Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Cathay General Bancorp Announces Fourth Quarter and Full Year 2016 Results

CATY

PR Newswire

LOS ANGELES, Jan. 25, 2017 /PRNewswire/ -- Cathay General Bancorp (the "Company", NASDAQ: CATY), the holding company for Cathay Bank, today announced net income of $48.0 million, or $0.60 per share, for the fourth quarter of 2016, and net income of $175.1 million, or $2.19 per share, for the year ended December 31, 2016.

FINANCIAL PERFORMANCE


Three months ended


Year ended December 31,


December 31, 2016


September 30, 2016


December 31, 2015


2016


2015

Net income

$48.0 million


$46.1 million


$41.4 million


$175.1 million


$161.1 million

Basic earnings per common share

$0.61


$0.58


$0.51


$2.21


$2.00

Diluted earnings per common share

$0.60


$0.58


$0.51


$2.19


$1.98

Return on average assets

1.37%


1.38%


1.27%


1.31%


1.34%

Return on average total stockholders' equity

10.52%


10.30%


9.40%


9.88%


9.52%

Efficiency ratio

45.39%


45.05%


49.22%


49.79%


49.15%

FULL YEAR HIGHLIGHTS

  • Diluted earnings per share increased 17.6% to $0.60 per share for the fourth quarter of 2016 compared to $0.51 per share for the same quarter a year ago.
  • Total loans increased $1.0 billion, or 10.2%, excluding loans held for sale, during 2016, to $11.2 billion at December 31, 2016, compared to $10.2 billion at December 31, 2015.
  • Total assets for the year increased $1.2 billion to $14.5 billion at December 31, 2016 from $13.3 billion at December 31, 2015.

"In the fourth quarter of 2016, our gross loans, excluding loans held for sale, grew by $191 million to $11.2 billion.  The loan growth for 2016 was $1.0 billion, representing an increase of 10.2% for the year.  For the fourth quarter of 2016, our total deposits, increased $736 million to $11.7 billion compared to the third quarter.  For 2016, total deposits grew by $1.2 billion representing an increase of 11.1% for the year.  Also, in November 2016, we increased our dividend by 16.7% to $.21 per share from the $.18 per share paid previously," commented Pin Tai, Chief Executive Officer and President of the Company.

"The transaction to acquire Sinopac Bancorp, the parent of Far East National Bank, continues to progress and we expect it to be completed in the next several months," added Dunson Cheng, Executive Chairman of the Board of the Company.

FOURTH QUARTER INCOME STATEMENT REVIEW
Net income for the quarter ended December 31, 2016, was $48.0 million, an increase of $6.6 million, or 15.8%, compared to net income of $41.4 million for the same quarter a year ago.  Diluted earnings per share for the quarter ended December 31, 2016, was $0.60 compared to $0.51 for the same quarter a year ago.

Return on average stockholders' equity was 10.52% and return on average assets was 1.37% for the quarter ended December 31, 2016, compared to a return on average stockholders' equity of 9.40% 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 $10.5 million, or 10.5%, to $109.9 million during the fourth quarter of 2016 compared to $99.4 million during the same quarter a year ago.  The increase was due primarily to an increase in interest income from loans, partially offset by an increase in interest expense from time and other deposits.

The net interest margin was 3.36% for the fourth quarter of 2016 compared to 3.30% for the fourth quarter of 2015 and 3.36% for the third quarter of 2016. 

For the fourth quarter of 2016, the yield on average interest-earning assets was 4.00%, the cost of funds on average interest-bearing liabilities was 0.86%, and the cost of interest-bearing deposits was 0.69%.  In comparison, 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%. 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, was 3.14% for the quarter ended December 31, 2016, compared to 3.08% for the same quarter a year ago.

Reversal for credit losses

Reversal for credit losses was zero for the fourth quarter of 2016 compared to $3.0 million for the fourth quarter of 2015.  The reversal for credit losses was based on a review of the appropriateness of the allowance for loan losses at December 31, 2016. A provision or reversal for credit losses represents a 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


Year ended December 31,


December 31, 2016


September 30, 2016


December 31, 2015


2016


2015


(In thousands)

Charge-offs:










  Commercial loans

$                       920


$                    3,278


$                    9,672


$  12,955


$                16,426

  Real estate loans (1)

118


4,626


227


5,948


4,001

     Total charge-offs 

1,038


7,904


9,899


18,903


20,427

Recoveries:










  Commercial loans

$                       424


2,006


1,534


4,144


4,618

 Construction loans

46


548


39


7,917


202

  Real estate loans(1)

1,592


343


213


2,495


4,549

     Total recoveries

2,062


2,897


1,786


14,556


9,369

Net charge-offs

$                  (1,024)


$                    5,007


$                    8,113


$    4,347


$                11,058











(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 $8.0 million for the fourth quarter of 2016, a decrease of $1.4 million, or 14.9%, compared to $9.4 million for the fourth quarter of 2015.

