Cathay General Bancorp Announces Fourth Quarter and Full Year 2019 Results

LOS ANGELES, Jan. 22, 2020 /PRNewswire/ -- 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, 2019.  The Company reported net income of $67.4 million, or $0.84 per share, for the fourth quarter of 2019, and net income of $279.1 million, or $3.48 per share, for the year ended December 31, 2019. 

Cathay General Bancorp (PRNewsFoto/Cathay General Bancorp) (PRNewsfoto/Cathay General Bancorp)

FINANCIAL PERFORMANCE



Three months ended



Year ended December 31,

(unaudited)

December 31, 2019



September 30, 2019



December 31, 2018



2019



2018

Net income

$67.4 million



$72.8 million



$64.6 million



$279.1 million



$271.9 million

Basic earnings per common share

$0.85



$0.91



$0.80



$3.49



$3.35

Diluted earnings per common share

$0.84



$0.91



$0.80



$3.48



$3.33

Return on average assets

1.49%



1.65%



1.56%



1.61%



1.70%

Return on average total stockholders' equity

11.75%



12.98%



12.07%



12.63%



13.18%

Efficiency ratio

47.51%



41.67%



47.62%



44.75%



44.25%

FULL YEAR HIGHLIGHTS

  • Total loans increased for the year by $1.1 billion, or 7.9%, to $15.1 billion from $14.0 billion in 2018. 
  • Total deposits increased for the year by $1.0 billion, or 7.3%, to $14.7 billion from $13.7 billion in 2018.

"We reported record net income of $279.1 million and record EPS of $3.48 in 2019.  Strong loan growth of $1.1 billion in 2019, or 7.9%, was a major contributor to the record results." commented Pin Tai, Chief Executive Officer of the Company. 

FOURTH QUARTER INCOME STATEMENT REVIEW

Net income for the quarter ended December 31, 2019, was $67.4 million, an increase of $2.8 million, or 4.3%, compared to net income of $64.6 million for the same quarter a year ago.  Diluted earnings per share for the quarter ended December 31, 2019, was $0.84 compared to $0.80 for the same quarter a year ago.

Return on average stockholders' equity was 11.75% and return on average assets was 1.50% for the quarter ended December 31, 2019, compared to a return on average stockholders' equity of 12.07% and a return on average assets of 1.56% for the same quarter a year ago.    

Net interest income before provision for credit losses

Net interest income before provision for credit losses decreased $4.2 million, or 2.9%, to $141.2 million during the fourth quarter of 2019, compared to $145.4 million during the same quarter a year ago.  The decrease was due primarily to an increase in interest expense from time deposits, offset in part by an increase in interest income from loans and securities.

The net interest margin was 3.34% for the fourth quarter of 2019 compared to 3.77% for the fourth quarter of 2018 and 3.56% for the third quarter of 2019. 

For the fourth quarter of 2019, the yield on average interest-earning assets was 4.53%, the cost of funds on average interest-bearing liabilities was 1.61%, and the cost of interest-bearing deposits was 1.55%.  In comparison, for the fourth quarter of 2018, the yield on average interest-earning assets was 4.76%, the cost of funds on average interest-bearing liabilities was 1.36%, and the cost of interest-bearing deposits was 1.29%. The decrease in the yield on average interest-earning assets resulted mainly from lower rates on loans.  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 2.92% for the quarter ended December 31, 2019, compared to 3.40% for the same quarter a year ago.

Reversal for credit losses

Based on a review of the appropriateness of the allowance for loan losses at December 31, 2019, the Company recorded a reversal for credit losses of $5.0 million in fourth quarter of 2019 compared to no provision for credit losses in the fourth quarter of 2018.  The reversal for credit losses is partially a result of net recoveries of $2.3 million, and the impact of the easing of tariffs on imports from China announced during the fourth quarter 2019.  The following table sets forth the charge-offs and recoveries for the periods indicated:





Three months ended



Year ended December 31,



December 31, 2019



September 30, 2019



December 31, 2018



2019



2018



(In thousands) (Unaudited)

Charge-offs:



















  Commercial loans

$                    697



$                  3,356



$                      -



$ 6,997



$    629

  Real estate loans (1)

-



-



2,186



-



2,576

     Total charge-offs 

697



3,356



2,186



6,997



3,205

Recoveries:



















  Commercial loans

2,546



212



625



4,155



1,875

  Construction loans

-



3,378



44



4,612



177

  Real estate loans(1)

467



5,023



451



6,063



4,765

     Total recoveries

3,013



8,613



1,120



14,830



6,817

Net (recoveries)/charge-offs

$                (2,316)



$                 (5,257)



$                 1,066



$(7,833)



$(3,612)





(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 $8.7 million for the fourth quarter of 2019, a decrease of $2.1 million, or 19.4%, compared to $10.8 million for the fourth quarter of 2018.  The decrease was primarily due to a $4.0 million decrease in net gains from equity securities and offset by a $1.3 million increase in wealth management fees.

