Slide 1: Financial Earnings Results. Fourth Quarter and Full Year 2021
Financial Earnings Results. Fourth Quarter and Full Year 2021 January 27, 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 4Q 2021
Financial Highlights 4Q 2021 Quarterly results ending December 31, 2021 Profitability: Return on Assets & Equity Pre-Tax Pre-Provision Income Ratio Net Income 16.00% $ in millions $113.8 • $75.3 million 10.00% $105.4 $110.00 14.00% 9.00% 12.53% 12.00% 11.75% 12.23% 11.61% 12.12% $101.6 8.00% Diluted
Slide 4: Summary Highlights: 4Q and Full Year 2021 Results
Summary Highlights: 4Q and Full Year 2021 Results $ in millions, Change Change Full Year Change except per share data 4Q21 4Q21 v. 3Q21 4Q21 v. 4Q20 2021 YoY Earnings Net Income $ 75.3 4% 6% $ 298.3 30% Basic EPS $ 0.98 5% 10% $ 3.81 32% Diluted EPS $ 0.98 5% 10% $ 3.80 32% Total Revenue $ 175.3 6%
Slide 5: Summary Balance Sheets
Summary Balance Sheets $ in millions, except per share data 12.31.21 9.30.21 QoQ Change Cash equivalents & ST investments $ 2,450 $ 1,824 $ 626 AFS debt securities 1,127 1,079 48 Gross loans, net of discounts $ 16,338 $ 15,973 $ 365 Allowance for credit losses (136) (132) (4) Net Loans $ 16,202 $ 15
Slide 6: Loan Composition
Loan Composition Average Loan Growth – QoQ Annualized $ in billions Construction Total Loan Portfolio 4% $15.6 $15.7 $15.7 $15.8 +8.4% $16.1 20% +3% • $16.3 billion 16.000000 +3% $0.7 $0.6 Residential $0.7 $0.7 -0.2% $0.7 10% Mortgage* 14.000000 $2.9 $2.9 $2.9 $2.9 $2.8 as of 12.31.21 28% Total CRE
Slide 7: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio Total CRE Geographic Distribution Total CRE • $8.1 billion 50% of total loans Residential 15% NY 32% Construction 4% Total CRE CA $8.1 Billion Residential Retail 11% 50% Mortgage* 28% TX 5% Total Loans Total CRE WA 2% $16.3 Billion 50% IL 3% Office 8% Other 8% C&I 18
Slide 8: Commercial Real Estate Portfolio: LTV Distribution
Commercial Real Estate Portfolio LTV Distribution of Total CRE $8.1 Billion LTV & Size by Property Type • $1.58 mil avg. outstanding size Total CRE • weighted avg. LTV 51% Total CRE Weighted $ in millions Loan Portfolio Avg. LTV Residental $ 2,462 54% Retail $ 1,871 50% 40% to 50% Office $ 1,392 49%
Slide 9: Selected CRE and Construction Loan Portfolios
Selected CRE and Construction Loan Portfolios Residential CRE Portfolio Retail CRE Portfolio Construction Portfolio % based on $2.46 billion loans outstanding % based on $1.87 billion loans outstanding % based on $611 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 • $371,130 avg. outstanding size • weighted avg. LTV 55% NY 37% 56% to 60% 51% to 55% 17% 10% $4.6 Billion Residential Mortgage* Over 60% Under 50% CA 40% WA 5% 33% 49% TX 3% NJ 2% Other 4% * 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% $167 $167 Millions $17.7 160 $147 $147 160 $132 $136 $131 2.50% $132 $136 140 140 $131 $30.9 $49.2 $25.4 120 2.00% 120 $27.0 $26.4 100 100
Slide 12: Asset Quality Metrics
Asset Quality Metrics Classified Loans Ratio Reserves and Net Charge-Offs $ in millions 1.06% 800 8.00% 1.20% 700 $266 7.00% 0.94% $296 1.00% $266 $253 0.84% 0.83% 0.83% $314 600 6.00% 0.80% 500 5.00% 400 $499 4.00% 0.60% $421 $439 $444 300 3.00% $337 0.40% 0.20% 0.20% 200 2.00% 0.18% 0.18% 2.01% 0.
Slide 13: Deposit Mix
Deposit Mix Average Deposit Growth – QoQ Annualized Total Deposit $ in billions • $18.1 billion +9% +13% +8% $17.3 as of 12.31.21 MMA 18 +7% $16.4 $17.0 $15.8 $16.1 20% 25% $3.1 16 $2.8 $3.0 14 $2.5 $2.7 10% 12 $3.3 $3.6 $4.0 $4.2 $4.4 0% Time IB Checking & Savings 10 31% -10% 19% $3.3 $3.4 $3.6 $3.
Slide 14: Summary Income Statements
Summary Income Statements $ in millions, except per share data 12.31.21 9.30.21 $ Change % Change Net Interest Income $ 155.5 $ 152.5 $ 3.0 1.9% Noninterest income 17.6 12.2 5.4 44.1% Net (losses) / Gains from equity securities 2.2 - 2.2 100.0% Total Noninterest Income 19.8 12.2 7.6 62.1% Noninteres
Slide 15: Non-interest Income
Non-interest Income Non-Interest Income* $17.6 18 $ in millions 16 $1.5 $1.9 $13.5 14 $12.8 $1.3 $12.2 12 $10.7 $1.4 $4.0 $1.8 $1.4 $1.3 $1.7 10 $1.8 $1.7 $3.9 8 $3.6 $3.6 6 $2.6 $10.2 4 $6.1 $6.4 $5.4 2 $5.1 - 4Q20 1Q21 2Q21 3Q21 4Q21 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 LIBOR Average Cost of Deposits vs Fed Funds Rate 5.00% 90 0.50% 80 4.18% 4.13% 4.13% 4.12% 4.04% 80 4.00% 0.40% 70 63 63 3.25% 3.25% 3.25% 3.25% 3.25% 60 3.00% 49 48 0.30% 50 44 38 37 2.00% 40 34 0.20% 30 28
Slide 17: Operating Expense & Efficiency
Operating Expense & Efficiency 70 Core Noninterest Expense* Core Noninterest Expense* & Efficiency Ratio* $ in millions $ in millions $59.5 $61.1 70 100.00% $59.6 $58.7 $59.2 $61.1 60 $59.5 $59.6 $58.7 $59.2 90.00% $6.5 60 $7.6 $8.3 $5.9 80.00% $6.9 $1.9 50 70.00% $1.8 50 $2.1 $1.9 $1.4 $7.0 60.00%
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% 14.41% calculated under the Basel III capital 14.00% 12.80% 12.80% rules. 10.40% 12.00% 10.50% • Book Value Per Common Share is 10.00% 8.50% $32.29 as of 12
Slide 19: Cathay General Bancorp
(= Cathay General Bancorp