Financial Earnings Results
Fourth Quarter and Full Year 2024
January 22, 2025
Financial Highlights 4Q 2024
Profitability: Return on Assets & Equity
ROAA ROAE | ||
12.21% | 11.18% | |
10.40% | ||
9.63% | 9.50% | |
1.40% | 1.23% | 1.15% | 1.15% | 1.37% |
4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 |
Return on Tangible Equity *
14.04%
13.03%
11.95%
11.11% 11.05%
4Q23 1Q24 2Q24 3Q24 4Q24
* Refer to GAAP to non-GAAP reconciliation in Appendix.
Quarterly Results Ending December 31, 2024
$80.2mn
Net Income
$1.12
Diluted EPS
$186.5mn
Total Revenue
Pre-Tax Pre-Provision Income Ratio ($m)
$121 | PTPP Income | PTPP Ratio | |||||||||||||||||
$117 | |||||||||||||||||||
$112 | |||||||||||||||||||
$96 | $103 | ||||||||||||||||||
2.07% | 1.64% | 1.76% | 2.00% | 1.92% | |||||||||||||||
4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 |
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
$19.7bn
Total Deposits
45.70%
Efficiency Ratio
3
Summary Highlights: 4Q and Full Year 2024 Results
$ in millions, | 4Q24 | Change | Change | Full Year | Change | ||
except per share data | 4Q24 v. 3Q24 | 4Q24 v. 4Q23 | 2024 | YoY | |||
Earnings | |||||||
Net Income | $ | 80.2 | 19% | (3)% | $ | 286.0 | (19)% |
Basic EPS | $ | 1.13 | 20% | (1)% | $ | 3.97 | (19)% |
Diluted EPS | $ | 1.12 | 19% | (1)% | $ | 3.95 | (19)% |
Total Revenue | $ | 186.5 | (2)% | (9)% | $ | 729.7 | (10)% |
NII | $ | 171.0 | 1% | (6)% | $ | 674.1 | (9)% |
NIM | 3.07% | 3 bps | -20 bps | 3.04% | -41 bps | ||
ROAA | 1.37% | 22 bps | -3 bps | 1.22% | -34 bps | ||
ROAE | 11.18% | 168 bps | -103 bps | 10.18% | -338 bps | ||
Efficiency Ratio | 45.70% | -541 bps | -814 bps | 51.35% | 438 bps | ||
Balance Sheets | |||||||
Total Loans* | $ | 19,365 | (0)% | (1)% | $ | 19,365 | (1)% |
Total Deposits | $ | 19,686 | (1)% | 2% | $ | 19,686 | 2% |
Note: Information as of 12.31.24 and 9.30.24 are unaudited. Totals may not foot due to rounding. * Gross Loans, net of fees
4
Summary Balance Sheets
$mn, except per share data | 12.31.24 | 9.30.24 | QoQ Change | |||
Cash equivalents & ST investments | $ | 1,040 | $ | 1,339 | $ | (299) |
AFS debt securities | 1,547 | 1,508 | 39 | |||
Gross loans, net of fees | $ | 19,365 | $ | 19,363 | $ | 2 |
Allowance for credit losses | (162) | (164) | 2 | |||
Net Loans | $ | 19,204 | $ | 19,199 | $ | 4 |
Other assets | 1,264 | 1,228 | 36 | |||
Total Assets | $ | 23,055 | $ | 23,274 | $ | (220) |
Customer deposits | $ | 19,686 | $ | 19,944 | (258) | |
FHLB borrowings | 60 | 60 | - | |||
Debt | 137 | 137 | (0) | |||
Other Liabilities | 326 | 303 | 23 | |||
Total Liabilities | $ | 20,209 | $ | 20,444 | $ | (235) |
Total Stockholders' Equity | $ | 2,846 | $ | 2,830 | $ | 16 |
Note: Information as of 12.31.24 and 9.30.24 are unaudited. Totals may not foot due to rounding.
Net Loans-to-Deposit Ratio (end of period (EOP))
100% | 97% | 97% | 96% | 98% |
12.31.23 | 3.31.24 | 6.30.24 | 9.30.24 | 12.31.24 |
5
Loan Composition
Total Loan Portfolio ($bn)
Average Loan Growth - QoQ Annualized ($bn)
Construction
2%
Residential
Mortgage*
$19.3
$0.5 $3.2
+3.5%
$19.5
$0.4 $3.2
-1.2%
$19.4
$0.4 $3.2
-0.6%
$19.4
$0.4 $3.2
-1.4%
$19.3
$0.3 $3.0
30% $19.4bn Total CRE
$6.0 | $6.1 | $6.0 | $6.0 | $6.0 |
Total Loans
C & I 16%
52%
$9.6 | $9.8 | $9.8 | $9.8 | $10.0 |
- Total CRE $10.0bn
- Residential Mortgage* $6.0bn
- C & I Loans $3.1bn
- Construction Loans $0.3bn
4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 |
Total CRE | Residential Mortgage* | C & I | Construction |
* Residential Mortgage includes equity lines, installment and other loans.
