Cathay General Bancorp: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 22 January 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Fourth-quarter net income up 16.5%: Fourth-quarter net income was $90.5 million, up $12.8 million or 16.5% from $77.7 million in the third quarter. Source
• Net interest margin up to 3.36%: Net interest margin was 3.36% in the fourth quarter, up from 3.31% in the third quarter. Source
• Net interest income up 2.9%: Net interest income before provision was $195.0 million, up $5.4 million or 2.9%. The increase came mainly from lower deposit interest expense, partly offset by lower loan and securities income. Source
• Gross loans reached $20.15 billion: Gross loans rose $771.2 million or 4.0% from a year earlier. The fourth quarter added $42.5 million, or 0.9% annualized. Source
• Deposits up 6.1% to $20.89 billion: Total deposits were $20.89 billion, up $1.20 billion or 6.1% from a year earlier and up from $20.52 billion at September 30, 2025. Source
• Non-accrual loans down 33.6% year over year: Non-accrual loans were $112.4 million, down $56.8 million or 33.6% from a year earlier and down $53.2 million from September 30, 2025. Source
• Provision for credit losses fell to $17.2 million: The provision was $17.2 million in the fourth quarter, down from $28.7 million in the third quarter. Source

“We are pleased by the continued increase in the net interest margin compared to the third quarter of 2025 and fourth quarter of 2024.”

Chang M. Liu, President and Chief Executive Officer

Full-year and fourth-quarter results

• Full-year net income up 10.2%: Full-year net income was $315.1 million, up $29.1 million or 10.2% from $286.0 million in 2024. Source
• Fourth-quarter net income up 16.5%: Fourth-quarter net income was $90.5 million, up $12.8 million or 16.5% from $77.7 million in the third quarter. Source
• Fourth-quarter diluted EPS $1.33: Diluted earnings per share were $1.33 for the fourth quarter, against $1.13 in the third quarter. Source
• Full-year efficiency ratio at 43.41%: The full-year efficiency ratio was 43.41%, against 51.35% for 2024. The ratio divides non-interest expense by net interest income before provision plus non-interest income. Source

Net interest margin and funding

• Net interest margin up to 3.36%: Net interest margin was 3.36% in the fourth quarter, up from 3.31% in the third quarter. Source
• Full-year margin up to 3.30%: The net interest margin for 2025 was 3.30%, compared with 3.04% for 2024. Source
• Net interest income up 2.9%: Net interest income before provision was $195.0 million, up $5.4 million or 2.9%. The increase came mainly from lower deposit interest expense, partly offset by lower loan and securities income. Source
• Deposit costs fell with time deposit repricing: Cost of average interest-bearing deposits was 3.12%, down from 3.28%, which the release attributes to lower repricing of maturing time deposits. Source
• Loan yields fell in rate decline: Yield on average interest-earning assets was 5.74%, down from 5.84%, mainly from lower loan rates in the decreasing rate environment. Source

“During the fourth quarter of 2025, we repurchased 1,099,803 shares at an average cost of $47.15 per share for a total of $51.9 million”

Chang M. Liu, President and Chief Executive Officer

Loan and deposit balances

• Gross loans reached $20.15 billion: Gross loans rose $771.2 million or 4.0% from a year earlier. The fourth quarter added $42.5 million, or 0.9% annualized. Source
• Commercial real estate drove loan growth: Commercial real estate loans rose $530.9 million or 5.3% and residential mortgage loans $143.0 million or 2.5%, while home equity lines declined 1.5%. Source
• Deposits up 6.1% to $20.89 billion: Total deposits were $20.89 billion, up $1.20 billion or 6.1% from a year earlier and up from $20.52 billion at September 30, 2025. Source
• Non-interest-bearing deposits declined in quarter: Non-interest-bearing demand deposits were $3.51 billion, down from $3.57 billion at September 30, 2025, while NOW deposits rose to $2.37 billion. Source

Credit quality and provisions

• Non-accrual loans down 33.6% year over year: Non-accrual loans were $112.4 million, down $56.8 million or 33.6% from a year earlier and down $53.2 million from September 30, 2025. Source
• Provision for credit losses fell to $17.2 million: The provision was $17.2 million in the fourth quarter, down from $28.7 million in the third quarter. Source
• Allowance rose to 1.03% of loans: The allowance for credit losses rose $11.9 million to $208.4 million, or 1.03% of gross loans, from 0.98% at September 30, 2025. Source
• Non-performing assets down 26.8%: Non-performing assets were $143.7 million, down $52.6 million or 26.8% from $196.3 million a year earlier. Source
• Other real estate owned rose 31.5%: Other real estate owned rose $7.3 million or 31.5%, partly offsetting the decline in non-performing assets. Source
• Commercial charge-offs fell in quarter: Commercial loan charge-offs were $5.5 million in the fourth quarter, against $16.2 million in the third quarter. The 2025 total was $33.1 million. Source

Non-interest income and expense

• Non-interest income up 32.2%: Non-interest income was $27.8 million, up $6.8 million or 32.2% from the third quarter. Source
• Equity security gains drove non-interest income: Unrealized gains on equity securities rose $6.4 million against the third quarter, the main driver of the increase in non-interest income. Source
• Non-interest expense up 4.6%: Non-interest expense was $92.2 million, up $4.1 million or 4.6%, mainly from salaries and benefits on higher performance-based incentive accruals. Source
• Partnership amortization down from 2024: Amortization of low-income housing and alternative energy partnerships was $43.6 million in 2025, against $72.6 million in 2024. Source
• Effective tax rate rose to 20.23%: The effective tax rate was 20.23% in the fourth quarter, compared with 17.18% in the third quarter. Source

Capital and shareholder returns

• Capital ratios at year end: At December 31, 2025, the Tier 1 risk-based capital ratio was 13.27%, the total risk-based ratio 14.93%, and the Tier 1 leverage ratio 10.91%. Source
• Cash dividend unchanged at $0.34: Cash dividends were $0.34 per share in each quarter of 2025, totalling $1.36 for the year. Source
• Common shares outstanding declined: Common shares outstanding were 67,200,126 at December 31, 2025, down from 70,863,324 a year earlier. Source
• Tangible book value per share rose: Tangible book value per share was $37.90, up from $36.96 at September 30, 2025 and $34.81 a year earlier. Source

Franchise footprint and regions

• Over 60 branches in nine states: The bank operates over 60 branches across the United States, in California, New York, Washington, Texas, Illinois, Massachusetts, Maryland, Nevada and New Jersey. Source
• Hong Kong branch and representative offices: Overseas, the bank has a branch outlet in Hong Kong and representative offices in Beijing, Shanghai and Taipei. Source

Figures management reported

Risks management discussed

• Financial: Accruing loan modifications to borrowers experiencing financial difficulties rose to $78.1 million, from $63.4 million at September 30, 2025, and nil a year earlier. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.