Cathay General Bancorp Announces First Quarter 2021 Results

LOS ANGELES, April 26, 2021 /PRNewswire/ — Cathay General Bancorp (the «Company», «we», «us», or «our») (Nasdaq: CATY), the holding…

LOS ANGELES, April 26, 2021 /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 March 31, 2021.  The Company reported net income of $73.4 million, or $0.92 per share, for the first quarter of 2021.

FINANCIAL PERFORMANCE



Three months ended

(unaudited)

March 31, 2021


December 31, 2020


March 31, 2020

Net income

$73.4 million


$70.9 million


$46.9 million

Basic earnings per common share

$0.92


$0.89


$0.59

Diluted earnings per common share

$0.92


$0.89


$0.59

Return on average assets

1.57%


1.50%


1.05%

Return on average total stockholders’ equity

12.23%


11.75%


8.12%

Efficiency ratio

47.03%


49.61%


44.60%







FIRST QUARTER HIGHLIGHTS

  • The net interest margin increased to 3.20% in the first quarter of 2021 from 3.12% in the fourth quarter of 2020.
  • There was a reversal of provisions for credit losses of $13.6 million in the first quarter of 2021 compared to a reversal for loan losses of $5.0 million for the fourth quarter of 2020.

«For the first quarter of 2021, our net interest margin was 3.20%, increasing 8 basis points from the fourth quarter of 2020.   Also, there was a reversal of provisions for credit losses of $13.6 million in the first quarter of 2021 primarily due to the improved macroeconomic conditions,» commented Chang M. Liu, President and Chief Executive Officer of the Company.

FIRST QUARTER INCOME STATEMENT REVIEW

Net income for the quarter ended March 31, 2021, was $73.4 million, an increase of $26.5 million, or 56.5%, compared to net income of $46.9 million for the same quarter a year ago.  Diluted earnings per share for the quarter ended March 31, 2021, was $0.92 per share compared to $0.59 per share for the same quarter a year ago.

Return on average stockholders’ equity was 12.23% and return on average assets was 1.57% for the quarter ended March 31, 2021, compared to a return on average stockholders’ equity of 8.12% and a return on average assets of 1.05% for the same quarter a year ago.

Net interest income before provision for credit losses

Net interest income before provision for credit losses increased $1.5 million, or 1.1%, to $141.8 million during the first quarter of 2021, compared to $140.3 million during the same quarter a year ago.  The increase was due primarily to a decrease in interest expense from deposits, offset, in part, by a decrease in interest income from loans and securities.

The net interest margin was 3.20% for the first quarter of 2021 compared to 3.34% for the first quarter of 2020 and 3.12% for the fourth quarter of 2020.

For the first quarter of 2021, the yield on average interest-earning assets was 3.68%, the cost of funds on average interest-bearing liabilities was 0.67%, and the cost of interest-bearing deposits was 0.63%.  In comparison, for the first quarter of 2020, the yield on average interest-earning assets was 4.44%, the cost of funds on average interest-bearing liabilities was 1.49%, and the cost of interest-bearing deposits was 1.44%. The decrease in the yield on average interest-earning assets resulted mainly from lower lending rates.  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 3.01% for the quarter ended March 31, 2021, compared to 2.95% for the same quarter a year ago.

(Reversal)/provision for credit losses

As permitted under the Coronavirus, Aid, Relief and Economic Security Act (the «CARES Act») and as extended by the Consolidated Appropriations Act, 2021, the Company adopted the Current Expected Credit Losses («CECL») methodology for estimated credit losses effective as of January 1, 2021. The adoption of CECL under a modified retrospective approach as of January 1, 2021 increased the allowance for loan losses by $13.9 million and allowance for unfunded credit commitments by $0.5 million and an after-tax decrease to opening retained earnings of $10.2 million.  As of March 31, 2021, the allowance for loan losses decreased $19.9 million to $160.6 million, or 1.03% of gross loans, compared to $180.5 million, or 1.15% of gross loans, as of January 1, 2021.  The change in the allowance for loan losses included a $12.1 million reversal for loan losses for the first quarter of 2021, as a result of the improving macroeconomic conditions and $7.8 million in net charge-offs. In the first quarter of 2020, a provision for loan losses of $25.0 million was recorded under the incurred loss method. The Company will continue to monitor the continuing impact of the COVID-19 pandemic on credit risks and losses, as well as on customer demand deposits and other liabilities and assets.  The following table sets forth the charge-offs and recoveries for the periods indicated:


