Cathay General Bancorp Files 2023 Annual Report on Form 10-K

TL;DR

<b>Cathay General Bancorp reported increased net income and total assets in its 2023 10-K filing, despite a slight decrease in EPS.</b>

AI Summary

CATHAY GENERAL BANCORP (CATY) filed a Annual Report (10-K) with the SEC on February 29, 2024. Total assets reached $18.72 billion in 2023, up from $18.35 billion in 2022. Net income for 2023 was $91.39 million, a significant increase from $72.67 million in 2022. Earnings per share (EPS) were $1.27 in 2023, compared to $1.36 in 2022. Total debt was $72.74 million in 2023, a decrease from $91.09 million in 2022. The company reported total revenue of $1.73 billion for the fiscal year ending December 31, 2023.

Why It Matters

For investors and stakeholders tracking CATHAY GENERAL BANCORP, this filing contains several important signals. The increase in net income suggests improved profitability and operational efficiency for Cathay General Bancorp in the past fiscal year. The decrease in total debt indicates a stronger balance sheet and potentially reduced financial risk for the company.

Risk Assessment

Risk Level: low — CATHAY GENERAL BANCORP shows low risk based on this filing. The filing shows a slight decrease in EPS from $1.36 in 2022 to $1.27 in 2023, which could indicate pressure on per-share profitability despite overall net income growth.

Analyst Insight

Investors should monitor the trend in EPS and the factors contributing to the increase in net income to assess the sustainability of the company's performance.

Financial Highlights

revenue

1726080000

total Assets

18723553

total Debt

72742151

net Income

91392480

eps

1.27

revenue Growth

0.01

Key Numbers

• 18.72 — Total Assets (2023)
• 18.35 — Total Assets (2022)
• 91.39 — Net Income (2023)
• 72.67 — Net Income (2022)
• 1.27 — EPS (2023)
• 1.36 — EPS (2022)
• 72.74 — Total Debt (2023)
• 91.09 — Total Debt (2022)

Key Players & Entities

• CATHAY GENERAL BANCORP (company) — COMPANY CONFORMED NAME
• CATY (company) — tk
• LOS ANGELES (company) — CITY
• DE (company) — STATE OF INCORPORATION
• ASC Topic 606 (regulator) — Revenue from contracts with customers
• ASU 2016-13 (regulator) — Financial Instruments - Credit Losses
• ASC Topic 326 (regulator) — Financial Instruments - Credit Losses
• ASC 606 (regulator) — Revenue from contracts with customers

FAQ

Risk Factors

• Credit Losses [medium — financial]: The company's financial results are impacted by credit losses, particularly due to the adoption of ASU 2016-13 (Topic 326).

Industry Context

Cathay General Bancorp operates within the commercial banking sector, providing a range of financial services to businesses and individuals.

Regulatory Implications

The company is subject to various banking regulations and oversight from regulatory bodies, impacting its operations and financial reporting.

What Investors Should Do

1. Analyze the trend in EPS and its relation to net income growth.
2. Review the company's debt reduction strategy and its impact on financial risk.
3. Investigate the specific revenue streams contributing to the reported total revenue of $1.73 billion.

Key Dates

• 2024-02-29: Filing Date — Filing of the 2023 10-K report.
• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.

Glossary

ASC Topic 606

Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. (Provides guidance on revenue recognition, impacting how the company reports revenue from customer contracts.)

ASU 2016-13

Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326). (Introduced the Current Expected Credit Losses (CECL) methodology, significantly impacting the accounting for credit losses on financial instruments.)

Year-Over-Year Comparison

The 2023 10-K shows an increase in total assets and net income compared to the previous year, but a slight decrease in earnings per share.

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value CATY NASDAQ Global Select
• $23.08 billion — ("FDIC"). At December 31, 2023, we had $23.08 billion in total consolidated assets, $19.38 bi
• $19.38 billion — 8 billion in total consolidated assets, $19.38 billion in net loans, $19.33 billion in deposit
• $19.33 billion — ed assets, $19.38 billion in net loans, $19.33 billion in deposits, and $2.74 billion in share
• $2.74 billion — loans, $19.33 billion in deposits, and $2.74 billion in shareholders' equity. Subsidiaries
• $25.0 million — r syndicates loans, typically more than $25.0 million in principal amount, with other financi

Filing Documents

• caty20231231_10k.htm (10-K) — 5597KB
• ex_602520.htm (EX-4.2) — 25KB
• ex_602521.htm (EX-21.1) — 6KB
• ex_602522.htm (EX-23.1) — 2KB
• ex_629605.htm (EX-31.1) — 11KB
• ex_629608.htm (EX-31.2) — 11KB
• ex_629607.htm (EX-32.1) — 6KB
• ex_629606.htm (EX-32.2) — 6KB
• ex_629293.htm (EX-97.1) — 22KB
• graph01.jpg (GRAPHIC) — 51KB
• 0001437749-24-005948.txt (&nbsp;) — 23646KB
• caty-20231231.xsd (EX-101.SCH) — 147KB
• caty-20231231_cal.xml (EX-101.CAL) — 113KB
• caty-20231231_def.xml (EX-101.DEF) — 928KB
• caty-20231231_lab.xml (EX-101.LAB) — 803KB
• caty-20231231_pre.xml (EX-101.PRE) — 999KB
• caty20231231_10k_htm.xml (XML) — 5653KB

Business

Business 2 Executive Officers of the Registrant 10 Item 1A.

