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 first quarter
ended March 31, 2023. The Company reported net income of $96.0
million, or $1.32 per share, for the first quarter of 2023.
FINANCIAL PERFORMANCE
Three months ended (unaudited) March 31, 2023 December 31, 2022
March 31, 2022 Net income
$ 96.0 million
$ 97.6 million
$ 75.0 million
Basic earnings per common share
$1.32
$1.33
$1.00
Diluted earnings per common share
$1.32
$1.33
$0.99
Return on average assets
1.76%
1.77%
1.46%
Return on average total stockholders' equity
15.39%
15.73%
12.44%
Efficiency ratio
40.25%
37.97%
40.52%
FIRST QUARTER HIGHLIGHTS
- Total deposits increased by $143.6 million, or 3.1% annualized,
to $18.6 billion in the first quarter of 2023.
- The net interest margin decreased to 3.74% in the first quarter
of 2023 from 3.87% in the fourth quarter of 2022.
- Diluted earnings per share decreased to $1.32 for the first
quarter of 2023 compared to $1.33 for the fourth quarter of
2022.
“For the first quarter of 2023, our total
deposits increased by $143.6 million or 3.1% annualized to $18.6
billion. We are prepared to operate during these challenging times
to serve the financial needs of our customers,” commented Chang M.
Liu, President and Chief Executive Officer of the Company.
INCOME STATEMENT REVIEW FIRST QUARTER 2023 COMPARED TO
THE FOURTH QUARTER 2022
Net income for the first quarter of 2023 was $96.0 million, a
decrease of $1.6 million, or 1.6%, compared to net income of $97.6
million for the fourth quarter of 2022. Net income for the first
quarter of 2023 included a $3.0 million write-off, or $0.03 per
share of Signature Bank debt securities. Diluted earnings per share
for the first quarter of 2023 was $1.32 per share compared to $1.33
per share for the fourth quarter of 2022.
Return on average stockholders’ equity was 15.39% and return on
average assets was 1.76% for the quarter ended March 31, 2023,
compared to a return on average stockholders’ equity of 15.73% and
a return on average assets of 1.77% in the fourth quarter of
2022.
Net interest income before provision for credit losses
Net interest income before provision for credit losses decreased
$9.4 million, or 4.7%, to $192.4 million during the first quarter
of 2023, compared to $201.8 million in the fourth quarter of 2022.
The decrease was due primarily to an increase in deposit interest
expense, offset by an increase in income from loans and
securities.
The net interest margin was 3.74% for the first quarter of 2023
compared to 3.87% for the fourth quarter of 2022.
For the first quarter of 2023, the yield on average
interest-earning assets was 5.54%, the cost of funds on average
interest-bearing liabilities was 2.46%, and the cost of
interest-bearing deposits was 2.40%. In comparison, for the fourth
quarter of 2022, the yield on average interest-earning assets was
5.06%, the cost of funds on average interest-bearing liabilities
was 1.66%, and the cost of interest-bearing deposits was 1.59%. The
increase in the yield on average interest-earning assets resulted
mainly from higher interest rates on loans and securities. 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 3.08% for the first quarter of
2023, compared to 3.40% for the fourth quarter of 2022.
Provision for credit losses
The Company recorded a provision for credit losses of $8.1
million in the first quarter of 2023 compared with $1.4 million in
the fourth quarter of 2022. As of March 31, 2023, the allowance for
credit losses, comprised of the reserve for loan losses and the
reserve for unfunded loan commitments, increased $3.3 million to
$158.5 million, or 0.87% of gross loans, compared to $155.2
million, or 0.85% of gross loans, as of December 31, 2022.
Three months ended March 31, 2023 December 31, 2022 March 31, 2022
(In thousands) (Unaudited)
Charge-offs: Commercial loans
$
3,911
$
860
$
221
Real estate loans (1)
3,990
2,094
—
Installment and other loans
6
37
—
Total charge-offs
7,907
2,991
221
Recoveries: Commercial loans
511
356
359
Construction loans
—
—
6
Real estate loans (1)
2,540
99
146
Total recoveries
3,051
455
511
Net charge-offs/(recoveries)
$
4,856
$
2,536
$
(290
)
(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), wealth management fees, and other sources of fee income,
was $14.2 million for the first quarter of 2023, an increase of
$2.2 million, or 18.2%, compared to $12.1 million for the fourth
quarter of 2022. The increase was primarily due to a $5.8 million
increase in unrealized gains on equity securities offset, in part,
by a $3.0 million write-off of an available for sale security from
Signature Bank when compared to the fourth quarter of 2022.
