Cathay General Bancorp Reports Strong Second Quarter Earnings

Cathay General Bancorp, the parent company of Cathay Bank, has announced its unaudited financial results for the quarter ended June 30, 2025. The Company reported net income of $77.5 million, or $1.10 per diluted share, a significant increase of $8.0 million, or 11.5%, compared to the first quarter of 2025. The financial results are driven by a strong net interest margin, which increased to 3.27% during the second quarter, up from 3.25% in the first quarter. Total loans, excluding loans held for sale, increased to $19.78 billion, a 2.23% increase from the first quarter, and total deposits grew by $188.8 million, or 0.95%, to $20.01 billion.

Key Takeaways:

• Net income for the quarter ended June 30, 2025, was $77.5 million, an increase of $8.0 million, or 11.5%, compared to the first quarter of 2025.
• Diluted earnings per share for the second quarter of 2025 was $1.10 per share, an increase of $0.12, or 12%, compared to the first quarter of 2025.
• Return on average stockholders' equity was 10.72% and return on average assets was 1.33% for the quarter ended June 30, 2025, a significant improvement from the first quarter.
• Non-interest income increased by $4.2 million, or 37.5%, to $15.4 million, primarily due to a decrease in loss on equity securities and an increase in fees from interest rate swaps.
• The Company recorded a provision for credit losses of $11.2 million in the second quarter of 2025, a decrease of $4.3 million from the first quarter of 2025.
• Gross loans, excluding loans held for sale, increased by $431.7 million, or 2.23%, to $19.78 billion, with notable increases in commercial real estate loans and commercial loans.
• The efficiency ratio was 45.34% in the second quarter of 2025, a slight decrease from 45.60% in the first quarter.

Statistics:

• Total loans, excluding loans held for sale: $19.78 billion (up from $19.35 billion in Q1 2025)
• Total deposits: $20.01 billion (up from $19.81 billion in Q1 2025)
• Net interest income before provision for credit losses: $181.2 million (up from $176.6 million in Q1 2025)
• Provision for credit losses: $11.2 million (down from $15.5 million in Q1 2025)
• Return on average stockholders' equity: 10.72% (up from 9.84% in Q1 2025)
• Return on average assets: 1.33% (up from 1.22% in Q1 2025)
• Efficiency ratio: 45.34% (down from 45.60% in Q1 2025)

Sources:

• Cathay General Bancorp financial statement for the quarter ended June 30, 2025
• Cathay General Bancorp news release (no date provided)