Cathay General Bancorp Announces Third Quarter 2017 Results

LOS ANGELES, Oct. 25, 2017

FINANCIAL PERFORMANCE

	Three months ended
	September 30, 2017		June 30, 2017		September 30, 2016 ARIVA.DE Börsen-Geflüster Kurse Cathay General Bancorp 34,96 $ -1,60%
Net income	$49.7 million		$51.4 million		$46.1 million
Basic earnings per common share	$0.62		$0.64		$0.58
Diluted earnings per common share	$0.61		$0.64		$0.58
Return on average assets	1.29%		1.48%		1.38%
Return on average total stockholders' equity	9.77%		10.96%		10.30%
Efficiency ratio	41.91%		45.88%		45.05%

THIRD QUARTER HIGHLIGHTS

• Completed the acquisition of SinoPac Bancorp, the holding company for Far East National Bank, ("FENB") on July 14, 2017.
• Total loans during the third quarter increased by $1.0 billion to $12.6 billion.
• Net interest margin increased to 3.75% in the third quarter compared to 3.63% in the second quarter of 2017.

"We enjoyed strong growth during the third quarter of 2017.  Excluding the loans and deposits from Far East National Bank, our loan growth was $331.5 million, or 11.8% annualized, and our deposit growth was $380.8 million, or 13.0% annualized, for the third quarter of 2017," commented Pin Tai, Chief Executive Officer and President of the Company.

"We recently received final regulatory approval to merge Far East National Bank into Cathay Bank, which will permit additional integration of our operations," added Dunson Cheng, Executive Chairman of the Board of the Company. 

THIRD QUARTER INCOME STATEMENT REVIEW

Net income for the quarter ended September 30, 2017, was $49.7 million, an increase of $3.6 million, or 7.8%, compared to net income of $46.1 million for the same quarter a year ago.  Diluted earnings per share for the quarter ended September 30, 2017, was $0.61 compared to $0.58 for the same quarter a year ago.

Return on average stockholders' equity was 9.77% and return on average assets was 1.29% for the quarter ended September 30, 2017, compared to a return on average stockholders' equity of 10.30% and a return on average assets of 1.38% for the same quarter a year ago.   

Net interest income before provision for credit losses

Net interest income before provision for credit losses increased $29.4 million, or 28.3%, to $133.2 million during the third quarter of 2017 compared to $103.8 million during the same quarter a year ago.  The increase was due primarily to an increase in interest income from loans from organic growth and from the acquisition of FENB and a decrease in interest expense from securities sold under agreements to repurchase.

The net interest margin was 3.75% for the third quarter of 2017 compared to 3.36% for the third quarter of 2016 and 3.63% for the second quarter of 2017.  The increase from the second quarter of 2017 was primarily the result of interest recoveries and prepayment penalties of $5.6 million, including $4.5 million from the payoff of a loan that had been on nonaccrual status in prior years. 

For the third quarter of 2017, the yield on average interest-earning assets was 4.34%, the cost of funds on average interest-bearing liabilities was 0.81%, and the cost of interest-bearing deposits was 0.68%.  In comparison, for the third quarter of 2016, the yield on average interest-earning assets was 4.02%, the cost of funds on average interest-bearing liabilities was 0.89%, and the cost of average interest-bearing deposits was 0.70%. The increase in the yield on average interest earning assets was a result of higher interest rates and increases in interest income collected from nonaccrual loans and loan prepayment penalties.  The net interest spread, defined as the difference between the yield on average interest-earning assets and the cost of funds on average interest-bearing liabilities, was 3.53% for the quarter ended September 30, 2017, compared to 3.13% for the same quarter a year ago.

Provision/(reversal) for credit losses

There was no provision for credit losses recorded for the third quarter of 2017 or 2016.  The provision/(reversal) for credit losses was based on a review of the appropriateness of the allowance for loan losses at September 30, 2017.  The following table summarizes the charge-offs and recoveries for the periods indicated:

	Three months ended						Nine months ended September 30,
	September 30, 2017		June 30, 2017		September 30, 2016		2017		2016
	(In thousands)
Charge-offs:
Commercial loans	$                         80		$             526		$                    3,278		$  1,810		$ 12,035
Real estate loans (1)	305		-		4,626		860		5,830
Total charge-offs	385		526		7,904		2,670		17,865
Recoveries:
Commercial loans	575		335		2,006		1,401		3,720
Construction loans	47		47		548		143		7,871
Real estate loans(1)	5,489		410		343		6,195		903
Total recoveries	6,111		792		2,897		7,739		12,494
Net (recoveries)/charge-offs	$                  (5,726)		$           (266) Werbung Mehr Nachrichten zur Cathay General Bancorp Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 25.04.24 - PR Newswire Moonpig Group Plc - Holding(s) in Company 25.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Network International Holdings Plc 25.04.24 - PR Newswire Everest Global Plc - Result of AGM SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59