LOS ANGELES, April 21, 2025--(BUSINESS WIRE)--Cathay General Bancorp (the "Company", "we", "us", or "our") (Nasdaq: CATY), the holding company for Cathay Bank, today announced its unaudited financial results for the quarter ended March 31, 2025. The Company reported net income of $69.5 million, or $0.98 per diluted share, for the first quarter of 2025.

FINANCIAL PERFORMANCE  Three months ended (unaudited) March 31, 2025  December 31, 2024  March 31, 2024 Net income $69.5 million  $ 80.2 million  $71.4 million Basic earnings per common share $ 0.99  $ 1.13  $ 0.98 Diluted earnings per common share $ 0.98  $ 1.12  $ 0.98 Return on average assets  1.22%   1.37%   1.23% Return on average total stockholders' equity  9.84%   11.18%   10.40% Efficiency ratio  45.60%   45.70%   53.22%

FIRST QUARTER HIGHLIGHTS

Net interest margin increased to 3.25% during the first quarter from 3.07% in the fourth quarter of 2024. Total loans, excluding loans held for sale, decreased to $19.35 billion, or 0.12%, from $19.38 billion in the fourth quarter of 2024. Total deposits increased $131.3 million, or 0.7%, to $19.82 billion in the first quarter of 2025.

"We are pleased by the continued increase in the net interest margin compared to the fourth quarter of 2024. During the quarter we completed the $125.0 million share repurchase program announced on May 28th, 2024, by repurchasing 876,906 shares at an average cost of $46.83 per share for a total of $41.1 million", commented Chang M. Liu, President and Chief Executive Officer of the Company.

INCOME STATEMENT REVIEW FIRST QUARTER 2025 COMPARED TO THE FOURTH QUARTER 2024

Net income for the quarter ended March 31, 2025, was $69.5 million, a decrease of $10.7 million, or 13.3%, compared to net income of $80.2 million for the fourth quarter of 2024. Diluted earnings per share for the first quarter of 2025 was $0.98 per share compared to $1.12 per share for the fourth quarter of 2024.

Return on average stockholders’ equity was 9.84% and return on average assets was 1.22% for the quarter ended March 31, 2025, compared to a return on average stockholders’ equity of 11.18% and a return on average assets of 1.37% in the fourth quarter of 2024.

Net interest income before provision for credit losses

Net interest income before provision for credit losses increased $5.6 million, or 3.3%, to $176.6 million during the first quarter of 2025, compared to $171.0 million in the fourth quarter of 2024. The increase was due primarily to a decrease in interest deposit expense, partially offset by a decrease in interest income from loans and securities.

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The net interest margin was 3.25% for the first quarter of 2025 compared to 3.07% for the fourth quarter of 2024.

For the first quarter of 2025, the yield on average interest-earning assets was 5.89%, the cost of funds on average interest-bearing liabilities was 3.46%, and the cost of average interest-bearing deposits was 3.43%. In comparison, for the fourth quarter of 2024, the yield on average interest-earning assets was 5.92%, the cost of funds on average interest-bearing liabilities was 3.75%, and the cost of average interest-bearing deposits was 3.72%. The decrease in the yield on average interest-bearing liabilities resulted mainly from lower interest rates on deposits driven by the lower repricing of maturing time deposits in the first quarter. The decrease in the yield on average interest-earning assets resulted mainly from lower interest rates on loans due to the decreasing rate environment. The net interest spread, defined as the difference between the yield on average interest-earning assets and the cost of funds on average interest-bearing liabilities, was 2.43% for the first quarter of 2025, compared to 2.17% for the fourth quarter of 2024.

Provision for credit losses

The Company recorded a provision for credit losses of $15.5 million in the first quarter of 2025 compared to $14.5 million in the fourth quarter of 2024. As of March 31, 2025, the allowance for credit losses increased by $13.6 million to $185.0 million, or 0.96% of gross loans, compared to $171.4 million, or 0.88% of gross loans as of December 31, 2024.

The following table sets forth the charge-offs and recoveries for the periods indicated:

Three months ended March 31, 2025  December 31, 2024  March 31, 2024 (In thousands) (Unaudited) Charge-offs:  Commercial loans $ 2,344  $ 14,064  $ 1,939 Real estate loans (1)  —   2,472   254 Installment and other loans  —   7   — Total charge-offs  2,344   16,543   2,193 Recoveries:  Commercial loans  270   75   812 Real estate loans (1)  97   133   241 Installment and other loans  —   2   — Total recoveries  367   210   1,053 Net charge-offs $ 1,977  $ 16,333  $ 1,140

(1) Real estate loans include commercial real estate loans, residential mortgage loans and equity lines.

Non-interest income

Non-interest income, which includes revenues from depository service fees, letters of credit commissions, securities gains (losses), wealth management fees, and other sources of fee income, was $11.2 million for the first quarter of 2025, a decrease of $4.3 million, or 27.6%, compared to $15.5 million for the fourth quarter of 2024. The decrease was primarily due to a decrease of $2.9 million in gain on equity securities, when compared to the fourth quarter of 2024.

