Cathay General ( (CATY) ) has released its Q1 earnings. Here is a breakdown of the information Cathay General presented to its investors.
Cathay General Bancorp is a publicly traded financial holding company based in Los Angeles, California, operating primarily in the banking sector through its subsidiary, Cathay Bank, which offers a wide range of financial services across the United States and internationally.
In its first quarter of 2025 earnings report, Cathay General Bancorp announced a net income of $69.5 million, or $0.98 per diluted share, reflecting a decrease from the previous quarter. Despite the decline in net income, the company highlighted an increase in net interest margin and a successful completion of a share repurchase program.
Key financial metrics for the quarter include a net interest margin increase to 3.25% from 3.07% in the previous quarter, and a slight decrease in total loans to $19.35 billion. Total deposits saw an increase of $131.3 million, reaching $19.82 billion. The company also recorded a provision for credit losses of $15.5 million, with an increase in the allowance for credit losses to $185 million.
Non-interest income decreased by 27.6% to $11.2 million, primarily due to lower gains on equity securities. Meanwhile, non-interest expenses rose slightly to $85.7 million, driven by higher FDIC and State assessments and increased computer and equipment expenses. The company’s capital ratios remain strong, maintaining its status as ‘well capitalized’ under regulatory standards.
Looking ahead, Cathay General Bancorp remains focused on managing its financial performance amidst a challenging economic environment, with an emphasis on maintaining strong capital ratios and exploring growth opportunities in its core markets.