Financial Data and Key Metrics Changes - The company reported a net income of $77.4 million for Q2 2025, an 11.4% increase compared to $69.5 million for Q1 2025 [6][14] - Diluted earnings per share increased by 12.2% to $1.10 for Q2 2025 from $0.98 in Q1 2025 [6] - Net interest margin increased from 2.25% in Q1 2025 to 3.27% in Q2 2025, attributed to a lower cost of funds [14][17] - Total deposits increased by $189 million or 3.8% annualized during Q2 2025 [12] Business Line Data and Key Metrics Changes - Total gross loans increased by $432 million or 8.9% annualized, driven by increases in commercial loans, commercial real estate loans, and residential loans [6][12] - Noninterest income for Q2 2025 increased by $4.2 million to $15.4 million compared to $11.2 million in Q1 2025 [15] - Noninterest expense increased by 4% to $89.1 million in Q2 2025 from $85.7 million in Q1 2025 [16] Market Data and Key Metrics Changes - The average loan-to-value ratio for commercial real estate loans remained at 49% as of June 30, 2025 [9] - Nonaccrual loans were 0.9% of total loans as of June 30, 2025, increasing by $19.6 million compared to Q1 2025 [11] Company Strategy and Development Direction - The company revised its 2025 loan growth guidance to 3% to 4% from a previous range of 1% to 4% due to strong Q2 loan growth [7] - The management emphasized a balanced growth in both commercial and industrial (C&I) loans and commercial real estate [29] Management Comments on Operating Environment and Future Outlook - Management expressed caution regarding the economic landscape, noting potential impacts from external factors such as terrorism and CPI adjustments [29] - The company is optimistic about maintaining a strong pipeline for the second half of the year [29] Other Important Information - The effective tax rate for Q2 2025 was 19.56%, with guidance updated to between 18.5% to 19% due to recent California tax legislation [17] - The company has an unused borrowing capacity from the Federal Home Loan Bank of $7 billion and the Federal Reserve Bank of $1.5 billion as of June 30, 2025 [13] Q&A Session Summary Question: Impact of California state tax change on income tax rate - The CFO confirmed a direct impact of $3.4 million due to writing off a portion of the deferred tax asset [20] Question: Allowance for Credit Losses (ACL) refill drivers - The CFO explained that the refill was primarily driven by economic factors in Moody's model rather than specific portfolio issues [21][23] Question: Loan growth guidance and pipeline outlook - Management indicated a strong pipeline for the second half of the year but maintained caution regarding potential loan demand drops [29][30] Question: Federal Home Loan Bank borrowing details - The CFO clarified that the recent borrowings were mainly two-week borrowings at a rate of approximately 4.6% [32] Question: Increase in classified loans - The CFO noted that the increase was due to one commercial relationship experiencing cash flow issues, but they are expected to catch up [37][39]

Financial Data and Key Metrics Changes - The company reported a net income of $77.4 million for Q2 2025, an 11.4% increase compared to $69.5 million for Q1 2025 [6][14] - Diluted earnings per share increased 12.2% to $1.10 for Q2 2025 from $0.98 in Q1 2025 [6] - Net interest margin increased from 2.25% in Q1 2025 to 3.27% in Q2 2025, attributed to a lower cost of funds [14][16] - Total gross loans increased by $432 million or 8.9% annualized during Q2 2025 [6][12] Business Line Data and Key Metrics Changes - Commercial loans increased by $196 million, commercial real estate loans by $202 million, and residential loans by $69 million, while construction loans decreased by $32 million [6] - Noninterest income for Q2 2025 increased by $4.2 million to $15.4 million compared to $11.2 million in Q1 2025, driven by changes in unrealized losses on equity securities and higher foreign exchange income [15] - Noninterest expense increased by 4% to $89.1 million in Q2 2025 from $85.7 million in Q1 2025 [15] Market Data and Key Metrics Changes - Total deposits increased by $189 million or 3.8% annualized during Q2 2025, primarily due to increases in core deposits and time deposits [12] - As of June 30, 2025, total uninsured deposits were $8.7 billion, representing 43.3% of total deposits [12] Company Strategy and Development Direction - The company revised its 2025 loan growth guidance to 3% to 4% from a previous range of 1% to 4% due to strong loan growth in Q2 2025 [7] - The company continues to monitor its commercial real estate loans, with an average loan-to-value ratio of 49% as of June 30, 2025 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the loan pipeline for the second half of the year, citing balanced growth in both commercial and industrial sectors [27] - The company is cautious about potential economic factors that could impact loan demand, including inflation and geopolitical issues [27] Other Important Information - The effective tax rate for Q2 2025 was 19.56%, with guidance updated to between 18.5% to 19% due to recent California tax legislation [16] - The company has an unused borrowing capacity from the Federal Home Loan Bank of $7 billion and the Federal Reserve Bank of $1.5 billion as of June 30, 2025 [13] Q&A Session Summary Question: Impact of California state tax change on income tax rate - Management confirmed a direct impact of $3.4 million from writing off a portion of the deferred tax asset due to lower state apportionment [19] Question: Allowance for Credit Losses (ACL) refill drivers - The refill was primarily driven by economic factors in Moody's model, with an increase in unemployment and loan growth contributing to the adjustment [20][22] Question: Loan growth guidance and pipeline outlook - Management indicated a strong pipeline for the second half of the year but maintained caution regarding economic conditions that could affect loan demand [27][28] Question: Increase in classified loans - The increase was attributed to one commercial relationship facing cash flow issues, with expectations for the borrower to become current by the end of Q3 [34][35]

