Cathay General Bancorp · NASDAQ:CATY
Cathay General Bancorp — Q3 2021 Earnings Presentation
17 slides from Cathay General Bancorp's earnings presentation, Oct 25, 2021
Slide 1: Financial Earnings Results. Third Quarter 2021
Financial Earnings Results. Third Quarter 2021 October 25, 2021
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 2021
Financial Highlights 3Q 2021 3Q ending September 30, 2021 Profitability: Return on Assets & Equity Pre-Tax Pre-Provision Income Ratio Net Income 16.00% $ in millions • $72.4 million $110.00 10.00% $105.4 14.00% $101.6 9.00% 12.53% 12.00% 11.75% 12.23% 11.61% $100.00 8.00% Diluted EPS $90.00 $87.7 $9
Slide 4: Summary Balance Sheets
Summary Balance Sheets $ in millions, except per share data 9.30.21 6.30.21 QoQ Change Cash equivalents & ST investments $ 1,824 $ 1,723 $ 101 AFS debt securities 1,079 1,002 77 Gross loans, net of discounts $ 15,973 $ 15,684 $ 289 Allowance for credit losses (132) (131) (1) Net Loans $ 15,841 $ 15,
Slide 5: 3Q 2021 Loan Composition
3Q 2021 Loan Composition Construction 4% Total Loan Portfolio • Total CRE $7.8 billion Residential • $16.0 billion Mortgage* 29% Total CRE • Residential Mortgage $4.6 billion as of 9.30.21 • C&I Loans $2.7 billion 49% • Paycheck Protection Program $165 million C&I • Construction Loans $688 million 1
Slide 6: 3Q 2021: Commercial Real Estate Portfolio
3Q 2021: Commercial Real Estate Portfolio Total CRE Geographic Distribution Total CRE • $7.8 billion 49% of total loans Residential 15% NY Construction 32% Total CRE 4% $7.8 Billion CA Residential Retail 11% 50% Mortgage* TX 5% 29% Total Loans Total CRE WA 2% $16.0 Billion 49% IL 3% Office 9% Other
Slide 7: 3Q 2021: Commercial Real Estate Portfolio
3Q 2021: Commercial Real Estate Portfolio LTV Distribution of Total CRE $7.8 Billion LTV & Size by Property Type • $1.54 mil avg. outstanding size Total CRE • weighted avg. LTV 51% Total CRE Weighted $ in millions Loan Portfolio Avg. LTV Residental $ 2,353 54% Retail $ 1,739 50% 40% to 50% Office $
Slide 8: Selected CRE and Construction Loan Portfolios
Selected CRE and Construction Loan Portfolios Residential CRE Portfolio Retail CRE Portfolio Construction Portfolio % based on $2.35 billion loans outstanding % based on $1.74 billion loans outstanding % based on $688 million loans outstanding 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 5% 10% 15
Slide 9: 3Q 2021: Residential Mortgage Portfolio
3Q 2021: Residential Mortgage Portfolio Geographic Distribution of SFR LTV Distribution Residential Mortgage • $366,698 avg. outstanding size • weighted avg. LTV 55% NY 37% 56% to 60% 51% to 55% 18% 10% $4.6 Billion Residential Mortgage* Over 60% CA Under 50% 33% 39% 50% WA 4% TX 3% NJ 2% Other 4% *
Slide 10: Allowance for Loan and Lease Losses / Allowance for Credit Losses
Allowance for Loan and Lease Losses (ALLL) / Allowance for Credit Losses (ACL)* ALLL / ACL Ratio ALLL / ACL Composition $ in millions $ in millions $179 $179 180 180 3.00% $167 $167 $20.4 Millions $17.7 160 $147 $147 160 $131 $132 2.50% 140 140 $131 $132 $46.7 $30.9 $49.2 120 2.00% 120 $27.0 $26.4 1
Slide 11: Asset Quality Metrics
Asset Quality Metrics Classified Loans Ratio Reserves and Net Charge-Offs $ in millions 8.00% 1.40% 1.15% 700 $296 $266 $253 7.00% 1.20% 1.06% 600 $282 $314 6.00% 0.94% 0.84% 0.83% 1.00% 500 5.00% 0.80% 400 $421 $439 $444 4.00% 300 $394 0.60% $337 3.00% 0.20% 0.20% 0.40% 0.18% 0.18% 200 2.00% 1.81%
Slide 12: Deposit Mix
Deposit Mix MMA 24% Total Deposit IB Checking & • $17.0 billion Time Savings 18% as of 9.30.21 34% DDA 24% Average Deposit Growth – QoQ Annualized $ in billions +13% +7% +9% $16.4 $17.0 17 $16.2 $15.8 $16.1 -8% 20% $2.5 $2.7 $2.8 $3.0 $2.5 15 10% 13 11 $3.1 $3.3 $3.6 $4.0 $4.2 0% 9 $3.3 $3.3 -10% 7
Slide 13: Summary Income Statements
Summary Income Statements $ in millions, except per share data 9.30.21 6.30.21 $ Change % Change Net Interest Income $ 152.5 $ 148.0 $ 4.5 3.0% Noninterest income 12.2 13.5 (1.3) (9.5)% Net (losses) / Gains from equity securities 0.0 (0.9) 0.9 100.3% Total Noninterest Income 12.2 12.6 (0.4) (3.0)% N
Slide 14: Net Interest Income & Non-interest Income
Net Interest Income & Non-interest Income Net Interest Income Non-Interest Income* $ in millions 14 $ in millions $13.5 $12.8 $12.2 $1.8 155 5.0% $11.6 $152.5 12 $10.7 $1.7 4.5% $1.3 $1.8 +3.0% $1.8 $1.4 $1.7 10 150 4.0% $1.4 $148.0 $1.3 $1.3 $3.9 3.5% 8 $3.6 +4.4% $2.6 $3.6 145 3.0% 6 $2.6 $141.8 2
Slide 15: Operating Expense & Efficiency
Operating Expense & Efficiency 70 Core Noninterest Expense* Core Noninterest Expense* & Efficiency Ratio* $ in millions $ in millions $59.2 $59.5 $59.6 $59.2 70 100.00% 99.00% 98.00% 97.00% $58.7 96.00% $59.2 $59.5 $59.6 $59.2 95.00% $58.7 94.00% 93.00% 92.00% 91.00% 90.00% 60 89.00% 88.00% 87.00% 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% 14.93% calculated under the Basel III capital 14.00% 13.29% 13.29% rules. 10.67% 12.00% 10.50% • Book Value Per Common Share is 10.00% 8.50% $31.50 as of 9.
Slide 17: Cathay General Bancorp
(= Cathay General Bancorp
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