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
June 30, 2022. The Company reported net income of $89.0 million, or
$1.18 per share, for the second quarter of 2022.
FINANCIAL PERFORMANCE
Three months ended (unaudited) June 30, 2022 March 31, 2022 June
30, 2021 Net income $89.0 million $75.0 million $77.2 million Basic
earnings per common share
$1.19
$1.00
$0.98
Diluted earnings per common share
$1.18
$0.99
$0.97
Return on average assets
1.69%
1.46%
1.60%
Return on average total stockholders' equity
14.62%
12.29%
12.53%
Efficiency ratio
39.06%
40.52%
43.41%
SECOND QUARTER HIGHLIGHTS
- Total loans increased to $17.8 billion, or 9.5% annualized, in
the second quarter.
- Earnings per share increased 19.3% compared to first quarter of
2022 and 21.6% when compared to same quarter in 2021.
“Net interest income for the quarter increased by 18.4% compared
to the same quarter last year primarily as a result of loan growth
and the higher level of interest rates. During the second quarter,
we repurchased 0.75 million shares at an average cost of $40.78 per
share, for a total of $30.6 million,” commented Chang M. Liu,
President and Chief Executive Officer of the Company.
SECOND QUARTER INCOME STATEMENT REVIEW
Net income for the quarter ended June 30, 2022, was $89.0
million, an increase of $11.8 million, or 15.3%, compared to net
income of $77.2 million for the same quarter a year ago. Diluted
earnings per share for the quarter ended June 30, 2022, was $1.18
per share compared to $0.97 per share for the same quarter a year
ago.
Return on average stockholders’ equity was 14.62% and return on
average assets was 1.69% for the quarter ended June 30, 2022,
compared to a return on average stockholders’ equity of 12.53% and
a return on average assets of 1.60% for the same quarter a year
ago.
Net interest income before provision for credit losses
Net interest income before provision for credit losses increased
$27.2 million, or 18.4%, to $175.1 million during the second
quarter of 2022, compared to $148.0 million during the same quarter
a year ago. The increase was due primarily to an increase in
interest income from loans and securities and a decrease in
interest expense from deposits.
The net interest margin was 3.52% for the second quarter of 2022
compared to 3.24% for the second quarter of 2021 and 3.26% for the
first quarter of 2022.
For the second quarter of 2022, the yield on average
interest-earning assets was 3.81%, the cost of funds on average
interest-bearing liabilities was 0.41%, and the cost of
interest-bearing deposits was 0.37%. In comparison, for the second
quarter of 2021, the yield on average interest-earning assets was
3.62%, the cost of funds on average interest-bearing liabilities
was 0.53%, and the cost of interest-bearing deposits was 0.48%. The
increase in the yield on average interest-earning assets resulted
mainly from higher interest rates. 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 3.40% for the quarter ended June 30, 2022,
compared to 3.09% for the same quarter a year ago.
(Reversal)/provision for credit losses
The Company recorded a provision for credit losses of $2.5
million in the second quarter of 2022 compared with $8.6 million in
the first quarter of 2022 and a reversal for credit losses of $9.0
million in the second quarter of 2021. As of June 30, 2022, the
allowance for loan losses increased $12.6 million to $148.8
million, or 0.84% of gross loans, compared to $136.2 million, or
0.83% of gross loans, as of December 31, 2021. The change in the
allowance for loan losses during the second quarter of 2022
consisted of a $2.8 million provision for loan losses, and $218
thousand in net recoveries.
Three months ended Six months ended June 30, June 30, 2022 March
31, 2022 June 30, 2021
2022
2021
(In thousands) (Unaudited) Charge-offs: Commercial loans
$
50
$
221
$
7,712
$
272
$
16,850
Real estate loans (1)
1
—
—
1
—
Total charge-offs
51
221
7,712
273
16,850
Recoveries: Commercial loans
175
359
155
534
1,425
Construction loans
—
6
—
6
—
Real estate loans (1)
94
146
303
240
413
Total recoveries
269
511
458
780
1,838
Net charge-offs/(recoveries)
$
(218)
$
(290)
$
7,254
$
(507)
$
15,012
(1) Real estate loans include commercial mortgage loans,
residential mortgage loans, equity lines and installment &
other loans.
