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CATY » Topics » Non-Interest Income

This excerpt taken from the CATY 10-Q filed May 8, 2009.

Non-Interest Income

Non-interest income, which includes revenues from depository service fees, letters of credit commissions, securities gains (losses), gains (losses) on loan sales, wire transfer fees, and other sources of fee income, was $27.7 million for the first quarter of 2009, an increase of $21.2 million compared to the non-interest income of $6.5 million for the first quarter of 2008. The increase in non-interest income was primarily due to increases in net gains on sale of available-for-sale securities of $22.5 million. Offsetting the increase were a $947,000 decrease in venture capital income, included in other operating income, primarily due to write-downs on venture capital investments.

This excerpt taken from the CATY 10-K filed Mar 2, 2009.

Non-interest Income

 

Non-interest income was $18.9 million for 2008, $27.5 million for 2007, and $21.5 million for 2006. Non-interest income includes depository service fees, letters of credit commissions, securities gains (losses), gains (losses) from loan sales, gains from sale of premises and equipment, and other sources of fee income. These

 

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other fee-based services include, among other things, wire transfer fees, safe deposit fees, fees on loan-related activities, fee income from our Wealth Management division, and foreign exchange fees.

 

The decrease of $8.6 million, or 31.2%, from 2007 to 2008 in non-interest income was primarily due to the following items:

 

  •  

An other-than-temporary impairment charge of $35.3 million on agency preferred securities;

 

  •  

A $2.7 million decrease in gains on sale of premises and equipment due to the sale of a former branch building in September 2007;

 

  •  

A $1.0 million other-than-temporary impairment write-down of our investment in the common stock of Broadway Financial Corporation in 2008 compared to other-than-temporary impairment write-down of $746,000 in 2007;

 

  •  

Venture capital income decreased $646,000 due to lower realized gains, commissions from Wealth Management decreased $587,000, other fees on loans decreased $517,000; wire transfer fees decreased $431,000, and commissions on letters of credit declined $338,000 all as a result of lower transaction volume;

 

  •  

The above decreases were partially offset by a $28.5 million increase in gains on sales of securities and by a $4.3 million increase in commissions from foreign exchange and currency transactions.

 

The increase of $6.0 million, or 28.1%, from 2006 to 2007 in non-interest income was primarily due to the following items:

 

  •  

Gains on sale of premises and equipment of $2.7 million in 2007 due to the sale of a property housing a former branch;

 

  •  

Venture capital and warrant income increased $784,000 in 2007 as a result of distributions from investments in limited partnerships;

 

  •  

Gains on sale of securities increased $609,000 due primarily to the sale of agency mortgage backed securities during the fourth quarter of 2007;

 

  •  

Wealth management commissions increased $563,000 due to increased volumes, and commissions on safe deposit boxes increased $390,000 due to the additions of new branches;

 

  •  

The above increases were partially offset by a $746,000 other-than-temporary impairment write-down of our investment in the common stock of Broadway Financial Corporation.

 

The Bank purchased preferred stock issued by Freddie Mac and Fannie Mae of $5.0 million in 2000, $20.0 million in 2001, $23.0 million in December, 2007, and $1.4 million in January, 2008. As of December 31, 2008, the Bank held three issues of preferred stock of Freddie Mac with total par value of $20.0 million and two issues of preferred stock of Fannie Mae with a total par value of $19.4 million. As of December 31, 2008, the Bank held agency preferred stock with a carrying value of $783,000. These agency securities have a perpetual life and after an initial fixed rate period, the dividend on each issue of preferred stock is repriced based on a spread over a specific index such as LIBOR or the two-year Treasury Note. The Bank recognized an other-than-temporary impairment loss of $5.5 million in 2004, $115,000 in 2005, and $35,000 in 2006 to write down the value of these securities to their respective fair values as of December 31, 2005. In March 2007, the Bank sold its Freddie Mac preferred stock that was purchased in March 2001 with carrying value of $7.6 million and recorded a gain of $2.2 million. In September 2008, the Federal Housing Finance Agency placed Fannie Mae and Freddie Mac under receivership and suspended indefinitely the payment of future dividends on their issues of preferred stock. In light of these developments, the Bank recognized an additional other-than-temporary impairment loss of $35.3 million in 2008 to write down the value of these securities to their respective fair values as of December 31, 2008. The Bancorp purchased 70,000 common stock shares of Broadway Financial Corporation in 2004 and purchased an 145,000 additional shares in 2006 for a total of $2.6 million. Based on the market value and near-

 

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term prospects of the issuer, the Bancorp recorded an other-than-temporary impairment charge of $746,000 in 2007 and $1.0 million in 2008 to write down the value of the common stock of Broadway Financial Corporation to market. As of December 31, 2008, the net carrying value of Broadway Financial Corporation common stock was $826,000.

