CATY Cathay General Bancorp

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Delaware	001-31830	95-4274680
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock	CATY	Nasdaq Global Select Market

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Item 2.02

Results of Operations and Financial Condition.

Item 7.01.

Regulation FD Disclosure

Item 9.01

Financial Statements and Exhibits.

(d)

Exhibits

99.1

Press Release of Cathay General Bancorp, dated January 22, 2025

99.2

Presentation Materials, dated January 22, 2025

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

	CATHAY GENERAL BANCORP
	By:	/s/ Heng W. Chen
		Heng W. Chen
		Executive Vice President and
		Chief Financial Officer

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

 

For:	Cathay General Bancorp		Contact:	Heng W. Chen
	777 N. Broadway			(626) 279-3652
	Los Angeles, CA 90012

 

 

Cathay General Bancorp Announces Fourth Quarter and Full Year 2024 Results

 

Los Angeles, Calif., January 22, 2025: 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 and year ended December 31, 2024. The Company reported net income of $286.0 million, or $3.95 per diluted share, for the year ended December 31, 2024 and net income of $80.2 million, or $1.12 per diluted share, for the fourth quarter of 2024.

 

FINANCIAL PERFORMANCE

 

		Three months ended												Year ended December 31,
(unaudited)		December 31, 2024				September 30, 2024				December 31, 2023				2024				2023
Net income (millions)		$	80.2			$	67.5			$	82.5			$	286.0			$	354.1
Basic earnings per common share		$	1.13			$	0.94			$	1.14			$	3.97			$	4.88
Diluted earnings per common share		$	1.12			$	0.94			$	1.13			$	3.95			$	4.86
Return on average assets			1.37	%			1.15	%			1.40	%			1.22	%			1.56	%
Return on average total stockholders' equity			11.18	%			9.50	%			12.21	%			10.18	%			13.56	%
Efficiency ratio			45.70	%			51.11	%			53.84	%			51.35	%			46.97	%

 

HIGHLIGHTS

 

●	Net interest margin increased to 3.07% during the fourth quarter from 3.04% in the third quarter.

●	Total loans, excluding loans held for sale, decreased to $19.38 billion, or 0.9%, from $19.55 billion in 2023.

●	Total deposits increased $360.8 million, or 1.9%, to $19.69 billion in 2024.

 

“We are pleased by the increase in the net interest margin compared to the third quarter of 2024. During the quarter, we repurchased 506,651 shares at an average cost of $47.10 per share for a total of $23.9 million”, commented Chang M. Liu, President and Chief Executive Officer of the Company.

 

INCOME STATEMENT REVIEW

FOURTH QUARTER 2024 COMPARED TO THE THIRD QUARTER 2024

 

Net income for the quarter ended December 31, 2024, was $80.2 million, an increase of $12.7 million, or 18.8%, compared to net income of $67.5 million for the third quarter of 2024. Diluted earnings per share for the fourth quarter of 2024 was $1.12 per share compared to $0.94 per share for the third quarter of 2024.

 

Return on average stockholders’ equity was 11.18% and return on average assets was 1.37% for the quarter ended December 31, 2024, compared to a return on average stockholders’ equity of 9.50% and a return on average assets of 1.15% in the third quarter of 2024.

 

 

Net interest income before provision for credit losses

 

Net interest income before provision for credit losses increased $1.8 million, or 1.1%, to $171.0 million during the fourth quarter of 2024, compared to $169.2 million in the third quarter of 2024. The increase was due primarily to a decrease in interest deposit expense, partially offset by a decrease in interest income from loans and securities.

 

The net interest margin was 3.07% for the fourth quarter of 2024 compared to 3.04% for the third quarter of 2024.

 

For the fourth quarter of 2024, the yield on average interest-earning assets was 5.92%, the cost of funds on average interest-bearing liabilities was 3.75%, and the cost of average interest-bearing deposits was 3.72%. In comparison, for the third quarter of 2024, the yield on average interest-earning assets was 6.10%, the cost of funds on average interest-bearing liabilities was 3.99%, and the cost of average interest-bearing deposits was 3.95%. The decrease in the yield on average interest-bearing liabilities resulted mainly from lower interest rates on deposits driven by the lower repricing of maturing time deposits in the fourth quarter. The decrease in the yield on average interest-earning assets resulted mainly from lower interest rates on loans due to the decreasing rate environment. The net interest spread, defined as the difference between the yield on average interest-earning assets and the cost of funds on average interest-bearing liabilities, was 2.17% for the fourth quarter of 2024, compared to 2.11% for the third quarter of 2024.