Three months ended


March 31, 2021


December 31, 2020


March 31, 2020


(In thousands) (Unaudited)

Charge-offs:






  Commercial loans

$                          9,138


$                        8,613


$                          1,321

     Total charge-offs 

9,138


8,613


1,321

Recoveries:






  Commercial loans

1,269


912


1,208

  Real estate loans(1)

111


109


162

     Total recoveries

1,380


1,021


1,370

Net charge-offs/(recoveries)

$                          7,758


$                        7,592


$                             (49)


(1) Real estate loans include commercial mortgage loans, residential mortgage loans, and equity lines.

Allowance for credit losses

The following table presents a roll forward of the allowance for credit losses for the periods indicated:


Three Months Ended March 31, 2021


Three Months Ended December 31, 2020


Three Months Ended March 31, 2020

Allowance for Credit Losses Rollforward

Allowance

for Loan

Losses


Reserve for

Unfunded Loan

Commitments


Total

Allowance

for Credit

Losses


Allowance

for Loan

Losses


Reserve for

Unfunded

Loan

Commitments


Total

Allowance

for Credit

Losses


Allowance

for Loan

Losses


Reserve for

Unfunded

Loan

Commitments


Total

Allowance

for Credit

Losses



















Beginning Balance

$  166,538


$            5,880


$  172,418


$     179,131


$            5,663


$   184,794


$    123,224


$            3,855


$  127,079

Impact of ASU 2016-13 adoption

13,913


539


14,452







Balance, at January 1, 2021

180,451


6,419


186,870


179,131


5,663


184,794


123,224


3,855


127,079

(Reversal)/provision for credit losses

(12,110)


(1,448)


(13,558)


(5,000)


217


(4,783)


25,000


(842)


24,158

Charge-offs

(9,138)



(9,138)


(8,613)



(8,613)


(1,321)



(1,321)

Recoveries

1,380



1,380


1,020



1,020


1,370



1,370

Net (charge-offs)/recoveries

(7,758)



(7,758)


(7,593)



(7,593)


49



49

Ending Balance

$  160,583


$            4,971


$  165,554


$     166,538


$            5,880


$   172,418


$    148,273


$            3,013


$  151,286





































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 $10.0 million for the first quarter of 2021, an increase of $4.2 million, or 72.4%, compared to $5.8 million for the first quarter of 2020.  The increase was primarily due to a $3.4 million decrease in net losses from equity securities and a $0.8 million increase in gain from sale of securities, when compared to the same quarter a year ago.

Non-interest expense

Non-interest expense increased $6.2 million, or 9.5%, to $71.4 million in the first quarter of 2021 compared to $65.2 million in the same quarter a year ago.  The increase in non-interest expense in the first quarter of 2021 was primarily due to a decrease of $4.2 million in income from other real estate owned, an increase of $1.8 million in salaries and other employee benefits, an increase of $1.0 million in contributions to the Cathay Bank foundation, to combat anti-Asian American hate crimes, and an increase of $0.7 million in costs associated with debt redemption, offset, in part, by a decrease of $2.3 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 47.0% in the first quarter of 2021 compared to 44.6% for the same quarter a year ago.

Income taxes

The effective tax rate for the first quarter of 2021 was 21.9% compared to 16.3% for the first quarter of 2020. The effective tax rate includes the impact of alternative energy investments and low-income housing tax credits.

BALANCE SHEET REVIEW 

Gross loans were $15.7 billion as of March 31, 2021, an increase of $7.5 million, or 0.05%, from $15.6 billion as of December 31, 2020.  The increase was primarily due to an increase of $93.5 million in Paycheck Protection Program Loans, offset, in part, by a decrease of $43.2 million, or 1.0%, in residential mortgage loans and $39.7 million, or 1.5%, in commercial loans not including Paycheck Protection Program Loans.  During the first quarter of 2021, Cathay Bank funded 1,333 new PPP loans totaling $142.4 million. Loan fees recognized on PPP loans were $2.5 million in the first quarter of 2021 compared to $1.7 million in the fourth quarter of 2020.

