LOS ANGELES--(BUSINESS WIRE)--April 25, 2022--Cathay General Bancorp (the “Company”, “we”, “us”, or “our”) (Nasdaq: CATY), the holding company for Cathay Bank, today announced its unaudited financial results for the quarter ended March 31,
2022. The Company reported net income of $75.0 million, or $0.99 per share, for the first quarter of 2022.
FINANCIAL PERFORMANCE
|
|
Three months ended |
| (unaudited) |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
| Net income |
|
$75.0 million |
|
$75.3 million |
|
$73.4 million |
| Basic earnings per common share |
|
$1.00
|
|
$0.98
|
|
$0.92
|
| Diluted earnings per common share |
|
$0.99
|
|
$0.98
|
|
$0.92
|
| Return on average assets |
|
1.46%
|
|
1.48%
|
|
1.57%
|
| Return on average total stockholders' equity |
|
12.29%
|
|
12.12%
|
|
12.18%
|
| Efficiency ratio |
|
40.52%
|
|
41.77%
|
|
47.03%
|
FIRST QUARTER HIGHLIGHTS
- On February 7, 2022, the Company completed its purchase of HSBC’s West Coast mass retail market consumer banking business and retail business banking business.
- Total loans increased $1.1 billion in the first quarter to $17.4 billion, including $646.1 million acquired as part of the purchase of HSBC’s West Coast mass retail market consumer banking business.
“For the first quarter of 2022, total loans, excluding HSBC loans and PPP loans, increased by $470.7 million, or 11.6% annualized. The Company completed its September 2021 stock buyback program by repurchasing 704,927 shares at an average
cost of $46.67 for a total of $32.9 million during the first quarter,” commented Chang M. Liu, President and Chief Executive Officer of the Company.
FIRST QUARTER INCOME STATEMENT REVIEW
Net income for the quarter ended March 31, 2022, was $75.0 million, an increase of $1.6 million, or 2.2%, compared to net income of $73.4 million for the same quarter a year ago. Diluted earnings per share for the quarter ended March 31,
2022, was $0.99 per share compared to $0.92 per share for the same quarter a year ago.
Return on average stockholders’ equity was 12.29% and return on average assets was 1.46% for the quarter ended March 31, 2022, compared to a return on average stockholders’ equity of 12.18% and a return on average assets of 1.57% for the same
quarter a year ago.
Net interest income before provision for credit losses
Net interest income before provision for credit losses increased $17.4 million, or 12.3%, to $159.2 million during the first quarter of 2022, compared to $141.8 million during the same quarter a year ago. The increase was due primarily to a
decrease in interest expense from deposits and an increase in interest income from loans and securities.
The net interest margin was 3.26% for the first quarter of 2022 compared to 3.20% for the first quarter of 2021 and 3.23% for the fourth quarter of 2021.
For the first quarter of 2022, the yield on average interest-earning assets was 3.53%, the cost of funds on average interest-bearing liabilities was 0.38%, and the cost of interest-bearing deposits was 0.33%. In comparison, for the first
quarter of 2021, the yield on average interest-earning assets was 3.68%, the cost of funds on average interest-bearing liabilities was 0.67%, and the cost of interest-bearing deposits was 0.63%. The decrease in the yield on average
interest-earning assets resulted mainly from lower lending 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 3.15%
for the quarter ended March 31, 2022, compared to 3.01% for the same quarter a year ago.
(Reversal)/provision for credit losses
The Company recorded a provision for credit losses of $8.6 million in the first quarter of 2022 compared with $3.5 million in the fourth quarter of 2021. As of March 31, 2022, the allowance for loan losses increased $9.6 million to $145.8
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 first quarter of 2022 consisted of a $9.3 million provision for loan losses,
and $290 thousand in net recoveries.