 

Provision for credit losses

 

The Company recorded a provision for credit losses of $14.5 million in the fourth quarter of 2024 compared to $14.5 million in the third quarter of 2024. As of December 31, 2024, the allowance for credit losses decreased by $1.9 million to $171.4 million, or 0.88% of gross loans, compared to $173.2 million, or 0.89% of gross loans as of September 30, 2024.

 

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

 

		Three months ended												Year ended December 31,
		December 31, 2024				September 30, 2024				December 31, 2023				2024				2023
		(In thousands) (Unaudited)
Charge-offs:
Commercial loans		$	14,064			$	2,666			$	1,392			$	26,926			$	13,909
Construction loans			—				—				4,221				—				4,221
Real estate loans (1)			2,472				1,805				—				4,531				5,341
Installment and other loans			7				7				—				15				15
Total charge-offs			16,543				4,478				5,613				31,472				23,486
Recoveries:
Commercial loans			75				88				1,426				1,102				2,990
Construction loans			—				—				—				—				—
Real estate loans (1)			133				186				55				694				2,918
Installment and other loans			2				1				—				2				—
Total recoveries			210				275				1,481				1,798				5,908
Net charge-offs/(recoveries)		$	16,333			$	4,203			$	4,132			$	29,674			$	17,578

 

(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 $15.5 million for the fourth quarter of 2024, a decrease of $4.9 million, or 23.9%, compared to $20.4 million for the third quarter of 2024. The decrease was primarily due to a decrease of $5.6 million in gain on equity securities, when compared to the third quarter of 2024.

 

Non-interest expense

 

Non-interest expense decreased $11.7 million, or 12.0%, to $85.2 million in the fourth quarter of 2024 compared to $96.9 million in the third quarter of 2024. The decrease in non-interest expense in the fourth quarter of 2024 was primarily due to a decrease of $13.3 million, in amortization expense of investments in low-income housing and alternative energy partnerships, a decrease of $2.1 million in FDIC and State assessments offset, in part, by an increase $1.7 million in professional services expense and an increase of $1.7 million in salaries and employee benefits, when compared to the third quarter of 2024. The efficiency ratio, defined as non-interest expense divided by the sum of net interest income before provision for loan losses plus non-interest income, was 45.70% in the fourth quarter of 2024 compared to 51.11% for the third quarter of 2024.

 

Income taxes

 

The effective tax rate for the fourth quarter of 2024 was 7.57% compared to 13.61% for the third quarter of 2024. The effective tax rate includes the impact of alternative energy investments and low-income housing tax credits.

 

BALANCE SHEET REVIEW

 

Gross loans were $19.38 billion as of December 31, 2024, a decrease of $172.2 million, or 0.9%, from $19.55 billion as of December 31, 2023. The decrease was primarily due to decreases of $207.0 million, or 6.3%, in commercial loans, $149.7 million, or 2.6%, in residential mortgage loans, $103.0 million, or 24.4%, in construction loans and $15.9 million, or 6.5%, in home equity loans offset by an increase of $304.3 million, or 3.1%, in commercial real estate loans. For the fourth quarter of 2024, gross loans increased by $2.4 million, or 0.05% annualized.

 

The loan balances and composition as of December 31, 2024, compared to September 30, 2024, and December 31, 2023, are presented below:

 

		December 31, 2024				September 30, 2024				December 31, 2023
		(In thousands) (Unaudited)
Commercial loans		$	3,098,004			$	3,106,994			$	3,305,048
Construction loans			319,649				307,057				422,647
Commercial real estate loans			10,033,830				9,975,272				9,729,581
Residential mortgage loans			5,689,097				5,750,546				5,838,747
Equity lines			229,995				226,838				245,919
Installment and other loans			5,380				6,886				6,198
Gross loans		$	19,375,955			$	19,373,593			$	19,548,140
Allowance for loan losses			(161,765	)			(163,733	)			(154,562	)
Unamortized deferred loan fees			(10,541	)			(10,505	)			(10,720	)
Total loans held for investment, net		$	19,203,649			$	19,199,355			$	19,382,858
Loans held for sale		$	—			$	5,190			$	—

 

 

Total deposits were $19.69 billion as of December 31, 2024, an increase of $360.8 million, or 1.9%, from $19.33 billion as of December 31, 2023.

