Cathay General Bancorp(US:CATY)2024-07-22 20:31Financial Performance - Net income for the second quarter of 2024 was $66.8 million, or $0.92 per share, down from $71.4 million, or $0.98 per share in the first quarter of 2024[10]. - Net income for the second quarter of 2024 was $66.8 million, a decrease of 6.4% from $71.4 million in the first quarter of 2024[36]. - Diluted earnings per share decreased to $0.92 for the second quarter of 2024 compared to $0.98 for the first quarter of 2024[36]. - Basic net income per common share for the three months ended June 30, 2024, was $0.92, down from $0.98 in the previous quarter and $1.29 in the same quarter last year[65]. - Tangible net income for the three months ended June 30, 2024, was $67,019,000, down from $71,667,000 in the previous quarter and $93,621,000 in the same quarter last year[66]. Income and Expenses - Non-interest income rose to $13.2 million, a 100.0% increase compared to $6.6 million in the first quarter of 2024, driven by a decrease in unrealized losses on equity securities[16]. - Non-interest expense increased by $6.1 million, or 6.5%, to $99.3 million in the second quarter of 2024 compared to $93.2 million in the first quarter of 2024[41]. - Total non-interest expense increased to $99,352,000 for the three months ended June 30, 2024, from $93,239,000 in the previous quarter and $92,821,000 in the same quarter last year[65]. Loans and Credit Losses - Gross loans decreased by $71.9 million, or 0.4%, to $19.36 billion as of June 30, 2024, primarily due to a $59.6 million decrease in residential mortgage loans[7]. - The provision for credit losses increased to $6.6 million in the second quarter of 2024, compared to $1.9 million in the first quarter[14]. - Provision for credit losses increased to $6,600,000 for the three months ended June 30, 2024, compared to $1,900,000 in the previous quarter and $9,155,000 in the same quarter last year[65]. Capital and Ratios - The Company's Tier 1 risk-based capital ratio improved to 13.26% as of June 30, 2024, from 13.08% as of March 31, 2024, indicating strong capital position[21]. - The Tier 1 risk-based capital ratio improved to 13.26% as of June 30, 2024, compared to 13.08% as of March 31, 2024[50]. - Total stockholders' equity reached $2,793,242 thousand, up from $2,602,671 thousand in the previous year, indicating a strong capital position[1]. Asset Management - Total assets decreased to $23,235,245 thousand as of June 30, 2024, from $23,404,803 thousand as of March 31, 2024[28]. - Total deposits as of June 30, 2024, were $19.77 billion, a slight decrease from $19.85 billion as of March 31, 2024[19]. - Total deposits decreased to $19,773,017 thousand as of June 30, 2024, from $19,846,259 thousand as of March 31, 2024[28]. - Total interest-earning assets increased to $22,187,849 thousand with an average yield of 6.03% as of June 30, 2024, compared to $21,028,593 thousand and 5.61% in the previous year[1]. Efficiency and Performance Ratios - The efficiency ratio for the second quarter of 2024 was 55.65%, compared to 53.22% in the first quarter of 2024, indicating a decline in operational efficiency[10]. - Return on average assets decreased to 1.15% for the second quarter of 2024 from 1.23% in the previous quarter[27]. - Return on average total stockholders' equity decreased to 9.63% for the second quarter of 2024 compared to 10.40% in the first quarter of 2024[27]. - Non-performing assets to total assets ratio was 0.56% as of June 30, 2024, an increase from 0.53% as of March 31, 2024, with total non-performing assets rising to $129.0 million[1]. Shareholder Returns - Cash dividends paid per common share remained stable at $0.34 for both the second quarter of 2024 and the first quarter of 2024[51]. - Cash dividends paid per common share remained stable at $0.34 for the three months ended June 30, 2024, consistent with the previous quarter and the same quarter last year[65]. Stock Repurchase - The company announced a new stock repurchase program to buy back up to $125.0 million of its common stock[35].