Cathay General Bancorp has recently released its 10-Q report, providing insights into its financial performance. The company operates as the holding company for Cathay Bank, offering various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. It provides savings and checking accounts, loan products, trade financing, and investment services, among others. As of June 30, 2025, the company's total loans, excluding loans held for sale, increased to $19.78 billion, and total deposits increased to $20.01 billion from December 31, 2024.
In the 10-Q report, the management's discussion and analysis of financial condition and results of operations highlighted several key points. The net interest margin increased to 3.27% during the second quarter of 2025 from 3.01% in the second quarter of 2024. Total loans witnessed a 2.11% increase, reaching $19.78 billion. Additionally, total deposits increased by $320.1 million, amounting to $20.01 billion as of June 30, 2025. The net income for the quarter ended June 30, 2025, was $77.5 million, marking a 16.0% increase compared to the same quarter a year ago. Diluted earnings per share for the quarter were $1.10, up from $0.92 per share for the same quarter a year ago.
Furthermore, the net interest income before provision for credit losses increased by $15.9 million, or 9.6%, to $181.2 million during the second quarter of 2025. The provision for credit losses was $11.2 million in the second quarter of 2025, compared with $6.6 million in the second quarter of 2024. The non-interest income was $15.4 million for the second quarter of 2025, indicating a 16.7% increase compared to the same period a year ago.
Non-interest expense decreased by $10.3 million, or 10.4%, to $89.1 million in the second quarter of 2025 compared to $99.4 million in the same quarter a year ago. The efficiency ratio was 45.34% in the second quarter of 2025 compared to 55.65% for the same quarter a year ago. The effective tax rate for the second quarter of 2025 was 19.6% compared to 7.9% for the second quarter of 2024.
Following these announcements, the company's shares moved 1.39%, and are now trading at a price of $45.40. Check out the company's full 10-Q submission here.