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
$14.6 million for the second quarter of 2022, an increase of $2.0
million, or 15.9%, compared to $12.6 million for the second quarter
of 2021. The increase was primarily due to an increase of $0.9
million in loan fees, when compared to the same quarter a year
ago.
Non-interest expense
Non-interest expense increased $4.4 million, or 6.3%, to $74.1
million in the second quarter of 2022 compared to $69.7 million in
the same quarter a year ago. The increase in non-interest expense
in the second quarter of 2022 was primarily due to an increase of
$4.5 million in salaries and employee benefits, due in part to the
acquisition of certain West Coast HSBC branches, an increase of
$1.9 million in professional service expenses, offset, in part, by
a decrease of $3.4 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
39.1% in the second quarter of 2022 compared to 43.4% for the same
quarter a year ago.
Income taxes
The effective tax rate for the second quarter of 2022 was 21.4%
compared to 22.7% for the second quarter of 2021. The effective tax
rate includes the impact of alternative energy investments and
low-income housing tax credits.
BALANCE SHEET REVIEW
Gross loans were $17.8 billion as of June 30, 2022, an increase
of $1.4 billion, or 8.6%, from $16.3 billion as of December 31,
2021. The increase was primarily due to an increase of $212.1
million, or 7.1%, in commercial loans, an increase of $863.4
million, or 20.7%, in residential mortgage loans, which included
$592.9 million acquired from the acquisition of certain HSBC West
Coast branches, and an increase of $419.7 million, or 5.2%, in
commercial mortgage loans, offset, in part, by a decrease of $42.5
million, or 10.1%, in home equity loans. For the second quarter of
2022, total loans, increased by $389.5 million or 9.5%
annualized.
The loan balances and composition as of June 30, 2022, compared
to December 31, 2021 and June 30, 2021, are presented below:
June 30, 2022 December 31, 2021 June 30, 2021
(In
thousands) (Unaudited) Commercial loans
$
3,168,123
$
2,891,914
$
2,628,534
Paycheck protection program loans
26,386
90,485
238,904
Residential mortgage loans
5,045,383
4,182,006
4,103,736
Commercial mortgage loans
8,563,001
8,143,272
7,615,087
Equity lines
377,009
419,487
436,801
Real estate construction loans
602,052
611,031
664,495
Installment and other loans
5,934
4,284
3,132
Gross loans
$
17,787,888
$
16,342,479
$
15,690,689
Allowance for loan losses
(148,772)
(136,157)
(131,256)
Unamortized deferred loan fees
(5,540)
(4,321)
(6,865)
Total loans, net
$
17,633,576
$
16,202,001
$
15,552,568
Total deposits were $18.3 billion as of June 30, 2022, an
increase of $228.5 million, or 1.3%, from $18.1 billion as of
December 31, 2021. During the second quarter of 2022, our deposits
increased by $227.0 million, or 5.0% annualized.
The deposit balances and composition as of June 30, 2022,
compared to December 31, 2021 and June 30, 2021, are presented
below:
June 30, 2022 December 31, 2021 June 30, 2021
(In
thousands) (Unaudited) Non-interest-bearing demand deposits
$
4,433,959
$
4,492,054
$
3,664,931
NOW deposits
2,494,524
2,522,442
2,026,154
Money market deposits
5,322,510
4,611,579
4,003,043
Savings deposits
1,178,572
915,515
900,106
Time deposits
4,857,762
5,517,252
5,943,278
Total deposits
$
18,287,327
$
18,058,842
$
16,537,512
ASSET QUALITY REVIEW
As of June 30, 2022, total non-accrual loans were $60.7 million,
a decrease of $5.2 million, or 7.9%, from $65.8 million as of
December 31, 2021, and a decrease of $7.1 million, or 10.5%, from
$67.8 million as of June 30, 2021.
The allowance for loan losses was $148.8 million and the
allowance for off-balance sheet unfunded credit commitments was
$6.1 million as of June 30, 2022. The allowances represent the
amount estimated by management to be appropriate to absorb credit
losses inherent in the loan portfolio, including unfunded credit
commitments. The allowance for loan losses represented 0.84% of
period-end gross loans, and 238.5% of non-performing loans as of
June 30, 2022. The comparable ratios were 0.83% of period-end gross
loans, and 202.4% of non-performing loans as of December 31,
2021.
