Cathay General Bancorp Reports $86.9M Q1 Net Income, 11.8% Dividend Increase
Cathay General Bancorp posted Q1 net income of $86.9 million with EPS of $1.29 and boosted net interest margin to 3.43%, up 7 basis points from last quarter. The bank improved efficiency ratio to 40.4%, raised dividend by 11.8% to $0.38, and approved a new $150M share buyback.
1. Q1 Financial Highlights
Cathay General Bancorp delivered net income of $86.9 million and diluted EPS of $1.29 in Q1. Net interest margin expanded to 3.43%, up 7 basis points quarter-on-quarter, while net interest income dipped slightly to $194 million and noninterest income fell by $7.1 million.
2. Capital Return Initiatives
The board increased the quarterly dividend by 11.8% to $0.38 per share and completed a $150 million share repurchase, buying 244,000 shares at an average cost of $51.31. A new $150 million buyback program was approved, and tangible book value per share rose to $30.95.
3. Asset Quality and Balance Sheet Trends
Period-end loans reached $20.2 billion, up 0.2% linked quarter, while deposits declined 1% to $20.7 billion. Allowance for loan losses increased by $13 million to $209 million (1.03% coverage), net charge-offs fell to $2.1 million, nonperforming assets improved to 51 bps, and a $15.7 million securities impairment was recorded.
4. Outlook on Margins and Costs
CFO commentary notes that without expected rate cuts, slight pressure on net interest margin is anticipated, but securities repositioning could add a few basis points. Loan yields should remain stable and modest deposit cost savings are feasible, leaving management comfortable with full-year NIM guidance.