Cathay General Bancorp Announces Second Quarter 2020 Results

LOS ANGELES, July 27, 2020 /PRNewswire/ — Cathay General Bancorp (the “Company”, “we”, “us”, or “our” NASDAQ: CATY), the holding company…

LOS ANGELES, July 27, 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 ended June 30, 2020.  The Company reported net income of $54.3 million, or $0.68 per share, for the second quarter of 2020.

FINANCIAL PERFORMANCE


Three months ended

(unaudited)

June 30, 2020


March 31, 2020


June 30, 2019

Net income

$54.3 million


$46.9 million


$72.2 million

Basic earnings per common share

$0.68


$0.59


$0.90

Diluted earnings per common share

$0.68


$0.59


$0.90

Return on average assets

1.15%


1.05%


1.69%

Return on average total stockholders’ equity

9.31%


8.12%


13.27%

Efficiency ratio

44.82%


44.60%


44.53%

SECOND QUARTER HIGHLIGHTS

  • Total deposits increased for the quarter by $1.2 billion, or 7.9%, to $16.3 billion.

“For the second quarter of 2020, our total deposits increased $1.2 billion, or 31.6% annualized, to $16.3 billion, with the majority of the increase in core deposits.  This strong growth in deposits reflects Cathay’s commitment to serve the financial needs of our customers during this challenging time,” commented Pin Tai, Chief Executive Officer of the Company.

SECOND QUARTER INCOME STATEMENT REVIEW

Net income for the quarter ended June 30, 2020, was $54.3 million, a decrease of $17.9 million, or 24.8%, compared to net income of $72.2 million for the same quarter a year ago.  Diluted earnings per share for the quarter ended June 30, 2020, was $0.68 per share compared to $0.90 per share for the same quarter a year ago.

Return on average stockholders’ equity was 9.31% and return on average assets was 1.15% for the quarter ended June 30, 2020, compared to a return on average stockholders’ equity of 13.27% and a return on average assets of 1.69% for the same quarter a year ago.

Net interest income before provision for credit losses

Net interest income before provision for credit losses decreased $8.9 million, or 6.2%, to $134.5 million during the second quarter of 2020, compared to $143.4 million during the same quarter a year ago.  The decrease was due primarily to a decrease in interest income from loans and securities.

The net interest margin was 3.02% for the second quarter of 2020 compared to 3.58% for the second quarter of 2019 and 3.34% for the first quarter of 2020.

For the second quarter of 2020, the yield on average interest-earning assets was 3.91%, the cost of funds on average interest-bearing liabilities was 1.20%, and the cost of interest-bearing deposits was 1.16%.  In comparison, for the second quarter of 2019, the yield on average interest-earning assets was 4.81%, the cost of funds on average interest-bearing liabilities was 1.65%, and the cost of interest-bearing deposits was 1.58%. 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 2.71% for the quarter ended June 30, 2020, compared to 3.16% for the same quarter a year ago.

Provision for credit losses

Based on a review of the appropriateness of the allowance for loan losses at June 30, 2020, the Company recorded a provision for credit losses of $25.0 million in second quarter of 2020 compared to no provision for credit losses in the second quarter of 2019.  The provision for credit losses is primarily a result of the economic deterioration of the global economy resulting from the COVID-19 pandemic.  The Company will continue to monitor the continuing impact of the pandemic on credit risks and losses, as well as on customer demand deposits and other liabilities and assets.  As permitted under the Coronavirus, Aid, Relief and Economic Security Act (the “CARES Act”), the Company has chosen to defer the adoption of the Current Expected Credit Losses (CECL) methodology for estimated credit losses until the earlier of the date the US government declares an end to the national emergency or December 31, 2020. The expected impact of CECL on second quarter results, if CECL had been adopted, will be disclosed in our Form 10-Q for the second quarter of 2020.  The following table sets forth the charge-offs and recoveries for the periods indicated:


Three months ended


Six months ended June 30,


June 30, 2020


March 31, 2020


June 30, 2019


2020


2019


(In thousands) (Unaudited)

Charge-offs:










  Commercial loans

$            5,106


$              1,321


$            1,713


$6,427


$2,944

     Total charge-offs 

5,106


1,321


1,713


6,427


2,944

Recoveries:










  Commercial loans

1,350


1,208


1,356


2,558


1,397

  Construction loans



30



1,074

  Real estate loans(1)

163


162


423


325


733

     Total recoveries

1,513


1,370


1,809


2,883


3,204

Net charge-offs/(recoveries)

$            3,593


$                 (49)


$               (96)


$3,544


$ (260)


(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 $15.6 million for the second quarter of 2020, an increase of $2.8 million, or 21.9%, compared to $12.8 million for the second quarter of 2019.  The increase was primarily due to a $2.5 million increase in net gains from equity securities, and an increase of $1.1 million from the gain on sale of mortgage backed securities, offset in part by a $682.1 thousand decrease in the valuation of interest rate swap contracts, when compared to the same quarter a year ago.

