LOS ANGELES, July 19, 2017 /PRNewswire/ -- Cathay General Bancorp (the "Company", NASDAQ: CATY), the holding company for Cathay Bank, today announced net income of $51.4 million, or $0.64 per share, for the second quarter of 2017.
FINANCIAL PERFORMANCE
Three months ended |
|||||
June 30, 2017 |
March 31, 2017 |
June 30, 2016 |
|||
Net income |
$51.4 million |
$48.9 million |
$34.8 million |
||
Basic earnings per common share |
$0.64 |
$0.61 |
$0.44 |
||
Diluted earnings per common share |
$0.64 |
$0.61 |
$0.44 |
||
Return on average assets |
1.48% |
1.42% |
1.07% |
||
Return on average total stockholders' equity |
10.96% |
10.73% |
8.00% |
||
Efficiency ratio |
45.88% |
43.66% |
62.15% |
SECOND QUARTER HIGHLIGHTS
- Diluted earnings per share increased 46% to $0.64 per share for the second quarter of 2017 compared to $0.44 per share for the same quarter a year ago.
- Total loans increased $206 million, or 7% annualized, to $11.6 billion for the quarter.
"For the second quarter of 2017, our total loans increased $206 million or 7% annualized to $11.6 billion, despite a large number of commercial real estate loan payoffs. Also, our net interest margin increased to 3.63% during the second quarter compared to 3.49% in the first quarter of 2017 as a result of higher interest rates," commented Pin Tai, Chief Executive Officer and President of the Company.
"We are pleased to complete the acquisition of SinoPac Bancorp, the parent of Far East National Bank. Subsequent to the acquisition, on July 17, 2017, SinoPac Bancorp merged with and into Cathay General Bancorp. Far East National Bank will continue as a direct subsidiary of Cathay General Bancorp and operate independent of Cathay Bank until further regulatory approval is obtained to merge Far East National Bank into Cathay Bank," added Dunson Cheng, Executive Chairman of the Board of the Company.
SECOND QUARTER INCOME STATEMENT REVIEW
Net income for the quarter ended June 30, 2017, was $51.4 million, an increase of $16.6 million, or 47.6%, compared to net income of $34.8 million for the same quarter a year ago. Diluted earnings per share for the quarter ended June 30, 2017, was $0.64 compared to $0.44 for the same quarter a year ago.
Return on average stockholders' equity was 10.96% and return on average assets was 1.48% for the quarter ended June 30, 2017, compared to a return on average stockholders' equity of 8.00% and a return on average assets of 1.07% for the same quarter a year ago.
Net interest income before provision for credit losses
Net interest income before provision for credit losses increased $15.6 million, or 15.3%, to $117.4 million during the second quarter of 2017 compared to $101.8 million during the same quarter a year ago. The increase was due primarily to an increase in interest income from loans and a decrease in interest expense from securities sold under agreements to repurchase.
The net interest margin was 3.63% for the second quarter of 2017 compared to 3.38% for the second quarter of 2016 and 3.49% for the first quarter of 2017.
For the second quarter of 2017, the yield on average interest-earning assets was 4.19%, the cost of funds on average interest-bearing liabilities was 0.78%, and the cost of interest-bearing deposits was 0.68%. In comparison, for the second quarter of 2016, the yield on average interest-earning assets was 4.05%, the cost of funds on average interest-bearing liabilities was 0.89%, and the cost of average interest-bearing deposits was 0.70%. The increase in the yield on average interest earning assets was a result of higher interest rates, interest income collected from nonaccrual loans and loan prepayment penalties. The net interest spread, defined as the difference between the yield on average interest-earning assets and the cost of funds on average interest-bearing liabilities, was 3.41% for the quarter ended June 30, 2017, compared to 3.16% for the same quarter a year ago.