 

 

The deposit balances and composition as of December 31, 2024, compared to September 30, 2024, and December 31, 2023, are presented below:

 

		December 31, 2024				September 30, 2024				December 31, 2023
		(In thousands) (Unaudited)
Non-interest-bearing demand deposits		$	3,284,342			$	3,253,823			$	3,529,018
NOW deposits			2,205,695				2,093,861				2,370,685
Money market deposits			3,372,773				3,134,460				3,049,754
Savings deposits			1,252,788				1,215,974				1,039,203
Time deposits			9,570,601				10,245,823				9,336,787
Total deposits		$	19,686,199			$	19,943,941			$	19,325,447

 

ASSET QUALITY REVIEW

 

As of December 31, 2024, total non-accrual loans were $169.2 million, an increase of $102.5 million, or 153.7%, from $66.7 million as of December 31, 2023, and an increase of $6.4 million, or 3.9%, from $162.8 million as of September 30, 2024.

 

The allowance for loan losses was $161.8 million and the allowance for off-balance sheet unfunded credit commitments was $9.7 million as of December 31, 2024. The allowances represent the amount estimated by management to be appropriate to absorb expected credit losses inherent in the loan portfolio, including unfunded credit commitments. The allowance for loan losses represented 0.83% of period-end gross loans, and 93.39% of non-performing loans as of December 31, 2024. The comparable ratios were 0.79% of period-end gross loans, and 209.33% of non-performing loans as of December 31, 2023.

 

The changes in non-performing assets and loan modifications to borrowers experiencing financial difficulty as of December 31, 2024, compared to December 31, 2023, and September 30, 2024, are presented below:

 

(In thousands) (Unaudited)		December 31, 2024				December 31, 2023				% Change				September 30, 2024				% Change
Non-performing assets
Accruing loans past due 90 days or more		$	4,050			$	7,157				(43	)		$	6,931				(42	)
Non-accrual loans:
Construction loans			—				7,736				(100	)			—				—
Commercial real estate loans			83,128				32,030				160				87,577				(5	)
Commercial loans			59,767				14,404				315				52,074				15
Residential mortgage loans			26,266				12,511				110				23,183				13
Total non-accrual loans:		$	169,161			$	66,681				154			$	162,834				4
Total non-performing loans			173,211				73,838				135				169,765				2
Other real estate owned			23,071				19,441				19				18,277				26
Total non-performing assets		$	196,282			$	93,279				110			$	188,042				4
Allowance for loan losses		$	161,765			$	154,562				5			$	163,733				(1	)
Total gross loans outstanding, at period-end		$	19,375,955			$	19,548,140				(1	)		$	19,373,593				0
Allowance for loan losses to non-performing loans, at period-end			93.39	%			209.33	%							96.45	%
Allowance for loan losses to gross loans, at period-end			0.83	%			0.79	%							0.85	%

 

The ratio of non-performing assets to total assets was 0.85% as of December 31, 2024, compared to 0.40% as of December 31, 2023. Total non-performing assets increased $103.0 million, or 110.4%, to $196.3 million as of December 31, 2024, compared to $93.3 million as of December 31, 2023, primarily due to an increase of $102.5 million, or 153.7%, in non-accrual loans, and $3.6 million, or 18.7%, in other real estate owned, offset, by a decrease of $3.1 million, or 43.4%, in accruing loans past due 90 days or more.

 

 

CAPITAL ADEQUACY REVIEW

 

As of December 31, 2024, the Company’s Tier 1 risk-based capital ratio of 13.55%, total risk-based capital ratio of 15.09%, and Tier 1 leverage capital ratio of 10.97%, 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, 2023, the Company’s Tier 1 risk-based capital ratio was 12.84%, total risk-based capital ratio was 14.31%, and Tier 1 leverage capital ratio was 10.55%.