The loan balances and composition as of March 31, 2021, compared to December 31, 2020 and March 31, 2020, are presented below:








March 31, 2021


December 31, 2020


March 31, 2020


(In thousands) (Unaudited)

Commercial loans

$                 2,556,247


$                 2,595,926


$                    2,973,078

Paycheck protection program loans

334,446


240,907


Residential mortgage loans

4,102,203


4,145,389


4,173,876

Commercial mortgage loans

7,549,522


7,555,027


7,422,585

Equity lines

428,318


424,555


385,317

Real estate construction loans

677,816


679,492


577,240

Installment and other loans

3,296


3,100


2,116

Gross loans

$               15,651,848


$               15,644,396


$                  15,534,212







Allowance for loan losses

(160,583)


(166,538)


(148,273)

Unamortized deferred loan fees

(6,872)


(2,494)


(277)

Total loans, net

$               15,484,393


$               15,475,364


$                  15,385,662







Total deposits were $16.4 billion as of March 31, 2021, an increase of $244.2 million, or 1.5%, from $16.1 billion as of December 31, 2020.  The increases in noninterest-bearing demand deposits, money market deposits and savings deposits resulted from higher liquidity maintained by our depositors during these uncertain times and improved money market deposit generation. The decreases in time deposits resulted primarily from the runoff of wholesale time deposits and migration of some maturing time deposits to money market deposits.  During the first quarter of 2021, our deposits excluding CD’s increased by $695.5 million, or 29.5% annualized.  The deposit balances and composition as of March 31, 2021, compared to December 31, 2020 and March 31, 2020, are presented below:


March 31, 2021


December 31, 2020


March 31, 2020


(In thousands) (Unaudited)

Non-interest-bearing demand deposits

$                 3,495,775


$                 3,365,086


$                 2,860,580

NOW deposits

1,915,822


1,926,135


1,514,434

Money market deposits

3,808,794


3,359,191


2,482,950

Savings deposits

911,210


785,672


710,602

Time deposits

6,222,032


6,673,317


7,521,584

Total deposits

$               16,353,633


$               16,109,401


$               15,090,150







ASSET QUALITY REVIEW

As of March 31, 2021, total non-accrual loans were $94.4 million, an increase of $26.7 million, or 39.5%, from $67.7 million as of December 31, 2020, and an increase of $40.7 million, or 75.8%, from $53.7 million as of March 31, 2020.  The increase from the fourth quarter was due primarily to an $18.8 million oil and gas commercial loan and a $10.1 million commercial mortgage loan placed on nonaccrual status during the first quarter of 2021.

The allowance for loan losses was $160.6 million and the allowance for off-balance sheet unfunded credit commitments was $5.0 million as of March 31, 2021.  The allowances represent the amount estimated by management to be appropriate to absorb credit losses inherent in the loan portfolio, including unfunded credit commitments.  The $160.6 million allowance for loan losses as of March 31, 2021, decreased $19.9 million, or 11.0%, from $180.5 million as of January 1, 2021.  The allowance for loan losses represented 1.03% of period-end gross loans, and 166.26% of non-performing loans as of March 31, 2021.  The comparable ratios were 1.06% of period-end gross loans, and 229.18% of non-performing loans as of December 31, 2020.  The changes in non-performing assets and troubled debt restructurings as of March 31, 2021, compared to December 31, 2020 and March 31, 2020, are presented below:

(Dollars in thousands) (Unaudited)

March 31, 2021


December 31, 2020


% Change


March 31, 2020


% Change

Non-performing assets










Accruing loans past due 90 days or more

$                        2,138


$                        4,982


(57)


$                        4,531


(53)

Non-accrual loans:










  Construction loans

4,189


4,286


(2)


4,482


(7)

  Commercial mortgage loans

43,361


33,715


29


11,859


266

  Commercial loans

38,351


23,087


66


30,443


26

  Residential mortgage loans

8,545


6,596


30


6,949


23

Total non-accrual loans:

