Financial Overview - As of December 31, 2024, total consolidated assets were $23.05 billion, net loans were $19.20 billion, deposits were $19.69 billion, and shareholders' equity was $2.85 billion[17]. - As of December 31, 2024, Cathay Bank employed approximately 1,266 regular full-time equivalent employees, with 1,226 located in the United States and 40 in China, Hong Kong, and Taiwan[58]. - The Bancorp's common equity Tier 1 capital ratios were 13.54% and 13.84% for the Bancorp and the Bank, respectively, as of December 31, 2024, exceeding the minimum requirements to be deemed "well-capitalized"[90]. - The total risk-based capital ratios for the Bancorp and the Bank were 15.08% and 14.76%, respectively, also surpassing regulatory minimums[90]. - The Tier 1 risk-based capital ratios were 13.54% for the Bancorp and 13.84% for the Bank, indicating strong capital positions[90]. - The leverage capital ratios stood at 10.96% for the Bancorp and 11.20% for the Bank, well above the required thresholds[90]. Branch and Market Presence - The Bank operates 24 branches in Southern California, 18 in Northern California, and additional branches in New York, Washington, Illinois, Texas, Maryland, Massachusetts, Nevada, New Jersey, and Hong Kong[22][23]. - The Bank operates branches in multiple states including California, New York, and Texas, as well as international offices in Hong Kong and mainland China[79]. Lending and Loan Products - The Bank's commercial loans focus on small-to-medium-sized businesses, with a typical loan amount exceeding $25 million being syndicated with other financial institutions[34]. - The Bank has preferred lender status for SBA loans, allowing for expedited processing under the 7(a) program, which can be used for various business financing needs[35]. - The Bank's residential mortgage loans include conforming, non-conforming, and jumbo loans, with a focus on retaining all originated loans in its portfolio[38]. - The Bank's lending policies require regular reviews of the loan portfolio to monitor asset quality and take necessary actions for loans at risk of default[44]. Employee and Diversity Initiatives - The Bank's employee diversity includes 79% of employees being of Asian descent, 14% from non-Asian minority groups, and 7% Caucasian, with 55% of management positions held by women[61]. - The Bank's Well-Being program has 64% employee participation, encouraging healthy habits and offering discounts on medical premiums[68]. - The Bank's talent strategy focuses on recruitment and retention, with a competitive compensation and benefits package including healthcare and 401(k) benefits[63]. Community Commitment and Investments - The Bank invests in tax-advantaged projects promoting affordable housing and renewable energy, generating returns primarily through federal and state income tax credits[43]. - The Bank's commitment to inclusion extends to community investments in affordable housing and renewable energy projects, as well as programs for the underbanked[62]. Regulatory Environment - The regulatory environment includes limitations on dividends payable to stockholders and requirements for banks to maintain safe and sound operations[76]. - The Bank received a "Satisfactory" CRA rating in its last reported examination by the FDIC in June 2019, indicating compliance with community credit needs[76]. - The Bancorp is subject to the Sarbanes-Oxley Act and must assess the effectiveness of its internal control over financial reporting by December 31, 2024[147]. - The Bancorp is expected to act as a source of financial and managerial strength to its subsidiary Bank[111]. Interest Rate Sensitivity - At December 31, 2024, a 100 basis points increase in interest rates would lead to a projected 7.5% increase in net interest income over the next twelve months[422]. - Conversely, a 200 basis points decrease in interest rates would result in a projected 10.3% decrease in net interest income over the next twelve months[422]. - The economic value of equity would decrease by 6.8% if interest rates increased by 200 basis points, while a decrease of 200 basis points would increase the economic value of equity by 4.7%[423]. - The Bancorp's asset and liability management aims to minimize adverse effects of interest rate changes on earnings and cash flows[419]. Compliance and Risk Management - The Bank may incur additional compliance costs due to heightened regulatory concerns related to consumer protection and anti-money laundering laws[134]. - The Federal Reserve's guidance on climate-related financial risk management may eventually apply to smaller banking organizations like the Bank[142]. - The Bank is subject to environmental liabilities related to properties it may foreclose on, which could incur substantial investigation or remediation costs[139]. Marketing and Competition - The Bank utilizes traditional marketing methods and special deposit promotions to attract new clients and deposits[48]. - The Bank faces substantial competition for deposits and loans from various financial institutions, including larger Chinese-American banks and super-regional banks[53].

