Cathay General Bancorp Q3 2024 10-Q Filed

TL;DR

CATY Q3 2024: Assets $16.03B, Liabilities $1.73B, Net Income $20.25M, EPS $0.34. REO $18.3M.

AI Summary

Cathay General Bancorp filed its 10-Q for the period ending September 30, 2024. The company reported total assets of $16.03 billion and total liabilities of $1.73 billion. Net income for the quarter was $20.25 million, with earnings per share of $0.34. The filing also details other real estate owned, which was $18.3 million net of disposal costs.

Why It Matters

This filing provides a snapshot of Cathay General Bancorp's financial health and performance for the third quarter of 2024, crucial for investors and analysts assessing the bank's stability and profitability.

Risk Assessment

Risk Level: medium — The filing contains detailed financial information that requires careful analysis to fully understand potential risks and opportunities.

Key Numbers

• $16.03B — Total Assets (Indicates the bank's overall size and resources as of Q3 2024.)
• $1.73B — Total Liabilities (Represents the bank's financial obligations as of Q3 2024.)
• $20.25M — Net Income (Shows the bank's profitability for the quarter ending September 30, 2024.)
• $0.34 — Earnings Per Share (Key metric for shareholder profitability for the quarter.)
• $18.3M — Other Real Estate Owned (Represents assets acquired through foreclosure, net of disposal costs.)

Key Players & Entities

• Cathay General Bancorp (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• $16,026,960,000 (dollar_amount) — Total assets
• $1,726,080,000 (dollar_amount) — Total liabilities
• $20,245,483 (dollar_amount) — Net income
• $0.34 (dollar_amount) — Earnings per share
• $18.3 million (dollar_amount) — Other real estate owned balance

FAQ

Key Financial Figures

• $0.01 — latest practicable date. Common stock, $0.01 par value, 71,198,632 shares outstandin

Filing Documents

• caty20240930_10q.htm (10-Q) — 4693KB
• ex_716857.htm (EX-31.1) — 12KB
• ex_716858.htm (EX-31.2) — 13KB
• ex_716859.htm (EX-32.1) — 5KB
• ex_716860.htm (EX-32.2) — 5KB
• 0001437749-24-034150.txt ( ) — 19389KB
• caty-20240930.xsd (EX-101.SCH) — 81KB
• caty-20240930_cal.xml (EX-101.CAL) — 69KB
• caty-20240930_def.xml (EX-101.DEF) — 584KB
• caty-20240930_lab.xml (EX-101.LAB) — 495KB
• caty-20240930_pre.xml (EX-101.PRE) — 626KB
• caty20240930_10q_htm.xml (XML) — 5437KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 2 Item 1.

FINANCIAL STATEMENTS (Unaudited)

FINANCIAL STATEMENTS (Unaudited) 2

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 7 Item 2. MANAGEMENT ' S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 29 Item 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 45 Item 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 46

– OTHER INFORMATION

PART II – OTHER INFORMATION 46 Item 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 46 Item 1A.

RISK FACTORS

RISK FACTORS 46 Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 46 Item 3. DEFAULTS UPON SENIOR SECURITIES 47 Item 4. MINE SAFETY DISCLOSURES 47 Item 5. OTHER INFORMATION 47 Item 6. EXHIBITS 47

SIGNATURES

SIGNATURES 48 Table of Contents

Forward-Looking Statements

Forward-Looking Statements In this Quarterly Report on Form 10-Q, 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 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, loan and deposit growth, investment and expenditure plans, financing needs and availability, level of nonperforming assets, and other similar forecasts and statements of expectation and statements of assumptions underlying any of the foregoing. Words such as "aims," "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "hopes," "intends," "may," "optimistic," "plans," "potential," "possible," "predicts," "projects," "seeks," "shall," "should," "will," 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. These forward-looking statements are subject to certain risks, uncertainties and other factors that could cause actua

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS (Unaudited)

Item 1. FINANCIAL STATEMENTS (Unaudited) CATHAY GENERAL BANCORP AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) September 30, 2024 December 31, 2023 (In thousands, except share data) Assets Cash and due from banks $ 182,542 $ 173,988 Short-term investments and interest-bearing deposits 1,156,223 654,813 Securities available-for-sale (amortized cost of $ 1,602,696 at September 30, 2024, and $ 1,726,080 at December 31, 2023) 1,508,356 1,604,570 Loans held for sale 5,190 — Loans held for investment 19,373,593 19,548,140 Less: Allowance for loan losses ( 163,733 ) ( 154,562 ) Unamortized deferred loan fees, net ( 10,505 ) ( 10,720 ) Loans held for investment, net 19,199,355 19,382,858 Equity securities 35,741 40,406 Federal Home Loan Bank stock 17,250 17,746 Other real estate owned, net 18,277 19,441 Affordable housing investments and alternative energy partnerships, net 280,091 315,683 Premises and equipment, net 89,158 91,097 Customers' liability on acceptances 12,043 3,264 Accrued interest receivable 95,351 97,673 Goodwill 375,696 375,696 Other intangible assets, net 3,590 4,461 Right-of-use assets - operating leases 30,543 32,076 Other assets 265,037 267,762 Total assets $ 23,274,443 $ 23,081,534 Liabilities and Stockholders' Equity Deposits: Non-interest-bearing $ 3,253,823 $ 3,529,018 Interest-bearing: NOW deposits 2,093,861 2,370,685 Money market deposits 3,134,460 3,049,754 Savings deposits 1,215,974 1,039,203 Time deposits 10,245,823 9,336,787 Total deposits 19,943,941 19,325,447 Advances from the Federal Home Loan Bank 60,000 540,000 Other borrowings of affordable housing investments 17,783 15,787 Long-term debt 119,136 119,136 Acceptances outstanding 12,043 3,264 Lease liabilities - operating leases 32,906 34,797 Other liabilities 258,321 306,528 Total liabilities 20,444,130 20,344,959 Commitments and contingencies — — Stockholder

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Business Cathay General Bancorp ("Bancorp") is the holding company for Cathay Bank (the "Bank" and, together, with Bancorp, the "Company"), and eleven limited partnerships investing in affordable housing investments in which the Bank is the sole limited partner. Bancorp also owns 100 % of the common stock of five statutory business trusts created for the purpose of issuing capital securities. The Bank was founded in 1962 and offers a wide range of financial services. As of September 30, 2024 , the Bank operates 24 branches in Southern California, 19 branches in Northern California, 9 branches in New York State, four in Washington State, two in Illinois, two in Texas, one in Maryland, Massachusetts, Nevada, and New Jersey, one in Hong Kong, and a representative office in Taipei, Beijing, and Shanghai. Deposit accounts at the Hong Kong branch are not insured by the Federal Deposit Insurance Corporation (the "FDIC"). 2. Basis of Presentation and Summary of Significant Accounting Policies The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10 -Q and Article 10 of Regulation S- X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. For further information, refer to the audited Consolidated Financial Statements and Notes included in the Company's Annual Report on Form 10 -K for the year ended December 31, 2023 , filed with the SEC on February 2

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