Cathay General Bancorp · NASDAQ:CATY
Cathay General Bancorp — Merger or Acquisition (July 2016)
9 slides from Cathay General Bancorp's merger presentation, Jul 8, 2016
Slide 1: Acquisition of SinoPac Bancorp and its subsidiary
Acquisition of July 8, 2016 SinoPac Bancorp and its subsidiary
Slide 2: Forward Looking Statements
2 Forward Looking Statements 2 This presentation contains certain forward - looking information about Cathay General Bancorp (“Cathay”), SinoPac Bancorp and Far East National Bank (“FENB”), and the combined companies after the closing of the acquisition of SinoPac Bancorp by Cathay and the merger of
Slide 3: Transaction Highlights
3 Transaction Highlights 3 Strategically Compelling □ Complementary service oriented business models □ Potential for additional revenue growth from expanded product offerings and cross sell opportunities □ Leverages excess capital Financially Attractive □ Significant operating synergies □ Attractive
Slide 4: FENB – Overview and Background
4 4 Cathay Bank (57 branches) Far East National Bank (9 branches) FENB – Overview and Background □ Far East National Bank (“FENB”) was established in 1974 and is headquartered in Los Angeles □ $1.3 billion in assets; $1.0 billion in deposits as of 3/31/16 □ 9 branches with 5 in Los Angeles, 1 in Ora
Slide 5: FENB – Significantly Strengthened Franchise
5 5 FENB – Significantly Strengthened Franchise Return to Consistent Profitability Significant Excess Capital Vastly Improved Credit Quality Improved Operating Efficiency Source: SNL Financial. Note: Metrics shown are for SinoPac Bancorp, FENB’s US holding company. 1Q ’16 pre - tax pre - provision i
Slide 6: FENB – Loan and Deposit Composition
6 6 FENB – Loan and Deposit Composition Loans Deposits Source: SNL Financial regulatory data as of 3/31/16. Data shown is for SinoPac Bancorp, FENB’s U.S. holding company. (1) Expected to runoff prior to closing of the transaction. 1 - 4 Family 3% Multifamily 8% Own - Occ CRE 8% Non Own - Occ CRE 44
Slide 7: Transaction Overview
7 7 Transaction Overview Merger Consideration: □ Base consideration of $340 million □ Additional consideration equal to the Net Gain (1) on sale of two owned properties Consideration Mix: □ Up to 10% stock / remainder in cash □ Common shares issued will be based on Cathay’s average stock price to be
Slide 8: Expected Impact
8 8 Expected Impact Cathay 3/31/16 SinoPac Bancorp 3/31/16 Pro Forma at Close Well - Capitalized Requirements (1) Holdco Capital Ratios TCE / TA 10.55% 21.13% 10.41% NA CET1 12.60% 22.77% 11.75% 6.50% Tier 1 Capital 13.67% 22.77% 12.69% 8.00% Total Capital 14.93% 24.03% 13.88% 10.00% Tier 1 Leverage
Slide 9: Summary
9 9 Summary □ Attractive use of Cathay’s excess capital that creates value for Cathay’s shareholders □ Complementary relationship and service oriented business models □ Potential for additional revenue growth from expanded product offerings and cross sell opportunities □ Significant operating synerg
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