Cathay General Bancorp Announces Fourth Quarter and Full Year 2024 Results

LOS ANGELES--(BUSINESS WIRE)--Cathay General Bancorp (the “Company,” “we,” “us,” or “our”) (Nasdaq: CATY), the holding company for Cathay Bank, today announced its unaudited financial results for the quarter and year ended December 31, 2024. The Company reported net income of $286.0 million, or $3.95 per diluted share, for the year ended December 31, 2024 and net income of $80.2 million, or $1.12 per diluted share, for the fourth quarter of 2024. FINANCIAL PERFORMANCE Three months ended Year ended December 31, (unaudited) December 31, 2024 September 30, 2024 December 31, 2023 2024 2023 Net income $80.2 million $ 67.5 million $82.5 million $286.0 million $354.1 million Basic earnings per common share $1.13 $0.94 $1.14 $3.97 $4.88 Diluted earnings per common share $1.12 $0.94 $1.13 $3.95 $4.86 Return on average assets 1.37% 1.15% 1.40% 1.22% 1.56% Return on average total stockholders' equity 11.18% 9.50% 12.21% 10.18% 13.56% Efficiency ratio 45.70% 51.11% 53.84% 51.35% 46.97% HIGHLIGHTS Net interest margin increased to 3.07% during the fourth quarter from 3.04% in the third quarter. Total loans, excluding loans held for sale, decreased to $19.38 billion, or 0.9%, from $19.55 billion in 2023. Total deposits increased $360.8 million, or 1.9%, to $19.69 billion in 2024. “We are pleased by the increase in the net interest margin compared to the third quarter of 2024. During the quarter, we repurchased 506,651 shares at an average cost of $47.10 per share for a total of $23.9 million,” commented Chang M. Liu, President and Chief Executive Officer of the Company. INCOME STATEMENT REVIEW FOURTH QUARTER 2024 COMPARED TO THE THIRD QUARTER 2024 Net income for the quarter ended December 31, 2024, was $80.2 million, an increase of $12.7 million, or 18.8%, compared to net income of $67.5 million for the third quarter of 2024. Diluted earnings per share for the fourth quarter of 2024 was $1.12 per share compared to $0.94 per share for the third quarter of 2024. Return on average stockholders’ equity was 11.18% and return on average assets was 1.37% for the quarter ended December 31, 2024, compared to a return on average stockholders’ equity of 9.50% and a return on average assets of 1.15% in the third quarter of 2024. Net interest income before provision for credit losses Net interest income before provision for credit losses increased $1.8 million, or 1.1%, to $171.0 million during the fourth quarter of 2024, compared to $169.2 million in the third quarter of 2024. The increase was due primarily to a decrease in interest deposit expense, partially offset by a decrease in interest income from loans and securities. The net interest margin was 3.07% for the fourth quarter of 2024 compared to 3.04% for the third quarter of 2024. For the fourth quarter of 2024, the yield on average interest-earning assets was 5.92%, the cost of funds on average interest-bearing liabilities was 3.75%, and the cost of average interest-bearing deposits was 3.72%. In comparison, for the third quarter of 2024, the yield on average interest-earning assets was 6.10%, the cost of funds on average interest-bearing liabilities was 3.99%, and the cost of average interest-bearing deposits was 3.95%. The decrease in the yield on average interest-bearing liabilities resulted mainly from lower interest rates on deposits driven by the lower repricing of maturing time deposits in the fourth quarter. The decrease in the yield on average interest-earning assets resulted mainly from lower interest rates on loans due to the decreasing rate environment. 