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Cathay General Bancorp Announces First Quarter 2024 Results
FINANCIAL PERFORMANCE
Three months ended Three months ended Three months ended -------------------------------------------- ------------------ ------------------------------------------------------------------------------------- (unaudited) March 31, 2024 March 31, 2024 December 31, 2023 March 31, 2023 -------------------------------------------- ------------------ -------------- -------------------- ----------------- -------------------- -------------- Net income $ 71.4 million $ 71.4 million $82.5 million $ 96.0 million Basic earnings per common share $0.98 $0.98 $1.14 $1.32 Diluted earnings per common share $0.98 $0.98 $1.13 $1.32 Return on average assets 1.23% 1.23% 1.40% 1.76% Return on average total stockholders' equity 10.40% 10.40% 12.21% 15.39%
FIRST QUARTER HIGHLIGHTS
Total deposits increased by $520.8 million, or 10.8% annualized, to $19.85 billion in the first quarter of 2024. Net interest margin decreased to 3.05% in the first quarter of 2024 from 3.27% in the fourth quarter of 2023. Diluted earnings per share decreased to $0.98 for the first quarter of 2024 compared to $1.13 for the fourth quarter of 2023 due in part to changes in equity securities valuations.
"For the first quarter of 2024, our total deposits increased by $520.8 million, or 10.8% annualized, to $19.85 billion," commented Chang M. Liu, President and Chief Executive Officer of the Company.
INCOME STATEMENT REVIEW FIRST QUARTER 2024 COMPARED TO THE FOURTH QUARTER 2023
Net income for the quarter ended March 31, 2024, was $71.4 million, a decrease of $11.1 million, or 13.5%, compared to net income of $82.5 million for the fourth quarter of 2023. Diluted earnings per share for the first quarter of 2024 was $0.98 per share compared to $1.13 per share for the fourth quarter of 2023. The first quarter net income included a $9.0 million, or $0.09 per diluted share mark-to-market loss from equity securities held by the Company and a $2.9 million, or $0.03 per diluted share, accrual for an increase in the FDIC special assessment.
Return on average stockholders' equity was 10.40% and return on average assets was 1.23% for the quarter ended March 31, 2024, compared to a return on average stockholders' equity of 12.21% and a return on average assets of 1.40% in the fourth quarter of 2023.
Net interest income before provision for credit losses
Net interest income before provision for credit losses decreased $13.5 million, or 7.4%, to $168.6 million during the first quarter of 2024, compared to $182.1 million in the fourth quarter of 2023. The decrease was due primarily to an increase in deposit interest expense and a decrease in interest income from loans and securities.
The net interest margin was 3.05% for the first quarter of 2024 compared to 3.27% for the fourth quarter of 2023.
For the first quarter of 2024, the yield on average interest-earning assets was 6.01%, the cost of funds on average interest-bearing liabilities was 3.87%, and the cost of interest-bearing deposits was 3.78%. In comparison, for the fourth quarter of 2023, the yield on average interest-earning assets was 5.99%, the cost of funds on average interest-bearing liabilities was 3.59%, and the cost of interest-bearing deposits was 3.50%. The increase in the costs of average interest-bearing liabilities was mainly a result of higher interest rates on interest bearing deposits. 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 2.14% for the first quarter of 2024, compared to 2.40% for the fourth quarter of 2023.
Provision for credit losses
The Company recorded a provision for credit losses of $1.9 million in the first quarter of 2024 compared with $1.7 million in the fourth quarter of 2023. As of March 31, 2024, the allowance for credit losses, comprised of the reserve for loan losses and the reserve for unfunded loan commitments, increased $760 thousand to $164.4 million, or 0.85% of gross loans, compared to $163.6 million, or 0.84% of gross loans, as of December 31, 2023.
