Cathay General Bancorp : 1Q 2025 Earnings Call Presentation

Published: 2025-04-21 18:21:58 ET CATY

Financial Earnings Results

First Quarter 2025

April 21, 2025

Financial Highlights 1Q 2025

Profitability: Return on Assets & Equity

Return on Tangible Equity *

Quarterly Results Ending March 31, 2025

10.40%

9.63%

9.50%

ROAA ROAE

11.18%

9.84%

11.95%

13.03%

11.21%

11.11%

11.05%

$69.5mn

Net Income

$0.98

Diluted EPS

1.23%

1.15%

1.37%

1.22%

1Q24

2Q24

3Q24

4Q24

1Q25

1Q24

2Q24

3Q24

4Q24

1Q25

* Refer to GAAP to non-GAAP reconciliation in Appendix.

$187.8mn

Total Revenue

Pre-Tax Pre-Provision Income Ratio ($mn)

$117

PTPP Income

PTPP Ratio

$112

$111

$96

$103

1.76%

2.00%

1.92%

1.64%

1Q24

2Q24

3Q24

4Q24

1Q25

Pre-Tax Pre-Provision, Pre-Tax Credit Amortization, and Pre-Acquisition Expense ("PTPP") Income Ratio calculation based on

annualized PTPP Income divided by total average assets.

$19.4bn

Total Loans

$19.8bn

Total Deposits

45.60%

Efficiency Ratio

Summary Balance Sheets

$mn, except per share data

3.31.25

12.31.24

QoQ Change

Cash equivalents & ST investments

1,385

1,040

345

AFS debt securities

1,434

1,547

(113)

Loans held-for-sale

Gross loans, net of fees

19,341

19,365

(24)

Allowance for credit losses

(175)

(162)

(14)

Net Loans

19,166

19,204

(38)

Other assets

1,207

1,264

(57)

Total Assets

23,204

23,055

149

Customer deposits

19,818

19,686

131

FHLB borrowings

Debt

137

(0)

Other Liabilities

289

326

(37)

Total Liabilities

20,339

20,209

130

Total Stockholders' Equity

2,865

2,846

Note: Information as of 3.31.25 is unaudited. Totals may not foot due to rounding.

Net Loans-to-Deposit Ratio (end of period (EOP))

97%

96%

98%

97%

3.31.24

6.30.24

9.30.24

12.31.24

3.31.25

Loan Composition

Total Loan Portfolio ($bn)

Construction

Residential

Mortgage*

30% $19.4bn Total CRE

53%

Total Loans

C & I 15%

Average Loan Growth - QoQ Annualized ($bn)

$19.5

$19.4

-0.6%

$19.4

-1.4%

$19.3

-0.3%

$19.3

+-1.2%

$0.4

$0.3

$3.2

$3.0

$6.1

$6.0

$5.9

$9.8

$10.0

$10.1

1Q24

2Q24

3Q24

4Q24

1Q25

Total CRE

Residential Mortgage*

C & I

Construction

* Residential Mortgage includes equity lines, installment and other loans.

Loan Yields

Average Loan Yield by Type (in bps)

624 628 635 619 617

8% fixed rate

1Q24

2Q24

3Q24

4Q24

1Q25

92% float rate

849

868

846

30% fixed rate

40% fixed rate

22% float rate

29% float rate

772

728

547

564

572

578

593

588

594

592

593

531

Total Loans

C & I

Residential Mortgage

CRE

Fix Rate & Hybrid in Fixed Rate Period (% of total loans)

64% 64%

63% 63%

62%*

1Q24

2Q24

3Q24

4Q24

1Q25

* Excludes fixed to float interest rate swaps of 4.1%.