The changes in non-performing assets and troubled debt
restructurings as of June 30, 2022, compared to December 31, 2021
and June 30, 2021, are presented below:
(Dollars in thousands) (Unaudited)
June 30, 2022
December 31, 2021
%Change
June 30, 2021
%Change
Non-performing assets Accruing loans past due
90 days or more
$
1,737
$
1,439
21
$
1,513
15
Non-accrual loans: Construction loans
—
—
—
4,116
(100)
Commercial mortgage loans
15,141
38,173
(60)
36,884
(59)
Commercial loans
27,849
16,558
68
16,333
71
Residential mortgage loans
17,583
11,115
58
10,449
68
Installment and other loans
79
—
—
—
—
Total non-accrual loans:
$
60,652
$
65,846
(8)
$
67,782
(11)
Total non-performing loans
62,389
67,285
(7)
69,295
(10)
Other real estate owned
4,067
4,368
(7)
4,871
(17)
Total non-performing assets
$
66,456
$
71,653
(7)
$
74,166
(10)
Accruing troubled debt restructurings (TDRs)
$
12,675
$
12,837
(1)
$
27,261
(54)
Allowance for loan losses
$
148,772
$
136,157
9
$
131,256
13
Total gross loans outstanding, at period-end
$
17,787,888
$
16,342,479
9
$
15,690,689
13
Allowance for loan losses to non-performing loans, at
period-end
238.46%
202.36%
189.42%
Allowance for loan losses to gross loans, at period-end
0.84%
0.83%
0.84%
The ratio of non-performing assets to total assets was 0.3% as
of June 30, 2022, compared to 0.3% as of December 31, 2021. Total
non-performing assets decreased $5.2 million, or 7.3%, to $66.5
million as of June 30, 2022, compared to $71.7 million as of
December 31, 2021, primarily due to a decrease of $5.2 million, or
7.9%, in nonaccrual loans and $301 thousand in other real estate
owned, offset in part, by an increase of $298 thousand, or 20.7%,
in accruing loans past due 90 days or more.
CAPITAL ADEQUACY REVIEW
As of June 30, 2022, the Company’s Tier 1 risk-based capital
ratio of 12.18%, total risk-based capital ratio of 13.74%, and Tier
1 leverage capital ratio of 10.15%, 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 December 31, 2021, the Company’s Tier 1
risk-based capital ratio was 12.80%, total risk-based capital ratio
was 14.41%, and Tier 1 leverage capital ratio was 10.40%.
CONFERENCE CALL
Cathay General Bancorp will host a conference call to discuss
its second quarter 2022 financial results this afternoon, Monday,
July 25, 2022, at 3:00 p.m., Pacific Time. Analysts and investors
may dial in and participate in the question-and-answer session. To
access dial-in information, please register at
https://register.vevent.com/register/BI66b30b75e6404795bddccf676282eccc.
The presentation accompanying this call and access to the live
webcast is available on our site at www.cathaygeneralbancorp.com.
You can also access the live webcast from
https://edge.media-server.com/mmc/p/xufoitrk or a replay of the
webcast on our website, which will be archived for one year, within
24 hours after the event.
