EX-99.1 2 ex_873308.htm EXHIBIT 99.1 ex_873308.htm

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

 

For: Cathay General Bancorp Contact: Heng W. Chen
 

777 N. Broadway

Los Angeles, CA 90012

 (626) 279-3652

                                                                                                                     

                                                                            

Cathay General Bancorp Announces Third Quarter 2025 Results

 

Los Angeles, Calif., October 21, 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 September 30, 2025. The Company reported net income of $77.7 million, or $1.13 per diluted share, for the third quarter of 2025.

 

FINANCIAL PERFORMANCE

 

   

Three months ended

  

(unaudited)

  

September 30, 2025

    

June 30, 2025

    

September 30, 2024

  

Net income (in millions)

   $ 77.7     $ 77.5     $ 67.5  

Basic earnings per common share

   $ 1.13     $ 1.11     $ 0.94  

Diluted earnings per common share

   $ 1.13     $ 1.10     $ 0.94  

Return on average assets

     1.29 %     1.33 %     1.15 %

Return on average total stockholders' equity

     10.60 %     10.72 %     9.50 %

Efficiency ratio

     41.84 %     45.34 %     51.11 %

 

THIRD QUARTER HIGHLIGHTS

 

●

Net interest margin increased to 3.31% during the third quarter from 3.27% in the second quarter of 2025.

●

Total loans, excluding loans held for sale, increased to $20.10 billion, or 1.6%, from $19.78 billion in the second quarter of 2025.

●

Total deposits increased $514.8 million, or 2.6%, to $20.52 billion in the third quarter of 2025.

●

Provision for credit losses of $28.7 million for the third quarter of 2025, included an additional reserve of $9.1 million for two movie theatre loans and $3.8 million from a change in the CECL model.

 

“We are pleased by the continued increase in the net interest margin compared to the second quarter of 2025. During the third quarter, we repurchased 1,070,000 common shares at an average cost of $46.81 per share, for a total of $50.1 million.” commented Chang M. Liu, President and Chief Executive Officer of the Company.

 

 

INCOME STATEMENT REVIEW

THIRD QUARTER 2025 COMPARED TO THE SECOND QUARTER 2025

 

Net income for the quarter ended September 30, 2025, was $77.7 million, an increase of $0.2 million, or 0.3%, compared to net income of $77.5 million for the second quarter of 2025. Diluted earnings per share for the third quarter of 2025 was $1.13 per share compared to $1.10 per share for the second quarter of 2025.

 

Return on average stockholders’ equity was 10.60% and return on average assets was 1.29% for the quarter ended September 30, 2025, compared to a return on average stockholders’ equity of 10.72% and a return on average assets of 1.33% in the second quarter of 2025.

 

 
 

 

Net interest income before provision for credit losses

 

Net interest income before provision for credit losses increased $8.4 million, or 4.6%, to $189.6 million during the third quarter of 2025, compared to $181.2 million in the second quarter of 2025. The increase was due primarily to an increase in interest income from loans and securities offset, in part, by an increase in deposit expense.

 

The net interest margin was 3.31% for the third quarter of 2025 compared to 3.27% for the second quarter of 2025.

 

For the third quarter of 2025, the yield on average interest-earning assets was 5.84%, the cost of funds on average interest-bearing liabilities was 3.32%, and the cost of average interest-bearing deposits was 3.28%. In comparison, for the second quarter of 2025, the yield on average interest-earning assets was 5.83%, the cost of funds on average interest-bearing liabilities was 3.37%, and the cost of average interest-bearing deposits was 3.35%. The decrease in the cost of funds on average interest-bearing liabilities resulted mainly from lower interest rates on deposits driven by the lower repricing of maturing time deposits in the third quarter. The increase in the yield on average interest-earning assets resulted mainly from higher interest rates on loans. The net interest spread, defined as the difference between the yield on average interest-earning assets and the cost of funds on average interest-bearing liabilities, was 2.52% for the third quarter of 2025, compared to 2.46% for the second quarter of 2025.

