Cathay General Bancorp(CATY) - 2021 Q1 - Quarterly Report

Financial Performance - Net income for Q1 2021 was $73.4 million, an increase of$26.5 million, or 56.5%, compared to $46.9 million in Q1 2020[230] - Diluted earnings per share for Q1 2021 was$0.92, up from $0.59 in the same quarter a year ago[230] - Non-interest income rose to$10.0 million, a 72.4% increase compared to $5.8 million in the same quarter last year[243] - The net interest income before provision for credit losses increased by$1.5 million, or 1.1%, to $141.8 million in Q1 2021[233] - Return on average stockholders' equity was 12.18$15,691,976 thousand with a net interest income of $141,818 thousand, reflecting a yield of 4.13$19,011,161 thousand, an increase from $18,003,041 thousand[1] - Total assets increased by$187.1 million, or 1.0%, to $19.2 billion as of March 31, 2021, compared to$19.0 billion as of December 31, 2020[247] - Securities available-for-sale decreased to $0.9 billion, representing 4.7$16.4 billion at March 31, 2021, an increase of $244.2 million, or 1.5$16.1 billion at December 31, 2020[303] - Total equity was $2.46 billion as of March 31, 2021, an increase of$45.1 million from $2.42 billion as of December 31, 2020[314] Credit Quality and Loan Losses - The allowance for loan losses decreased by$19.8 million to $147.3 million, representing 0.94$9,138 thousand, significantly higher than $1,321 thousand in the same quarter last year[241] - Non-performing assets increased by$23.9 million, or 30.8%, to $101.5 million at March 31, 2021, compared to$77.6 million at December 31, 2020[262] - The ratio of non-performing assets to total assets was 0.5% at March 31, 2021, compared to 0.4% at December 31, 2020[262] - The allowance for loan losses to non-performing loans was 152.5% as of March 31, 2021, compared to 229.2% as of December 31, 2020[272] Capital Adequacy - As of March 31, 2021, Cathay General Bancorp's Common Equity Tier 1 to Risk-Weighted Assets ratio was 14.00%, exceeding the minimum required ratio of 7.00%[319] - Cathay Bank reported a Total Capital to Risk-Weighted Assets ratio of 15.25% as of March 31, 2021, above the minimum requirement of 10.50%[319] - Capital levels at Bancorp and the Bank exceed all capital adequacy requirements under the fully phased-in Basel III Capital Rules as of March 31, 2021[319] Derivative Instruments and Interest Rate Risk - The notional amount of interest rate swap contracts as of March 31, 2021, was $119.1 million, with a weighted average fixed rate of 2.61$819.8 million as of March 31, 2021, with a weighted average fixed rate of 3.26%[329] - The estimated impact of a +200 basis point change in interest rates would result in a 16.6% increase in net interest income volatility[343] Operational Efficiency - Non-interest expense increased by $6.2 million, or 9.5$71.4 million, driven by higher salaries and contributions to the Cathay Bank Foundation[244] - The efficiency ratio was reported at 47.0%, up from 44.6% in the same quarter last year[244] - The Company declared a cash dividend of $0.31 per share on 79,514,076 shares, resulting in total cash dividends of$24.6 million in Q1 2021[322]