Cathay General Bancorp (NASDAQ:CATY) Q2 2020 Earnings Conference Call - Final Transcript

Jul 27, 2020 • 06:00 pm ET

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Cathay General Bancorp (NASDAQ:CATY) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen, and welcome to the Cathay General Bancorp Second Quarter 2020 Earnings Conference Call. My name is Val, and I'll be your coordinator for today. At this time, all participants are in listen-only mode. 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 let's turn the call over to Georgia Lo, Investor Relations of Cathay General Bancorp. You may begin.

Executive
Georgia Lo

Thank you, Valerie, and good afternoon. Here to discuss the financial results today are Mr. Pin Tai, our Chief Executive Officer; Mr. Chang Liu, Cathy Bank's President and Chief Operating Officer; and Mr. Heng Chen, our 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, 2019, at Item 1A in particular, and another 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. Any forward-looking statements speaks only as of the date on which it is made, and except as required by law, we undertake no obligation to update or review any forward-looking statements to reflect future circumstances, developments or events or the occurrence of unanticipated events.

And this afternoon, Cathay General Bancorp issued an earnings release outlining its second quarter 2020 results. To obtain a copy of our earnings release as well as our second quarter earnings presentation, please visit our website at cathaybank -- cathaygeneralbancorp.com. After comments from management today, we will open this call up for questions.

I will now turn the call over to our Chief Executive Officer, Mr. Pin Tai.

Executive
Pin Tai

Thank you, Georgia, and good afternoon. Welcome to our 2020 second quarter earnings conference call. While we acknowledge our second quarter operating results, our commitment and focus today is on continuing to support our clients, team members and communities during the COVID-19 pandemic.

This afternoon, we reported net income of the $54.3 million for the second quarter of 2020, a 24.8% decrease, when compared to a net income of $72.2 million for the second quarter of 2019. Diluted earnings per share decreased 24.4% to $0.68 per share for the second quarter of 2020, compared to $0.90 per share for the same quarter a year ago. In the second quarter of 2020, our gross loans grew by $74.1 million to $15.6 billion or an increase of 1.9% on an annualized basis. The increase in loans for the second quarter of 2020 was primarily driven by the origination of $261.7 million of Paycheck