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Note 10 - Capital Resources
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Equity [Text Block]

10.         Capital Resources

 

Total equity was $2.85 billion as of December 31, 2024, an increase of $109.1 million, or 4.0%, from $2.74 billion at December 31, 2023, primarily due to net income of $286.0 million, stock based compensation of $6.0 million, proceeds from dividend reinvestment of $2.9 million, and stock issued to directors of $0.9 million, offset by common stock cash dividends of $98.0 million, purchases of treasury stock of $84.7 million, shares withheld related to net share settlement of RSU’s of $3.7 million, and other comprehensive loss of $0.2 million. The Company paid cash dividends of $1.36 per common share in 2024, $1.36 per common share in 2023, and $1.36 per common share in 2022.

 

On May 28th, 2024, the Company announced a new stock repurchase program to buy back up to $125.0 million of the Company's common stock.  The previous $125.0 million share repurchase program announced on May 26, 2022, was completed on February 21, 2023, with the repurchase of 2,897,628 shares at an average cost of $43.14. Through  December 31, 2024, the Company repurchased 2,028,581 shares of common stock for a total of $83.9 million, at an average cost of $41.37 per share under the May 2024 buyback program.

 

The five special purpose trusts established for the purpose of issuing the Capital Securities are considered variable interest entities.  Because the Bancorp is not the primary beneficiary of the trusts, the financial statements of the trusts are not included in the Consolidated Financial Statements of the Company. The Junior Subordinated Notes, all of which were issued before May 19, 2010, are currently included in the Tier 2 capital of the Bancorp for regulatory capital purposes.  Under the Dodd-Frank Act, trust preferred securities issued before May 19, 2010, by bank holding companies with assets of less than $15.0 billion as of December 31, 2009, continue to qualify for Tier 1 capital treatment. As of December 31, 2024, and 2023, the Company’s assets exceeded the $15.0 billion threshold and, as a result, the Junior Subordinated Notes no longer qualify as Tier 1 capital for regulatory reporting purposes.

 

The table below summarizes the outstanding Junior Subordinated Notes issued by the Company to each trust as of December 31, 2024, and 2023:

 

As of December 31, 2024

   

Principal

 

Not

 

Annualized

 

Current

 

Date of

Payable/

 

Issuance

 

Balance of

 

Redeemable

Stated

Coupon

 

Interest

 

Rate

Distribution

Trust Name

Date

 

Notes

 

Until

Maturity

Rate

 

Rate

 

Change

Date

(In thousands)

Cathay Capital Trust I

June 26,

 $20,619 

June 30,

June 30,

3-month

  8.02%

December 29,

March 30

 

2003

    

2008

2033

SOFR

    

2024

June 30

        

+ 3.15%

     

September 30

        

+ 0.26161%

     

December 30

               

Cathay Statutory Trust I

September 17,

  20,619 

September 17,

September 17,

3-month

  8.20%

December 16,

March 17

 

2003

    

2008

2033

SOFR

    

2024

June 17

        

+ 3.00%

     

September 17

        

+ 0.26161%

     

December 17

               

Cathay Capital Trust II

December 30,

  12,887 

March 30,

March 30,

3-month

  7.77%

December 29,

March 30

 

2003

    

2009

2034

SOFR

    

2024

June 30

        

+ 2.90%

     

September 30

        

+ 0.26161%

     

December 30

               

Cathay Capital Trust III

March 28,

  46,392 

June 15,

June 15,

3-month

  6.69%

December 15,

March 15

 

2007

    

2012

2037

SOFR

    

2024

June 15

        

+ 1.48%

     

September 15

        

+ 0.26161%

     

December 15

               

Cathay Capital Trust IV

May 31,

  18,619 

September 6,

September 6,

3-month

  6.66%

December 5,

March 6

 

2007

    

2012

2037

SOFR

    

2024

June 6

        

+ 1.40%

     

September 6

        

+ 0.26161%

     

December 6

Total Junior Subordinated Notes

 $119,136          

 

As of December 31, 2023

   

Principal

 

Not

 

Annualized

 

Current

 

Date of

Payable/

 

Issuance

 

Balance of

 

Redeemable

Stated

Coupon

 

Interest

 

Rate

Distribution

Trust Name

Date

 

Notes

 

Until

Maturity

Rate

 

Rate

 

Change

Date

(In thousands)

Cathay Capital Trust I

June 26,

 $20,619 

June 30,

June 30,

3-month

  8.81%

December 29,

March 30

 

2003

    

2008

2033

SOFR

    

2023

June 30

        

+ 3.15%

     

September 30

        

+ 0.26161%

     

December 30

               

Cathay Statutory Trust I

September 17,

  20,619 

September 17,

September 17,

3-month

  8.67%

December 17,

March 17

 

2003

    

2008

2033

SOFR

    

2023

June 17

        

+ 3.00%

     

September 17

        

+ 0.26161%

     

December 17

               

Cathay Capital Trust II

December 30,

  12,887 

March 30,

March 30,

3-month

  8.56%

December 29,

March 30

 

2003

    

2009

2034

SOFR

    

2023

June 30

        

+ 2.90%

     

September 30

        

+ 0.26161%

     

December 30

               

Cathay Capital Trust III

March 28,

  46,392 

June 15,

June 15,

3-month

  7.15%

December 14,

March 15

 

2007

    

2012

2037

SOFR

    

2023

June 15

        

+ 1.48%

     

September 15

        

+ 0.26161%

     

December 15

               

Cathay Capital Trust IV

May 31,

  18,619 

September 6,

September 6,

3-month

  7.06%

December 5,

March 6

 

2007

    

2012

2037

SOFR

    

2023

June 6

        

+ 1.40%

     

September 6

        

+ 0.26161%

     

December 6

Total Junior Subordinated Notes

  $119,136