I think this year could be a good one for U.S. banks. Between cheaper funding and fixed-asset repricing, the outlook for interest margins and pre-provision income growth looks decent. Couple that with resilient credit trends and improvingI like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly UK ...

Group 1 - The outlook for U.S. banks in the current year appears positive due to cheaper funding and fixed-asset repricing, which may enhance interest margins and pre-provision income growth [1] - Resilient credit trends are contributing to the favorable outlook for the banking sector [1] Group 2 - The investment strategy focuses on a long-term, buy-and-hold approach, particularly favoring stocks that can deliver sustainable high-quality earnings, often found in the dividend and income sectors [1]

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Financial Data and Key Metrics Changes - The company reported a net income of $90.5 million for Q4 2025, a 16.5% increase from $77.7 million in Q3 2025 [4] - Diluted earnings per share increased by 18.3% to $1.33 in Q4, up from $1.13 in Q3 [4] - For the full year 2025, net income was $315.1 million, a 10.1% increase from $286 million in 2024 [4] - The net interest margin increased to 3.36% in Q4 from 3.31% in Q3 [11] - Total deposits increased by $373 million or 7.6% on an annualized basis during Q4 [9] Business Line Data and Key Metrics Changes - Total gross loans grew by $42 million, driven by increases of $80 million in commercial real estate (CRE) loans and $17 million in residential loans [5] - Non-accrual loans were 0.6% of total loans as of December 31, 2025, down $53.3 million to $112.4 million compared to the prior quarter [8] - The average loan-to-value of CRE loans remained steady at 49% [6] Market Data and Key Metrics Changes - The company expects loan growth in 2026 to be between 3.5% and 4.5% [5] - For 2026, deposit growth is expected to range between 4% and 5% [9] Company Strategy and Development Direction - The company plans to announce a new buyback program after approvals are received, with $12 million remaining under the current buyback program [4] - The management is focused on transitioning some of the maturing CDs into non-interest-bearing deposits while being sensitive to defending the existing base [18] Management's Comments on Operating Environment and Future Outlook - Management anticipates further benefit to the net interest margin from declining deposit costs supported by the fixed-rate proportion of the loan portfolio [11] - The competitive landscape in the local LA and New York markets remains strong, particularly for maturing CDs [18] - Management does not see any particular trends in credit migration but is closely monitoring special mention loans [20] Other Important Information - The company recorded $17.2 million in provisions for credit losses in Q4 compared to $28.7 million in Q3 [9] - The effective tax rate for Q4 2025 was 20.23% compared to 17.18% for Q3 [13] Q&A Session Summary Question: Can you speak more in terms of what you're assuming for deposit betas embedded in that NIM outlook? - The company is assuming deposit betas in the 60% range, with market competition remaining rational in Q4 [17] Question: What are you seeing in terms of credit and any migration into criticized and overall trends? - Management noted that there are no particular trends in credit migration, with some loans being downgraded to special mention due to short-term financial issues [20][21] Question: Have you seen an elevated level of competition for incremental loan growth? - Management indicated strong competition in the C&I segment, with existing portfolios facing the most competition [29][30]

Financial Data and Key Metrics Changes - The company reported a net income of $90.5 million for Q4 2025, a 16.5% increase from $77.7 million in Q3 2025 [4] - Diluted earnings per share increased by 18.3% to $1.33 in Q4, up from $1.13 in Q3 [4] - For the full year 2025, net income was $315.1 million, a 10.1% increase from $286 million in 2024 [4] - The net interest margin increased to 3.36% in Q4 from 3.31% in Q3 [11] - Total deposits increased by $373 million or 7.6% on an annualized basis during Q4 [9] Business Line Data and Key Metrics Changes - Total gross loans grew by $42 million, driven by increases of $80 million in commercial real estate (CRE) loans and $17 million in residential loans [5] - Non-accrual loans were 0.6% of total loans as of December 31, 2025, down $53.3 million to $112.4 million compared to the prior quarter [8] - The average loan-to-value of CRE loans remained steady at 49% [7] - Net charge-offs for Q4 were $5.4 million, down from $15.6 million in the prior quarter [8] Market Data and Key Metrics Changes - Total uninsured deposits were $9.3 billion, net of $0.9 billion in collateralized deposits, representing 44.6% of total deposits [9] - The company has $7.5 billion of unused borrowing capacity from the Federal Home Loan Bank, $1.3 billion from the Federal Reserve Bank, and $1.6 billion in unpledged securities [9] Company Strategy and Development Direction - The company plans to announce a new stock buyback program after approvals are received, with $12 million remaining under the current buyback program [4] - The company expects loan growth in 2026 to be between 3.5% and 4.5% [5] - The effective tax rate for 2026 is expected to be between 20.5% and 21.5% [13] Management's Comments on Operating Environment and Future Outlook - Management anticipates further benefit to the net interest margin from declining deposit costs supported by the fixed-rate proportion of the loan portfolio [11] - The company expects deposit growth to range between 4% and 5% for 2026 [9] - Management noted that the local LA and New York landscape remains competitive, particularly with nearly $4 billion of maturing CDs in the first quarter [18] Other Important Information - The company recorded $17.2 million in provisions for credit losses in Q4 compared to $28.7 million in Q3 [9] - The Tier 1 risk-based capital ratio increased to 13.27% from 13.15% in Q3 [13] Q&A Session Summary Question: Can you speak more in terms of what you're assuming for deposit betas embedded in that NIM outlook? - Management assumes deposit betas in the 60% range, with market competition remaining rational in Q4 [17] Question: What are you seeing in terms of credit and any migration into criticized and overall trends? - Management noted some migrations into special mention but does not see any particular trends [20] Question: Have you seen an elevated level of competition for incremental loan growth? - Management observed strong competition in the C&I segment, with a decline in rates, while residential mortgage growth was strong [30][31]