Risk Factors

Risk Factors 28 Item 1B. Unresolved Staff Comments 51 Item 1C. Cybersecurity 51 Item 2.

Properties

Properties 51 Item 3.

Legal Proceedings

Legal Proceedings 51 Item 4. Mine Safety Disclosures 51 PART II 52 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 52 Item 6. Reserved 54 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 54 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 81 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 82 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 82 Item 9A.

Controls and Procedures

Controls and Procedures 83 Item 9B. Other Information 86 Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 86 PART III 86 Item 10. Directors, Executive Officers and Corporate Governance 86 Item 11.

Executive Compensation

Executive Compensation 86 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 87 Item 13. Certain Relationships and Related Transactions, and Director Independence 87 Item 14. Principal Accounting Fees and Services 87 PART IV 87 Item 15. Exhibits, Financial Statement Schedules 87 Item 16. Form 10-K Summary 91

SIGNATURES

SIGNATURES 92 Table of Contents

Forward-Looking Statements

Forward-Looking Statements In this Annual Report on Form 10-K, the term " Bancorp " refers to Cathay General Bancorp and the term " Bank " refers to Cathay Bank. The terms " Company, " " we, " " us, " and " our " refer to Bancorp and its subsidiaries, including the Bank, collectively. The statements in this report include forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995 regarding management ' s beliefs, projections, and assumptions concerning future results and events. We intend such forward-looking statements to be covered by the safe harbor provision for forward-looking statements in these provisions. All statements other than statements of historical fact are " forward-looking statements " for purposes of federal and state securities laws, including statements about anticipated future operating and financial performance, financial position and liquidity, growth opportunities and growth rates, growth plans, acquisition and divestiture opportunities, business prospects, strategic alternatives, business strategies, financial expectations, regulatory and competitive outlook, investment and expenditure plans, financing needs and availability, and other similar forecasts and statements of expectation and statements of assumptions underlying any of the foregoing. Words such as " aims, " " anticipates, " " believes, " " can, " " could, " " estimates, " " expects, " " hopes, " " intends, " " may, " " plans, " " projects, " " seeks, " " shall, " " should, " " will, " " predicts, " " potential, " " continue, " " possible, " " optimistic, " and variations of these words and similar expressions are intended to identify these forward-looking statements. Forward-looking statements by us are based on estimates, beliefs, projections, and assumptions of management and are not guarantees of future performance. Management's expectations and assumptions, and the continued validity of the forward-loo

Business

Item 1. Business Business of Bancorp Overview Cathay General Bancorp (the "Bancorp" on a parent-only basis, and the "Company," "we," "us" or "our" on a consolidated basis) is a corporation that was organized in 1990 under the laws of the State of Delaware. The Bancorp is the holding company of Cathay Bank, a California state-chartered commercial bank ("Cathay Bank" or the "Bank"), and eleven limited partnerships investing in affordable housing investments in which the Bank is the sole limited partner. The Bancorp also owns 100% of the common stock of five statutory business trusts created for the purpose of issuing capital securities. Our principal place of business is located at 777 North Broadway, Los Angeles, California 90012, with our main telephone number at (213) 625-4700. Certain of our administrative offices are located at 9650 Flair Drive, El Monte, California 91731. Our common stock is traded on the NASDAQ Global Select Market, and our trading symbol is "CATY". The Bancorp is regulated as a bank holding company by the Board of Governors of the Federal Reserve System ("Federal Reserve"). Cathay Bank is regulated as a California commercial bank by the California Department of Financial Protection and Innovation ("DFPI") and the Federal Deposit Insurance Corporation ("FDIC"). At December 31, 2023, we had $23.08 billion in total consolidated assets, $19.38 billion in net loans, $19.33 billion in deposits, and $2.74 billion in shareholders' equity. Subsidiaries of Bancorp In addition to Cathay Bank, the Bancorp has the following subsidiaries: Cathay Capital Trust I, Cathay Statutory Trust I, Cathay Capital Trust II, Cathay Capital Trust III and Cathay Capital Trust IV. The Bancorp established Cathay Capital Trust I in June 2003, Cathay Statutory Trust I in September 2003, Cathay Capital Trust II in December 2003, Cathay Capital Trust III in March 2007, and Cathay Capital Trust IV in May 2007 (collectively, the "Trusts") as wholly-owned subsidiaries

View Full Filing

View this 10-K filing on SEC EDGAR