CATHAY GENERAL BANCORP

For the period ended Jun 30, 2024. Filed Aug 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.

Jun 30, 2024 · Filed Aug 8, 2024

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

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

Item 1. FINANCIAL STATEMENTS (Unaudited)

CONSOLIDATED BALANCE SHEETS

	June 30, 2024	December 31, 2023
(In thousands, except share data)
Assets
Cash and due from banks	$160,389	$173,988
Short-term investments and interest-bearing deposits	944,612	654,813
Securities available-for-sale (amortized cost of $1,780,251 at June 30, 2024, and $1,726,080 at December 31, 2023)	1,648,731	1,604,570
Loans held for investment	19,357,524	19,548,140
Less: Allowance for loan losses	(153,404)	(154,562)
Unamortized deferred loan fees, net	(10,785)	(10,720)
Loans held for investment, net	19,193,335	19,382,858
Equity securities	31,488	40,406
Federal Home Loan Bank stock	17,250	17,746
Other real estate owned, net	18,277	19,441
Affordable housing investments and alternative energy partnerships, net	309,834	315,683
Premises and equipment, net	89,451	91,097
Customers’ liability on acceptances	16,264	3,264
Accrued interest receivable	99,434	97,673
Goodwill	375,696	375,696
Other intangible assets, net	3,860	4,461
Right-of-use assets - operating leases	32,858	32,076
Other assets	293,766	267,762
Total assets	$23,235,245	$23,081,534
Liabilities and Stockholders’ Equity
Deposits:
Non-interest-bearing	$3,161,632	$3,529,018
Interest-bearing:
NOW deposits	2,145,580	2,370,685
Money market deposits	3,182,031	3,049,754
Savings deposits	1,014,287	1,039,203
Time deposits	10,269,487	9,336,787
Total deposits	19,773,017	19,325,447
Advances from the Federal Home Loan Bank	165,000	540,000
Other borrowings of affordable housing investments	17,838	15,787
Long-term debt	119,136	119,136
Acceptances outstanding	16,264	3,264
Lease liabilities - operating leases	35,355	34,797
Other liabilities	315,393	306,528
Total liabilities	20,442,003	20,344,959
Commitments and contingencies	—	—
Stockholders’ Equity
Common stock, $0.01 par value, 100,000,000 shares authorized; 91,583,456 issued and 72,170,433 outstanding at June 30, 2024, and 91,392,480 issued and 72,668,927 outstanding at December 31, 2023	916	914
Additional paid-in-capital	988,772	987,953
Accumulated other comprehensive loss, net	(93,060)	(85,416)
Retained earnings	2,589,132	2,500,341
Treasury stock, at cost (19,413,023 shares at June 30, 2024, and 18,723,553 shares at December 31, 2023)	(692,518)	(667,217)
Total stockholders' equity	2,793,242	2,736,575
Total liabilities and stockholders' equity	$23,235,245	$23,081,534

CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE INCOME

	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
(In thousands, except share and per share data)
Interest and Dividend Income
Loans receivable	$303,336	$273,478	$605,864	$534,657
Investment securities	15,644	12,370	30,595	24,134
Federal Home Loan Bank stock	499	298	930	602
Deposits with banks	13,381	13,959	28,113	26,098
Total interest and dividend income	332,860	300,105	665,502	585,491
Interest Expense
Time deposits	118,076	79,975	227,622	144,149
Other deposits	44,512	30,659	87,300	54,476
Advances from Federal Home Loan Bank	2,316	5,498	11,632	8,096
Long-term debt	1,863	1,552	3,584	2,995
Short-term debt	777	888	1,476	1,807
Total interest expense	167,544	118,572	331,614	211,523
Net interest income before provision for credit losses	165,316	181,533	333,888	373,968
Provision for credit losses	6,600	9,155	8,500	17,255
Net interest income after provision for credit losses	158,716	172,378	325,388	356,713
Non-Interest Income
Net (losses)/gains from equity securities	(1,430)	10,663	(10,457)	15,516
Net gains/(losses) from securities available for sale	—	—	1,107	(3,000)
Letters of credit commissions	1,888	1,664	3,605	3,234
Depository service fees	1,778	1,641	3,328	3,473
Wealth management fees	5,678	3,639	11,316	7,536
Other operating income	5,301	5,503	10,927	10,595
Total non-interest income	13,215	23,110	19,826	37,354
Non-Interest Expense
Salaries and employee benefits	40,439	37,048	83,991	75,274
Occupancy expense	5,652	5,528	11,619	11,032
Computer and equipment expense	5,391	4,227	10,459	8,512
Professional services expense	8,212	8,900	15,204	16,306
Data processing service expense	3,877	3,672	7,806	7,396
FDIC and regulatory assessments	3,742	3,012	9,831	6,167
Marketing expense	1,474	2,416	3,388	3,190
Other real estate owned expense	1,482	81	1,735	131
Amortization of investments in low-income housing and alternative energy partnerships	23,396	21,746	37,828	37,340
Amortization of core deposit intangibles	259	559	598	809
Other operating expense	5,428	5,632	10,132	9,850
Total non-interest expense	99,352	92,821	192,591	176,007
Income before income tax expense	72,579	102,667	152,623	218,060
Income tax expense	5,750	9,447	14,359	28,833
Net income	$66,829	$93,220	$138,264	$189,227
Other Comprehensive Income/(Loss), net of tax
Net holding (losses)/gains on securities available-for-sale	(448)	(7,531)	(6,870)	4,128
Net holding losses on cash flow hedge derivatives	(333)	(441)	(774)	(882)
Total other comprehensive (loss)/income, net of tax	(781)	(7,972)	(7,644)	3,246
Total other comprehensive income	$66,048	$85,248	$130,620	$192,473
Net Income Per Common Share:
Basic	$0.92	$1.29	$1.90	$2.61
Diluted	$0.92	$1.28	$1.90	$2.60
Cash dividends paid per common share	$0.34	$0.34	$0.68	$0.68
Average Common Shares Outstanding:
Basic	72,658,810	72,536,301	72,666,392	72,534,779
Diluted	72,825,356	72,753,746	72,898,256	72,826,301