 

Provision for credit losses

 

The Company recorded a provision for credit losses of $28.7 million in the third quarter of 2025 compared to $11.2 million in the second quarter of 2025. Provision for credit losses of $28.7 million for the third quarter of 2025 included an additional reserve of $9.1 million for two movie theatre loans and $3.8 million from a change in the CECL model. As of September 30, 2025, the allowance for credit losses increased by $13.1 million to $196.5 million, or 0.98% of gross loans, compared to $183.4 million, or 0.93% of gross loans as of June 30, 2025.

 

The following table sets forth the charge-offs and recoveries for the periods indicated:

 

   

Three months ended

    

Nine months ended September 30,

  

($ In thousands) (Unaudited)

  

September 30, 2025

    

June 30, 2025

    

September 30, 2024

    

2025

    

2024

  
                                         

Charge-offs:

                                        

Commercial loans

   $ 16,173     $ 9,117     $ 2,666     $ 27,634     $ 12,862  

Real estate loans (1)

     314       3,913       1,805       4,227       2,059  

Installment and other loans

     —       —       7       —       7  

Total charge-offs

     16,487       13,030       4,478       31,861       14,928  

Recoveries:

                                        

Commercial loans

     547       196       88       1,012       1,026  

Construction loans

     5       —       187       6       561  

Real estate loans (1)

     289       93       1       479       1  

Total recoveries

     841       289       276       1,497       1,588  

Net charge-offs

   $ 15,646     $ 12,741     $ 4,202     $ 30,364     $ 13,340  

 

(1)

Real estate loans include commercial real estate loans, residential mortgage loans and equity lines.

 

- 2 -
 

 

Non-interest income

 

Non-interest income, which includes revenues from depository service fees, letters of credit commissions, securities gains (losses), wealth management fees, and other sources of fee income, was $21.0 million for the third quarter of 2025, an increase of $5.6 million, or 36.4%, compared to $15.4 million for the second quarter of 2025. The increase was primarily due to an increase of $4.7 million in gain on equity securities and an increase of $1.3 million in wealth management fees, when compared to the second quarter of 2025.

 

Non-interest expense

 

Non-interest expense decreased $1.0 million, or 1.2%, to $88.1 million in the third quarter of 2025 compared to $89.1 million in the second quarter of 2025. The decrease in non-interest expense in the third quarter of 2025 was primarily due to a decrease of $1.5 million in professional services expense offset, in part, by an increase of $1.0 million in amortization expense of investments in low-income housing and alternative energy partnerships, when compared to the second quarter of 2025. The efficiency ratio, defined as non-interest expense divided by the sum of net interest income before provision for loan losses plus non-interest income, was 41.84% in the third quarter of 2025 compared to 45.34% for the second quarter of 2025.

 

Income taxes

 

The effective tax rate for the third quarter of 2025 was 17.18% compared to 19.56% for the second quarter of 2025. The effective tax rate for the second and third quarter of 2025 includes the impact of low-income housing tax credits.

 

BALANCE SHEET REVIEW

 

Gross loans, excluding loans held for sale, were $20.10 billion as of September 30, 2025, an increase of $320.0 million, or 1.62%, from $19.78 billion as of June 30, 2025. The increase was primarily due to an increase of $123.0 million, or 2.2%, in residential mortgage loans, $121.8 million, or 1.2%, in commercial real estate loans, $55.1 million, or 18.3%, in construction loans, and $18.2 million, or 0.6%, in commercial loans.

 

The loan balances and composition as of September 30, 2025, compared to June 30, 2025, and September 30, 2024, are presented below:

 

($ In thousands) (Unaudited)

  

September 30, 2025

    

June 30, 2025

    

September 30, 2024

  
                         

Commercial loans

   $ 3,212,907     $ 3,194,724     $ 3,106,994  

Construction loans

     356,215       301,125       307,057  

Commercial real estate loans

     10,484,939       10,363,109       9,975,272  

Residential mortgage loans

     5,815,140       5,692,142       5,750,546  

Equity lines

     232,254       230,001       226,838  

Installment and other loans

     3,261       3,601       6,886  

Gross loans

   $ 20,104,716     $ 19,784,702     $ 19,373,593  
                         

Allowance for loan losses

     (186,647 )     (173,531 )     (163,733 )

Unamortized deferred loan fees

     (14,987 )     (13,834 )     (10,505 )

Total loans held for investment, net

   $ 19,903,082     $ 19,597,337     $ 19,199,355  
                         

Loans held for sale

   $ —     $ 13,338     $ 5,190  

 

Total deposits were $20.52 billion as of September 30, 2025, an increase of $514.8 million, or 2.6%, from $20.01 billion as of June 30, 2025.