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 2.17% for the fourth quarter of 2024, compared to 2.11% for the third quarter of 2024. Provision for credit losses The Company recorded a provision for credit losses of $14.5 million in the fourth quarter of 2024 compared to $14.5 million in the third quarter of 2024. As of December 31, 2024, the allowance for credit losses decreased by $1.9 million to $171.4 million, or 0.88% of gross loans, compared to $173.2 million, or 0.89% of gross loans as of September 30, 2024. The following table sets forth the charge-offs and recoveries for the periods indicated: Three months ended Year ended December 31, December 31, 2024 September 30, 2024 December 31, 2023 2024 2023 (In thousands) (Unaudited) Charge-offs: Commercial loans $ 14,064 $ 2,666 $ 1,392 $ 26,926 $ 13,909 Construction loans — — 4,221 — 4,221 Real estate loans (1) 2,472 1,805 — 4,531 5,341 Installment and other loans 7 7 — 15 15 Total charge-offs 16,543 4,478 5,613 31,472 23,486 Recoveries: Commercial loans 75 88 1,426 1,102 2,990 Construction loans — — — — — Real estate loans (1) 133 186 55 694 2,918 Installment and other loans 2 1 — 2 — Total recoveries 210 275 1,481 1,798 5,908 Net charge-offs/(recoveries) $ 16,333 $ 4,203 $ 4,132 $ 29,674 $ 17,578 (1) Real estate loans include commercial mortgage loans, residential mortgage loans and equity lines. Non-interest income Non-interest income, which includes revenues from depository service fees, letters of credit commissions, securities gains (losses), wealth management fees, and other sources of fee income, was $15.5 million for the fourth quarter of 2024, a decrease of $4.9 million, or 23.9%, compared to $20.4 million for the third quarter of 2024. The decrease was primarily due to a decrease of $5.6 million in gain on equity securities, when compared to the third quarter of 2024. Non-interest expense Non-interest expense decreased $11.7 million, or 12.0%, to $85.2 million in the fourth quarter of 2024 compared to $96.9 million in the third quarter of 2024. The decrease in non-interest expense in the fourth quarter of 2024 was primarily due to a decrease of $13.3 million, in amortization expense of investments in low-income housing and alternative energy partnerships, a decrease of $2.1 million in FDIC and State assessments offset, in part, by an increase $1.7 million in professional services expense and an increase of $1.7 million in salaries and employee benefits, when compared to the third quarter of 2024. The efficiency ratio, defined as non-interest expense divided by the sum of net interest income before provision for loan losses plus non-interest income, was 45.70% in the fourth quarter of 2024 compared to 51.11% for the third quarter of 2024. Income taxes The effective tax rate for the fourth quarter of 2024 was 7.57% compared to 13.61% for the third quarter of 2024. The effective tax rate includes the impact of alternative energy investments and low-income housing tax credits. BALANCE SHEET REVIEW Gross loans were $19.38 billion as of December 31, 2024, a decrease of $172.2 million, or 0.9%, from $19.55 billion as of December 31, 2023. The decrease was primarily due to decreases of $207.0 million, or 6.3%, in commercial loans, $149.7 million, or 2.6%, in residential mortgage loans, $103.0 million, or 24.4%, in construction loans and $15.9 million, or 6.5%, in home equity loans offset by an increase of $304.3 million, or 3.1%, in commercial real estate loans. For the fourth quarter of 2024, gross loans increased by $2.4 million, or 0.05% annualized. The loan balances and composition as of December 31, 2024, compared to September 30, 2024, and December 31, 2023, are presented below: December 31, 2024 September 30, 2024 December 31, 2023 (In thousands) (Unaudited) Commercial loans $ 3,098,004 $ 3,106,994 $ 3,305,048 Construction loans 319,649 307,057 422,647 Commercial real estate loans 10,033,830 9,975,272 9,729,581 Residential mortgage loans 5,689,097 5,750,546 5,838,747 Equity lines 229,995 226,838 245,919 Installment and other loans 5,380 6,886 6,198 Gross loans $ 19,375,955 $ 19,373,593 $ 19,548,140 Allowance for loan losses (161,765) (163,733) (154,562) Unamortized deferred loan fees (10,541) (10,505) (10,720) Total loans held for investment, net $ 19,203,649 $ 19,199,355 $ 19,382,858 Loans held for sale $ — $ 5,190 $ — Total deposits were $19.69 billion as of December 31, 2024, an increase of $360.8 million, or 1.9%, from $19.33 billion as of December 31, 2023. The deposit balances and composition as of December 31, 2024, compared to September 30, 2024, and December 31, 2023, are presented below: December 31, 2024 September 