Cathay General Bancorp(US:CATY)2026-01-22 22:19Financial Performance - For the year ended December 31, 2025, net income was $315.1 million, or $4.54 per diluted share, compared to $286.0 million, or $3.95 per diluted share for 2024[2][3] - Net income for the year ended December 31, 2025, was $315,124,000, compared to $285,979,000 for the year ended December 31, 2024, reflecting a 10.2% increase[32] - In the fourth quarter of 2025, net income increased by $12.8 million, or 16.5%, to $90.5 million compared to $77.7 million in the third quarter of 2025[5] - Net income for the three months ended December 31, 2025, was $90,517,000, an increase from $77,651,000 in the previous quarter, representing a growth of 16.8%[36] - Basic net income per common share for the three months ended December 31, 2025, was $1.34, compared to $1.13 in the prior quarter, reflecting an increase of 18.6%[36] Loans and Deposits - Total loans increased to $20.15 billion, a rise of $771.2 million, or 4.0%, from $19.38 billion as of December 31, 2024[17] - Total deposits rose by $1.20 billion, or 6.1%, to $20.89 billion in 2025, up from $19.69 billion in 2024[19] - Total gross loans outstanding increased by $771.2 million, or 4%, to $20.15 billion as of December 31, 2025, compared to $19.38 billion as of December 31, 2024[22] - Average loans for the three months ended December 31, 2025, were $20,103,677,000 with a yield of 6.05%, compared to $19,951,853,000 and 6.14% in the previous quarter[38] Asset Quality - The provision for credit losses was $17.2 million in the fourth quarter of 2025, a decrease from $28.7 million in the third quarter of 2025[11] - Total non-accrual loans decreased by $56.8 million, or 33.6%, to $112.4 million as of December 31, 2025, compared to $169.2 million a year earlier[20] - As of December 31, 2025, total non-performing assets decreased by $52.6 million, or 26.8%, to $143.7 million compared to $196.3 million as of December 31, 2024[22] - The ratio of non-performing assets to total assets was 0.59% as of December 31, 2025, down from 0.85% as of December 31, 2024[22] - The allowance for loan losses was $195.9 million, representing 0.97% of period-end gross loans as of December 31, 2025[21] Efficiency and Margins - The net interest margin improved to 3.36% in the fourth quarter of 2025, up from 3.31% in the third quarter of 2025[7][9] - The efficiency ratio improved to 41.36% in the fourth quarter of 2025, down from 41.84% in the third quarter of 2025[15] - The efficiency ratio for the year ended December 31, 2025, improved to 43.41% from 51.35% for the year ended December 31, 2024[25] - The efficiency ratio improved to 41.36% in Q4 2025 from 45.70% in Q4 2024, demonstrating better cost management[32] Capital and Equity - The Company's Tier 1 risk-based capital ratio was 13.27% as of December 31, 2025, remaining well above the regulatory minimum of 8%[23] - The Tier 1 risk-based capital ratio was 13.27% as of December 31, 2025, slightly up from 13.54% a year earlier, indicating strong capital position[32] - Stockholders' equity increased to $2,925,388 thousand as of December 31, 2025, up from $2,902,276 thousand as of September 30, 2025, and $2,845,704 thousand as of December 31, 2024[42] - The total stockholders' equity to total assets ratio was 12.07% as of December 31, 2025, slightly up from 12.05% in the previous quarter but down from 12.34% a year ago[42] Income and Expenses - Non-interest income for the fourth quarter of 2025 was $27.8 million, an increase of $6.8 million, or 32.2%, compared to $21.0 million in the third quarter of 2025[14] - Total non-interest expense for the three months ended December 31, 2025, was $92,156,000, compared to $88,117,000 in the prior quarter, indicating a rise of 3.9%[36] - Total interest and dividend income for the three months ended December 31, 2025, was $332,752,000, a slight decrease from $334,195,000 in the previous quarter[36] Other Metrics - Book value per common share increased to $43.53 as of December 31, 2025, up from $40.16 a year earlier, reflecting a 8.5% growth[34] - Return on average assets improved to 1.49% in Q4 2025 from 1.37% in Q4 2024, indicating enhanced asset utilization[32] - Tangible book value per share increased to $37.90 as of December 31, 2025, from $36.96 as of September 30, 2025, and $34.81 as of December 31, 2024[42]