 

- 3 -
 

 

The deposit balances and composition as of September 30, 2025, compared to June 30, 2025, and September 30, 2024, are presented below:

 

($ In thousands) (Unaudited)

  

September 30, 2025

    

June 30, 2025

    

September 30, 2024

  
                         

Non-interest-bearing demand deposits

   $ 3,574,567     $ 3,381,407     $ 3,253,823  

NOW deposits

     2,226,182       2,174,108       2,093,861  

Money market deposits

     3,586,301       3,431,060       3,134,460  

Savings deposits

     1,424,243       1,317,104       1,215,974  

Time deposits

     9,709,856       9,702,651       10,245,823  

Total deposits

   $ 20,521,149     $ 20,006,330     $ 19,943,941  

 

ASSET QUALITY REVIEW

 

As of September 30, 2025, total non-accrual loans were $165.6 million, a decrease of $8.6 million, or 4.9%, from $174.2 million as of June 30, 2025.

 

The allowance for loan losses was $186.6 million and the allowance for off-balance sheet unfunded credit commitments was $9.9 million as of September 30, 2025. The allowances represent the amount estimated by management to be appropriate to absorb expected credit losses inherent in the loan portfolio, including unfunded credit commitments. The allowance for loan losses represented 0.93% of period-end gross loans, and 112.61% of non-performing loans as of September 30, 2025. The comparable ratios were 0.88% of period-end gross loans, and 96.12% of non-performing loans as of June 30, 2025.

 

The changes in non-performing assets and loan modifications to borrowers experiencing financial difficulty as of September 30, 2025, compared to June 30, 2025, and September 30, 2024, are presented below:

 

($ In thousands) (Unaudited)

  

September 30, 2025

    

June 30, 2025

    

%

Change

    

September 30, 2024

    

%

Change

  

Non-performing assets

                                        

Accruing loans past due 90 days or more

   $ 110     $ 6,389       (98 )   $ 6,931       (98 )
                                         

Non-accrual loans:

                                        

Construction loans

     —       4,230       (100 )     —       —  

Commercial real estate loans

     103,158       93,754       10       87,577       18  

Commercial loans

     33,690       54,536       (38 )     52,074       (35 )

Residential mortgage loans

     28,784       21,633       33       23,183       24  

Total non-accrual loans:

   $ 165,632     $ 174,153       (5 )   $ 162,834       2  

Total non-performing loans

     165,742       180,542       (8 )     169,765       (2 )

Other real estate owned

     32,983       18,990       74       18,277       80  

Total non-performing assets

   $ 198,725     $ 199,532       (0 )   $ 188,042       6  

Accruing loan modifications to borrowers experiencing
financial difficulties

   $ 63,355     $ 10,485       504     $ —       —  

Allowance for loan losses

   $ 186,647     $ 173,531       8     $ 163,733       14  

Total gross loans outstanding, at period-end

   $ 20,104,716     $ 19,784,702       2     $ 19,373,593       4  
                                         

Allowance for loan losses to non-performing loans, at period-end

     112.61 %     96.12 %             96.45 %        

Allowance for loan losses to gross loans, at period-end

     0.93 %     0.88 %             0.85 %        

 

The ratio of non-performing assets to total assets was 0.83% as of September 30, 2025, compared to 0.84% as of June 30, 2025. Total non-performing assets increased $0.8 million, or 0.4%, to $198.7 million as of September 30, 2025, compared to $199.5 million as of June 30, 2025, primarily due to an increase of $14.0 million, or 73.7%, in other real estate owned, offset, in part, by a decrease of $6.3 million, or 98.3%, in accruing loans past due 90 days or more and a decrease of $8.5 million, or 4.9%, in non-accrual loans.