$                      94,446


$                      67,684


40


$                      53,733


76

Total non-performing loans

96,584


72,666


33


58,264


66

 Other real estate owned

4,918


4,918



9,048


(46)

Total non-performing assets

$                    101,502


$                      77,584


31


$                      67,312


51

Accruing troubled debt restructurings (TDRs)

$                      27,864


$                      27,721


1


$                      34,364


(19)











Allowance for loan losses

$                    160,583


$                    166,538


(4)


$                    148,273


8

Total gross loans outstanding, at period-end 

$               15,651,848


$               15,644,396


0


$               15,534,212


1











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

166.26%


229.18%




254.48%



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

1.03%


1.06%




0.95%



The ratio of non-performing assets to total assets was 0.5% as of March 31, 2021, compared to 0.4% as of December 31, 2020.  Total non-performing assets increased $23.9 million, or 30.8%, to $101.5 million as of March 31, 2021, compared to $77.6 million as of December 31, 2020, primarily due to an increase of $26.8 million, or 39.5%, in nonaccrual loans, offset, in part, by a decrease of $2.8 million, or 57.1%, in accruing loans past due 90 days or more. 

CAPITAL ADEQUACY REVIEW

As of March 31, 2021, the Company’s Tier 1 risk-based capital ratio of 13.94%, total risk-based capital ratio of 15.84%, and Tier 1 leverage capital ratio of 11.06%, calculated under the Basel III capital rules, continue to place the Company in the «well capitalized» category for regulatory purposes, which is defined as institutions with  a Tier 1 risk-based capital ratio equal to or greater than 8%, a total risk-based capital ratio equal to or greater than 10%, and a Tier 1 leverage capital ratio equal to or greater than 5%. As of December 31, 2020, the Company’s Tier 1 risk-based capital ratio was 13.53%, total risk-based capital ratio was 15.47%, and Tier 1 leverage capital ratio was 10.94%.

CONFERENCE CALL

Cathay General Bancorp will host a conference call to discuss its first quarter 2021 financial results this afternoon, Monday, April 26, 2021, 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 5682513. 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 at www.cathaybank.com. Cathay General Bancorp’s website is at www.cathaygeneralbancorp.com. Information set forth on such websites is not incorporated into this press release.

FORWARD-LOOKING STATEMENTS

Statements made in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995 regarding management’s beliefs, projections, and assumptions concerning future results and events. These forward-looking statements may include, but are not limited to, such words as «aims,» «anticipates,» «believes,» «can,» «continue,» «could,» «estimates,» «expects,» «hopes,» «intends,» «may,» «plans,» «projects,» «predicts,» «potential,» «possible,» «optimistic,» «seeks,» «shall,» «should,» «will,» and variations of these words and similar expressions. Forward-looking statements are based on estimates, beliefs, projections, and assumptions of management and are not guarantees of future performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. Such risks and uncertainties and other factors include, but are not limited to, adverse developments or conditions related to or arising from local, regional, national and international business, market and economic conditions and events (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, 2020 (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

(Dollars in thousands, except per share data)


March 31, 2021


December 31, 2020


March 31, 2020








FINANCIAL PERFORMANCE







Net interest income before (reversal)/provision for credit losses    


$                  141,818


$                  139,820


$                  140,311

(Reversal)/provision for credit losses


(13,558)


(5,000)


25,000

Net interest income after (reversal)/provision for credit losses


155,376


144,820


115,311

Non-interest income


10,000


11,451


5,786

Non-interest expense


71,403


75,046


65,154

Income before income tax expense


93,973


81,225


55,943

Income tax expense


20,589


10,332


9,091

Net income


$                    73,384


$                   70,893


$                    46,852








Net income per common share







Basic


$                        0.92


$                       0.89


$                        0.59

Diluted


$                        0.92


$                       0.89


$                        0.59








 Cash dividends paid per common share  


$                        0.31


$                       0.31


$                        0.31















SELECTED RATIOS







Return on average assets


1.57%


1.50%


1.05%

Return on average total stockholders’ equity


12.23%


11.75%


8.12%

Efficiency ratio


47.03%


49.61%


44.60%

Dividend payout ratio


33.59%


34.80%


52.63%















YIELD ANALYSIS (Fully taxable equivalent)







