CATHAY GENERAL BANCORP

For the period ended Sep 30, 2024. Filed Nov 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.

Sep 30, 2024 · Filed Nov 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

	September 30, 2024	December 31, 2023
(In thousands, except share data)
Assets
Cash and due from banks	$182,542	$173,988
Short-term investments and interest-bearing deposits	1,156,223	654,813
Securities available-for-sale (amortized cost of $1,602,696 at September 30, 2024, and $1,726,080 at December 31, 2023)	1,508,356	1,604,570
Loans held for sale	5,190	—
Loans held for investment	19,373,593	19,548,140
Less: Allowance for loan losses	(163,733)	(154,562)
Unamortized deferred loan fees, net	(10,505)	(10,720)
Loans held for investment, net	19,199,355	19,382,858
Equity securities	35,741	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	280,091	315,683
Premises and equipment, net	89,158	91,097
Customers’ liability on acceptances	12,043	3,264
Accrued interest receivable	95,351	97,673
Goodwill	375,696	375,696
Other intangible assets, net	3,590	4,461
Right-of-use assets - operating leases	30,543	32,076
Other assets	265,037	267,762
Total assets	$23,274,443	$23,081,534
Liabilities and Stockholders’ Equity
Deposits:
Non-interest-bearing	$3,253,823	$3,529,018
Interest-bearing:
NOW deposits	2,093,861	2,370,685
Money market deposits	3,134,460	3,049,754
Savings deposits	1,215,974	1,039,203
Time deposits	10,245,823	9,336,787
Total deposits	19,943,941	19,325,447
Advances from the Federal Home Loan Bank	60,000	540,000
Other borrowings of affordable housing investments	17,783	15,787
Long-term debt	119,136	119,136
Acceptances outstanding	12,043	3,264
Lease liabilities - operating leases	32,906	34,797
Other liabilities	258,321	306,528
Total liabilities	20,444,130	20,344,959
Commitments and contingencies	—	—
Stockholders’ Equity
Common stock, $0.01 par value, 100,000,000 shares authorized; 91,601,352 issued and 71,355,869 outstanding at September 30, 2024, and 91,392,480 issued and 72,668,927 outstanding at December 31, 2023	916	914
Additional paid-in-capital	991,362	987,953
Accumulated other comprehensive loss, net	(66,453)	(85,416)
Retained earnings	2,632,315	2,500,341
Treasury stock, at cost (20,245,483 shares at September 30, 2024, and 18,723,553 shares at December 31, 2023)	(727,827)	(667,217)
Total stockholders' equity	2,830,313	2,736,575
Total liabilities and stockholders' equity	$23,274,443	$23,081,534

CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE INCOME

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
(In thousands, except share and per share data)
Interest and Dividend Income
Loans receivable	$310,311	$293,108	$916,175	$827,765
Investment securities	15,125	12,698	45,720	36,832
Federal Home Loan Bank stock	375	355	1,305	957
Deposits with banks	13,680	17,307	41,793	43,405
Total interest and dividend income	339,491	323,468	1,004,993	908,959
Interest Expense
Time deposits	119,786	90,022	347,408	234,171
Other deposits	45,918	38,207	133,218	92,683
Advances from Federal Home Loan Bank	1,885	6,779	13,517	14,875
Long-term debt	2,351	1,726	5,935	4,721
Short-term debt	396	1,094	1,872	2,901
Total interest expense	170,336	137,828	501,950	349,351
Net interest income before provision for credit losses	169,155	185,640	503,043	559,608
Provision for credit losses	14,500	7,000	23,000	24,255
Net interest income after provision for credit losses	154,655	178,640	480,043	535,353
Non-Interest Income
Net gains/(losses) from equity securities	4,253	(6,218)	(6,204)	9,298
Net gains/(losses) from securities available for sale	—	—	1,107	(3,000)
Letters of credit commissions	2,081	1,738	5,686	4,972
Depository service fees	1,572	1,536	4,900	5,009
Wealth management fees	6,545	5,150	17,861	12,686
Other operating income	5,914	5,631	16,841	16,226
Total non-interest income	20,365	7,837	40,191	45,191
Non-Interest Expense
Salaries and employee benefits	40,859	38,774	124,850	114,048
Occupancy expense	5,938	5,851	17,557	16,883
Computer and equipment expense	4,753	4,387	15,212	12,899
Professional services expense	7,021	7,906	22,225	24,212
Data processing service expense	4,330	3,614	12,136	11,010
FDIC and regulatory assessments	3,250	3,063	13,081	9,230
Marketing expense	1,614	1,587	5,002	4,777
Other real estate owned expense	596	435	2,331	566
Amortization of investments in low-income housing and alternative energy partnerships	24,077	23,157	61,905	60,497
Amortization of core deposit intangibles	250	250	848	1,059
Other operating expense	4,179	4,949	14,311	14,799
Total non-interest expense	96,867	93,973	289,458	269,980
Income before income tax expense	78,153	92,504	230,776	310,564
Income tax expense	10,639	10,133	24,998	38,966
Net income	$67,514	$82,371	$205,778	$271,598
Other Comprehensive Income/(Loss), net of tax
Net holding gains/(losses) on securities available-for-sale	26,607	(24,043)	19,737	(19,915)
Net holding losses on cash flow hedge derivatives	—	(441)	(774)	(1,323)
Total other comprehensive income/(loss), net of tax	26,607	(24,484)	18,963	(21,238)
Total comprehensive income	$94,121	$57,887	$224,741	$250,360
Net Income Per Common Share:
Basic	$0.94	$1.14	$2.84	$3.74
Diluted	$0.94	$1.13	$2.83	$3.73
Cash dividends paid per common share	$0.34	$0.34	$1.02	$1.02
Average Common Shares Outstanding:
Basic	71,786,624	72,568,518	72,370,995	72,546,149
Diluted	72,032,456	72,890,414	72,607,550	72,847,907

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 June 30, 2024	72,170,433	$916	$988,772	$(93,060)	$2,589,132	$(692,518)	$2,793,242
Dividend Reinvestment Plan	17,332	1	728	—	—	—	729
Restricted stock units vested	564	(1)	—	—	—	—	(1)
Stock issued to directors	—	—	(1)	—	—	—	(1)
Shares withheld related to net share settlement of RSUs	—	—	(13)	—	—	—	(13)
Purchases of treasury stock	(832,460)	—	—	—	—	(35,309)	(35,309)
Stock-based compensation	—	—	1,876	—	—	—	1,876
Cash dividends of $0.34 per share	—	—	—	—	(24,331)	—	(24,331)
Other comprehensive income	—	—	—	26,607	—	—	26,607
Net income	—	—	—	—	67,514	—	67,514
Balance at September 30, 2024	71,355,869	$916	$991,362	$(66,453)	$2,632,315	$(727,827)	$2,830,313

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 June 30, 2023	72,563,169	$913	$983,233	$(99,049)	$2,384,817	$(667,243)	$2,602,671
Dividend Reinvestment Plan	23,397	—	865	—	—	—	865
Restricted stock units vested	426	—	—	—	—	—	—
Stock issued to directors	—	—	—	—	—	—	—
Shares withheld related to net share settlement of RSUs	—	—	(11)	—	—	—	(11)
Purchases of treasury stock	—	—	—	—	—	9	9
Stock-based compensation	—	—	1,987	—	—	—	1,987
Cash dividends of $0.34 per share	—	—	—	—	(24,672)	—	(24,672)
Other comprehensive loss	—	—	—	(24,484)	—	—	(24,484)
Net income	—	—	—	—	82,371	—	82,371
Balance at September 30, 2023	72,586,992	$913	$986,074	$(123,533)	$2,442,516	$(667,234)	$2,638,736

Accumulated
Common Stock · Additional · Other · Total
Number of · Paid-in · Comprehensive · Retained · Treasury · Stockholders'
Nine 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	56,574	1	2,216	—	—	—	2,217
Restricted stock units vested	128,178	1	—	—	—	—	1
Stock issued to directors	24,120	—	850	—	—	—	850
Shares withheld related to net share settlement of RSUs	—	—	(3,722)	—	—	—	(3,722)
Purchases of treasury stock	(1,521,930)	—	—	—	—	(60,610)	(60,610)
Stock-based compensation	—	—	4,065	—	—	—	4,065
Cash dividends of $1.02 per share	—	—	—	—	(73,804)	—	(73,804)
Other comprehensive income	—	—	—	18,963	—	—	18,963
Net income	—	—	—	—	205,778	—	205,778
Balance at September 30, 2024	71,355,869	$916	$991,362	$(66,453)	$2,632,315	$(727,827)	$2,830,313