|
|
Three months ended |
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
|
(In thousands) (Unaudited) |
| Charge-offs: |
|
|
|
|
|
|
| Commercial loans |
|
$
|
221
|
|
$
|
552
|
|
$
|
9,138
|
| Total charge-offs |
|
|
221
|
|
|
552
|
|
|
9,138
|
| Recoveries: |
|
|
|
|
|
|
| Commercial loans |
|
|
359
|
|
|
160
|
|
|
1,269
|
| Construction loans |
|
|
6
|
|
|
—
|
|
|
—
|
| Real estate loans (1) |
|
|
146
|
|
|
104
|
|
|
110
|
| Total recoveries |
|
|
511
|
|
|
264
|
|
|
1,379
|
| Net charge-offs/(recoveries) |
|
$
|
(290)
|
|
$
|
288
|
|
$
|
7,759
|
|
|
|
|
|
|
|
| (1) Real estate loans include commercial mortgage loans, residential mortgage loans, and equity lines. |
Non-interest income
Non-interest income, which includes revenues from depository service fees, letters of credit commissions, securities gains (losses), wire transfer fees, and other sources of fee income, was $20.2 million for the first quarter of 2022, an
increase of $10.2 million, or 102.0%, compared to $10.0 million for the first quarter of 2021. The increase was primarily due to an $8.7 million increase in net gains from equity securities and a $1.3 million increase in swap dealer fees, when
compared to the same quarter a year ago.
Non-interest expense
Non-interest expense increased $1.3 million, or 1.8%, to $72.7 million in the first quarter of 2022 compared to $71.4 million in the same quarter a year ago. The increase in non-interest expense in the first quarter of 2022 was primarily due
to an increase of $2.8 million in salaries and employee benefits, an increase of $3.3 million in acquisition, integration and restructuring costs, and an increase of $2.0 million in professional expenses, offset, in part, by a decrease of $3.3
million in amortization expense of investments in low-income housing and alternative energy partnerships, and a decrease of $1.9 million in contributions to the Cathay Bank foundation when compared to the same quarter a year ago. The efficiency
ratio was 40.5% in the first quarter of 2022 compared to 47.0% for the same quarter a year ago.
Income taxes
The effective tax rate for the first quarter of 2022 was 23.5% compared to 21.9% for the first quarter of 2021. The effective tax rate includes the impact of alternative energy investments and low-income housing tax credits.
ACQUISITION OF HSBC WEST COAST RETAIL BANKING BUSINESS
The Company’s subsidiary bank, Cathay Bank completed the purchase of HSBC Bank USA, National Association’s West Coast mass retail market consumer banking business and retail business banking business on February 7, 2022. As a result of the
acquisition, Cathay Bank added 10 retail branches in California and additional loans with a principal balance of $646.1 million and deposits with a balance of $575.3 million associated with HSBC’s West Coast mass retail market consumer and
retail business banking business.
BALANCE SHEET REVIEW
Gross loans were $17.4 billion as of March 31, 2022, an increase of $1.1 billion, or 6.7%, from $16.3 billion as of December 31, 2021. The increase was primarily due to an increase of $142.8, million, or 4.8%, in commercial loans, an increase
of $652.8 million, or 15.6%, in residential mortgage loans, an increase of $258.5 million, or 3.2%, and an increase of $20.7 million, or 3.4%, in real estate construction loans, offset, in part, by a decrease of $20.6 million, or 4.9%, in home
equity loans. For the first quarter of 2022, total loans, excluding PPP loans and HSBC purchased loans, increased by $470.7 million or 11.6% annualized.
The loan balances and composition as of March 31, 2022, compared to December 31, 2021 and March 31, 2021, are presented below:
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
|
(In thousands) (Unaudited) |
| Commercial loans |
|
$
|
3,073,476
|
|
$
|
2,891,914
|
|
$
|
2,556,247
|
| Paycheck protection program loans |
|
|
51,675
|
|
|
90,485
|
|
|
334,446
|
| Residential mortgage loans |
|
|
4,834,782
|
|
|
4,182,006
|
|
|
4,102,203
|
| Commercial mortgage loans |
|
|
8,401,742
|
|
|
8,143,272
|
|
|
7,549,522
|
| Equity lines |
|
|
398,851
|
|
|
419,487
|
|
|
428,318
|
| Real estate construction loans |
|
|
631,740
|
|
|
611,031
|
|
|
677,816
|
| Installment and other loans |
|
|
6,091
|
|
|
4,284
|
|
|
3,296
|
| Gross loans |
|
$
|
17,398,357
|
|
$
|
16,342,479
|
|
$
|
15,651,848
|
|
|
|
|
|
|
|
| Allowance for loan losses |
|
|
(145,786)
|
|
|
(136,157)
|
|
|
(145,110)
|
| Unamortized deferred loan fees |
|
|
(4,679)
|
|
|
(4,321)
|
|
|
(6,872)
|
| Total loans, net |
|
$
|
17,247,892
|
|
$
|
16,202,001
|
|
$
|
15,499,866
|
Total deposits were $18.1 billion as of March 31, 2022 and remained unchanged from $18.1 billion as of December 31, 2021. Total deposits included $486.3 million of deposits acquired from HSBC. Total time deposits decreased during the quarter
resulting primarily from the runoff of wholesale time deposits. During the first quarter of 2022, our deposits, excluding CD’s and HSBC deposits, increased by $98.3 million, or 3.1% annualized.