Total interest-earning assets


3.68%


3.74%


4.44%

Total interest-bearing liabilities


0.67%


0.86%


1.49%

Net interest spread


3.01%


2.88%


2.95%

Net interest margin


3.20%


3.12%


3.34%















CAPITAL RATIOS


March 31, 2021


December 31, 2020


March 31, 2020

Tier 1 risk-based capital ratio


13.94%


13.53%


12.38%

Total risk-based capital ratio


15.84%


15.47%


14.12%

Tier 1 leverage capital ratio


11.06%


10.94%


10.82%





























 

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(In thousands, except share and per share data)


March 31, 2021


December 31, 2020


March 31, 2020








Assets







Cash and due from banks


$                      141,885


$                      138,616


$                       136,350

Short-term investments and interest bearing deposits


1,612,411


1,282,462


363,666

Securities available-for-sale (amortized cost of $898,463 at March 31, 2021, 







    $1,019,230 at December 31, 2020 and $1,330,232 at March 31, 2020)


908,844


1,036,550


1,355,173

Loans


15,651,848


15,644,396


15,534,212

Less:  Allowance for loan losses


(160,583)


(166,538)


(148,273)

 Unamortized deferred loan fees, net


(6,872)


(2,494)


(277)

 Loans, net


15,484,393


15,475,364


15,385,662

Equity securities


20,993


23,744


18,790

Federal Home Loan Bank stock


17,250


17,250


17,250

Other real estate owned, net


4,918


4,918


9,048

Affordable housing investments and alternative energy partnerships, net


296,229


309,016


294,639

Premises and equipment, net


101,864


102,998


103,481

Customers’ liability on acceptances


4,125


13,753


5,175

Accrued interest receivable


58,216


59,032


53,110

Goodwill


372,189


372,189


372,189

Other intangible assets, net


5,249


5,434


6,187

Right-of-use assets- operating leases


32,927


30,919


32,743

Other assets


159,319


170,889


142,996

Total assets


$                 19,220,812


$                 19,043,134


$                   18,296,459








Liabilities and Stockholders’ Equity







Deposits







Non-interest-bearing demand deposits


$                   3,495,775


$                   3,365,086


$                     2,860,580

Interest-bearing deposits:







NOW deposits


1,915,822


1,926,135


1,514,434

Money market deposits


3,808,794


3,359,191


2,482,950

Savings deposits


911,210


785,672


710,602

Time deposits 


6,222,032


6,673,317


7,521,584

Total deposits


16,353,633


16,109,401


15,090,150








Short-term borrowings




12,898

Advances from the Federal Home Loan Bank


75,000


150,000


495,000

Other borrowings for affordable housing investments


23,333


23,714


28,981

Long-term debt


119,136


119,136


119,136

Deferred payments from acquisition




7,716

Acceptances outstanding


4,125


13,753


5,175

Lease liabilities – operating leases


35,803


33,484


34,790

Other liabilities


155,870


175,502


189,576

Total liabilities


16,766,900


16,624,990


15,983,422

Stockholders’ equity


2,453,912


2,418,144


2,313,037

Total liabilities and equity


$                 19,220,812


$                 19,043,134


$                   18,296,459








Book value per common share


$                         30.83


$                         30.41


$                           29.12

Number of common shares outstanding


79,595,025


79,508,265


79,420,267








 

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)




Three months ended



March 31, 2021

December 31, 2020

March 31, 2020



(In thousands, except share and per share data)

INTEREST AND  DIVIDEND INCOME





Loan receivable, including loan fees


$                    159,721

$                   163,618

$                      177,870

Investment securities


3,067

3,469

7,610

Federal Home Loan Bank stock


217

217

305

Deposits with banks


315

292

951

Total interest and dividend income


163,320

167,596

186,736






INTEREST EXPENSE





Time deposits 


14,009

19,416

35,155

Other deposits


5,594

5,725

7,991

Advances from Federal Home Loan Bank


475

1,180

1,552

Long-term debt


1,424

1,455

1,440

Deferred payments from acquisition


58

Short-term borrowings


229

Total interest expense


21,502

27,776

46,425






Net interest income before (reversal)/provision for credit losses


141,818

139,820

140,311

(Reversal)/provision for credit losses


(13,558)

