LOS ANGELES – Cathay General Bancorp (NASDAQ:) reported fourth quarter earnings that beat analyst estimates, but its stock fell 7% in after-hours trading on Wednesday.
The holding company for Cathay Bank posted net income of $80.2 million, or $1.12 per diluted share, for the fourth quarter of 2024. This exceeded the analyst consensus estimate of $1.10 per share. Revenue came in at $186.48 million, also topping expectations of $185.63 million.
Despite the earnings beat, Cathay’s stock declined sharply following the release. The company’s net interest margin increased slightly to 3.07% in Q4 from 3.04% in Q3, but remained below the 3.27% level from a year ago.
Total (EPA:) loans decreased 0.9% year-over-year to $19.38 billion, while deposits rose 1.9% to $19.69 billion. The company’s provision for credit losses held steady at $14.5 million compared to the previous quarter.
“We are pleased by the increase in the net interest margin compared to the third quarter of 2024,” said Chang M. Liu, President and CEO of Cathay General Bancorp.
For the full year 2024, Cathay reported net income of $286.0 million, or $3.95 per diluted share, down from $354.1 million, or $4.86 per share, in 2023.
The bank’s efficiency ratio improved to 45.70% in Q4 from 51.11% in Q3. Cathay repurchased 506,651 shares during the quarter at an average cost of $47.10 per share.
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