 

FULL YEAR REVIEW

 

Net income for the year ended December 31, 2024, was $286.0 million, a decrease of $68.1 million, or 19.2%, compared to net income of $354.1 million for the year ended December 31, 2023. Diluted earnings per share for the year ended December 31, 2024, was $3.95 compared to $4.86 per share for the year ended December 31, 2023. The net interest margin for the year ended December 31, 2024, was 3.04% compared to 3.45% for the year ended December 31, 2023.

 

Return on average stockholders’ equity was 10.18% and return on average assets was 1.22% for the year ended December 31, 2024, compared to a return on average stockholders’ equity of 13.56% and a return on average assets of 1.56% for the year ended December 31, 2023. The efficiency ratio for the year ended December 31, 2024, was 51.35% compared to 46.97% for the year ended December 31, 2023.

 

 

CONFERENCE CALL

 

Cathay General Bancorp will host a conference call to discuss its fourth quarter and year-end 2024 financial results this afternoon, Wednesday, January 22, 2025, 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 enter Conference ID 10195683. 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 representative offices in Beijing, Shanghai, and Taipei. To learn more about Cathay Bank, please visit www.cathaybank.com. Cathay General Bancorp’s website is at www.cathaygeneralbancorp.com. Information set forth on such websites is not incorporated into this press release.

 

FORWARD-LOOKING STATEMENTS

 

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

 

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

 

 

CATHAY GENERAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

 

 

		Three months ended												Year ended December 31,
(In thousands, except per share data)		December 31, 2024				September 30, 2024				December 31, 2023				2024				2023
Financial performance
Net interest income before provision for credit losses		$	171,012			$	169,155			$	182,138			$	674,055			$	741,746
Provision for credit losses			14,500				14,500				1,723				37,500				25,978
Net interest income after provision for credit losses			156,512				154,655				180,415				636,555				715,768
Non-interest income			15,473				20,365				23,101				55,664				68,292
Non-interest expense			85,219				96,867				110,498				374,677				380,478
Income before income tax expense			86,766				78,153				93,018				317,542				403,582
Income tax expense			6,565				10,639				10,492				31,563				49,458
Net income		$	80,201			$	67,514			$	82,526			$	285,979			$	354,124
Net income per common share:
Basic		$	1.13			$	0.94			$	1.14			$	3.97			$	4.88
Diluted		$	1.12			$	0.94			$	1.13			$	3.95			$	4.86
Cash dividends paid per common share		$	0.34			$	0.34			$	0.34			$	1.36			$	1.36
Selected ratios
Return on average assets			1.37	%			1.15	%			1.40	%			1.22	%			1.56	%
Return on average total stockholders’ equity			11.18	%			9.50	%			12.21	%			10.18	%			13.56	%
Efficiency ratio			45.70	%			51.11	%			53.84	%			51.35	%			46.97	%
Dividend payout ratio			29.95	%			36.04	%			29.92	%			34.26	%			27.85	%
Yield analysis (Fully taxable equivalent)
Total interest-earning assets			5.92	%			6.10	%			5.99	%			6.02	%			5.78	%
Total interest-bearing liabilities			3.75	%			3.99	%			3.59	%			3.90	%			3.11	%
Net interest spread			2.17	%			2.11	%			2.40	%			2.12	%			2.67	%
Net interest margin			3.07	%			3.04	%			3.27	%			3.04	%			3.45	%

 

Capital ratios		December 31, 2024				September 30, 2024				December 31, 2023
Tier 1 risk-based capital ratio			13.55	%			13.32	%			12.84	%
Total risk-based capital ratio			15.09	%			14.87	%			14.31	%
Tier 1 leverage capital ratio			10.97	%			10.82	%			10.55	%

 

 