 

This excerpt taken from the CATY 10-K filed Feb 29, 2008.

Non-interest Income

 

Non-interest income was $27.5 million for 2007, $21.5 million for 2006, and $22.5 million for 2005. Non-interest income includes depository service fees, letters of credit commissions, securities gains (losses), gains (losses) from loan sales, gains from sale of premises and equipment and other sources of fee income. These other fee-based services include, among other things, wire transfer fees, safe deposit fees, fees on loan-related activities, fee income from the Company’s Wealth Management division, and foreign exchange fees.

 

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The increase of $6.0 million, or 28.1%, from 2006 to 2007 in non-interest income was primarily due to the following items:

 

  •  

Gains on sale of premises and equipment of $2.7 million in 2007 due to the sale of a property housing a former branch;

 

  •  

Venture capital and warrant income increased $784,000 in 2007 as a result of partnership distributions;

 

  •  

Gains on sale of securities increased $609,000 due primarily to the sale of agency mortgage backed securities during the fourth quarter of 2007;

 

  •  

Wealth management commissions increased $563,000 due to increased volumes, and commissions on safe deposit box increased $390,000 due to the additions of new branches;

 

  •  

The above increases were partially offset by a $746,000 other-than-temporary impairment write-down of the Company’s investment in the common stock of Broadway Financial Corporation.

 

The decrease of $1.0 million, or 4.5%, from 2005 to 2006 in non-interest income was primarily due to the following items:

 

  •  

Net securities gains of $1.5 million in 2005 compared to net securities gains of $0.2 million in 2006;

 

  •  

Gains on sale of premises and equipment of $958,000 in 2005 due to the sale of the land and building for a closed branch compared to none during 2006;

 

  •  

Depository service fees decreased $828,000 primarily due to the reclassification of certain wire transfer fees from depository service fees to other operating income in 2006; and

 

  •  

The above decreases were partially offset by increases (due mainly to the acquisition of Great Eastern Bank) of $1.2 million, or 29.1%, in letter of credit commissions, of $531,000, or 13.9% in wire transfer commissions, of $357,000, or 25.2%, in safe deposit box commissions and of $258,000, or 44.1%, in cashier check rebate commissions.

 

In 2000 and 2001, the Bank purchased three issues of preferred stock issued by Freddie Mac with a total par value of $20.0 million and one issue of preferred stock issued by Fannie Mae with a total par value of $5.0 million. These agency securities have a perpetual life and after an initial fixed rate period, the dividend on each issue of preferred stock is repriced based on a spread over a specific index such as LIBOR or the two-year Treasury Note. In 2004 and 2006, the Bancorp purchased 215,000 common stock shares of Broadway Financial Corporation for $2.6 million. Based on an evaluation of the length of time and extent to which the market value of these stock securities have been less than market and the financial condition and near-term prospects of the issuers, the Bank recorded other-than-temporary impairment charges of $35,000 in 2006 and $115,000 in 2005 and the Bancorp recorded an other-than-temporary impairment charge of $746,000 in 2007 to write down the value of these securities to market. In the first quarter of 2007, the Bank sold 200,000 shares of its Freddie Mac preferred stock which had been written down by $2.4 million in 2004 and recorded a gain of $2.2 million.

 

This excerpt taken from the CATY 10-K filed Mar 1, 2007.

Non-interest Income

 

Non-interest income was $21.5 million for 2006, $22.5 million for 2005, and $16.3 million for 2004. Non-interest income includes depository service fees, letters of credit commissions, securities sales, loan sales, and other sources of fee income. These other fee-based services include, among other things, wire transfer fees, safe

 

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deposit fees, fees on loan-related activities, fee income from the Company’s Wealth Management division, and foreign exchange fees.

