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.
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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