Provision/(reversal) for credit losses
The provision for credit losses was zero for the second quarter of 2017 compared to a reversal of $5.2 million for the second quarter of 2016. The provision/(reversal) for credit losses was based on a review of the appropriateness of the allowance for loan losses at June 30, 2017. The following table summarizes the charge-offs and recoveries for the periods indicated:
Three months ended |
Six months ended June 30, |
||||||||
June 30, 2017 |
March 31, 2017 |
June 30, 2016 |
2017 |
2016 |
|||||
(In thousands) |
|||||||||
Charge-offs: |
|||||||||
Commercial loans |
$ 526 |
$ 1,204 |
$ 6,688 |
$ 1,730 |
$ 8,757 |
||||
Real estate loans (1) |
- |
555 |
945 |
555 |
1,204 |
||||
Total charge-offs |
526 |
1,759 |
7,633 |
2,285 |
9,961 |
||||
Recoveries: |
|||||||||
Commercial loans |
335 |
491 |
727 |
826 |
1,714 |
||||
Construction loans |
47 |
49 |
47 |
96 |
7,323 |
||||
Real estate loans(1) |
410 |
296 |
405 |
706 |
560 |
||||
Total recoveries |
792 |
836 |
1,179 |
1,628 |
9,597 |
||||
Net (recoveries)/charge-offs |
$ (266) |
$ 923 |
$ 6,454 |
$ 657 |
$ 364 |
(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 $6.2 million for the second quarter of 2017, a decrease of $2.9 million, or 32.1%, compared to $9.1 million for the second quarter of 2016, primarily because of securities gains of $1.7 million recorded in the second quarter of 2016.
Non-interest expense
Non-interest expense decreased $12.2 million, or 17.7%, to $56.7 million in the second quarter of 2017 compared to $68.9 million in the same quarter a year ago. For the second quarter of 2017, amortization of investments in affordable housing and alternative energy partnerships decreased $21.2 million, which was offset by a $4.6 million increase in salary and employee benefit expenses and a $2.8 million increase in other operating expense when compared to the same quarter a year ago. The efficiency ratio was 45.9% in the second quarter of 2017 compared to 62.2% for the same quarter a year ago.
Income taxes
The effective tax rate for the second quarter of 2017 was 23.1% compared to 26.1% for the second quarter of 2016. The effective tax rate includes the impact of low income housing tax credits and an alternative energy tax credit investment made in the second quarter. Income tax expense for the first quarter of 2017 was also reduced by $2.6 million in benefits from the distribution of restricted stock units and exercises of stock options.
BALANCE SHEET REVIEW
Gross loans, excluding loans held for sale, were $11.6 billion at June 30, 2017, an increase of $370 million, or 3.3%, from $11.2 billion at December 31, 2016. The increase was primarily due to increases of $312.0 million, or 12.8%, in residential mortgage loans, and $98.5 million, or 1.7%, in commercial mortgage loans partially offset by decreases of $32.2 million, or 1.4%, in commercial loans. The loan balances and composition at June 30, 2017, compared to December 31, 2016, and to June 30, 2016, are presented below:
June 30, 2017 |
December 31, 2016 |
June 30, 2016 |
|||
(In thousands) |
|||||
Commercial loans |
$ 2,215,960 |
$ 2,248,187 |
$ 2,188,047 |
||
Residential mortgage loans |
2,756,055 |
2,444,048 |
2,146,895 |
||
Commercial mortgage loans |
5,883,770 |
5,785,248 |
5,531,186 |
||
Equity lines |
162,153 |
171,711 |
171,972 |
||
Real estate construction loans |
547,737 |
548,088 |
481,820 |
||
Installment & other loans |
5,557 |
3,993 |
3,180 |
||
Gross loans |
$ 11,571,232 |
$ 11,201,275 |
$ 10,523,100 |
||
Allowance for loan losses |
(115,809) |
(118,966) |
(122,948) |
||
Unamortized deferred loan fees |
(3,788) |
(4,994) |
(6,679) |
||
Total loans, net |
$ 11,451,635 |
$ 11,077,315 |
$ 10,393,473 |
||
Loans held for sale |
$ - |
$ 7,500 |
$ 2,925 |
Total deposits were $11.5 billion at June 30, 2017, a decrease of $211 million, or 1.8%, from $11.7 billion at December 31, 2016, and an increase of $1.0 billion, or 9.5%, from $10.5 billion at June 30, 2016. The deposit balances and composition at June 30, 2017, compared to December 31, 2016, and to June 30, 2016, are presented below:
June 30, 2017 |
December 31, 2016 |
June 30, 2016 |
|||
(In thousands) |
|||||
Non-interest-bearing demand deposits |
$ 2,436,820 |
$ 2,478,107 |
$ 2,188,072 |
||
NOW deposits |
1,273,066 |
1,230,445 |
1,018,388 |
||
Money market deposits |
2,267,392 |
2,198,938 |
2,066,349 |
||
Savings deposits |
884,238 |
719,949 |
620,094 |
||
Time deposits |
4,601,801 |
5,047,287 |
4,578,200 |
||
Total deposits |
$ 11,463,317 |
$ 11,674,726 |
$ 10,471,103 |
ASSET QUALITY REVIEW
At June 30, 2017, total non-accrual loans were $64.0 million, an increase of $14.3 million, or 28.9%, resulting from several construction and commercial real estate loans placed on nonaccrual, from $49.7 million at December 31, 2016, and an increase of $10.9 million, or 20.5%, from $53.1 million at June 30, 2016.
