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Cathay General Bancorp Reports 10.2% Increase in Net Income

Cathay General Bancorp has announced its unaudited financial results for the fourth quarter and full year ended December 31, 2025. The company reported a net income of $315.1 million for the year, an increase of $29.1 million or 10.2% compared to the previous year.

In the fourth quarter of 2025, Cathay General Bancorp reported a net income of $90.5 million, a 16.5% increase compared to the third quarter of 2025. The basic earnings per common share for the fourth quarter of 2025 were $1.34, compared to $1.13 for the third quarter of 2025.

The net interest margin increased to 3.36% during the fourth quarter from 3.31% in the third quarter. Total loans, excluding loans held for sale, increased to $20.15 billion, or 4.0%, from $19.38 billion in 2024. Total deposits also saw an increase of $1.20 billion, or 6.1%, reaching $20.89 billion in 2025, from $19.69 billion in 2024.

The company repurchased 1,099,803 shares at an average cost of $47.15 per share for a total of $51.9 million during the fourth quarter of 2025.

The net interest income before provision for credit losses increased $5.4 million, or 2.9%, to $195.0 million during the fourth quarter of 2025, compared to $189.6 million in the third quarter of 2025. The net interest margin was 3.36% for the fourth quarter of 2025 compared to 3.31% for the third quarter of 2025.

Non-interest income, which includes revenues from various sources, was $27.8 million for the fourth quarter of 2025, an increase of $6.8 million, or 32.2%, compared to $21.0 million for the third quarter of 2025.

Furthermore, the company's tier 1 risk-based capital ratio of 13.27%, total risk-based capital ratio of 14.93%, and tier 1 leverage capital ratio of 10.91% as of December 31, 2025, continue to place the company in the "well capitalized" category for regulatory purposes.

The market has reacted to these announcements by moving the company's shares -0.02% to a price of $50.80. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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