Non-interest expense

Non-interest expense increased $0.5 million, or 0.6%, to $85.7 million in the first quarter of 2025 compared to $85.2 million in the fourth quarter of 2024. The increase in non-interest expense in the first quarter of 2025 was primarily due to an increase of $2.2 million, in FDIC and State assessments, an increase of $1.1 million in computer and equipment offset, in part, by a decrease of $1.7 million in amortization expense of investments in low-income housing and alternative energy partnerships, and a decrease of $1.3 million in professional services, when compared to the fourth quarter of 2024. The efficiency ratio, defined as non-interest expense divided by the sum of net interest income before provision for loan losses plus non-interest income, was 45.60% in the first quarter of 2025 compared to 45.70% for the fourth quarter of 2024.

Income taxes

The effective tax rate for the first quarter of 2025 was 19.82% compared to 7.57% for the fourth quarter of 2024. The effective tax rate for the first quarter of 2025 includes the impact of low-income housing tax credits and for the fourth quarter of 2024 includes the impact of alternative energy investments and low-income housing tax credits.

BALANCE SHEET REVIEW

Gross loans, excluding loans held for sale, were $19.35 billion as of March 31, 2025, a decrease of $22.9 million, or 0.12%, from $19.38 billion as of December 31, 2024. The decrease was primarily due to a decrease of $99.6 million, or 3.2%, in commercial loans, and $65.5 million, or 1.2%, in residential mortgage loans offset by an increase of $127.1 million, or 1.3%, in commercial real estate loans.

The loan balances and composition as of March 31, 2025, compared to December 31, 2024, and March 31, 2024, are presented below:

March 31, 2025  December 31, 2024  March 31, 2024 (In thousands) (Unaudited) Commercial loans $ 2,998,423  $ 3,098,004  $ 3,132,580 Construction loans 332,729  319,649  382,775 Commercial real estate loans 10,160,934  10,033,830  9,821,807 Residential mortgage loans 5,623,564  5,689,097  5,841,846 Equity lines 231,184  229,995  245,222 Installment and other loans 6,169  5,380  5,166 Gross loans $ 19,353,003  $ 19,375,955  $ 19,429,396  Allowance for loan losses (173,936)  (161,765)  (154,589) Unamortized deferred loan fees (11,657)  (10,541)  (11,737) Total loans held for investment, net $ 19,167,410  $ 19,203,649  $ 19,263,070  Loans held for sale $ 11,759  $ —  $ 23,171

Total deposits were $19.82 billion as of March 31, 2025, an increase of $131.3 million, or 0.7%, from $19.69 billion as of December 31, 2024.

The deposit balances and composition as of March 31, 2025, compared to December 31, 2024, and March 31, 2024, are presented below:

March 31, 2025  December 31, 2024  March 31, 2024 (In thousands) (Unaudited) Non-interest-bearing demand deposits $ 3,361,245  $ 3,284,342  $ 3,289,539 NOW deposits 2,131,445  2,205,695  2,331,486 Money market deposits 3,423,953  3,372,773  3,117,557 Savings deposits 1,266,561  1,252,788  1,039,144 Time deposits 9,634,324  9,570,601  10,068,533 Total deposits $ 19,817,528  $ 19,686,199  $ 19,846,259

ASSET QUALITY REVIEW

As of March 31, 2025, total non-accrual loans were $154.6 million, a decrease of $14.6 million, or 8.6%, from $169.2 million as of December 31, 2024.

The allowance for loan losses was $173.9 million and the allowance for off-balance sheet unfunded credit commitments was $11.0 million as of March 31, 2025. The allowances represent the amount estimated by management to be appropriate to absorb expected credit losses inherent in the loan portfolio, including unfunded credit commitments. The allowance for loan losses represented 0.90% of period-end gross loans, and 112.06% of non-performing loans as of March 31, 2025. The comparable ratios were 0.83% of period-end gross loans, and 93.39% of non-performing loans as of December 31, 2024.

The changes in non-performing assets and loan modifications to borrowers experiencing financial difficulty as of March 31, 2025, compared to December 31, 2024, and March 31, 2024, are presented below:

(In thousands) (Unaudited) March 31, 2025  December 31, 2024  % Change  March 31, 2024  % Change Non-performing assets  Accruing loans past due 90 days or more $ 595  $ 4,050  (85)  $ 7,560  (92)  Non-accrual loans:  Construction loans —  —  —  22,998  (100) Commercial real estate loans 76,802  83,128  (8)  47,465  62 Commercial loans 53,362  59,767  (11)  14,642  264 Residential mortgage loans 24,462  26,266  (7)  13,002  88 Total non-accrual loans: $ 154,626  $ 169,161  (9)  $ 98,107  58 Total non-performing loans 155,221  173,211  (10)  105,667  47 Other real estate owned 18,484  23,071  (20)  19,441  (5) Total non-performing assets $ 173,705  $ 196,282  (12)  $ 125,108  39 Accruing loan modifications to borrowers experiencing
financial difficulties $ 8,213  $ —  —  $ —  — Allowance for loan losses $ 173,936  $ 161,765  8  $ 154,589  13 Total gross loans outstanding, at period-end $ 19,353,003  $ 19,375,955  (0)  $ 19,429,396  (0)  Allowance for loan losses to non-performing loans, at period-end 112.06%  93.39%    146.30%  Allowance for loan losses to gross loans, at period-end 0.90%  0.83%    0.80%

The ratio of non-performing assets to total assets was 0.75% as of March 31, 2025, compared to 0.85% as of December 31, 2024. Total non-performing assets decreased $22.6 million, or 11.5%, to $173.7 million as of March 31, 2025, compared to $196.3 million as of December 31, 2024, primarily due to a decrease of $14.5 million, or 8.6%, in non-accrual loans, a decrease of $4.6 million, or 19.9%, in other real estate owned, and a decrease of $3.5 million, or 85.3%, in accruing loans past due 90 days or more.