The allowance for loan losses was $115.8 million and the allowance for off-balance sheet unfunded credit commitments was $4.5 million at June 30, 2017, which represented the amount believed by management to be appropriate to absorb credit losses inherent in the loan portfolio, including unfunded commitments. The $115.8 million allowance for loan losses at June 30, 2017, decreased $3.2 million, or 2.7%, from $119.0 million at December 31, 2016. The allowance for loan losses represented 1.00% of period-end gross loans, excluding loans held for sale, and 179.4% of non-performing loans at June 30, 2017. The comparable ratios were 1.06% of period-end gross loans, excluding loans held for sale, and 239.5% of non-performing loans at December 31, 2016. The changes in non-performing assets and troubled debt restructurings at June 30, 2017, compared to December 31, 2016, and to June 30, 2016, are highlighted below:
(Dollars in thousands) |
June 30, 2017 |
December 31, 2016 |
% Change |
June 30, 2016 |
% Change |
||||
Non-performing assets |
|||||||||
Accruing loans past due 90 days or more |
$ 495 |
$ - |
100 |
$ - |
100 |
||||
Non-accrual loans: |
|||||||||
Construction loans |
16,585 |
5,458 |
204 |
6,081 |
173 |
||||
Commercial mortgage loans |
27,448 |
20,078 |
37 |
30,725 |
(11) |
||||
Commercial loans |
13,064 |
15,710 |
(17) |
8,251 |
58 |
||||
Residential mortgage loans |
6,947 |
8,436 |
(18) |
8,081 |
(14) |
||||
Total non-accrual loans: |
$ 64,044 |
$ 49,682 |
29 |
$ 53,138 |
21 |
||||
Total non-performing loans |
64,539 |
49,682 |
30 |
53,138 |
21 |
||||
Other real estate owned |
19,230 |
20,070 |
(4) |
26,417 |
(27) |
||||
Total non-performing assets |
$ 83,769 |
$ 69,752 |
20 |
$ 79,555 |
5 |
||||
Accruing troubled debt restructurings (TDRs) |
$ 79,819 |
$ 65,393 |
22 |
$ 74,708 |
7 |
||||
Non-accrual loans held for sale |
$ - |
$ 7,500 |
(100) |
$ 2,925 |
(100) |
||||
Allowance for loan losses |
$ 115,809 |
$ 118,966 |
(3) |
$ 122,948 |
(6) |
||||
Total gross loans outstanding, at period-end (1) |
$ 11,571,232 |
$ 11,201,275 |
3 |
$ 10,523,100 |
10 |
||||
Allowance for loan losses to non-performing loans, at period-end (2) |
179.44% |
239.45% |
231.37% |
||||||
Allowance for loan losses to gross loans, at period-end (1) |
1.00% |
1.06% |
1.17% |
(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, excluding non-accrual loans held for sale, to total assets was 0.6% at June 30, 2017, compared to 0.5% at December 31, 2016. Total non-performing assets increased $14.0 million, or 20.1%, to $83.8 million at June 30, 2017, compared to $69.8 million at December 31, 2016, primarily due to an increase of $14.4 million, or 28.9%, in non-accrual loans offset by a decrease of $840 thousand, or 4.2%, in other real estate owned.
