Cathay General Bancorp · NASDAQ:CATY
Cathay General Bancorp — Q1 2024 Earnings Presentation
22 slides from Cathay General Bancorp's earnings presentation, Apr 22, 2024
Slide 1: Financial Earnings Results First Quarter 2024
Financial Earnings Results First Quarter 2024 April 22, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements about Cathay General Bancorp and its subsidiaries (collectively referred to herein as the “Company,” “we,” “us,” or “our”) within the meaning of the applicable provisions of the Private Securities Litigation Reform Act
Slide 3: Financial Highlights 1Q 2024
Financial Highlights 1Q 2024 Quarterly Results Ending Profitability: Return on Assets & Equity Return on Tangible Equity * March 31, 2024 20.00% ROAA ROAE 20.00% 18.00% 18.00% 17.80% $71.4mn 15.39% 16.00% 16.85% Net Income 16.00% 14.00% 14.47% 14.00% 14.62% 14.04% 12.00% 12.36% 12.21% 12.00% 10.40%
Slide 4: Summary Balance Sheets
Summary Balance Sheets $mn, except per share data 3.31.24 12.31.23 QoQ Change Cash equivalents & ST investments $ 1,176 $ 829 $ 347 AFS debt securities 1,653 1,605 49 Gross loans, net of discounts $ 19,418 $ 19,537 $ (120) Allowance for credit losses (155) (155) (0) Net Loans $ 19,263 $ 19,383 $ (12
Slide 5: Loan Composition
Loan Composition Total Loan Portfolio ($bn) Average Loan Growth – QoQ Annualized ($bn) $19.3 +3.5% $19.5 Construction 20.000000 $19.0 +0.1% $19.0 +8.2% 20.0% 2% $18.2 +15.6% $0.5 $0.4 $0.5 $0.5 18.000000 $0.6 $3.2 $3.2 $3.2 10.0% $3.3 16.000000 $3.2 Residential Mortgage* 0.0% $19.4bn Total CRE 14.00
Slide 6: Loan Yields
Loan Yields Average Loan Yield by Type (in bps) 1Q23 2Q23 3Q23 4Q23 1Q24 10% fixed rate 89% float rate 39% fixed rate 1000 950 900 840 847 849 31% fixed rate 21% float rate 850 778 790 25% float rate 800 750 700 593 613 621 624 595 598 593 650 581 560 575 600 514 531 477 496 458 550 500 450 400 350
Slide 7: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio CRE Portfolio Breakdown CRE Geographic Distribution NY Residential 18% Total CRE 34% $9.8bn 51% of total loans Construction 2% $9.8bn Total CRE CA TX 5% Residential Retail 12% 47% IL 3% Mortgage* Other $19.4bn Total CRE 9% WA 2% 31% 51% Total Loans Office 8% C&I 16%
Slide 8: Commercial Real Estate Portfolio (cont'd)
Commercial Real Estate Portfolio (cont’d) Total CRE LTV Distribution Total CRE LTV and Size by Property Type Total CRE Loan Avg. Total CRE Portfolio Loan Size Weighted ($mn) ($mn) Avg. LTV Residental $3,406 $1.3 54% 40% to 50% 23% Retail $2,342 $2.1 50% Office $1,513 $2.1 48% 50% to 60% $9.8bn 31% W
Slide 9: Selected CRE and Construction Loan Portfolios
Selected CRE and Construction Loan Portfolios Residential CRE Portfolio Retail CRE Portfolio Construction Portfolio % based on $3.4bn loans outstanding % based on $2.3bn loans outstanding % based on $0.4bn loans outstanding 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95
Slide 10: CRE Office Portfolio
CRE Office Portfolio Office CRE Portfolio Office CRE Distribution % based on $1.5bn loans outstanding Office CRE Loan Total CRE 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Portfolio Weighted Avg. LTV Property Type ($mn) ($mn) Office Building 34% Office Building $511 47% Office Condominium $419 47% O
Slide 11: Residential Mortgage Portfolio
