EX-99.2 3 a53290481ex_992.htm EXHIBIT 99.2
Exhibit 99.2
Financial Earnings Results Fourth Quarter and Full Year 2022 January 25, 2023

Forward Looking Statements This presentation contains forward-looking statements about Cathay General Bancorp and its subsidiaries (collectively referred to herein as the “Company,” “we,” “us,” or “our”) within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provision for forward-looking statements in these provisions. Statements that are not historical or current facts, including statements about beliefs, expectations and future economic performance, are “forward-looking statements” and are based on the information available to, and estimates, beliefs, projections, and assumptions made by, management as of the date on which such statements are first made. Forward-looking statements are not guarantees of future performance and are subject to inherent risks and uncertainties that could cause actual results to differ materially from those anticipated in the statements. These risks and uncertainties include, but are not limited to: 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; the impact on our business, operations, financial condition, liquidity, results of operations, prospects and trading prices of our shares arising out of the COVID-19 pandemic; 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 supervisory action by bank supervisory authorities; increased costs of compliance and other risks associated with changes in regulation; 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; environmental liabilities; our ability to generate anticipated returns from our investments and/or financings in certain tax advantaged-projects; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; natural disasters, public health crises (including the occurrence of a contagious disease or illness, such as the COVID-19 pandemic) and geopolitical events; failures, interruptions, or security breaches of our information systems; our ability to adapt our systems to the expanding use of technology in banking; adverse results in legal proceedings; 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; capital level requirements and successfully raising additional capital, if needed, and the resulting dilution of interests of holders of our common stock; and the soundness of other financial institutions. For a discussion of these and other risks that may cause actual results to differ from expectations, please see our Annual Report on Form 10-K (at Item 1A in particular) for the year ended December 31, 2021 and all subsequent reports and filings we make with the Securities and Exchange Commission under the applicable provisions of the Securities Exchange Act of 1934. 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 first made and, except as required by law, we undertake no obligation to update or review any forward-looking statements to reflect circumstances, developments or events occurring after the date on which the statement is first made or to reflect the occurrence of unanticipated events. 2

Financial Highlights 4Q 2022 Quarterly results ending December 31, 2022 Net Income $97.6 million Diluted EPS $1.33 Total Revenue $213.9 million Total Loans $18.3 billion Total Deposits $18.5 billion Efficiency Ratio 37.97% 3 * Refer to GAAP to non-GAAP reconciliation in Appendix.

Summary Highlights: 4Q and Full Year 2022 Results 4 Note: Information as of 12.31.22 and 9.30.22 are unaudited. * Gross Loans, net of fees

Summary Balance Sheets 5 Note: Information as of 12.31.22 and 9.30.22 is unaudited.

Loan Composition Total Loan Portfolio $18.3 billion* as of 12.31.22 Total CRE $8.8 billion Residential Mortgage** $5.6 billion C&I Loans $3.3 billion Construction Loans $0.6 billion Paycheck Protection Program $3 million 6 * Includes Day 1 loan balance of $646 million acquired through the HSBC Bank USA, N.A. West Coast mass retail banking operations on February 7, 2022. ** Residential Mortgage includes equity lines, installment and other loans.

Commercial Real Estate Portfolio Total CRE $8.8 billion 48% of total loans 7 * Residential Mortgage includes equity lines, installment and other loans.

LTV & Size by Property Type Commercial Real Estate Portfolio 8

Selected CRE and Construction Loan Portfolios weighted avg. LTV 54% weighted avg. LTV 50% weighted avg. LTV 56% 9

Geographic Distribution of Residential Mortgage Residential Mortgage Portfolio 10 * Residential Mortgage includes equity lines, installment and other loans.

Allowance for Loan and Lease Losses (ALLL) 11

Asset Quality Metrics Allowance coverage of loans HFI: 0.80% as of 12/31/22 vs.0.82% as of 9/30/22. Nonaccrual loans/loans HFI: 0.38% as of 12/31/22 and 9/30/22 vs. 0.40% as of 12/31/21. Classified Loans are loans classified as substandard and doubtful. 12 Non-Performing Assets (NPA) = Non-accrual Loans + OREO

Deposit Mix Total Deposits $18.5 billion* as of 12.31.22 13 * Includes Day 1 deposit balance of $575 million acquired through the HSBC Bank USA, N.A. West Coast mass retail banking operations on February 7, 2022.

Summary Income Statements 14 Note: Information for quarter ending 12.31.22 and 9.30.22 is unaudited.

Loan Yields, Deposit Costs and Net Interest Margins 15

Non-Interest Income 16 $ in millions Non-Interest Income* * Non-interest income excludes net gains/(losses) from equity securities.

Operating Expense & Efficiency 17

Strong Capital Ratios Capital Ratio well above regulatory standards that continues to place Cathay in the “well capitalized” category, calculated under the Basel III capital rules. Book Value Per Common Share is $34.01 as of 12.31.22: +3.19% compared to 9.30.22 and +5.33% YoY. Tangible Book Value* Per Common Share is $28.77 as of 12.31.22: +3.68% compared to 9.30.22 and +5.31% YoY. Capital Return on Shareholder common stock dividend: $0.34/share quarterly, or $1.36/share annualized. stock buyback: purchased 693,000 shares at avg. cost of $45.52/sh. in fourth quarter. 18 * Refer to GAAP to non-GAAP reconciliation in Appendix.

Management Guidance Full Year 2023 19 Full Year 2023 Guidance Compared with 2022 Actual Full Year 2022 Actual Loans, end of period Estimated growth rate 3% to 5% $18.3 billion +11.7% YoY Deposits Estimated growth rate 3% to 5% $18.5 billion +2.5% YoY Core Noninterest Expense Estimated growth rate 3.5% $255.3 million +7.3% YoY NIM Estimated to range between 3.75% and 3.85% 3.63% Tax Rate Effective tax rate for 2023 estimated between 17.5% and 18.5%. Solar amortization estimated to be $10 million for each of the first three quarters or 2023. Effective tax rate for the full year was 23.68%. Solar amortization year to date was $6.2 million. The guidance provided above is based on a number of assumptions that management believes to be reasonable and reflects our expectations as of the date of this presentation. Actual results may differ materially from these estimates as a result of various factors, and we refer to the cautionary language regarding “forward-looking statements” included in this presentation when considering this information.

Appendix

We use certain non-GAAP financial measures to provide supplemental information regarding our 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 more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, we have included them below for discussion. Appendix: GAAP to Non-GAAP Reconciliation Selected Consolidation Financial Information ($ in thousands) (unaudited) 21