Cathay General Bancorp · NASDAQ:CATY
Cathay General Bancorp — Q1 2025 Earnings Presentation
22 slides from Cathay General Bancorp's earnings presentation, Apr 21, 2025
Slide 1: Financial Earnings Results First Quarter 2025
Financial Earnings Results First Quarter 2025 April 21, 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 1Q 2025
Financial Highlights 1Q 2025 Quarterly Results Ending Profitability: Return on Assets & Equity Return on Tangible Equity * March 31, 2025 15.00% ROAA ROAE 15.00% 13.00% 13.00% 13.03% $69.5mn 11.18% 11.00% 10.40% 11.00% 11.95% 11.21% Net Income 9.63% 9.50% 9.84% 11.11% 11.05% 9.00% 9.00% 7.00% 5.00%
Slide 4: Summary Balance Sheets
Summary Balance Sheets $mn, except per share data 3.31.25 12.31.24 QoQ Change Cash equivalents & ST investments $ 1,385 $ 1,040 $ 345 AFS debt securities 1,434 1,547 (113) Loans held-for-sale 12 0 12 Gross loans, net of fees $ 19,341 $ 19,365 $ (24) Allowance for credit losses (175) (162) (14) Net L
Slide 5: Loan Composition
Loan Composition Total Loan Portfolio ($bn) Average Loan Growth – QoQ Annualized ($bn) $19.5 $19.4 -0.6% $19.4 -1.4% $19.3 -0.3% $19.3 Construction 20.000000 +-1.2% 10.0% 2% $0.4 $0.4 $0.4 $0.3 $0.3 18.000000 $3.2 $3.2 $3.2 $3.0 $3.0 0.0% 16.000000 Residential Mortgage* $19.4bn 14.000000 -10.0% 30%
Slide 6: Loan Yields
Loan Yields Average Loan Yield by Type (in bps) 1Q24 2Q24 3Q24 4Q24 1Q25 8% fixed rate 1000 92% float rate 950 868 30% fixed rate 40% fixed rate 849 846 22% float rate 900 850 772 29% float rate 800 750 728 700 624 628 635 619 617 650 564 572 578 593 588 594 592 593 600 531 547 550 500 450 400 350 3
Slide 7: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio CRE Portfolio Breakdown CRE Geographic Distribution NY Residential 18% Total CRE 34% Construction $10.2bn 53% of total loans $10.2bn 2% Total CRE TX 5% Retail 13% CA Residential 47% IL 3% $19.4bn Mortgage* Total CRE Other 30% 9% WA 2% 53% Total Loans Office 8% C&I 15
Slide 8: Commercial Real Estate Portfolio (cont'd)
Commercial Real Estate Portfolio (cont’d) Total CRE LTV Distribution Total CRE LTV and Size by Property Type Total CRE Loan Avg. Total CRE Portfolio Loan Size Weighted ($mn) ($mn) Avg. LTV 40% to 50% Residental $3,480 $1.3 53% 23% Retail $2,464 $2.1 48% Office $1,463 $2.3 46% 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 $2.5bn 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 $514 46% Office Office Condominium $40
Slide 11: Residential Mortgage Portfolio
Residential Mortgage Portfolio Resi. Mortgage Geographic Distribution Single-Family Resi. LTV Distribution >50% to 55% NY 10% 37% 50% or Under 36% 53% > 55% to 60% $5.9bn 16% LTV Weighted Average Residential Mortgage* $414,813 CA Outstanding Size Average 49% WA 5% Over 60% TX 3% 38% NJ 2% Other 4% *
Slide 12: Asset Quality Metrics
Asset Quality Metrics ALLL Composition ($mn) Reserves and Net Charge-Offs (%) CRE C&I Residential Mortgage Construction Total ALLL ALLL / Gross Loans NCOs/Avg Loans (annualized) Reserve 0.91% 1.00% Rate 0.90%* 0.90% 0.85% 0.83% 185 $174 8% 0.80% 0.79% $164 $162 2.57% 165 $155 $153 $9 0.80% $8 $8 $15
Slide 13: Deposit Mix
Deposit Mix Total Deposits ($bn) Average Deposit Growth – QoQ Annualized ($bn) Time DDA MMA IB Checking & Savings MMA $19.9 +1% $19.9 +1% $19.9 $19.5 +7% -5% $19.7 17% 20 20% 18 $3.4 $3.2 $3.3 $3.4 $3.4 IB Checking & Savings 10% 16 17% $3.1 $3.2 $3.1 $3.3 $3.4 $19.8bn 14 0% Time 12 $3.3 $3.3 $3.2 $3
Slide 14: Summary Income Statements
Summary Income Statements $mn, except per share data 3.31.25 12.31.24 $ Change % Change Net Interest Income $ 176.6 $ 171.0 $ 5.6 3% Noninterest income 15.4 16.8 (1.4) (8)% Net (losses) / Gains from equity securities (4.2) (1.3) (2.9) (219)% Total Noninterest Income 11.2 15.5 (4.3) (28)% Core nonint
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 8.50% 8.50% 8.44% 5.33% 5.3
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 $16.8 $16.1 $15.4 16 $14.5 $14.6 $1.7 $1.6 $2.0 $1.7 $1.6 $1.9 14 $2.1 $1.7 $2.1 $1.9 12 10 $6.2 $6.5 8 $5.6 $5.5 $6.2 6 4 $5.6 $5.9 $6.9 2 $5.3 $5.4 - 1Q
Slide 17: Operating Expense & Efficiency
Operating Expense & Efficiency Core Noninterest Expense* ($mn) Core Noninterest Expense* & Efficiency Ratio* ($mn) Noninterest Expense* Efficiency Ratio* 85 $75.4 $74.9 $76.1 $74.2 75 $72.0 $75.4 $74.2 $74.9 $76.1 50.00% $72.0 80 $6.6 $6.5 $6.6 $6.9 $5.8 $3.4 70 43.0% $3.2 $2.2 41.6% 45.00% 65 $3.7
Slide 18: Strong Capital Ratios
Strong Capital Ratios Key Capital Ratios (%) Highlights 16.00% 15.19% • Capital Ratio well above regulatory standards that continues to place 14.00% 13.57% 13.57% Cathay in the “well capitalized” category, calculated under the Basel III capital 11.06% rules. 12.00% 10.50% 10.00% • Book Value Per Com
Slide 19: Management Guidance Full Year 2025
Management Guidance Full Year 2025 Full Year Prior Full Year 2025 Guidance Outlook 2024 Actual Loans, • Estimated growth rate 1% to 4%. • Estimated growth rate 3% to 4%. $19.4 billion end of period (0.9)% YoY Deposits • Estimated growth rate 3% to 4%. • Estimated growth rate 3% to 4%. $19.7 billion
Slide 20: Appendix
Appendix hs
Slide 21: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation Selected Consolidation Financial Information ($ 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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