The deposit balances and composition as of March 31, 2022, compared to December 31, 2021 and March 31, 2021, are presented below:
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
|
(In thousands) (Unaudited) |
| Non-interest-bearing demand deposits |
|
$
|
4,398,779
|
|
$
|
4,492,054
|
|
$
|
3,495,775
|
| NOW deposits |
|
|
2,435,725
|
|
|
2,522,442
|
|
|
1,915,822
|
| Money market deposits |
|
|
5,113,385
|
|
|
4,611,579
|
|
|
3,808,794
|
| Savings deposits |
|
|
1,156,727
|
|
|
915,515
|
|
|
911,210
|
| Time deposits |
|
|
4,955,645
|
|
|
5,517,252
|
|
|
6,222,032
|
| Total deposits |
|
$
|
18,060,261
|
|
$
|
18,058,842
|
|
$
|
16,353,633
|
ASSET QUALITY REVIEW
As of March 31, 2022, total non-accrual loans were $86.3 million, an increase of $20.5 million, or 31.1%, from $65.8 million as of December 31, 2021, and a decrease of $8.1 million, or 8.6%, from $94.4 million as of March 31, 2021. The
increase from the fourth quarter was due primarily to a $14.0 million commercial loan placed on nonaccrual status during the first quarter of 2022.
The allowance for loan losses was $145.8 million and the allowance for off-balance sheet unfunded credit commitments was $6.4 million as of March 31, 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 168.3% of non-performing loans as of March 31, 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 March 31, 2022, compared to December 31, 2021 and March 31, 2021, are presented below:
| (Dollars in thousands) (Unaudited) |
|
March 31, 2022 |
|
December 31, 2021 |
|
%
Change |
|
March 31, 2021 |
|
%
Change |
| Non-performing assets |
|
|
|
|
|
|
|
|
|
|
| Accruing loans past due 90 days or more |
|
$
|
300
|
|
$
|
1,439
|
|
(79)
|
|
$
|
2,138
|
|
(86)
|
| Non-accrual loans: |
|
|
|
|
|
|
|
|
|
|
| Construction loans |
|
|
—
|
|
|
—
|
|
—
|
|
|
4,189
|
|
(100)
|
| Commercial mortgage loans |
|
|
38,095
|
|
|
38,173
|
|
(0)
|
|
|
43,361
|
|
(12)
|
| Commercial loans |
|
|
36,282
|
|
|
16,558
|
|
119
|
|
|
38,351
|
|
(5)
|
| Residential mortgage loans |
|
|
11,956
|
|
|
11,115
|
|
8
|
|
|
8,545
|
|
40
|
| Total non-accrual loans: |
|
$
|
86,333
|
|
$
|
65,846
|
|
31
|
|
$
|
94,446
|
|
(9)
|
| Total non-performing loans |
|
|
86,633
|
|
|
67,285
|
|
29
|
|
|
96,584
|
|
(10)
|
| Other real estate owned |
|
|
4,067
|
|
|
4,368
|
|
(7)
|
|
|
4,918
|
|
(17)
|
| Total non-performing assets |
|
$
|
90,700
|
|
$
|
71,653
|
|
27
|
|
$
|
101,502
|
|
(11)
|
| Accruing troubled debt restructurings (TDRs) |
|
$
|
12,994
|
|
$
|
12,837
|
|
1
|
|
$
|
27,864
|
|
(53)
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for loan losses |
|
$
|
145,786
|
|
$
|
136,157
|
|
7
|
|
$
|
145,110
|
|
0
|
| Total gross loans outstanding, at period-end |
|
$
|
17,398,357
|
|
$
|
16,342,479
|
|
6
|
|
$
|
15,651,848
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for loan losses to non-performing loans, at period-end |
|
|
168.28%
|
|
|
202.36%
|
|
|
|
|
150.24%
|
|
|
| Allowance for loan losses to gross loans, at period-end |
|
|
0.84%
|
|
|
0.83%
|
|
|
|
|
0.93%
|
|
|
The ratio of non-performing assets to total assets was 0.4% as of March 31, 2022, compared to 0.3% as of December 31, 2021. Total non-performing assets increased $19.0 million, or 26.5%, to $90.7 million as of March 31, 2022, compared to
$71.7 million as of December 31, 2021, primarily due to an increase of $20.5 million, or 31.1%, in nonaccrual loans, offset in part, by a decrease of $1.1 million, or 79.2%, in accruing loans past due 90 days or more, and a decrease of $301
thousand in other real estate owned.