Non-interest expense

Non-interest expense decreased $3.2 million, or 4.3%, to $71.2 million in the fourth quarter of 2019 compared to $74.4 million in the same quarter a year ago.  The decrease in non-interest expense in the fourth quarter of 2019 was primarily due to a $5.7 million decrease in amortization expense of investments in low income housing and alternative energy partnerships offset by a $1.2 million increase in FDIC and State assessments when compared to the same quarter a year ago.  The efficiency ratio was 47.5% in the fourth quarter of 2019 compared to 47.6% for the same quarter a year ago.   

Income taxes

The effective tax rate for the fourth quarter of 2019 was 19.5% compared to 21.0% for the fourth quarter of 2018.  The effective tax rate includes an alternative energy investment made in the second quarter of 2019 and 2018 and the impact of low-income housing tax credits. 

BALANCE SHEET REVIEW

Gross loans, excluding loans held for sale, were $15.1 billion at December 31, 2019, an increase of $1.1 billion, or 7.9%, from $14.0 billion at December 31, 2018.  The increase was primarily due to increases of $394.7 million, or 10.7%, in residential mortgage loans, $551.1 million, or 8.2%, in commercial mortgage loans, and $98.0 million, or 39.2%, in equity lines of credit.  The loan balances and composition at December 31, 2019, compared to September 30, 2019 and December 31, 2018, are presented below:



December 31, 2019



September 30, 2019



December 31, 2018



(In thousands) (Unaudited)

Commercial loans

$           2,778,744



$            2,668,061



$           2,741,965

Residential mortgage loans

4,088,586



4,010,739



3,693,853

Commercial mortgage loans

7,275,262



7,135,599



6,724,200

Equity lines

347,975



315,252



249,967

Real estate construction loans

579,864



593,816



581,454

Installment and other loans

5,050



5,087



4,349













Gross loans

$         15,075,481



$          14,728,554



$         13,995,788













Allowance for loan losses

(123,224)



(125,908)



(122,391)

Unamortized deferred loan fees

(626)



(1,081)



(1,565)













Total loans, net

$         14,951,631



$          14,601,565



$         13,871,832













Loans held for sale

$                      -



$                36,778



$                      -

Total deposits were $14.7 billion at December 31, 2019, an increase of $1.0 billion, or 7.3%, from $13.7 billion at December 31, 2018.  The deposit balances and composition at December 31, 2019, compared to September 30, 2019 and December 31, 2018, are set forth below:  















December 31, 2019



September 30, 2019



December 31, 2018



(In thousands) (Unaudited)

Non-interest-bearing demand deposits

$           2,871,444



$                 2,939,924



$           2,857,443

NOW deposits

1,358,152



1,282,267



1,365,763

Money market deposits

2,260,764



2,095,328



2,027,404

Savings deposits

758,903



721,547



738,656

Time deposits

7,443,045



7,619,203



6,713,074

Total deposits

$         14,692,308



$          14,658,269



$         13,702,340

ASSET QUALITY REVIEW

At December 31, 2019, total non-accrual loans were $40.5 million, a decrease of $6.7 million, or 14.2%, from $47.2 million at September 30, 2019, and a decrease of $1.3 million, or 3.1%, from $41.8 million at December 31, 2018.         

