Cathay General Bancorp · NASDAQ:CATY
Cathay General Bancorp — Q4 2023 Earnings Presentation
23 slides from Cathay General Bancorp's earnings presentation, Jan 24, 2024
Slide 1: Financial Earnings Results: Fourth Quarter and Full Year 2023
Financial Earnings Results Fourth Quarter and Full Year 2023 January 24, 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 4Q 2023
Financial Highlights 4Q 2023 Quarterly results ending Profitability: Return on Assets & Equity Return on Tangible Equity* December 31, 2023 20.00% 22.00% 18.00% Net Income 15.73% 15.39% 18.82% • $82.5 million 16.00% 14.47% 17.80% 17.00% 14.00% 16.85% 12.36% 12.21% 14.62% 14.04% 12.00% 12.00% Diluted
Slide 4: Summary Highlights: 4Q and Full Year 2023 Results
Summary Highlights: 4Q and Full Year 2023 Results $ in millions, Change Change Full Year Change except per share data 4Q23 4Q23 v. 3Q23 4Q23 v. 4Q22 2023 YoY Earnings Net Income $ 82.5 0% (15)% $ 354.1 (2)% Basic EPS $ 1.14 0% (14)% $ 4.88 1% Diluted EPS $ 1.13 0% (15)% $ 4.86 1% Total Revenue $ 205
Slide 5: Summary Balance Sheets
Summary Balance Sheets $ in millions, except per share data 12.31.23 9.30.23 QoQ Change Cash equivalents & ST investments $ 829 $ 1,163 $ (334) AFS debt securities 1,605 1,509 96 Gross loans, net of discounts $ 19,537 $ 19,014 $ 523 Allowance for credit losses (155) (155) 0 Net Loans $ 19,383 $ 18,8
Slide 6: Loan Composition
Loan Composition Total Loan Portfolio Average Loan Growth – QoQ Annualized • $19.5 billion Construction 2% $ in billions $19.3 as of 12.31.23 $19.0 $19.0 +8.2% 20.000000 $18.1 +2.8% $18.2 +15.6% +0.1% 20.0% $0.5 $0.5 $0.5 Residential $0.6 $0.6 $3.2 18.000000 Mortgage* $3.3 $3.2 10.0% 16.000000 $3.3
Slide 7: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio Total CRE Geographic Distribution Total CRE $9.7 billion 50% of total loans NY 34% Residential 17% CA Total CRE Construction 47% $9.7 Billion 2% TX 5% Residential IL 3% Mortgage* Retail 12% 31% WA 2% Total Loans Total CRE $19.5 Billion 50% Other 9% Office 8% C&I Ware
Slide 8: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio LTV Distribution of Total CRE $9.7 Billion LTV & Size by Property Type • $1.80 mil avg. outstanding size Total CRE • weighted avg. LTV 50% Total CRE Weighted $ in millions Loan Portfolio Avg. LTV Residental $ 3,327 54% Retail $ 2,280 49% 40% to 50% Office $ 1,539 48%
Slide 9: Selected CRE and Construction Loan Portfolios
Selected CRE and Construction Loan Portfolios Residential CRE Portfolio Retail CRE Portfolio Construction Portfolio % based on $3.33 billion loans outstanding % based on $2.28 billion loans outstanding % based on $423 million loans outstanding 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 5% 10% 15
Slide 10: Selected CRE and Construction Loan Portfolios (cont'd)
Selected CRE and Construction Loan Portfolios (cont’d) Office CRE Portfolio Office CRE Loan Total CRE % based on $1.54 billion loans outstanding $ in millions Portfolio Weighted Avg. LTV 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Office CRE Portfolio Office Building 34% Office Building $ 518 46% Of
Slide 11: Residential Mortgage Portfolio
Residential Mortgage Portfolio Geographic Distribution of SFR LTV Distribution Residential Mortgage • $419,462 avg. outstanding size • weighted avg. LTV 54% NY 56% to 60% 36% 51% to 55% 16% 10% $6.1 Billion Residential CA Mortgage* Over 60% 51% Under 50% 40% 34% WA 4% TX 3% NJ 2% Other 4% * Resident