The following table sets forth the charge-offs and recoveries for the periods indicated:
Three months ended Three months ended Three months ended
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March 31, 2024 March 31, 2024 March 31, 2024 December 31, 2023 December 31, 2023 March 31, 2023 March 31, 2023
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(In thousands) (Unaudited) (In thousands) (Unaudited) (In thousands) (Unaudited)
Charge-offs:
Commercial loans $ $ 1,939 $ $ 1,392 $ $ 3,911
Construction loans -- 4,221 --
Real estate loans (1) 254 -- 3,990
Installment and other loans -- -- 6
-------------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Total charge-offs 2,193 5,613 7,907
-------------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Recoveries:
Commercial loans 812 1,426 511
Construction loans -- -- --
Real estate loans (1) 241 55 2,540
-------------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Total recoveries 1,053 1,481 3,051
-------------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
(1) Real estate loans include commercial real estate loans, residential mortgage loans and equity lines. Real estate loans include commercial real estate 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 $6.6 million for the first quarter of 2024, a decrease of $16.5 million, or 71.4%, compared to $23.1 million for the fourth quarter of 2023. The decrease was primarily due to an $18.0 million decrease in unrealized gains on equity securities offset, in part, by a $1.4 million recovery from the sale of a previously written-off security, when compared to the fourth quarter of 2023.
Non-interest expense
Non-interest expense decreased $17.3 million, or 15.7%, to $93.2 million in the first quarter of 2024 compared to $110.5 million in the fourth quarter of 2023. The decrease in non-interest expense in the first quarter of 2024 was primarily due to a decrease of $11.7 million in amortization expense of investments in low-income housing and alternative energy partnerships, a decrease of $8.3 million in FDIC and state assessments and a decrease of $1.3 million in professional services expenses offset, in part, by an increase of $3.5 million in salaries and employee benefits when compared to the fourth quarter of 2023. 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 53.22% in the first quarter of 2024 compared to 53.84% for the fourth quarter of 2023.
Income taxes
The effective tax rate for the first quarter of 2024 was 10.76% compared to 11.28% for the fourth quarter of 2023. The effective tax rate includes the impact of alternative energy investments and low-income housing tax credits.
BALANCE SHEET REVIEW
Gross loans, excluding loans held for sale, were $19.43 billion as of March 31, 2024, a decrease of $118.7 million, or 0.6%, from $19.55 billion as of December 31, 2023. The decrease was primarily due to a decrease of $172.5 million, or 5.2%, in commercial loans, and a decrease of $39.9 million, or 9.4%, in construction loans offset, in part, by an increase of $92.2 million, or 0.9%, in commercial real estate loans and an increase of $3.1 million, or 0.1%, in residential mortgage loans.
The loan balances and composition as of March 31, 2024, compared to December 31, 2023, and March 31, 2023, are presented below:
March 31, 2024 March 31, 2024 March 31, 2024 December 31, 2023 March 31, 2023
------------------------------ -------------------------- -------------------------------------------------- -------------------------------------------------- -------------------- --------------------------------------------------
(In thousands) (Unaudited) (In thousands) (Unaudited) (In thousands) (Unaudited)
Commercial loans $ $ 3,132,580 $ $ 3,305,048 $ $ 3,153,039
Construction loans 382,775 422,647 558,967
Commercial real estate loans 9,821,807 9,729,581 8,916,766
Residential mortgage loans 5,841,846 5,838,747 5,384,220
Equity lines 245,222 245,919 298,630
Installment and other loans 5,166 6,198 5,717
-------------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Gross loans $ $ 19,429,396 $ $ 19,548,140 $ $ 18,317,339
Allowance for loan losses (154,589 ) (154,562 ) (144,884 )
Unamortized deferred loan fees (11,737 ) (10,720 ) (5,872 )
-------------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Total deposits were $19.85 billion as of March 31, 2024, an increase of $520.8 million, or 2.7%, from $19.33 billion as of December 31, 2023.
