Cathay General Bancorp · NASDAQ:CATY
Cathay General Bancorp — Q3 2020 Earnings Presentation
17 slides from Cathay General Bancorp's earnings presentation, Oct 26, 2020
Slide 1: Financial Earnings Results. Third Quarter 2020
Financial Earnings Results. Third Quarter 2020 October 26, 2020
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 3Q 2020
Financial Highlights 3Q 2020 As of September 30, 2020 Net Income Profitability: Return on Assets & Equity Pre-Tax Pre-Provision Income Ratio • $56.8 million $ in millions 16.00% Diluted EPS $110.00 10.00% 12.98% 14.00% 9.00% 12.00% 11.75% $100.00 $98.8 $94.8 $95.7 8.00% • $0.71 $91.5 $87.7 7.00% $90
Slide 4: Summary Balance Sheet
Summary Balance Sheet $ in millions, except per share data 9.30.20 12.31.19 Change 9.30.19 YoY Change Cash equivalents & ST investments $ 1,434 $ 594 141% $ 825 74% AFS debt securities 1,081 1,452 -26% 1,427 -24% Gross loans, net of discounts $ 15,561 $ 15,075 3% $ 14,764 5% Allowance for credit los
Slide 5: 3Q 2020 Loan Composition
3Q 2020 Loan Composition Construction 4% Total Loan Portfolio • Total CRE $7.5 billion • $15.6 billion Residential Mortgage* Total CRE • Residential Mortgage $4.6 billion as of 9.30.20 29% 48% • C & I Loans $2.6 billion • Paycheck Protection Program $266 million C&I • Construction loans $0.6 billion
Slide 6: 3Q 2020: Commercial Real Estate Portfolio
3Q 2020: Commercial Real Estate Portfolio Total CRE Geographic Distribution Total CRE • $7.5 billion Residential 13% 48% of total loans Construction CA 4% 58% Total CRE NY/NJ/ $7.5 Billion MD/MA Retail 11% /IL Residential 31% Mortgage* 29% Total Loans Total CRE TX 2% $15.6 Billion 48% WA 2% Office 9
Slide 7: 3Q 2020: Commercial Real Estate Portfolio
3Q 2020: Commercial Real Estate Portfolio LTV Distribution of Total CRE $7.5 Billion LTV & Size by Property Type • $1.52 mil avg. outstanding size Total CRE Total CRE COVID COVID • weighted avg. LTV 51% Loan Weighted CRE Loan Weighted $ in millions Portfolio Avg. LTV Modification Avg. LTV Residental
Slide 8: Selected CRE and Construction Loan Portfolios
Selected CRE and Construction Loan Portfolios Residential CRE Portfolio Retail CRE Portfolio Construction Portfolio % based on $1.96 billion loans outstanding % based on $1.4 billion loans reviewed % based on $624 million loans outstanding 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% classification t
Slide 9: 3Q 2020: Residential Mortgage Portfolio
3Q 2020: Residential Mortgage Portfolio Geographic Distribution of SFR LTV Distribution Residential Mortgage • $360,918 avg. outstanding size • weighted avg. LTV 54% NY 51% to 55% 56% to 60% 35% 14% 17% $4.6 Billion Residential Mortgage* Under 50% Over 60% CA 33% 36% 54% WA 4% TX 2% NJ 2% Other 3% (
Slide 10: Allowance for Loan and Lease Losses (ALLL)
Allowance for Loan and Lease Losses (ALLL) ALLL Ratio ALLL Composition $179 $ in millions 180 $ in millions $170 $20.4 $179 160 $148 $19.6 180 $170 3.00% Millions $17.4 $32.7 $126 $26.7 140 160 $148 $123 2.50% $126 120 $12.2 $13.1 $23.2 $123 140 120 2.00% 100 $21.7 $19.5 $41.1 $46.7 100 80 $39.9 80
Slide 11: Asset Quality Metrics
Asset Quality Metrics Classified Loans Ratio Reserves and Net Charge-Offs $ in millions 1.40% 800 10.00% 1.20% 1.09% 1.15% 9.00% 0.95% 700 0.85% 8.00% 0.82% 1.00% 600 500 $174 $183 $182 $229 $282 7.00% 6.00% 0.80% 400 5.00% 0.60% 4.00% 300 200 $460 $447 $437 $414 $394 3.00% 0.40% 2.00% 100 1.00% 0.2
Slide 12: Deposit Mix
Deposit Mix MMA 20% Total Deposit IB Checking & Savings • $16.0 billion Time 16% as of 9.30.20 43% DDA 21% Average Deposits $ in billions $15.8 +9% $16.2 16 $14.5 $14.3 $14.9 +24% $2.8 $3.1 20% +16% $2.4 $2.0 $2.0 14 -4% 10% 12 $2.0 $2.0 $2.1 $2.1 $2.5 0% 10 8 $2.8 $2.8 $2.9 $3.0 $3.3 -10% -20% 6 $7
Slide 13: Summary Income Statement
Summary Income Statement $ in millions, except per share data 9.30.20 6.30.20 $ Change % Change Net Interest Income $ 137.5 $ 134.5 $ 3.0 2.2% Fee income 11.6 9.8 1.8 18.4% Net (losses) / Gains from equity securities (1.6) 5.8 (7.4) 195.1% Total Noninterest Income 10.0 15.6 (5.6) -35.9% Noninterest
Slide 14: Net Interest Income & Non-interest Income
Net Interest Income & Non-interest Income Net Interest Income Non-Interest Income* 14 $ in millions $ in millions $11.9 $11.6 $10.9 12 $147.0 $10.0 $1.6 $1.8 $9.8 148 3.0% 10 $1.7 $1.6 $2.1 $1.6 $1.3 146 2.0% $1.9 $1.1 8 144 1.0% $1.9 $2.6 $141.2 $3.1 $2.2 142 $140.3 6 $3.0 0.0% $2.0 140 -3.9% -0.7%
Slide 15: Operating Expense & Efficiency
Operating Expense & Efficiency Core Noninterest Expense* 70 Core Noninterest Expense* & Efficiency Ratio* $ in millions $ in millions 70 100.00% $58.2 $57.9 $59.2 $58.2 $59.2 60 $57.9 $55.2 90.00% $55.4 60 $53.7 $53.7 $6.5 80.00% $6.2 $6.0 50 $5.4 70.00% $2.6 $2.4 $2.0 50 $6.8 60.00% $2.4 $5.2 40 $6
Slide 16: Strong Capital Ratios
Strong Capital Ratios • Capital Ratio well above regulatory standards that continues to place Cathay in the “well capitalized” category, 16.00% 15.23% calculated under the Basel III capital 13.22% 13.22% rules. 14.00% 10.50% 10.51% 12.00% • Book Value Per Common Share is 8.50% 10.00% 8.00% 7.00% $29
Slide 17: Cathay General Bancorp
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