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Sep 30
Cathay General Q3 2025 Earnings Report
Cathay General Bancorp reported a net income of $77.7 million for Q3 2025, with improved net interest income and efficiency ratio compared to the prior quarter.
Key Takeaways
Cathay General Bancorp saw modest earnings growth in Q3 2025 driven by a higher net interest margin, increased loan balances, and a strong efficiency ratio, despite higher provisions for credit losses.
Net income was $77.7 million, or $1.13 per diluted share.
Net interest income rose to $189.6 million, up $8.4 million from Q2.
Efficiency ratio improved significantly to 41.84%.
Provision for credit losses spiked to $28.7 million, largely due to theater loans and CECL model changes.
Cathay General
Cathay General
Cathay General Revenue by Segment
Cathay General Revenue by Geographic Location
Revenue by Segment
Loan Receivable Revenue
CapyFin.comInvestment Securities Revenue
CapyFin.comFHLB Stock Revenue
CapyFin.comDeposits with Banks Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
Cathay General did not provide formal numerical guidance but remains focused on margin expansion, loan growth, and credit risk management.
Positive Outlook
- Net interest margin continues to expand.
- Loan portfolio growth remains healthy.
- Efficiency improvements highlight cost discipline.
- Capital ratios remain strong and well above regulatory minimums.
- Repurchased over 1 million shares during the quarter, reflecting confidence in valuation.
Challenges Ahead
- Provision for credit losses increased significantly due to specific troubled loans.
- Effective tax rate decreased but remains volatile due to tax credit effects.
- Net charge-offs rose versus the prior year and quarter.
- Non-performing commercial loans remain elevated.
- Other real estate owned nearly doubled during the quarter.