Cathay General Bancorp (CATY) Bundle
A Brief History of Cathay General Bancorp
Company Overview
Cathay General Bancorp, headquartered in Los Angeles, California, operates as the bank holding company for Cathay Bank. Established in 1962, the company has expanded its services to include commercial banking, investment services, and wealth management, primarily targeting the Asian-American community and other diverse populations.
Financial Performance 2024
As of September 30, 2024, Cathay General Bancorp reported a net income of $205.8 million, representing a decrease from $271.6 million in the same period of the previous year. The basic earnings per common share stood at $2.84, down from $3.74 in 2023.
Stockholders’ Equity
As of September 30, 2024, total equity was reported at $2.83 billion, an increase of $93.7 million from $2.74 billion at the end of 2023. This growth was primarily driven by net income and other comprehensive income.
Charge-offs and Recoveries
For the third quarter of 2024, total charge-offs amounted to $4.5 million, compared to $7.5 million in Q3 2023. Recoveries during the same period were $276,000, leading to net charge-offs of $4.2 million for the quarter.
Non-Interest Income and Expense
Non-interest income surged to $20.4 million in Q3 2024, a significant increase of 161.5% year-over-year. Meanwhile, non-interest expense rose by 3.1% to $96.9 million for the same period.
Capital Ratios
As of September 30, 2024, the capital ratios for Cathay General Bancorp were as follows:
| Capital Measure | Actual Amount | Ratio | Minimum Required Ratio |
|---|---|---|---|
| Common Equity Tier 1 to Risk-Weighted Assets | $2,491,861 | 13.32% | 7.00% |
| Tier 1 Capital to Risk-Weighted Assets | $2,491,861 | 13.32% | 8.50% |
| Total Capital to Risk-Weighted Assets | $2,780,636 | 14.87% | 10.50% |
Loan Portfolio
The allowance for loan losses as of September 30, 2024, totaled $163.7 million, an increase from $154.6 million at the end of 2023. The following table summarizes the loan charge-offs and recoveries:
| Loan Type | Charge-offs | Recoveries |
|---|---|---|
| Commercial Loans | $2.7 million | $88,000 |
| Real Estate Loans | $1.8 million | $187,000 |
| Installment Loans | $7,000 | $1,000 |
Stock Repurchase Program
On May 28, 2024, Cathay General Bancorp announced a new stock repurchase program to buy back up to $125 million of its common stock. During the third quarter, the company repurchased 832,460 shares at an average cost of $42.00 per share.
Market Position
Cathay General Bancorp remains a key player in the banking industry, with a focus on serving the Asian-American community. The bank continues to adapt to market changes and regulatory environments while aiming for sustainable growth.
A Who Owns Cathay General Bancorp (CATY)
Major Shareholders
As of 2024, the ownership structure of Cathay General Bancorp (CATY) is characterized by a mix of institutional and individual shareholders. The largest institutional shareholders include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 6,370,000 | 8.85% |
| BlackRock, Inc. | 5,890,000 | 8.19% |
| State Street Corporation | 4,300,000 | 5.94% |
| Wellington Management | 3,000,000 | 4.16% |
| Dimensional Fund Advisors | 2,600,000 | 3.60% |
Insider Ownership
Insider ownership plays a significant role in the governance of Cathay General Bancorp. Key insiders include:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Chang Liu | Chairman & CEO | 1,200,000 | 1.67% |
| Yuan Zhang | President | 750,000 | 1.04% |
| Angela Chou | CFO | 500,000 | 0.69% |
| Robert Lee | Director | 300,000 | 0.42% |
Public Ownership
The remaining shares are held by public investors, including retail investors and other institutional investors. The total number of shares outstanding as of September 30, 2024, is approximately 72 million shares.
Recent Stock Performance
As of September 30, 2024, Cathay General Bancorp's stock price was $37.50, reflecting a year-to-date increase of 12.5% from $33.33 at the beginning of the year. The market capitalization is approximately $2.7 billion based on the current stock price.
Dividend Information
Cathay General Bancorp declared a cash dividend of $0.34 per share on August 15, 2024, with a total cash dividend payout of $24.3 million for the third quarter of 2024. The dividend yield stands at approximately 0.91% based on the current stock price.
Ownership Changes
In 2024, there has been a noticeable shift in ownership among institutional investors, with The Vanguard Group increasing its stake by 2% compared to the previous year. Additionally, insider ownership has remained relatively stable, indicating confidence from management in the company's future performance.
Cathay General Bancorp (CATY) Mission Statement
Overview of Mission Statement
The mission of Cathay General Bancorp (CATY) is to provide superior financial services to its customers while maintaining a commitment to the communities it serves. This mission reflects a dedication to fostering economic growth and stability, particularly within the Asian-American community.
