Research Desk Line-up: California First National Post Earnings Coverage
LONDON, UK / ACCESSWIRE / November 20, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Cathay General Bancorp (NASDAQ: CATY) ("Cathay"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=CATY, following the Company's posting of its financial results on October 25, 2017, for the third quarter of the fiscal year 2017. The Bank's revenues and adjusted EPS surpassed analysts' expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Regional - Pacific Banks industry. Pro-TD has currently selected California First National Bancorp (NASDAQ: CFNB) for due-diligence and potential coverage as the Company reported on October 24, 2017, its financial results for Q1 FY18 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on California First National when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CATY; also brushing on CFNB. With the links below you can directly download the report of your stock of interest free of charge at:
For the three months ended September 30, 2017, Cathay's revenues were $167 million. For the reported quarter, the Company's adjusted revenues increased 29.8% to $146.16 million from $112.64 million in Q3 FY16. The adjusted revenue numbers surpassed analysts' expectations of $137.7 million.
During Q3 FY17, Cathay's total interest and dividend income increased 24.1% to $154.08 million from $124.16 million in the same period of last year. For the reported quarter, the Company's total interest expenses increased 2.7% to $20.88 million from $20.33 million in the third quarter of 2016. For the reported quarter, the Company's net interest income increased 28.3% to $133.20 million from $103.82 million in Q3 FY16.
During Q3 FY17, the Company's net interest margin was 3.75% compared to 3.36% in the third quarter of 2016. The increase was due to interest recoveries and prepayment penalties.
During Q3 FY17, Cathay's total non-interest income increased 47.1% to $12.96 million from $8.81 million in the comparable period of last year. The increase was due to a gain from the acquisition of $5.4 million recorded in the third quarter. For the reported quarter, the Company's salaries and employee benefits expenses increased 22% to $27.91 million from $22.88 million in the third quarter of 2016. During Q3 FY17, the Company's marketing expenses increased 38.7% to $2.10 million from $1.52 million in Q3 FY16. For the reported quarter, the Company's total non-interest expenses increased 20.7% to $61.25 million from $50.74 million in the third quarter of 2016. The increase was due to a $5 million increase in salary and employee benefit expenses primarily due to the acquisition of Far East National Bank and $3.3 million of acquisition-related expenses.
During Q3 FY17, Cathay's earnings before interest and taxes (EBIT) increased 37.2% to $84.91 million from $61.90 million in the corresponding period of last year.
For the reported quarter, Cathay's net income increased 7.9% to $49.75 million on a y-o-y basis from $46.09 million in Q3 FY16. During Q3 FY17, the Company's diluted earnings per share (EPS) increased 5.2% to $0.61 on a y-o-y basis from $0.58 in the same period of last year. During Q3 FY17, the Company's adjusted diluted EPS was $0.64, surpassing analysts' expectations of $0.60.
During Q3 FY17, Cathay's non-performing assets increased 34% to $87.37 million from $65.35 million in the comparable period of last year. For the reported quarter, the Company's allowance for loan losses increased 3% to $121.54 million from $117.94 million in Q3 FY16.
For the reported quarter, the Company's allowance for loan losses to gross loans ratio was 0.96% compared to 1.07% in Q3 FY16.
As on September 30, 2017, Cathay's cash and due from banks decreased 23% to $167.89 million from $218.02 million as on December 31, 2016. For the reported quarter, the Company's long-term debt was at par with the $119.14 million of Q4 FY16.
For the reported quarter, the Company's net loans increased 12.6% to $12.47 billion from $11.08 billion in the fourth quarter of 2016. For the reported quarter, the Company's total deposits increased 7.6% to $12.56 billion from $11.67 billion in Q4 FY16.
During Q3 FY17, Cathay's return on average assets ratio was 1.29% compared to 1.38% in the corresponding period of last year. For the reported quarter, the Company's efficiency ratio was 41.91% compared to 45.05% in the third quarter of 2016.
For the reported quarter, the Company's common Equity Tier 1 capital ratio was 12.18% compared to 12.64% in Q3 FY16.
On October 27, 2017, Cathay completed the bank merger between Far East National Bank and Cathay Bank. As a result of the merger, Far East National Bank was merged with and into Cathay Bank, with Cathay Bank remaining as the surviving entity.
On Friday, November 17, 2017, the stock closed the trading session at $41.25, advancing 1.43% from its previous closing price of $40.67. A total volume of 371.11 thousand shares have exchanged hands, which was higher than the 3-month average volume of 356.29 thousand shares. Cathay General Bancorp's stock price surged 18.13% in the last three months, 12.12% in the past six months, and 17.42% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 8.47%. The stock is trading at a PE ratio of 16.78 and has a dividend yield of 2.04%. At Friday's closing price, the stock's net capitalization stands at $3.29 billion.
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