Cathay General Bancorp Announces Fourth Quarter and Full Year 2015 Results

Jan 20, 2016, 16:30 ET from Cathay General Bancorp

LOS ANGELES, Jan. 20, 2016 /PRNewswire/ -- Cathay General Bancorp (the "Company", NASDAQ: CATY), the holding company for Cathay Bank, today announced net income of $41.4 million, or $0.51 per share, for the fourth quarter and net income of $161.1 million, or $1.98 per share, for the year ended December 31, 2015.

FINANCIAL PERFORMANCE

Three months ended December 31,

Year ended December 31,

2015

2014

2015

2014

Net income

$41.4 million

$35.6 million

$161.1 million

$137.8 million

Basic earnings per common share

$0.51

$0.45

$2.00

$1.73

Diluted earnings per common share

$0.51

$0.44

$1.98

$1.72

Return on average assets

1.27%

1.27%

1.34%

1.26%

Return on average total stockholders' equity

9.40%

8.86%

9.52%

8.95%

Efficiency ratio

49.22%

42.96%

49.15%

45.48%

 

FULL YEAR HIGHLIGHTS

  • Diluted earnings per share increased 15.9% to $0.51 per share for the fourth quarter of 2015 compared to $0.44 per share for the same quarter a year ago.
  • Total loans increased $1.2 billion, or 14.0%, excluding loans held for sale, during 2015, to $10.2 billion at December 31, 2015, compared to $8.9 billion at December 31, 2014.

"In the fourth quarter, our deposits grew $271 million to $10.51 billion while loans grew $124 million to $10.16 billion.  Excluding the loans and deposits from Asia Bank, our loan growth for 2015 was $830 million, or 9.3%, and our deposit growth for 2015 was $1.31 billion, or 14.9%," commented Dunson Cheng, Chairman of the Board, Chief Executive Officer, and President of the Company.

"We increased the dividend a second time during 2015 to $.18 per share paid in December 2015.  During the fourth quarter we  repurchased 282,000 shares as part of our overall capital management efforts," concluded Dunson Cheng.

FOURTH QUARTER INCOME STATEMENT REVIEW

Net income for the quarter ended December 31, 2015, was $41.4 million, an increase of $5.8 million, or 16.5%, compared to net income of $35.6 million for the same quarter a year ago.  Diluted earnings per share for the quarter ended December 31, 2015, was $0.51 compared to $0.44 for the same quarter a year ago.

Return on average stockholders' equity was 9.40% and return on average assets was 1.27% for the quarter ended December 31, 2015, compared to a return on average stockholders' equity of 8.86% and a return on average assets of 1.27% for the same quarter a year ago.

Net interest income before provision for credit losses

Net interest income before provision for credit losses increased $11.6 million, or 13.3%, to $99.4 million during the fourth quarter of 2015 compared to $87.8 million during the same quarter a year ago.  The increase was due primarily to the increase in interest income from loans and investment securities, and the decrease in interest expense from securities sold under agreements to repurchase partially offset by the increase in interest expense from time deposits.

The net interest margin was 3.30% for the fourth quarter of 2015 compared to 3.36% in the third quarter of 2015, and compared to 3.36% for the fourth quarter of 2014.  The decrease in the net interest margin was due primarily to higher interest bearing cash on deposit with the Federal Reserve Bank.  

For the fourth quarter of 2015, the yield on average interest-earning assets was 3.97%, the cost of funds on average interest-bearing liabilities was 0.89%, and the cost of interest bearing deposits was 0.69%.  In comparison, for the fourth quarter of 2014, the yield on average interest-earning assets was 4.06%, the cost of funds on average interest-bearing liabilities was 0.93%, and the cost of interest bearing deposits was 0.66%. The net interest spread, defined as the difference between the yield on average interest-earning assets and the cost of funds on average interest-bearing liabilities, decreased to 3.08% for the quarter ended December 31, 2015, from 3.13% for the same quarter a year ago.