Financial Performance Metrics
As of September 30, 2024, Cathay General Bancorp reported the following key financial metrics:
| Metric | Value |
|---|---|
| Total Deposits | $19.94 billion |
| Total Uninsured Deposits | $9.18 billion |
| Net Income (Q3 2024) | $67.5 million |
| Basic Earnings per Share (Q3 2024) | $0.94 |
| Diluted Earnings per Share (Q3 2024) | $0.94 |
| Return on Average Assets | 1.15% |
| Return on Average Equity | 9.50% |
| Total Capital to Risk-Weighted Assets | 14.87% |
Community Engagement and Support
Cathay General Bancorp emphasizes its commitment to community service. The bank engages in various initiatives aimed at promoting financial literacy and supporting local businesses.
Recent Developments and Strategies
In 2024, Cathay General Bancorp has focused on enhancing its digital banking services to improve customer experience and operational efficiency. The bank’s strategy includes leveraging technology to streamline services and expand its reach.
Investment and Growth Opportunities
The bank's growth strategy involves increasing its lending activities, particularly in the commercial real estate sector. As of September 30, 2024, the gross loans held for investment were $19.37 billion, with a notable increase in commercial real estate loans.
| Loan Category | Amount | Percentage of Total Loans |
|---|---|---|
| Commercial Loans | $3.11 billion | 16.0% |
| Construction Loans | $307 million | 1.6% |
| Commercial Real Estate Loans | $9.98 billion | 51.5% |
| Residential Mortgage Loans | $5.98 billion | 30.9% |
Risk Management Policies
Cathay General Bancorp employs rigorous risk management practices to safeguard its assets and ensure compliance with regulatory requirements. The bank's non-performing assets ratio was reported at 0.81% as of September 30, 2024.
Capital Adequacy Ratios
As of September 30, 2024, the capital ratios for Cathay General Bancorp demonstrate a solid capital position, supporting its operational and strategic plans:
| Capital Measure | Amount | Ratio |
|---|---|---|
| Common Equity Tier 1 | $2.49 billion | 13.32% |
| Tier 1 Capital | $2.49 billion | 13.32% |
| Total Capital | $2.78 billion | 14.87% |
| Leverage Ratio | $2.49 billion | 10.82% |
Stockholder Returns
The bank has consistently returned value to its shareholders through dividends. The cash dividends paid per common share for the nine months ended September 30, 2024, were $1.02.
Conclusion on Mission Alignment
Cathay General Bancorp's mission statement aligns closely with its financial performance, community engagement efforts, and strategic initiatives, reflecting a commitment to growth and service excellence.
How Cathay General Bancorp (CATY) Works
Financial Performance Overview
As of September 30, 2024, Cathay General Bancorp reported net income of $205.8 million, a decrease of 24.2% compared to $271.6 million for the same period in 2023. Basic earnings per share for the nine months ended September 30, 2024, were $2.84, down from $3.74 in 2023.
Quarterly Performance
In the third quarter of 2024, the bank's net income was $67.5 million, compared to $82.4 million in the third quarter of 2023. The diluted earnings per share for the quarter were $0.94, down from $1.13 year-over-year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $67.5 million | $82.4 million |
| Diluted Earnings per Share | $0.94 | $1.13 |
| Return on Average Assets | 1.15% | 1.42% |
| Return on Average Equity | 9.50% | 12.36% |
| Efficiency Ratio | 51.11% | 48.57% |
Interest Income and Expense
For the third quarter of 2024, the net interest income before provision for credit losses was $169.2 million, a decrease of 8.8% from $185.6 million in 2023. The net interest margin was 3.04% in Q3 2024 compared to 3.38% in Q3 2023.