CAPITAL ADEQUACY REVIEW
As of March 31, 2022, the Company’s Tier 1 risk-based capital ratio of 12.37%, total risk-based capital ratio of 13.97%, and Tier 1 leverage capital ratio of 10.11%, 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 first quarter 2022 financial results this afternoon, Monday, April 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 the call, please dial 1-855-761-3186 and enter Conference ID 5080167. A presentation to accompany the earnings call will be available at www.cathaygeneralbancorp.com. 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 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 |
|
| (Dollars in thousands, except per share data) |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
|
|
|
|
|
|
|
|
| FINANCIAL PERFORMANCE |
|
|
|
|
|
|
|
| Net interest income before (reversal)/provision for credit losses |
|
$
|
159,191
|
|
$
|
155,452
|
|
$
|
141,818
|
|
| (Reversal)/provision for credit losses |
|
|
8,643
|
|
|
3,500
|
|
|
(13,558)
|
|
| Net interest income after (reversal)/provision for credit losses |
|
|
150,548
|
|
|
151,952
|
|
|
155,376
|
|
| Non-interest income |
|
|
20,232
|
|
|
19,804
|
|
|
10,000
|
|
| Non-interest expense |
|
|
72,697
|
|
|
73,197
|
|
|
71,403
|
|
| Income before income tax expense |
|
|
98,083
|
|
|
98,559
|
|
|
93,973
|
|
| Income tax expense |
|
|
23,055
|
|
|
23,234
|
|
|
20,589
|
|
| Net income |
|
$
|
75,028
|
|
$
|
75,325
|
|
$
|
73,384
|
|
|
|
|
|
|
|
|
|
| Net income per common share |
|
|
|
|
|
|
|
| Basic |
|
$
|
1.00
|
|
$
|
0.98
|
|
$
|
0.92
|
|
| Diluted |
|
$
|
0.99
|
|
$
|
0.98
|
|
$
|
0.92
|
|
| Cash dividends paid per common share |
|
$
|
0.34
|
|
$
|
0.34
|
|
$
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SELECTED RATIOS |
|
|
|
|
|
|
|
| Return on average assets |
|
|
1.46%
|
|
|
1.48%
|
|
|
1.57%
|
|
| Return on average total stockholders’ equity |
|
|
12.29%
|
|
|
12.12%
|
|
|
12.18%
|
|
| Efficiency ratio |
|
|
40.52%
|
|
|
41.77%
|
|
|
47.03%
|
|
| Dividend payout ratio |
|
|
34.01%
|
|
|
34.50%
|
|
|
33.59%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| YIELD ANALYSIS (Fully taxable equivalent) |
|
|
|
|
|
|
|
| Total interest-earning assets |
|
|
3.53%
|
|
|
3.52%
|
|
|
3.68%
|
|
| Total interest-bearing liabilities |
|
|
0.38%
|
|
|
0.41%
|
|
|
0.67%
|
|
| Net interest spread |
|
|
3.15%
|
|
|
3.11%
|
|
|
3.01%
|
|
| Net interest margin |
|
|
3.26%
|
|
|
3.23%
|
|
|
3.20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CAPITAL RATIOS |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
| Tier 1 risk-based capital ratio |
|
|
12.37%
|
|
|
12.80%
|
|
|
14.00%
|
|
| Total risk-based capital ratio |
|
|
13.97%
|
|
|
14.41%
|
|
|
15.82%
|
|
| Tier 1 leverage capital ratio |
|
|
10.11%
|
|
|
10.40%
|
|
|
11.11%
|
|
|
|
|
|
|
|
|
|
|
CATHAY GENERAL BANCORP
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
| (In thousands, except share and per share data) |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