 

- 4 -
 

 

CAPITAL ADEQUACY REVIEW

 

As of September 30, 2025, the Company’s Tier 1 risk-based capital ratio of 13.15%, total risk-based capital ratio of 14.76%, and Tier 1 leverage capital ratio of 10.88%, calculated under the Basel III capital rules, continue to place the Company in the “well capitalized” category for regulatory purposes, which is defined as institutions with a Tier 1 risk-based capital ratio equal to or greater than 8%, a total risk-based capital ratio equal to or greater than 10%, and a Tier 1 leverage capital ratio equal to or greater than 5%. As of June 30, 2025, the Company’s Tier 1 risk-based capital ratio was 13.35%, total risk-based capital ratio was 14.92%, and Tier 1 leverage capital ratio was 11.09%.

 

 

YEAR-TO-DATE REVIEW

 

Net income for the nine months ending September 30, 2025, was $224.6 million, an increase of $18.8 million, or 9.1%, compared to net income of $205.8 million for the same period a year ago. Diluted earnings per share for the nine months ending September 30, 2025, was $3.21 per share compared to $2.83 per share for the same period a year ago. The net interest margin for the nine months ended September 30, 2025, was 3.28% compared to 3.03% for the same period a year ago.

 

Return on average stockholders’ equity was 10.39% and return on average assets was 1.28% for the nine months ended September 30, 2025, compared to a return on average stockholders’ equity of 9.84% and a return on average assets of 1.18% for the same period a year ago. The efficiency ratio for the nine months ended September 30, 2025, was 44.18% compared to 53.28% for the same period a year ago.

 

- 5 -
 

 

CONFERENCE CALL

 

Cathay General Bancorp will host a conference call to discuss its third quarter 2025 financial results this afternoon, Tuesday, October 21, 2025, at 3:00 p.m., Pacific Time. Analysts and investors may dial in and participate in the question-and-answer session. To access the call, please dial 1-833-816-1377 and enter Conference ID 10203604. The presentation accompanying this call and access to the live webcast is available on our site at www.cathaygeneralbancorp.com and a replay of the webcast will be archived for one year within 24 hours after the event.

 

ABOUT CATHAY GENERAL BANCORP

 

Cathay General Bancorp is a publicly traded company (Nasdaq: CATY) and is the holding company for Cathay Bank, a California state-chartered bank.  Founded in 1962, Cathay Bank offers a wide range of financial services and currently operate over 60 branches across the United States in California, New York, Washington, Texas, Illinois, Massachusetts, Maryland, Nevada, and New Jersey. Overseas, it has a branch outlet in Hong Kong, and representative offices in Beijing, Shanghai, and Taipei. To learn more about Cathay Bank, please visit www.cathaybank.com. Cathay General Bancorp’s website is at www.cathaygeneralbancorp.com. Information set forth on such websites is not incorporated into this press release.

 

FORWARD-LOOKING STATEMENTS

 

Statements made in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995 regarding management’s beliefs, projections, and assumptions concerning future results and events. These forward-looking statements may include, but are not limited to, such words as “aims,” “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “hopes,” “intends,” “may,” “plans,” “projects,” “predicts,” “potential,” “possible,” “optimistic,” “seeks,” “shall,” “should,” “will,” and variations of these words and similar expressions. Forward-looking statements are based on estimates, beliefs, projections, and assumptions of management and are not guarantees of future performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. Such risks and uncertainties and other factors include, but are not limited to, adverse developments or conditions related to or arising from local, regional, national and international business, market and economic conditions and events, the potential for new or increased tariffs, trade restrictions or geopolitical tensions that could affect economic activity or specific industry sectors and the impact they may have on us, our customers and our operations, assets and liabilities; possible additional provisions for loan losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to including potential future supervisory action by bank supervisory authorities; increased costs of compliance and other risks associated with changes in regulation; higher capital requirements from the implementation of the Basel III capital standards; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; our ability to generate anticipated returns on our investments and financings, including in tax-advantaged projects; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; natural disasters, public health crises and geopolitical events; general economic or business conditions in Asia, and other regions where Cathay Bank has operations; failures, interruptions, or security breaches of our information systems; our ability to adapt our systems to technological changes; risk management processes and strategies; adverse results in legal proceedings; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in accounting standards or tax laws and regulations; market disruption and volatility; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; issuance of preferred stock; successfully raising additional capital, if needed, and the resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; and general competitive, economic political, and market conditions and fluctuations.