Non-interest expense

Non-interest expense decreased $2.2 million, or 3.2%, to $67.3 million in the second quarter of 2020 compared to $69.5 million in the same quarter a year ago.  The decrease in non-interest expense in the second quarter of 2020 was primarily due to a $5.0 million decrease in salaries and employee benefits resulting from lower bonus accruals and an increase in salaries capitalized for loan originations offset in part by an increase of $3.8 million in amortization expense of investments in low-income housing and alternative energy partnerships when compared to the same quarter a year ago.  The efficiency ratio was 44.8% in the second quarter of 2020 compared to 44.5% for the same quarter a year ago.

Income taxes

The effective tax rate for the second quarter of 2020 was 6.0% compared to 16.6% for the second quarter of 2019. The effective tax rate includes an alternative energy investment made in the second quarter of 2020 and the impact of low-income housing tax credits.

BALANCE SHEET REVIEW 

Gross loans were $15.6 billion at June 30, 2020, an increase of $532.8 million, or 3.5%, from $15.1 billion at December 31, 2019.  The increase was primarily due to $261.7 million in Paycheck Protection Loans and increases of $116.2 million, or 1.6%, in commercial mortgage loans, $96.1 million, or 2.4%, in residential mortgage loans, $51.2 million, or 14.7%, in equity lines and $44.3 million, or 7.6%, in real estate construction loans.  The loan balances and composition at June 30, 2020, compared to December 31, 2019 and June 30, 2019, are presented below:


June 30, 2020


December 31, 2019


June 30, 2019


(In thousands) (Unaudited)

Commercial loans

$     2,746,316


$               2,778,744


$     2,772,982

Paycheck protection program loans

261,650



Residential mortgage loans

4,184,721


4,088,586


3,967,135

Commercial mortgage loans

7,391,502


7,275,262


6,945,562

Equity lines

399,207


347,975


302,351

Real estate construction loans

624,199


579,864


598,849

Installment and other loans

688


5,050


6,631

Gross loans

$   15,608,283


$             15,075,481


$   14,593,510







Allowance for loan losses

(169,680)


(123,224)


(122,651)

Unamortized deferred loan fees

(4,507)


(626)


(1,415)

Total loans, net

$   15,434,096


$             14,951,631


$   14,469,444


Total deposits were $16.3 billion at June 30, 2020, an increase of $1.6 billion, or 10.9%, from $14.7 billion at December 31, 2019.  The increases in non-interest bearing demand deposits and money market deposits resulted from higher liquidity maintained by our depositors during these uncertain times, unused funds still in demand deposit accounts from payroll protection program loans and improved money market deposit generation from corporate accounts. The deposit balances and composition at June 30, 2020, compared to December 31, 2019 and June 30, 2019, are presented below:


June 30, 2020


December 31, 2019


June 30, 2019


(In thousands) (Unaudited)

Non-interest-bearing demand deposits

$     3,298,415


$               2,871,444


$     2,758,344

NOW deposits

1,671,290


1,358,152


1,267,464

Money market deposits

2,982,385


2,260,764


1,909,097

Savings deposits

743,982


758,903


716,206

Time deposits

7,585,832


7,443,045


7,711,811

Total deposits

$   16,281,904


$             14,692,308


$   14,362,922

ASSET QUALITY REVIEW

At June 30, 2020, total non-accrual loans were $56.5 million, an increase of $16.0 million, or 39.5%, from $40.5 million at December 31, 2019, and an increase of $1.8 million, or 3.3%, from $54.7 million at June 30, 2019 due primarily to a $11.7 million commercial loan.

