CATHAY GENERAL BANCORP

For the period ended Mar 31, 2024. Filed May 8, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2024 · Filed May 8, 2024

CATY$65.35-0.0%Stored close · as of Nov 10, 2026

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Contents

Item 1. FINANCIAL STATEMENTS (Unaudited)

CONSOLIDATED BALANCE SHEETS

	March 31, 2024	December 31, 2023
(In thousands, except share and per share data)
Assets
Cash and due from banks	$165,284	$173,988
Short-term investments and interest-bearing deposits	1,010,651	654,813
Securities available-for-sale (amortized cost of $1,783,915 at March 31, 2024 and $1,726,080 at December 31, 2023)	1,653,167	1,604,570
Loans held for sale	23,171	—
Loans held for investment	19,429,396	19,548,140
Less: Allowance for loan losses	(154,589)	(154,562)
Unamortized deferred loan fees, net	(11,737)	(10,720)
Loans held for investment, net	19,263,070	19,382,858
Equity securities	31,380	40,406
Federal Home Loan Bank stock	17,250	17,746
Other real estate owned, net	19,441	19,441
Affordable housing investments and alternative energy partnerships, net	330,912	315,683
Premises and equipment, net	90,454	91,097
Customers’ liability on acceptances	17,074	3,264
Accrued interest receivable	97,937	97,673
Goodwill	375,696	375,696
Other intangible assets, net	4,131	4,461
Right-of-use assets - operating leases	31,698	32,076
Other assets	273,487	267,762
Total assets	$23,404,803	$23,081,534
Liabilities and Stockholders’ Equity
Deposits:
Non-interest-bearing	$3,289,539	$3,529,018
Interest-bearing:
NOW deposits	2,331,486	2,370,685
Money market deposits	3,117,557	3,049,754
Savings deposits	1,039,144	1,039,203
Time deposits	10,068,533	9,336,787
Total deposits	19,846,259	19,325,447
Advances from the Federal Home Loan Bank	265,000	540,000
Other borrowings of affordable housing investments	17,557	15,787
Long-term debt	119,136	119,136
Acceptances outstanding	17,074	3,264
Lease liabilities - operating leases	34,325	34,797
Other liabilities	327,380	306,528
Total liabilities	20,626,731	20,344,959
Commitments and contingencies	—	—
Stockholders’ Equity
Common stock, $0.01 par value, 100,000,000 shares authorized; 91,411,744 issued and 72,688,191 outstanding at March 31, 2024, and 91,392,480 issued and 72,668,927 outstanding at December 31, 2023	914	914
Additional paid-in-capital	989,578	987,953
Accumulated other comprehensive loss, net	(92,279)	(85,416)
Retained earnings	2,547,068	2,500,341
Treasury stock, at cost (18,723,553 shares at March 31, 2024, and 18,723,553 shares at December 31, 2023)	(667,209)	(667,217)
Total stockholders' equity	2,778,072	2,736,575
Total liabilities and stockholders' equity	$23,404,803	$23,081,534

CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE INCOME

	Three Months Ended March 31,
	2024	2023
(In thousands, except share and per share data)
Interest and Dividend Income
Loans receivable	$302,528	$261,179
Investment securities	14,951	11,764
Federal Home Loan Bank stock	431	304
Deposits with banks	14,732	12,139
Total interest and dividend income	332,642	285,386
Interest Expense
Time deposits	109,546	64,174
Other deposits	42,788	23,817
Advances from Federal Home Loan Bank	9,316	2,598
Long-term debt	1,721	1,443
Short-term debt	699	919
Total interest expense	164,070	92,951
Net interest income before provision for credit losses	168,572	192,435
Provision for credit losses	1,900	8,100
Net interest income after provision for credit losses	166,672	184,335
Non-Interest Income
Net (losses)/gains from equity securities	(9,027)	4,853
Net gains/(losses) from securities available for sale	1,107	(3,000)
Letters of credit commissions	1,717	1,570
Depository service fees	1,550	1,832
Wealth management fees	5,638	3,897
Other operating income	5,626	5,092
Total non-interest income	6,611	14,244
Non-Interest Expense
Salaries and employee benefits	43,552	38,226
Occupancy expense	5,967	5,504
Computer and equipment expense	5,068	4,285
Professional services expense	6,992	7,406
Data processing service expense	3,929	3,724
FDIC and regulatory assessments	6,089	3,155
Marketing expense	1,914	774
Other real estate owned expense	253	50
Amortization of investments in low income housing and alternative energy partnerships	14,432	15,594
Amortization of core deposit intangibles	339	250
Other operating expense	4,704	4,218
Total non-interest expense	93,239	83,186
Income before income tax expense	80,044	115,393
Income tax expense	8,609	19,386
Net income	$71,435	$96,007
Other Comprehensive Income/(Loss), net of tax
Net holding (losses)/gains on securities available-for-sale	(6,422)	11,659
Net holding losses on cash flow hedge derivatives	(441)	(441)
Total other comprehensive (loss)/income, net of tax	(6,863)	11,218
Total other comprehensive income	$64,572	$107,225
Net Income Per Common Share:
Basic	$0.98	$1.32
Diluted	$0.98	$1.32
Cash dividends paid per common share	$0.34	$0.34
Average Common Shares Outstanding:
Basic	72,673,974	72,533,239
Diluted	72,971,157	72,899,662