Provision for credit losses

Provision for credit losses was a credit of $3.0 million for the fourth quarter of 2015 compared to a credit of $2.0 million for the fourth quarter of 2014.  The provision for credit losses was based on the review of the appropriateness of the allowance for loan losses at December 31, 2015. The provision or reversal for credit losses represents the charge against or benefit toward current earnings that is determined by management, through a credit review process, as the amount needed to establish an allowance that management believes to be sufficient to absorb credit losses inherent in the Company's loan portfolio, including unfunded commitments.  The following table summarizes the charge-offs and recoveries for the periods indicated:

Three months ended December 31,

Year ended December 31,

2015

2014

2015

2014

(In thousands)

Charge-offs:

  Commercial loans

$ 9,672

$    283

$ 16,426

$ 7,875

  Construction loans

-

4,934

-

6,747

  Real estate loans (1)

227

4,286

4,001

7,613

     Total charge-offs 

9,899

9,503

20,427

22,235

Recoveries:

  Commercial loans

$ 1,534

867

4,618

12,517

  Construction loans

39

2,409

202

2,547

  Real estate loans (1)

213

449

4,549

5,861

  Installment and other loans

-

-

-

13

     Total recoveries

1,786

3,725

9,369

20,938

Net charge-offs

$ 8,113

$ 5,778

$ 11,058

$ 1,297

(1) Real estate loans include commercial mortgage loans, residential mortgage loans, and equity lines.

 

Non-interest income

Non-interest income, which includes revenues from depository service fees, letters of credit commissions, securities gains (losses), gains (losses) on loan sales, wire transfer fees, and other sources of fee income, was $9.4 million for the fourth quarter of 2015, an increase of $1.4 million, or 17.3%, compared to $8.0 million for the fourth quarter of 2014.  Increases in non-interest income were primarily due to increases in venture capital investment income of $1.0 million, in other fees on loans of $0.5 million, offset by decreases in commission on foreign exchange transactions of $0.8 million.

Non-interest expense

Non-interest expense increased $12.4 million, or 30.2%, to $53.5 million in the fourth quarter of 2015 compared to $41.1 million in the same quarter a year ago.  The increase in non-interest expense in the fourth quarter of 2015 was primarily due to increases of $8.2 million in amortization of investments in affordable housing and alternative energy partnerships, $1.7 million in salaries and employee benefits, $0.9 million in other real estate owned expenses, $0.9 million in other operating expenses, and $0.6 million increase in occupancy expenses.  The efficiency ratio was 49.2% in the fourth quarter of 2015 compared to 43.0% for the same quarter a year ago.   

Income taxes

The effective tax rate for the fourth quarter of 2015 was 28.8% compared to 37.1% for the fourth quarter of 2014.  The effective tax rate includes the impact of the utilization of low income housing tax credits and alternative energy tax credits.

BALANCE SHEET REVIEW

Gross loans, excluding loans held for sale, were $10.2 billion at December 31, 2015, an increase of $1.2 billion, or 14.0%, from $8.9 billion at December 31, 2014, primarily due to increases of $814.8 million, or 18.2%, in commercial mortgage loans, $362.3 million, or 23.1%, in residential mortgage loans, and $142.9 million, or 47.8%, in real estate construction loans partially offset by decreases of $65.6 million, or 2.8%, in commercial loans.  These figures include total gross loans of $419.7 million from merger of Asia Bank on July 31, 2015.  The changes in loan balances and composition from December 31, 2014, are presented below:

December 31, 2015

December 31, 2014

 % Change 

(Dollars in thousands)

Commercial loans

$             2,316,863

$             2,382,493

(3)

Residential mortgage loans

1,932,355

1,570,059

23

Commercial mortgage loans

5,301,218

4,486,443

18

Equity lines

168,980

172,879

(2)

Real estate construction loans

441,543

298,654

48

Installment & other loans

2,493

3,552

(30)

Gross loans

$           10,163,452

$             8,914,080

14

Allowance for loan losses

(138,963)

(161,420)

(14)

Unamortized deferred loan fees

(8,262)

(12,392)

(33)

Total loans, net

$           10,016,227

$             8,740,268

15

Loans held for sale

$                    6,676

$                       973

586

 

Total deposits were $10.5 billion at December 31, 2015, an increase of $1.7 billion, or 19.6%, from $8.8 billion at December 31, 2014, primarily due to a $718.0 million, or 16.8%, increase in time deposits, a $368.1 million, or 22.1%, increase in non-interest-bearing demand deposits, a $367.5 million, or 23.9% increase in money market deposits, a $187.7 million, or 24.1% increase in NOW deposits, and a $84.2 million, or 15.8% increase in savings deposits.  These figures include total deposits of $420.6 million from merger of Asia Bank on July 31, 2015. The changes in deposit balances and composition from December 31, 2014, are presented below: 