The allowance for loan losses was $169.7 million and the allowance for off-balance sheet unfunded credit commitments was $4.7 million at June 30, 2020, which represented the amount believed by management to be appropriate to absorb credit losses inherent in the loan portfolio, including unfunded credit commitments.  The $169.7 million allowance for loan losses at June 30, 2020, increased $46.5 million, or 37.7%, from $123.2 million at December 31, 2019.  This increase includes additional provisions for credit losses and reflects the deterioration in economic conditions related to COVID-19 and an increase in specific reserves of $4.3 million. The allowance for loan losses represented 1.09% of period-end gross loans, and 218.0% of non-performing loans at June 30, 2020.  The comparable ratios were 0.82% of period-end gross loans, and 262.6% of non-performing loans at December 31, 2019.  Accruing loans past due 90 days or more at June 30, 2020 have been reduced to $3.1 million as of July 27, 2020 due to the completion of loan renewals.  The changes in non-performing assets and troubled debt restructurings at June 30, 2020, compared to December 31, 2019 and June 30, 2019, are presented below:

(Dollars in thousands) (Unaudited)

June 30, 2020


December 31, 2019


% Change


June 30, 2019


% Change

Non-performing assets










Accruing loans past due 90 days or more

$          21,374


$                      6,409


233


$          14,469


48

Non-accrual loans:










  Construction loans

4,433


4,580


(3)


4,702


(6)

  Commercial mortgage loans

10,896


9,928


10


14,515


(25)

  Commercial loans

27,125


19,381


40


28,070


(3)

  Residential mortgage loans

14,004


6,634


111


7,461


88

Total non-accrual loans:

$          56,458


$                   40,523


39


$          54,748


3

Total non-performing loans

77,832


46,932


66


69,217


12

 Other real estate owned

7,318


10,244


(29)


11,329


(35)

Total non-performing assets

$          85,150


$                   57,176


49


$          80,546


6

Accruing troubled debt restructurings (TDRs)

$          31,671


$                   35,336


(10)


$          64,898


(51)











Allowance for loan losses

$        169,680


$                  123,224


38


$        122,651


38

Total gross loans outstanding, at period-end 

$   15,608,283


$             15,075,481


4


$   14,593,510


7











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

218.01%


262.56%




177.20%



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

1.09%


0.82%




0.84%



The ratio of non-performing assets to total assets was 0.4% at June 30, 2020, compared to 0.3% at December 31, 2019.  Total non-performing assets increased $28.0 million, or 49.0%, to $85.2 million at June 30, 2020, compared to $57.2 million at December 31, 2019, primarily due to an increase of $15.0 million, or 233.5%, in loans 90 days or more past due and still accruing and an increase of $15.9 million, or 39.3%, in nonaccrual loans, offset in part by a decrease of $2.9 million, or 28.6%, in other real estate owned. 

CAPITAL ADEQUACY REVIEW

At June 30, 2020, the Company’s Tier 1 risk-based capital ratio of 12.88%, total risk-based capital ratio of 14.81%, and Tier 1 leverage capital ratio of 10.46%, 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, 2019, the Company’s Tier 1 risk-based capital ratio was 12.51%, total risk-based capital ratio was 14.11%, and Tier 1 leverage capital ratio was 10.83%.

YEAR-TO-DATE REVIEW

Net income for the six months ended June 30, 2020, was $101.2 million, a decrease of $37.7 million, or 27.1%, compared to net income of $138.9 million for the same period a year ago.  Diluted earnings per share was $1.27 compared to $1.73 per share for the same period a year ago.  The net interest margin for the six months ended June 30, 2020, was 3.17% compared to 3.64% for the same period a year ago.

Return on average stockholders’ equity was 8.72% and return on average assets was 1.10% for the six months ended June 30, 2020, compared to a return on average stockholders’ equity of 12.92% and a return on average assets of 1.65% for the same period a year ago.  The efficiency ratio for the six months ended June 30, 2020, was 44.71% compared to 44.98% for the same period a year ago. 

CONFERENCE CALL

Cathay General Bancorp will host a conference call to discuss its second quarter 2020 financial results this afternoon, Monday, July 27, 2020, 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 7670941. A presentation to accompany the earnings call will be available at www.cathaygeneralbancorp.com.  A listen-only live Webcast of the call will be available at www.cathaygeneralbancorp.com and a recorded version is scheduled to be available for replay for 12 months after the call.