 

These and other factors are further described in Cathay General Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2024 (Item 1A in particular), other reports filed with the Securities and Exchange Commission (“SEC”), and other filings Cathay General Bancorp makes with the SEC from time to time. Actual results in any future period may also vary from the past results discussed in this press release. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we undertake no obligation to update or review any forward-looking statement to reflect circumstances, developments or events occurring after the date on which the statement is made or to reflect the occurrence of unanticipated events.

        

- 6 -
 

 

CATHAY GENERAL BANCORP

 

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

 

   

Three months ended

    

Nine months ended September 30,

  

($ In thousands, except per share data)

  

September 30, 2025

    

June 30, 2025

    

September 30, 2024

    

2025

    

2024

  
                                         

Financial performance

                                        

Net interest income before provision for credit losses

   $ 189,587     $ 181,221     $ 169,155     $ 547,447     $ 503,043  

Provision for credit losses

     28,731       11,200       14,500       55,431       23,000  

Net interest income after provision for credit losses

     160,856       170,021       154,655       492,016       480,043  

Non-interest income

     21,021       15,391       20,365       47,616       40,191  

Non-interest expense

     88,117       89,134       96,867       262,907       289,458  

Income before income tax expense

     93,760       96,278       78,153       276,725       230,776  

Income tax expense

     16,109       18,828       10,639       52,118       24,998  

Net income

   $ 77,651     $ 77,450     $ 67,514     $ 224,607     $ 205,778  
                                         

Net income per common share:

                                        

Basic

   $ 1.13     $ 1.11     $ 0.94     $ 3.22     $ 2.84  

Diluted

   $ 1.13     $ 1.10     $ 0.94     $ 3.21     $ 2.83  

Cash dividends paid per common share

   $ 0.34     $ 0.34     $ 0.34     $ 1.02     $ 1.02  
                                         
                                         

Selected ratios

                                        

Return on average assets

     1.29 %     1.33 %     1.15 %     1.28 %     1.18 %

Return on average total stockholders’ equity

     10.60 %     10.72 %     9.50 %     10.39 %     9.84 %

Efficiency ratio

     41.84 %     45.34 %     51.11 %     44.18 %     53.28 %

Dividend payout ratio

     29.93 %     30.79 %     36.04 %     31.59 %     35.87 %
                                         
                                         

Yield analysis (Fully taxable equivalent)

                                        

Total interest-earning assets

     5.84 %     5.83 %     6.10 %     5.85 %     6.05 %

Total interest-bearing liabilities

     3.32 %     3.37 %     3.99 %     3.38 %     3.95 %

Net interest spread

     2.52 %     2.46 %     2.11 %     2.47 %     2.10 %

Net interest margin

     3.31 %     3.27 %     3.04 %     3.28 %     3.03 %

 

Capital ratios

  

September 30, 2025

    

June 30, 2025

    

September 30, 2024

  

Tier 1 risk-based capital ratio

     13.15 %     13.35 %     13.32 %

Total risk-based capital ratio

     14.76 %     14.92 %     14.87 %

Tier 1 leverage capital ratio

     10.88 %     11.09 %     10.82 %

 

- 7 -
 

 

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

($ In thousands, except share and per share data)

  

September 30, 2025

    

June 30, 2025

    

September 30, 2024

  
                         

Assets

                        

Cash and due from banks

   $ 166,167     $ 190,011     $ 182,542  

Short-term investments and interest bearing deposits

     1,141,886       1,056,964       1,156,223  

Securities available-for-sale (amortized cost of $1,728,199 at September 30, 2025, $1,746,703 at June 30, 2025 and $1,602,696 at September 30, 2024)

     1,643,450       1,648,433       1,508,356  

Loans held for sale

     —       13,338       5,190  

Loans

     20,104,716       19,784,702       19,373,593  

Less:  Allowance for loan losses

     (186,647 )     (173,531 )     (163,733 )

Unamortized deferred loan fees, net

     (14,987 )     (13,834 )     (10,505 )