Non-interest expense

Non-interest expense remained unchanged at $53.5 million in the fourth quarter of 2016 when compared to 2015.  For the fourth quarter of 2016, amortization of investments in affordable housing and alternative energy partnerships decreased $5.4 million offset by a $3.9 million increase in salary and employee benefit expenses and a $1.0 million accrual for the reserve for off balance sheet commitments when compared to the same quarter a year ago.  The efficiency ratio was 45.39% in the fourth quarter of 2016 compared to 49.22% for the same quarter a year ago.   

Income taxes

The effective tax rate for the fourth quarter of 2016 was 25.4% compared to 28.8% for the fourth quarter of 2015.  The effective tax rate includes the impact of the utilization of low income housing tax credits and alternative energy tax credits.  Income tax expense for the fourth quarter of 2016 was reduced by $0.7 million in benefits from the exercise of stock options.

BALANCE SHEET REVIEW

Gross loans, excluding loans held for sale, were $11.2 billion at December 31, 2016, an increase of $1.0 billion, or 10.2%, from $10.2 billion at December 31, 2015, primarily due to increases of $511.7 million, or 26.5%, in residential mortgage loans, $484.0 million, or 9.1%, in commercial mortgage loans, and $106.5 million, or 24.1%, in real estate construction loans partially offset by decreases of $68.7 million, or 3.0%, in commercial loans.  The loan balances and composition at December 31, 2016, compared to September 30, 2016, and to December 31, 2015, are presented below:

 


December 31, 2016


September 30, 2016


December 31, 2015



(In thousands)


Commercial loans

$            2,248,187


$             2,248,996


$            2,316,863


Residential mortgage loans

2,444,048


2,329,402


1,932,355


Commercial mortgage loans

5,785,248


5,743,991


5,301,218


Equity lines

171,711


170,022


168,980


Real estate construction loans

548,088


515,236


441,543


Installment & other loans

3,993


2,810


2,493









 Gross loans

$          11,201,275


$           11,010,457


$          10,163,452









Allowance for loan losses

(118,966)


(117,942)


(138,963)


Unamortized deferred loan fees

(4,994)


(5,519)


(8,262)









 Total loans, net

$          11,077,315


$           10,886,996


$          10,016,227


Loans held for sale

$                   7,500


$                    4,750


$                   6,676


Total deposits were $11.7 billion at December 31, 2016, an increase of $736 million, or 6.7%, from $10.9 billion at September 30, 2016, and an increase of $1.2 billion, or 11.1% from $10.5 billion at December 31, 2015.  The deposit balances and composition at December 31, 2016, compared to September 30, 2016, and to December 31, 2015, are presented below: 

 


December 31, 2016


September 30, 2016


December 31, 2015



(In thousands)


Non-interest-bearing demand deposits

$                  2,478,107


$             2,246,661


$            2,033,048


NOW deposits

1,230,445


1,073,436


966,404


Money market deposits

2,198,938


2,131,190


1,905,719


Savings deposits

719,949


633,345


618,164


Time deposits

5,047,287


4,854,064


4,985,752


 Total deposits

$                11,674,726


$           10,938,696


$          10,509,087









 

ASSET QUALITY REVIEW

At December 31, 2016, total non-accrual loans were $49.7 million, an increase of $5.3 million, or 12.0%, from $44.4 million at September 30, 2016, and a decrease of $2.4 million, or 4.7%, from $52.1 million at December 31, 2015.         