Cathay General (CATY) came out with quarterly earnings of $1.1 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.97 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this holding company for Cathay Bank would post earnings of $0.95 per share when it actually produced earnings of $0.98, delivering a surprise of +3.16%.Over the last four quarters, the company has surpassed consensus EPS estimates two times.Cathay, ...

Financial Performance - Net income for the second quarter of 2025 was $77.4 million, with diluted EPS of $1.10[5, 64] - Return on average assets (ROAA) was 1.15% and return on average equity (ROAE) was 9.84% for 2Q25[5] - Pre-Tax Pre-Provision (PTPP) income was $119 million, with a PTPP ratio of 2.03%[8] - Net interest income increased to $181.2 million, a 3% increase compared to the previous quarter[64] - Total noninterest income was $15.4 million, a 37% increase compared to the previous quarter[64] Balance Sheet - Total assets reached $23.724 billion, a $520 million increase from the previous quarter[11] - Gross loans, net of fees, amounted to $19.771 billion, a $430 million increase from the previous quarter[11] - Total deposits reached $20.006 billion, a $189 million increase from the previous quarter[11] - The net loans-to-deposit ratio was 98%[13] Loan Portfolio - Total loans amounted to $19.8 billion, with Commercial Real Estate (CRE) comprising 52% of the portfolio[9, 15] - Average loan growth quarter-over-quarter annualized was +1.6%[15] - The total CRE portfolio was $10.4 billion, with a weighted average LTV of 49%[15, 29]

Exhibit 99.1 FOR IMMEDIATE RELEASE For: Cathay General Bancorp Contact:Heng W. Chen 777 N. Broadway Los Angeles, CA 90012 Cathay General Bancorp Announces Second Quarter 2025 Results Los Angeles, Calif., July 22, 2025: Cathay General Bancorp (the "Company", "we", "us", or "our") (Nasdaq: CATY), the holding company for Cathay Bank, today 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, for the second q ...

Core Viewpoint - Cathay General (CATY) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on July 22, with a consensus EPS estimate of $1.10 per share, reflecting a year-over-year increase of +13.4% [3]. - Revenues are projected to reach $196 million, which is a 9.8% increase from the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 0.44% higher, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for Cathay is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.76%, suggesting a bullish outlook on the company's earnings prospects [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. - Cathay currently holds a Zacks Rank of 2, which, combined with the positive Earnings ESP, suggests a high likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Cathay exceeded the expected earnings of $0.95 per share by delivering $0.98, resulting in a surprise of +3.16% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14].

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

Industry Overview - A number of regional banks have announced significant new share buyback authorizations, indicating a level of industry-wide confidence and suggesting these firms are well-capitalized to return excess funds to shareholders [1][17]. Fifth Third Bancorp (FITB) - Fifth Third Bancorp has initiated a buyback program allowing for the repurchase of up to 100 million shares, representing approximately 15% of its outstanding shares as of June 20 [2]. - The bank's Common Equity Tier 1 (CET1) ratio is nearly 10.5%, exceeding the regulatory requirement of approximately 7.7%, which supports its ability to buy back shares [5][6]. - The firm generates around $1 billion in cash flow per quarter from its bond portfolio, further bolstering its confidence in executing buybacks [7]. Citizens Financial Group (CFG) - Citizens Financial Group has increased its share buyback authorization to $1.5 billion, which is about 8.3% of its market capitalization [9]. - The company's CET1 ratio stands at 10.6%, reflecting strong financial performance and confidence in its capital return strategy [9]. Cathay General Bancorp (CATY) - Cathay General Bancorp announced a $150 million share repurchase program, equating to around 5% of its $3 billion market cap [11]. - The bank's CET1 ratio is nearly 13.6%, indicating strong capital strength to support ongoing shareholder returns [12]. Third Coast Bancshares (TCBX) - Third Coast Bancshares announced a $30 million buyback authorization, which is approximately 7.1% of its $424 million market cap [14]. - The company's CET1 ratio has improved to 8.7%, up from 8% a year ago, indicating enhanced financial stability [15]. RBB Bancorp (RBB) - RBB Bancorp announced an $18 million buyback program, equal to around 6.2% of its $291 million market cap [16]. - The company's CET1 ratio is approximately 17.9%, showcasing strong capital adequacy [16].