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(In thousands, except share and per share data)		December 31, 2024				September 30, 2024				December 31, 2023
Assets
Cash and due from banks		$	157,167			$	182,542			$	173,988
Short-term investments and interest bearing deposits			882,353				1,156,223				654,813
Securities available-for-sale (amortized cost of $1,668,661 at December 31, 2024, $1,602,696 at September 30, 2024 and $1,726,080 at December 31, 2023)			1,547,128				1,508,356				1,604,570
Loans held for sale			—				5,190				—
Loans			19,375,955				19,373,593				19,548,140
Less: Allowance for loan losses			(161,765	)			(163,733	)			(154,562	)
Unamortized deferred loan fees, net			(10,541	)			(10,505	)			(10,720	)
Loans, net			19,203,649				19,199,355				19,382,858
Equity securities			34,429				35,741				40,406
Federal Home Loan Bank stock			17,250				17,250				17,746
Other real estate owned, net			23,071				18,277				19,441
Affordable housing investments and alternative energy partnerships, net			289,611				280,091				315,683
Premises and equipment, net			88,676				89,158				91,097
Customers’ liability on acceptances			14,061				12,043				3,264
Accrued interest receivable			97,779				95,351				97,673
Goodwill			375,696				375,696				375,696
Other intangible assets, net			3,335				3,590				4,461
Right-of-use assets- operating leases			28,645				30,543				32,076
Other assets			291,831				265,037				267,762
Total assets		$	23,054,681			$	23,274,443			$	23,081,534
Liabilities and Stockholders’ Equity
Deposits:
Non-interest-bearing demand deposits		$	3,284,342			$	3,253,823			$	3,529,018
Interest-bearing deposits:
NOW deposits			2,205,695				2,093,861				2,370,685
Money market deposits			3,372,773				3,134,460				3,049,754
Savings deposits			1,252,788				1,215,974				1,039,203
Time deposits			9,570,601				10,245,823				9,336,787
Total deposits			19,686,199				19,943,941				19,325,447
Advances from the Federal Home Loan Bank			60,000				60,000				540,000
Other borrowings for affordable housing investments			17,740				17,783				15,787
Long-term debt			119,136				119,136				119,136
Acceptances outstanding			14,061				12,043				3,264
Lease liabilities - operating leases			30,851				32,906				34,797
Other liabilities			280,990				258,321				306,528
Total liabilities			20,208,977				20,444,130				20,344,959
Stockholders' equity			2,845,704				2,830,313				2,736,575
Total liabilities and equity		$	23,054,681			$	23,274,443			$	23,081,534
Book value per common share		$	40.16			$	39.66			$	37.66
Number of common shares outstanding			70,863,324				71,355,869				72,668,927

 

 

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

		Three months ended												Year ended December 31,
		December 31, 2024				September 30, 2024				December 31, 2023				2024				2023
		(In thousands, except share and per share data)
Interest and Dividend Income
Loan receivable, including loan fees		$	300,991			$	310,311			$	302,477			$	1,217,166			$	1,130,242
Investment securities			13,587				15,125				14,885				59,307				51,717
Federal Home Loan Bank stock			379				375				392				1,684				1,349
Deposits with banks			15,025				13,680				15,509				56,818				58,914
Total interest and dividend income			329,982				339,491				333,263				1,334,975				1,242,222
Interest Expense
Time deposits			111,082				119,786				97,826				458,490				331,997
Other deposits			44,557				45,918				43,282				177,775				135,965
Advances from Federal Home Loan Bank			766				1,885				7,289				14,283				22,164
Long-term debt			2,194				2,351				1,759				8,129				6,480
Short-term borrowings			371				396				969				2,243				3,870
Total interest expense			158,970				170,336				151,125				660,920				500,476
Net interest income before provision for credit losses			171,012				169,155				182,138				674,055				741,746
Provision for credit losses			14,500				14,500				1,723				37,500				25,978
Net interest income after provision for credit losses			156,512				154,655				180,415				636,555				715,768
Non-Interest Income
Net (losses)/gains from equity securities			(1,312	)			4,253				8,950				(7,516	)			18,248
Debt securities losses, net			—				—				—				1,107				(3,000	)
Letters of credit commissions			2,063				2,081				1,744				7,749				6,716
Depository service fees			1,674				1,572				1,423				6,574				6,432
Wealth management fees			6,194				6,545				4,820				24,055				17,506
Other operating income			6,854				5,914				6,164				23,695				22,390
Total non-interest income			15,473				20,365				23,101				55,664				68,292
Non-Interest Expense
Salaries and employee benefits			42,526				40,859				40,101				167,376				154,149
Occupancy expense			5,724				5,938				5,387				23,281				22,270
Computer and equipment expense			4,923				4,753				4,579				20,135				17,478
Professional services expense			8,761				7,021				8,279				30,986				32,491
Data processing service expense			4,234				4,330				3,718				16,370				14,728
FDIC and State assessments			1,198				3,250				14,358				14,279				23,588
Marketing expense			1,518				1,614				1,110				6,520				5,887
Other real estate owned expense			368				596				195				2,699				761
Amortization of investments in low income housing and alternative energy partnerships			10,728				24,077				26,119				72,633				86,616
Amortization of core deposit intangibles			250				250				251				1,098				1,310
Acquisition, integration and restructuring costs			—				—				671				—				671
Other operating expense			4,989				4,179				5,730				19,300				20,529
Total non-interest expense			85,219				96,867				110,498				374,677				380,478
Income before income tax expense			86,766				78,153				93,018				317,542				403,582
Income tax expense			6,565				10,639				10,492				31,563				49,458
Net income		$	80,201			$	67,514			$	82,526			$	285,979			$	354,124
Net income per common share:
Basic		$	1.13			$	0.94			$	1.14			$	3.97			$	4.88
Diluted		$	1.12			$	0.94			$	1.13			$	3.95			$	4.86
Cash dividends paid per common share		$	0.34			$	0.34			$	0.34			$	1.36			$	1.36
Basic average common shares outstanding			71,168,983				71,786,624				72,652,779				72,068,850				72,573,025
Diluted average common shares outstanding			71,491,518				72,032,456				72,906,310				72,327,017				72,862,628

