Q3 2024 Cathay General Bancorp Earnings Call Transcript
Key Points
- Cathay General Bancorp (CATY) reported a net income of $67.5 million for Q3 2024, marking a 1% increase from Q2.
- Diluted earnings per share rose by 2.2% to $0.94 in Q3 2024 compared to $0.92 in Q2.
- The company repurchased 832,460 shares of common stock at an average cost of $42 per share, utilizing $35 million under its stock buyback program.
- Total deposits increased by $171 million or 3.5% annualized during Q3 2024, with core deposits rising by $195 million or 7.8% annualized.
- Cathay General Bancorp (CATY) has a strong liquidity position with unused borrowing capacity from the Federal Home Loan Bank and the Federal Reserve Bank, covering over 100% of uninsured and uncollateralized deposits.
- Loan growth for 2024 is expected to be between minus 1% and 0%, indicating a stagnant loan growth outlook.
- Non-accrual loans increased significantly to $162.8 million in Q3 2024, primarily due to a $38 million loan relationship placed on non-accrual.
- The provision for credit losses increased to $14.5 million in Q3 2024, up from $6.6 million in Q2.
- The effective tax rate for Q3 2024 was 13.6%, a significant increase from 7.9% in Q2.
- Classified loans rose to $382 million from $324 million in Q2, indicating a deterioration in loan quality.
Good afternoon, ladies and gentlemen and welcome to Cathay General Bankcorp's third quarter of 2024 earnings conference call. My name is Rocco and I will be your coordinator for today. At this time all participants are in listen-only mode.
Following the prepared remarks, there will be a question-and-answer session. (Operator Instructions) Today's call is being recorded and will be available for replay at www.cathaygeneralbankcorp.com.
Now I would like to turn the call over to Georgia Lo, Investor Relations of Cathay General Bancorp.
Thank you, Rocco, 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
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