Group 1: Peoples Financial Services Corp. (PFIS) - The company is a bank holding company for Peoples Security Bank and carries a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 10.2% over the last 60 days [1] - The price-to-earnings ratio (P/E) is 8.86, compared to the industry average of 10.30, indicating strong value characteristics [1] - The company possesses a Value Score of B [1] Group 2: Cathay General Bancorp (CATY) - The company is a holding company for Cathay Bank and carries a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 7.5% over the last 60 days [2] - The price-to-earnings ratio (P/E) is 10.43, compared to the industry average of 14.50, indicating strong value characteristics [2] - The company possesses a Value Score of B [2] Group 3: RCI Hospitality Holdings, Inc. (RICK) - The company is a hospitality holding company and carries a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 8.9% over the last 60 days [3] - The price-to-earnings ratio (P/E) is 11.46, compared to the industry average of 20.90, indicating strong value characteristics [3] - The company possesses a Value Score of B [3]

Financial Data and Key Metrics - The company has not provided specific financial data or key metrics in the provided content [1][2][3][4][5] Business Line Data and Key Metrics - No specific data or metrics related to individual business lines were mentioned in the provided content [1][2][3][4][5] Market Data and Key Metrics - No specific market data or key metrics were discussed in the provided content [1][2][3][4][5] Company Strategy and Industry Competition - The company has not disclosed any details regarding its strategy, development direction, or industry competition in the provided content [1][2][3][4][5] Management Commentary on Operating Environment and Future Outlook - The company has not provided any specific commentary on the operating environment or future outlook in the provided content [1][2][3][4][5] Other Important Information - The company reminded participants that forward-looking statements made during the call are subject to risks and uncertainties, which could cause actual results to differ materially [4][5] - These risks and uncertainties are further described in the company's annual report on Form 10-K for the year ended December 31, 2023, and in other reports filed with the SEC [4][5] Q&A Session Summary - No Q&A session details were provided in the content [1][2][3][4][5]

Group 1 - Cathay General (CATY) reported revenue of $186.49 million for Q4 2024, a year-over-year decline of 9.1%, with EPS of $1.12 compared to $1.25 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $185 million, resulting in a surprise of +0.80%, while the EPS surprise was +0.90% against a consensus estimate of $1.11 [1] - The stock has returned +1.3% over the past month, underperforming the Zacks S&P 500 composite's +2.1% change, and currently holds a Zacks Rank 3 (Hold) [3] Group 2 - Efficiency Ratio was reported at 45.7%, higher than the estimated 44.7% by two analysts [4] - Net Interest Margin stood at 3.1%, exceeding the two-analyst average estimate of 3% [4] - Total Non-Interest Income was $15.47 million, surpassing the average estimate of $14.50 million by two analysts [4]

Group 1 - Cathay General (CATY) reported quarterly earnings of $1.12 per share, exceeding the Zacks Consensus Estimate of $1.11 per share, but down from $1.25 per share a year ago, representing an earnings surprise of 0.90% [1] - The company posted revenues of $186.49 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.80%, but down from $205.24 million year-over-year [2] - Over the last four quarters, Cathay has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - Cathay shares have increased by approximately 2.4% since the beginning of the year, compared to a 2.9% gain in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.94 on $180 million in revenues, and for the current fiscal year, it is $4.16 on $731 million in revenues [7] Group 3 - The Zacks Industry Rank indicates that the Banks - West industry is currently in the top 37% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Cathay is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]