CAPITAL ADEQUACY REVIEW
At June 30, 2017, the Company's common equity Tier 1 capital ratio of 13.26%, Tier 1 risk-based capital ratio of 14.27%, total risk-based capital ratio of 15.35%, and Tier 1 leverage capital ratio of 12.08%, 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 common equity tier 1 capital ratio equal to or greater than 6.5%, 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, 2016, the Company's common equity Tier 1 capital ratio was 12.84%, Tier 1 risk-based capital ratio was 13.85%, total risk-based capital ratio was 14.97%, and Tier 1 leverage capital ratio was 11.57%.
YEAR-TO-DATE REVIEW
Net income for the six months ended June 30, 2017, was $100.4 million, an increase of $19.4 million, or 23.9%, compared to net income of $81.0 million for the same period a year ago. Diluted earnings per share was $1.25 compared to $1.01 per share for the same period a year ago. The net interest margin for the six months ended June 30, 2017, was 3.56% compared to 3.40% for the same period a year ago.
Return on average stockholders' equity was 10.84% and return on average assets was 1.45% for the six months ended June 30, 2017, compared to a return on average stockholders' equity of 9.33% and a return on average assets of 1.25% for the same period of 2016. The efficiency ratio for the six months ended June 30, 2017, was 44.79% compared to 54.57% for the same period a year ago.
CONFERENCE CALL
Cathay General Bancorp will host a conference call this afternoon to discuss its second quarter 2017 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 50675285. 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 and Far East National Bank, a U.S. federally chartered bank. Founded in 1962, Cathay Bank offers a wide range of financial services. Cathay Bank currently operates 34 branches in California, 12 branches in New York State, three in the Chicago, Illinois area, three in Washington State, two in Texas, one in Maryland, one in Massachusetts, one in Nevada, one in New Jersey, one in Hong Kong, and a representative office in Taipei and in Shanghai. Cathay Bank's website is found at www.cathaybank.com. Founded in 1974, Far East National Bank offers a wide range of financial services. Far East National Bank operates nine branches in California, and a representative office in Beijing. Far East National Bank's website is found at www.fareastnationalbank.com. Information set forth on such websites are 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; 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 realize the anticipated benefits of our acquisitions, including the recent acquisition of SinoPac Bancorp and Far East National Bank; the risk that integration of SinoPac Bancorp's and Far East National Bank's operations with those of the Company and Cathay Bank will be materially delayed or will be more costly or difficult than expected; the diversion of management's attention from ongoing business operations and opportunities; the challenges of integrating and retaining key employees; 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, 2016 (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 |