 

The decrease of $1.0 million, or 4.5%, from 2005 to 2006 in non-interest income was primarily due to the following items:

 

  •  

Net securities gains of $1.5 million in 2005 compared to net securities gains of $0.2 million in 2006;

 

  •  

Gains on sale of premises and equipment of $958,000 in 2005 due to the sale of the land and building for a closed branch compared to none during 2006;

 

  •  

Depository service fees decreased $828,000 primarily due to the reclassification of certain wire transfer fees from depository service fees to other operating income in 2006; and

 

  •  

The above decreases were partially offset by increases (due mainly to the acquisition of Great Eastern Bank) of $1.2 million, or 29.1%, in letter of credit commissions, of $531,000, or 13.9% in wire transfer commissions, of $357,000, or 25.2%, in safe deposit box commission and an increase of $258,000, or 44.1%, in cashier check rebate commissions.

 

The increase of $6.2 million, or 38.3%, from 2004 to 2005 in non-interest income was primarily due to the following items:

 

  •  

Net securities gains of $1.5 million in 2005 compared to net securities losses of $4.0 million in 2004. In 2004, the Company recorded a non-cash charge of $5.5 million, or $3.2 million net of tax, for “other-than-temporary impairment” on perpetual floating-rate preferred securities issued by government sponsored enterprises compared to “other-than-temporary” impairment charges of $142,000 during 2005;

 

  •  

Gains on sale of premises and equipment increased $934,000 in 2005 due to the sale of the land and building for a closed branch;

 

  •  

An increase in other operating income of $1.2 million, or 13.3%, to $10.2 million in 2005 from $9.0 million in 2004 due primarily to increases in the valuation of the Company’s portfolio of warrants of $706,000, investment services commission income of $509,000, and higher cashier check commissions of $354,000; and

 

  •  

The above increases were offset by a decrease of $550,000, or 11.6%, in letter of credit commissions in 2005 due primarily to lower letter of credit volumes and the amortization during 2005 of all standby letter of credit fees received, whereas, prior to 2005 only fees above $10,000 were amortized; and by a decrease of $819,000, or 12.7%, in depository service fees in 2005 due to decreases in wire transfer charges and the increases in short term interest rates which resulted in lower account analysis fees collected from depositors.

 

In 2000 and 2001, the Bank purchased three issues of preferred stock issued by Freddie Mac with a total par value of $20.0 million and one issue of preferred stock issued by Fannie Mae with a total par value of $5.0 million. These securities have a perpetual life and after an initial fixed rate period, the dividend on each issue of preferred stock is repriced based on a spread over a specific index such as LIBOR or the two-year Treasury Note. Based on an evaluation of the length of time and extent to which the market value of these preferred stock securities have been less than market and the financial condition and near-term prospects of the issuers, the Bank recorded other-than-temporary impairment charges of $5.5 million in 2004, $115,000 in 2005 and $35,000 in 2006 to write down the value of these securities to market.

 

 

This excerpt taken from the CATY 8-K filed Jan 25, 2007.

Non-interest income

          Non-interest income, which includes revenues from depository service fees, letters of credit commissions, securities gains (losses), gains (losses) on loan sales, wire transfer fees, and other sources of fee income, was $5.23 million for the fourth quarter of 2006, an increase of $53,000, compared to the non-interest income of $5.18 million for the fourth quarter of 2005.

          For the fourth quarter of 2006, the Company recorded net securities losses of $35,000 compared to net securities gains of $183,000 for the same quarter in 2005.

          Depository service fees decreased $110,000, or 8.6%, from $1.3 million in the fourth quarter of 2005 to $1.2 million in the fourth quarter of 2006 due primarily to the reclassification of certain wire transfer fees from depository service fees to other operating income in 2006. 

          The above decreases were partially offset by the increase in letters of credit commissions. Letters of credit commissions increased $262,000, or 23.8%, from $1.1 million in the fourth quarter of 2005 to $1.4 million in the fourth quarter of 2006 due primarily to increases in export letters of credit commissions and acceptance commissions due in part to the acquisition of GEB. 

          In addition, other operating income increased $119,000, or 4.5%, from $2.6 million in the fourth quarter of 2005 to $2.7 million in the fourth quarter of 2006.  During the fourth quarter of 2006, wire transfer fees increased $390,000 partly due to the reclassification from depository service fees mentioned above, wealth management commissions increased $272,000 and safe deposit box fees increased $131,000 compared to those during the fourth quarter of 2005.  These increases in other operating income were partially offset by a $512,000 decrease in warrant mark-to-market income and a $171,000 increase in writedowns on venture capital investments. 