Non-interest expense
Non-interest expense increased $2.0 million, or 2.5%, to $83.2
million in the first quarter of 2023 compared to $81.2 million in
the fourth quarter of 2022. The increase in non-interest expense in
the first quarter of 2023 was primarily due to an increase of $3.1
million in salaries and employee benefits, and an increase of $1.1
million in FDIC deposit insurance assessment expense offset, in
part, by a decrease of $1.4 million in marketing expense when
compared to the fourth quarter of 2022. 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 40.3% in the first quarter of 2023 compared to 38.0% for the
fourth quarter of 2022.
Income taxes
The effective tax rate for the first quarter of 2023 was 16.8%
compared to 25.7% for the fourth quarter of 2022. The effective tax
rate includes the impact of alternative energy investments and
low-income housing tax credits.
BALANCE SHEET REVIEW
Gross loans were $18.32 billion as of March 31, 2023, an
increase of $63.3 million, or 0.3%, from $18.25 billion as of
December 31, 2022. The increase from December 31, 2022 was
primarily due to an increase of $131.3 million, or 2.5%, in
residential mortgage loans and an increase of $123.1 million, or
1.4%, in commercial mortgage loans offset, in part, by a decrease
of $165.7 million, or 5.0%, in commercial loans, and a decrease of
$25.9 million, or 8.0%, in home equity loans.
The loan balances and composition as of March 31, 2023, compared
to December 31, 2022, and March 31, 2022, are presented below:
March 31, 2023 December 31, 2022 March 31, 2022 (In thousands)
(Unaudited) Commercial loans
$
3,153,039
$
3,318,778
$
3,125,151
Residential mortgage loans
5,384,220
5,252,952
4,834,782
Commercial mortgage loans
8,916,766
8,793,685
8,401,742
Equity lines
298,630
324,548
398,851
Real estate construction loans
558,967
559,372
631,740
Installment and other loans
5,717
4,689
6,091
Gross loans
$
18,317,339
$
18,254,024
$
17,398,357
Allowance for loan losses
(144,884
)
(146,485
)
(145,786
)
Unamortized deferred loan fees
(5,872
)
(6,641
)
(4,679
)
Total loans, net
$
18,166,583
$
18,100,898
$
17,247,892
Total deposits were $18.65 billion as of March 31, 2023, an
increase of $143.6 million, or 0.8%, from $18.51 billion as of
December 31, 2022.
The deposit balances and composition as of March 31, 2023,
compared to December 31, 2022, and March 31, 2022, are presented
below:
March 31, 2023 December 31, 2022 March 31, 2022 (In thousands)
(Unaudited) Non-interest-bearing demand deposits
$
3,748,719
$
4,168,989
$
4,398,779
NOW deposits
2,354,195
2,509,736
2,435,725
Money market deposits
3,014,500
3,812,724
5,113,385
Savings deposits
891,061
1,000,460
1,156,727
Time deposits
8,640,397
7,013,370
4,955,645
Total deposits
$
18,648,872
$
18,505,279
$
18,060,261
ASSET QUALITY REVIEW
As of March 31, 2023, total non-accrual loans were $73.6
million, an increase of $4.7 million, or 6.8%, from $68.9 million
as of December 31, 2022.
The allowance for loan losses was $144.9 million and the
allowance for off-balance sheet unfunded credit commitments was
$13.6 million as of March 31, 2023. 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 0.79%
of period-end gross loans, and 167.81% of non-performing loans as
of March 31, 2023. The comparable ratios were 0.80% of period-end
gross loans, and 182.12% of non-performing loans as of December 31,
2022.
