|
26,584
|
Goodwill
|
|
372,189
|
|
372,189
|
|
316,340
|
Other intangible
assets, net
|
|
3,497
|
|
3,677
|
|
3,084
|
Other
assets
|
|
129,766
|
|
147,284
|
|
199,826
|
|
|
|
|
|
|
|
Total
assets
|
|
$
13,262,019
|
|
$
13,254,126
|
|
$
11,910,089
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
Non-interest-bearing
demand deposits
|
|
$
2,059,073
|
|
$
2,033,048
|
|
$
1,691,173
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
NOW
deposits
|
|
992,278
|
|
966,404
|
|
822,940
|
Money market
deposits
|
|
1,923,114
|
|
1,905,719
|
|
1,551,453
|
Savings
deposits
|
|
602,154
|
|
618,164
|
|
557,924
|
Time
deposits
|
|
4,747,497
|
|
4,985,752
|
|
4,489,760
|
Total
deposits
|
|
10,324,116
|
|
10,509,087
|
|
9,113,250
|
|
|
|
|
|
|
|
Securities sold under
agreements to repurchase
|
|
400,000
|
|
400,000
|
|
400,000
|
Advances from the
Federal Home Loan Bank
|
|
475,000
|
|
275,000
|
|
485,000
|
Other borrowings for
affordable housing investments
|
|
17,792
|
|
18,593
|
|
22,482
|
Long-term
debt
|
|
119,136
|
|
119,136
|
|
119,136
|
Acceptances
outstanding
|
|
26,843
|
|
40,335
|
|
17,956
|
Other
liabilities
|
|
164,459
|
|
144,197
|
|
118,019
|
Total
liabilities
|
|
11,527,346
|
|
11,506,348
|
|
10,275,843
|
Commitments and
contingencies
|
|
-
|
|
-
|
|
-
|
Stockholders'
Equity
|
|
|
|
|
|
|
Common stock, $0.01
par value, 100,000,000 shares authorized, 87,047,371 issued and
78,836,728 outstanding at March 31, 2016, and 87,002,931 issued and 80,806,116 outstanding at
December 31, 2015
|
|
870
|
|
870
|
|
841
|
Additional
paid-in-capital
|
|
882,825
|
|
880,822
|
|
787,956
|
Accumulated other
comprehensive loss, net
|
|
(1,073)
|
|
(8,426)
|
|
(646)
|
Retained
earnings
|
|
1,091,640
|
|
1,059,660
|
|
971,831
|
Treasury stock, at cost (8,210,643 shares at March
31, 2016, and 6,196,815 at December 31,
2015)
|
|
(239,589)
|
|
(185,148)
|
|
(125,736)
|
|
|
|
|
|
|
|
Total
equity
|
|
1,734,673
|
|
1,747,778
|
|
1,634,246
|
Total liabilities and
equity
|
|
$
13,262,019
|
|
$
13,254,126
|
|
$
11,910,089
|
|
|
|
|
|
|
|
Book value per common
share
|
|
$21.88
|
|
$21.46
|
|
$20.37
|
Number of common
shares outstanding
|
|
78,836,728
|
|
80,806,116
|
|
79,901,042
|
CATHAY GENERAL
BANCORP
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
|
Three months
ended
|
|
|
|
March 31,
2016
|
December 31,
2015
|
March 31,
2015
|
|
|
|
(In thousands, except
share and per share data)
|
INTEREST AND
DIVIDEND INCOME
|
|
|
|
|
|
Loan receivable,
including loan fees
|
|
$
114,890
|
$
112,583
|
$
100,100
|
|
Investment
securities
|
|
6,859
|
6,261
|
3,774
|
|
Federal Home Loan
Bank stock
|
|
347
|
382
|
581
|
|
Deposits with
banks
|
|
249
|
293
|
479
|
|
|
|
|
|
|
|
Total interest and
dividend income
|
|
122,345
|
119,519
|
104,934
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
Time
deposits
|
|
10,857
|
11,122
|
6,773
|
|
Other
deposits
|
|
3,640
|
3,435
|
4,793
|
|
Securities sold under
agreements to repurchase
|
|
3,934
|
3,977
|
3,925
|
|
Advances from Federal
Home Loan Bank
|
|
106
|
113
|
93
|
|
Long-term
debt
|
|
1,440
|
1,456
|
1,424
|
|
|
|
|
|
|
|
Total interest
expense
|
|
19,977
|
20,103
|
17,008
|
|
|
|
|
|
|
|
Net interest income
before reversal for credit losses
|
|
102,368
|
99,416
|
87,926
|
|
Reversal for credit
losses
|
|
(10,500)
|
(3,000)
|
(5,000)
|
|
|
|
|
|
|
|
Net interest income
after reversal for credit losses
|
|
112,868
|
102,416
|
92,926
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
Securities
(losses)/gains, net
|
|
(206)
|
20
|
(21)
|
|
Letters of credit
commissions
|
|
1,281
|
1,431
|
1,268
|
|
Depository service
fees
|
|
1,323
|
1,345
|
1,301
|
|
Other operating
