Cathay General Bancorp reported a net income of $86.9 million for the first quarter of 2026, reflecting a 25% increase from $69.5 million in the same period last year. This translates to basic earnings per share of $1.30, up from $0.99 a year earlier. The company's net interest income before provision for credit losses rose by 10% to $194.2 million, driven by a decrease in interest expenses on deposits. The net interest margin improved to 3.43%, compared to 3.25% in the first quarter of 2025, indicating enhanced profitability from interest-earning assets.
Total assets decreased to $24.05 billion as of March 31, 2026, down from $24.23 billion at the end of 2025. The decline was primarily attributed to a $218.5 million reduction in total deposits, which fell to $20.68 billion. The company’s loan portfolio showed a slight increase, with gross loans held for investment rising to $20.17 billion, a marginal increase of 0.1% from the previous quarter. Notably, commercial loans increased by 3.1%, while residential mortgage loans decreased by 0.8%.
In terms of operational developments, the company recorded a provision for credit losses of $18.2 million, up from $15.5 million in the prior year. The allowance for loan losses increased to $208.8 million, representing 1.03% of total loans. Non-performing assets decreased by 11% to $127.9 million, with non-accrual loans dropping significantly by 20.8% to $89.0 million. The allowance for loan losses to non-performing loans improved to 220.95%, indicating a stronger coverage against potential defaults.
Strategically, Cathay General Bancorp completed a stock repurchase program, buying back 243,499 shares at an average cost of $51.31, totaling $12.5 million. The company also announced a new share repurchase program authorizing up to $150 million in common stock buybacks. Looking ahead, management remains optimistic about growth opportunities, although they acknowledge potential risks related to economic conditions and regulatory changes. The company continues to focus on maintaining a strong capital position, with total equity increasing to $2.99 billion as of March 31, 2026, up from $2.93 billion at the end of 2025.
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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