Financial Data and Key Metrics Changes - Net income for Q1 2024 decreased by $11.1 million or 13.4% to $71.4 million compared to $82.5 million in the previous quarter, primarily due to a $9 million unrealized loss on equity securities and a $2.9 million accrual for the FDIC special assessment [71] - Diluted earnings per share decreased by 13.5% to $0.98 per share for Q1 2024 compared to $1.13 per share in the previous quarter [23] - Total gross loans decreased by $119 million or 2.4% annualized, with commercial real estate loans increasing by $92 million or 3.8% annualized, while commercial loans decreased by $172 million or 20.9% annualized [23] Business Line Data and Key Metrics Changes - The loan portfolio consists of 64% fixed rate and hybrid loans, with fixed rate loans comprising 30% and hybrid loans in fixed rate period comprising 34% of total loans [7] - Office property loans represent 15% of the total commercial real estate loan portfolio, with only 34% of the $1.5 billion in office property loans collateralized by pure office buildings [8] - Classified loans increased to $244 million from $200 million as of December 31, 2023, while special mention loans decreased to $249 million from $308 million [9] Market Data and Key Metrics Changes - Total deposits increased by $520.8 million or 10.8% annualized during Q1 2024, with total core deposits increasing by $210.9 million or 8.4% annualized [10] - Total uninsured deposits were $8.1 billion, net of $0.7 billion in collateralized deposits, representing 40.7% of total deposits [27] Company Strategy and Development Direction - The company expects overall deposit growth to continue in an estimated range between 4% and 5% [10] - The net interest margin for Q1 2024 was 3.05%, down from 3.27% in the previous quarter, with an estimated range for 2024 between 3.05% to 3.15% based on expectations for two rate cuts [12][29] Management's Comments on Operating Environment and Future Outlook - Management revised overall loan growth guidance for 2024 to range between 3% and 4% due to slower than expected loan growth in Q1 2024 [23] - The effective tax rate for Q1 2024 was 10.76%, with expectations for an effective tax rate of between 12% and 13% for 2024 [14] Other Important Information - Non-interest income decreased by $16.5 million to $6.6 million compared to $23.1 million in the previous quarter, primarily due to an increase in unrealized loss on equity securities [13] - Non-accrual loans were 0.5% of total loans as of March 31, 2024, increasing by $31.4 million to $98.1 million compared to the previous quarter [25] Q&A Session Summary Question: Can you provide the average margin in March and the spot rate on interest-bearing deposits at the end of March? - The NIM for March was 2.99%, and the spot rate for interest-bearing deposits at the end of March was 3.8% [15] Question: What is the expected amortization for low-income housing tax credits in the upcoming quarters? - The expected amortization is $10.5 million per quarter for the next three quarters [16] Question: What factors could move the NIM from the lower end to the higher end of the guidance range? - The impact of rate cuts is a significant factor influencing the NIM guidance [41] Question: How do you view the stability of non-interest bearing deposits for the second half of the year? - Management believes some fluctuations are seasonal, with expectations for DDA balances to stabilize later in the year [54]

Cathay General (CATY) reported $175.18 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 15.2%. EPS of $1.10 for the same period compares to $1.32 a year ago.The reported revenue represents a surprise of -7.24% over the Zacks Consensus Estimate of $188.85 million. With the consensus EPS estimate being $1.02, the EPS surprise was +7.84%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall S ...

Cathay General (CATY) came out with quarterly earnings of $1.10 per share, beating the Zacks Consensus Estimate of $1.02 per share. This compares to earnings of $1.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.84%. A quarter ago, it was expected that this holding company for Cathay Bank would post earnings of $1.10 per share when it actually produced earnings of $1.25, delivering a surprise of 13.64%.Over the last four ...

ASSET QUALITY REVIEW FOR IMMEDIATE RELEASE Los Angeles, Calif., April 22, 2024: Cathay General Bancorp (the "Company", "we", "us", or "our") (Nasdaq: CATY), the holding company for Cathay Bank, today announced its unaudited financial results for the quarter ended March 31, 2024. The Company reported net income of $71.4 million, or $0.98 per share, for the first quarter of 2024. The first quarter net income included a $9.0 million or $0.09 per diluted share mark-to market loss from equity securities held by ...

