Cathay General Bancorp (CATY) Reports 11.5% Increase in Q2 Net Income

By Hao Liu • Wednesday, July 23 10:33 • Permanent Link

Cathay General Bancorp, the holding company for Cathay Bank, has reported its financial results for the second quarter of 2025. The company's net income for the quarter was $77.5 million, or $1.10 per diluted share, representing an increase of $8.0 million, or 11.5%, compared to the first quarter of 2025.

The return on average assets for the quarter ended June 30, 2025, stood at 1.33%, up from 1.22% in the first quarter of 2025. Meanwhile, the return on average total stockholders' equity was 10.72%, an increase from 9.84% in the first quarter of 2025.

The net interest margin increased to 3.27% during the second quarter from 3.25% in the first quarter of 2025. Total loans, excluding loans held for sale, increased to $19.78 billion, or 2.23%, from $19.35 billion in the first quarter of 2025. Additionally, total deposits saw an increase of $188.8 million, or 0.95%, reaching $20.01 billion in the second quarter of 2025.

The company also announced a new stock repurchase program during the quarter, repurchasing 804,179 common shares at an average cost of $44.22 per share, totaling $35.6 million.

In terms of non-interest income, which includes revenues from various sources, the company reported $15.4 million for the second quarter of 2025, an increase of $4.2 million, or 37.5%, compared to $11.2 million for the first quarter of 2025.

Non-interest expense increased $3.4 million, or 4.0%, to $89.1 million in the second quarter of 2025 compared to $85.7 million in the first quarter of 2025.

The company's gross loans, excluding loans held for sale, were $19.78 billion as of June 30, 2025, representing an increase of $431.7 million, or 2.23%, from $19.35 billion as of March 31, 2025.

Additionally, total deposits were $20.01 billion as of June 30, 2025, an increase of $188.8 million, or 1.0%, from $19.82 billion as of March 31, 2025.

The company's tier 1 risk-based capital ratio of 13.35%, total risk-based capital ratio of 14.92%, and tier 1 leverage capital ratio of 11.09%, calculated under the Basel III capital rules, continue to place the company in the "well capitalized" category for regulatory purposes.

Following these announcements, the company's shares moved -0.42%, and are now trading at a price of $47.89. Check out the company's full 8-K submission here.

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