The allowance for loan losses was $119.0 million and the allowance for off-balance sheet unfunded credit commitments was $3.2 million at December 31, 2016, which represented the amount believed by management to be appropriate to absorb credit losses inherent in the loan portfolio, including unfunded commitments.  The $119.0 million allowance for loan losses at December 31, 2016, decreased $20.0 million, or 14.4%, from $139.0 million at December 31, 2015.  The allowance for loan losses represented 1.06% of period-end gross loans, excluding loans held for sale, and 239.5% of non-performing loans at December 31, 2016.  The comparable ratios were 1.37% of period-end gross loans, excluding loans held for sale, and 266.6% of non-performing loans at December 31, 2015.  The changes in non-performing assets and troubled debt restructurings at December 31, 2016, compared to December 31, 2015, and to September 30, 2016, are highlighted below:

 


(Dollars in thousands)

December 31, 2016


December 31, 2015


% Change


September 30, 2016


% Change

Non-performing assets










Accruing loans past due 90 days or more

$                             -


$                             -


-


$                               -


-

Non-accrual loans:










  Construction loans

5,458


16,306


(67)


5,507


(1)

  Commercial mortgage loans

20,078


25,231


(20)


21,077


(5)

  Commercial loans

15,710


3,545


343


9,251


70

  Residential mortgage loans

8,436


7,048


20


8,524


(1)

Total non-accrual loans:

$                     49,682


$                     52,130


(5)


$                       44,359


12

  Total non-performing loans

49,682


52,130


(5)


44,359


12

 Other real estate owned

20,070


24,701


(19)


20,986


(4)

  Total non-performing assets

$                     69,752


$                     76,831


(9)


$                       65,345


7

Accruing troubled  debt  restructurings (TDRs)

$                     65,393


$                     81,680


(20)


$                       86,555


(24)

Non-accrual loans held for sale

$                       7,500


$                       6,676


12


$                         4,750


58











Allowance for loan losses

$                   118,966


$                   138,963


(14)


$                     117,942


1











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

$              11,201,275


$              10,163,452


10


$                11,010,457


2











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

239.45%


266.57%




265.88%



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

1.06%


1.37%




1.07%













(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 $65.4 million at December 31, 2016, compared to $81.7 million at December 31, 2015.  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 0.5% at December 31, 2016, compared to 0.6% at December 31, 2015.  Total non-performing assets decreased $7.0 million, or 9.2%, to $69.8 million at December 31, 2016, compared to $76.8 million at December 31, 2015, primarily due to a decrease of $2.4 million, or 4.7%, in non-accrual loans and a decrease of $4.6 million, or 18.7%, in other real estate owned. 

CAPITAL ADEQUACY REVIEW

At December 31, 2016, the Company's common equity Tier 1 capital ratio of 12.84%, Tier 1 risk-based capital ratio of 13.85%, total risk-based capital ratio of 14.97%, and Tier 1 leverage capital ratio of 11.57%, calculated under the Basel III capital rules, 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, 2015, the Company's common equity Tier 1 capital ratio was 12.95%, Tier 1 risk-based capital ratio was 14.03%, total risk-based capital ratio was 15.30%, and Tier 1 leverage capital ratio was 11.95%.

FULL YEAR REVIEW

Net income for the year ended December 31, 2016, was $175.1 million, an increase of $14.0 million, or 8.7%, compared to net income of $161.1 million for the year ended December 31, 2015.  Diluted earnings per share for the year ended December 31, 2016 was $2.19 compared to $1.98 for the year ended December 31, 2015.  The net interest margin for the year ended December 31, 2016, was 3.38% compared to 3.39% for the year ended December 31, 2015.

Return on average stockholders' equity was 9.88% and return on average assets was 1.31% for the year ended December 31, 2016, compared to a return on average stockholders' equity of 9.52% and a return on average assets of 1.34% for the year ended December 31, 2015.  The efficiency ratio for the year ended December 31, 2016, was 49.79% compared to 49.15% for year ended December 31, 2015.

CONFERENCE CALL

Cathay General Bancorp will host a conference call this afternoon to discuss its fourth quarter and year end 2016 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 48409980. 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 34 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; 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; the soundness of other financial institutions; our pending acquisition of SinoPac Bancorp, including the possibility that any of the anticipated benefits of the proposed acquisition will not be realized or will not be realized within the expected time period; the failure to satisfy conditions to completion of the proposed acquisition or the merger of Cathay Bank and Far East National Bank, including receipt of required regulatory approvals; the failure of the proposed acquisition or the merger of Cathay Bank and Far East National Bank to be completed for any reason; the inability to complete the proposed acquisition or the merger of Cathay Bank and Far East National Bank in a timely manner; the risk that integration of SinoPac Bancorp's and Far East National Bank's operations with those of the Company and Cathay Bank will be materially delayed or will be more costly or difficult than expected; the diversion of management's attention from ongoing business operations and opportunities; the challenges of integrating and retaining key employees; the effect of the announcement of the proposed acquisition on the Company's, SinoPac Bancorp's, Far East National Bank's or the combined companies' respective customer relationships and operating results; the possibility that the proposed acquisition may be more expensive to complete than anticipated, including as a result of unexpected factors or events; and general competitive, economic political, and market conditions and fluctuations.