| Cash and due from banks |
|
$
|
138,979
|
|
$
|
134,141
|
|
$
|
141,885
|
| Short-term investments and interest bearing deposits |
|
|
1,119,105
|
|
|
2,315,563
|
|
|
1,612,411
|
| Securities available-for-sale (amortized cost of $1,284,863 at March 31, 2022, $1,126,867 at December 31, 2021 and $898,463 at March 31, 2021) |
|
|
1,219,541
|
|
|
1,127,309
|
|
|
908,844
|
| Loans |
|
|
17,398,357
|
|
|
16,342,479
|
|
|
15,651,848
|
| Less: Allowance for loan losses |
|
|
(145,786)
|
|
|
(136,157)
|
|
|
(145,110)
|
| Unamortized deferred loan fees, net |
|
|
(4,679)
|
|
|
(4,321)
|
|
|
(6,872)
|
| Loans, net |
|
|
17,247,892
|
|
|
16,202,001
|
|
|
15,499,866
|
| Equity securities |
|
|
27,740
|
|
|
22,319
|
|
|
20,993
|
| Federal Home Loan Bank stock |
|
|
17,250
|
|
|
17,250
|
|
|
17,250
|
| Other real estate owned, net |
|
|
4,067
|
|
|
4,368
|
|
|
4,918
|
| Affordable housing investments and alternative energy partnerships, net |
|
|
289,430
|
|
|
299,211
|
|
|
296,229
|
| Premises and equipment, net |
|
|
98,795
|
|
|
99,402
|
|
|
101,864
|
| Customers’ liability on acceptances |
|
|
6,753
|
|
|
8,112
|
|
|
4,125
|
| Accrued interest receivable |
|
|
60,056
|
|
|
56,994
|
|
|
58,216
|
| Goodwill |
|
|
375,706
|
|
|
372,189
|
|
|
372,189
|
| Other intangible assets, net |
|
|
7,512
|
|
|
4,627
|
|
|
5,249
|
| Right-of-use assets- operating leases |
|
|
32,045
|
|
|
27,834
|
|
|
32,927
|
| Other assets |
|
|
221,699
|
|
|
195,403
|
|
|
156,360
|
| Total assets |
|
$
|
20,866,570
|
|
$
|
20,886,723
|
|
$
|
19,233,326
|
|
|
|
|
|
|
|
| Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
| Deposits |
|
|
|
|
|
|
| Non-interest-bearing demand deposits |
|
$
|
4,398,779
|
|
$
|
4,492,054
|
|
$
|
3,495,775
|
| Interest-bearing deposits: |
|
|
|
|
|
|
| NOW deposits |
|
|
2,435,725
|
|
|
2,522,442
|
|
|
1,915,822
|
| Money market deposits |
|
|
5,113,385
|
|
|
4,611,579
|
|
|
3,808,794
|
| Savings deposits |
|
|
1,156,727
|
|
|
915,515
|
|
|
911,210
|
| Time deposits |
|
|
4,955,645
|
|
|
5,517,252
|
|
|
6,222,032
|
| Total deposits |
|
|
18,060,261
|
|
|
18,058,842
|
|
|
16,353,633
|
|
|
|
|
|
|
|
| Advances from the Federal Home Loan Bank |
|
|
20,000
|
|
|
20,000
|
|
|
75,000
|
| Other borrowings for affordable housing investments |
|
|
23,108
|
|
|
23,145
|
|
|
23,333
|
| Long-term debt |
|
|
119,136
|
|
|
119,136
|
|
|
119,136
|
| Acceptances outstanding |
|
|
6,753
|
|
|
8,112
|
|
|
4,125
|
| Lease liabilities - operating leases |
|
|
35,403
|
|
|
30,694
|
|
|
35,803
|
| Other liabilities |
|
|
179,679
|
|
|
180,544
|
|
|
161,349
|
| Total liabilities |
|
|
18,444,340
|
|
|
18,440,473
|
|
|
16,772,379
|
| Stockholders' equity |
|
|
2,422,230
|
|
|
2,446,250
|
|
|
2,460,947
|
| Total liabilities and equity |
|
$
|
20,866,570
|
|
$
|
20,886,723
|
|
$
|
19,233,326
|
|
|
|
|
|
|
|
| Book value per common share |
|
$
|
32.26
|
|
$
|
32.29
|
|
$
|
30.92
|