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

Accumulated
Common Stock · Additional · Other · Total
Number of · Paid-in · Comprehensive · Retained · Treasury · Stockholders'
Three Months Ended	Shares	Amount	Capital	Loss	Earnings	Stock	Equity
(In thousands, except share and per share data)
Balance at March 31, 2024	72,688,191	$914	$989,578	$(92,279)	$2,547,068	$(667,209)	$2,778,072
Dividend Reinvestment Plan	20,774	—	744	—	—	—	744
Restricted stock units vested	126,818	2	—	—	—	—	2
Stock issued to directors	24,120	—	850	—	—	—	850
Shares withheld related to net share settlement of RSUs	—	—	(3,684)	—	—	—	(3,684)
Purchases of treasury stock	(689,470)	—	—	—	—	(25,309)	(25,309)
Stock-based compensation	—	—	1,284	—	—	—	1,284
Cash dividends of $0.34 per share	—	—	—	—	(24,765)	—	(24,765)
Other comprehensive loss	—	—	—	(781)	—	—	(781)
Net income	—	—	—	—	66,829	—	66,829
Balance at June 30, 2024	72,170,433	$916	$988,772	$(93,060)	$2,589,132	$(692,518)	$2,793,242

Accumulated
Common Stock · Additional · Other · Total
Number of · Paid-in · Comprehensive · Retained · Treasury · Stockholders'
Three Months Ended	Shares	Amount	Capital	Loss	Earnings	Stock	Equity
(In thousands, except share and per share data)
Balance at March 31, 2023	72,390,694	$911	$983,534	$(91,077)	$2,316,258	$(667,287)	$2,542,339
Dividend Reinvestment Plan	26,852	1	915	—	—	—	916
Restricted stock units vested	120,263	1	—	—	—	—	1
Stock issued to directors	25,360	—	849	—	—	—	849
Shares withheld related to net share settlement of RSUs	—	—	(3,512)	—	—	—	(3,512)
Purchases of treasury stock	—	—	—	—	—	44	44
Stock-based compensation	—	—	1,447	—	—	—	1,447
Cash dividends of $0.34 per share	—	—	—	—	(24,661)	—	(24,661)
Other comprehensive income	—	—	—	(7,972)	—	—	(7,972)
Net income	—	—	—	—	93,220	—	93,220
Balance at June 30, 2023	72,563,169	$913	$983,233	$(99,049)	$2,384,817	$(667,243)	$2,602,671