Financial Data and Key Metrics Changes - The company reported a net income of $90.5 million for Q4 2025, a 16.5% increase from $77.7 million in Q3 2025 [4][39] - Diluted earnings per share increased by 18.3% to $1.33 in Q4, up from $1.13 in Q3 [4][39] - For the full year 2025, net income was $315.1 million, a 10.1% increase from $286 million in 2024 [4][39] - The net interest margin increased to 3.36% in Q4 from 3.31% in Q3 [10][45] Business Line Data and Key Metrics Changes - Total gross loans grew by $42 million, driven by increases of $80 million in commercial real estate (CRE) loans and $17 million in residential loans [5][39] - Non-accrual loans were 0.6% of total loans as of December 31, 2025, down $53.3 million to $112.4 million compared to the prior quarter [7][42] - The average loan-to-value of CRE loans remained steady at 49% [5][40] Market Data and Key Metrics Changes - Total deposits increased by $373 million or 7.6% on an annualized basis during Q4, primarily driven by $366 million increases in core deposits [8][44] - As of December 31, 2025, total uninsured deposits were $9.3 billion, representing 44.6% of total deposits [8][44] Company Strategy and Development Direction - The company expects loan growth in 2026 to be between 3.5% and 4.5% [5][39] - The company plans to announce a new stock buyback program after approvals are received, with $12 million remaining under the current buyback program [4][39] Management's Comments on Operating Environment and Future Outlook - Management anticipates further benefit to the net interest margin from declining deposit costs supported by the fixed-rate proportion of the loan portfolio [10][45] - The effective tax rate for Q4 2025 was 20.23%, with expectations for 2026 to be between 20.5% and 21.5% [12][46] Other Important Information - The company recorded $17.2 million in provisions for credit losses in Q4 compared to $28.7 million in Q3 [8][43] - The Tier 1 risk-based capital ratio increased to 13.27% from 13.15% in Q3 [12][47] Q&A Session Summary Question: Can you speak more in terms of what you're assuming for deposit betas embedded in that NIM outlook? - The company is assuming deposit betas in the 60% range, with market competition remaining rational in Q4 [16][18] Question: What are you seeing in terms of credit and any migration into criticized and overall trends? - There are no particular trends observed, but some loans have been downgraded to special mention due to not meeting certain debt covenants [20][50] Question: Have you seen an elevated level of competition for incremental loan growth? - There is strong competition for the right type of assets and loans, particularly in the C&I segment, which has seen the most competition [29][52]

分组1 - Cathay General (CATY) reported quarterly earnings of $1.33 per share, exceeding the Zacks Consensus Estimate of $1.20 per share, and showing an increase from $1.12 per share a year ago, resulting in an earnings surprise of +11.30% [1] - The company posted revenues of $222.83 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 5.46%, and up from $186.49 million year-over-year [2] - Cathay shares have increased by approximately 8.4% since the beginning of the year, outperforming the S&P 500's gain of 0.4% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.10 on revenues of $208 million, and for the current fiscal year, it is $5.05 on revenues of $848.3 million [7] - The Zacks Industry Rank for Banks - West is in the top 33% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Earnings Results Fourth Quarter and Full Year 2025 January 22, 2026 Forward Looking Statements This presentation contains forward-looking statements about Cathay General Bancorp and its subsidiaries (collectively referred to herein as the "Company," "we," "us," or "our") within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provision for forward-looking statements in these ...