| Number of common shares outstanding |
|
|
75,078,258
|
|
|
75,750,862
|
|
|
79,595,025
|
|
CATHAY GENERAL BANCORP
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
|
|
|
|
Three months ended |
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
|
(In thousands, except share and per share data) |
| INTEREST AND DIVIDEND INCOME |
|
|
|
|
|
|
| Loan receivable, including loan fees |
|
$
|
166,094
|
|
$
|
164,062
|
|
$
|
159,721
|
| Investment securities |
|
|
4,828
|
|
|
4,188
|
|
|
3,067
|
| Federal Home Loan Bank stock |
|
|
261
|
|
|
261
|
|
|
217
|
| Deposits with banks |
|
|
763
|
|
|
678
|
|
|
315
|
| Total interest and dividend income |
|
|
171,946
|
|
|
169,189
|
|
|
163,320
|
|
|
|
|
|
|
|
| INTEREST EXPENSE |
|
|
|
|
|
|
| Time deposits |
|
|
6,060
|
|
|
7,179
|
|
|
14,009
|
| Other deposits |
|
|
5,128
|
|
|
4,957
|
|
|
5,594
|
| Advances from Federal Home Loan Bank |
|
|
143
|
|
|
146
|
|
|
475
|
| Long-term debt |
|
|
1,424
|
|
|
1,455
|
|
|
1,424
|
| Total interest expense |
|
|
12,755
|
|
|
13,737
|
|
|
21,502
|
|
|
|
|
|
|
|
| Net interest income before provision for credit losses |
|
|
159,191
|
|
|
155,452
|
|
|
141,818
|
| Provision/(reversal) for credit losses |
|
|
8,643
|
|
|
3,500
|
|
|
(13,558)
|
| Net interest income after provision/(reversal) for credit losses |
|
|
150,548
|
|
|
151,952
|
|
|
155,376
|
|
|
|
|
|
|
|
| NON-INTEREST INCOME |
|
|
|
|
|
|
| Net gains/(losses) from equity securities |
|
|
5,974
|
|
|
2,202
|
|
|
(2,752)
|
| Securities gains, net |
|
|
—
|
|
|
—
|
|
|
853
|
| Letters of credit commissions |
|
|
1,556
|
|
|
1,867
|
|
|
1,690
|
| Depository service fees |
|
|
1,671
|
|
|
1,477
|
|
|
1,363
|
| Wealth management fees |
|
|
4,354
|
|
|
3,982
|
|
|
3,557
|
| Other operating income |
|
|
6,677
|
|
|
10,276
|
|
|
5,289
|
| Total non-interest income |
|
|
20,232
|
|
|
19,804
|
|
|
10,000
|
|
|
|
|
|
|
|
| NON-INTEREST EXPENSE |
|
|
|
|
|
|
| Salaries and employee benefits |
|
|
35,475
|
|
|
33,878
|
|
|
32,722
|
| Occupancy expense |
|
|
5,613
|
|
|
5,176
|
|
|
5,046
|
| Computer and equipment expense |
|
|
2,956
|
|
|
3,456
|
|
|
3,271
|
| Professional services expense |
|
|
6,697
|
|
|
6,968
|
|
|
4,710
|
| Data processing service expense |
|
|
2,909
|
|
|
3,185
|
|
|
3,655
|
| FDIC and State assessments |
|
|
1,802
|
|
|
1,937
|
|
|
1,925
|
| Marketing expense |
|
|
947
|
|
|
1,643
|
|
|
2,882
|
| Other real estate owned expense |
|
|
71
|
|
|
146
|
|
|
94
|
| Amortization of investments in low income housing and alternative energy partnerships |
|
|
8,287
|
|
|
10,784
|
|
|
11,570
|
| Amortization of core deposit intangibles |
|
|
224
|
|
|
172
|
|
|
172
|
| Acquisition, integration and restructuring costs |
|
|
3,936
|
|
|
949
|
|
|
732
|
| Other operating expense |
|
|
3,780
|
|
|
4,903
|
|
|
4,624
|
| Total non-interest expense |
|
|
72,697
|
|
|
73,197
|
|
|
71,403
|
|
|
|
|
|
|
|
| Income before income tax expense |
|
|
98,083
|
|
|
98,559
|
|
|
93,973
|