The deposit balances and composition as of March 31, 2024, compared to December 31, 2023, and March 31, 2023, are presented below:
March 31, 2024 March 31, 2024 March 31, 2024 December 31, 2023 March 31, 2023
------------------------------------ -------------------------- -------------------------------------------------- ------------------------------------------------- -------------------------------------------------
(In thousands) (Unaudited) (In thousands) (Unaudited) (In thousands) (Unaudited)
Non-interest-bearing demand deposits $ $ 3,289,539 $ $ 3,529,018 $ $ 3,748,719
NOW deposits 2,331,486 2,370,685 2,354,195
Money market deposits 3,117,557 3,049,754 3,014,500
Savings deposits 1,039,144 1,039,203 891,061
Time deposits 10,068,533 9,336,787 8,640,397
-------------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
ASSET QUALITY REVIEW
As of March 31, 2024, total non-accrual loans were $98.1 million, an increase of $31.4 million, or 47.1%, from $66.7 million as of December 31, 2023.
The allowance for loan losses was $154.6 million and the allowance for off-balance sheet unfunded credit commitments was $9.8 million as of March 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 0.80% of period-end gross loans, and 146.30% of non-performing loans as of March 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 modifications to borrowers experiencing financial difficulties as of March 31, 2024, compared to December 31, 2023, and March 31, 2023, are presented below:
(Dollars in thousands) (Unaudited) March 31, 2024 March 31, 2024 December 31, 2023 % Change March 31, 2023 % Change
---------------------------------------------------------------------------- -------------------- ------------------------------------------------------ -------------------------------------------------- ----------------------------------- ------------------------------------------------------ ----------------------------------
Non-performing assets
Accruing loans past due 90 days or more $ $ 7,560 $ $ 7,157 6 6 $ $ 12,756 (41 (41 )
Non-accrual loans:
Construction loans 22,998 7,736 197 197 -- -- --
Commercial real estate loans 47,465 32,030 48 48 40,218 18 18
Commercial loans 14,642 14,404 2 2 22,079 (34 (34 )
Residential mortgage loans 13,002 12,511 4 4 11,283 15 15
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------- --------------------
Total non-accrual loans $ $ 98,107 $ $ 66,681 47 47 $ $ 73,580 33 33
==================== ==================== ============== ==================== ==================== ==================== ========== ==================== ==================== ==================== ============== ====================
Total non-performing loans 105,667 73,838 43 43 86,336 22 22
Other real estate owned 19,441 19,441 -- -- 4,067 378 378
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------- --------------------
Total non-performing assets $ $ 125,108 $ $ 93,279 34 34 $ $ 90,403 38 38
==================== ==================== ============== ==================== ==================== ==================== ========== ==================== ==================== ==================== ============== ====================
Accruing loan modifications to borrowers experiencing financial difficulties $ $ -- $ $ 2,872 (100 (100 ) $ $ -- -- --
Allowance for loan losses $ $ 154,589 $ $ 154,562 -- -- $ $ 144,884 7 7
Total gross loans outstanding, at period-end $ $ 19,429,396 $ $ 19,548,140 (1 (1 ) $ $ 18,317,339 6 6
Allowance for loan losses to non-performing loans, at period-end 146.30 % 209.33 % 167.81 %
Allowance for loan losses to gross loans, at period-end 0.80 % 0.79 % 0.79 %
The ratio of non-performing assets to total assets was 0.53% as of March 31, 2024, compared to 0.40% as of December 31, 2023. Total non-performing assets increased $31.8 million, or 34.1%, to $125.1 million as of March 31, 2024, compared to $93.3 million as of December 31, 2023, primarily due to an increase of $31.4 million, or 47.1%, in non-accrual loans, and an increase of $403 thousand, or 5.6%, in accruing loans past due 90 days or more.
CAPITAL ADEQUACY REVIEW
As of March 31, 2024, the Company's Tier 1 risk-based capital ratio of 13.08%, total risk-based capital ratio of 14.55%, and Tier 1 leverage capital ratio of 10.71%, 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%.