This excerpt taken from the CATY 10-Q filed Nov 8, 2006.

Non-Interest Income

Non-interest income, which includes revenues from depository service fees, letters of credit commissions, securities gains (losses), gains (losses) on loan sales, wire transfer fees, and other sources of fee income, was $5.4 million for the third quarter of 2006, a decrease of $449,000, or 7.7%, compared to the non-interest income of $5.9 million for the third quarter of 2005.

Depository service fees decreased $312,000, or 21.5%, from $1.4 million in the third quarter of 2005 to $1.1 million in the third quarter of 2006 due primarily to the reclassification of certain wire transfer fees from depository service fees to other operating income in 2006. 

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Other operating income decreased $558,000, or 17.6%, from $3.2 million in the third quarter of 2005 to $2.6 million in the third quarter of 2006 primarily due to the decrease in warrant mark-to-market income of $485,000, the decrease in wealth management commissions of $292,000, and venture capital investment write-downs of $257,000.  Offsetting the decreases were a $204,000 increase in wire transfer fees due to the acquisition of GEB, a $105,000 increase in safe deposit box commission and a $130,000 increase in other loan fees.

The above decreases were partially offset by the increase in letters of credit commissions.  Letters of credit commissions increased $384,000, or 36.3%, to $1.4 million in the third quarter of 2006 from $1.1 million in the third quarter of 2005 primarily due to a $136,000 increase in standby letter of credit commissions and a $104,000 increase in export letter of credit commissions.

This excerpt taken from the CATY 8-K filed Oct 19, 2006.

Non-interest income

          Non-interest income, which includes revenues from depository service fees, letters of credit commissions, securities gains (losses), gains (losses) on loan sales, wire transfer fees, and other sources of fee income, was $5.4 million for the third quarter of 2006, a decrease of $449,000, or 7.7%, compared to the non-interest income of $5.9 million for the third quarter of 2005.

          Depository service fees decreased $312,000, or 21.5%, from $1.4 million in the third quarter of 2005 to $1.1 million in the third quarter of 2006 due primarily to the reclassification of certain wire transfer fees from depository service fees to other operating income in 2006. 

          Other operating income decreased $558,000, or 17.6%, from $3.2 million in the third quarter of 2005 to $2.6 million in the third quarter of 2006 primarily due to the decrease in warrant mark-to-market income of $485,000, the decrease in wealth management commissions of $292,000, and venture capital investment write-downs of $257,000.  Offsetting the decreases were a $204,000 increase in wire transfer fees due to the acquisition of GEB, a $105,000 increase in safe deposit box commission and a $130,000 increase in other loan fees.

          The above decreases were partially offset by the increase in letters of credit commissions.  Letters of credit commissions increased $384,000, or 36.3%, to $1.4 million in the third quarter of 2006 from $1.1 million in the third quarter of 2005 primarily due to a $136,000 increase in standby letter of credit commissions and a $104,000 increase in export letter of credit commissions.

This excerpt taken from the CATY 10-Q filed Aug 9, 2006.

Non-Interest Income

Non-interest income, which includes revenues from service charges on deposit accounts, letters of credit commissions, securities gains (losses), gains (losses) on loan sales, wire transfer fees, and other sources of fee income, was $5.8 million for the second quarter of 2006, an increase of $312,000, or 5.7%, compared to the non-interest income of $5.4 million for the second quarter of 2005.

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Letter of credit commissions increased $536,000, or 53.6%, to $1.5 million in the second quarter of 2006 from $1.0 million in the second quarter of 2005 primarily due to a $327,000 increase in standby letter of credit commissions and a $105,000 increase in export letter of credit commissions.

Service charges on deposit accounts decreased $147,000, or 10.6%, from $1.4 million in the second quarter of 2005 to $1.2 million in the second quarter of 2006 due primarily to the reclassification of certain wire transfer fees from depository service fees to other operating income in 2006. 

Other operating income increased $855,000, or 37.1%, from $2.3 million in the second quarter of 2005 to $3.2 million in the second quarter of 2006 primarily due to the increase in wealth management commissions of $345,000, increase in fees on safe deposit boxes and commissions on cashier checks of $189,000, and the increase in wire transfer fees of $156,000 due to the acquisition of GEB. 

