Cathay General Bancorp Reports 15.1% Net Income Growth to $77.7 Million in Q3 2025

Cathay General Bancorp reported a net income of $77.7 million for the third quarter of 2025, reflecting a 15.1% increase from $67.5 million in the same period last year. This growth translated to diluted earnings per share of $1.13, up from $0.94 a year earlier. The company's return on average stockholders' equity improved to 10.60%, compared to 9.50% in the prior year, while return on average assets rose to 1.29% from 1.15%. For the nine months ending September 30, 2025, net income totaled $224.6 million, a 9.1% increase from $205.8 million in the same period of 2024.

Total assets increased to $24.08 billion as of September 30, 2025, up 4.4% from $23.05 billion at the end of 2024. The growth was primarily driven by a 3.8% increase in gross loans held for investment, which reached $20.10 billion, and a 4.2% rise in total deposits to $20.52 billion. The company’s net interest income before provision for credit losses rose by 12.1% to $189.6 million, attributed to a decrease in interest expenses on deposits, despite a slight decline in interest income from loans and securities.

In terms of operational metrics, the provision for credit losses was $28.7 million for the third quarter, significantly higher than the $14.5 million recorded in the same quarter of 2024. This increase included a special reserve of $9.1 million for two movie theater loans and $3.8 million due to changes in the Current Expected Credit Loss (CECL) model. The allowance for credit losses increased to $186.6 million, representing 0.93% of gross loans, compared to 0.83% at the end of 2024.

Strategically, Cathay General Bancorp has been active in managing its capital structure, with total equity rising to $2.90 billion, an increase of $56.6 million from the previous year. This growth was supported by net income, stock-based compensation, and proceeds from a dividend reinvestment plan, although it was partially offset by treasury stock purchases and cash dividends paid. The company also announced a new stock repurchase program of up to $150 million, following the completion of a previous $125 million program.

Looking ahead, the company remains optimistic about its growth trajectory, supported by a strong capital position and a diversified loan portfolio. However, management acknowledges potential risks, including economic conditions and regulatory changes, which could impact future performance. The company continues to monitor its credit quality closely, particularly in light of the recent increases in provisions for credit losses.