Cathay General Bancorp · NASDAQ:CATY
Cathay General Bancorp — Q1 2022 Earnings Presentation
20 slides from Cathay General Bancorp's earnings presentation, Apr 25, 2022
Slide 1: Financial Earnings Results. First Quarter 2022
Financial Earnings Results. First Quarter 2022 April 25, 2022
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 2022
Financial Highlights 1Q 2022 Quarterly results ending March 31, 2022 Profitability: Return on Assets & Equity Pre-Tax Pre-Provision Income Ratio Net Income 16.00% $ in millions $119 • $75.0 million $120.00 3.00% $114 14.00% 12.53% $105 Diluted EPS $110.00 12.23% 12.12% 12.29% 12.00% 11.61% $102 $100
Slide 4: Summary Balance Sheets
Summary Balance Sheets $ in millions, except per share data 3.31.22 12.31.21 QoQ Change Cash equivalents & ST investments $ 1,258 $ 2,450 $ (1,192) AFS debt securities 1,220 1,127 93 Gross loans, net of discounts $ 17,394 $ 16,338 $ 1,056 Allowance for credit losses (146) (136) (10) Net Loans $ 17,2
Slide 5: HSBC West Coast Acquisition
HSBC West Coast Acquisition Loan Growth Average Deposit Growth Average 18 $ in billions $ in billions 20.0% 18 $17.9 18 10.0% 20.0% $16.9 0.0% 18 $0.3 10.0% 17 +15% $0.4 18 0.0% 17 +20.3% -10.0% $16.1 17 $17.3 -10.0% -20.0% 16 +10.8% +7.4% -20.0% $16.6 -30.0% 17 $17.6 -30.0% 16 $16.1 -40.0% 17 $17.3
Slide 6: Loan Composition
Loan Composition Average Loan Growth – QoQ Annualized $ in billions Construction $16.9 Total Loan Portfolio 4% $15.7 $15.7 $15.8 +8.4% $16.1 +20.3% $0.6 30% • $17.4 billion Residential 16.000000 $0.7 $0.7 $0.7 $0.6 Mortgage* +3% $3.0 20% 14.000000 $2.9 $2.9 $2.9 $2.9 30% -0.2% as of 3.31.22 10% Tota
Slide 7: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio Total CRE Geographic Distribution Total CRE $8.4 billion 48% of total loans Residential 15% NY 32% Construction 4% Total CRE CA $8.4 Billion Residential Retail 11% 50% Mortgage* 30% TX 5% Total Loans Total CRE WA 2% $17.4 Billion 48% IL 3% Office 8% Other 8% C&I Ware
Slide 8: Commercial Real Estate Portfolio: LTV Distribution
Commercial Real Estate Portfolio LTV Distribution of Total CRE $8.4 Billion LTV & Size by Property Type • $1.61 mil avg. outstanding size Total CRE • weighted avg. LTV 51% Total CRE Weighted $ in millions Loan Portfolio Avg. LTV Residental $ 2,608 55% Retail $ 1,928 50% Office $ 1,372 49% 40% to 50%
Slide 9: Selected CRE and Construction Loan Portfolios
Selected CRE and Construction Loan Portfolios Residential CRE Portfolio Retail CRE Portfolio Construction Portfolio % based on $2.61 billion loans outstanding % based on $1.93 billion loans outstanding % based on $632 million loans outstanding 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0% 10% 20% 30%
Slide 10: Residential Mortgage Portfolio
Residential Mortgage Portfolio Geographic Distribution of SFR LTV Distribution Residential Mortgage • $394,736 avg. outstanding size • weighted avg. LTV 55% NY 56% to 60% 33% 51% to 55% 17% 10% $5.2 Billion Residential CA Mortgage* 54% Under 50% Over 60% 34% 39% WA 5% TX 3% NJ 2% Other 3% * Resident
Slide 11: 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 180 180 3.00% Millions 160 $147 $146 $147 160 $146 $136 $131 $132 2.50% $132 $136 140 140 $131 $30.9 $29.6 $25.4 120 2.00% 120 $27.0 $26.4 100 100 $65.7
Slide 12: Asset Quality Metrics
Asset Quality Metrics Classified Loans Ratio Reserves and Net Charge-Offs $ in millions 800 8.00% 1.00% 0.94% 700 $266 7.00% 0.84% 0.83% 0.83% 0.84% $266 $253 0.80% $314 600 6.00% 500 $219 5.00% 0.60% 400 $499 4.00% $439 $444 300 $389 3.00% 0.40% $337 0.20% 0.18% 0.18% 200 2.00% 0.20% 2.01% 1.69% 0.