ABOUT CATHAY GENERAL BANCORP

Cathay General Bancorp is the holding company for Cathay Bank, a California state-chartered bank. Founded in 1962, Cathay Bank offers a wide range of financial services. Cathay Bank currently operates 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 local, regional, national and international business, market and economic conditions and events (such as the COVID-19 pandemic) and the impact they may have on us, our customers and our operations, assets and liabilities; possible additional provisions for loan losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to including potential future supervisory action by bank supervisory authorities; increased costs of compliance and other risks associated with changes in regulation including the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act; higher capital requirements from the implementation of the Basel III capital standards; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; our ability to generate anticipated returns on our investments and financings, including in tax-advantaged projects; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; natural disasters, public health crises (such as the COVID-19 pandemic) and geopolitical events; general economic or business conditions in Asia, and other regions where Cathay Bank has operations; failures, interruptions, or security breaches of our information systems; our ability to adapt our systems to technological changes; risk management processes and strategies; adverse results in legal proceedings; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in accounting standards or tax laws and regulations; market disruption and volatility; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; issuance of preferred stock; successfully raising additional capital, if needed, and the resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; and general competitive, economic political, and market conditions and fluctuations.

These and other factors are further described in Cathay General Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2019 (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


Six months ended June 30,

(Dollars in thousands, except per share data)


June 30, 2020


March 31, 2020


June 30, 2019


2020


2019












FINANCIAL PERFORMANCE











Net interest income before provision for credit losses    


$       134,475


$                 140,311


$       143,379


$274,786


$286,695

Provision for credit losses


25,000


25,000



50,000


Net interest income after provision for credit losses


109,475


115,311


143,379


224,786


286,695

Non-interest income


15,606


5,786


12,794


21,392


25,715

Non-interest expense


67,268


65,154


69,546


132,422


140,516

Income before income tax expense


57,813


55,943


86,627


113,756


171,894

Income tax expense


3,492


9,091


14,383


12,583


32,971

Net income


$         54,321


$                  46,852


$         72,244


$101,173


$138,923












Net income per common share











Basic


$             0.68


$                      0.59


$             0.90


$      1.27


$      1.73

Diluted


$             0.68


$                      0.59


$             0.90


$      1.27


$      1.73












 Cash dividends paid per common share  


$             0.31


$                      0.31


$             0.31


$      0.62


$      0.62























SELECTED RATIOS











Return on average assets


1.15%


1.05%


1.69%


1.10%


1.65%

Return on average total stockholders’ equity


9.31%


8.12%


13.27%


8.72%


12.92%

Efficiency ratio


44.82%


44.60%


44.53%


44.71%


44.98%

Dividend payout ratio


45.42%


52.63%


34.26%


48.76%


35.79%























YIELD ANALYSIS (Fully taxable equivalent)











Total interest-earning assets


3.91%


4.44%


4.81%


4.17%


4.83%

Total interest-bearing liabilities


1.20%


1.49%


1.65%


1.34%


1.60%

Net interest spread


2.71%


2.95%


3.16%


2.83%


3.23%

Net interest margin


3.02%


3.34%


3.58%


3.17%


3.64%























CAPITAL RATIOS


June 30, 2020


December 31, 2019


June 30, 2019





Tier 1 risk-based capital ratio


12.88%


12.51%


12.26%





Total risk-based capital ratio


14.81%


14.11%


13.92%





Tier 1 leverage capital ratio


10.46%


10.83%


10.73%







.






.














 

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(In thousands, except share and per share data)


June 30, 2020


December 31, 2019


June 30, 2019








Assets







Cash and due from banks


$          148,700


$                    177,240


$          206,123

Short-term investments and interest bearing deposits


1,425,001


416,538


351,603

Securities available-for-sale (amortized cost of $1,122,994 at June 30, 2020, 







    $1,443,730 at December 31, 2019 and $1,468,452 at June 30, 2019)


1,146,102


1,451,842


1,471,584

Loans


15,608,283


15,075,481


14,593,510

Less:  Allowance for loan losses


(169,680)


(123,224)


(122,651)

 Unamortized deferred loan fees, net


(4,507)


(626)


(1,415)