Six months ended June 30, |
|||||||||
(Dollars in thousands, except per share data) |
June 30, 2017 |
March 31, 2017 |
June 30, 2016 |
2017 |
2016 |
|||||
FINANCIAL PERFORMANCE |
||||||||||
Net interest income before provision for credit losses |
$ 117,352 |
$ 112,114 |
$ 101,776 |
$229,466 |
$ 204,144 |
|||||
Reversal for credit losses |
- |
(2,500) |
(5,150) |
(2,500) |
(15,650) |
|||||
Net interest income after reversal for credit losses |
117,352 |
114,614 |
106,926 |
231,966 |
219,794 |
|||||
Non-interest income |
6,152 |
6,718 |
9,057 |
12,870 |
16,598 |
|||||
Non-interest expense |
56,658 |
51,886 |
68,879 |
108,544 |
120,450 |
|||||
Income before income tax expense |
66,846 |
69,446 |
47,104 |
136,292 |
115,942 |
|||||
Income tax expense |
15,431 |
20,505 |
12,273 |
35,936 |
34,948 |
|||||
Net income |
$ 51,415 |
$ 48,941 |
$ 34,831 |
100,356 |
80,994 |
|||||
Net income per common share |
||||||||||
Basic |
$ 0.64 |
$ 0.61 |
$ 0.44 |
$ 1.26 |
$ 1.02 |
|||||
Diluted |
$ 0.64 |
$ 0.61 |
$ 0.44 |
$ 1.25 |
$ 1.01 |
|||||
Cash dividends paid per common share |
$ 0.21 |
$ 0.21 |
$ 0.18 |
$ 0.42 |
$ 0.36 |
|||||
SELECTED RATIOS |
||||||||||
Return on average assets |
1.48% |
1.42% |
1.07% |
1.45% |
1.25% |
|||||
Return on average total stockholders' equity |
10.96% |
10.73% |
8.00% |
10.84% |
9.33% |
|||||
Efficiency ratio |
45.88% |
43.66% |
62.15% |
44.79% |
54.57% |
|||||
Dividend payout ratio |
32.61% |
34.24% |
40.75% |
33.40% |
35.03% |
|||||
YIELD ANALYSIS (Fully taxable equivalent) |
||||||||||
Total interest-earning assets |
4.19% |
4.07% |
4.05% |
4.13% |
4.07% |
|||||
Total interest-bearing liabilities |
0.78% |
0.80% |
0.89% |
0.79% |
0.89% |
|||||
Net interest spread |
3.41% |
3.27% |
3.16% |
3.34% |
3.18% |
|||||
Net interest margin |
3.63% |
3.49% |
3.38% |
3.56% |
3.40% |
|||||
CAPITAL RATIOS |
June 30, 2017 |
December 31, 2016 |
June 30, 2016 |
|||||||
Common Equity Tier 1 capital ratio |
13.26% |
12.84% |
12.73% |
|||||||
Tier 1 risk-based capital ratio |
14.27% |
13.85% |
13.79% |
|||||||
Total risk-based capital ratio |
15.35% |
14.97% |
14.97% |
|||||||
Tier 1 leverage capital ratio |
12.08% |
11.57% |
11.80% |
|||||||
. |
CATHAY GENERAL BANCORP |
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(Unaudited) |
||||||
(In thousands, except share and per share data) |
June 30, 2017 |
December 31, 2016 |
June 30, 2016 |
|||
Assets |
||||||
Cash and due from banks |
$ 160,517 |
$ 218,017 |
$ 229,411 |
|||
Short-term investments and interest bearing deposits |
393,895 |
967,067 |
706,927 |
|||
Securities available-for-sale (amortized cost of $1,366,624 at June 30, 2017, $1,317,012 at December 31, 2016, and $1,227,169 at June 30, 2016) |
1,368,351 |
1,314,345 |
1,241,904 |
|||
Loans held for sale |
- |
7,500 |
2,925 |
|||
Loans |
11,571,232 |
11,201,275 |
10,523,100 |
|||
Less: Allowance for loan losses |
(115,809) |
(118,966) |
(122,948) |
|||
Unamortized deferred loan fees, net |
(3,788) |
(4,994) |
(6,679) |
|||
Loans, net |
11,451,635 |
11,077,315 |
10,393,473 |
|||
Federal Home Loan Bank stock |
17,250 |
17,250 |
17,250 |
|||
Other real estate owned, net |
19,230 |
20,070 |
26,417 |
|||