In its upcoming report, Cathay General (CATY) is predicted by Wall Street analysts to post quarterly earnings of $1.02 per share, reflecting a decline of 22.7% compared to the same period last year. Revenues are forecasted to be $188.85 million, representing a year-over-year decrease of 8.6%.The consensus EPS estimate for the quarter has been revised 2% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates du ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Cathay General (CATY) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on April 22, 2024, might help the stock move higher if these key numbers are better than expe ...

Taxation and Regulatory Environment - The Tax Cuts and Jobs Act of 2017 reduced the corporate tax rate from a maximum of 35% to 21%, which is expected to lower future tax expenses[12]. - Taxpayers with consolidated assets over $50 billion are prohibited from deducting FDIC insurance premiums, impacting financial performance[13]. - The Tax Reform Act limits deductions for employee compensation exceeding $1 million per year, affecting the company's ability to deduct certain high compensation[14]. - The company may incur additional compliance costs due to heightened regulatory concerns related to various consumer protection laws[29]. - Future legislative changes may alter the regulatory landscape, increasing supervision and compliance costs for the company[17]. - The company is subject to the Sarbanes-Oxley Act, requiring management to assess the effectiveness of internal controls over financial reporting as of December 31, 2023[39]. - The company is regulated as a bank holding company by the Federal Reserve and as a commercial bank by the California Department of Financial Protection and Innovation[71]. Financial Performance and Risk - The allowance for credit losses is an estimate, and actual credit losses exceeding this estimate could adversely affect financial results[20]. - The company is subject to interest rate risk, which could reduce net interest income and negatively impact business operations[21]. - The bank's performance is influenced by monetary policies, which affect interest rates on loans and deposits[38]. - The Bank utilizes a net interest income simulation model to assess interest rate risk, projecting future earnings under various interest rate scenarios[896]. - Interest-sensitive assets include loans totaling $19.55 billion with an average interest rate of 6.00%, while interest-sensitive liabilities total $6.46 billion with an average interest rate of 2.21%[899]. - The Bank's time deposits amount to $9.33 billion with an average interest rate of 3.75%[899]. - The Bank's advances from the Federal Home Loan Bank total $540 million at an average interest rate of 5.64%[899]. - The Bank's strategy includes monitoring and managing interest rate risk to minimize adverse effects on earnings and cash flows[895]. Operational and Market Risks - The company faces operational risks due to ineffective risk management processes, which could lead to significant losses[24]. - Environmental liabilities may arise from properties the company forecloses on, potentially leading to substantial investigation and remediation costs[35]. - The bank's loan portfolio is primarily secured by real estate, indicating potential vulnerability to downturns in the real estate market[40]. Company Structure and Operations - As of December 31, 2023, the company reported total consolidated assets of $23.08 billion, net loans of $19.38 billion, deposits of $19.33 billion, and shareholders' equity of $2.74 billion[55]. - The company operates 24 branches in Southern California, 19 in Northern California, and additional branches in New York, Washington, Illinois, Texas, Maryland, Massachusetts, Nevada, New Jersey, and Hong Kong[76]. - The bank offers a range of financial products including commercial real estate loans, SBA loans, and residential mortgage loans, targeting individuals and small to medium-sized businesses[77]. - The company has a centralized document department that supervises the loan application process, ensuring thorough documentation and review[81]. - The bank's securities portfolio is managed according to a written investment policy reviewed annually by the Board of Directors[79]. - The Bank holds a preferred lender status for SBA loans, allowing it to expedite the loan processing time under the 7(a) program, which is used for various business financing needs[84]. - The Bank originates single-family residential mortgage loans, including conforming, non-conforming, and jumbo loans, and retains all originated loans in its portfolio, thus avoiding risk retention requirements under the Dodd-Frank Act[85]. - The Bank offers variable-rate home equity lines of credit, generally tied to the prime rate, for purposes such as home improvement and debt consolidation[86]. Workforce and Demographics - As of December 31, 2023, the Bank employed approximately 1,246 full-time equivalent employees, with 740 being banking officers[96]. - The employee demographic includes 80% of Asian descent, 13% from non-Asian underrepresented groups, and 7% Caucasian, with 57% of management positions held by women[97].

