Cathay General ( (CATY) ) has released its Q3 earnings. Here is a breakdown of the information Cathay General presented to its investors.
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Cathay General Bancorp is a publicly traded holding company for Cathay Bank, providing a range of financial services across the United States and internationally, with a focus on serving the banking needs of its diverse clientele.
In the third quarter of 2025, Cathay General Bancorp reported a net income of $77.7 million, or $1.13 per diluted share, reflecting a slight increase from the previous quarter. The company also highlighted an increase in net interest margin and a rise in total loans and deposits, indicating a steady financial performance.
Key financial metrics for the quarter included a net interest margin of 3.31%, an increase in total loans to $20.10 billion, and a rise in total deposits to $20.52 billion. The provision for credit losses increased significantly to $28.7 million, influenced by additional reserves for specific loans and changes in the CECL model. Non-interest income saw a notable increase, driven by gains on equity securities and higher wealth management fees.
Despite a slight decrease in non-interest expenses, the efficiency ratio improved to 41.84%. The company’s capital ratios remained strong, with a Tier 1 risk-based capital ratio of 13.15%, maintaining its ‘well-capitalized’ status. Asset quality showed improvement with a reduction in non-accrual loans and an increase in the allowance for loan losses.
Looking forward, Cathay General Bancorp remains focused on maintaining its financial stability and capital strength, while continuing to navigate the evolving economic landscape and regulatory environment. The management’s outlook suggests a cautious yet optimistic approach to future growth and profitability.