Affordable housing investments and alternative energy partnerships, net |
288,902 |
251,077 |
199,210 |
|||
Premises and equipment, net |
104,131 |
105,607 |
107,236 |
|||
Customers' liability on acceptances |
9,897 |
12,182 |
26,096 |
|||
Accrued interest receivable |
36,836 |
37,299 |
30,941 |
|||
Goodwill |
372,189 |
372,189 |
372,189 |
|||
Other intangible assets, net |
2,537 |
2,949 |
3,310 |
|||
Other assets |
111,415 |
117,902 |
135,888 |
|||
Total assets |
$ 14,336,785 |
$ 14,520,769 |
$ 13,493,177 |
|||
Liabilities and Stockholders' Equity |
||||||
Deposits |
||||||
Non-interest-bearing demand deposits |
$ 2,436,820 |
$ 2,478,107 |
$ 2,188,072 |
|||
Interest-bearing deposits: |
||||||
NOW deposits |
1,273,066 |
1,230,445 |
1,018,388 |
|||
Money market deposits |
2,267,392 |
2,198,938 |
2,066,349 |
|||
Savings deposits |
884,238 |
719,949 |
620,094 |
|||
Time deposits |
4,601,801 |
5,047,287 |
4,578,200 |
|||
Total deposits |
11,463,317 |
11,674,726 |
10,471,103 |
|||
Securities sold under agreements to repurchase |
150,000 |
350,000 |
400,000 |
|||
Advances from the Federal Home Loan Bank |
475,000 |
350,000 |
555,000 |
|||
Other borrowings for affordable housing investments |
17,564 |
17,662 |
17,748 |
|||
Long-term debt |
119,136 |
119,136 |
119,136 |
|||
Acceptances outstanding |
9,897 |
12,182 |
26,096 |
|||
Other liabilities |
204,105 |
168,524 |
145,039 |
|||
Total liabilities |
12,439,019 |
12,692,230 |
11,734,122 |
|||
Commitments and contingencies |
- |
- |
- |
|||
Stockholders' Equity |
||||||
Common stock, $0.01 par value, 100,000,000 shares authorized, 88,072,997 issued and 79,862,354 outstanding at June 30, 2017, 87,820,920 issued and 79,610,277 outstanding at December 31, 2016, and 87,072,749 issued and 78,862,106 outstanding at June 30, 2016 |
881 |
878 |
871 |
|||
Additional paid-in-capital |
895,578 |
895,480 |
884,352 |
|||
Accumulated other comprehensive income/(loss), net |
(1,420) |
(3,715) |
1,142 |
|||
Retained earnings |
1,242,316 |
1,175,485 |
1,112,279 |
|||
Treasury stock, at cost (8,210,643 shares at June 30, 2017, at December 31, 2016, and at June 30, 2016) |
(239,589) |
(239,589) |
(239,589) |
|||
Total equity |
1,897,766 |
1,828,539 |
1,759,055 |
|||
Total liabilities and equity |
$ 14,336,785 |
$ 14,520,769 |
$ 13,493,177 |
|||
Book value per common share |
$ 23.64 |
$ 22.80 |
$ 22.15 |
|||
Number of common shares outstanding |
79,862,354 |
79,610,277 |
78,862,106 |
CATHAY GENERAL BANCORP |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
(Unaudited) |
|||||||
Three months ended |
Six months ended June 30, |
||||||
June 30, 2017 |
March 31, 2017 |
June 30, 2016 |
2017 |
2016 |
|||
(In thousands, except share and per share data) |
|||||||
INTEREST AND DIVIDEND INCOME |
|||||||
Loan receivable, including loan fees |
$ 129,836 |
$ 124,910 |
$ 115,822 |
$ 254,746 |
$ 230,712 |
||
Investment securities |
4,719 |
4,406 |
5,265 |
9,125 |
12,124 |
||
Federal Home Loan Bank stock |
298 |
412 |
382 |
710 |
729 |
||
Deposits with banks |
776 |
1,076 |
433 |
1,852 |
682 |
||
Total interest and dividend income |
135,629 |
130,804 |
121,902 |
266,433 |
244,247 |
||
INTEREST EXPENSE |
|||||||
