Cathay General Bancorp ( CATY ) has been ticking along nicely in recent months. As I'd hoped when I first covered this California-based lender, Cathay's net interest margin has continued to expand back towards its historical average, driving decent earnings growth forI 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 I ...

Cathay General Bancorp ( CATY ) has been ticking along nicely in recent months. As I'd hoped when I first covered this California-based lender, Cathay's net interest margin has continued to expand back towards its historical average, driving decent earnings growth forI 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 I ...

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Core Points - Cathay Bank is participating in the CFA Institute Research Challenge, which offers university students practical mentoring and training in financial analysis and ethics [1][2] - The challenge evaluates students on various skills, providing them with real-world experience as research analysts, with a structured competition process leading to a global final in May 2026 [2][3] Company Overview - Cathay Bank, a subsidiary of Cathay General Bancorp, was established in 1962 in Los Angeles to serve the immigrant community and currently operates over 60 branches in the U.S. and has a presence in Hong Kong and several cities in China [4] - The bank's participation as a subject company in the research challenge enhances its recognition and allows students to analyze a real financial institution [3][4]

Financial Performance - Total assets increased to $24,075,644 thousand as of September 30, 2025, up from $23,054,681 thousand at December 31, 2024, representing a growth of 4.4%[15] - Net income for the three months ended September 30, 2025, was $77,651,000, an increase of 15.5% from $67,514,000 in the same period of 2024[17] - Basic earnings per share for the three months ended September 30, 2025, was $1.13, compared to $0.94 for the same period in 2024, representing a 20.2% increase[18] - For the nine months ended September 30, 2025, net income was reported at $224,607, compared to $205,778 for the same period in 2024, indicating a growth of approximately 9.14%[20] - Net income for the nine months ended September 30, 2025, was $224,607,000, an increase of 9.0% compared to $205,778,000 for the same period in 2024[22] Loans and Credit Losses - Loans held for investment rose to $20,104,716 thousand, compared to $19,375,955 thousand at the end of 2024, marking an increase of 3.8%[15] - The allowance for loan losses was $186,647 thousand, up from $161,765 thousand, indicating a rise of 15.4%[15] - Provision for credit losses for the three months ended September 30, 2025, was $28,731,000, significantly higher than $14,500,000 in the same period of 2024, reflecting an increase of 98.5%[17] - Provision for credit losses increased significantly to $55,431,000 from $23,000, indicating a rise in expected credit losses[22] - The total allowance for credit losses for commercial loans with allocated allowance is $12,900,000[51] Deposits and Equity - Total deposits grew to $20,521,149 thousand, up from $19,686,199 thousand, reflecting an increase of 4.3%[15] - The company reported a total stockholders' equity of $2,902,276 thousand, compared to $2,845,704 thousand, an increase of 2.0%[15] - The balance of additional paid-in capital increased from $996,249 at June 30, 2025, to $998,883 at September 30, 2025, an increase of approximately 0.26%[19] - As of September 30, 2025, total stockholders' equity was $2,902,276, a decrease from $2,886,295 at June 30, 2025, reflecting a change of approximately 0.55%[19] Income and Expenses - Total interest and dividend income for the three months ended September 30, 2025, was $334,195,000, a decrease of 1.0% from $339,491,000 in the same period of 2024[17] - Total non-interest income for the three months ended September 30, 2025, was $21,021,000, slightly up from $20,365,000 in the same period of 2024[17] - Total non-interest expense for the three months ended September 30, 2025, was $88,117,000, down from $96,867,000 in the same period of 2024, indicating a decrease of 9.1%[17] - The company reported total losses for the nine months ended September 30, 2025, at $13,268 thousand, compared to $5,017 thousand for the same period in 2024[114] Stock Repurchase and Dividends - The Company announced a new stock repurchase program to buy back up to $150.0 million of its common stock[153] - Cash dividends paid per common share remained stable at $0.34 for both the three months ended September 30, 2025, and 2024[18] - The previous stock repurchase program of $125.0 million was completed on February 28, 2025, with 2,905,487 shares repurchased at an average cost of $43.02[153] - The company repurchased 1,070,000 shares of treasury stock during the three months ended September 30, 2025, at a cost of $50,585[19] Market and Growth Strategies - The company has plans for market expansion and potential acquisitions to enhance growth opportunities[10] - Future performance projections indicate a cautious optimism regarding loan and deposit growth amidst economic uncertainties[10] - The company is focused on managing risks associated with regulatory changes and market conditions[11] Securities and Fair Value - The total fair value of available-for-sale (AFS) securities decreased to $1,643.5 million as of September 30, 2025, down from $1,547.1 million as of December 31, 2024, a decline of 5.8%[40] - The total amortized cost of available-for-sale (AFS) securities was $1,728.2 million as of September 30, 2025, with a fair value of $1,643.5 million, reflecting a decrease in fair value of approximately 4.9%[40] - The fair value of interest rate swaps was $31.8 million as of September 30, 2025, compared to $36.3 million as of December 31, 2024[111] Economic and Regulatory Considerations - The company is focused on managing risks associated with regulatory changes and market conditions[11] - The company believes the allowance for credit losses is appropriate and reasonable as of the reporting date, despite the inherent imprecision in economic forecasts[84]

Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow and the companies that generate it, which leads to value and growth prospects with real potential [1] - Subscribers benefit from a model account featuring over 50 stocks, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Subscription Offer - A two-week free trial is available for new subscribers, allowing them to explore the oil and gas investment opportunities [2]

Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow and the companies that generate it, which leads to value and growth prospects with real potential [1] Group 1 - The service includes access to a 50+ stock model account, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] - Subscribers are offered a two-week free trial to explore the services related to oil and gas investments [2]

Group 1 - The company Cathay General Bancorp (NASDAQ: CATY) has maintained a hold rating since January 2025, with little change in stock price observed since then [1] - Despite the stock price stability, the company's earnings have exceeded expectations [1]

Group 1 - The company Cathay General Bancorp (NASDAQ: CATY) has maintained a hold rating since January 2025, with little change in stock price observed since then [1] - Despite the stock price stability, the company's earnings have exceeded expectations [1]

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