 Loans, net


15,434,096


14,951,631


14,469,444

Equity securities


24,570


28,005


32,498

Federal Home Loan Bank stock


17,250


18,090


17,250

Other real estate owned, net


7,318


10,244


11,329

Affordable housing investments and alternative energy partnerships, net


320,047


308,681


301,410

Premises and equipment, net


104,165


104,239


102,919

Customers’ liability on acceptances


10,665


10,694


9,616

Accrued interest receivable


54,326


53,541


55,711

Goodwill


372,189


372,189


372,189

Other intangible assets, net


6,030


6,296


6,782

Right-of-use assets- operating leases


34,217


33,990


36,515

Other assets


162,361


150,924


161,033

Total assets


$      19,267,037


$                   18,094,144


$      17,606,006








Liabilities and Stockholders’ Equity







Deposits







Non-interest-bearing demand deposits


$       3,298,415


$                 2,871,444


$       2,758,344

Interest-bearing deposits:







NOW deposits


1,671,290


1,358,152


1,267,464

Money market deposits


2,982,385


2,260,764


1,909,097

Savings deposits


743,982


758,903


716,206

Time deposits 


7,585,832


7,443,045


7,711,811

Total deposits


16,281,904


14,692,308


14,362,922








Short-term borrowings



25,683


Advances from the Federal Home Loan Bank


230,000


670,000


550,000

Other borrowings for affordable housing investments


32,399


29,022


30,820

Long-term debt


119,136


119,136


169,761

Deferred payments from acquisition


7,753


7,644


18,843

Acceptances outstanding


10,665


10,694


9,616

Lease liabilities – operating leases


36,408


35,873


37,858

Other liabilities


206,324


209,501


226,889

Total liabilities


16,924,589


15,799,861


15,406,709

Stockholders’ equity


2,342,448


2,294,283


2,199,297

Total liabilities and equity


$     19,267,037


$               18,094,144


$     17,606,006








Book value per common share


$             29.42


$                       28.78


$             27.55

Number of common shares outstanding


79,619,984


79,729,419


79,818,003

 

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)




Three months ended


Six months ended June 30,



June 30, 2020

March 31, 2020

June 30, 2019


2020

2019



(In thousands, except share and per share data)

INTEREST AND  DIVIDEND INCOME








Loan receivable, including loan fees


$       168,149

$          177,870

$       182,291


$   346,019

$   360,568

Investment securities


5,405

7,610

8,477


13,015

15,767

Federal Home Loan Bank stock


214

305

298


519

602

Deposits with banks


240

951

1,383


1,191

3,273

Total interest and dividend income


174,008

186,736

192,449


360,744

380,210









INTEREST EXPENSE








Time deposits 


30,811

35,155

39,491


65,966

73,614

Other deposits


5,919

7,991

5,588


13,910

10,965

Advances from Federal Home Loan Bank


1,316

1,552

1,725


2,868

4,315

Long-term debt


1,440

1,440

2,007


2,880

4,139

Deferred payments from acquisition


42

58

192


100

409

Short-term borrowings


5

229

67


234

73

Total interest expense


39,533

46,425

49,070


85,958

93,515









Net interest income before provision for credit losses


134,475

140,311

143,379


274,786

286,695

Provision for credit losses


25,000

25,000


50,000

Net interest income after provision for credit losses


109,475

115,311

143,379


224,786

286,695









NON-INTEREST INCOME








Net gains/(losses) from equity securities


5,779

(6,102)

3,237


(323)

7,400

Securities gains, net


1,147

6

13


1,153

13

Letters of credit commissions


1,560

1,640

1,577


3,200

3,131

Depository service fees


1,117

1,298

1,243


2,415

2,498

Other operating income


6,003

8,944

6,724


14,947

12,673

Total non-interest income


15,606

5,786

12,794


21,392

25,715









NON-INTEREST EXPENSE








Salaries and employee benefits


28,197

30,939

33,153


59,136

65,285

Occupancy expense


4,963

5,177

5,489


10,140

11,038

Computer and equipment expense


2,581

2,593

2,833


5,174

5,712

Professional services expense


5,200

5,145

6,000


10,345

11,257

Data processing service expense


3,566

3,666

3,081


7,232

6,491

FDIC and State assessments


2,446

2,415

2,132


4,861

4,608

Marketing expense


915

1,886

979


2,801

3,120

Other real estate owned expense/(income)


452

(4,104)

369


(3,652)

