Cathay General Bancorp (NASDAQ:CATY) Q1 2017 Earnings Conference Call - Final Transcript
Apr 19, 2017 • 06:00 pm ET
Good afternoon, ladies and gentlemen, and welcome to the Cathay General Bancorp's First Quarter 2017 Earnings Conference Call. My name is Sherry and I'll be your coordinator for today. [Operator Instructions] Following the prepared remarks, there will be a question-and-answer session. [Operator Instructions] Today's call is being recorded and will be available for replay at www.cathaygeneralbancorp.com.
Now, I would like to turn the call over to Georgia Lo of Cathay General Bancorp.
Thank you, Sherry and good afternoon everyone. Here to discuss the financial results today are Mr. Pin Tai, our Chief Executive Officer and President; and Mr. Heng Chen, our Executive Vice President and Chief Financial Officer.
Before we begin, we wish to remind you that the speakers of this call may make forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995 concerning future results and events and that these statements are subject to certain risks and uncertainties that could cause actual results to differ materially.
These risks and uncertainties are further described in the Company's annual report on Form 10-K for the year ended December 31, 2016 at item 1A in particular and in the reports and filings with the Securities and Exchange Commission from time to time. As such, we caution you not to place undue reliance on such forward-looking statements which speak only as of the date of this presentation. We undertake no obligation to update any forward-looking statements or to publicly announce any revision of any forward-looking statements to reflect future development or events, except as required by law.
This afternoon Cathay General Bancorp issued its earnings release outlining its first quarter 2017 results. To obtain a copy, please visit our website at www.cathaygeneralbancorp.com. After comments by management today, we will open up this call for questions.
And now I will turn the call over to our Chief Executive Officer and President, Mr. Pin Tai.
Thank you, Ms. Georgia and good afternoon. Welcome to our 2017 first quarter earnings conference call. This afternoon, we reported net income of $48.9 million for the first quarter of 2017, a 6% increase when compared to a net income of $46.2 million for the first quarter of 2016. Diluted earnings per increased 7% to $0.61 per share for the first quarter of 2017 compared to $0.57 per share for the same quarter a year ago.
In the first quarter of 2017, our gross loans, excluding loans held for sale, grew by $164 million to $11.4 billion or an increase of 6% on an annualized basis. The increase in loan for the first quarter of 2017 resulted primarily from residential and commercial mortgage loans, which grew by $140 million, or 23% annualized, and $121 million or 8% annualized respectively.
Commercial loans decreased by $96 million, or 17% annualized. We did anticipate organic loan growth in 2017 to be around 7% to 8%. For the first quarter of 2017, our total deposits decreased $87 million to $11.6 billion as we reduced broker and