30, 2024 December 31, 2023 (In thousands) (Unaudited) Non-interest-bearing demand deposits $ 3,284,342 $ 3,253,823 $ 3,529,018 NOW deposits 2,205,695 2,093,861 2,370,685 Money market deposits 3,372,773 3,134,460 3,049,754 Savings deposits 1,252,788 1,215,974 1,039,203 Time deposits 9,570,601 10,245,823 9,336,787 Total deposits $ 19,686,199 $ 19,943,941 $ 19,325,447 ASSET QUALITY REVIEW As of December 31, 2024, total non-accrual loans were $169.2 million, an increase of $102.5 million, or 153.7%, from $66.7 million as of December 31, 2023, and an increase of $6.4 million, or 3.9%, from $162.8 million as of September 30, 2024. The allowance for loan losses was $161.8 million and the allowance for off-balance sheet unfunded credit commitments was $9.7 million as of December 31, 2024. The allowances represent the amount estimated by management to be appropriate to absorb expected credit losses inherent in the loan portfolio, including unfunded credit commitments. The allowance for loan losses represented 0.83% of period-end gross loans, and 93.39% of non-performing loans as of December 31, 2024. The comparable ratios were 0.79% of period-end gross loans, and 209.33% of non-performing loans as of December 31, 2023. The changes in non-performing assets and loan modifications to borrowers experiencing financial difficulty as of December 31, 2024, compared to December 31, 2023, and September 30, 2024, are presented below: (In thousands) (Unaudited) December 31, 2024 December 31, 2023 % Change September 30, 2024 % Change Non-performing assets Accruing loans past due 90 days or more $ 4,050 $ 7,157 (43 ) $ 6,931 (42 ) Non-accrual loans: Construction loans — 7,736 (100 ) — — Commercial real estate loans 83,128 32,030 160 87,577 (5 ) Commercial loans 59,767 14,404 315 52,074 15 Residential mortgage loans 26,266 12,511 110 23,183 13 Total non-accrual loans: $ 169,161 $ 66,681 154 $ 162,834 4 Total non-performing loans 173,211 73,838 135 169,765 2 Other real estate owned 23,071 19,441 19 18,277 26 Total non-performing assets $ 196,282 $ 93,279 110 $ 188,042 4 Allowance for loan losses $ 161,765 $ 154,562 5 $ 163,733 (1 ) Total gross loans outstanding, at period-end $ 19,375,955 $ 19,548,140 (1 ) $ 19,373,593 0 Allowance for loan losses to non-performing loans, at period-end 93.39% 209.33% 96.45% Allowance for loan losses to gross loans, at period-end 0.83% 0.79% 0.85% The ratio of non-performing assets to total assets was 0.85% as of December 31, 2024, compared to 0.40% as of December 31, 2023. Total non-performing assets increased $103.0 million, or 110.4%, to $196.3 million as of December 31, 2024, compared to $93.3 million as of December 31, 2023, primarily due to an increase of $102.5 million, or 153.7%, in non-accrual loans, and $3.6 million, or 18.7%, in other real estate owned, offset, by a decrease of $3.1 million, or 43.4%, in accruing loans past due 90 days or more. CAPITAL ADEQUACY REVIEW As of December 31, 2024, the Company’s Tier 1 risk-based capital ratio of 13.55%, total risk-based capital ratio of 15.09%, and Tier 1 leverage capital ratio of 10.97%, calculated under the Basel III capital rules, continue to place the Company in the “well capitalized” category for regulatory purposes, which is defined as institutions with a Tier 1 risk-based capital ratio equal to or greater than 8%, a total risk-based capital ratio equal to or greater than 10%, and a Tier 1 leverage capital ratio equal to or greater than 5%. As of December 31, 2023, the Company’s Tier 1 risk-based capital ratio was 12.84%, total risk-based capital ratio was 14.31%, and Tier 1 leverage capital ratio was 10.55%. FULL YEAR REVIEW Net income for the year ended December 31, 2024, was $286.0 million, a decrease of $68.1 million, or 19.2%, compared to net income of $354.1 million for the year ended December 31, 2023. Diluted earnings per share for the year ended December 31, 2024, was $3.95 compared to $4.86 per share for the year ended December 31, 2023. The net interest margin for the year ended December 31, 2024, was 3.04% compared to 3.45% for the year ended December 31, 2023. Return on average stockholders’ equity