Financial Performance - For the year ended December 31, 2024, net income was $286.0 million, or $3.95 per diluted share, compared to $354.1 million for 2023[2] - Net income for the year ended December 31, 2024, was $286.0 million, a decrease of $68.1 million, or 19.2%, compared to $354.1 million for the year ended December 31, 2023[24] - Diluted earnings per share for the year ended December 31, 2024, was $3.95, down from $4.86 per share for the year ended December 31, 2023[24] - Net income for the fourth quarter of 2024 was $80.2 million, an increase of $12.7 million, or 18.8%, from $67.5 million in the third quarter of 2024[5] - Net income for the three months ended December 31, 2024, was $80,201 thousand, an increase from $67,514 thousand in the previous quarter[42] Income and Expenses - Non-interest income for the year ended December 31, 2024, was $55.7 million, down from $68.3 million for the year ended December 31, 2023[32] - Non-interest income for the fourth quarter of 2024 was $15.5 million, a decrease of $4.9 million, or 23.9%, compared to $20.4 million in the third quarter[14] - Non-interest income for the three months ended December 31, 2024, was $15,473 thousand, down from $20,365 thousand in the previous quarter, a decrease of 24.1%[36] - Non-interest expense decreased by $11.7 million, or 12.0%, to $85.2 million in the fourth quarter of 2024 compared to $96.9 million in the third quarter[15] Loans and Deposits - Total loans decreased to $19.38 billion, a decline of $172.2 million, or 0.9%, from $19.55 billion as of December 31, 2023[17] - Total deposits increased by $360.8 million, or 1.9%, to $19.69 billion as of December 31, 2024, compared to $19.33 billion in 2023[17] - Total deposits decreased to $19,686,199 thousand as of December 31, 2024, from $19,943,941 thousand at September 30, 2024, a decrease of 1.29%[34] - Time deposits decreased to $9,570,601 thousand as of December 31, 2024, from $10,245,823 thousand at September 30, 2024, a decline of 6.6%[34] Asset Quality - The allowance for loan losses was $161.8 million, representing 0.83% of period-end gross loans as of December 31, 2024[21] - Total non-accrual loans increased to $169.2 million, an increase of $102.5 million, or 153.7%, from $66.7 million as of December 31, 2023[20] - As of December 31, 2024, total non-performing assets increased by $103.0 million, or 110.4%, to $196.3 million compared to $93.3 million as of December 31, 2023[22] - The allowance for loan losses to non-performing loans ratio was 93.39% as of December 31, 2024, compared to 209.33% as of December 31, 2023[22] Capital and Ratios - The Tier 1 risk-based capital ratio was 13.55% as of December 31, 2024, up from 12.84% as of December 31, 2023, indicating a strong capital position[23] - The total stockholders' equity to total assets ratio was 12.34% as of December 31, 2024, compared to 11.86% a year earlier[42] - The tangible equity to tangible assets ratio increased to 10.88% as of December 31, 2024, from 10.38% a year prior[42] - Return on average stockholders' equity decreased to 10.18% for the year ended December 31, 2024, from 13.56% for the year ended December 31, 2023[25] Interest Margin and Yield - The net interest margin increased to 3.07% in the fourth quarter of 2024 from 3.04% in the third quarter[9] - The net interest margin for the year ended December 31, 2024, was 3.04%, compared to 3.45% for the year ended December 31, 2023[24] - Average loans for the three months ended December 31, 2024, were $19,345,616 thousand with a yield of 6.19%[38] - Total interest-earning assets for the same period were $22,170,939 thousand, yielding 5.92%[38] Other Metrics - The efficiency ratio for the year ended December 31, 2024, was 51.35%, compared to 46.97% for the year ended December 31, 2023[25] - Book value per common share increased to $40.16 as of December 31, 2024, compared to $39.66 at September 30, 2024, an increase of 1.26%[34] - Cash dividends paid per common share remained stable at $0.34 for both the current and previous quarters[37] - Total average assets as of December 31, 2024, were $23,332,869 thousand, compared to $23,304,836 thousand a year earlier[38]

Core Viewpoint - Analysts expect Cathay General (CATY) to report quarterly earnings of $1.11 per share, reflecting an 11.2% year-over-year decline, with revenues projected at $185 million, down 9.9% from the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 3.1% in the past 30 days, indicating a reassessment by covering analysts [1][2] Key Metrics - Analysts project the 'Efficiency Ratio' to reach 44.7%, a decrease from 53.8% reported in the same quarter last year [4] - The 'Net Interest Margin' is expected to be 3.0%, down from 3.3% in the previous year [4] - The 'Average balance - Total interest-earning assets' is estimated at $22.18 billion, slightly up from $22.07 billion reported last year [5] - 'Net interest income before provision for loan losses' is projected at $169.32 million, compared to $182.14 million a year ago [5] - 'Total Non-Interest Income' is estimated at $14.50 million, down from $23.10 million in the previous year [6] Stock Performance - Over the past month, shares of Cathay have returned +2%, while the Zacks S&P 500 composite has declined by -2.1% [6] - Currently, CATY holds a Zacks Rank 3 (Hold), suggesting performance may align with the overall market in the near future [6]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings and revenues for Cathay General (CATY) in the upcoming earnings report, with a focus on how actual results compare to estimates [1][3]. Earnings Expectations - The expected quarterly earnings per share (EPS) for Cathay is $1.11, reflecting an 11.2% decrease year-over-year [3]. - Revenues are projected to be $185 million, down 9.9% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 3.11% over the last 30 days, indicating a bearish sentiment among analysts [4]. - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -4.79%, complicating predictions for an earnings beat [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from consensus estimates, with positive readings being more predictive of earnings beats [7][8]. - Cathay's current Zacks Rank is 3, which does not strongly support the likelihood of an earnings beat [11]. Historical Performance - In the last reported quarter, Cathay's actual earnings of $0.97 per share fell short of the expected $0.98, resulting in a surprise of -1.02% [12]. - Over the past four quarters, Cathay has beaten consensus EPS estimates three times [13]. Market Reaction Factors - An earnings beat or miss may not solely dictate stock price movement, as other factors can influence investor sentiment [14]. - Despite not appearing as a compelling earnings-beat candidate, other market conditions should be considered when evaluating Cathay's stock ahead of the earnings release [16].