Slide 12: Allowance for Loan and Lease Losses (ALLL)
Allowance for Loan and Lease Losses (ALLL) ALLL Ratio ALLL Composition $ in millions $ in millions 180 180 1.50% Millions $155 $155 $155 $155 $155 $155 $146 $146 $145 160 $145 160 1.30% $18.2 $20.3 $18.2 $18.3 $17.6 140 140 1.10% 120 120 $73.5 $74.4 0.90% $76.4 100 $68.4 100 $70.4 80 0.80% 0.79% 0.8
Slide 13: Asset Quality Metrics
Asset Quality Metrics Reserves and Net Charge-Offs Classified Loans Ratio 1.00% $ in millions 600 6.00% 5.90% 5.80% 5.70% 0.90% 0.80% 0.79% 0.82% 0.81% 0.79% 5.60% 5.50% 5.40% 0.80% $256 5.30% 5.20% 5.10% 5.00% 4.90% 500 4.80% 0.70% 4.70% $200 4.60% $240 4.50% $202 4.40% 4.30% 4.20% $193 4.10% 0.60%
Slide 14: Deposit Mix
Deposit Mix Total Deposits Average Deposit Growth – QoQ Annualized $ in billions • $19.3 billion $18.7 +4% $18.9 +1% $18.9 +9% $19.3 +5% $19.6 as of 12.31.23 20 MMA 20% 16% 18 $3.3 $3.4 $3.6 $3.6 16 $3.6 10% IB Checking & 14 $3.4 $3.0 $3.0 $3.2 Savings $4.4 0% 18% 12 $3.7 $3.6 $3.6 $4.0 -10% Time 10
Slide 15: Summary Income Statements
Summary Income Statements $ in millions, except per share data 12.31.23 9.30.23 $ Change % Change Net Interest Income $ 182.1 $ 185.6 $ (3.5) (1.9)% Noninterest income 14.2 14.1 0.1 0.7% Net (losses) / Gains from equity securities 9.0 (6.2) 15.2 243.9% Total Noninterest Income 23.1 7.8 15.3 194.8% N
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 8.43% 8.50% 8.16% 5.26% 5.33% 6.00% 8.00% 7.69% 450 4.99% 6.83% 400 4.52% 5.00% 6.21% 350 5.81% 5.93% 6.13% 350 323 6.00% 5.33% 3.65% 291 286 4.00% 263 300 240 2
Slide 17: Non-Interest Income
Non-Interest Income 18 Non-Interest Income* 16 $ in millions $14.1 $14.1 $13.1 $12.4 $12.4 $1.4 14 $1.5 $1.5 $1.7 $1.8 $1.6 $1.7 12 $1.6 10 $1.6 $1.7 $3.9 $5.2 $4.8 $3.6 8 $3.9 6 4 $6.1 $5.1 $5.5 $5.7 $6.2 2 - 4Q22 1Q23 2Q23 3Q23 4Q23 other operating income wealth management fees letter of credit co
Slide 18: Operating Expense & Efficiency
Operating Expense & Efficiency Core Noninterest Expense* Core Noninterest Expense* & Efficiency Ratio* 85 $ in millions $ in millions $70.4 $72.0 80 45.00% $72.0 $67.3 $70.1 $70.4 $70.1 $65.4 75 $67.3 70 $65.4 $6.8 40.00% $8.0 $6.5 60 65 $5.0 $3.1 $7.9 $3.0 $3.1 $3.2 50 35.00% $8.3 36.2% 55 $2.0 $7.
Slide 19: Strong Capital Ratios
Strong Capital Ratios • Capital Ratio well above regulatory standards that continues to place Cathay in the “well capitalized” category, 14.30% 16.00% 14.00% 12.83% 12.83% calculated under the Basel III capital rules. 10.50% 10.55% 12.00% 8.50% • Book Value Per Common Share is 10.00% 8.00% 7.00% $37
Slide 20: Management Guidance Full Year 2024
Management Guidance Full Year 2024 Full Year 2024 Guidance Full Year Compared with 2023 Actual 2023 Actual Loans, • Estimated growth rate 4% to 5%. $19.5 billion end of period +7.1% YoY Deposits • Estimated growth rate 4% to 5%. $19.3 billion +4.4% YoY Core • Estimated growth rate 3.0% to 3.5%. $279
Slide 21: Appendix
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Slide 22: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation Selected Consolidation Financial Information ($ 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
e Cathay General Bancorp
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