Time deposits |
10,769 |
10,982 |
10,619 |
21,751 |
21,476 |
||
Other deposits |
4,698 |
4,446 |
3,931 |
9,144 |
7,571 |
||
Securities sold under agreements to repurchase |
1,065 |
1,550 |
3,934 |
2,615 |
7,868 |
||
Advances from Federal Home Loan Bank |
305 |
288 |
202 |
593 |
308 |
||
Long-term debt |
1,440 |
1,424 |
1,440 |
2,864 |
2,880 |
||
Total interest expense |
18,277 |
18,690 |
20,126 |
36,967 |
40,103 |
||
Net interest income before reversal for credit losses |
117,352 |
112,114 |
101,776 |
229,466 |
204,144 |
||
Reversal for credit losses |
- |
(2,500) |
(5,150) |
(2,500) |
(15,650) |
||
Net interest income after reversal for credit losses |
117,352 |
114,614 |
106,926 |
231,966 |
219,794 |
||
NON-INTEREST INCOME |
|||||||
Securities (losses)/gains, net |
3 |
(466) |
1,655 |
(463) |
1,449 |
||
Letters of credit commissions |
1,193 |
1,123 |
1,205 |
2,316 |
2,486 |
||
Depository service fees |
1,344 |
1,508 |
1,385 |
2,852 |
2,708 |
||
Other operating income |
3,612 |
4,553 |
4,812 |
8,165 |
9,955 |
||
Total non-interest income |
6,152 |
6,718 |
9,057 |
12,870 |
16,598 |
||
NON-INTEREST EXPENSE |
|||||||
Salaries and employee benefits |
26,145 |
25,871 |
21,501 |
52,016 |
48,432 |
||
Occupancy expense |
4,722 |
4,699 |
4,484 |
9,421 |
8,853 |
||
Computer and equipment expense |
2,528 |
2,724 |
2,443 |
5,252 |
5,023 |
||
Professional services expense |
5,343 |
4,256 |
4,614 |
9,599 |
8,982 |
||
Data processing service expense |
2,396 |
2,532 |
2,027 |
4,928 |
4,277 |
||
FDIC and State assessments |
2,189 |
2,520 |
2,763 |
4,709 |
5,352 |
||
Marketing expense |
1,859 |
871 |
1,002 |
2,730 |
1,798 |
||
Other real estate owned expense |
317 |
61 |
493 |
378 |
788 |
||
Amortization of investments in low income housing and alternative energy partnerships |
6,224 |
4,850 |
27,400 |
11,074 |
30,194 |
||
Amortization of core deposit intangibles |
173 |
172 |
173 |
345 |
345 |
||
Other operating expense |
4,762 |
3,330 |
1,979 |
8,092 |
6,406 |
||
Total non-interest expense |
56,658 |
51,886 |
68,879 |
108,544 |
120,450 |
||
Income before income tax expense |
66,846 |
69,446 |
47,104 |
136,292 |
115,942 |
||
Income tax expense |
15,431 |
20,505 |
12,273 |
35,936 |
34,948 |
||
Net income |
$ 51,415 |
$ 48,941 |
$ 34,831 |
100,356 |
80,994 |
||
Net income per common share: |
|||||||
Basic |
$ 0.64 |
$ 0.61 |
$ 0.44 |
$ 1.26 |
$ 1.02 |
||
Diluted |
$ 0.64 |
$ 0.61 |
$ 0.44 |
$ 1.25 |
$ 1.01 |
||
Cash dividends paid per common share |
$ 0.21 |
$ 0.21 |
$ 0.18 |
$ 0.42 |
$ 0.36 |
||
Basic average common shares outstanding |
79,840,188 |
79,703,593 |
78,846,237 |
79,772,268 |
79,290,378 |
||
Diluted average common shares outstanding |
80,562,607 |
80,413,178 |
79,619,883 |
80,488,305 |
80,006,866 |
CATHAY GENERAL BANCORP |
||||||||
AVERAGE BALANCES – SELECTED CONSOLIDATED FINANCIAL INFORMATION |
||||||||
(Unaudited) |
||||||||
Three months ended |
||||||||
(In thousands) |
June 30, 2017 |
March 31, 2017 |
June 30, 2016 |
|||||
Interest-earning assets |
Average Balance |
Average |
Average Balance |
Average |
Average Balance |
Average |
||
Loans (1) |
$ 11,388,056 |
4.57% |
$ 11,289,364 |
4.49% |
$ 10,441,941 |
4.46% |
||
