Q2 2024 Cathay General Bancorp Earnings Call Transcript
Key Points
- Cathay General Bancorp (CATY) reported net income of $66.8 million for Q2 2024, despite a decrease from the previous quarter.
- The company repurchased 689,470 shares of its common stock, demonstrating a commitment to returning value to shareholders.
- The loan portfolio consists of 64% fixed rate and hybrid loans, providing stability in interest income.
- Cathay General Bancorp (CATY) has a strong liquidity position, with available liquidity sources covering over 100% of uninsured and uncollateralized deposits.
- The effective tax rate for Q2 2024 was reduced to 7.9%, down from 10.8% in Q1, indicating improved tax efficiency.
- Net income decreased by 6.4% compared to Q1 2024, primarily due to increased provisions for credit losses.
- Total gross loans decreased by $72 million, reflecting slower than expected loan growth.
- Non-accrual loans increased to 0.55% of total loans, with significant contributions from office and retail condo CRE loans.
- Total deposits decreased by $73 million, driven by a runoff of brokered deposits.
- Non-interest expense increased by 6.5% due to higher amortization of tax credit investments and other expenses.
Good afternoon, ladies and gentlemen, and welcome to the Cathay General Bancorp's Second Quarter 2024 earnings conference call. My name is Cole, and I'll be your coordinator for today. (Operator Instructions) Today's call is being recorded and will be available for replay at www.cathaygeneralbancorp.com. I would now like to turn the call over to Georgia Lo, Investor Relations of Cathay General Bancorp. Please go ahead.
Thank you, Cole, and good afternoon. Here to discuss the financial results today are Mr. Chang Liu, our President and Chief Executive Officer; and Mr. Heng Chen, our Executive Vice President and Chief Financial Officer.
Before we begin, we wish to remind you that the speakers on this call may make forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995 concerning future results and events and that these statements are subject to
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