Loan Portfolio By Index Rate

as of 3.31.25

Other

Prime

Fixed Rate

14%

30%

Total Fixed Rate and

SOFR

Hybrid in Fixed Period:

62%

17%

Hybrid in Fixed

Rate Period

32%

Commercial Real Estate Portfolio

CRE Portfolio Breakdown

CRE Geographic Distribution

Construction

Residential

Mortgage*

$19.4bn

Total CRE

30%

Total Loans

53%

C & I

15%

Residential 18%

Total CRE

$10.2bn

53% of total loans

Retail 13%

Office 8%

Warehouse 7%

industrial 3%

special use

1.3%

hotel /motel 2%

restaurant 0.8%

land 0.4%

theater 0.1%

34%

$10.2bn

Total CRE

TX 5%

47%

Other

IL 3%

WA 2%

Total CRE Concentration

287%

288%

286%

Of $10.2bn in total CRE loans, it included a notional amount of $799mn of interest rate swaps or 4.1% of total loans.

1Q2024

2Q2024

3Q2024

4Q2024

1Q2025

* Residential Mortgage includes equity lines, installment and other loans.

400% internal threshold

300% regulatory threshold

CRE/Total Capital

Commercial Real Estate Portfolio (cont'd)

Total CRE LTV Distribution

40% to 50%

23%

14%

$10.2bn

50% to 60%

30% to 40%

32%

Total CRE

under 30%

11%

60% to 70%

Over 70%

19%

Total CRE LTV and Size by Property Type

Total CRE Loan

Avg.

Total CRE

Portfolio

Loan Size

Weighted

($mn)

Avg. LTV

Residental

$3,480

$1.3

53%

Retail

$2,464

$2.1

48%

Office

$1,463

$2.3

46%

Warehouse

$1,279

$2.8

46%

Industrial

$638

$3.1

48%

Hotel / Motel

$307

$5.8

46%

Special Use

$261

$2.7

44%

Restaurant

$164

$0.9

44%

Land

$85

$3.4

47%

Theater

$20

$6.6

54%

Total CRE

$10,161

$1.9

49%

Selected CRE and Construction Loan Portfolios

Residential CRE Portfolio

% based on $3.5bn loans outstanding

Retail CRE Portfolio

% based on $2.5bn loans outstanding

Construction Portfolio

% based on $0.3bn loans outstanding

Commercial Units

5+ Multi-Family

2-4 Unit Residence

Single Family

Residence

40%

39%

16%

Retail Store/Building

Retail/Mix Use

Neighborhood

Center

Strip Mall

Shopping Center

Other

31%

27%

22%

10%

Multiple Family

84%

Residential

Office & Commercial

Condominium

Single Family

Residential

Warehouse

Retail

CA 35%

53%

LTV Weighted

TX 5%

Average

50%

WA 4%

IL 2%

Other 4%

NY 27%

48%

TX 8%

LTV Weighted

Average

NV 4%

49%

IL 4%

MA 1%

Other 7%

53% 21%

LTV Weighted

70%

Average

Other

CRE Office Portfolio

Office CRE Portfolio

% based on $1.5bn loans outstanding

Office CRE Distribution

Office CRE Loan

Total CRE

Portfolio

Weighted Avg. LTV

Property Type

($mn)

Office Building

Office

Condominium

Office / Retail

Stores

Medical Office

Office / Mixed Use

35%

27%

23%

NY 32%

Office Building

$514

46%

Office Condominium

$400

46%

Office / Retail Stores

$329

33%

Medical Office

$122

44%

Office / Mixed Use

$98

40%

Total Office CRE

$1,463

Avg. Outstanding Size

$2.3

Avg. Property Size (sq ft)

15,854

Office CRE Collateral Distribution ($mn)

Urban

$973

CA 46%

51% LTV Weighted

Average

HK 7%

WA 3%

IL 2%

Other 5%

Suburban

Central Business

District

$440

$50

Central Business District (CBD) - Central Business/Financial Centers (mainly city downtowns) Urban - City and metropolitan areas

Suburban - Outside of the city/metropolitan area

Disclaimer

Cathay General Bancorp published this content on April 21, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 21, 2025 at 22:19 UTC.