Taxable investment securities |
1,260,646 |
1.50% |
1,234,071 |
1.45% |
1,293,490 |
1.64% |
||
FHLB stock |
17,250 |
6.93% |
17,250 |
9.69% |
17,250 |
8.91% |
||
Deposits with banks |
302,224 |
1.03% |
486,045 |
0.90% |
358,944 |
0.49% |
||
Total interest-earning assets |
$ 12,968,176 |
4.19% |
$ 13,026,730 |
4.07% |
$ 12,111,625 |
4.05% |
||
Interest-bearing liabilities |
||||||||
Interest-bearing demand deposits |
$ 1,260,574 |
0.17% |
$ 1,237,398 |
0.17% |
$ 1,013,028 |
0.17% |
||
Money market deposits |
2,304,586 |
0.66% |
2,276,057 |
0.65% |
2,017,867 |
0.65% |
||
Savings deposits |
794,450 |
0.20% |
713,198 |
0.16% |
630,042 |
0.17% |
||
Time deposits |
4,722,920 |
0.91% |
4,857,876 |
0.92% |
4,707,847 |
0.91% |
||
Total interest-bearing deposits |
$ 9,082,530 |
0.68% |
$ 9,084,529 |
0.69% |
$ 8,368,784 |
0.70% |
||
Securities sold under agreements to repurchase |
150,000 |
2.85% |
189,444 |
3.32% |
400,000 |
3.96% |
||
Other borrowed funds |
103,538 |
1.18% |
101,546 |
1.15% |
166,191 |
0.49% |
||
Long-term debt |
119,136 |
4.85% |
119,136 |
4.85% |
119,136 |
4.86% |
||
Total interest-bearing liabilities |
9,455,204 |
0.78% |
9,494,655 |
0.80% |
9,054,111 |
0.89% |
||
Non-interest-bearing demand deposits |
2,440,181 |
2,471,165 |
2,106,062 |
|||||
Total deposits and other borrowed funds |
$ 11,895,385 |
$ 11,965,820 |
$ 11,160,173 |
|||||
Total average assets |
$ 13,964,206 |
$ 13,997,964 |
$ 13,090,024 |
|||||
Total average equity |
$ 1,882,454 |
$ 1,850,254 |
$ 1,750,936 |
|||||
Six months ended, |
||||||||
(In thousands) |
June 30, 2017 |
June 30, 2016 |
||||||
Interest-earning assets |
Average Balance |
Average |
Average Balance |
Average |
||||
Loans (1) |
$ 11,338,983 |
4.53% |
$ 10,366,256 |
4.48% |
||||
Taxable investment securities |
1,247,432 |
1.48% |
1,424,671 |
1.71% |
||||
FHLB stock |
17,250 |
8.30% |
17,250 |
8.50% |
||||
Deposits with banks |
393,627 |
0.95% |
261,771 |
0.52% |
||||
Total interest-earning assets |
$ 12,997,292 |
4.13% |
$ 12,069,948 |
4.07% |
||||
Interest-bearing liabilities |
||||||||
Interest-bearing demand deposits |
$ 1,249,050 |
0.17% |
$ 989,404 |
0.17% |
||||
Money market deposits |
2,290,400 |
0.65% |
1,971,638 |
0.64% |
||||
Savings deposits |
754,049 |
0.18% |
625,335 |
0.16% |
||||
Time deposits |
4,790,025 |
0.92% |
4,804,167 |
0.90% |
||||
Total interest-bearing deposits |
$ 9,083,524 |
0.69% |
$ 8,390,544 |
0.70% |
||||
Securities sold under agreements to repurchase |
169,613 |
3.11% |
400,000 |
3.96% |
||||
Other borrowed funds |
102,547 |
1.17% |
125,488 |
0.49% |
||||
Long-term debt |
119,136 |
4.85% |
119,136 |
4.86% |
||||
Total interest-bearing liabilities |
9,474,820 |
0.79% |
9,035,168 |
0.89% |
||||
Non-interest-bearing demand deposits |
2,455,587 |
2,069,878 |
||||||
Total deposits and other borrowed funds |
$ 11,930,407 |
$ 11,105,046 |
||||||
Total average assets |
$ 13,980,991 |
$ 13,031,297 |
||||||
Total average equity |
$ 1,866,443 |
$ 1,746,339 |
||||||
(1) Yields and interest earned include net loan fees. Non-accrual loans are included in the average balance. |
SOURCE Cathay General Bancorp
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article