Loans, net

     19,903,082       19,597,337       19,199,355  

Equity securities

     32,111       28,849       35,741  

Federal Home Loan Bank stock

     17,250       17,250       17,250  

Other real estate owned, net

     32,983       18,990       18,277  

Affordable housing investments and alternative energy partnerships, net

     292,672       289,550       280,091  

Premises and equipment, net

     88,552       89,556       89,158  

Customers’ liability on acceptances

     7,730       9,622       12,043  

Accrued interest receivable

     96,055       96,646       95,351  

Goodwill

     375,696       375,696       375,696  

Other intangible assets, net

     2,667       2,888       3,590  

Right-of-use assets- operating leases

     31,086       32,291       30,543  

Other assets

     244,257       256,426       265,037  

Total assets

   $ 24,075,644     $ 23,723,847     $ 23,274,443  
                         

Liabilities and Stockholders’ Equity

                        

Deposits:

                        

Non-interest-bearing demand deposits

   $ 3,574,567     $ 3,381,407     $ 3,253,823  

Interest-bearing deposits:

                        

NOW deposits

     2,226,182       2,174,108       2,093,861  

Money market deposits

     3,586,301       3,431,060       3,134,460  

Savings deposits

     1,424,243       1,317,104       1,215,974  

Time deposits

     9,709,856       9,702,651       10,245,823  

Total deposits

     20,521,149       20,006,330       19,943,941  
                         

Advances from the Federal Home Loan Bank

     190,000       412,000       60,000  

Other borrowings for affordable housing investments

     17,628       17,652       17,783  

Long-term debt

     119,136       119,136       119,136  

Acceptances outstanding

     7,730       9,622       12,043  

Lease liabilities - operating leases

     33,079       34,304       32,906  

Other liabilities

     284,646       238,508       258,321  

Total liabilities

     21,173,368       20,837,552       20,444,130  

Stockholders' equity

     2,902,276       2,886,295       2,830,313  

Total liabilities and equity

   $ 24,075,644     $ 23,723,847     $ 23,274,443  
                         

Book value per common share

   $ 42.50     $ 41.62     $ 39.66  

Number of common shares outstanding

     68,286,591       69,343,395       71,355,869  

 

- 8 -
 

 

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

   

Three months ended

    

Nine months ended September 30,

  

($ In thousands, except share and per share data)

  

September 30, 2025

    

June 30, 2025

    

September 30, 2024

    

2025

    

2024

  
                                         

Interest and Dividend Income

                                        

Loan receivable, including loan fees

   $ 308,945     $ 296,857     $ 310,311     $ 899,786     $ 916,175  

Investment securities

     12,690       13,666       15,125       38,459       45,720  

Federal Home Loan Bank stock

     376       373       375       1,128       1,305  

Deposits with banks

     12,184       12,022       13,680       37,135       41,793  

Total interest and dividend income

     334,195       322,918       339,491       976,508       1,004,993  
                                         

Interest Expense

                                        

Time deposits

     93,087       94,364       119,786       283,517       347,408  

Other deposits

     46,300       44,370       45,918       133,104       133,218  

Advances from Federal Home Loan Bank

     3,075       742       1,885       5,721       13,517  

Long-term debt

     2,043       2,029       2,351       6,092       5,935  

Short-term borrowings

     103       192       396       627       1,872  

Total interest expense

     144,608       141,697       170,336       429,061       501,950  
                                         

Net interest income before provision for credit losses

     189,587       181,221       169,155       547,447       503,043  

Provision for credit losses

     28,731       11,200       14,500       55,431       23,000  

Net interest income after provision for credit losses

     160,856       170,021       154,655       492,016       480,043  
                                         

Non-Interest Income

                                        

Net gain/(losses) from equity securities

     3,263       (1,390 )     4,253       (2,318 )     (6,204 )

Debt securities gains, net

     —       —       —       —       1,107  

Letters of credit commissions

     2,256       2,120       2,081       6,467       5,686  

Depository service fees

     2,011       1,925       1,572       5,688       4,900  

Wealth management fees

     6,219       4,936       6,545       17,324       17,861  

Other operating income

     7,272       7,800       5,914       20,455       16,841  

Total non-interest income

     21,021       15,391       20,365       47,616       40,191  
                                         

Non-Interest Expense

                                        