The allowance for loan losses was $123.2 million and the allowance for off-balance sheet unfunded credit commitments was $3.9 million at December 31, 2019, which represented the amount believed by management to be appropriate to absorb credit losses inherent in the loan portfolio, including unfunded credit commitments.  The $123.2 million allowance for loan losses at December 31, 2019, increased $0.8 million, or 0.7%, from $122.4 million at December 31, 2018.  The allowance for loan losses represented 0.82% of period-end gross loans, excluding loans held for sale, and 262.6% of non-performing loans at December 31, 2019.  The comparable ratios were 0.87% of period-end gross loans, excluding loans held for sale, and 268.5% of non-performing loans at December 31, 2018.  The changes in non-performing assets and troubled debt restructurings at December 31, 2019, compared to December 31, 2018 and September 30, 2019, are shown below:

(Dollars in thousands) (Unaudited)

December 31, 2019



December 31, 2018



% Change



September 30, 2019



% Change

Non-performing assets



















Accruing loans past due 90 days or more

$                 6,409



$                 3,773



70



$                     683



838

Non-accrual loans:



















  Construction loans

4,580



4,872



(6)



4,629



(1)

  Commercial mortgage loans

9,928



10,611



(6)



12,330



(19)

  Commercial loans

19,381



18,805



3



22,970



(16)

  Residential mortgage loans

6,634



7,527



(12)



7,271



(9)

Total non-accrual loans:

$               40,523



$               41,815



(3)



$                47,200



(14)

Total non-performing loans

46,932



45,588



3



47,883



(2)

 Other real estate owned

10,244



12,674



(19)



11,329



(10)

Total non-performing assets

$               57,176



$               58,262



(2)



$                59,212



(3)

Accruing  troubled  debt  restructurings (TDRs)

$               35,336



$               65,071



(46)



$                41,647



(15)





















Allowance for loan losses

$              123,224



$              122,391



1



$               125,908



(2)

Total gross loans outstanding, at period-end (1)

$         15,075,481



$         13,995,788



8



$          14,728,554



2





















Allowance for loan losses to non-performing loans, at period-end (2)

262.56%



268.47%







262.95%





Allowance for loan losses to gross loans, at period-end (1)

0.82%



0.87%







0.85%







(1) Excludes loans held for sale at period-end.



(2) Excludes non-accrual loans held for sale at period-end.

The ratio of non-performing assets to total assets was 0.3% at December 31, 2019, compared to 0.3% at December 31, 2018.  Total non-performing assets decreased $1.1 million, or 1.9%, to $57.2 million at December 31, 2019, compared to $58.3 million at December 31, 2018, primarily due to a decrease of $2.4 million, or 19.2%, in other real estate owned, and a decrease of $1.3 million, or 3.1%, in non-accrual loans, offset in part by an increase of $2.6 million, or 69.9%, in accruing loans past due 90 days or more. 

CAPITAL ADEQUACY REVIEW

At December 31, 2019, the Company's Tier 1 risk-based capital ratio of 12.51%, total risk-based capital ratio of 14.11%, and Tier 1 leverage capital ratio of 10.83%, 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%. At December 31, 2018, the Company's Tier 1 risk-based capital ratio was 12.43%, total risk-based capital ratio was 14.15%, and Tier 1 leverage capital ratio was 10.83%.

FULL YEAR REVIEW

Net income for the year ended December 31, 2019, was $279.1 million, an increase of $7.2 million, or 2.6%, compared to net income of $271.9 million for the year ended December 31, 2018.  Diluted earnings per share for the year ended December 31, 2019 was $3.48 compared to $3.33 per share for the year ended December 31, 2018.  The net interest margin for the year ended December 31, 2019, was 3.54% compared to 3.79% for the year ended December 31, 2018.

Return on average stockholders' equity was 12.63% and return on average assets was 1.61% for the year ended December 31, 2019, compared to a return on average stockholders' equity of 13.18% and a return on average assets of 1.70% for the year ended December 31, 2018.  The efficiency ratio for the year ended December 31, 2019, was 44.8% compared to 44.3% for the year ended December 31, 2018.   

CONFERENCE CALL

Cathay General Bancorp will host a conference call this afternoon to discuss its fourth quarter and year-end 2019 financial results. The call will begin at 3:00 p.m., Pacific Time. Analysts and investors may dial in and participate in the question-and-answer session. To access the call, please dial 1-855-761-3186 and enter Conference ID 8985581. 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 38 branches in California, 10 branches in New York State, four in Washington State, three 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 found at www.cathaybank.com. Cathay General Bancorp's website is found 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 U.S. and international business and economic conditions; possible additional provisions for loan losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to including potential future supervisory action by bank supervisory authorities; increased costs of compliance and other risks associated with changes in regulation including the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act; 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 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; our ability to consummate and realize the anticipated benefits of our acquisitions; the risk that integration of business operations following any acquisitions, will be materially delayed or will be more costly or difficult than expected; 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, 2018 (Item 1A in particular), other reports filed with the Securities and Exchange Commission ("SEC"), and other filings Cathay General Bancorp makes with the SEC from time to time. Actual results in any future period may also vary from the past results discussed in this press release. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements, which speak to the date of this press release. Cathay General Bancorp has no intention and undertakes no obligation to update any forward-looking statement or to publicly announce any revision of any forward-looking statement to reflect future developments or events, except as required by law. 