December 31, 2015

December 31, 2014

 % Change 

(Dollars in thousands)

Non-interest-bearing demand deposits

$            2,033,048

$            1,664,914

22

NOW deposits

966,404

778,691

24

Money market deposits

1,905,719

1,538,187

24

Savings deposits

618,164

533,940

16

Time deposits

4,985,752

4,267,728

17

Total deposits

$          10,509,087

$            8,783,460

20

 

ASSET QUALITY REVIEW

At December 31, 2015, total non-accrual loans were $52.1 million, a decrease of $18.1 million, or 25.7%, from $70.2 million at December 31, 2014.         

The allowance for loan losses was $139.0 million and the allowance for off-balance sheet unfunded credit commitments was $1.5 million at December 31, 2015, which represented the amount believed by management to be appropriate to absorb credit losses inherent in the loan portfolio, including unfunded commitments.  The $139.0 million allowance for loan losses at December 31, 2015, decreased $22.4 million, or 13.9%, from $161.4 million at December 31, 2014.  The allowance for loan losses represented 1.37% of period-end gross loans, and 266.6% of non-performing loans at December 31, 2015.  The comparable ratios were 1.81% of period-end gross loans, excluding loans held for sale, and 230.1% of non-performing loans at December 31, 2014.  The changes in non-performing assets and troubled debt restructurings at December 31, 2015, compared to December 31, 2014, and to September 30, 2015, are highlighted below:

(Dollars in thousands)

December 31, 2015

December 31, 2014

% Change

September 30, 2015

% Change

Non-performing assets

Accruing loans past due 90 days or more

$                          -

$                          -

-

$                      2,573

(100)

Non-accrual loans:

  Construction loans

16,306

19,963

(18)

16,579

(2)

  Commercial real estate loans

25,231

35,606

(29)

33,214

(24)

  Commercial loans

3,545

6,983

(49)

14,758

(76)

  Residential mortgage loans

7,048

7,611

(7)

6,690

5

Total non-accrual loans:

$                  52,130

$                  70,163

(26)

$                    71,241

(27)

Total non-performing loans

52,130

70,163

(26)

73,814

(29)

 Other real estate owned

24,701

31,477

(22)

26,326

(6)

Total non-performing assets

$                  76,831

$                101,640

(24)

$                  100,140

(23)

Accruing  troubled  debt  restructurings (TDRs)

$                  81,680

$                104,356

(22)

$                    89,881

(9)

Non-accrual loans held for sale

$                    5,944

$                       973

511

$                             -

100

Allowance for loan losses

$                138,963

$                161,420

(14)

$                  150,076

(7)

Allowance for off-balance sheet credit commitments

1,494

1,949

(23)

1,421

5

Allowance for credit losses

$                140,457

$                163,369

(14)

$                  151,497

(7)

Total gross loans outstanding, at period-end (1)

$           10,163,452

$             8,914,080

14

$             10,039,932

1

Allowance for loan losses to non-performing loans, at period-end (2)

266.57%

230.06%

203.32%

Allowance for loan losses to gross loans, at period-end (1)

1.37%

1.81%

1.49%

(1) Excludes loans held for sale at period-end.

(2) Excludes non-accrual loans held for sale at period-end.

 

Troubled debt restructurings on accrual status totaled $81.7 million at December 31, 2015, compared to $104.4 million at December 31, 2014.  These loans are classified as troubled debt restructurings as a result of granting a concession to borrowers.  Although these loan modifications are considered troubled debt restructurings under Accounting Standard Codification 310-40 and Accounting Standard Update 2011-02, these loans have demonstrated sustained performance under the modified terms.  The sustained performance considered by management includes the periods prior to the modification if the prior performance met or exceeded the modified terms as well as cash paid to set up interest reserves.    

The ratio of non-performing assets, excluding non-accrual loans held for sale, to total assets was 0.6% at December 31, 2015, compared to 0.9% at December 31, 2014.  Total non-performing assets decreased $24.8 million, or 24.4%, to $76.8 million at December 31, 2015, compared to $101.6 million at December 31, 2014, primarily due to a $18.1 million, or 25.7%, decrease in non-accrual loans and a $6.8 million, or 21.5%, decrease in other real estate owned. 

