Cathay General Bancorp (NASDAQ:CATY) Q2 2019 Earnings Conference Call Transcript
Jul 17, 2019 • 06:00 pm ET
Good afternoon, ladies and gentlemen, and welcome to Cathay General Bancorp's Second Quarter 2019 Earnings Conference Call. My name is Sherin, and I'll be your coordinator for today. [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, Investor Relations of Cathay General Bancorp.
Thank you, Sherin, and good afternoon. Here to discuss the financial results today are Mr. Pin Tai, Chief Executive Officer and President; and Mr. Heng Chen, Executive Vice President and Chief Financial Officer.
Before we begin, we wish to remind you that the speakers on 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, 2018, at Item 1A in particular, and in other 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 speaks 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 developments or events, except as required by law.
This afternoon, Cathay General Bancorp issued an earnings release outlining its second quarter 2019 results. To obtain a copy, please visit us at our website at www.cathaygeneralbancorp.com. After comments by management today, we will open up this call for questions.
I will now turn the call over to our Chief Executive Officer, Mr. Pin Tai.
Thank you, Georgia, and good afternoon. Welcome to our 2019 second quarter earnings conference call. This afternoon, we reported net income of $72.2 million for the second quarter of 2019, a 2% decrease when compared to a net income of $73.7 million for the second quarter of 2018. Diluted earnings per share was $0.90 for both the second quarter of 2019 and 2018. In the second quarter of 2019, our gross loans grew by $316.1 million to $14.6 billion or an increase of 9% on an annualized basis. The increase in loans for the second quarter of 2019 was primarily driven by the growth in residential mortgage loans of $163.4 million or 17.7% annualized. Commercial real estate loans of $56.7 million or 3.4% annualized and commercial loans of $36.8 million or 5.4% annualized. We anticipate loan growth in 2019 of between 7% to 8%.
For the second quarter of 2019, our total deposit increased $276.6 million or 8.1% annualized to $14.4 billion. The increase in deposit for the second quarter of 2019 was primarily driven by the growth in time deposits of $212.6 million or 12.2% annualized and money market deposits of $69.6 million or 13.7% annualized.