The above increases were offset by the decrease in securities gains.  For the second quarter of 2006, the Company recorded $187,000 of securities losses compared to $745,000 of securities gains recorded in the same quarter a year ago. 

This excerpt taken from the CATY 10-Q filed May 10, 2006.

Non-Interest Income

Non-interest income, which includes revenues from service charges on deposit accounts, letters of credit commissions, securities gains (losses), gains (losses) on loan sales, wire transfer fees, and other sources of fee income, was $5.1 million for the first quarter of 2006, a decrease of $938,000, or 15.6%, compared to the non-interest income of $6.0 million for the first quarter of 2005.

Other operating income increased $1.0 million, or 48.8%, from $2.1 million in the first quarter of 2005 to $3.2 million in the first quarter of 2006 primarily due to increases in warrant gains of $522,000,  wealth management commissions of $270,000 and the reclassification of wire transfer fees. 

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The above increases were offset by the decrease of gain on sale of premises and equipment, the decrease of securities gains and the decrease of depository service fees.  For the first quarter of 2006, the Company recorded no gain on sale of premises and equipment compared to net gain on sale of premises and equipment of $958,000 for the same quarter in 2005.  The Company also recorded $422,000 of securities losses in the first quarter of 2006 compared to $377,000 of securities gains recorded in the same quarter a year ago.  Depository service fees decreased $256,000, or 16.9%, from $1.5 million in the first quarter of 2005 to $1.3 million in the first quarter of 2006 due primarily to the reclassification of certain wire transfer fees from depository service fees to other operating income in 2006. 

This excerpt taken from the CATY 10-K filed Mar 16, 2006.

Non-interest Income

 

Non-interest income was $22.5 million for 2005, $16.3 million for 2004, and $23.0 million for 2003. Non-interest income includes deposit service fees, letters of credit commissions, securities sales, loan sales, and other sources of fee income. These other fee-based services include, among other things, wire transfer fees, safe deposit fees, fees on loan-related activities, fee income from the Company’s Wealth Management division, and foreign exchange fees.

 

The increase of $6.2 million, or 38.3%, from 2004 to 2005 in non-interest income was primarily due to the following items:

 

  •   Net securities gains of $1.5 million in 2005 compared to net securities losses of $4.0 million in 2004. In 2004, the Company recorded a non-cash charge of $5.5 million, or $3.2 million net of tax, for “other-than-temporary impairment” on perpetual floating-rate preferred securities issued by government sponsored enterprises compared to “other-than-temporary” impairment charges of $142,000 during 2005;

 

  •   Gains on sale of premises and equipment increased $934,000 in 2005 due to the sale of the land and building for a closed branch;

 

  •   An increase in other operating income of $1.2 million, or 13.3%, to $10.2 million in 2005 from $9.0 million in 2004 due primarily to increases in the valuation of the Company’s portfolio of warrants of $706,000, investment services commission income of $509,000, and higher cashier check commissions of $354,000; and

 

  •   The above increases were offset by a decrease of $550,000, or 11.6%, in letter of credit commissions in 2005 due primarily to lower letter of credit volumes and the amortization during 2005 of all standby letter of credit fees received, whereas, prior to 2005 only fees above $10,000 were amortized; and by a decrease of $819,000, or 12.7%, in depository service fees in 2005 due to decreases in wire transfer charges and the increases in short term interest rates which resulted in lower account analysis fees collected from depositors.

 

The decrease of $6.7 million, or 29.3%, from 2003 to 2004 in non-interest income was primarily due to the following items:

 

  •   Net securities losses of $4.0 million in 2004 compared to net securities gains of $9.9 million in 2003. As further described below, in the fourth quarter of 2004, the Bank recorded a non-cash charge of $5.5 million, or $3.2 million net of tax, for “other-than-temporary” impairment on perpetual floating-rate preferred securities issued by government sponsored enterprises. During 2003, the Bank sold $20.9 million of U.S. dollar-denominated bonds issued by Hong Kong entities for a gain of $4.0 million and sold additional securities for gains of $2.5 million in order to reduce its holdings of premium collateralized mortgage obligation (CMO) securities and to reduce its corporate bond positions;

 

  •   An increase of letters of credit commissions of $2.0 million, or 82.0%, to $4.4 million in 2004 from $2.4 million in 2003 due primarily to the merger with GBC Bancorp and additional business;

 

  •   An increase in deposit service fees of $1.2 million, or 22.5%, to $6.8 million in 2004 from $5.6 million in 2003 due primarily to the merger with GBC Bancorp; and

 

  •   An increase in other operating income of $4.0 million, or 76.4%, to $9.1 million in 2004 from $5.1 million in 2003 due primarily to the merger with GBC Bancorp, increases in investment services commission income, the recording of unrealized warrant gains from a company that became public, and higher gains on sales of SBA loans.