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’** EQUITY**

Accumulated
Common Stock · Additional · Other · Total
Number of · Paid-in · Comprehensive · Retained · Treasury · Stockholders'
	Shares	Amount	Capital	Loss	Earnings	Stock	Equity
(In thousands, except share data)
Balance at December 31, 2023	72,668,927	$914	$987,953	$(85,416)	$2,500,341	$(667,217)	$2,736,575
Dividend Reinvestment Plan	18,468	—	744	—	—	—	744
Restricted stock units vested	796	—	—	—	—	—	—
Shares withheld related to net share settlement of RSUs	—	—	(24)	—	—	—	(24)
Purchases of treasury stock	—	—	—	—	—	8	8
Stock-based compensation	—	—	905	—	—	—	905
Cash dividends of $0.34 per share	—	—	—	—	(24,708)	—	(24,708)
Other comprehensive loss	—	—	—	(6,863)	—	—	(6,863)
Net income	—	—	—	—	71,435	—	71,435
Balance at March 31, 2024	72,688,191	$914	$989,578	$(92,279)	$2,547,068	$(667,209)	$2,778,072

Accumulated
Common Stock · Additional · Other · Total
Number of · Paid-in · Comprehensive · Retained · Treasury · Stockholders'
	Shares	Amount	Capital	Loss	Earnings	Stock	Equity
(In thousands, except share data)
Balance at December 31, 2022	72,742,151	$911	$981,119	$(102,295)	$2,244,856	$(650,551)	$2,474,040
Dividend Reinvestment Plan	23,020	—	918	—	—	—	918
Restricted stock units vested	613	—	—	—	—	—	—
Shares withheld related to net share settlement of RSUs	—	—	(14)	—	—	—	(14)
Purchases of treasury stock	(375,090)	—	—	—	—	(16,736)	(16,736)
Stock-based compensation	—	—	1,511	—	—	—	1,511
Cash dividends of $0.34 per share	—	—	—	—	(24,605)	—	(24,605)
Other comprehensive income	—	—	—	11,218	—	—	11,218
Net income	—	—	—	—	96,007	—	96,007
Balance at March 31, 2023	72,390,694	$911	$983,534	$(91,077)	$2,316,258	$(667,287)	$2,542,339

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months Ended March 31,
	2024	2023
(In thousands)
Cash Flows from Operating Activities
Net income	$71,435	$96,007
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	1,900	8,100
Deferred tax benefit	(4,782)	(7,293)
Depreciation and amortization	1,889	2,054
Amortization of right-of-use asset	2,477	2,405
Change in operating lease liabilities	(472)	81
Net gains on sale of loans	(20)	—
Loss on sales or disposal of premises and equipment	—	6
Amortization on alternative energy partnerships, venture capital and other investments	14,432	15,594
Net gains on sales of securities available-for-sale	(1,107)	—
Amortization/accretion of securities available-for-sale premiums/discounts, net	(6,370)	(1,324)
Unrealized loss/(gain) on equity securities	9,026	(4,853)
Write off of securities available-for-sale	—	3,000
Stock-based compensation and stock issued to officers as compensation	905	1,511
Net change in accrued interest receivable and other assets	(1,424)	15,608
Net change in other liabilities	281	(9,730)
Net cash provided by operating activities	88,170	121,166
Cash Flows from Investing Activities
Purchase of securities available-for-sale	(469,647)	(156,597)
Proceeds from repayments, maturities and calls of securities available-for-sale	384,721	104,669
Proceeds from sale of securities available-for-sale	33,690	—
Purchase of Federal Home Loan Bank stock	(12,535)	(680)
Redemption of Federal Home Loan Bank stock	13,031	680
Proceeds from sale of loans originally classified as held-for-investment	83,803	—
Net increase/(decrease) in loans	10,634	(68,133)
Purchase of premises and equipment	(916)	(295)
Net increase in affordable housing investments and alternative energy partnerships	(5,680)	(8,078)
Net cash provided/(used) for investing activities	37,101	(128,434)
Cash Flows from Financing Activities
Increase in deposits	520,843	143,633
Advances from Federal Home Loan Bank	4,403,000	2,075,000
Repayment of Federal Home Loan Bank borrowings	(4,678,000)	(2,200,000)
Cash dividends paid	(24,708)	(24,605)
Purchases of treasury stock	8	(16,736)
Proceeds from shares issued under Dividend Reinvestment Plan	744	918
Taxes paid related to net share settlement of RSUs	(24)	(14)
Net cash provided/(used) by financing activities	221,863	(21,804)
Increase/(decrease) in cash, cash equivalents, and restricted cash	347,134	(29,072)
Cash, cash equivalents, and restricted cash, beginning of the period	828,801	1,162,402
Cash, cash equivalents, and restricted cash, end of the period	$1,175,935	$1,133,330
Supplemental disclosure of cash flow information
Cash paid during the period:
Interest	$155,048	$86,785
Income taxes paid	$282	$—
Non-cash investing and financing activities:
Net change in unrealized holding (loss)/gain on securities available-for-sale, net of tax	$(6,422)	$11,659
Net change in unrealized holding loss on cash flow hedge derivatives	$(441)	$(441)
Loans transferred from held-for-investment to held-for-sale	$106,953	$—

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.