Accumulated
Common Stock · Additional · Other · Total
Number of · Paid-in · Comprehensive · Retained · Treasury · Stockholders'
Nine 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	73,269	1	2,698	—	—	—	2,699
Restricted stock units vested	121,302	1	—	—	—	—	1
Stock issued to directors	25,360	—	850	—	—	—	850
Shares withheld related to net share settlement of RSUs	—	—	(3,538)	—	—	—	(3,538)
Purchases of treasury stock	(375,090)	—	—	—	—	(16,683)	(16,683)
Stock-based compensation	—	—	4,945	—	—	—	4,945
Cash dividends of $1.02 per share	—	—	—	—	(73,938)	—	(73,938)
Other comprehensive loss	—	—	—	(21,238)	—	—	(21,238)
Net income	—	—	—	—	271,598	—	271,598
Balance at September 30, 2023	72,586,992	$913	$986,074	$(123,533)	$2,442,516	$(667,234)	$2,638,736

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months Ended September 30,
	2024	2023
(In thousands)
Cash Flows from Operating Activities
Net income	$205,778	$271,598
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	23,000	24,255
Provision for losses on other real estate owned	1,164	—
Deferred tax benefit	(20,452)	(12,079)
Depreciation and amortization	5,465	6,402
Amortization of right-of-use asset	7,309	7,258
Change in operating lease liabilities	(1,891)	444
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	61,905	60,497
Net gains on sales of securities available-for-sale	(1,107)	(14)
Amortization/accretion of securities available-for-sale premiums/discounts, net	(19,182)	(5,729)
Unrealized loss/(gain) on equity securities	6,204	(9,298)
Write-off of securities available-for-sale	—	3,000
Stock-based compensation and stock issued to officers as compensation	4,916	5,795
Net change in accrued interest receivable and other assets	9,666	(61,019)
Net change in other liabilities	(40,382)	27,813
Net cash provided by operating activities	242,335	318,929
Cash Flows from Investing Activities
Purchase of securities available-for-sale	(988,498)	(472,303)
Proceeds from repayments, maturities and calls of securities available-for-sale	1,097,594	412,268
Proceeds from sale of securities available-for-sale	33,690	—
Purchase of Federal Home Loan Bank stock	(12,535)	(21,550)
Redemption of Federal Home Loan Bank stock	13,031	21,550
Proceeds from sale of loans originally classified as held-for-investment	130,010	—
Net decrease/(increase) in loans	26,036	(789,465)
Purchase of premises and equipment	(2,654)	(1,633)
Net increase in affordable housing investments and alternative energy partnerships	(31,737)	(36,076)
Net cash provided/(used) for investing activities	264,937	(887,209)
Cash Flows from Financing Activities
Increase in deposits	618,611	1,130,271
Advances from Federal Home Loan Bank	6,968,000	10,110,000
Repayment of Federal Home Loan Bank borrowings	(7,448,000)	(10,580,000)
Cash dividends paid	(73,804)	(73,938)
Purchases of treasury stock	(60,610)	(16,683)
Proceeds from shares issued under Dividend Reinvestment Plan	2,217	2,700
Taxes paid related to net share settlement of RSUs	(3,722)	(3,538)
Net cash provided by financing activities	2,692	568,812
Increase in cash, cash equivalents, and restricted cash	509,964	532
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	$1,338,765	$1,162,934
Supplemental disclosure of cash flow information
Cash paid during the period:
Interest	$494,181	$336,722
Income taxes paid	$41,027	$60,332
Non-cash investing and financing activities:
Net change in unrealized holding gain/(loss) on securities available-for-sale, net of tax	$19,737	$(19,915)
Net change in unrealized holding loss on cash flow hedge derivatives	$(774)	$(1,323)
Loans transferred from held-for-investment to held-for-sale	$135,141	$—
Transfers to other real estate owned from loans held-for-investment	$—	$6,264

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