| Income tax expense |
|
|
23,055
|
|
|
23,234
|
|
|
20,589
|
| Net income |
|
$
|
75,028
|
|
$
|
75,325
|
|
$
|
73,384
|
| Net income per common share: |
|
|
|
|
|
|
| Basic |
|
$
|
1.00
|
|
$
|
0.98
|
|
$
|
0.92
|
| Diluted |
|
$
|
0.99
|
|
$
|
0.98
|
|
$
|
0.92
|
|
|
|
|
|
|
|
| Cash dividends paid per common share |
|
$
|
0.34
|
|
$
|
0.34
|
|
$
|
0.31
|
| Basic average common shares outstanding |
|
|
75,331,976
|
|
|
76,566,481
|
|
|
79,530,777
|
| Diluted average common shares outstanding |
|
|
75,719,375
|
|
|
76,914,817
|
|
|
79,832,305
|
|
CATHAY GENERAL BANCORP
|
|
AVERAGE BALANCES – SELECTED CONSOLIDATED FINANCIAL INFORMATION
|
|
(Unaudited)
|
|
|
|
|
|
Three months ended |
| (In thousands) |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
| Interest-earning assets |
|
Average
Balance |
|
Average
Yield/Rate (1) |
|
Average
Balance |
|
Average
Yield/Rate (1) |
|
Average
Balance |
|
Average
Yield/Rate (1) |
| Loans (1) |
|
$
|
16,939,787
|
|
3.98%
|
|
$
|
16,130,896
|
|
4.04%
|
|
$
|
15,691,976
|
|
4.13%
|
| Taxable investment securities |
|
|
1,174,245
|
|
1.67%
|
|
|
1,152,596
|
|
1.44%
|
|
|
995,704
|
|
1.25%
|
| FHLB stock |
|
|
17,250
|
|
6.13%
|
|
|
17,250
|
|
6.00%
|
|
|
17,250
|
|
5.10%
|
| Deposits with banks |
|
|
1,650,702
|
|
0.19%
|
|
|
1,779,275
|
|
0.15%
|
|
|
1,283,375
|
|
0.10%
|
| Total interest-earning assets |
|
$
|
19,781,984
|
|
3.53%
|
|
$
|
19,080,017
|
|
3.52%
|
|
$
|
17,988,305
|
|
3.68%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing demand deposits |
|
$
|
2,400,010
|
|
0.08%
|
|
$
|
2,217,341
|
|
0.08%
|
|
$
|
1,890,390
|
|
0.14%
|
| Money market deposits |
|
|
4,815,578
|
|
0.38%
|
|
|
4,393,816
|
|
0.39%
|
|
|
3,552,217
|
|
0.54%
|
| Savings deposits |
|
|
1,076,690
|
|
0.07%
|
|
|
932,678
|
|
0.08%
|
|
|
845,543
|
|
0.10%
|
| Time deposits |
|
|
5,289,313
|
|
0.46%
|
|
|
5,604,073
|
|
0.51%
|
|
|
6,404,755
|
|
0.89%
|
| Total interest-bearing deposits |
|
$
|
13,581,591
|
|
0.33%
|
|
$
|
13,147,908
|
|
0.37%
|
|
$
|
12,692,905
|
|
0.63%
|
| Other borrowed funds |
|
|
43,143
|
|
1.34%
|
|
|
43,186
|
|
1.34%
|
|
|
123,424
|
|
1.56%
|
| Long-term debt |
|
|
119,136
|
|
4.85%
|
|
|
119,136
|
|
4.85%
|
|
|
119,136
|
|
4.85%
|
| Total interest-bearing liabilities |
|
|
13,743,870
|
|
0.38%
|
|
|
13,310,230
|
|
0.41%
|
|
|
12,935,465
|
|
0.67%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest-bearing demand deposits |
|
|
4,360,392
|
|
|
|
|
4,162,906
|
|
|
|
|
3,406,460
|
|
|
| Total deposits and other borrowed funds |
|
$
|
18,104,262
|
|
|
|
$
|
17,473,136
|
|
|
|
$
|
16,341,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total average assets |
|
$
|
20,864,531
|
|
|
|
$
|
20,176,429
|
|
|
|
$
|
19,011,161
|
|
|
| Total average equity |
|
$
|
2,445,412
|
|
|
|
$
|
2,466,363
|
|
|
|
$
|
2,443,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Yields and interest earned include net loan fees. Non-accrual loans are included in the average balance. |