The changes in non-performing assets and troubled debt
restructurings as of March 31, 2023, compared to December 31, 2022,
and March 31, 2022, are presented below:
(Dollars in thousands)
(Unaudited)
March 31, 2023 December 31, 2022 % Change March 31, 2022 % Change
Non-performing assets
Accruing loans past due 90 days
or more
$
12,756
$
11,580
10
$
300
4,152
Non-accrual loans:
Construction loans
—
—
—
—
—
Commercial mortgage loans
40,218
34,096
18
38,095
6
Commercial loans
22,079
25,772
(14
)
36,282
(39
)
Residential mortgage loans
11,283
8,978
26
11,956
(6
)
Installment and other loans
—
8
(100
)
—
—
Total non-accrual loans
$
73,580
$
68,854
7
$
86,333
(15
)
Total non-performing loans
86,336
80,434
7
86,633
—
Other real estate owned
4,067
4,067
—
4,067
—
Total non-performing assets
$
90,403
$
84,501
7
$
90,700
—
Accruing troubled debt
restructurings (TDRs)1
$
—
$
15,145
(100
)
$
12,994
(100
)
Allowance for loan losses
$
144,884
$
146,485
(1
)
$
145,786
(1
)
Total gross loans outstanding, at
period-end
$
18,317,339
$
18,254,024
—
$
17,398,357
5
Allowance for loan losses to
non-performing loans, at period-end
167.81
%
182.12
%
168.28
%
Allowance for loan losses to
gross loans, at period-end
0.79
%
0.80
%
0.84
%
1 Current period TDR's are
reported in accordance with the new guidance under ASU 2022-02.
The ratio of non-performing assets to total assets was 0.4% as
of March 31, 2023, compared to 0.4% as of December 31, 2022. Total
non-performing assets increased $5.9 million, or 7.0%, to $90.4
million as of March 31, 2023, compared to $84.5 million as of
December 31, 2022, primarily due to an increase of $4.7 million, or
6.9%, in nonaccrual loans and an increase of $1.2 million, or
10.2%, in accruing loans past due 90 days or more.
CAPITAL ADEQUACY REVIEW
As of March 31, 2023, the Company’s Tier 1 risk-based capital
ratio of 12.42%, total risk-based capital ratio of 13.94%, and Tier
1 leverage capital ratio of 10.27%, 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, 2022, the Company’s Tier 1
risk-based capital ratio was 12.21%, total risk-based capital ratio
was 13.73%, and Tier 1 leverage capital ratio was 10.08%.
CONFERENCE CALL
Cathay General Bancorp will host a conference call to discuss
its first quarter 2023 financial results this afternoon, Thursday,
April 20, 2023, 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 10177602. 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 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 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, 2022 (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, 2023 December 31, 2022 March 31, 2022
Financial performance Net interest income before provision
for credit losses
$
192,435
$
201,814
$
159,191
Provision for credit losses
8,100
1,400
8,643
Net interest income after provision for credit losses
184,335
200,414
150,548
Non-interest income
14,244
12,088
20,232
Non-interest expense
83,186
81,224
72,697
Income before income tax expense
115,393
131,278
98,083
Income tax expense
19,386
33,677
23,055
Net income
$
96,007
$
97,601
$
75,028
Net income per common share Basic
$
1.32
$
1.33
$
1.00
Diluted
$
1.32
$
1.33
$
0.99
Cash dividends paid per common share
$
0.34
$
0.34
$
0.34
Selected ratios Return on average assets
1.76
%
1.77
%
1.46
%
Return on average total stockholders’ equity
15.39
%
15.73
%
12.44
%
Efficiency ratio
40.25
%
37.97
%
40.52
%
Dividend payout ratio
25.63
%
25.45
%
34.01
%
Yield analysis (Fully taxable equivalent) Total
interest-earning assets
5.54
%
5.06
%
3.53
%
Total interest-bearing liabilities
2.46
%
1.66
%
0.38
%
Net interest spread
3.08
%
3.40
%
3.15
%
Net interest margin
3.74
%
3.87
%
3.26
%
Capital ratios March 31, 2023 December 31, 2022 March
31, 2022 Tier 1 risk-based capital ratio
12.42
%
12.21
%
12.36
%
