Cathay General Bancorp reported a net income of $69.5 million for the first quarter of 2025, a decrease of 2.7% from $71.4 million in the same period last year. The diluted earnings per share remained stable at $0.98, while the return on average stockholders' equity was 9.84%, down from 10.40% a year earlier. The company's total assets increased to $23.21 billion, reflecting a growth of $150.3 million, or 0.7%, from the previous quarter. The net interest income before provision for credit losses rose by 4.7% to $176.6 million, primarily due to a decrease in interest expenses on deposits.
In terms of loan performance, total loans held for investment slightly decreased to $19.35 billion, a decline of 0.12% from the previous quarter. The allowance for loan losses increased to $173.9 million, representing 0.90% of gross loans, compared to 0.88% at the end of 2024. The provision for credit losses was significantly higher at $15.5 million, compared to $1.9 million in the same quarter last year, largely attributed to one commercial loan. Non-performing assets decreased to $173.7 million, or 0.75% of total assets, down from $196.3 million, indicating improved asset quality.
Cathay General Bancorp's total deposits rose by $131.3 million, or 0.7%, to $19.82 billion, with non-interest-bearing demand deposits increasing to $3.36 billion. The company also reported a net unrealized gain of $13.9 million in other comprehensive income, primarily from securities available-for-sale. The efficiency ratio improved to 45.60%, down from 53.22% a year ago, reflecting better cost management.
Looking ahead, the company anticipates continued challenges in the economic environment, particularly regarding interest rates and credit quality. Management has indicated that they will closely monitor the economic landscape and adjust their strategies accordingly. The company remains committed to maintaining a strong capital position, with total equity reaching $2.87 billion as of March 31, 2025, an increase from the previous quarter, supported by net income and other comprehensive income.
About CATHAY GENERAL BANCORP
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