Cathay General Bancorp (CATY) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $77.7 million, or $1.13 per diluted share, up 15.1% year-over-year and 0.3% sequentially.

• Total revenue reached $210.6 million, and total assets increased to $24.1 billion as of September 30, 2025.

• Loans and deposits grew to $20.1 billion and $20.5 billion, respectively, with a net loans-to-deposit ratio of 97%.

• Return on average equity was 10.60% and return on average assets was 1.29% for Q3 2025.

• Year-to-date net income reached $224.6 million, a 9.1% increase year-over-year.

Financial highlights

• Net interest income before provision for credit losses rose to $189.6 million, up 5% quarter-over-quarter and 12.1% year-over-year.

• Net interest margin improved to 3.31% from 3.27% in Q2 2025 and 3.04% in Q3 2024.

• Non-interest income rose to $21.0 million, mainly from equity securities gains and higher wealth management fees.

• Non-interest expense decreased to $88.1 million, with an improved efficiency ratio of 41.84%.

• Book value per share was $42.50, up 1.02% sequentially and 7.16% year-over-year.

Outlook and guidance

• Loan and deposit growth guidance for 2025 increased to 3.5%-5%, with net interest margin expected between 3.25% and 3.35%.

• Core noninterest expense projected to grow 4.5% to 5.5%.

• Net interest margin expected to rise by 6-7 basis points for each 25 bps Fed funds rate cut over six months.

• Management expects deposit repricing to trend lower as Fed funds rates decrease in 2025.

• The company is evaluating the impact of recent federal and state legislative changes, including the OBBBA and GENIUS Act.