Cathay General Bancorp · NASDAQ:CATY
Cathay General Bancorp — Q1 2021 Earnings Presentation
17 slides from Cathay General Bancorp's earnings presentation, Apr 26, 2021
Slide 1: Financial Earnings Results. First Quarter 2021
Financial Earnings Results. First Quarter 2021 April 26, 2021 8 Cathay General l!=I Bancorp
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 2021
Financial Highlights 1Q 2021 1Q ending March 31, 2021 Profitability: Return on Assets & Equity Pre-Tax Pre-Provision Income Ratio Net Income 16.00% $ in millions • $73.4 million $110.00 10.00% 14.00% 9.00% 12.00% 11.75% 12.23% $100.00 $94.8 $95.7 8.00% Diluted EPS $90.00 $87.7 $91.5 $92.0 7.00% • $0
Slide 4: Summary Balance Sheets
Summary Balance Sheets $ in millions, except per share data 3.31.21 12.31.20 --------, Change I I .- - - - - - , 3.31.20 I YoY Change Cash equivalents & ST investments $ 1,754 $ 1,421 23% $ 500 251% AFS debt securities 909 1,037 (12)% 1,355 (33)% Gross loans, net of discounts $ 15,645 $ 15,642 0% $
Slide 5: 1Q 2021 Loan Composition
1Q 2021 Loan Composition Construction 4% Total Loan Portfolio • Total CRE $7.5 billion Residential • $15.7 billion Mortgage* Total CRE • Residential Mortgage $4.5 billion as of 3.31.21 29% • C & I Loans $2.6 billion 49% • Paycheck Protection Program $334 million • Construction Loans $678 million C&I
Slide 6: 1Q 2021: Commercial Real Estate Portfolio
1Q 2021: Commercial Real Estate Portfolio Total CRE Geographic Distribution Total CRE ---- • $7.5 billion ----- ----- ---- ---- Residential 14% 49% of total loans NY Construction 31% CA Total CRE 4% 51% $7.5 Billion Residential Retail 11% Mortgage* 29% TX 5% Total Loans Total CRE 49% WA 3% $15.7 Bil
Slide 7: 1Q 2021: Commercial Real Estate Portfolio
1Q 2021: 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 $2.22 billion loans outstanding % based on $1.73 billion loans outstanding % based on $678 million loans outstanding 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 5% 10% 15
Slide 9: 1Q 2021: Residential Mortgage Portfolio
1Q 2021: Residential Mortgage Portfolio Geographic Distribution of SFR LTV Distribution Residential Mortgage • $358,682 avg. outstanding size • weighted avg. LTV 55% NY 36% 56% to 60% 51% to 55% 19% 12% $4.5 Billion Residential Mortgage* Under 50% Over 60% CA 32% 37% 53% WA 4% TX 2% NJ 2% Other 3% L
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 D - $179 $179 D - - D 180 $170 $167 180 $170 $167 3.00% $20.4 D $161 Millions $161 D - 160 $148 $19.6 $17.7 $148 160 2.50% $29.1 140 $17.4 140 $46.7 $41
Slide 11: Asset Quality Metrics
Asset Quality Metrics Classified Loans Ratio Reserves and Net Charge-Offs $ in millions 8.00% 1.40% 700 1.09% 1.15% $296 7.00% 1.20% 1.06% 1.03% 600 $229 $282 $314 0.95% 500 $182 6.00% 1.00% 5.00% 0.80% 400 $437 $414 $421 4.00% $394 0.60% 300 $337 3.00% 0.40% 200 2.00% 1.89% 2.01% 0.20% 0.00% 0.02%
Slide 12: Deposit Mix
Deposit Mix MMA 23% Total Deposit IB Checking & • $16.4 billion Savings as of 3.31.21 Time 17% 38% DDA 22% Average Deposits $ in billions D □- □ +9% $16.2 +7% $16.1 - $15.8 $15.8 - 17 $14.9 +24% -8% 20% 15 $2.3 $2.5 $2.5 $2.7 13 $2.1 10% 11 $2.4 $2.8 $3.1 $3.3 $3.6 0% 9 -10% 7 $7.5 $7.6 $7.3 $6.7 $6
Slide 13: Summary Income Statements
Summary Income Statements ,----------------, I $ in millions, except per share data 3.31.21 12.31.20 $ Change % Change Net Interest Income $ 141.8 $ 139.8 $ 2.0 1.4% Noninterest income 12.8 10.7 2.1 20.0% Net (losses) / Gains from equity securities (2.8) 0.8 (3.6) (459.0)% Total Noninterest Income 1
Slide 14: Net Interest Income & Non-interest Income
Net Interest Income & Non-interest Income Net Interest Income Non-Interest Income* $ in millions $ in millions - 14 $12.8 144 3.0% $11.9 $11.6 12 $10.7 $1.7 $141.8 2.0% $1.6 $9.8 $1.8 142 $1.4 $1.7 10 $140.3 +1.4% $2.1 $1.3 $139.8 1.0% $1.6 140 8 $1.3 $3.6 $1.1 +1.7% $2.6 0.0% $3.1 $2.6 138 $137.5 6
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 70 100.00% $59.2 $59.5 $59.6 90.00% $55.4 60 $55.4 -- 60 $53.7 $53.7 $6.5 $7.6 80.00% $8.3 - 50 70.00% $5.4 $2.0 50 $6.8 $2.1 $1.9 60.00% $2.4 - - -
Slide 16: Strong Capital Ratios
Strong Capital Ratios • Capital Ratio well above regulatory standards that continues to place Cathay 18.00% in the “well capitalized” category, 15.84% calculated under the Basel III capital 13.94% 13.94% 16.00% rules. 14.00% 11.06% 10.50% • 12.00% Book Value Per Common Share is 8.50% 10.00% $30.83 a
Slide 17: Cathay General Bancorp
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