income
|
|
5,143
|
6,554
|
6,001
|
|
|
|
|
|
|
|
Total non-interest
income
|
|
7,541
|
9,350
|
8,549
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
Salaries and employee
benefits
|
|
26,931
|
22,156
|
22,616
|
|
Occupancy
expense
|
|
4,369
|
4,599
|
4,021
|
|
Computer and
equipment expense
|
|
2,580
|
2,513
|
2,502
|
|
Professional services
expense
|
|
4,368
|
4,440
|
3,370
|
|
Data processing
service expense
|
|
2,250
|
1,876
|
1,982
|
|
FDIC and State
assessments
|
|
2,589
|
2,180
|
2,260
|
|
Marketing
expense
|
|
796
|
1,349
|
820
|
|
Other real estate
owned expense
|
|
295
|
253
|
483
|
|
Amortization of
investments in low income housing and alternative energy
partnerships
|
|
2,794
|
10,058
|
2,383
|
|
Amortization of core
deposit intangibles
|
|
172
|
174
|
177
|
|
Other operating
expense
|
|
4,427
|
3,935
|
3,517
|
|
|
|
|
|
|
|
Total non-interest
expense
|
|
51,571
|
53,533
|
44,131
|
|
|
|
|
|
|
|
Income before income
tax expense
|
|
68,838
|
58,233
|
57,344
|
|
Income tax
expense
|
|
22,675
|
16,787
|
21,364
|
|
Net income
|
|
$
46,163
|
$
41,446
|
$
35,980
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
Basic
|
|
$
0.58
|
$
0.51
|
$
0.45
|
|
Diluted
|
|
$
0.57
|
$
0.51
|
$
0.45
|
|
|
|
|
|
|
|
Cash dividends paid
per common share
|
|
$
0.18
|
$
0.18
|
$
0.10
|
|
Basic average common
shares outstanding
|
|
79,734,519
|
80,981,582
|
79,835,628
|
|
Diluted average
common shares outstanding
|
|
80,393,849
|
81,857,429
|
80,309,383
|
|
CATHAY GENERAL
BANCORP
|
AVERAGE BALANCES –
SELECTED CONSOLIDATED FINANCIAL INFORMATION
|
(Unaudited)
|
|
|
Three months
ended
|
|
(In
thousands)
|
March 31,
2016
|
|
December 31,
2015
|
|
March 31,
2015
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets
|
Average
Balance
|
Average
Yield/Rate (1)
|
|
Average
Balance
|
Average
Yield/Rate (1)
|
|
Average
Balance
|
Average
Yield/Rate (1)
|
Loans (1)
|
$ 10,290,571
|
4.49%
|
|
$ 10,091,207
|
4.43%
|
|
$ 9,078,177
|
4.47%
|
Taxable investment
securities
|
1,555,849
|
1.77%
|
|
1,499,861
|
1.66%
|
|
1,164,032
|
1.31%
|
FHLB stock
|
17,250
|
8.09%
|
|
17,250
|
8.79%
|
|
30,271
|
7.78%
|
Deposits with
banks
|
164,598
|
0.61%
|
|
327,948
|
0.35%
|
|
169,633
|
1.15%
|
|
|
|
|
|
|
|
|
|
Total
interest-earning assets
|
$ 12,028,268
|
4.09%
|
|
$ 11,936,266
|
3.97%
|
|
$ 10,442,113
|
4.08%
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
$ 965,779
|
0.16%
|
|
$ 924,423
|
0.16%
|
|
$ 798,985
|
0.16%
|
Money market
deposits
|
1,925,410
|
0.63%
|
|
1,802,341
|
0.62%
|
|
1,538,722
|
0.60%
|
Savings
deposits
|
620,627
|
0.16%
|
|
615,778
|
0.16%
|
|
532,372
|
0.14%
|
Time
deposits
|
4,900,488
|
0.89%
|
|
5,067,000
|
0.87%
|
|
4,304,872
|
0.83%
|
Total
interest-bearing deposits
|
$ 8,412,304
|
0.69%
|
|
$ 8,409,542
|
0.69%
|
|
$ 7,174,951
|
0.65%
|
Securities sold under
agreements to repurchase
|
400,000
|
3.96%
|
|
400,000
|
3.94%
|
|
403,333
|
3.95%
|
Other borrowed
funds
|
84,784
|
0.50%
|
|
67,609
|
0.66%
|
|
100,072
|
0.38%
|
Long-term
debt
|
119,136
|
4.86%
|
|
119,136
|
4.85%
|
|
119,136
|
4.85%
|
Total
interest-bearing liabilities
|
9,016,224
|
0.89%
|
|
8,996,287
|
0.89%
|
|
7,797,492
|
0.88%
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
demand deposits
|
2,033,694
|
|
|
1,993,135
|
|
|
1,665,791
|
|
|
|
|
|
|
|
|
|
|
Total deposits and
other borrowed funds
|
$ 11,049,918
|
|
|
$ 10,989,422
|
|
|
$ 9,463,283
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
$ 12,972,572
|
|
|
$ 12,919,839
|
|
|
$ 11,202,861
|
|
Total average
equity
|
$ 1,741,744
|
|
|
$ 1,748,825
|
|
|
$ 1,627,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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