Cathay General Bancorp · NASDAQ:CATY
Cathay General Bancorp — Q4 2024 Earnings Presentation
23 slides from Cathay General Bancorp's earnings presentation, Jan 22, 2025
Slide 1: Financial Earnings Results
Financial Earnings Results Fourth Quarter and Full Year 2024 January 22, 2025
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 4Q 2024
Financial Highlights 4Q 2024 Quarterly Results Ending Profitability: Return on Assets & Equity Return on Tangible Equity * December 31, 2024 ROAA ROAE 15.00% $80.2mn 15.00% 13.00% 12.21% 13.00% 14.04% 13.03% 11.00% 10.40% 11.18% 11.00% 11.95% Net Income 9.63% 9.50% 11.11% 11.05% 9.00% 9.00% 7.00% 7.
Slide 4: Summary Highlights: 4Q and Full Year 2024 Results
Summary Highlights: 4Q and Full Year 2024 Results $ in millions, Change Change Full Year Change except per share data 4Q24 4Q24 v. 3Q24 4Q24 v. 4Q23 2024 YoY Earnings Net Income $ 80.2 19% (3)% $ 286.0 (19)% Basic EPS $ 1.13 20% (1)% $ 3.97 (19)% Diluted EPS $ 1.12 19% (1)% $ 3.95 (19)% Total Revenu
Slide 5: Summary Balance Sheets
Summary Balance Sheets $mn, except per share data 12.31.24 9.30.24 QoQ Change Cash equivalents & ST investments $ 1,040 $ 1,339 $ (299) AFS debt securities 1,547 1,508 39 Gross loans, net of fees $ 19,365 $ 19,363 $ 2 Allowance for credit losses (162) (164) 2 Net Loans $ 19,204 $ 19,199 $ 4 Other as
Slide 6: Loan Composition
Loan Composition Total Loan Portfolio ($bn) Average Loan Growth – QoQ Annualized ($bn) $19.5 -1.2% $19.4 -0.6% $19.4 -1.4% $19.3 Construction 20.000000 $19.3 +3.5% 20.0% 2% $0.4 $0.4 $0.4 $0.3 $0.5 $3.2 $3.2 $3.0 18.000000 $3.2 $3.2 10.0% 16.000000 Residential Mortgage* 0.0% $19.4bn Total52%CRE 14.0
Slide 7: Loan Yields
Loan Yields Average Loan Yield by Type (in bps) 4Q23 1Q24 2Q24 3Q24 4Q24 8% fixed rate 91% float rate 40% fixed rate 1000 950 847 849 868 846 30% fixed rate 21% float rate 900 850 772 29% float rate 800 750 621 624 628 635 619 598 593 588 594 592 700 650 547 564 572 600 514 531 550 500 450 400 350 3
Slide 8: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio CRE Portfolio Breakdown CRE Geographic Distribution NY Residential 18% Total CRE 34% Construction $10.0bn 52% of total loans 2% $10.0bn Total CRE TX 5% Residential Retail 13% CA 47% IL 3% Mortgage* Other Total CRE 30% $19.4bn 52% 9% WA 2% Total Loans Office 7% C&I 16
Slide 9: Commercial Real Estate Portfolio (cont'd)
Commercial Real Estate Portfolio (cont’d) Total CRE LTV Distribution Total CRE LTV and Size by Property Type Total CRE Loan Avg. Total CRE Portfolio Loan Size Weighted ($mn) ($mn) Avg. LTV 40% to 50% Residental $3,471 $1.3 53% 23% Retail $2,432 $2.1 48% Office $1,449 $2.2 47% 50% to 60% Warehouse $1
Slide 10: 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 11: CRE Office Portfolio
CRE Office Portfolio Office CRE Portfolio Office CRE Distribution % based on $1.4bn loans outstanding Office CRE Loan Total CRE 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Portfolio Weighted Avg. LTV Property Type ($mn) ($mn) Office Building 36% Office Building $518 46% Office Office Condominium $40