CAPITAL ADEQUACY REVIEW

At December 31, 2015, the Company's common equity Tier 1 capital ratio of  12.93%, Tier 1 risk-based capital ratio of 14.01%, total risk-based capital ratio of 15.28%, and Tier 1 leverage capital ratio of 11.95%, calculated under the new Basel III capital rules that became effective January 1, 2015, continue to place the Company in the "well capitalized" category for regulatory purposes, which is defined as institutions with a common equity tier 1 capital ratio equal to or greater than 6.5%, a Tier 1 risk-based capital ratio equal to or greater than 8%, a total risk-based capital ratio equal to or greater than 10%, and a Tier 1 leverage capital ratio equal to or greater than 5%. At December 31, 2014, the Company's Tier 1 risk-based capital ratio was 14.96%, total risk-based capital ratio was 16.22%, and Tier 1 leverage capital ratio was 12.99% calculated based on the prior Basel I capital rules.

FULL YEAR REVIEW

Net income was $161.1 million for the year ended December 31, 2015, an increase of $23.3 million, or 16.9%, compared to net income of $137.8 million for the year ended December 31, 2014  due primarily to increases in net interest income, decreases in costs associated with debt redemption and increases in venture capital investment income partially offset by decreases in securities gains, increases in operation expenses from amortization of investments in affordable housing and alternative energy partnerships, increases in occupancy expenses and computer and equipment expenses.  Diluted earnings per share for the year ended December 31, 2015, was $1.98 compared to $1.72 for the year ended December 31, 2014.  The net interest margin for the year ended December 31, 2015, was 3.39% compared to 3.35% for the year ended December 31, 2014.

Return on average stockholders' equity was 9.52% and return on average assets was 1.34% for the year ended December 31, 2015, compared to a return on average stockholders' equity of 8.95% and a return on average assets of 1.26% for the year ended December 31, 2014.  The efficiency ratio for the year ended December 31, 2015, was 49.15% compared to 45.48% for the year ended December 31, 2014.

CONFERENCE CALL

Cathay General Bancorp will host a conference call this afternoon to discuss its fourth quarter and year end 2015 financial results. The call will begin at 3:00 p.m., Pacific Time. Analysts and investors may dial in and participate in the question-and-answer session. To access the call, please dial 1-855-761-3186 and enter Conference ID 21393988. A listen-only live Webcast of the call will be available at www.cathaygeneralbancorp.com and a recorded version is scheduled to be available for replay for 12 months after the call.

ABOUT CATHAY GENERAL BANCORP

Cathay General Bancorp is the holding company for Cathay Bank, a California state-chartered bank. Founded in 1962, Cathay Bank offers a wide range of financial services. Cathay Bank currently operates 33 branches in California, 12 branches in New York State, three in the Chicago, Illinois area, three in Washington State, two in Texas, one in Maryland, one in Massachusetts, one in Nevada, one in New Jersey, one in Hong Kong, and a representative office in Shanghai and in Taipei. Cathay Bank's website is found at http://www.cathaybank.com. Cathay General Bancorp's website is found at http://www.cathaygeneralbancorp.com.  Information set forth on such websites is not incorporated into this press release.

FORWARD-LOOKING STATEMENTS

Statements made in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995 regarding management's beliefs, projections, and assumptions concerning future results and events. These forward-looking statements may include, but are not limited to, such words as "aims," "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "hopes," "intends," "may," "plans," "projects," "predicts," "potential," "possible," "optimistic," "seeks," "shall," "should," "will," and variations of these words and similar expressions. Forward-looking statements are based on estimates, beliefs, projections, and assumptions of management and are not guarantees of future performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. Such risks and uncertainties and other factors include, but are not limited to, adverse developments or conditions related to or arising from U.S. and international business and economic conditions; possible additional provisions for loan losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to including potential future supervisory action by bank supervisory authorities; increased costs of compliance and other risks associated with changes in regulation including the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"); higher capital requirements from the implementation of the Basel III capital standards; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; natural disasters and geopolitical events; general economic or business conditions in Asia, and other regions where Cathay Bank has operations; failures, interruptions, or security breaches of our information systems; our ability to adapt our systems to technological changes; risk management processes and strategies; adverse results in legal proceedings; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in accounting standards or tax laws and regulations; market disruption and volatility; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; issuance of preferred stock; successfully raising additional capital, if needed, and the resulting dilution of interests of holders of our common stock; and the soundness of other financial institutions.