Total risk-based capital ratio
13.94
%
13.73
%
13.96
%
Tier 1 leverage capital ratio
10.27
%
10.08
%
10.11
%
CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(In thousands, except share and per share data) March 31,
2023 December 31, 2022 March 31, 2022
Assets Cash and
due from banks
$
252,048
$
195,440
$
138,979
Short-term investments and interest bearing deposits
881,282
966,962
1,119,105
Securities available-for-sale (amortized cost of $1,672,440 at
March 31, 2023, $1,622,173 at December 31, 2022 and $1,284,863 at
March 31, 2022)
1,541,250
1,473,348
1,219,541
Loans
18,317,339
18,254,024
17,398,357
Less: Allowance for loan losses
(144,884
)
(146,485
)
(145,786
)
Unamortized deferred loan fees, net
(5,872
)
(6,641
)
(4,679
)
Loans, net
18,166,583
18,100,898
17,247,892
Equity securities
27,011
22,158
27,740
Federal Home Loan Bank stock
17,250
17,250
17,250
Other real estate owned, net
4,067
4,067
4,067
Affordable housing investments and alternative energy partnerships,
net
316,475
327,128
289,430
Premises and equipment, net
93,204
94,776
98,795
Customers’ liability on acceptances
6,547
2,372
6,753
Accrued interest receivable
82,420
82,428
60,056
Goodwill
375,696
375,696
375,706
Other intangible assets, net
5,564
5,757
7,512
Right-of-use assets- operating leases
29,906
29,627
32,045
Other assets
232,298
250,069
221,699
Total assets
$
22,031,601
$
21,947,976
$
20,866,570
Liabilities and Stockholders’ Equity Deposits
Non-interest-bearing demand deposits
$
3,748,719
$
4,168,989
$
4,398,779
Interest-bearing deposits: NOW deposits
2,354,195
2,509,736
2,435,725
Money market deposits
3,014,500
3,812,724
5,113,385
Savings deposits
891,061
1,000,460
1,156,727
Time deposits
8,640,397
7,013,370
4,955,645
Total deposits
18,648,872
18,505,279
18,060,261
Advances from the Federal Home Loan Bank
360,000
485,000
20,000
Other borrowings for affordable housing investments
22,481
22,600
23,108
Long-term debt
119,136
119,136
119,136
Acceptances outstanding
6,547
2,372
6,753
Lease liabilities - operating leases
32,599
32,518
35,403
Other liabilities
299,627
307,031
179,679
Total liabilities
19,489,262
19,473,936
18,444,340
Stockholders' equity
2,542,339
2,474,040
2,422,230
Total liabilities and equity
$
22,031,601
$
21,947,976
$
20,866,570
Book value per common share
$
35.12
$
34.01
$
32.26
Number of common shares outstanding
72,390,694
72,742,151
75,078,258
CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended March 31, 2023 December 31, 2022 March
31, 2022 (In thousands, except share and per share data)
Interest and Dividend Income Loan receivable, including loan
fees
$
261,179
$
243,324
$
166,094
Investment securities
11,764
10,181
4,828
Federal Home Loan Bank stock
304
329
261
Deposits with banks
12,139
9,954
763
Total interest and dividend income
285,386
263,788
171,946
Interest Expense Time deposits
64,174
34,352
6,060
Other deposits
23,817
23,048
5,128
Advances from Federal Home Loan Bank
2,598
2,484
143
Long-term debt
1,443
1,228
1,424
Short-term borrowings
919
862
—
Total interest expense
92,951
61,974
12,755
Net interest income before provision for credit losses
192,435
201,814
159,191
Provision for credit losses
8,100
1,400
8,643
Net interest income after provision for credit losses
184,335
200,414
150,548
Non-Interest Income Net gains/(losses) from equity
securities
4,853
(966
)
5,974
Debt securities losses, net
(3,000
)
—
—
Letters of credit commissions
1,570
1,584
1,556
Depository service fees
1,832
1,530
1,671
Wealth management fees
3,897
3,942
4,354
Other operating income
5,092
5,998
6,677
Total non-interest income
14,244
12,088
20,232
Non-Interest Expense Salaries and employee benefits
38,226
35,093
35,475
Occupancy expense
5,504
5,658
5,613
Computer and equipment expense
4,285
3,842
2,956
Professional services expense
7,406
7,529
6,697