Slide 12: Residential Mortgage Portfolio
Residential Mortgage Portfolio Resi. Mortgage Geographic Distribution Single-Family Resi. LTV Distribution >50% to 55% 10% NY 37% 50% or Under 35% 54% > 55% to 60% 16% $6.0bn LTV Weighted Average Residential Mortgage* $415,515 CA Outstanding Size Average 49% WA 5% Over 60% TX 3% 39% NJ 2% Other 4% *
Slide 13: Asset Quality Metrics
Asset Quality Metrics ALLL Composition ($mn) Reserves and Net Charge-Offs (%) CRE C&I Residential Mortgage Construction Total ALLL ALLL / Gross Loans NCOs/Avg Loans (annualized) Reserve Rate 1.00% $164 $162 0.85% 0.83% 0.83%* 0.79% 0.80% 0.79% 180 7% $155 0.90% $155 $153 160 $8 $8 2.56% 0.80% $8 $9
Slide 14: Deposit Mix
Deposit Mix Total Deposits ($bn) Average Deposit Growth – QoQ Annualized ($bn) Time DDA MMA IB Checking & Savings MMA $19.9 +1% $19.9 +1% $19.9 17% 20 $19.6 -1% $19.5 +7% $3.2 $3.3 $3.4 20% IB Checking & 18 $3.6 $3.4 Savings 16 10% 17% $3.2 $3.1 $3.2 $3.1 $3.3 $19.7bn 14 0% Time 12 $3.3 $3.3 $3.2 $3
Slide 15: Summary Income Statements
Summary Income Statements $mn, except per share data 12.31.24 9.30.24 $ Change % Change Net Interest Income $ 171.0 $ 169.2 $ 1.9 1% Noninterest income 16.8 16.1 0.7 4% Net (losses) / Gains from equity securities (1.3) 4.3 (5.6) (131)% Total Noninterest Income 15.5 20.4 (4.9) (24)% Core noninterest
Slide 16: 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 8.50% 8.50% 8.50% 8.44% 5.3
Slide 17: Non-Interest Income
Non-Interest Income Non-Interest Income* ($mn) other operating income wealth management fees letter of credit commissions deposit account fees $16.8 $16.1 18 $14.5 $14.6 $1.7 $14.1 $1.6 16 $1.6 $1.9 $2.1 $2.0 $1.4 14 12 $1.7 $1.7 $1.9 10 $6.2 $6.5 8 $4.8 $5.6 $5.5 6 $6.9 4 $6.2 $5.6 $5.3 $5.9 2 - 4Q
Slide 18: Operating Expense & Efficiency
Operating Expense & Efficiency Core Noninterest Expense* ($mn) Core Noninterest Expense* & Efficiency Ratio* ($mn) Noninterest Expense* Efficiency Ratio* 85 $75.4 $74.2 $74.9 $72.0 $72.0 $75.4 $74.2 $74.9 $72.0 $72.0 75 50.00% $6.6 $6.9 $6.5 $6.8 $5.8 43.0% 70 $3.2 $2.2 41.6% $3.7 45.00% 65 $3.1 $3.
Slide 19: Strong Capital Ratios
Strong Capital Ratios Key Capital Ratios (%) Highlights • Capital Ratio well above regulatory 15.09% 16.00% standards that continues to place 14.00% 13.55% 13.55% Cathay in the “well capitalized” category, calculated under the Basel III capital 10.97% rules. 12.00% 10.50% • Book Value Per Common Sha
Slide 20: Management Guidance Full Year 2025
Management Guidance Full Year 2025 Full Year Full Year 2025 Guidance 2024 Actual Loans, • Estimated growth rate 3% to 4%. $19.4 billion end of period (0.9)% YoY Deposits • Estimated growth rate 3% to 4%. $19.7 billion +1.9% YoY Core • Estimated growth rate 4.5% to 5.5%. $295.4 million Noninterest Ex
Slide 21: Appendix
Appendix is
Slide 22: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation Selected Consolidation Financial Information ($ 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 23: Cathay General Bancorp
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