These and other factors are further described in Cathay General Bancorp's Annual Report on Form 10-K for the year ended December 31, 2014 (Item 1A in particular), other reports filed with the Securities and Exchange Commission ("SEC"), and other filings Cathay General Bancorp makes with the SEC from time to time. Actual results in any future period may also vary from the past results discussed in this press release. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements, which speak to the date of this press release. Cathay General Bancorp has no intention and undertakes no obligation to update any forward-looking statement or to publicly announce any revision of any forward-looking statement to reflect future developments or events, except as required by law.  

 

CATHAY GENERAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

Three months ended December 31,

Year ended December 31,

(Dollars in thousands, except per share data)

2015

2014

% Change

2015

2014

% Change

FINANCIAL PERFORMANCE

Net interest income before provision for credit losses    

$         99,416

$        87,751

13

$   379,742

$  342,781

11

Reversal for credit losses

(3,000)

(2,000)

50

(11,400)

(10,800)

6

Net interest income after reversal for credit losses

102,416

89,751

14

391,142

353,581

11

Non-interest income

9,350

7,973

17

32,674

40,527

(19)

Non-interest expense

53,533

41,125

30

202,720

174,313

16

Income before income tax expense

58,233

56,599

3

221,096

219,795

1

Income tax expense

16,787

21,021

(20)

59,987

81,965

(27)

Net income

$         41,446

$        35,578

16

161,109

137,830

17

Net income per common share

Basic

$             0.51

$            0.45

13

$         2.00

$        1.73

16

Diluted

$             0.51

$            0.44

16

$         1.98

$        1.72

15

 Cash dividends paid per common share  

$             0.18

$            0.10

80

$         0.56

$        0.29

93

SELECTED RATIOS

Return on average assets

1.27%

1.27%

-

1.34%

1.26%

6

Return on average total stockholders' equity

9.40%

8.86%

6

9.52%

8.95%

6

Efficiency ratio

49.22%

42.96%

15

49.15%

45.48%

8

Dividend payout ratio

35.21%

22.40%

57

28.11%

16.76%

68

YIELD ANALYSIS (Fully taxable equivalent)

Total interest-earning assets

3.97%

4.06%

(2)

4.06%

4.10%

(1)

Total interest-bearing liabilities

0.89%

0.93%

(4)

0.88%

0.97%

(9)

Net interest spread

3.08%

3.13%

(2)

3.18%

3.13%

2

Net interest margin

3.30%

3.36%

(2)

3.39%

3.35%

1

CAPITAL RATIOS

December 31, 2015 *

December 31, 2014

September 30, 2015

Common Equity Tier 1 capital ratio

12.93%

n/a

12.89%

Tier 1 risk-based capital ratio

14.01%

14.96%

13.98%

Total risk-based capital ratio

15.28%

16.22%

15.25%

Tier 1 leverage capital ratio

11.95%

12.99%

12.24%

* Basel III rules became effective January 1, 2015, with transitional provisions.  2014 data is based on Basel I rules.

 

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and per share data)

December 31, 2015

December 31, 2014

% change

Assets

Cash and due from banks

$                      180,130

$                     176,830

2

Short-term investments and interest bearing deposits

536,880

489,614

10

Securities available-for-sale (amortized cost of $1,595,723 in 2015 and $1,324,408 in 2014)

1,586,352

1,318,935

20

Loans held for sale

6,676

973

586

Loans

10,163,452

8,914,080

14

Less:  Allowance for loan losses

(138,963)

(161,420)

(14)

 Unamortized deferred loan fees, net

(8,262)

(12,392)

(33)

 Loans, net

10,016,227

8,740,268

15

Federal Home Loan Bank stock

17,250

30,785

(44)

Other real estate owned, net

24,701

31,477

(22)

Affordable housing investments and alternative energy partnerships, net

182,943

104,579

75

Premises and equipment, net

108,924

99,682

9

Customers' liability on acceptances

40,335

35,656

13

Accrued interest receivable

30,558

25,364

20

Goodwill

372,189

316,340

18

Other intangible assets, net

3,677

3,237

14

Other assets

147,284

143,106

3

Total assets

$                 13,254,126

$                11,516,846

15

Liabilities and Stockholders' Equity

Deposits

Non-interest-bearing demand deposits

$                   2,033,048

$                  1,664,914

22

Interest-bearing deposits:

NOW deposits

966,404

778,691

24

Money market deposits

1,905,719

1,538,187

24

Savings deposits

618,164

533,940

16

Time deposits 

4,985,752

4,267,728

17

Total deposits

10,509,087

8,783,460

20

Securities sold under agreements to repurchase

400,000

450,000

(11)

Advances from the Federal Home Loan Bank

275,000

425,000

(35)

Other borrowings for affordable housing investments

18,593

19,934

(7)

Long-term debt

119,136

119,136

-

Acceptances outstanding

40,335

35,656

13

Other liabilities

144,197

80,772

79

Total liabilities

11,506,348

9,913,958

16

     Commitments and contingencies

-

-

-

Stockholders' Equity

Common stock, $0.01 par value, 100,000,000 shares authorized, 87,002,931 issued and 80,806,116 outstanding at December 31, 2015, and 84,022,118 issued and 79,814,553 outstanding at December 31, 2014

870

840

4

Additional paid-in-capital

880,822

789,519

12

Accumulated other comprehensive loss, net

(8,426)

(5,569)

51

Retained earnings

1,059,660

943,834

12

Treasury stock, at cost (6,196,815 shares at December 31, 2015, and 4,207,565 at December 31, 2014)

(185,148)

(125,736)

47

Total equity

1,747,778

1,602,888

9

Total liabilities and equity

$                 13,254,126

$                11,516,846

15

Book value per common share

$21.46

$20.00

7

Number of common shares outstanding

80,806,116

79,814,553

1

 

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended December 31,

Year ended December 31,

2015

2014

2015

2014

(In thousands, except share and per share data)

INTEREST AND  DIVIDEND INCOME

Loan receivable, including loan fees

$     112,583

$      100,103

$      427,621

$     390,440

Investment securities

6,261

4,848

21,523

24,237

Federal Home Loan Bank stock

382

595

3,164

1,974

Deposits with banks

293

497

1,398

1,996

Total interest and dividend income

119,519

106,043

453,706

418,647

INTEREST EXPENSE

Time deposits 

11,122

8,956

39,443

35,111

Other deposits

3,435

2,832

12,445

10,658

Securities sold under agreements to repurchase

3,977

4,954

15,813

24,685

Advances from Federal Home Loan Bank

113

94

487

943

Long-term debt

1,456

1,455

5,776

4,467

Short-term borrowings

-

1

-

2

Total interest expense

20,103

18,292

73,964

75,866

Net interest income before reversal for credit losses

99,416

87,751

379,742

342,781

Reversal for credit losses

(3,000)

(2,000)

(11,400)

(10,800)

Net interest income after reversal for credit losses

102,416

89,751

391,142

353,581

NON-INTEREST INCOME

Securities gains/(losses), net

20

(79)

(3,349)

6,748

Letters of credit commissions

1,431

1,496

5,545

6,043

Depository service fees

1,345

1,289

5,348

5,288

Other operating income

6,554

5,267

25,130

22,448

Total non-interest income

9,350

7,973

32,674

40,527

NON-INTEREST EXPENSE

Salaries and employee benefits

22,156

20,421

89,960

89,893

Occupancy expense

4,599

4,043

17,018

15,735

Computer and equipment expense

2,555

2,486

11,338

9,793

Professional services expense

6,274

6,224

23,504

22,634

FDIC and State assessments

2,180

2,104

9,087

8,796

Marketing expense

1,349

1,404

4,926

4,126

Other real estate owned expense/(income)

253

(675)

(800)

(1,304)

Amortization of investments in low income housing and alternative energy partnerships

10,058

1,864

33,335

6,990

Amortization of core deposit intangibles

174

209

667

719

Cost associated with debt redemption

-

-

-

3,348

Other operating expense

3,935

3,045

13,685

13,583

Total non-interest expense

53,533

41,125

202,720

174,313

Income before income tax expense

58,233

56,599

221,096

219,795

Income tax expense

16,787

21,021

59,987

81,965

Net income

$       41,446

$        35,578

161,109

137,830

Net income per common share:

Basic

$           0.51

$            0.45

$            2.00

$           1.73

Diluted

$           0.51

$            0.44

$            1.98

$           1.72

Cash dividends paid per common share

$           0.18

$            0.10

$            0.56

$           0.29

Basic average common shares outstanding

80,981,582

79,727,948

80,563,577

79,661,571

Diluted average common shares outstanding

81,857,429

80,163,504

81,294,796

80,106,895

 

CATHAY GENERAL BANCORP

AVERAGE BALANCES – SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited)

Three months ended,

(In thousands)

December 31, 2015

December 31, 2014

September 30, 2015

Interest-earning assets

Average Balance

Average Yield/Rate (1)

Average Balance

Average Yield/Rate (1)

Average Balance

Average Yield/Rate (1) 

Loans (1)

$   10,091,207

4.43%

$     8,846,861

4.49%

$     9,855,450

4.43%

Taxable investment securities 

1,499,861

1.66%

1,292,589

1.49%

1,488,655

1.64%

FHLB stock

17,250

8.79%

32,747

7.21%

17,250

12.05%

Deposits with banks

327,948

0.35%

199,519

0.99%

149,153

0.69%

Total interest-earning assets

$   11,936,266

3.97%

$   10,371,716

4.06%

$   11,510,508

4.03%

Interest-bearing liabilities

Interest-bearing demand deposits

$        924,423

0.16%

$        763,021

0.17%

$        880,209

0.17%

Money market deposits

1,802,341

0.62%

1,517,485

0.59%

1,721,394

0.60%

Savings deposits

615,778

0.16%

548,258

0.18%

632,466

0.15%

Time deposits

5,067,000

0.87%

4,252,265

0.84%

4,868,908

0.85%

Total interest-bearing deposits

$     8,409,542

0.69%

$     7,081,029

0.66%

$     8,102,977

0.67%

Securities sold under agreements to repurchase

400,000

3.94%

508,696

3.86%

400,000

3.94%

Other borrowed funds

67,609

0.66%

85,806

0.44%

114,998

0.57%

Long-term debt

119,136

4.85%

119,136

4.85%

119,136

4.85%

Total interest-bearing liabilities

8,996,287

0.89%

7,794,667

0.93%

8,737,111

0.87%

Non-interest-bearing demand deposits

1,993,135

1,646,084

1,795,938

Total deposits and other borrowed funds

$   10,989,422

$     9,440,751

$   10,533,049

Total average assets

$   12,919,839

$   11,136,124

$   12,436,281

Total average equity

$     1,748,825

$     1,593,361

$     1,735,149

Year ended,

(In thousands)

December 31, 2015

December 31, 2014

Interest-earning assets

Average Balance

Average Yield/Rate (1)

Average Balance

Average Yield/Rate (1)

Loans (1)

$     9,593,448

4.46%

$     8,532,248

4.58%

Taxable investment securities 

1,378,641

1.56%

1,417,007

1.71%

FHLB stock

21,480

14.73%

29,487

6.69%

Deposits with banks

192,763

0.73%

242,037

0.82%

Total interest-earning assets

$   11,186,332

4.06%

$   10,220,779

4.10%

Interest-bearing liabilities

Interest-bearing demand deposits

$        860,513

0.16%

$        721,435

0.17%

Money market deposits

1,677,065

0.60%

1,407,053

0.61%

Savings deposits

590,987

0.15%

532,184

0.15%

Time deposits

4,673,862

0.84%

4,257,736

0.82%

Total interest-bearing deposits

$     7,802,427

0.67%

$     6,918,408

0.66%

Securities sold under agreements to repurchase

400,822

3.95%

629,315

3.92%

Other borrowed funds

105,367

0.46%

146,120

0.65%

Long-term debt

119,136

4.85%

119,785

3.73%

Total interest-bearing liabilities

8,427,752

0.88%

7,813,628

0.97%

Non-interest-bearing demand deposits

1,781,981

1,535,461

Total deposits and other borrowed funds

$   10,209,733

$     9,349,089

Total average assets

$   12,056,531

$   10,974,890

Total average equity

$     1,692,826

$     1,540,564

(1) Yields and interest earned include net loan fees. Non-accrual loans are included in the average balance.

 

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SOURCE Cathay General Bancorp



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