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 47 branches in California, 10 branches in New York State,
four in Washington State, two 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 at 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
(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, 2021 (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 Six
months ended June 30, (Dollars in thousands, except per share data)
June 30, 2022
March 31, 2022
June 30, 2021
2022
2021
FINANCIAL PERFORMANCE
Net
interest income before (reversal)/provision for credit
losses
$
175,163
$
159,191
$
148,001
$
334,354
$
289,819
(Reversal)/provision for credit losses
2,500
8,643
(9,000)
11,143
(22,558)
Net interest income after (reversal)/provision for credit losses
172,663
150,548
157,001
323,211
312,377
Non-interest income
14,618
20,232
12,583
34,850
22,583
Non-interest expense
74,123
72,697
69,707
146,820
141,110
Income before income tax expense
113,158
98,083
99,877
211,241
193,850
Income tax expense
24,180
23,055
22,678
47,235
43,267
Net income
$
88,978
$
75,028
$
77,199
$
164,006
$
150,583
Net income per common share
Basic
$
1.19
$
1.00
$
0.98
$
2.18
$
1.90
Diluted
$
1.18
$
0.99
$
0.97
$
2.17
$
1.89
Cash dividends paid per common
share
$
0.34
$
0.34
$
0.31
$
0.68
$
0.62
SELECTED RATIOS
Return on average assets
1.69%
1.46%
1.60%
1.58%
1.58%
Return on average total stockholders’ equity
14.62%
12.29%
12.53%
13.54%
12.36%
Efficiency ratio
39.06%
40.52%
43.41%
39.77%
45.17%
Dividend payout ratio
28.70%
34.01%
31.80%
31.13%
32.67%
YIELD ANALYSIS
(Fully taxable equivalent)
Total interest-earning
assets
3.81%
3.53%
3.62%
3.67%
3.65%
Total interest-bearing liabilities
0.41%
0.38%
0.53%
0.39%
0.60%
Net interest spread
3.40%
3.15%
3.09%
3.28%
3.05%
Net interest margin
3.52%
3.26%
3.24%
3.39%
3.22%
CAPITAL RATIOS
June 30, 2022
December 31, 2021
June 30, 2021
Tier 1 risk-based capital ratio
12.18%
12.80%
13.77%
Total risk-based capital ratio
13.74%
14.41%
15.47%
Tier 1 leverage capital ratio
10.15%
10.40%
10.85%
.
CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(In thousands, except share and per share data) June 30,
2022 December 31, 2021 June 30, 2021
Assets Cash and
due from banks
$
141,734
$
134,141
$
133,507
Short-term investments and interest bearing deposits
1,012,228
2,315,563
1,589,086
Securities available-for-sale (amortized cost of $1,336,292 at June
30, 2022, $1,126,867 at December 31, 2021 and $991,715 at June 30,
2021)
1,234,571
1,127,309
1,002,515
Loans
17,787,888
16,342,479
15,690,689
Less: Allowance for loan losses
(148,772)
(136,157)
(131,256)
Unamortized deferred loan fees, net
(5,540)
(4,321)
(6,865)
Loans, net
17,633,576
16,202,001
15,552,568
Equity securities
26,785
22,319
20,113
Federal Home Loan Bank stock
17,250
17,250
17,250
Other real estate owned, net
4,067
4,368
4,871
Affordable housing investments and alternative energy partnerships,
net
321,717
299,211
286,833
Premises and equipment, net
97,565
99,402
100,917
Customers’ liability on acceptances
12,650
8,112
7,560
Accrued interest receivable
61,939
56,994
56,092
Goodwill
375,696
372,189
372,189
Other intangible assets, net
7,231
4,627
5,041
Right-of-use assets- operating leases
31,883
27,834
31,310
Other assets
256,661
195,403
168,510
Total assets
$
21,235,553
$
20,886,723
$
19,348,362
Liabilities and Stockholders’ Equity Deposits
Non-interest-bearing demand deposits
$
4,433,959
$
4,492,054
$
3,664,931
Interest-bearing deposits: NOW deposits
2,494,524
2,522,442
2,026,154
Money market deposits
5,322,510
4,611,579
4,003,043
Savings deposits
1,178,572
915,515
900,106
Time deposits
4,857,762
5,517,252
5,943,278
Total deposits
18,287,327
18,058,842
16,537,512
Advances from the Federal Home Loan Bank
95,000
20,000
20,000