 

In 2000 and 2001, the Bank purchased three issues of preferred stock issued by Freddie Mac with a total par value of $20.0 million and one issue of preferred stock issued by Fannie Mae with a total par value of $5.0 million. These securities have a perpetual life and after an initial fixed rate period, the dividend on each issue of

 

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preferred stock is repriced based on a spread over a specific index such as LIBOR or the two-year Treasury Note. During the fourth quarter of 2004, based on an evaluation of the length of time and extent to which the market value of these preferred stock securities have been less than market and the financial condition and near-term prospects of the issuers, the Bank recorded an other-than-temporary impairment charges of $5.5 million to write down the value of these securities to market.

 

This excerpt taken from the CATY 10-Q filed Nov 9, 2005.

Non-Interest Income

 

Non-interest income, which includes revenues from service charges on deposit accounts, letters of credit commissions, securities gains (losses), gains (losses) on loan sales, wire transfer fees, and other sources of fee income, was $5.9 million for the third quarter of 2005, an increase of $1.1 million, or 24.1%, compared to the non-interest income of $4.7 million for the third quarter of 2004.

 

For the third quarter of 2005, the Company recorded net securities gains of $169,000 compared to net securities losses of $257,000 for the same quarter in 2004.

 

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Letters of credit commissions decreased $175,000, or 14.2%, from $1.2 million in the third quarter of 2004 to $1.1 million in the third quarter of 2005 due primarily to lower letter of credit volumes and the amortization during 2005 of all standby LC fees received. Prior to 2005, fees received under a threshold amount were recorded directly to fee income. Depository service fees decreased $141,000, or 8.9%, from $1.6 million in the third quarter of 2004 to $1.5 million in the third quarter of 2005 due to decreases in wire transfer charges and the increases in short term interest rates which resulted in lower account analysis fees collected from depositors. Other operating income increased $1.1 million, or 49.5%, from $2.1 million in the third quarter of 2004 to $3.2 million in the third quarter of 2005 due to the recording of warrant gains and higher wealth management commissions.

 

This excerpt taken from the CATY 10-Q filed Aug 9, 2005.

Non-Interest Income

 

Non-interest income, which includes revenues from service charges on deposit accounts, letters of credit commissions, securities gains (losses), gains (losses) on loan sales, wire transfer fees, and other sources of fee income, was $5.4 million for the second quarter of 2005, a decrease of $1.1 million, or 16.8%, compared to the non-interest income of $6.5 million for the second quarter of 2004.

 

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For the second quarter of 2005, the Company recorded net securities gains of $745,000 compared to $1.4 million of net gains for the same quarter in 2004.

 

Letters of credit commissions decreased $222,000, or 18.2%, from $1.2 million in the second quarter of 2004 to $1.0 million in the second quarter of 2005 due in part to lower letter of credit volumes. Depository service fees decreased $269,000, or 16.3%, from $1.7 million in the second quarter of 2004 to $1.4 million in the second quarter of 2005 due to the increases in short term interest rates which resulted in lower account analysis fees collected from depositors. Other operating income increased $65,000, or 2.9%, from $2.2 million in the second quarter of 2004 to $2.3 million in the second quarter of 2005.

 

This excerpt taken from the CATY 10-Q filed May 10, 2005.

Non-Interest Income

 

Non-interest income, which includes revenues from service charges on deposit accounts, letters of credit commissions, securities gains (losses), gains (losses) on loan sales, wire transfer fees, and other sources of fee income, was $6.0 million for the first quarter of 2005, an increase of $1.6 million, or 37.3%, compared to the non-interest income of $4.4 million for the first quarter of 2004.

 

For the first quarter of 2005, the Company recorded net securities gains of $0.4 million compared to $0.2 million of net losses for the same quarter in 2004. Other operating income increased $1.2 million, or 59.4%, due primarily to the gain of $1.0 million from the sale of a former Cathay Bank branch building and the recording of an unrealized gain of $303,000 on a warrant.

