Cathay General Bancorp(US:CATY)2025-11-07 21:57Financial 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]