 

 

CATHAY GENERAL BANCORP

AVERAGE BALANCES – SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited)

 

		Three months ended
(In thousands)(Unaudited)		December 31, 2024								September 30, 2024								December 31, 2023
		Average Balance				Average Yield/Rate (1)				Average Balance				Average Yield/Rate (1)				Average Balance				Average Yield/Rate (1)
Interest-earning assets:
Loans (1)		$	19,345,616				6.19	%		$	19,455,521				6.35	%		$	19,330,187				6.21	%
Taxable investment securities			1,542,577				3.50	%			1,638,414				3.67	%			1,594,267				3.71	%
FHLB stock			17,250				8.75	%			17,250				8.65	%			19,599				7.94	%
Deposits with banks			1,265,496				4.72	%			1,035,534				5.26	%			1,130,806				5.44	%
Total interest-earning assets		$	22,170,939				5.92	%		$	22,146,719				6.10	%		$	22,074,859				5.99	%
Interest-bearing liabilities:
Interest-bearing demand deposits		$	2,131,978				1.85	%		$	2,134,807				2.10	%		$	2,466,263				2.14	%
Money market deposits			3,259,771				3.52	%			3,073,384				3.75	%			3,200,455				3.33	%
Savings deposits			1,306,584				1.76	%			1,212,870				1.85	%			1,112,454				1.11	%
Time deposits			9,932,776				4.45	%			10,250,601				4.65	%			9,208,820				4.21	%
Total interest-bearing deposits		$	16,631,109				3.72	%		$	16,671,662				3.95	%		$	15,987,992				3.50	%
Other borrowed funds			111,142				4.07	%			186,838				4.86	%			600,483				5.46	%
Long-term debt			119,136				7.33	%			119,136				7.85	%			119,136				5.86	%
Total interest-bearing liabilities			16,861,387				3.75	%			16,977,636				3.99	%			16,707,611				3.59	%
Non-interest-bearing demand deposits			3,318,350								3,230,150								3,598,385
Total deposits and other borrowed funds		$	20,179,737							$	20,207,786							$	20,305,996
Total average assets		$	23,332,869							$	23,353,025							$	23,304,836
Total average equity		$	2,854,994							$	2,828,379							$	2,681,899

 