6
Loan Yields
Average Loan Yield by Type (in bps)
621 624 628 635 619
8% fixed rate | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 | |||||||||||||
91% float rate | ||||||||||||||||||
40% fixed rate | ||||||||||||||||||
847 849 868 846 | 30% fixed rate | |||||||||||||||||
772 | 29% float rate | 21% float rate | ||||||||||||||||
598 | 594 | |||||||||||||||||
593 | 588 | 592 | ||||||||||||||||
514 | 531 | 547 | 564 | 572 | ||||||||||||||
Total Loans
C & I | Residential Mortgage | CRE |
Fix Rate & Hybrid in Fixed Rate Period (% of total loans)
64% 64%
63% | 63% | 63%* |
4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 |
* Excludes fixed to float interest rate swaps of 4.1%.
Loan Portfolio By Index Rate
as of 12.31.24
Other
8%
Prime
13%Fixed Rate
31%
Total Fixed Rate and | |
SOFR | Hybrid in Fixed Period: |
16% | 63% |
Hybrid in Fixed
Rate Period
32%
7
Commercial Real Estate Portfolio | |||||||
CRE Portfolio Breakdown | CRE Geographic Distribution | ||||||
Total CRE | NY | ||||||
Residential 18% | 34% | ||||||
Construction | $10.0bn | ||||||
52% of total loans | $10.0bn | ||||||
2% | |||||||
Total CRE | |||||||
Residential | Retail 13% | CA | TX 5% | ||||
IL 3% | |||||||
Mortgage* | $19.4bn | Total CRE | 47% | Other | |||
30% | 52% | 9% | WA 2% | ||||
Total Loans | |||||||
Office 7% | |||||||
C & I | Total CRE Concentration | ||||||
16% | Warehouse 6% |
industrial 3% | special use 1% | ||||||||||||||||||||
hotel /motel 2% | restaurant 0.8% | ||||||||||||||||||||
land 0.4% | |||||||||||||||||||||
292% | 287% | 288% | 288% | 288% | |||||||||||||||||
theater 0.1% |
Of $10.0bn in total CRE loans, it included a notional amount of | ||||||||||||||||||||
$794mn of interest rate swaps or 4.1% of total loans. | ||||||||||||||||||||
4Q2023 | 1Q2024 | 2Q2024 | 3Q2024 | 4Q2024 | ||||||||||||||||
* Residential Mortgage includes equity lines, installment and other loans. | 400% internal threshold | 300% regulatory threshold | ||||||||||||||||||
CRE/Total Capital | ||||||||||||||||||||
8
Commercial Real Estate Portfolio (cont'd)
Total CRE LTV Distribution
40% to 50%
23%
14% | $10.0bn | 50% to 60% | |
32% | |||
30% to 40% | |||
Total CRE | |||
under 30% | 60% to 70% | ||
10% | |||
Over 70% | 20% | ||
1% |
Total CRE LTV and Size by Property Type
Total CRE Loan | Avg. | Total CRE | |
Portfolio | Loan Size | Weighted | |
($mn) | ($mn) | Avg. LTV | |
Residental | $3,471 | $1.3 | 53% |
Retail | $2,432 | $2.1 | 48% |
Office | $1,449 | $2.2 | 47% |
Warehouse | $1,248 | $2.7 | 46% |
Industrial | $636 | $3.0 | 49% |
Hotel / Motel | $293 | $5.6 | 46% |
Special Use | $238 | $2.5 | 44% |
Restaurant | $164 | $0.9 | 44% |
Land | $83 | $3.6 | 47% |
Theater | $20 | $6.6 | 54% |
Total CRE | $10,034 | $1.8 | 49% |
9
Selected CRE and Construction Loan Portfolios
Residential CRE Portfolio
% based on $3.5bn loans outstanding
Retail CRE Portfolio
% based on $2.4bn 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%
5%
Retail Store/Building
Retail/Mix Use
Neighborhood
Center
Strip Mall
Shopping Center
Other | 1% |
31%
27%
22%
10%
9%
Multiple Family
Residential
Office & Commercial
Condominium
Single Family
Residential
Warehouse
Retail
84%
8%
6%
1%
1%
CA 36%
53%
LTV Weighted | TX 5% |
NY Average | |
49% | WA 4% |
IL 2%
Other 4%
NY 27%
48%
CA LTV Weighted Average
49%
TX 8% NV 4%
IL 4%
MA 1%
Other 7%
NY CA 56% 20%
73% LTV Weighted Average
Other 7%
10
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Cathay General Bancorp published this content on January 22, 2025, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on January 22, 2025 at 21:45:33.185.