Q2 2025 Cathay General Bancorp Earnings Call Transcript
Key Points
- Cathay General Bancorp (CATY) reported a net income of $77.4 million for Q2 2025, an 11.4% increase from Q1 2025.
- Earnings per share increased by 12.2% to $1.10 in Q2 2025 compared to $0.98 in Q1 2025.
- Total gross loans increased by $432 million or 8.9% annualized, driven by growth in commercial, commercial real estate, and residential loans.
- Total deposits increased by $189 million or 3.8% annualized during Q2 2025, with core deposits rising by $120 million.
- The company has a strong liquidity position with unused borrowing capacity from the Federal Home Loan Bank and the Federal Reserve Bank totaling $8.5 billion.
- Net charge-offs increased significantly to $12.7 million in Q2 2025 from $2 million in Q1 2025.
- Non-accrual loans rose to 0.9% of total loans, with a $19.6 million increase primarily due to a real estate loan in foreclosure.
- Classified loans increased to $432 million from $380 million in Q1 2025 due to a downgrade of a large loan relationship.
- Provision for credit losses was $11.2 million in Q2 2025, although down from $15.5 million in Q1 2025.
- Non-interest expense increased by $3.4 million or 4% to $89.1 million in Q2 2025, driven by higher low-income housing amortization and professional expenses.
Good afternoon, ladies and gentlemen, and welcome to Cathay General Bancorp's second-quarter 2025 earnings conference call. My name is Ashia, and I'll be your coordinator for today. (Operator Instructions) Today's call is being recorded, and will be available for replay at www.cathaygeneralbancorp.com.
Now, I would like to turn the call over to Georgia Lo, Investor Relations of Cathay General Bancorp. Please go ahead.
Thank you, Ashia, and good afternoon. Here to discuss the financial results today are Mr. Chang Liu, our President and Chief Executive Officer; and Mr. Heng Chen, our Executive Vice President and Chief Financial Officer.
Before we begin, we wish to remind you that the speakers on this call may make forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995 concerning future results and events, and that these statements are
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