(5,000)

25,000

Net interest income after (reversal)/provision for credit losses


155,376

144,820

115,311






NON-INTEREST INCOME





Net (losses)/gains from equity securities


(2,752)

780

(6,102)

Securities gains, net


853

542

6

Letters of credit commissions


1,690

1,749

1,640

Depository service fees


1,363

1,271

1,298

Other operating income


8,846

7,109

8,944

Total non-interest income


10,000

11,451

5,786






NON-INTEREST EXPENSE





Salaries and employee benefits


32,722

31,545

30,939

Occupancy expense


5,046

5,199

5,177

Computer and equipment expense


3,271

2,915

2,593

Professional services expense


4,710

6,270

5,145

Data processing service expense


3,655

3,893

3,666

FDIC and State assessments


1,925

2,145

2,415

Marketing expense


2,882

1,334

1,886

Other real estate owned expense/(income)


94

138

(4,104)

Amortization of investments in low income housing and

  alternative energy partnerships


11,570

15,228

13,890

Amortization of core deposit intangibles


172

172

172

Cost associated with debt redemption


732

693

Other operating expense


4,624

5,514

3,375

Total non-interest expense


71,403

75,046

65,154






Income before income tax expense


93,973

81,225

55,943

Income tax expense


20,589

10,332

9,091

Net income


$                      73,384

$                     70,893

$                       46,852

Net income per common share:





Basic


$                         0.92

$                         0.89

$                           0.59

Diluted


$                         0.92

$                         0.89

$                           0.59






Cash dividends paid per common share


$                         0.31

$                         0.31

$                           0.31

Basic average common shares outstanding


79,530,777

79,540,694

79,588,076

Diluted average common shares outstanding


79,832,305

79,834,150

79,830,025






 

CATHAY GENERAL BANCORP

AVERAGE BALANCES – SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited) 



Three months ended


(In thousands)

March 31, 2021


December 31, 2020


March 31, 2020

Interest-earning assets

Average

Balance

Average

Yield/Rate (1)


Average

Balance

Average

Yield/Rate (1)


Average

Balance

Average

Yield/Rate (1)

Loans (1)

$    15,691,976

4.13%


$ 15,569,490

4.18%


$   15,213,440

4.70%

Taxable investment securities 

995,704

1.25%


1,073,058

1.29%


1,379,365

2.22%

FHLB stock

17,250

5.10%


17,250

5.00%


17,268

7.09%

Deposits with banks

1,283,375

0.10%


1,156,764

0.10%


311,024

1.23%

Total interest-earning assets

$    17,988,305

3.68%


$ 17,816,562

3.74%


$   16,921,097

4.44%










Interest-bearing liabilities









Interest-bearing demand deposits

$      1,890,390

0.14%


$   1,694,831

0.15%


$     1,388,597

0.21%

Money market deposits

3,552,217

0.54%


3,295,103

0.59%


2,437,997

1.15%

Savings deposits

845,543

0.10%


797,438

0.11%


733,372

0.18%

Time deposits

6,404,755

0.89%


6,687,731

1.15%


7,495,619

1.89%

Total interest-bearing deposits

$    12,692,905

0.63%


$ 12,475,103

0.80%


$   12,055,585

1.44%

Other borrowed funds

123,424

1.56%


237,467

1.98%


392,029

1.89%

Long-term debt

119,136

4.85%


119,136

4.86%


119,136

4.86%

Total interest-bearing liabilities

12,935,465

0.67%


12,831,706

0.86%


12,566,750

1.49%










Non-interest-bearing demand deposits

3,406,460



3,365,075



2,863,889











Total deposits and other borrowed funds

$    16,341,925



$ 16,196,781



$   15,430,639











Total average assets

$    19,002,097



$ 18,843,635



$   18,003,041


Total average equity

$      2,433,976



$   2,400,494



$     2,320,283



(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