Cathay General Bancorp reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. Total assets increased to $23.27 billion, up from $23.08 billion at the end of 2023, driven by a rise in total deposits, which reached $19.94 billion, an increase of $618.6 million. However, total loans held for investment decreased slightly to $19.37 billion from $19.55 billion.

For the third quarter of 2024, total interest and dividend income rose to $339.5 million, compared to $323.5 million in the same quarter of 2023. However, total interest expense also increased significantly to $170.3 million from $137.8 million, leading to a net interest income after provision for credit losses of $154.7 million, down from $178.6 million a year earlier. The net interest margin decreased to 3.04% from 3.38%, reflecting a challenging interest rate environment.

Net income for the third quarter was $67.5 million, a decline of 18.1% from $82.4 million in the prior year. Basic and diluted earnings per share fell to $0.94 from $1.14 and $1.13, respectively. For the nine months ended September 30, 2024, net income totaled $205.8 million, down from $271.6 million in the same period of 2023, with diluted earnings per share decreasing to $2.83 from $3.73.

The company’s allowance for loan losses increased to $163.7 million, reflecting a provision for expected credit losses of $14.5 million in the third quarter, up from $7.0 million in the same quarter of 2023. Non-accrual loans surged to $162.8 million, a 144.1% increase from $66.7 million at the end of 2023, indicating rising credit risk.

In terms of strategic developments, Cathay General Bancorp announced a stock repurchase program in May 2024, authorizing the buyback of up to $125 million in common stock. During the third quarter, the company repurchased 832,460 shares at an average cost of $42.00 per share, totaling $35 million.

Overall, while the bank experienced growth in total assets and deposits, it faced challenges in profitability and credit quality, necessitating a cautious approach moving forward.