Cathay General Bancorp(CATY)2025-05-09 20:28Financial Performance - Net income for the first quarter of 2025 was 71,435 thousand in Q1 2024[18]. - Basic net income per common share of 0.98 in Q1 2024[19]. - Total comprehensive income for Q1 2025 was 64,572 thousand in Q1 2024, an increase of 29.1%[18]. - Net income for Q1 2025 was 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 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 5.315 million in Q1 2024[146]. Asset and Deposit Growth - Total assets increased to 23,054,681 thousand at December 31, 2024, reflecting a growth of 0.65%[15]. - Total deposits rose to 19,686,199 thousand at the end of 2024, marking an increase of 0.66%[15]. - Cash and due from banks increased 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 1,175,935,000 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 1,900 thousand in Q1 2024, indicating a heightened risk environment[18]. - The allowance for loan losses increased 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 19,375,955 thousand as of December 31, 2024, representing a decline of approximately 0.12%[48]. - The recorded investment in non-accrual loans was 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 93,239 thousand in Q1 2024, a reduction of 8.1%[18]. - Cash dividends paid were 24,708,000 in Q1 2024[23]. - The company maintained a cash dividend of 46.83, totaling 2,865,159 thousand as of March 31, 2025, compared to 2.87 billion as of March 31, 2025, up by 2.85 billion as of December 31, 2024, driven by net 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 1,434,040 thousand, reflecting a decrease in fair value of approximately 6.6%[40]. - The company recognized an unrealized 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 1,620.5 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].