Cathay General Bancorp reported a net income of $77.5 million for the second quarter of 2025, reflecting a 16% increase from $66.8 million in the same period last year. This growth translated to diluted earnings per share of $1.10, up from $0.92 a year earlier. The company's return on average assets improved to 1.33%, while return on average stockholders' equity rose to 10.72%. For the first half of 2025, net income totaled $147 million, a 6.3% increase compared to $138.3 million in the first half of 2024.
Total assets increased by $669.2 million, or 2.9%, to $23.72 billion as of June 30, 2025, compared to $23.05 billion at the end of 2024. The growth in assets was primarily driven by a $408.7 million increase in gross loans held for investment, which reached $19.78 billion. This increase was supported by a rise in commercial real estate loans and commercial loans, partially offset by a decline in construction loans. Total deposits also saw a rise, increasing by $320.1 million, or 1.6%, to $20.01 billion.
In terms of operational metrics, the net interest margin improved to 3.27% in the second quarter of 2025, up from 3.01% in the same quarter of 2024. The company reported a net interest income before provision for credit losses of $181.2 million, a 9.6% increase from $165.3 million year-over-year. However, the provision for credit losses rose to $11.2 million from $6.6 million in the prior year, reflecting a proactive approach to managing credit risk amid changing economic conditions.
Cathay General Bancorp also announced a new stock repurchase program, authorizing the buyback of up to $150 million of its common stock, following the completion of a previous $125 million program. The company repurchased 804,179 shares at an average cost of $44.22 per share during the second quarter. Looking ahead, management remains optimistic about growth opportunities, although they acknowledge potential risks related to economic conditions, regulatory changes, and market dynamics that could impact future performance.
About CATHAY GENERAL BANCORP
Cathay General Bancorp is a bank holding company for Cathay Bank, a California state-chartered commercial bank serving individuals, professionals, and small to medium-sized businesses primarily in California, New York, and other U.S. markets. It offers deposit accounts, commercial and residential loans, SBA loans, wealth management, and international banking services. The company leverages strong community ties, multilingual staff, and a focus on underserved markets to provide tailored financial solutions.
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