Financial Performance - Net income for the first quarter of 2025 was $69,506 thousand, down 2.6% from $71,435 thousand in Q1 2024[18]. - Basic net income per common share of $0.99 for Q1 2025, slightly up from $0.98 in Q1 2024[19]. - Total comprehensive income for Q1 2025 was $83,366 thousand, compared to $64,572 thousand in Q1 2024, an increase of 29.1%[18]. - Net income for Q1 2025 was $69,506,000, a decrease from $71,435,000 in Q1 2024, representing a decline of approximately 2%[32]. - Non-interest income for the three months ended March 31, 2025, was $11.2 million, a significant increase from $6.6 million in the same period of 2024, reflecting a growth of approximately 69.5%[146]. - The company reported a non-interest loss of $1.884 million for Q1 2025, an improvement from a loss of $5.315 million in Q1 2024[146]. Asset and Deposit Growth - Total assets increased to $23,205,022 thousand as of March 31, 2025, compared to $23,054,681 thousand at December 31, 2024, reflecting a growth of 0.65%[15]. - Total deposits rose to $19,817,528 thousand as of March 31, 2025, up from $19,686,199 thousand at the end of 2024, marking an increase of 0.66%[15]. - Cash and due from banks increased to $175,027 thousand as of March 31, 2025, compared to $157,167 thousand at December 31, 2024, reflecting a growth of 11.4%[15]. - The company reported an increase in cash, cash equivalents, and restricted cash to $1,384,514,000 as of March 31, 2025, compared to $1,175,935,000 at the end of Q1 2024, marking an increase of approximately 17.7%[23]. Credit Losses and Provisions - The provision for credit losses increased significantly to $15,500 thousand in Q1 2025, compared to only $1,900 thousand in Q1 2024, indicating a heightened risk environment[18]. - The allowance for loan losses increased to $173,936 thousand as of March 31, 2025, compared to $161,765 thousand as of December 31, 2024, reflecting an increase of approximately 7.5%[48]. - The allowance for credit losses (ACL) is based on management's estimates of lifetime expected credit losses, considering historical experience and economic forecasts[73]. Loan Performance - Total gross loans amounted to $19,353,003 thousand, a slight decrease from $19,375,955 thousand as of December 31, 2024, representing a decline of approximately 0.12%[48]. - The recorded investment in non-accrual loans was $154.6 million as of March 31, 2025, down from $169.2 million as of December 31, 2024, indicating a reduction of about 8.5%[48]. - Non-accrual loans represented 11.9% of the contractual balances as of March 31, 2025, slightly up from 11.8% as of December 31, 2024[48]. - The company has no specific industry concentration, with loan clients primarily located in high-density Asian-populated areas across several major U.S. cities and Hong Kong[47]. Expenses and Dividends - Non-interest expense decreased to $85,656 thousand in Q1 2025, down from $93,239 thousand in Q1 2024, a reduction of 8.1%[18]. - Cash dividends paid were $23,855,000 in Q1 2025, slightly down from $24,708,000 in Q1 2024[23]. - The company maintained a cash dividend of $0.34 per common share for both Q1 2025 and Q1 2024, indicating stable dividend policy[19]. Stock and Equity - The company repurchased 876,906 shares at an average cost of $46.83, totaling $41.1 million, completing its stock buyback program initiated in May 2024[156]. - The total stockholders' equity rose to $2,865,159 thousand as of March 31, 2025, compared to $2,845,704 thousand at the end of 2024, an increase of 0.68%[15]. - Total equity increased to $2.87 billion as of March 31, 2025, up by $19.5 million from $2.85 billion as of December 31, 2024, driven by net income of $69.5 million and other comprehensive income of $13.9 million[153]. Securities and Fair Value - As of March 31, 2025, the total amortized cost of available-for-sale (AFS) securities was $1,535,896 thousand, with a fair value of $1,434,040 thousand, reflecting a decrease in fair value of approximately 6.6%[40]. - The company recognized an unrealized net loss of $4.2 million for equity securities in Q1 2025, a significant improvement compared to a net loss of $9.0 million in Q1 2024[42]. - The total fair value of financial assets measured at fair value on a recurring basis as of March 31, 2025, was $1,495.8 million, compared to $1,620.5 million as of December 31, 2024[110]. Economic Outlook and Strategy - The company plans to continue expanding its market presence, particularly in affordable housing investments[25]. - The company expects loans to be paid off from borrowers' operating profits, refinancing, or sale of secured collateral, indicating a focus on borrower performance for loan recovery[47]. - The company has adopted ASU 2022-02, impacting the accounting for troubled debt restructurings and allowing for a more tailored approach to loan modifications[54].

Group 1 - The article discusses the challenges faced by Cathay General Bancorp in increasing its net interest margin due to high deposit costs and a loan-to-deposit ratio close to 100% [1] - The management's limited flexibility in adjusting financial strategies is highlighted, indicating potential difficulties in improving profitability [1] Group 2 - The author emphasizes a fundamental analysis approach, focusing on actual company performance rather than market trends, which is crucial for long-term investment strategies [1] - The article serves as a platform for sharing insights and engaging with the investment community, reflecting the author's commitment to continuous learning in the financial markets [1]