Salaries and employee benefits

     43,462       43,123       40,859       129,012       124,850  

Occupancy expense

     6,104       5,950       5,938       17,791       17,557  

Computer and equipment expense

     5,760       5,160       4,753       16,974       15,212  

Professional services expense

     7,360       8,888       7,021       23,696       22,225  

Data processing service expense

     3,991       4,631       4,330       13,028       12,136  

FDIC and State assessments

     2,783       3,177       3,250       9,359       13,081  

Marketing expense

     1,494       1,113       1,614       4,485       5,002  

Other real estate owned (income)/expense

     (1,078 )     (377 )     596       (1,211 )     2,331  

Amortization of investments in low income housing and alternative energy partnerships

     12,149       11,179       24,077       32,382       61,905  

Amortization of core deposit intangibles

     229       250       250       729       848  

Other operating expense

     5,863       6,040       4,179       16,662       14,311  

Total non-interest expense

     88,117       89,134       96,867       262,907       289,458  
                                         

Income before income tax expense

     93,760       96,278       78,153       276,725       230,776  

Income tax expense

     16,109       18,828       10,639       52,118       24,998  

Net income

   $ 77,651     $ 77,450     $ 67,514     $ 224,607     $ 205,778  

Net income per common share:

                                        

Basic

   $ 1.13     $ 1.11     $ 0.94     $ 3.22     $ 2.84  

Diluted

   $ 1.13     $ 1.10     $ 0.94     $ 3.21     $ 2.83  
                                         

Cash dividends paid per common share

   $ 0.34     $ 0.34     $ 0.34     $ 1.02     $ 1.02  

Basic average common shares outstanding

     68,727,390       69,989,825       71,786,624       69,692,964       72,370,995  

Diluted average common shares outstanding

     68,990,648       70,188,902       72,032,456       69,946,877       72,607,550  

 

- 9 -
 

 

CATHAY GENERAL BANCORP

AVERAGE BALANCES – SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited)

 

   

Three months ended

          

($ In thousands)(Unaudited)

  

September 30, 2025

    

June 30, 2025

    

September 30, 2024

  

Interest-earning assets:

  

Average

Balance

    

Average

Yield/Rate (1)

    

Average Balance

    

Average

Yield/Rate (1)

    

Average Balance

    

Average

Yield/Rate (1)

  

Loans (1)

   $ 19,951,853       6.14 %   $ 19,489,400       6.11 %   $ 19,455,521       6.35 %

Taxable investment securities

     1,634,248       3.08 %     1,622,309       3.38 %     1,638,414       3.67 %

FHLB stock

     17,250       8.65 %     17,250       8.65 %     17,250       8.65 %

Deposits with banks

     1,113,274       4.34 %     1,102,579       4.37 %     1,035,534       5.26 %

Total interest-earning assets

   $ 22,716,625       5.84 %   $ 22,231,538       5.83 %   $ 22,146,719       6.10 %
                                                 

Interest-bearing liabilities:

                                                

Interest-bearing demand deposits

   $ 2,189,376       1.70 %   $ 2,133,874       1.71 %   $ 2,134,807       2.10 %

Money market deposits

     3,556,374       3.44 %     3,464,685       3.44 %     3,073,384       3.75 %

Savings deposits

     1,419,953       1.72 %     1,343,043       1.67 %     1,212,870       1.85 %

Time deposits

     9,698,744       3.81 %     9,692,056       3.91 %     10,250,601       4.65 %

Total interest-bearing deposits

   $ 16,864,447       3.28 %   $ 16,633,658       3.35 %   $ 16,671,662       3.95 %

Other borrowed funds

     295,892       4.26 %     103,059       3.63 %     186,838       4.86 %

Long-term debt

     119,136       6.80 %     119,136       6.83 %     119,136       7.85 %

Total interest-bearing liabilities

     17,279,475       3.32 %     16,855,853       3.37 %     16,977,636       3.99 %

Non-interest-bearing demand deposits

     3,384,141               3,331,433               3,230,150          

Total deposits and other borrowed funds

   $ 20,663,616             $ 20,187,286             $ 20,207,786          
                                                 

Total average assets

   $ 23,843,380             $ 23,349,928             $ 23,353,025          

Total average equity

   $ 2,907,596             $ 2,898,960             $ 2,828,379          

 

(1)

Yields and interest earned include net loan fees. Non-accrual loans are included in the average balance.

