Cathay General Bancorp (NASDAQ:CATY) Q3 2023 Earnings Call Transcript

Heng Chen : It’s probably a little low. The — we had a bottom, we had 2 solar tax credit plans that overlap this year. And then next year, we’ll have some runoff from the second fund that we give and then we’ll go into a new one. But it should go up a little bit. We’ll give guidance when we — in January for 2024. And if you’re modeling to the extent that the tax rate is higher, the solar amortization is lower, almost dollar for dollar.

Operator: And our next question is a follow-up from Matthew Clark at Piper Sandler.

Matthew Clark : Can you remind us what your SNC exposure is Shared National Credits?

Heng Chen : It’s less than 5% of our total loans, Matthew.

Matthew Clark : Okay. Got it. And then, I guess, an update on office CRE and the related reserve and the amount that might be criticized, I’m assuming the reserve is consistent with the commercial real estate reserve, but I’m not sure if you guys tweaked anything this quarter. But again, the reserve and the amount criticized?

Heng Chen : Well, our office reserve is we’re reserving at about 85 basis points. What was the other part of your question? The amount that’s criticized. We now have a couple of the amount that’s criticized I don’t have that handy. I can tell you, in nonaccruals, we have think about $10 million in CRE loans at office.

Operator: Thank you for your participation. I will now turn the call back over to Cathay General Bancorp’s management for closing remarks.

Chang Liu : I’d like to thank everyone for joining us on our call, and we look forward to speaking with you at our next quarterly earnings release call.

Operator: Ladies and gentlemen, thank you for your participation in today’s conference. This concludes the presentation. You may now disconnect. Good day.