Other borrowings for affordable housing investments
22,319
23,145
23,249
Long-term debt
119,136
119,136
119,136
Acceptances outstanding
12,650
8,112
7,560
Lease liabilities - operating leases
35,171
30,694
34,194
Other liabilities
232,418
180,544
154,354
Total liabilities
18,804,021
18,440,473
16,896,005
Stockholders' equity
2,431,532
2,446,250
2,452,357
Total liabilities and equity
$
21,235,553
$
20,886,723
$
19,348,362
Book value per common share
$
32.67
$
32.29
$
31.38
Number of common shares outstanding
74,421,884
75,750,862
78,158,590
CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Six months ended June 30, June 30, 2022
March 31, 2022 June 30, 2021
2022
2021
(In thousands, except share and per share data)
INTEREST
AND DIVIDEND INCOME Loan receivable,
including loan fees
$
181,022
$
166,094
$
161,493
$
347,116
$
321,214
Investment securities
5,748
4,828
3,189
10,576
6,256
Federal Home Loan Bank stock
255
261
255
516
472
Deposits with banks
2,508
763
438
3,271
753
Total interest and dividend income
189,533
171,946
165,375
361,479
328,695
INTEREST EXPENSE Time deposits
5,724
6,060
10,055
11,784
24,064
Other deposits
6,895
5,128
5,465
12,023
11,059
Advances from Federal Home Loan Bank
312
143
415
455
890
Long-term debt
1,439
1,424
1,439
2,863
2,863
Total interest expense
14,370
12,755
17,374
27,125
38,876
Net interest income before
(reversal)/provision for credit losses
175,163
159,191
148,001
334,354
289,819
(Reversal)/provision for credit losses
2,500
8,643
(9,000)
11,143
(22,558)
Net interest income after (reversal)/provision for credit losses
172,663
150,548
157,001
323,211
312,377
NON-INTEREST INCOME
Net (losses)/gains from equity securities
(955)
5,974
(879)
5,019
(3,631)
Securities gains, net
—
—
—
—
853
Letters of credit commissions
1,602
1,556
1,782
3,158
3,472
Depository service fees
1,632
1,671
1,343
3,303
2,706
Wealth management fees
3,956
4,354
3,939
8,310
7,496
Other operating income
8,383
6,677
6,398
15,060
11,687
Total non-interest income
14,618
20,232
12,583
34,850
22,583
NON-INTEREST EXPENSE Salaries and
employee benefits
37,301
35,475
32,758
72,776
65,480
Occupancy expense
5,562
5,613
4,960
11,175
10,006
Computer and equipment expense
3,297
2,956
3,647
6,253
6,918
Professional services expense
7,704
6,697
5,756
14,401
10,466
Data processing service expense
3,420
2,909
3,243
6,329
6,898
FDIC and State assessments
2,194
1,802
1,440
3,996
3,365
Marketing expense
1,740
947
1,443
2,687
4,325
Other real estate owned expense/(income)
(33)
71
191
38
285
Amortization of investments in low income housing and alternative
energy partnerships
7,235
8,287
10,682
15,522
22,252
Amortization of core deposit intangibles
250
224
171
474
343
Cost associated with debt redemption
—
—
—
—
732
Acquisition, integration and restructuring costs
91
3,936
—
4,027
—
Other operating expense
5,362
3,780
5,416
9,142
10,040
Total non-interest expense
74,123
72,697
69,707
146,820
141,110
Income before income tax expense
113,158
98,083
99,877
211,241
193,850
Income tax expense
24,180
23,055
22,678
47,235
43,267
Net income
$
88,978
$
75,028
$
77,199
$
164,006
$
150,583
Net income per common share: Basic
$
1.19
$
1.00
$
0.98
$
2.18
$
1.90
Diluted
$
1.18
$
0.99
$
0.97
$
2.17
$
1.89
Cash dividends paid per common share
$
0.34
$
0.34
$
0.31
$
0.68
$
0.62
Basic average common shares outstanding
74,958,913
75,331,976
79,167,004
75,144,414
79,347,886
Diluted average common shares outstanding
75,270,140
75,719,375
79,418,668
75,493,516
79,624,344
CATHAY GENERAL BANCORP
AVERAGE BALANCES – SELECTED
CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)
Three months ended
(In
thousands) June 30, 2022 March 31, 2022 June 30, 2021
Interest-earning assets AverageBalance
AverageYield/Rate (1) AverageBalance AverageYield/Rate (1)