was 10.18% and return on average assets was 1.22% for the year ended December 31, 2024, compared to a return on average stockholders’ equity of 13.56% and a return on average assets of 1.56% for the year ended December 31, 2023. The efficiency ratio for the year ended December 31, 2024, was 51.35% compared to 46.97% for the year ended December 31, 2023. CONFERENCE CALL Cathay General Bancorp will host a conference call to discuss its fourth quarter and year-end 2024 financial results this afternoon, Wednesday, January 22, 2025, at 3:00 p.m., Pacific Time. Analysts and investors may dial in and participate in the question-and-answer session. To access the call, please dial 1-833-816-1377 and enter Conference ID 10195683. The presentation accompanying this call and access to the live webcast is available on our site at www.cathaygeneralbancorp.com and a replay of the webcast will be archived for one year within 24 hours after the event. ABOUT CATHAY GENERAL BANCORP Cathay General Bancorp is a publicly traded company (Nasdaq: CATY) and is the holding company for Cathay Bank, a California state-chartered bank. Founded in 1962, Cathay Bank offers a wide range of financial services and currently operate over 60 branches across the United States in California, New York, Washington, Texas, Illinois, Massachusetts, Maryland, Nevada, and New Jersey. Overseas, it has a branch outlet in Hong Kong, and representative offices in Beijing, Shanghai, and Taipei. To learn more about Cathay Bank, please visit www.cathaybank.com. Cathay General Bancorp’s website is at www.cathaygeneralbancorp.com. Information set forth on such websites is not incorporated into this press release. FORWARD-LOOKING STATEMENTS Statements made in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995 regarding management’s beliefs, projections, and assumptions concerning future results and events. These forward-looking statements may include, but are not limited to, such words as “aims,” “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “hopes,” “intends,” “may,” “plans,” “projects,” “predicts,” “potential,” “possible,” “optimistic,” “seeks,” “shall,” “should,” “will,” and variations of these words and similar expressions. Forward-looking statements are based on estimates, beliefs, projections, and assumptions of management and are not guarantees of future performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. Such risks and uncertainties and other factors include, but are not limited to, adverse developments or conditions related to or arising from local, regional, national and international business, market and economic conditions and events and the impact they may have on us, our customers and our operations, assets and liabilities; possible additional provisions for loan losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to including potential future supervisory action by bank supervisory authorities; increased costs of compliance and other risks associated with changes in regulation; higher capital requirements from the implementation of the Basel III capital standards; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; our ability to generate anticipated returns on our investments and financings, including in tax-advantaged projects; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; natural disasters, public health crises and geopolitical events; general economic or business conditions in Asia, and other regions where Cathay Bank has operations; failures, interruptions, or security breaches of our information systems; our ability to adapt our systems to technological changes; risk management processes and strategies; adverse results in legal proceedings; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in accounting standards or tax laws and regulations; market disruption and volatility; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; issuance of preferred stock; successfully raising additional capital, if needed, and the resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; and general competitive, economic political, and market conditions and fluctuations. These and other factors are further described in Cathay General Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2023 (Item 1A in particular), other reports filed with the Securities and Exchange Commission (“SEC”), and other filings Cathay General Bancorp makes with the SEC from time to time. Actual results in any future period may also vary from the past results discussed in this press release. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we undertake no obligation to update or review any forward-looking statement to reflect circumstances, developments or events occurring after the date on which the statement is made or to reflect the occurrence of unanticipated events. CATHAY GENERAL BANCORP CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) Three months ended Year ended December 31, (In thousands, except per share data) December 31, 2024 September 30, 2024 December 31, 2023 2024 2023 Financial performance Net interest income before provision for credit losses $ 171,012 $ 169,155 $ 182,138 $ 674,055 $ 741,746 Provision for credit losses 14,500 14,500 1,723 37,500 25,978 Net interest income after provision for credit losses 156,512 154,655 180,415 636,555 715,768 Non-interest income 15,473 20,365 23,101 55,664 68,292 Non-interest expense 85,219 96,867 110,498 374,677 380,478 Income before income tax expense 86,766 78,153 93,018 317,542 403,582 Income tax expense 6,565 10,639 10,492 31,563 49,458 Net income $ 80,201 $ 67,514 $ 82,526 $ 285,979 $ 354,124 Net income per common share: Basic $ 1.13 $ 0.94 $ 1.14 $ 3.97 $ 4.88 Diluted $ 1.12 $ 0.94 $ 1.13 $ 3.95 $ 4.86 Cash dividends paid per common share $ 0.34 $ 0.34 $ 0.34 $ 1.36 $ 1.36 Selected ratios Return on average assets 1.37% 1.15% 1.40% 1.22% 1.56% Return on average total stockholders’ equity 11.18% 9.50% 12.21% 10.18% 13.56% Efficiency ratio 45.70% 51.11% 53.84% 51.35% 46.97% Dividend payout ratio 29.95% 36.04% 29.92% 34.26% 27.85% Yield analysis (Fully taxable equivalent) Total interest-earning assets 5.92% 6.10% 5.99% 6.02% 5.78% Total interest-bearing liabilities 3.75% 3.99% 3.59% 3.90% 3.11% Net interest spread 2.17% 2.11% 2.40% 2.12% 2.67% Net interest margin 3.07% 3.04% 3.27% 3.04% 3.45% Capital ratios December 31, 2024 September 30, 2024 December 31, 2023 Tier 1 risk-based capital ratio 13.55% 13.32% 12.84% Total risk-based capital ratio 15.09% 14.87% 14.31% Tier 1 leverage capital ratio 10.97% 10.82% 10.55% . . . CATHAY GENERAL BANCORP CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share data) December 31, 2024 September 30, 2024 December 31, 2023 Assets Cash and due from banks $ 157,167 $ 182,542 $ 173,988 Short-term investments and interest bearing deposits 882,353 1,156,223 654,813 Securities available-for-sale (amortized cost of $1,668,661 at December 31, 2024, $1,602,696 at September 30, 2024 and $1,726,080 at December 31, 2023) 1,547,128 1,508,356 1,604,570 Loans held for sale — 5,190 — Loans 19,375,955 19,373,593 19,548,140 Less: Allowance for loan losses (161,765) (163,733) (154,562) Unamortized deferred loan fees, net (10,541) (10,505) (10,720) Loans, net 19,203,649 19,199,355 19,382,858 Equity securities 34,429 35,741 40,406 Federal Home Loan Bank stock 17,250 17,250 17,746 Other real estate owned, net 23,071 18,277 19,441 Affordable housing investments and alternative energy partnerships, net 289,611 280,091 315,683 Premises and equipment, net 88,676 89,158 91,097 Customers’ liability on acceptances 14,061 12,043 3,264 Accrued interest receivable 97,779 95,351 97,673 Goodwill 375,696 375,696 375,696 Other intangible assets, net 3,335 3,590 4,461 Right-of-use assets- operating leases 28,645 30,543 32,076 Other assets 291,831 265,037 267,762 Total assets $ 23,054,681 $ 23,274,443 $ 23,081,534 Liabilities and Stockholders’ Equity Deposits: Non-interest-bearing demand deposits $ 3,284,342 $ 3,253,823 $ 3,529,018 Interest-bearing deposits: NOW deposits 2,205,695 2,093,861 2,370,685 Money market deposits 3,372,773 3,134,460 3,049,754 Savings deposits 1,252,788 1,215,974 1,039,203 Time deposits 9,570,601 10,245,823 9,336,787 Total deposits 19,686,199 19,943,941 19,325,447 Advances from the Federal Home Loan Bank 