Financial Data and Key Metrics Changes - The company reported net income of $82.5 million for Q4 2023, a slight increase of 0.1% compared to $82.4 million in Q3 2023 [8][26] - Diluted earnings per share remained stable at $1.13 for Q4 2023, unchanged from Q3 2023 [21] - Net interest margin decreased to 3.27% in Q4 2023 from 3.38% in Q3 2023 [13] - Non-interest expense increased by 17.6% to $110.5 million in Q4 2023, primarily due to FDIC special assessments and higher salaries [14][26] Business Line Data and Key Metrics Changes - Gross loans increased by $524 million, or 11.5% annualized, in Q4 2023, driven by increases in commercial real estate loans, residential mortgage loans, and commercial loans [21] - Net charge-offs were $4.1 million in Q4 2023, down from $6.6 million in Q3 2023 [10] - The average loan-to-value ratio for commercial real estate loans was 50% as of December 31, 2023 [9] Market Data and Key Metrics Changes - Total average deposits increased by $244.3 million, or 5.2% annualized, during Q4 2023 [11] - Total uninsured deposits were $8.7 billion, with uninsured and uncollateralized deposits at $7.9 billion, representing 40.9% of total deposits [24] Company Strategy and Development Direction - The company expects overall deposit growth for 2024 to range between 4% and 5% [11] - Loan growth for 2024 is anticipated to be between 4% and 5% [21] - The company plans to engage in discussions with the Federal Reserve regarding capital buybacks in Q1 2024 [41] Management's Comments on Operating Environment and Future Outlook - Management noted a provision for credit loss of $1.7 million in Q4 2023, down from $7 million in Q3 2023, indicating improved credit quality [23] - The effective tax rate for Q4 2023 was 11.28%, slightly up from 10.95% in Q3 2023 [28] - Management expects net interest margin for 2024 to be between 3.15% and 3.25%, based on anticipated Fed rate cuts [27][52] Other Important Information - The company recorded a $9 million unrealized gain on equity securities in Q4 2023, compared to a $6.2 million unrealized loss in Q3 2023 [26] - The company has unused borrowing capacity from the Federal Home Loan Bank of $6.6 billion as of December 31, 2023 [12] Q&A Session Summary Question: What are the updated thoughts on capital and buyback? - Management plans to discuss with the Fed in Q1 regarding buyback approvals, with potential activity in Q2 [41][42] Question: What is the outlook for net interest margin? - The company expects three Fed rate cuts in 2024, which will influence net interest margin [52] Question: What are the drivers of loan growth for 2024? - Management anticipates modest growth in commercial mortgages and increased activity if rate cuts occur [68]

• $19.3 billion Total Loan Portfolio • $19.5 billion as of 12.31.23 Commercial Real Estate Portfolio Multi-Family Residential Office CRE Portfolio % based on $1.54 billion loans outstanding $ in millions Office CRE Loan Portfolio -5 5 15 25 35 45 55 65 75 85 0% 20% 40% 60% 80% 100% 533 649 440 530 830 581 778 458 560 921 593 790 477 575 946 613 840 496 595 935 621 847 514 598 964 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1000 Total Loans C & I Residential Mortgage CRE Cons ...

For the quarter ended December 2023, Cathay General (CATY) reported revenue of $205.24 million, down 4.1% over the same period last year. EPS came in at $1.25, compared to $1.33 in the year-ago quarter.The reported revenue represents a surprise of +3.68% over the Zacks Consensus Estimate of $197.95 million. With the consensus EPS estimate being $1.10, the EPS surprise was +13.64%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...