		Year ended
(In thousands)(Unaudited)		December 31, 2024								December 31, 2023
		Average Balance				Average Yield/Rate (1)				Average Balance				Average Yield/Rate (1)
Interest-earning assets:
Loans (1)		$	19,434,614				6.26	%		$	18,763,271				6.02	%
Taxable investment securities			1,621,477				3.66	%			1,558,877				3.32	%
FHLB stock			18,681				9.02	%			18,620				7.25	%
Deposits with banks			1,098,488				5.17	%			1,141,720				5.16	%
Total interest-earning assets		$	22,173,260				6.02	%		$	21,482,488				5.78	%
Interest-bearing liabilities:
Interest-bearing demand deposits		$	2,186,726				2.05	%		$	2,388,080				1.71	%
Money market deposits			3,166,318				3.65	%			3,164,739				2.72	%
Savings deposits			1,151,427				1.52	%			1,070,405				0.83	%
Time deposits			10,022,826				4.57	%			8,849,293				3.75	%
Total interest-bearing deposits		$	16,527,297				3.85	%		$	15,472,517				3.02	%
Other borrowed funds			315,086				5.24	%			505,218				5.15	%
Long-term debt			119,136				6.82	%			119,136				5.44	%
Total interest-bearing liabilities			16,961,519				3.90	%			16,096,871				3.11	%
Non-interest-bearing demand deposits			3,283,586								3,705,788
Total deposits and other borrowed funds		$	20,245,105							$	19,802,659
Total average assets		$	23,368,429							$	22,705,192
Total average equity		$	2,809,620							$	2,610,582

 

(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 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
			December 31, 2024				September 30, 2024				December 31, 2023
			(In thousands) (Unaudited)
Stockholders' equity	(a)		$	2,845,704			$	2,830,313			$	2,736,575
Less: Goodwill				(375,696	)			(375,696	)			(375,696	)
Other intangible assets (1)				(3,335	)			(3,590	)			(4,461	)
Tangible equity	(b)		$	2,466,673			$	2,451,027			$	2,356,418
Total assets	(c)		$	23,054,681			$	23,274,443			$	23,081,534
Less: Goodwill				(375,696	)			(375,696	)			(375,696	)
Other intangible assets (1)				(3,335	)			(3,590	)			(4,461	)
Tangible assets	(d)		$	22,675,650			$	22,895,157			$	22,701,377
Number of common shares outstanding	(e)			70,863,324				71,355,869				72,668,927
Total stockholders' equity to total assets ratio	(a)/(c)			12.34	%			12.16	%			11.86	%
Tangible equity to tangible assets ratio	(b)/(d)			10.88	%			10.71	%			10.38	%
Tangible book value per share	(b)/(e)		$	34.81			$	34.35			$	32.43

 

			Three Months Ended												Twelve Months Ended
			December 31, 2024				September 30, 2024				December 31, 2023				December 31, 2024				December 31, 2023
			(In thousands) (Unaudited)
Net Income			$	80,201			$	67,514			$	82,526			$	285,979			$	354,124
Add: Amortization of other intangibles (1)				256				264				262				1,127				1,294
Tax effect of amortization adjustments (2)				(76	)			(78	)			(78	)			(334	)			(384	)
Tangible net income	(f)		$	80,381			$	67,700			$	82,710			$	286,772			$	355,034
Return on tangible common equity (3)	(f)/(b)			13.03	%			11.05	%			14.04	%			11.63	%			15.07	%

 

(1) Includes core deposit intangibles and mortgage servicing

(2) Applied the statutory rate of 29.65%.

(3) Annualized

 

Exhibit 99.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

v3.24.4

Document And Entity Information	Jan. 22, 2025
Document Information [Line Items]
Entity, Registrant Name	CATHAY GENERAL BANCORP
Document, Type	8-K
Document, Period End Date	Jan. 22, 2025
Entity, Incorporation, State or Country Code	DE
Entity, File Number	001-31830
Entity, Tax Identification Number	95-4274680
Entity, Address, Address Line One	777 North Broadway
Entity, Address, City or Town	Los Angeles
Entity, Address, State or Province	CA
Entity, Address, Postal Zip Code	90012
City Area Code	213
Local Phone Number	625-4700
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock
Trading Symbol	CATY
Security Exchange Name	NASDAQ
Entity, Emerging Growth Company	false
Amendment Flag	false
Entity, Central Index Key	0000861842

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