Data processing service expense
3,724
3,368
2,909
FDIC and State assessments
3,155
2,038
1,802
Marketing expense
774
2,171
947
Other real estate owned expense
50
34
71
Amortization of investments in low income housing andalternative
energy partnerships
15,594
14,594
8,287
Amortization of core deposit intangibles
250
1,168
224
Acquisition, integration and restructuring costs
—
—
3,936
Other operating expense
4,218
5,729
3,780
Total non-interest expense
83,186
81,224
72,697
Income before income tax expense
115,393
131,278
98,083
Income tax expense
19,386
33,677
23,055
Net income
$
96,007
$
97,601
$
75,028
Net income per common share: Basic
$
1.32
$
1.33
$
1.00
Diluted
$
1.32
$
1.33
$
0.99
Cash dividends paid per common share
$
0.34
$
0.34
$
0.34
Basic average common shares outstanding
72,533,239
73,130,500
75,331,976
Diluted average common shares outstanding
72,899,662
73,467,401
75,719,375
CATHAY GENERAL BANCORP
AVERAGE BALANCES – SELECTED
CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)
Three months ended (In thousands) March 31, 2023 December
31, 2022 March 31, 2022
Interest-earning assets
AverageBalance Average Yield/Rate(1) AverageBalance Average
Yield/Rate(1) AverageBalance Average Yield/Rate(1) Loans (1)
$
18,245,488
5.81
%
$
18,117,692
5.33
%
$
16,939,787
3.98
%
Taxable investment securities
1,548,841
3.08
%
1,493,472
2.70
%
1,174,245
1.67
%
FHLB stock
17,276
7.14
%
17,250
7.57
%
17,250
6.14
%
Deposits with banks
1,070,188
4.60
%
1,052,161
3.75
%
1,650,702
0.19
%
Total interest-earning assets
$
20,881,793
5.54
%
$
20,680,575
5.06
%
$
19,781,984
3.53
%
Interest-bearing liabilities Interest-bearing demand
deposits
$
2,354,531
1.12
%
$
2,514,877
0.78
%
$
2,400,010
0.08
%
Money market deposits
3,378,257
2.05
%
4,350,804
1.63
%
4,815,578
0.38
%
Savings deposits
938,485
0.10
%
1,064,019
0.09
%
1,076,690
0.07
%
Time deposits
8,225,215
3.16
%
6,403,334
2.13
%
5,289,313
0.46
%
Total interest-bearing deposits
$
14,896,488
2.40
%
$
14,333,034
1.59
%
$
13,581,591
0.33
%
Other borrowed funds
321,522
4.44
%
358,840
3.70
%
43,143
1.34
%
Long-term debt
119,136
4.91
%
119,136
4.09
%
119,136
4.85
%
Total interest-bearing liabilities
15,337,146
2.46
%
14,811,010
1.66
%
13,743,870
0.38
%
Non-interest-bearing demand deposits
3,958,533
4,337,065
4,360,392
Total deposits and other borrowed funds
$
19,295,679
$
19,148,075
$
18,104,262
Total average assets
$
22,098,431
$
21,917,339
$
20,864,531
Total average equity
$
2,530,719
$
2,461,524
$
2,445,412
(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 March 31, 2023 December 31, 2022 March 31, 2022
Stockholders' equity (a)
$
2,542,339
$
2,474,040
$
2,422,230
Less: Goodwill
(375,696
)
(375,696
)
(375,706
)
Other intangible assets (1)
(5,564
)
(5,757
)
(7,512
)
Tangible equity (b)
$
2,161,079
$
2,092,587
$
2,039,012
Total assets (c)
$
22,031,601
$
21,947,976
$
20,866,570
Less: Goodwill
(375,696
)
(375,696
)
(375,706
)
Other intangible assets (1)
(5,564
)
(5,757
)
(7,512
)
Tangible assets (d)
$
21,650,341
$
21,566,523
$
20,483,352
Number of common shares outstanding (e)
72,390,694
72,742,151
75,078,258
Total stockholders' equity to total assets ratio (a)/(c)
11.54
%
11.27
%
11.61
%
Tangible equity to tangible assets ratio (b)/(d)
9.98
%
9.70
%
9.95
%
Tangible book value per share (b)/(e)
$
29.85
$
28.77
$
27.16
Three months ended March 31, 2023 December 31, 2022 March
31, 2022 Net Income
$
96,007
$
97,601
$
75,028
Add: Amortization of other intangibles (1)
192
1,191
250
Tax effect of amortization adjustments (2)
(57
)
(353
)
(74
)
Tangible net income (f)
$
96,142
$
98,439
$
75,204
Return on tangible common equity (3) (f)/(b)
17.80
%
18.82
%
14.75
%
(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/20230419006032/en/
Heng W. Chen (626) 279-3652
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