60,000 60,000 540,000 Other borrowings for affordable housing investments 17,740 17,783 15,787 Long-term debt 119,136 119,136 119,136 Acceptances outstanding 14,061 12,043 3,264 Lease liabilities - operating leases 30,851 32,906 34,797 Other liabilities 280,990 258,321 306,528 Total liabilities 20,208,977 20,444,130 20,344,959 Stockholders' equity 2,845,704 2,830,313 2,736,575 Total liabilities and equity $ 23,054,681 $ 23,274,443 $ 23,081,534 Book value per common share $ 40.16 $ 39.66 $ 37.66 Number of common shares outstanding 70,863,324 71,355,869 72,668,927 CATHAY GENERAL BANCORP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended Year ended December 31, December 31, 2024 September 30, 2024 December 31, 2023 2024 2023 (In thousands, except share and per share data) Interest and Dividend Income Loan receivable, including loan fees $ 300,991 $ 310,311 $ 302,477 $ 1,217,166 $ 1,130,242 Investment securities 13,587 15,125 14,885 59,307 51,717 Federal Home Loan Bank stock 379 375 392 1,684 1,349 Deposits with banks 15,025 13,680 15,509 56,818 58,914 Total interest and dividend income 329,982 339,491 333,263 1,334,975 1,242,222 Interest Expense Time deposits 111,082 119,786 97,826 458,490 331,997 Other deposits 44,557 45,918 43,282 177,775 135,965 Advances from Federal Home Loan Bank 766 1,885 7,289 14,283 22,164 Long-term debt 2,194 2,351 1,759 8,129 6,480 Short-term borrowings 371 396 969 2,243 3,870 Total interest expense 158,970 170,336 151,125 660,920 500,476 Net interest income before provision for credit losses 171,012 169,155 182,138 674,055 741,746 Provision for credit losses 14,500 14,500 1,723 37,500 25,978 Net interest income after provision for credit losses 156,512 154,655 180,415 636,555 715,768 Non-Interest Income Net (losses)/gains from equity securities (1,312) 4,253 8,950 (7,516) 18,248 Debt securities losses, net — — — 1,107 (3,000) Letters of credit commissions 2,063 2,081 1,744 7,749 6,716 Depository service fees 1,674 1,572 1,423 6,574 6,432 Wealth management fees 6,194 6,545 4,820 24,055 17,506 Other operating income 6,854 5,914 6,164 23,695 22,390 Total non-interest income 15,473 20,365 23,101 55,664 68,292 Non-Interest Expense Salaries and employee benefits 42,526 40,859 40,101 167,376 154,149 Occupancy expense 5,724 5,938 5,387 23,281 22,270 Computer and equipment expense 4,923 4,753 4,579 20,135 17,478 Professional services expense 8,761 7,021 8,279 30,986 32,491 Data processing service expense 4,234 4,330 3,718 16,370 14,728 FDIC and State assessments 1,198 3,250 14,358 14,279 23,588 Marketing expense 1,518 1,614 1,110 6,520 5,887 Other real estate owned expense 368 596 195 2,699 761 Amortization of investments in low income housing and alternative energy partnerships 10,728 24,077 26,119 72,633 86,616 Amortization of core deposit intangibles 250 250 251 1,098 1,310 Acquisition, integration and restructuring costs — — 671 — 671 Other operating expense 4,989 4,179 5,730 19,300 20,529 Total non-interest expense 85,219 96,867 110,498 374,677 380,478 Income before income tax expense 86,766 78,153 93,018 317,542 403,582 Income tax expense 6,565 10,639 10,492 31,563 49,458 Net income $ 80,201 $ 67,514 $ 82,526 $ 285,979 $ 354,124 Net income per common share: Basic $ 1.13 $ 0.94 $ 1.14 $ 3.97 $ 4.88 Diluted $ 1.12 $ 0.94 $ 1.13 $ 3.95 $ 4.86 Cash dividends paid per common share $ 0.34 $ 0.34 $ 0.34 $ 1.36 $ 1.36 Basic average common shares outstanding 71,168,983 71,786,624 72,652,779 72,068,850 72,573,025 Diluted average common shares outstanding 71,491,518 72,032,456 72,906,310 72,327,017 72,862,628 CATHAY GENERAL BANCORP AVERAGE BALANCES – SELECTED CONSOLIDATED FINANCIAL INFORMATION (Unaudited) Three months ended (In thousands)(Unaudited) December 31, 2024 September 30, 2024 December 31, 2023 Interest-earning assets: Average Balance Average Yield/Rate (1) Average Balance Average Yield/Rate (1) Average Balance Average Yield/Rate (1) Loans (1) $ 19,345,616 6.19% $ 19,455,521 6.35% $ 19,330,187 6.21% Taxable investment securities 1,542,577 3.50% 1,638,414 3.67% 1,594,267 3.71% FHLB stock 17,250 8.75% 17,250 8.65% 19,599 7.94% Deposits with banks 1,265,496 