AverageBalance AverageYield/Rate (1) Loans (1)
$
17,530,650
4.14%
$
16,939,787
3.98%
$
15,684,329
4.13%
Taxable investment securities
1,249,679
1.84%
1,174,245
1.67%
976,593
1.31%
FHLB stock
17,250
5.93%
17,250
6.13%
17,250
5.93%
Deposits with banks
1,173,702
0.86%
1,650,702
0.19%
1,633,686
0.11%
Total interest-earning assets
$
19,971,281
3.81%
$
19,781,984
3.53%
$
18,311,858
3.62%
Interest-bearing
liabilities Interest-bearing demand
deposits
$
2,459,940
0.13%
$
2,400,010
0.08%
$
1,967,069
0.13%
Money market deposits
5,291,824
0.45%
4,815,578
0.38%
3,951,549
0.47%
Savings deposits
1,183,821
0.07%
1,076,690
0.07%
896,747
0.09%
Time deposits
4,881,365
0.47%
5,289,313
0.46%
6,035,219
0.67%
Total interest-bearing deposits
$
13,816,950
0.37%
$
13,581,591
0.33%
$
12,850,584
0.48%
Other borrowed funds
82,660
1.52%
43,143
1.34%
93,442
1.79%
Long-term debt
119,136
4.85%
119,136
4.85%
119,136
4.84%
Total interest-bearing liabilities
14,018,746
0.41%
13,743,870
0.38%
13,063,162
0.53%
Non-interest-bearing demand
deposits
4,391,925
4,360,392
3,597,475
Total deposits and other
borrowed funds
$
18,410,671
$
18,104,262
$
16,660,637
Total average assets
$
21,079,634
$
20,864,531
$
19,347,886
Total average equity
$
2,441,128
$
2,445,412
$
2,471,388
Six months ended
(In thousands) June 30, 2022 June 30, 2021
Interest-earning assets AverageBalance
AverageYield/Rate (1) AverageBalance AverageYield/Rate (1)
Loans (1)
$
17,236,850
4.06%
$
15,688,131
4.13%
Taxable investment securities
1,212,170
1.76%
986,096
1.28%
FHLB stock
17,250
6.03%
17,250
5.52%
Deposits with banks
1,410,884
0.47%
1,459,498
0.10%
Total interest-earning assets
$
19,877,154
3.67%
$
18,150,975
3.65%
Interest-bearing
liabilities Interest-bearing demand
deposits
$
2,430,141
0.11%
$
1,928,941
0.14%
Money market deposits
5,055,017
0.41%
3,752,986
0.50%
Savings deposits
1,130,551
0.07%
871,286
0.10%
Time deposits
5,084,212
0.47%
6,218,967
0.78%
Total interest-bearing deposits
$
13,699,921
0.35%
$
12,772,180
0.55%
Other borrowed funds
63,011
1.46%
108,350
1.66%
Long-term debt
119,136
4.85%
119,136
4.85%
Total interest-bearing liabilities
13,882,068
0.39%
12,999,666
0.60%
Non-interest-bearing
demand deposits
4,376,246
3,502,495
Total deposits and other borrowed funds
$
18,258,314
$
16,502,161
Total average
assets
$
20,972,677
$
19,181,963
Total average equity
$
2,443,258
$
2,456,167
(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.
Three Months Ended June 30,
2022 March 31, 2022 June 30, 2021
Stockholders' equity (a)
$
2,431,532
$
2,446,250
$
2,452,357
Less: Goodwill
(375,696)
(372,189)
(372,189)
Other intangible assets (1)
(7,231)
(4,627)
(5,041)
Tangible equity (b)
$
2,048,605
$
2,069,434
$
2,075,127
Total assets (c)
$
21,235,553
$
20,886,723
$
19,348,362
Less: Goodwill
(375,696)
(372,189)
(372,189)
Other intangible assets (1)
(7,231)
(4,627)
(5,041)
Tangible assets (d)
$
20,852,626
$
20,509,907
$
18,971,132
Number of common shares
outstanding (e)
74,421,884
75,750,862
78,158,590
Total stockholders' equity to
total assets ratio (a)/(c)
11.45%
11.71%
12.67%
Tangible equity to tangible assets ratio (b)/(d)
9.82%
10.09%
10.94%
Tangible book value per share (b)/(e)
$
27.53
$
27.32
$
26.55
Three Months
Ended Six Months Ended June 30,
2022 March 31, 2022 June 30, 2021 June 30,
2022 June 30, 2021 Net Income
$
88,978
$
75,028
$
77,199
$
164,006
$
150,583
Add: Amortization of other intangibles
277
252
207
528
421
Tax effect of amortization adjustments (2)
(82)
(75)
(61)
(157)
(125)
Tangible net income (f)
$
89,173
$
75,205
$
77,345
$
164,377
$
150,879
Return on tangible common equity (3)
(f)/(b)
17.41%
14.54%
14.91%
16.05%
14.54%
(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/20220722005490/en/
Heng W. Chen (626) 279-3652
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