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Cathay General Bancorp Announces Fourth Quarter and Full Year 2019 Results

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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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