4.72% 1,035,534 5.26% 1,130,806 5.44% Total interest-earning assets $ 22,170,939 5.92% $ 22,146,719 6.10% $ 22,074,859 5.99% Interest-bearing liabilities: Interest-bearing demand deposits $ 2,131,978 1.85% $ 2,134,807 2.10% $ 2,466,263 2.14% Money market deposits 3,259,771 3.52% 3,073,384 3.75% 3,200,455 3.33% Savings deposits 1,306,584 1.76% 1,212,870 1.85% 1,112,454 1.11% Time deposits 9,932,776 4.45% 10,250,601 4.65% 9,208,820 4.21% Total interest-bearing deposits $ 16,631,109 3.72% $ 16,671,662 3.95% $ 15,987,992 3.50% Other borrowed funds 111,142 4.07% 186,838 4.86% 600,483 5.46% Long-term debt 119,136 7.33% 119,136 7.85% 119,136 5.86% Total interest-bearing liabilities 16,861,387 3.75% 16,977,636 3.99% 16,707,611 3.59% Non-interest-bearing demand deposits 3,318,350 3,230,150 3,598,385 Total deposits and other borrowed funds $ 20,179,737 $ 20,207,786 $ 20,305,996 Total average assets $ 23,332,869 $ 23,353,025 $ 23,304,836 Total average equity $ 2,854,994 $ 2,828,379 $ 2,681,899 Year ended (In thousands)(Unaudited) December 31, 2024 December 31, 2023 Interest-earning assets: Average Balance Average Yield/Rate (1) Average Balance Average Yield/Rate (1) Loans (1) $ 19,434,614 6.26% $ 18,763,271 6.02% Taxable investment securities 1,621,477 3.66% 1,558,877 3.32% FHLB stock 18,681 9.02% 18,620 7.25% Deposits with banks 1,098,488 5.17% 1,141,720 5.16% Total interest-earning assets $ 22,173,260 6.02% $ 21,482,488 5.78% Interest-bearing liabilities: Interest-bearing demand deposits $ 2,186,726 2.05% $ 2,388,080 1.71% Money market deposits 3,166,318 3.65% 3,164,739 2.72% Savings deposits 1,151,427 1.52% 1,070,405 0.83% Time deposits 10,022,826 4.57% 8,849,293 3.75% Total interest-bearing deposits $ 16,527,297 3.85% $ 15,472,517 3.02% Other borrowed funds 315,086 5.24% 505,218 5.15% Long-term debt 119,136 6.82% 119,136 5.44% Total interest-bearing liabilities 16,961,519 3.90% 16,096,871 3.11% Non-interest-bearing demand deposits 3,283,586 3,705,788 Total deposits and other borrowed funds $ 20,245,105 $ 19,802,659 Total average assets $ 23,368,429 $ 22,705,192 Total average equity $ 2,809,620 $ 2,610,582 (1) Yields and interest earned include net loan fees. Non-accrual loans are included in the average balance. CATHAY GENERAL BANCORP GAAP to NON-GAAP RECONCILIATION SELECTED CONSOLIDATED FINANCIAL INFORMATION (Unaudited) The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible equity and tangible equity to tangible assets ratio are non-GAAP financial measures. Tangible equity and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios is prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion. As of December 31, 2024 September 30, 2024 December 31, 2023 (In thousands) (Unaudited) Stockholders' equity (a) $ 2,845,704 $ 2,830,313 $ 2,736,575 Less: Goodwill (375,696) (375,696) (375,696) Other intangible assets (1) (3,335) (3,590) (4,461) Tangible equity (b) $ 2,466,673 $ 2,451,027 $ 2,356,418 Total assets (c) $ 23,054,681 $ 23,274,443 $ 23,081,534 Less: Goodwill (375,696) (375,696) (375,696) Other intangible assets (1) (3,335) (3,590) (4,461) Tangible assets (d) $ 22,675,650 $ 22,895,157 $ 22,701,377 Number of common shares outstanding (e) 70,863,324 71,355,869 72,668,927 Total stockholders' equity to total assets ratio (a)/(c) 12.34% 12.16% 11.86% Tangible equity to tangible assets ratio (b)/(d) 10.88% 10.71% 10.38% Tangible book value per share (b)/(e) $ 34.81 $ 34.35 $ 32.43 Three Months Ended Twelve Months Ended December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 (In thousands) (Unaudited) Net Income $ 80,201 $ 67,514 $ 82,526 $ 285,979 $ 354,124 Add: Amortization of other intangibles (1) 256 264 262 1,127 1,294 Tax effect of amortization adjustments (2) (76) (78) (78) (334) (384) Tangible net income (f) $ 80,381 $ 67,700 $ 82,710 $ 286,772 $ 355,034 Return on tangible common equity (3) (f)/(b) 13.03% 11.05% 14.04% 11.63% 15.07% (1) Includes core deposit intangibles and mortgage servicing (2) Applied the statutory rate of 29.65%. (3) Annualized

Cathay General Bancorp Announces Fourth Quarter and Full Year 2024 Results

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