Accumulated
Common Stock · Additional · Other · Total
Number of · Paid-in · Comprehensive · Retained · Treasury · Stockholders'
Six Months Ended	Shares	Amount	Capital	Loss	Earnings	Stock	Equity
(In thousands, except share and per 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	39,242	—	1,488	—	—	—	1,488
Restricted stock units vested	127,614	2	—	—	—	—	2
Stock issued to directors	24,120	—	850	—	—	—	850
Shares withheld related to net share settlement of RSUs	—	—	(3,708)	—	—	—	(3,708)
Purchases of treasury stock	(689,470)	—	—	—	—	(25,301)	(25,301)
Stock-based compensation	—	—	2,189	—	—	—	2,189
Cash dividends of $0.68 per share	—	—	—	—	(49,473)	—	(49,473)
Other comprehensive loss	—	—	—	(7,644)	—	—	(7,644)
Net income	—	—	—	—	138,264	—	138,264
Balance at June 30, 2024	72,170,433	$916	$988,772	$(93,060)	$2,589,132	$(692,518)	$2,793,242

Accumulated
Common Stock · Additional · Other · Total
Number of · Paid-in · Comprehensive · Retained · Treasury · Stockholders'
Six Months Ended	Shares	Amount	Capital	Loss	Earnings	Stock	Equity
(In thousands, except share and per 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	49,872	1	1,833	—	—	—	1,834
Restricted stock units vested	120,876	1	—	—	—	—	1
Stock issued to directors	25,360	—	850	—	—	—	850
Shares withheld related to net share settlement of RSUs	—	—	(3,527)	—	—	—	(3,527)
Purchases of treasury stock	(375,090)	—	—	—	—	(16,692)	(16,692)
Stock-based compensation	—	—	2,958	—	—	—	2,958
Cash dividends of $0.68 per share	—	—	—	—	(49,266)	—	(49,266)
Other comprehensive loss	—	—	—	3,246	—	—	3,246
Net income	—	—	—	—	189,227	—	189,227
Balance at June 30, 2023	72,563,169	$913	$983,233	$(99,049)	$2,384,817	$(667,243)	$2,602,671

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended June 30,
	2024	2023
(In thousands)
Cash Flows from Operating Activities
Net income	$138,264	$189,227
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	8,500	17,255
Provision for losses on other real estate owned	1,164	—
Deferred tax benefit	(11,971)	(9,132)
Depreciation and amortization	3,696	4,407
Amortization of right-of-use asset	4,912	4,768
Change in operating lease liabilities	558	1,352
Net gains on sale of loans	(58)	—
Loss on sales or disposal of premises and equipment	—	6
Amortization on alternative energy partnerships, venture capital and other investments	37,828	37,340
Net gains on sales of securities available-for-sale	(1,107)	(14)
Amortization/accretion of securities available-for-sale premiums/discounts, net	(12,912)	(2,964)
Unrealized loss/(gain) on equity securities	10,457	(15,516)
Write-off of securities available-for-sale	—	3,000
Stock-based compensation and stock issued to officers as compensation	3,039	3,808
Net change in accrued interest receivable and other assets	(21,638)	(50,971)
Net change in other liabilities	355	29,281
Net cash provided by operating activities	161,087	211,847
Cash Flows from Investing Activities
Purchase of securities available-for-sale	(645,827)	(180,216)
Proceeds from repayments, maturities and calls of securities available-for-sale	571,097	173,010
Proceeds from sale of securities available-for-sale	33,690	—
Purchase of Federal Home Loan Bank stock	(12,535)	(15,422)
Redemption of Federal Home Loan Bank stock	13,031	7,430
Proceeds from sale of loans originally classified as held-for-investment	107,012	—
Net decrease/(increase) in loans	74,489	(705,534)
Purchase of premises and equipment	(1,449)	(962)
Net increase in affordable housing investments and alternative energy partnerships	(20,036)	(24,329)
Net cash provided/(used) for investing activities	119,472	(746,023)
Cash Flows from Financing Activities
Increase in deposits	447,635	591,689
Advances from Federal Home Loan Bank	5,968,000	5,770,000
Repayment of Federal Home Loan Bank borrowings	(6,343,000)	(5,440,000)
Cash dividends paid	(49,473)	(49,266)
Purchases of treasury stock	(25,301)	(16,692)
Proceeds from shares issued under Dividend Reinvestment Plan	1,488	1,835
Taxes paid related to net share settlement of RSUs	(3,708)	(3,527)
Net cash (used)/provided by financing activities	(4,359)	854,039
Increase in cash, cash equivalents, and restricted cash	276,200	319,863
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	$1,105,001	$1,482,265
Supplemental disclosure of cash flow information
Cash paid during the period:
Interest	$322,960	$203,611
Income taxes paid	$32,867	$48,712
Non-cash investing and financing activities:
Net change in unrealized holding (loss)/gain on securities available-for-sale, net of tax	$(6,870)	$4,128
Net change in unrealized holding loss on cash flow hedge derivatives	$(774)	$(882)
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.