CONFERENCE CALL
Cathay General Bancorp will host a conference call to discuss its first quarter 2024 financial results this afternoon, Monday, April 22, 2024, 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 refer to Conference Code 10187902. 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 operates 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 a representative office 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
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(Dollars in thousands, except per share data) March 31, 2024 December 31, 2023 March 31, 2023
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Financial performance
Net interest income before provision for credit losses $ $ 168,572 $ $ 182,138 $ $ 192,435
Provision for credit losses 1,900 1,723 8,100
-------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------
Net interest income after provision for credit losses 166,672 180,415 184,335
Non-interest income 6,611 23,101 14,244
Non-interest expense 93,239 110,498 83,186
-------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------
Income before income tax expense 80,044 93,018 115,393
Income tax expense 8,609 10,492 19,386
-------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------
Net income $ $ 71,435 $ $ 82,526 $ $ 96,007
==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ====================
Net income per common share
Basic $ $ 0.98 $ $ 1.14 $ $ 1.32
Diluted $ $ 0.98 $ $ 1.13 $ $ 1.32
Cash dividends paid per common share $ $ 0.34 $ $ 0.34 $ $ 0.34
========================================================================== ==================== ====================================================================== ====================================================================== ==================================================
Selected ratios
Return on average assets 1.23 % 1.40 % 1.76 %
Return on average total stockholders' equity 10.40 % 12.21 % 15.39 %
Efficiency ratio 53.22 % 53.84 % 40.25 %
Dividend payout ratio 34.59 % 29.92 % 25.63 %
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Yield analysis (Fully taxable equivalent)
Total interest-earning assets 6.01 % 5.99 % 5.54 %
Total interest-bearing liabilities 3.87 % 3.59 % 2.46 %
Net interest spread 2.14 % 2.40 % 3.08 %
Net interest margin 3.05 % 3.27 % 3.74 %
========================================================================== ==================== ====================================================================== ====================================================================== ==================================================
Capital ratios March 31, 2024 March 31, 2024 December 31, 2023 March 31, 2023
-------------------- ----------------------------------------------- ----------------------------------------------- -----------------------------------------------
Tier 1 risk-based capital ratio 13.08 % 12.84 % 12.42 %
Total risk-based capital ratio 14.55 % 14.31 % 13.94 %
Tier 1 leverage capital ratio 10.71 % 10.55 % 10.27 %
========================================================================== ==================== ====================================================================== ====================================================================== ==================================================
CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share data) March 31, 2024 March 31, 2024 December 31, 2023 December 31, 2023 March 31, 2023 March 31, 2023
---------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------- ----------------------------------------------------------------------------- ---------------------------------------------------------
Assets
Cash and due from banks $ $ 165,284 $ $ 173,988 $ $ 252,048
Short-term investments and interest bearing deposits 1,010,651 654,813 881,282
Securities available-for-sale (amortized cost of $1,783,915 at March 31, 2024, $1,726,080 at December 31, 2023 and $1,672,440 at March 31, 2023) 1,653,167 1,604,570 1,541,250
Loans held for sale 23,171 -- --
Loans 19,429,396 19,548,140 18,317,339
Less: Allowance for loan losses (154,589 ) (154,562 ) (144,884 )
Unamortized deferred loan fees, net Unamortized deferred loan fees, net (11,737 ) (10,720 ) (5,872 )
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Loans, net Loans, net 19,263,070 19,382,858 18,166,583
Equity securities 31,380 40,406 27,011
Federal Home Loan Bank stock 17,250 17,746 17,250
Other real estate owned, net 19,441 19,441 4,067
Affordable housing investments and alternative energy partnerships, net 330,912 315,683 316,475
Premises and equipment, net 90,454 91,097 93,204
Customers' liability on acceptances 17,074 3,264 6,547
Accrued interest receivable 97,937 97,673 82,420