Residential Mortgage Portfolio Resi. Mortgage Geographic Distribution Single-Family Resi. LTV Distribution >50% to 55% 10% NY 37% 50% or Under 34% > 55% to 60% 54% 16% $6.1bn LTV Weighted Average Residential Mortgage* $418,731 CA Outstanding Size 50% Average WA 4% Over 60% 40% TX 3% NJ 2% Other 4% *
Slide 12: Asset Quality Metrics
Asset Quality Metrics ALLL Composition ($mn) Reserves and Net Charge-Offs (%) CRE C&I Residential Mortgage Construction Total ALLL ALLL / Gross Loans NCOs/Avg Loans (annualized) Reserve 1.00% Rate 180 7% 0.80%* 0.90% 0.79% 0.82% 0.81% 0.79% 0.80% $155 $155 $155 $155 160 $145 2.23% 0.80% $8 $9 6% $13
Slide 13: Deposit Mix
Deposit Mix Total Deposits ($bn) Average Deposit Growth – QoQ Annualized ($bn) Time DDA MMA IB Checking & Savings MMA 16% $19.3 $19.6 $19.5 20 $18.9 $18.9 +9% +5% -1% 20% +1% IB Checking & 18 $3.4 $3.6 $3.6 $3.4 $3.3 Savings 10% 16 17% $3.0 $3.0 $3.2 $3.1 $19.8bn 14 $3.4 0% 12 $3.6 $3.6 $3.3 $4.0 $3
Slide 14: Summary Income Statements
Summary Income Statements $mn, except per share data 3.31.24 12.31.23 $ Change % Change Net Interest Income $ 168.6 $ 182.1 $ (13.6) (7.4)% Noninterest income 15.6 14.2 1.5 10.5% Net (losses) / Gains from equity securities (9.0) 9.0 (18.0) (200.9)% Total Noninterest Income 6.6 23.1 (16.5) (71.4)% No
Slide 15: Loan Yields, Deposit Costs and Net Interest Income
Loan Yields, Deposit Costs and Net Interest Income Average Loan Yield vs Prime Rate and 1M SOFR Average Cost of Deposits vs Fed Funds Rate Avg. Loan Yield Avg. Prime Rate 1M SOFR Rate Avg. Cost of Total Deposit (in bps) Avg. Cost of IB Deposit (in bps) Avg. Fed Funds Rate 8.43% 8.50% 8.50% 5.26% 5.3
Slide 16: Non-Interest Income
Non-Interest Income Non-Interest Income* ($mn) other operating income wealth management fees letter of credit commissions deposit account fees 18 $14.5 16 $14.1 $14.1 $1.6 14 $12.4 $12.4 $1.5 $1.4 12 $1.6 $1.7 $1.7 $1.7 $1.8 10 $1.6 $1.7 8 $5.2 $4.8 $5.6 $3.9 $3.6 6 4 $5.1 $5.5 $5.7 $6.2 $5.6 2 - 1Q
Slide 17: Operating Expense & Efficiency
Operating Expense & Efficiency Core Noninterest Expense* ($mn) Core Noninterest Expense* & Efficiency Ratio* ($mn) Noninterest Expense* Efficiency Ratio* 85 $75.4 $72.0 $75.4 $72.0 75 50.00% $70.4 $70.1 $70.4 $70.1 $67.3 $6.6 70 $67.3 $6.8 $3.2 43.0% $8.0 $6.5 45.00% 65 $5.0 $3.1 60 $3.2 $3.0 $3.1 $
Slide 18: Strong Capital Ratios
Strong Capital Ratios Key Capital Ratios (%) Highlights • Capital Ratio well above regulatory standards that continues to place 14.55% Cathay in the “well capitalized” category, 16.00% 14.00% 13.08% 13.08% calculated under the Basel III capital 12.00% 10.71% rules. 10.50% 10.00% 8.50% • Book Value P
Slide 19: Management Guidance Full Year 2024
Management Guidance Full Year 2024 Full Year Prior Full Year 2024 Guidance Outlook 2023 Actual Loans, • Estimated growth rate 3% to 4%. • Estimated growth rate 4% to 5%. $19.5 billion end of period +7.1% YoY Deposits • Estimated growth rate 4% to 5%. • Estimated growth rate 4% to 5%. $19.3 billion +
Slide 20: Appendix
Appendix hs
Slide 21: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation Selected Consolidation Financial Information ($ in thousands) (unaudited) We use certain non-GAAP financial measures to provide supplemental information regarding our performance. Tangible equity and tangible equity to tangible assets ratio are non-GAAP fina
Slide 22: Cathay General Bancorp
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