CATHAY GENERAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)







Three months ended



Year ended December 31,

(Dollars in thousands, except per share data)



December 31, 2019



September 30, 2019



December 31, 2018



2019



2018























FINANCIAL PERFORMANCE





















Net interest income before provision for credit losses    



$                  141,211



$                   147,000



$                  145,441



$574,906



$565,899

Reversal for credit losses



(5,000)



(2,000)



-



(7,000)



(4,500)

Net interest income after reversal for credit losses



146,211



149,000



145,441



581,906



570,399

Non-interest income



8,648



10,388



10,795



44,751



31,707

Non-interest expense



71,191



65,580



74,396



277,288



264,419

Income before income tax expense



83,668



93,808



81,840



349,369



337,687

Income tax expense



16,290



20,973



17,192



70,234



65,802

Net income



$                    67,378



$                     72,835



$                    64,648



$279,135



$271,885























Net income per common share





















Basic



$                         0.85



$0.91



$                         0.80



$       3.49



$       3.35

Diluted



$                         0.84



$0.91



$                         0.80



$       3.48



$       3.33























 Cash dividends paid per common share  



$                         0.31



$                          0.31



$                         0.31



$       1.24



$       1.03













































SELECTED RATIOS





















Return on average assets



1.50%



1.65%



1.56%



1.61%



1.70%

Return on average total stockholders' equity



11.75%



12.98%



12.07%



12.63%



13.18%

Efficiency ratio



47.51%



41.67%



47.62%



44.75%



44.25%

Dividend payout ratio



36.67%



33.92%



38.59%



35.51%



30.69%













































YIELD ANALYSIS (Fully taxable equivalent)





















Total interest-earning assets



4.53%



4.80%



4.76%



4.74%



4.61%

Total interest-bearing liabilities



1.61%



1.65%



1.36%



1.61%



1.12%

Net interest spread



2.92%



3.15%



3.40%



3.13%



3.49%

Net interest margin



3.34%



3.56%



3.77%



3.54%



3.79%













































CAPITAL RATIOS



December 31, 2019



September 30, 2019



December 31, 2018









Tier 1 risk-based capital ratio



12.51%



12.41%



12.43%









Total risk-based capital ratio



14.11%



14.06%



14.15%









Tier 1 leverage capital ratio



10.83%



10.81%



10.83%













.

















 

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)



(In thousands, except share and per share data)



December 31, 2019



September 30, 2019



December 31, 2018















Assets













Cash and due from banks



$                  179,740



$                   257,189



$                  225,333

Short-term investments and interest bearing deposits



416,538



567,957



374,957















Securities available-for-sale (amortized cost of $1,443,730 at December 31, 2019, $1,422,431 at September 30, 2019 and $1,267,731 at December 31, 2018)















1,451,842



1,427,438



1,242,509

Loans held for sale



-



36,778



-

Loans



15,075,481



14,728,554



13,995,788

Less:  Allowance for loan losses



(123,224)



(125,908)



(122,391)

 Unamortized deferred loan fees, net



(626)



(1,081)



(1,565)

 Loans, net



14,951,631



14,601,565



13,871,832

Equity securities



28,005



32,862



25,098

Federal Home Loan Bank stock



18,090



17,250



17,250

Other real estate owned, net



10,244



11,329



12,674

Affordable housing investments and alternative energy partnerships, net



308,681



321,929



282,734

Premises and equipment, net



104,239



103,820



103,189

Customers' liability on acceptances



10,694



12,503



22,709

Accrued interest receivable



53,540



52,337



51,650

Goodwill



372,189



372,189



372,189

Other intangible assets, net



6,296



6,821



7,194

Right-of-use assets- operating leases



33,990



34,518



-

Other assets



150,901



148,481



175,419















Total assets



$            18,096,620



$             18,004,966



$            16,784,737















Liabilities and Stockholders' Equity













Deposits













Non-interest-bearing demand deposits



$              2,871,444



$                2,939,924



$              2,857,443

Interest-bearing deposits:













NOW deposits



1,358,152



1,282,267



1,365,763

Money market deposits



2,260,764



2,095,328



2,027,404

Savings deposits



758,903



721,547



738,656

Time deposits 



7,443,045



7,619,203



6,713,074

Total deposits



14,692,308



14,658,269



13,702,340















Short-term borrowings



25,683



25,507



-

Advances from the Federal Home Loan Bank



670,000



600,000



530,000

Other borrowings for affordable housing investments



29,022



30,767



17,298

Long-term debt



119,136



160,386



189,448

Deferred payments from acquisition



7,644



7,602



18,458

Acceptances outstanding



10,694



12,503



22,709

Lease liabilities - operating leases



35,873



36,142



-

Other liabilities



211,977



227,896



182,618

Total liabilities



15,802,337



15,759,072



14,662,871

Stockholders' equity



2,294,283



2,245,894



2,121,866

Total liabilities and equity



$            18,096,620



$             18,004,966



$            16,784,737















Book value per common share



$                      28.78



$                        28.18



$                      26.36

Number of common shares outstanding



79,729,419



79,706,511



80,501,948

 

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)







Three months ended



Year ended December 31,





December 31, 2019

September 30, 2019

December 31, 2018



2019

2018





(In thousands, except share and per share data)

INTEREST AND  DIVIDEND INCOME















Loan receivable, including loan fees



$                  181,224

$                   187,827

$                  174,352



$   729,619

$   652,480

Investment securities



8,583

8,687

7,391



33,037

28,603

Federal Home Loan Bank stock



304

301

584



1,207

1,663

Deposits with banks



1,115

1,016

1,542



5,404

5,209

















Total interest and dividend income



191,226

197,831

183,869



769,267

687,955

















INTEREST EXPENSE















Time deposits 



38,799

40,378

29,775



152,791

86,368

Other deposits



7,720

6,626

5,611



25,311

20,503

Securities sold under agreements to repurchase



-

-

-



-

1,446

Advances from Federal Home Loan Bank



1,466

1,661

620



7,441

3,739

Long-term debt



1,760

1,948

2,258



7,847

8,723

Deferred payments from acquisition



66

93

144



568

1,090

Short-term borrowings



204

125

20



403

187

















Total interest expense



50,015

50,831

38,428



194,361

122,056

















Net interest income before reversal for credit losses



141,211

147,000

145,441



574,906

565,899

Reversal for credit losses



(5,000)

(2,000)

-



(7,000)

(4,500)

















Net interest income after reversal for credit losses



146,211

149,000

145,441



581,906

570,399

















NON-INTEREST INCOME















Net (losses)/gains from equity securities



(2,186)

364

1,793



5,578

(2,787)

Securities gains/(losses), net



476

(121)

36



369

22

Letters of credit commissions



1,674

1,602

1,505



6,407

5,614

Depository service fees



1,146

1,119

1,179



4,763

5,084

Gains from acquisition



-

-

-



-

340

Other operating income



7,538

7,424

6,282



27,634

23,434

















Total non-interest income



8,648

10,388

10,795



44,751

31,707

















NON-INTEREST EXPENSE















Salaries and employee benefits



32,100

31,915

32,986



129,300

124,477

Occupancy expense



5,386

5,579

4,882



22,004

20,690

Computer and equipment expense



2,660

2,741

2,925



11,113

11,402

Professional services expense



5,899

5,952

5,755



23,107

22,810

Data processing service expense



3,473

3,246

2,988



13,210

12,438

FDIC and State assessments



2,427

2,582

1,268



9,617

8,000

Marketing expense



2,029

2,436

2,316



7,585

7,837

Other real estate owned expense/(income)



276

190

(483)



1,115

(719)

Amortization of investments in low income housing and alternative energy partnerships



12,822

6,997

18,526



39,731

40,515

Amortization of core deposit intangibles



172

172

172



687

876

Acquisition and integration costs



-

-

22



-

2,105

Other operating expense



3,947

3,770

3,039



19,819

13,988

















Total non-interest expense



71,191

65,580

74,396



277,288

264,419

















Income before income tax expense



83,668

93,808

81,840



349,369

337,687

Income tax expense



16,290

20,973

17,192



70,234

65,802

Net income



$                    67,378

$                     72,835

$                    64,648



279,135

271,885

Net income per common share:















Basic



$                         0.85

$                          0.91

$                         0.80



$          3.49

$          3.35

Diluted



$                         0.84

$                          0.91

$                         0.80



$          3.48

$          3.33

















Cash dividends paid per common share



$                         0.31

$                          0.31

$                         0.31



$          1.24

$          1.03

Basic average common shares outstanding



79,711,414

79,736,814

80,854,451



79,999,703

81,131,269

Diluted average common shares outstanding



80,002,421

79,993,830

81,122,093



80,247,893

81,607,346



 

CATHAY GENERAL BANCORP

AVERAGE BALANCES – SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited)





Three months ended



(In thousands)

December 31, 2019



September 30, 2019



December 31, 2018



















Interest-earning assets

Average

Balance

Average

Yield/Rate (1)



Average

Balance

Average

Yield/Rate (1)



Average

Balance

Average

Yield/Rate (1)

Loans (1)

$14,915,083

4.82%



$14,662,847

5.08%



$13,737,560

5.04%

Taxable investment securities 

1,557,877

2.19%



1,498,569

2.30%



1,306,824

2.24%

FHLB stock

17,259

7.00%



17,250

6.92%



17,250

13.44%

Deposits with banks

275,032

1.61%



188,772

2.14%



262,525

2.33%



















Total interest-earning assets

$16,765,251

4.53%



$16,367,438

4.80%



$15,324,159

4.76%



















Interest-bearing liabilities

















Interest-bearing demand deposits

$   1,307,285

0.18%



$   1,281,629

0.18%



$   1,373,250

0.21%

Money market deposits

2,244,973

1.19%



2,028,039

1.11%



2,113,257

0.85%

Savings deposits

748,148

0.20%



726,763

0.19%



746,224

0.20%

Time deposits

7,574,179

2.03%



7,623,238

2.10%



6,616,390

1.79%

Total interest-bearing deposits

$11,874,585

1.55%



$11,659,669

1.60%



$10,849,121

1.29%

Other borrowed funds

342,227

2.01%



362,698

2.05%



152,654

1.99%

Long-term debt

142,451

4.90%



165,023

4.68%



194,085

4.62%

Total interest-bearing liabilities

12,359,263

1.61%



12,187,390

1.65%



11,195,860

1.36%



















Non-interest-bearing demand deposits

2,979,134





2,805,582





2,887,607





















Total deposits and other borrowed funds

$15,338,397





$14,992,972





$14,083,467



Total average assets

$17,883,462





$17,483,376





$16,418,970



Total average equity

$   2,274,986





$   2,226,591





$   2,124,418









































Year ended,







(In thousands)

December 31, 2019



December 31, 2018























Interest-earning assets

Average

Balance

Average

Yield/Rate (1)



Average

Balance

Average

Yield/Rate (1)







Loans (1)

$14,510,680

5.03%



$13,280,665

4.91%







Taxable investment securities 

1,442,820

2.29%



1,344,964

2.13%







FHLB stock

17,266

6.99%



18,540

8.97%







Deposits with banks

253,296

2.13%



277,005

1.88%

























Total interest-earning assets

$16,224,062

4.74%



$14,921,174

4.61%

























Interest-bearing liabilities

















Interest-bearing demand deposits

$   1,290,752

0.18%



$   1,389,326

0.20%







Money market deposits

2,012,306

1.07%



2,200,847

0.74%







Savings deposits

731,027

0.20%



791,982

0.20%







Time deposits

7,459,800

2.05%



6,031,061

1.43%







Total interest-bearing deposits

$11,493,885

1.55%



$10,413,216

1.03%







Securities sold under agreements to repurchase

-

0.00%



49,589

2.92%







Other borrowed funds

379,816

2.21%



253,714

1.98%







Long-term debt

164,976

4.76%



194,123

4.49%







Total interest-bearing liabilities

12,038,677

1.61%



10,910,642

1.12%

























Non-interest-bearing demand deposits

2,837,947





2,819,711



























Total deposits and other borrowed funds

$14,876,623





$13,730,353



























Total average assets

$17,337,263





$16,004,319









Total average equity

$   2,209,642





$   2,063,400













(1)

Yields and interest earned include net loan fees. Non-accrual loans are included in the average balance.

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/cathay-general-bancorp-announces-fourth-quarter-and-full-year-2019-results-300991623.html

SOURCE Cathay General Bancorp

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