Goodwill 375,696 375,696 375,696
Other intangible assets, net 4,131 4,461 5,564
Right-of-use assets- operating leases 31,698 32,076 29,906
Other assets 273,487 267,762 232,298
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Total assets $ $ 23,404,803 $ $ 23,081,534 $ $ 22,031,601
==================== ==================== ========== ==================== ==================== ==================== ============== ==================== ==================== ==================== ============== ====================
Liabilities and Stockholders' Equity
Deposits:
Non-interest-bearing demand deposits $ $ 3,289,539 $ $ 3,529,018 $ $ 3,748,719
Interest-bearing deposits:
NOW deposits 2,331,486 2,370,685 2,354,195
Money market deposits 3,117,557 3,049,754 3,014,500
Savings deposits 1,039,144 1,039,203 891,061
Time deposits 10,068,533 9,336,787 8,640,397
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Total deposits 19,846,259 19,325,447 18,648,872
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Advances from the Federal Home Loan Bank 265,000 540,000 360,000
Other borrowings for affordable housing investments 17,557 15,787 22,481
Long-term debt 119,136 119,136 119,136
Acceptances outstanding 17,074 3,264 6,547
Lease liabilities - operating leases 34,325 34,797 32,599
Other liabilities 327,380 306,528 299,627
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Total liabilities 20,626,731 20,344,959 19,489,262
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Stockholders' equity 2,778,072 2,736,575 2,542,339
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Total liabilities and equity $ $ 23,404,803 $ $ 23,081,534 $ $ 22,031,601
==================== ==================== ========== ==================== ==================== ==================== ============== ==================== ==================== ==================== ============== ====================
Book value per common share $ $ 38.22 $ $ 37.66 $ $ 35.12
Number of common shares outstanding 72,688,191 72,668,927 72,390,694
CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
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March 31, 2024 December 31, 2023 March 31, 2023
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(In thousands, except share and per share data)
Interest and Dividend Income
Loans receivable $ $ 302,528 $ $ 302,477 $ $ 261,179
Investment securities 14,951 14,885 11,764
Federal Home Loan Bank stock 431 392 304
Deposits with banks 14,732 15,509 12,139
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Total interest and dividend income 332,642 333,263 285,386
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Interest Expense
Time deposits 109,546 97,826 64,174
Other deposits 42,788 43,282 23,817
Advances from Federal Home Loan Bank 9,316 7,289 2,598
Long-term debt 1,721 1,759 1,443
Short-term borrowings 699 969 919
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Total interest expense 164,070 151,125 92,951
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Net interest income before provision for credit losses 168,572 182,138 192,435
Provision for credit losses 1,900 1,723 8,100
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Net interest income after provision for credit losses 166,672 180,415 184,335
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Non-Interest Income
Net (losses)/gains from equity securities (9,027 ) 8,950 4,853
Debt securities gains/(losses), net 1,107 -- (3,000 )
Letters of credit commissions 1,717 1,744 1,570
Depository service fees 1,550 1,423 1,832
Wealth management fees 5,638 4,820 3,897
Other operating income 5,626 6,164 5,092
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Total non-interest income 6,611 23,101 14,244
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Non-Interest Expense
Salaries and employee benefits 43,552 40,101 38,226
Occupancy expense 5,967 5,387 5,504
Computer and equipment expense 5,068 4,579 4,285
Professional services expense 6,992 8,279 7,406
Data processing service expense 3,929 3,718 3,724
FDIC and State assessments 6,089 14,358 3,155
Marketing expense 1,914 1,110 774
Other real estate owned expense 253 195 50
Amortization of investments in low income housing and alternative energy partnerships 14,432 26,119 15,594
Amortization of core deposit intangibles 339 251 250
Acquisition, integration and restructuring costs -- 671 --
Other operating expense 4,704 5,730 4,218
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Total non-interest expense 93,239 110,498 83,186
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Income before income tax expense 80,044 93,018 115,393
Income tax expense 8,609 10,492 19,386
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