Cathay General Bancorp · NASDAQ:CATY
Cathay General Bancorp — Q3 2024 Earnings Presentation
22 slides from Cathay General Bancorp's earnings presentation, Oct 21, 2024
Slide 1: Financial Earnings Results Third Quarter 2024
Financial Earnings Results Third Quarter 2024 October 21, 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 3Q 2024
Financial Highlights 3Q 2024 Quarterly Results Ending Profitability: Return on Assets & Equity Return on Tangible Equity * September 30, 2024 15.00% ROAA ROAE 15.00% 13.00% 12.36% 12.21% 13.00% 14.62% 14.04% $67.5mn 11.00% 10.40% 11.00% 11.95% Net Income 9.63% 9.50% 11.11% 11.05% 9.00% 9.00% 7.00% 5
Slide 4: Summary Balance Sheets
Summary Balance Sheets $mn, except per share data 9.30.24 6.30.24 QoQ Change Cash equivalents & ST investments $ 1,339 $ 1,105 $ 234 AFS debt securities 1,508 1,649 (140) Gross loans, net of discounts $ 19,363 $ 19,347 $ 16 Allowance for credit losses (164) (153) (10) Net Loans $ 19,199 $ 19,193 $ 6
Slide 5: Loan Composition
Loan Composition Total Loan Portfolio ($bn) Average Loan Growth – QoQ Annualized ($bn) +8.2% $19.3 +3.5% $19.5 -1.2% $19.4 +0.5% $19.5 Construction 20.000000 $19.0 20.0% 2% $0.4 $0.4 $0.4 $0.5 $0.5 18.000000 $3.2 $3.2 $3.2 $3.2 $3.2 10.0% 16.000000 Residential Mortgage* 0.0% $19.4bn Total51%CRE 14.0
Slide 6: Loan Yields
Loan Yields Average Loan Yield by Type (in bps) 3Q23 4Q23 1Q24 2Q24 3Q24 9% fixed rate 90% float rate 1000 950 849 868 30% fixed rate 39% fixed rate 900 840 847 846 850 27% float rate 23% float rate 800 750 700 613 621 624 628 635 595 598 593 588 594 650 547 564 600 514 531 550 496 500 450 400 350 3
Slide 7: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio CRE Portfolio Breakdown CRE Geographic Distribution NY Residential 18% Total CRE 34% Construction $10.0bn 51% of total loans 2% $10.0bn Total CRE TX 5% Residential Retail 12% CA 47% IL 3% Mortgage* $19.4bn Total CRE Other 31% 9% WA 2% 51% Total Loans Office 8% C&I 16
Slide 8: Commercial Real Estate Portfolio (cont'd)
Commercial Real Estate Portfolio (cont’d) Total CRE LTV Distribution Total CRE LTV and Size by Property Type Total CRE Loan Avg. Total CRE Portfolio Loan Size Weighted ($mn) ($mn) Avg. LTV 40% to 50% Residental $3,458 $1.3 53% 23% Retail $2,383 $2.1 49% Office $1,491 $2.2 47% 50% to 60% Warehouse $1
Slide 9: Selected CRE and Construction Loan Portfolios
Selected CRE and Construction Loan Portfolios Residential CRE Portfolio Retail CRE Portfolio Construction Portfolio % based on $3.5bn loans outstanding % based on $2.4bn loans outstanding % based on $0.3bn 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 35% Office Building $522 47% Office Office Condominium $40
Slide 11: Residential Mortgage Portfolio
Residential Mortgage Portfolio Resi. Mortgage Geographic Distribution Single-Family Resi. LTV Distribution >50% to 55% 10% NY 50% or Under 37% 35% 54% > 55% to 60% 16% $6.0bn LTV Weighted Average Residential Mortgage* $417,113 CA Outstanding Size 50% Average WA 4% Over 60% TX 3% 39% NJ 2% Other 4% *
Slide 12: Asset Quality Metrics
Asset Quality Metrics ALLL Composition ($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 $164 0.85%* 7% 0.90% 0.81% 0.85% $155 $155 $155 $153 0.79% 0.80% 0.79% 160 $8 2.76% 6% 0.80% $15 $8
Slide 13: Deposit Mix
Deposit Mix Total Deposits ($bn) Average Deposit Growth – QoQ Annualized ($bn) Time DDA MMA IB Checking & Savings MMA $19.9 $19.3 $19.6 -1% $19.5 +7% $19.9 +1% 16% 20 +5% 20% 18 $3.6 $3.4 $3.2 $3.3 IB Checking & $3.6 Savings 10% 16 $3.2 $3.1 $3.2 $3.1 17% $3.0 $19.9bn 14 0% Time 51% 12 $3.3 $3.3 $3.
Slide 14: Summary Income Statements
Summary Income Statements $mn, except per share data 9.30.24 6.30.24 $ Change % Change Net Interest Income $ 169.2 $ 165.3 $ 3.8 2% Noninterest income 24.6 14.6 10.0 68% Net (losses) / Gains from equity securities (4.3) (1.4) (2.8) (197)% Total Noninterest Income 20.4 13.2 7.1 54% Noninterest expens
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% 8.50% 8.4
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 $16.1 $14.5 $14.6 16 $14.1 $14.1 $1.6 $1.6 $1.9 14 $1.5 $1.4 $2.1 12 $1.7 $1.7 $1.7 $1.9 10 $6.5 8 $5.2 $4.8 $5.6 $5.5 6 4 $5.7 $6.2 $5.6 $5.3 $5.9 2 - 3Q
Slide 17: Operating Expense & Efficiency
Operating Expense & Efficiency Core Noninterest Expense* ($mn) Core Noninterest Expense* & Efficiency Ratio* ($mn) Noninterest Expense* Efficiency Ratio* 85 $75.4 $74.2 $72.0 $72.0 $75.4 $74.2 $72.0 $72.0 75 50.00% $70.1 $6.6 $70.1 $6.9 $5.8 70 $6.8 $3.2 43.0% $6.5 45.00% $3.7 41.6% 65 $3.1 $3.2 60
Slide 18: Strong Capital Ratios
Strong Capital Ratios Key Capital Ratios (%) Highlights • Capital Ratio well above regulatory 14.88% 16.00% standards that continues to place 14.00% 13.33% 13.33% Cathay in the “well capitalized” category, calculated under the Basel III capital rules. 12.00% 10.82% 10.50% 10.00% • Book Value Per Com
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 (1)% to 0%. • Estimated growth rate 0% to 2%. $19.5 billion end of period +7.1% YoY Deposits • Estimated growth rate 3% to 4%. • Estimated growth rate 3% to 4%. $19.3 billion
Slide 20: Appendix
Appendix hs
Slide 21: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation Selected Consolidation Financial Information ($ 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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