649

Amortization of investments in low income housing and

  alternative energy partnerships


12,934

13,890

9,102


26,824

19,912

Amortization of core deposit intangibles


171

172

171


343

343

Other operating expense


5,843

3,375

6,237


9,218

12,101

Total non-interest expense


67,268

65,154

69,546


132,422

140,516









Income before income tax expense


57,813

55,943

86,627


113,756

171,894

Income tax expense


3,492

9,091

14,383


12,583

32,971

Net income


$         54,321

$           46,852

$         72,244


$   101,173

$   138,923

Net income per common share:








Basic


$            0.68

$               0.59

$            0.90


$        1.27

$        1.73

Diluted


$            0.68

$               0.59

$            0.90


$        1.27

$        1.73









Cash dividends paid per common share


$            0.31

$               0.31

$            0.31


$        0.62

$        0.62

Basic average common shares outstanding


79,581,097

79,588,076

80,106,329


79,584,587

80,279,859

Diluted average common shares outstanding


79,682,426

79,830,025

80,302,679


79,756,226

80,501,800


 

CATHAY GENERAL BANCORP

AVERAGE BALANCES – SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited) 



Three months ended


(In thousands)

June 30, 2020


March 31, 2020


June 30, 2019

Interest-earning assets

Average Balance

Average Yield/Rate (1)


Average Balance

Average Yield/Rate (1)


Average Balance

Average Yield/Rate (1)

Loans (1)

$15,626,412

4.33%


$15,213,440

4.70%


$14,365,544

5.09%

Taxable investment securities 

1,268,661

1.71%


1,379,365

2.22%


1,441,005

2.36%

FHLB stock

17,434

4.95%


17,268

7.09%


17,250

6.93%

Deposits with banks

980,949

0.10%


311,024

1.23%


235,019

2.36%

Total interest-earning assets

$17,893,456

3.91%


$16,921,097

4.44%


$16,058,818

4.81%










Interest-bearing liabilities









Interest-bearing demand deposits

$  1,586,112

0.19%


$  1,388,597

0.21%


$  1,265,105

0.18%

Money market deposits

2,756,493

0.72%


2,437,997

1.15%


1,857,384

1.00%

Savings deposits

740,500

0.14%


733,372

0.18%


731,512

0.20%

Time deposits

7,616,446

1.63%


7,495,619

1.89%


7,570,131

2.09%

Total interest-bearing deposits

$12,699,551

1.16%


$12,055,585

1.44%


$11,424,132

1.58%

Other borrowed funds

412,953

1.33%


392,029

1.89%


353,799

2.25%

Long-term debt

119,136

4.86%


119,136

4.86%


169,761

4.74%

Total interest-bearing liabilities

13,231,640

1.20%


12,566,750

1.49%


11,947,692

1.65%










Non-interest-bearing demand deposits

3,101,265



2,863,889



2,789,644











Total deposits and other borrowed funds

$16,332,905



$15,430,639



$14,737,336











Total average assets

$18,930,651



$18,003,041



$17,157,578


Total average equity

$  2,346,775



$  2,320,283



$  2,184,251












Six months ended




(In thousands)

June 30, 2020


June 30, 2019




Interest-earning assets

Average Balance

Average Yield/Rate (1)


Average Balance

Average Yield/Rate (1)




Loans (1)

$15,419,926

4.51%


$14,227,782

5.11%




Taxable investment securities 

1,324,013

1.98%


1,356,001

2.34%




FHLB stock

17,352

6.02%


17,277

7.03%




Deposits with banks

645,986

0.37%


275,044

2.40%




Total interest-earning assets

$17,407,277

4.17%


$15,876,104

4.83%













Interest-bearing liabilities









Interest-bearing demand deposits

$  1,487,354

0.20%


$  1,286,985

0.19%




Money market deposits

2,597,245

0.92%


1,886,048

0.97%




Savings deposits

736,936

0.16%


724,492

0.20%




Time deposits

7,556,033

1.76%


7,318,590

2.03%




Total interest-bearing deposits

$12,377,568

1.30%


$11,216,115

1.52%




Other borrowed funds

402,491

1.60%


407,622

2.37%




Long-term debt

119,136

4.86%


176,401

4.73%




Total interest-bearing liabilities

12,899,195

1.34%


11,800,138

1.60%













Non-interest-bearing demand deposits

2,982,577



2,782,633





Total deposits and other borrowed funds

$15,881,772



$14,582,771














Total average assets

$18,466,846



$16,985,370





Total average equity

$  2,333,529



$  2,167,812






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

 

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SOURCE Cathay General Bancorp