Cathay General Bancorp Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Reports Net Charge-Offs for the Fourth Quarter Ended December 31, 2013
January 24, 2014 at 03:00 am IST
Share
Cathay General Bancorp reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. For the quarter, the company's income before income tax expense was $49.988 million against $43.735 million a year ago. Net income available to common stockholders was $31.9 million or $0.40 per basic and diluted share compared to a net income available to common stockholders of $24.2 million or $0.31 per basic and diluted share for the same quarter a year ago. Increase in diluted per share is due primarily to decreases in cost associated with debt redemption, decreases in other real estate owned expenses, and decreases in amortization of core deposit intangibles offset by decreases in gains on sale of securities. Net interest income before provision for credit losses increased $0.897 million or 1.1%, to $82.0 million during the fourth quarter of 2013 compared to $81.1 million during the same quarter a year ago. The increase was due primarily to the decrease in interest expense from securities sold under agreements to repurchase offset by the decrease in interest income from investment securities. Return on average stockholders' equity was 8.70% and return on average assets was 1.19% for the quarter ended December 31, 2013, compared to a return on average stockholders' equity of 1.06% and a return on average assets of 6.97% for the same quarter a year ago.
For the full year, the company reported net interest income before provision for credit losses of $324.696 million against $321.3 million a year ago. Income before income tax expense was $194.170 million against $184.171 million a year ago. Net income attributable to common stockholders was $113.5 million or $1.43 per diluted share compared to net income attributable to common stockholders of $101.0 million or $1.28 per diluted share for the same period a year ago, Due primarily to increases in gains on sale of securities, decreases in OREO expenses, decreases in litigation expenses, and increases in commissions from wealth management, offset by decreases in the reversal for credit losses, increases in prepayment penalties on the prepayment of securities sold under an agreement to repurchase, increases in salaries and incentive compensation expense, increases in consulting expense, and increases in legal and collection expense. Return on average stockholders' equity was 8.00% and return on average assets was 1.17% for the year ended December 31, 2013, compared to a return on average stockholders' equity of 7.48% and a return on average assets of 1.11% for the year ended December 31, 2012. Book value per common share was $18.25 against $17.12 a year ago.
For the fourth quarter ended December 31, 2013, the company reported net charge-offs of $8.274 million against $1.363 million a year ago.
Cathay General Bancorp is the holding company of Cathay Bank, a California state-chartered commercial bank (the Bank). The Bank services individuals, professionals, and small to medium-sized businesses in the local markets in which its branches are located and provides commercial real estate loans, commercial loans, United States Small Business Administration loans, residential mortgage loans, real estate construction loans, home equity lines of credit, and installment loans to individuals for, household and other consumer expenditures. It offers products and services to businesses, such as checking and deposit, lines of credit, commercial and commercial real estate loans, merchant services and payment processing, treasury management services, international banking and financing services, and other customary banking services. It offers similar services that are available to consumers. It provides financial services to diverse commercial and professional businesses in its market areas.
Cathay General Bancorp Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Reports Net Charge-Offs for the Fourth Quarter Ended December 31, 2013