Cathay General Bancorp · NASDAQ:CATY
Cathay General Bancorp — Q4 2020 Earnings Presentation
18 slides from Cathay General Bancorp's earnings presentation, Jan 27, 2021
Slide 1: Financial Earnings Results: Fourth Quarter and Full Year 2020
Financial Earnings Results. Fourth Quarter and Full Year 2020 January 27, 2021
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 2020
Financial Highlights 4Q 2020 4Q ending December 31, 2020 Profitability: Return on Assets & Equity Pre-Tax Pre-Provision Income Ratio Net Income 14.00% $110.00 $ in millions 10.00% • $70.9 million 11.75% 11.75% 9.00% Diluted EPS 12.00% $95.7 $100.00 $94.8 8.00% $91.5 $91.5 10.00% 9.31% 9.53% $90.00 $
Slide 4: Summary Highlights: 4Q and Full Year 2020 Results
Summary Highlights: 4Q and Full Year 2020 Results $ in millions, 4Q20 v. 3Q20 4Q20 v. 4Q19 Full Year YoY except per share data 4Q20 Change Change 2020 Change Earnings Net Income $ 70.9 25% 5% $ 228.9 (18)% Basic EPS $ 0.89 25% 5% $ 2.88 (17)% Diluted EPS $ 0.89 25% 6% $ 2.87 (18)% Total Revenue $ 15
Slide 5: Summary Balance Sheets
Summary Balance Sheets $ in millions, except per share data 12.31.20 9.30.20 Change 12.31.19 YoY Change Cash equivalents & ST investments $ 1,421 $ 1,434 (1)% $ 594 139% AFS debt securities 1,037 1,081 (4)% 1,452 (29)% Gross loans, net of discounts $ 15,642 $ 15,561 1% $ 15,075 4% Allowance for cred
Slide 6: 4Q 2020 Loan Composition
4Q 2020 Loan Composition Construction 4% Total Loan Portfolio • Total CRE $7.6 billion Residential • $15.6 billion Mortgage* Total CRE • Residential Mortgage $4.6 billion as of 12.31.20 29% • C & I Loans $2.6 billion 48% • Paycheck Protection Program $241 million C&I • Construction loans $0.6 billio
Slide 7: 4Q 2020: Commercial Real Estate Portfolio
4Q 2020: Commercial Real Estate Portfolio Total CRE Geographic Distribution Total CRE • $7.6 billion 48% of total loans Residential 14% NY 31% Construction CA Total CRE 4% 51% $7.6 Billion Residential Retail 11% Mortgage* 29% TX 5% Total Loans Total CRE WA 3% $15.6 Billion 48% Office 9% IL 2% Other
Slide 8: 4Q 2020: Commercial Real Estate Portfolio
4Q 2020: Commercial Real Estate Portfolio LTV Distribution of Total CRE $7.6 Billion LTV & Size by Property Type • $1.53 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 9: Selected CRE and Construction Loan Portfolios
Selected CRE and Construction Loan Portfolios Residential CRE Portfolio Retail CRE Portfolio Construction Portfolio % based on $2.21 billion loans outstanding % based on $1.72 billion loans outstanding % based on $679 million loans outstanding 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 5% 10% 15
Slide 10: 4Q 2020: Residential Mortgage Portfolio
4Q 2020: Residential Mortgage Portfolio Geographic Distribution of SFR LTV Distribution Residential Mortgage • $363,937 avg. outstanding size • weighted avg. LTV 54% NY 51% to 55% 56% to 60% 35% 14% 17% $4.6 Billion Residential Mortgage* Under 50% CA 34% Over 60% 53% 35% WA 4% TX 3% NJ 2% Other 3% (
Slide 11: Allowance for Loan and Lease Losses (ALLL)
Allowance for Loan and Lease Losses (ALLL) ALLL Ratio ALLL Composition $179 $ in millions 180 $ in millions $170 $167 $20.4 $179 160 $148 $19.6 $17.7 180 $170 $167 3.00% Millions $17.4 $46.7 140 160 $148 $123 $41.1 $49.2 2.50% $13.1 120 $123 140 $39.9 120 2.00% $26.7 $32.7 100 $33.6 100 1.50% 80 $23
Slide 12: Asset Quality Metrics
Asset Quality Metrics Classified Loans Ratio Reserves and Net Charge-Offs $ in millions 1.40% 6.00% 700 1.09% 1.15% $296 1.20% 1.06% $282 5.00% $229 0.95% 600 $183 $182 0.82% 1.00% 500 4.00% 0.80% $447 400 $437 $414 $421 3.00% 300 $394 0.60% 2.00% 0.40% 200 1.81% 1.89% 1.47% 1.00% 0.20% 0.00% 0.02%
Slide 13: Deposit Mix
Deposit Mix MMA 21% Total Deposit IB Checking & • $16.1 billion Time Savings 17% as of 12.31.20 41% DDA 21% Average Deposits $ in billions $15.8 +9% $16.2 -8% $15.8 17 $14.9 +24% $14.3 20% 15 +16% $2.3 $2.5 $2.5 13 $2.0 $2.1 10% $2.4 $2.8 $3.1 $3.3 11 $2.0 0% 9 -10% 7 $7.5 $7.5 $7.6 $7.3 $6.7 -20% 5
Slide 14: Summary Income Statements
Summary Income Statements $ in millions, except per share data 12.31.20 9.30.20 $ Change % Change Net Interest Income $ 139.8 $ 137.5 $ 2.3 1.7% Noninterest income 10.7 11.6 (0.9) (7.8)% Net (losses) / Gains from equity securities 0.8 (1.6) 2.4 150.0% Total Noninterest Income 11.5 10.0 1.5 15.0% Non
Slide 15: Net Interest Income & Non-interest Income
Net Interest Income & Non-interest Income Net Interest Income Non-Interest Income* $ in millions 14 $ in millions 142 $141.2 3.0% $11.9 $11.6 $10.9 12 $140.3 $10.7 $139.8 $1.6 $9.8 $1.8 -0.7% 2.0% 140 10 $1.7 $1.7 $2.1 $1.6 $1.3 1.7% $1.9 $1.3 1.0% $1.1 8 138 $137.5 $2.6 -4.1% 0.0% $3.1 $2.6 6 $3.0
Slide 16: Operating Expense & Efficiency
Operating Expense & Efficiency 70 Core Noninterest Expense* Core Noninterest Expense* & Efficiency Ratio* $ in millions $ in millions $59.2 $59.5 70 100.00% $57.9 $57.9 $59.2 $59.5 $55.4 90.00% $55.4 60 60 $53.7 $53.7 $6.5 $7.6 80.00% $6.0 50 $5.4 70.00% $2.4 $2.0 $2.1 50 $6.8 60.00% $2.4 $5.2 40 $5
Slide 17: Strong Capital Ratios
Strong Capital Ratios • Capital Ratio well above regulatory standards that continues to place Cathay 18.00% in the “well capitalized” category, 16.00% 15.45% calculated under the Basel III capital 13.52% 13.52% rules. 14.00% 10.50% 10.94% • Book Value Per Common Share is 12.00% 8.50% $30.41 as of 12
Slide 18: Cathay General Bancorp
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