 

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This excerpt taken from the CATY 10-K filed Mar 30, 2005.

Non-interest Income

 

Non-interest income was $16.3 million for 2004, $23.0 million for 2003, and $16.2 million for 2002. Non-interest income includes deposit service fees, letters of credit commissions, securities sales, loan sales, and other sources of fee income. These other fee-based services include, among other things, wire transfer fees, safe deposit fees, fees on loan-related activities, fee income from the Company’s Wealth Management division, and foreign exchange fees.

 

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The decrease of $6.7 million or 29.3% from 2003 to 2004 in non-interest income was primarily due to the following items:

 

  •   Net securities losses of $4.0 million in 2004 compared to net securities gains of $9.9 million in 2003. As further described below in the fourth quarter of 2004, the Bank recorded a non-cash charge of $5.5 million, or $3.2 million net of tax, for “other-than-temporary” impairment on perpetual floating-rate preferred securities issued by government sponsored enterprises. During 2003, the Bank sold $20.9 million of U.S. dollar-denominated bonds issued by Hong Kong entities for a gain of $4.0 million and sold additional securities for gains of $2.5 million in order to reduce its holdings of premium CMO securities and to reduce its corporate bond positions;

 

  •   An increase of letters of credit commissions of $2.0 million or 82.0% to $4.4 million in 2004 from $2.4 million in 2003 due primarily to the merger with GBC Bancorp and additional business;

 

  •   An increase in deposit service fees of $1.2 million or 22.5% to $6.8 million in 2004 from $5.6 million in 2003 due primarily to the merger with GBC Bancorp; and

 

  •   An increase in other operating income of $4.0 million or 76.4% to $9.1 million in 2004 from $5.1 million in 2003 due primarily to the merger with GBC Bancorp, increases in investment services commission income, the recording of unrealized warrant gains from a company that became public and higher gains on sales of SBA loans.

 

In 2000 and 2001, the Bank purchased three issues of preferred stock issued by Freddie Mac with a total par value of $20.0 million and one issue of preferred stock issued by Fannie Mae with a total par value of $5.0 million. These securities have a perpetual life and after an initial fixed rate period, the dividend on each issue of preferred stock is repriced based on a spread over a specific index such as LIBOR or the two-year Treasury Note. During the fourth quarter of 2004, based on an evaluation of the length of time and extent to which the market value of these preferred stock securities have been less than market and the financial condition and near-term prospects of the issuers, the Bank recorded an other-than-temporary impairment charge of $5.5 million to write down the value of these securities to market.

 

The increase of $6.8 million or 42.2% from 2002 to 2003, in non-interest income was primarily due to the following items:

 

  •   An increase of $8.0 million in securities gains. During the second quarter of 2003, the Company sold $20.9 million of its holdings in US dollar-denominated corporate bonds issued by certain Hong Kong entities whose credit ratings might have potentially been adversely impacted by the effects of the outbreak of Severe Respiratory Syndrome (“SARS”) in the region. The gain on the sale was $4.0 million. During the fourth quarter of 2003, the Company sold additional securities for a gain of $2.5 million in order to reduce its holdings of premium CMO securities and to reduce its corporate bond positions; and

 

  •   Letters of credit commissions increased by $0.4 million or 23.0%, to $2.4 million in 2003, primarily as a result of the merger with GBC Bancorp.

 

EXCERPTS ON THIS PAGE:

10-Q
May 8, 2009
10-K
Mar 2, 2009
10-K
Feb 29, 2008
10-K
Mar 1, 2007
8-K
Jan 25, 2007
10-Q
Nov 8, 2006
8-K
Oct 19, 2006
10-Q
Aug 9, 2006
10-Q
May 10, 2006
10-K
Mar 16, 2006
10-Q
Nov 9, 2005
10-Q
Aug 9, 2005
10-Q
May 10, 2005
10-K
Mar 30, 2005

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First Commonwealth Financial (FCF)
F.N.B. (FNB)
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Independent Bank (INDB)
Provident Bankshares (PBKS)
PrivateBancorp (PVTB)
Texas Capital Bancshares (TCBI)
Umpqua Holdings Corporation (UMPQ)
Valley National Bancorp (VLY)
Webster Financial (WBS)
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