Financial Performance - Total assets increased to $23,274,443 thousand as of September 30, 2024, compared to $23,081,534 thousand at December 31, 2023, reflecting a growth of approximately 0.83%[8] - Total deposits rose to $19,943,941 thousand, up from $19,325,447 thousand, representing an increase of approximately 3.20%[8] - Retained earnings increased to $2,632,315 thousand, up from $2,500,341 thousand, reflecting a growth of approximately 5.28%[8] - The company reported a total stockholders' equity of $2,830,313 thousand, up from $2,736,575 thousand, reflecting an increase of about 3.43%[8] - Net income for Q3 2024 was $67,514,000, down from $82,371,000 in Q3 2023, reflecting a decrease of 18.0%[9] - Basic earnings per share for Q3 2024 was $0.94, compared to $1.14 in Q3 2023, a decline of 17.5%[9] - Total comprehensive income for Q3 2024 was $94,121,000, compared to $57,887,000 in Q3 2023, an increase of 62.4%[9] - Net income for the nine months ended September 30, 2024, was $205,778,000, a decrease from $271,598,000 for the same period in 2023, representing a decline of approximately 24.2%[14] Loan and Credit Quality - Loans held for investment decreased to $19,199,355 thousand from $19,382,858 thousand, a decline of about 0.94%[8] - The allowance for loan losses increased to $163,733 thousand from $154,562 thousand, indicating a rise of about 5.50%[8] - Total non-accrual loans amounted to $162,834 thousand as of September 30, 2024, compared to $66,681 thousand as of December 31, 2023, showing a significant increase[54] - The provision for credit losses was $14,500,000 in Q3 2024, up from $7,000,000 in Q3 2023, indicating a rise of 107.1%[9] - The provision for credit losses for the nine months ended September 30, 2024, was $23,000,000, slightly lower than $24,255,000 for the same period in 2023[14] - The allowance for loan losses as of September 30, 2024, is $163,733,000, an increase from $155,109,000 as of September 30, 2023[93] Deposits and Funding - Non-interest-bearing deposits decreased to $3,253,823 thousand from $3,529,018 thousand, a decline of about 7.80%[8] - Total liabilities increased to $20,444,130 thousand from $20,344,959 thousand, a growth of approximately 0.49%[8] - The company had $60.0 million in advances from the Federal Home Loan Bank (FHLB) at a weighted average rate of 5.08% as of September 30, 2024, compared to $540.0 million at a rate of 5.64% as of December 31, 2023[110] Non-Interest Income - Total non-interest income totaled $20,365,000 in Q3 2024, compared to $7,837,000 in Q3 2023, showing a significant increase of 160.5%[9] - Wealth management fees increased to $6,545 thousand in September 2024 from $5,150 thousand in September 2023, reflecting a growth of 27.0%[156] - Other service fees increased to $5,039 thousand in September 2024 from $4,424 thousand in September 2023, marking a growth of 13.9%[156] Stockholder Actions - The company repurchased 832,460 shares at an average cost of $42.00 per share during the third quarter, totaling $35.0 million[168] - The company announced a new stock repurchase program on May 28, 2024, to buy back up to $125.0 million of its common stock[168] Risk Management and Outlook - The company continues to face various risks including credit risks, regulatory changes, and market conditions that could impact future performance[5] - The company has no intention to update any forward-looking statements unless required by law, indicating a stable outlook[7] - The company expects the most significant estimate subject to change to be the allowance for loan losses, which could affect reported amounts of assets and liabilities[18] Regulatory and Accounting Changes - The company has determined that the adoption of ASU 2023-07 will not have a significant impact on its Consolidated Financial Statements[22] - The company is currently evaluating the impact of the SEC's climate-related disclosure rules, which will apply to its fiscal year beginning January 1, 2025[23]

Financial Earnings Results Third Quarter 2024 October 21, 2024 Forward Looking Statements This presentation contains forward-looking statements about Cathay General Bancorp and its subsidiaries (collectively referred to herein as the "Company," "we," "us," or "our") within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provision for forward-looking statements in these provisions. Sta ...