These and other factors are further described in Cathay General Bancorp's Annual Report on Form 10-K for the year ended December 31, 2015 (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


Year ended December 31,

(Dollars in thousands, except per share data)


December 31, 2016


September 30, 2016


December 31, 2015


2016


2015












FINANCIAL PERFORMANCE











Net interest income before provision for credit losses    


$                  109,902


$                      103,824


$                     99,416


$   417,870


$    379,742

Reversal for credit losses


-


-


(3,000)


(15,650)


(11,400)

Net interest income after reversal for credit losses


109,902


103,824


102,416


433,520


391,142

Non-interest income


7,961


8,811


9,350


33,370


32,674

Non-interest expense


53,503


50,737


53,533


224,690


202,720

Income before income tax expense


64,360


61,898


58,233


242,200


221,096

Income tax expense


16,345


15,808


16,787


67,101


59,987

Net income


$                    48,015


$                        46,090


$                     41,446


175,099


161,109












Net income per common share











Basic


$                        0.60


$                            0.58


$                         0.51


$         2.21


$          2.00

Diluted


$                        0.60


$                            0.58


$                         0.51


$         2.19


$          1.98












 Cash dividends paid per common share  


$                        0.21


$                            0.18


$                         0.18


$         0.75


$          0.56























SELECTED RATIOS











 Return on average assets


1.37%


1.38%


1.27%


1.31%


1.34%

 Return on average total stockholders' equity


10.52%


10.30%


9.40%


9.88%


9.52%

 Efficiency ratio


45.39%


45.05%


49.22%


49.79%


49.15%

 Dividend payout ratio


34.79%


30.80%


35.21%


33.85%


28.11%























YIELD ANALYSIS (Fully taxable equivalent)











 Total interest-earning assets


4.00%


4.02%


3.97%


4.04%


4.06%

 Total interest-bearing liabilities


0.86%


0.89%


0.89%


0.88%


0.88%

 Net interest spread


3.14%


3.13%


3.08%


3.16%


3.18%

 Net interest margin


3.36%


3.36%


3.30%


3.38%


3.39%













































CAPITAL RATIOS


December 31, 2016


September 30, 2016


December 31, 2015





 Common Equity Tier 1 capital ratio


12.84%


12.64%


12.95%





 Tier 1 risk-based capital ratio


13.85%


13.67%


14.03%





 Total risk-based capital ratio


14.97%


14.78%


15.30%





 Tier 1 leverage capital ratio


11.57%


11.91%


11.95%







.









 

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)








(In thousands, except share and per share data)


December 31, 2016


September 30, 2016


December 31, 2015








Assets







Cash and due from banks


$                    218,017


$                    203,877


$                             180,130

Short-term investments and interest bearing deposits


967,067


791,757


536,880

Securities available-for-sale (amortized cost of $1,317,012 at December 31, 2016,

$1,283,808 at September 30, 2016, and $1,595,723 at December 31, 2015)


1,314,345


1,298,469


1,586,352

Loans held for sale


7,500


4,750


6,676

Loans


11,201,275


11,010,457


10,163,452

Less:  Allowance for loan losses


(118,966)


(117,942)


(138,963)

 Unamortized deferred loan fees, net


(4,994)


(5,519)


(8,262)

 Loans, net


11,077,315


10,886,996


10,016,227

Federal Home Loan Bank stock


17,250


18,900


17,250

Other real estate owned, net


20,070


20,986


24,701

Affordable housing investments and alternative energy partnerships, net


251,077


225,535


182,943

Premises and equipment, net


105,607


106,885


108,924

Customers' liability on acceptances


12,182


13,339


40,335

Accrued interest receivable


37,299


31,868


30,558

Goodwill


372,189


372,189


372,189

Other intangible assets, net


2,949


3,158


3,677

Other assets


117,902


120,080


147,284








 Total assets


$               14,520,769


$               14,098,789


$                        13,254,126








Liabilities and Stockholders' Equity







Deposits







Non-interest-bearing demand deposits


$                 2,478,107


$                 2,246,661


$                          2,033,048

Interest-bearing deposits:







NOW deposits


1,230,445


1,073,436


966,404

Money market deposits


2,198,938


2,131,190


1,905,719

Savings deposits


719,949


633,345


618,164

Time deposits 


5,047,287


4,854,064


4,985,752

Total deposits


11,674,726


10,938,696


10,509,087








Securities sold under agreements to repurchase


350,000


350,000


400,000

Advances from the Federal Home Loan Bank


350,000


700,000


275,000

Other borrowings for affordable housing investments


17,662


17,705


18,593

Long-term debt


119,136


119,136


119,136

Acceptances outstanding


12,182


13,339


40,335

Other liabilities


168,524


166,474


144,197

 Total liabilities


12,692,230


12,305,350


11,506,348

     Commitments and contingencies


-


-


-

Stockholders' Equity







Common stock, $0.01 par value, 100,000,000 shares authorized,

87,820,920 issued and 79,610,277 outstanding at December 31, 2016,

87,090,319 issued and 78,879,676 outstanding at September 30, 2016, and

87,002,931 issued and 80,806,116 outstanding at December 31, 2015


878


871


870

Additional paid-in-capital


895,480


886,081


880,822

Accumulated other comprehensive income/(loss), net


(3,715)


1,903


(8,426)

Retained earnings


1,175,485


1,144,173


1,059,660

Treasury stock, at cost (8,210,643 shares at December 31, 2016, 

8,210,643 at September 30, 2016, and 6,196,815 at December 31, 2015)


(239,589)


(239,589)


(185,148)








Total equity


1,828,539


1,793,439


1,747,778

Total liabilities and equity


$               14,520,769


$               14,098,789


$                        13,254,126








Book value per common share


$22.80


$22.57


$21.46

Number of common shares outstanding


79,610,277


78,879,676


80,806,116

 

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)








Three months ended


Year ended December 31,



December 31, 2016

September 30, 2016

December 31, 2015


2016

2015



(In thousands, except share and per share data)

INTEREST AND  DIVIDEND INCOME








Loan receivable, including loan fees


$                 124,570

$                   118,500

$                 112,583


$    473,782

$    427,621

Investment securities


4,452

4,850

6,261


21,426

21,523

Federal Home Loan Bank stock


977

393

382


2,099

3,164

Deposits with banks


669

412

293


1,763

1,398









Total interest and dividend income


130,668

124,155

119,519


499,070

453,706









INTEREST EXPENSE








Time deposits 


11,150

10,701

11,122


43,327

39,443

Other deposits


4,311

4,212

3,435


16,094

12,445

Securities sold under agreements to repurchase


3,633

3,828

3,977


15,329

15,813

Advances from Federal Home Loan Bank


217

134

113


659

487

Long-term debt


1,455

1,456

1,456


5,791

5,776









Total interest expense


20,766

20,331

20,103


81,200

73,964









Net interest income before reversal for credit losses


109,902

103,824

99,416


417,870

379,742

Reversal for credit losses


-

-

(3,000)


(15,650)

(11,400)









Net interest income after reversal for credit losses


109,902

103,824

102,416


433,520

391,142









NON-INTEREST INCOME








Securities gains/(losses), net


1,757

1,692

20


4,898

(3,349)

Letters of credit commissions


1,241

1,212

1,431


4,939

5,545

Depository service fees


1,369

1,401

1,345


5,478

5,348

Other operating income


3,594

4,506

6,554


18,055

25,130









Total non-interest income


7,961

8,811

9,350


33,370

32,674









NON-INTEREST EXPENSE








Salaries and employee benefits


26,035

22,881

22,156


97,348

89,960

Occupancy expense


4,728

4,734

4,599


18,315

17,018

Computer and equipment expense


2,417

2,337

2,513


9,777

9,828

Professional services expense


4,705

4,999

4,440


18,686

17,316

Data processing service expense


2,401

2,279

1,876


8,957

7,698

FDIC and State assessments


2,072

2,288

2,180


9,712

9,087

Marketing expense


1,778

1,516

1,349


5,092

4,926

Other real estate owned expense/(income)


244

(176)

253


856

(800)

Amortization of investments in low income housing and alternative energy partnerships


4,638

5,432

10,058


40,264

33,335

Amortization of core deposit intangibles


172

172

174


689

667

Other operating expense


4,313

4,275

3,935


14,994

13,685









Total non-interest expense


53,503

50,737

53,533


224,690

202,720









Income before income tax expense


64,360

61,898

58,233


242,200

221,096

Income tax expense


16,345

15,808

16,787


67,101

59,987

Net income


$                   48,015

$                     46,090

$                   41,446


175,099

161,109









Net income per common share:








Basic


$                       0.61

$                         0.58

$                       0.51


$          2.21

$          2.00

Diluted


$                       0.60

$                         0.58

$                       0.51


$          2.19

$          1.98









Cash dividends paid per common share


$                       0.21

$                         0.18

$                       0.18


$          0.75

$          0.56

Basic average common shares outstanding


79,171,401

78,865,860

80,981,582


79,153,762

80,563,577

Diluted average common shares outstanding


80,007,934

79,697,069

81,857,429


79,929,262

81,294,796

 


CATHAY GENERAL BANCORP

AVERAGE BALANCES – SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited)



Three months ended



(In thousands)

December 31, 2016


September 30, 2016


December 31, 2015












Interest-earning assets

Average Balance

Average

Yield/Rate (1)


Average Balance

Average

Yield/Rate (1)


Average Balance

Average

Yield/Rate (1) 


Loans (1)

$   11,080,313

4.47%


$          10,670,253

4.42%


$          10,091,207

4.43%


Taxable investment securities 

1,339,848

1.32%


1,303,598

1.48%


1,499,861

1.66%


FHLB stock

18,290

21.25%


17,268

9.05%


17,250

8.79%


Deposits with banks

560,896

0.47%


294,292

0.56%


327,948

0.35%












Total interest-earning assets

$   12,999,347

4.00%


$          12,285,411

4.02%


$          11,936,266

3.97%












Interest-bearing liabilities










Interest-bearing demand deposits

$     1,144,082

0.17%


$            1,060,065

0.17%


$               924,423

0.16%


Money market deposits

2,176,268

0.65%


2,117,831

0.66%


1,802,341

0.62%


Savings deposits

666,867

0.17%


627,912

0.16%


615,778

0.16%


Time deposits

4,982,911

0.89%


4,651,593

0.92%


5,067,000

0.87%


Total interest-bearing deposits

$     8,970,128

0.69%


$            8,457,401

0.70%


$            8,409,542

0.69%


Securities sold under agreements to repurchase

350,000

4.13%


378,261

4.03%


400,000

3.94%


Other borrowed funds

148,675

0.58%


107,203

0.50%


67,609

0.66%


Long-term debt

119,136

4.86%


119,136

4.86%


119,136

4.85%


Total interest-bearing liabilities

9,587,939

0.86%


9,062,001

0.89%


8,996,287

0.89%












Non-interest-bearing demand deposits

2,400,404



2,254,123



1,993,135













Total deposits and other borrowed funds

$   11,988,343



$          11,316,124



$          10,989,422













Total average assets

$   13,992,093



$          13,263,385



$          12,919,839



Total average equity

$     1,814,981



$            1,779,852



$            1,748,825
























Year ended,





(In thousands)

December 31, 2016


December 31, 2015














Interest-earning assets

Average Balance

Average

Yield/Rate (1)


Average Balance

Average

Yield/Rate (1)





Loans (1)

$   10,622,160

4.46%


$            9,593,448

4.46%





Taxable investment securities 

1,372,916

1.56%


1,378,641

1.56%





FHLB stock

17,516

11.98%


21,480

14.73%





Deposits with banks

345,136

0.51%


192,763

0.73%















 Total interest-earning assets

$   12,357,728

4.04%


$          11,186,332

4.06%















Interest-bearing liabilities










Interest-bearing demand deposits

$     1,046,046

0.17%


$               860,513

0.16%





Money market deposits

2,059,823

0.65%


1,677,065

0.60%





Savings deposits

636,422

0.16%


590,987

0.15%





Time deposits

4,810,746

0.90%


4,673,862

0.84%





 Total interest-bearing deposits

$     8,553,037

0.69%


$            7,802,427

0.67%





Securities sold under agreements to repurchase

381,967

4.01%


400,822

3.95%





Other borrowed funds

126,720

0.52%


105,367

0.46%





Long-term debt

119,136

4.86%


119,136

4.85%





 Total interest-bearing liabilities

9,180,860

0.88%


8,427,752

0.88%















Non-interest-bearing demand deposits

2,199,274



1,781,981
















Total deposits and other borrowed funds

$   11,380,134



$          10,209,733
















Total average assets

$   13,331,148



$          12,056,531






Total average equity

$     1,772,017



$            1,692,826






















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
















 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cathay-general-bancorp-announces-fourth-quarter-and-full-year-2016-results-300396800.html

SOURCE Cathay General Bancorp



Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today