 

 

   

Nine months ended

  

($ In thousands)(Unaudited)

  

September 30, 2025

    

September 30, 2024

  

Interest-earning assets:

  

Average

Balance

    

Average

Yield/Rate (1)

    

Average Balance

    

Average

Yield/Rate (1)

  

Loans (1)

   $ 19,593,553       6.14 %   $ 19,464,496       6.29 %

Taxable investment securities

     1,572,074       3.27 %     1,647,968       3.71 %

FHLB stock

     17,250       8.74 %     19,162       9.10 %

Deposits with banks

     1,139,060       4.36 %     1,042,413       5.36 %

Total interest-earning assets

   $ 22,321,937       5.85 %   $ 22,174,039       6.05 %
                                 

Interest-bearing liabilities:

                                

Interest-bearing demand deposits

   $ 2,155,336       1.69 %   $ 2,205,108       2.12 %

Money market deposits

     3,468,421       3.43 %     3,134,940       3.69 %

Savings deposits

     1,351,352       1.65 %     1,099,331       1.42 %

Time deposits

     9,658,300       3.92 %     10,053,062       4.62 %

Total interest-bearing deposits

   $ 16,633,409       3.35 %   $ 16,492,441       3.89 %
                                 

Other borrowed funds

     204,953       4.14 %     383,563       5.36 %

Long-term debt

     119,136       6.84 %     119,136       6.65 %

Total interest-bearing liabilities

     16,957,498       3.38 %     16,995,140       3.95 %

Non-interest-bearing demand deposits

     3,340,530               3,271,913          

Total deposits and other borrowed funds

   $ 20,298,028             $ 20,267,053          
                                 

Total average assets

   $ 23,462,799             $ 23,380,360          

Total average equity

   $ 2,890,581             $ 2,794,384          

 

(1)

Yields and interest earned include net loan fees. Non-accrual loans are included in the average balance.

 

- 10 -
 

 

CATHAY GENERAL BANCORP

GAAP to NON-GAAP RECONCILIATION

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited)

 

The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible equity and tangible equity to tangible assets ratio are non-GAAP financial measures. Tangible equity and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios is prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.

 

     

As of

  

($ In thousands) (Unaudited)

    

September 30, 2025

    

June 30, 2025

    

September 30, 2024

  
                           

Stockholders' equity

(a)

   $ 2,902,276     $ 2,886,295     $ 2,830,313  

Less: Goodwill

     (375,696 )     (375,696 )     (375,696 )

Other intangible assets (1)

     (2,667 )     (2,888 )     (3,590 )

Tangible equity

(b)

   $ 2,523,913     $ 2,507,711     $ 2,451,027  
                           

Total assets

(c)

   $ 24,075,644     $ 23,723,847     $ 23,274,443  

Less: Goodwill

     (375,696 )     (375,696 )     (375,696 )

Other intangible assets (1)

     (2,667 )     (2,888 )     (3,590 )

Tangible assets

(d)

   $ 23,697,281     $ 23,345,263     $ 22,895,157  
                           

Number of common shares outstanding

(e)

     68,286,591       69,343,395       71,355,869  
                           

Total stockholders' equity to total assets ratio

(a)/(c)

     12.05 %     12.17 %     12.16 %

Tangible equity to tangible assets ratio

(b)/(d)

     10.65 %     10.74 %     10.71 %

Tangible book value per share

(b)/(e)

   $ 36.96     $ 36.16     $ 34.35  

 

     

Three Months Ended

    

Nine months ended

  

($ In thousands) (Unaudited)

    

September 30, 2025

    

June 30, 2025

    

September 30, 2024

    

September 30, 2025

    

September 30, 2024

  
                                           

Net Income

   $ 77,651     $ 77,450     $ 67,514     $ 224,607     $ 205,778  

Add: Amortization of other intangibles (1)

     249       285       264       816       863  

Tax effect of amortization adjustments (2)

     (74 )     (85 )     (78 )     (242 )     (256 )

Tangible net income

(f)

   $ 77,826     $ 77,650     $ 67,700     $ 225,181     $ 206,385  
                                           

Return on tangible common equity (3)

(f)/(b)

     12.33 %     12.39 %     11.05 %     11.90 %     11.23 %

                       

(1)

Includes core deposit intangibles and mortgage servicing

(2)

Applied the statutory rate of 29.65%.

(3)

Annualized

 

- 11 -