Slide 13: Deposit Mix
Deposit Mix Total Deposit Average Deposit Growth – QoQ Annualized • $18.1 billion $ in billions +15% as of 3.31.22 +9% +13% +8% $17.3 $17.9 18 $16.4 $17.0 $16.1 20% MMA 16 $3.1 $3.5 MMA $2.8 $3.0 23% $2.7 10% 28% 14 12 $3.6 $4.0 $4.2 $4.4 $4.8 0% IB Checking IB Checking 10 & Savings & Savings -10% T
Slide 14: Summary Income Statements
Summary Income Statements $ in millions, except per share data 3.31.22 12.31.21 $ Change % Change Net Interest Income $ 159.2 $ 155.5 $ 3.7 2.4% Noninterest income 14.3 17.6 (3.3) (19.0)% Net (losses) / Gains from equity securities 6.0 2.2 3.8 171.3% Total Noninterest Income 20.2 19.8 0.4 2.2% Nonin
Slide 15: Non-interest Income
Non-interest Income Non-Interest Income* $17.6 18 $ in millions 16 $1.5 $1.9 $14.2 $13.5 14 $12.8 $1.7 $1.3 $12.2 12 $1.4 $4.0 $1.5 $1.8 $1.4 $1.7 10 $1.8 $3.9 $4.4 8 $3.6 $3.6 6 $10.2 4 $6.1 $6.4 $6.6 2 $5.4 - 1Q21 2Q21 3Q21 4Q21 1Q22 other operating income wealth management fees letter of credit c
Slide 16: Loan Yields, Deposit Costs and Net Interest Margins
Loan Yields, Deposit Costs and Net Interest Margins Average Loan Yield vs Prime Rate and 1M SOFR Average Cost of Deposits vs Fed Funds Rate 70 0.50% 63 4.13% 4.13% 4.12% 4.04% 3.98% 60 4.00% 0.40% 3.25% 3.25% 3.25% 3.25% 3.29% 50 49 48 44 40 38 37 0.30% 34 33 28 2.00% 30 25 0.20% 20 0.09% 0.12% 0.08
Slide 17: Operating Expense & Efficiency
Operating Expense & Efficiency 70 Core Noninterest Expense* Core Noninterest Expense* & Efficiency Ratio* $ in millions $ in millions $61.1 $60.2 70 45.00% $59.6 $58.7 $59.2 $61.1 $60.2 60 $59.6 $58.7 $59.2 $6.5 $4.7 60 $8.3 $5.9 40.00% $6.9 $1.8 $1.9 50 $1.8 39.2% 50 $1.9 $1.4 $6.7 $7.0 35.00% $6.2
Slide 18: Strong Capital Ratios
Strong Capital Ratios • Capital Ratio well above regulatory standards that continues to place Cathay in the “well capitalized” category, 16.00% calculated under the Basel III capital 13.97% rules. 12.37% 12.37% 14.00% • Book Value Per Common Share is 12.00% 10.50% 10.11% 10.00% 8.50% $32.26 as of 3.
Slide 19: Management Guidance Full Year 2022
Management Guidance Full Year 2022 Full Year Prior Full Year 2022 Guidance Outlook 2021 Actual Loans, end of period Estimated growth rate Estimated growth rate $16.3 billion excluding PPP 9% to 13% 9% to 11% +4.5% YoY Deposits Estimated growth rate Estimated growth rate $18.1 billion 9% to 12% 9% to
Slide 20: Cathay General Bancorp
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