In This Article:
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Net Income: $69.5 million for Q1 2025, a 13.3% decrease from $80.2 million in Q4 2024.
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Diluted Earnings Per Share: $0.98 for Q1 2025, down 12.5% from $1.12 in Q4 2024.
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Stock Repurchase: 876,906 shares repurchased at an average cost of $46.83 per share, totaling $41.1 million.
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Total Gross Loans: Decreased by $23 million or 0.5% annualized in Q1 2025.
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Net Charge Offs: $2 million for Q1 2025, compared to $16.3 million in Q4 2024.
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Non-Accrual Loans: 0.8% of total loans as of March 31, 2025, decreased by $14.5 million to $154.6 million from Q4 2024.
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Provision for Credit Loss: $15.5 million in Q1 2025, up from $14.5 million in Q4 2024.
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Total Deposits: Increased by $131 million or 2.7% annualized during Q1 2025.
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Net Interest Margin: Increased to 3.25% for Q1 2025 from 3.07% in Q4 2024.
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Non-Interest Income: Decreased by $4.3 million to $11.2 million in Q1 2025 from $15.5 million in Q4 2024.
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Non-Interest Expenses: Increased by $0.5 million to $85.7 million in Q1 2025 from $85.2 million in Q4 2024.
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Effective Tax Rate: 19.82% for Q1 2025, up from 7.57% in Q4 2024.
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Tier 1 Leverage Capital Ratio: Increased to 11.06% as of March 31, 2025, from 10.97% as of December 31, 2024.
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Total Risk-Based Capital Ratio: Increased to 15.19% from 15.09% as of December 31, 2024.
Release Date: April 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cathay General Bancorp (NASDAQ:CATY) reported a net interest margin increase to 3.25% for Q1 2025 from 3.07% in Q4 2024.
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Total deposits increased by $131 million or 2.7% annualized during Q1 2025, driven by a net increase in core deposits and time deposits.
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The company completed its $125 million stock repurchase program, buying back 876,906 shares at an average cost of $46.83 per share.
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Cathay General Bancorp (NASDAQ:CATY) has a strong liquidity position with unused borrowing capacity from the Federal Home Loan Bank and the Federal Reserve Bank, covering more than 100% of uninsured and uncollateralized deposits.
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The Tier 1 leverage capital ratio increased to 11.06% as of March 31, 2025, indicating a strong capital position.
Negative Points
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Net income for Q1 2025 decreased by 13.3% to $69.5 million compared to Q4 2024.
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The diluted earnings per share decreased by 12.5% to $0.98 for Q1 2025 compared to $1.12 in Q4 2024.
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Total gross loans decreased by $23 million or 0.5% annualized, primarily due to decreases in commercial and residential loans.
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Non-interest income decreased by $4.3 million to $11.2 million in Q1 2025, primarily due to a mark-to-market unrealized loss on equity securities.
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The provision for credit loss increased to $15.5 million in Q1 2025, up from $14.5 million in Q4 2024, mainly to cover possible losses from one commercial client.