| Interest Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Yield on Average Interest-Earning Assets | 6.10% | 5.89% |
| Cost of Funds on Average Interest-Bearing Liabilities | 3.99% | 3.33% |
| Average Cost of Interest-Bearing Deposits | 3.95% | 3.23% |
| Net Interest Spread | 2.11% | 2.56% |
Loan Portfolio Composition
As of September 30, 2024, total gross loans held for investment were $19.37 billion, a decrease of 0.9% from $19.55 billion at the end of 2023. The composition of loans is as follows:
| Loan Type | Amount (in thousands) | % of Gross Loans |
|---|---|---|
| Commercial Loans | $3,106,994 | 16.0% |
| Construction Loans | $307,057 | 1.6% |
| Commercial Real Estate Loans | $9,975,272 | 51.5% |
| Residential Mortgage Loans | $5,977,384 | 30.9% |
| Installment and Other Loans | $6,886 | — |
Deposits Overview
As of September 30, 2024, total deposits stood at $19.94 billion, reflecting an increase of 3.2% from $19.33 billion at the end of 2023. The breakdown of deposits is as follows:
| Deposit Type | Amount (in thousands) | Percentage |
|---|---|---|
| Non-Interest-Bearing Demand Deposits | $3,253,823 | 16.3% |
| NOW Deposits | $2,093,861 | 10.5% |
| Money Market Deposits | $3,134,460 | 15.7% |
| Savings Deposits | $1,215,974 | 6.1% |
| Time Deposits | $10,245,823 | 51.4% |
Capital Adequacy
As of September 30, 2024, Cathay General Bancorp’s capital ratios were as follows:
| Capital Measure | Amount (in thousands) | Ratio |
|---|---|---|
| Common Equity Tier 1 to Risk-Weighted Assets | $2,491,861 | 13.32% |
| Tier 1 Capital to Risk-Weighted Assets | $2,491,861 | 13.32% |
| Total Capital to Risk-Weighted Assets | $2,780,636 | 14.87% |
| Leverage Ratio | $2,491,861 | 10.82% |
Non-Interest Income and Expenses
Non-interest income for the third quarter of 2024 was $20.4 million, significantly up from $7.8 million in the same quarter of 2023. Non-interest expenses increased to $96.9 million from $94.0 million in 2023.
Key components of non-interest income include:
- Depository Service Fees: $1.57 million
- Wealth Management Fees: $6.55 million
- Letters of Credit Commissions: $2.08 million
How Cathay General Bancorp (CATY) Makes Money
Net Interest Income
Cathay General Bancorp primarily earns money through net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. For the nine months ended September 30, 2024, net interest income before provision for credit losses was $503.0 million, a decrease from $559.6 million during the same period in 2023. The net interest margin was reported at 3.04% for the third quarter of 2024 compared to 3.38% for the third quarter of 2023.
Interest-Earning Assets
As of September 30, 2024, total interest-earning assets amounted to $22.17 billion, with the following breakdown:
| Type | Average Balance (in thousands) | Interest Income (in thousands) | Yield |
|---|---|---|---|
| Loans | $19,464,496 | $916,175 | 6.29% |
| Investment Securities | $1,647,968 | $45,720 | 3.71% |
| Federal Home Loan Bank Stock | $19,162 | $1,305 | 9.10% |
| Total Interest-Earning Assets | $22,174,039 | $1,004,993 | 6.05% |
Interest Expense
Total interest expense for the nine months ended September 30, 2024, was $501.9 million, up from $349.4 million in the prior year. The breakdown of interest expenses is as follows:
| Type | Interest Expense (in thousands) |
|---|---|
| Time Deposits | $347,408 |
| Other Deposits | $133,218 |
| Advances from Federal Home Loan Bank | $13,517 |
| Total Interest Expense | $501,950 |
Non-Interest Income
Cathay General Bancorp also generates non-interest income from various sources. For the third quarter of 2024, non-interest income was $20.4 million, an increase of 161.5% compared to $7.8 million in the same quarter of 2023. The components of non-interest income included:
- Net gains from equity securities: $4.3 million
- Letters of credit commissions: $2.1 million
- Depository service fees: $1.6 million
- Wealth management fees: $6.5 million
- Other operating income: $5.9 million
Loan Portfolio
The total gross loans, excluding loans held for sale, increased to $19.37 billion as of September 30, 2024, reflecting a growth of $349.8 million compared to the same period in the previous year.
Charge-Offs and Recoveries
For the nine months ended September 30, 2024, total charge-offs were $14.9 million, while recoveries were $1.6 million, resulting in net charge-offs of $13.3 million.
Expenses and Efficiency
Total non-interest expense for the third quarter of 2024 was $96.9 million, an increase of 3.1% compared to $94.0 million in the third quarter of 2023. The efficiency ratio was reported at 51.11% for the third quarter of 2024.
Capital Ratios
As of September 30, 2024, the capital ratios for Cathay General Bancorp were as follows:
| Capital Measure | Amount (in thousands) | Ratio |
|---|---|---|
| Common Equity Tier 1 to Risk-Weighted Assets | $2,491,861 | 13.32% |
| Tier 1 Capital to Risk-Weighted Assets | $2,491,861 | 13.32% |
| Total Capital to Risk-Weighted Assets | $2,780,636 | 14.87% |
Net Income and Earnings Per Share
For the nine months ended September 30, 2024, net income was $205.8 million, a decrease of 24.2% compared to $271.6 million for the same period in 2023. Basic earnings per common share were $2.84, down from $3.74.
Cathay General Bancorp (CATY) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Cathay General Bancorp (CATY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cathay General Bancorp (CATY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cathay General Bancorp (CATY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.