Cathay General Bancorp(US:CATY)2025-05-09 20:28Financial 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].