Financial Performance - For the year ended December 31, 2025, net income was $315.1 million, or $4.54 per diluted share, compared to $286.0 million, or $3.95 per diluted share for 2024[2][3] - Net income for the year ended December 31, 2025, was $315,124,000, compared to $285,979,000 for the year ended December 31, 2024, reflecting a 10.2% increase[32] - In the fourth quarter of 2025, net income increased by $12.8 million, or 16.5%, to $90.5 million compared to $77.7 million in the third quarter of 2025[5] - Net income for the three months ended December 31, 2025, was $90,517,000, an increase from $77,651,000 in the previous quarter, representing a growth of 16.8%[36] - Basic net income per common share for the three months ended December 31, 2025, was $1.34, compared to $1.13 in the prior quarter, reflecting an increase of 18.6%[36] Loans and Deposits - Total loans increased to $20.15 billion, a rise of $771.2 million, or 4.0%, from $19.38 billion as of December 31, 2024[17] - Total deposits rose by $1.20 billion, or 6.1%, to $20.89 billion in 2025, up from $19.69 billion in 2024[19] - Total gross loans outstanding increased by $771.2 million, or 4%, to $20.15 billion as of December 31, 2025, compared to $19.38 billion as of December 31, 2024[22] - Average loans for the three months ended December 31, 2025, were $20,103,677,000 with a yield of 6.05%, compared to $19,951,853,000 and 6.14% in the previous quarter[38] Asset Quality - The provision for credit losses was $17.2 million in the fourth quarter of 2025, a decrease from $28.7 million in the third quarter of 2025[11] - Total non-accrual loans decreased by $56.8 million, or 33.6%, to $112.4 million as of December 31, 2025, compared to $169.2 million a year earlier[20] - As of December 31, 2025, total non-performing assets decreased by $52.6 million, or 26.8%, to $143.7 million compared to $196.3 million as of December 31, 2024[22] - The ratio of non-performing assets to total assets was 0.59% as of December 31, 2025, down from 0.85% as of December 31, 2024[22] - The allowance for loan losses was $195.9 million, representing 0.97% of period-end gross loans as of December 31, 2025[21] Efficiency and Margins - The net interest margin improved to 3.36% in the fourth quarter of 2025, up from 3.31% in the third quarter of 2025[7][9] - The efficiency ratio improved to 41.36% in the fourth quarter of 2025, down from 41.84% in the third quarter of 2025[15] - The efficiency ratio for the year ended December 31, 2025, improved to 43.41% from 51.35% for the year ended December 31, 2024[25] - The efficiency ratio improved to 41.36% in Q4 2025 from 45.70% in Q4 2024, demonstrating better cost management[32] Capital and Equity - The Company's Tier 1 risk-based capital ratio was 13.27% as of December 31, 2025, remaining well above the regulatory minimum of 8%[23] - The Tier 1 risk-based capital ratio was 13.27% as of December 31, 2025, slightly up from 13.54% a year earlier, indicating strong capital position[32] - Stockholders' equity increased to $2,925,388 thousand as of December 31, 2025, up from $2,902,276 thousand as of September 30, 2025, and $2,845,704 thousand as of December 31, 2024[42] - The total stockholders' equity to total assets ratio was 12.07% as of December 31, 2025, slightly up from 12.05% in the previous quarter but down from 12.34% a year ago[42] Income and Expenses - Non-interest income for the fourth quarter of 2025 was $27.8 million, an increase of $6.8 million, or 32.2%, compared to $21.0 million in the third quarter of 2025[14] - Total non-interest expense for the three months ended December 31, 2025, was $92,156,000, compared to $88,117,000 in the prior quarter, indicating a rise of 3.9%[36] - Total interest and dividend income for the three months ended December 31, 2025, was $332,752,000, a slight decrease from $334,195,000 in the previous quarter[36] Other Metrics - Book value per common share increased to $43.53 as of December 31, 2025, up from $40.16 a year earlier, reflecting a 8.5% growth[34] - Return on average assets improved to 1.49% in Q4 2025 from 1.37% in Q4 2024, indicating enhanced asset utilization[32] - Tangible book value per share increased to $37.90 as of December 31, 2025, from $36.96 as of September 30, 2025, and $34.81 as of December 31, 2024[42]

Core Viewpoint - Cathay General Bancorp (CATY) has shown consistent performance in recent months, with its net interest margin expanding towards historical averages, contributing to earnings growth [1] Group 1: Financial Performance - The net interest margin of Cathay General Bancorp has been improving, which is a positive indicator for the bank's profitability [1] - The earnings growth is described as decent, suggesting a stable financial outlook for the company [1] Group 2: Investment Strategy - The investment approach favored is long-term and buy-and-hold, focusing on stocks that can deliver sustainable high-quality earnings [1]