CAPITAL ADEQUACY REVIEW

As of March 31, 2025, the Company’s Tier 1 risk-based capital ratio of 13.57%, total risk-based capital ratio of 15.19%, and Tier 1 leverage capital ratio of 11.06%, calculated under the Basel III capital rules, continue to place the Company in the "well capitalized" category for regulatory purposes, which is defined as institutions with a Tier 1 risk-based capital ratio equal to or greater than 8%, a total risk-based capital ratio equal to or greater than 10%, and a Tier 1 leverage capital ratio equal to or greater than 5%. As of December 31, 2024, the Company’s Tier 1 risk-based capital ratio was 13.54%, total risk-based capital ratio was 15.08%, and Tier 1 leverage capital ratio was 10.96%.

CONFERENCE CALL

Cathay General Bancorp will host a conference call to discuss its first quarter 2025 financial results this afternoon, Monday, April 21, 2025, at 3:00 p.m., Pacific Time. Analysts and investors may dial in and participate in the question-and-answer session. To access the call, please dial 1-833-816-1377 and enter Conference ID 10198304. The presentation accompanying this call and access to the live webcast is available on our site at www.cathaygeneralbancorp.com and a replay of the webcast will be archived for one year within 24 hours after the event.

ABOUT CATHAY GENERAL BANCORP

Cathay General Bancorp is a publicly traded company (Nasdaq: CATY) and is the holding company for Cathay Bank, a California state-chartered bank. Founded in 1962, Cathay Bank offers a wide range of financial services and currently operate over 60 branches across the United States in California, New York, Washington, Texas, Illinois, Massachusetts, Maryland, Nevada, and New Jersey. Overseas, it has a branch outlet in Hong Kong, and representative offices in Beijing, Shanghai, and Taipei. To learn more about Cathay Bank, please visit www.cathaybank.com. Cathay General Bancorp’s website is at www.cathaygeneralbancorp.com. Information set forth on such websites is not incorporated into this press release.

FORWARD-LOOKING STATEMENTS

Statements made in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995 regarding management’s beliefs, projections, and assumptions concerning future results and events. These forward-looking statements may include, but are not limited to, such words as "aims," "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "hopes," "intends," "may," "plans," "projects," "predicts," "potential," "possible," "optimistic," "seeks," "shall," "should," "will," and variations of these words and similar expressions. Forward-looking statements are based on estimates, beliefs, projections, and assumptions of management and are not guarantees of future performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. Such risks and uncertainties and other factors include, but are not limited to, adverse developments or conditions related to or arising from local, regional, national and international business, market and economic conditions and events, the potential for new or increased tariffs, trade restrictions or geopolitical tensions that could affect economic activity or specific industry sectors and the impact they may have on us, our customers and our operations, assets and liabilities; possible additional provisions for loan losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to including potential future supervisory action by bank supervisory authorities; increased costs of compliance and other risks associated with changes in regulation; higher capital requirements from the implementation of the Basel III capital standards; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; our ability to generate anticipated returns on our investments and financings, including in tax-advantaged projects; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; natural disasters, public health crises and geopolitical events; general economic or business conditions in Asia, and other regions where Cathay Bank has operations; failures, interruptions, or security breaches of our information systems; our ability to adapt our systems to technological changes; risk management processes and strategies; adverse results in legal proceedings; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in accounting standards or tax laws and regulations; market disruption and volatility; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; issuance of preferred stock; successfully raising additional capital, if needed, and the resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; and general competitive, economic political, and market conditions and fluctuations.

These and other factors are further described in Cathay General Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2024 (Item 1A in particular), other reports filed with the Securities and Exchange Commission ("SEC"), and other filings Cathay General Bancorp makes with the SEC from time to time. Actual results in any future period may also vary from the past results discussed in this press release. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we undertake no obligation to update or review any forward-looking statement to reflect circumstances, developments or events occurring after the date on which the statement is made or to reflect the occurrence of unanticipated events.

CATHAY GENERAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited) Three months ended  (In thousands, except per share data)  March 31, 2025  December 31, 2024  March 31, 2024  Financial performance  Net interest income before provision for credit losses  $ 176,639  $ 171,012  $ 168,572 Provision for credit losses  15,500  14,500  1,900 Net interest income after provision for credit losses  161,139  156,512  166,672 Non-interest income  11,204  15,473  6,611 Non-interest expense  85,656  85,219  93,239 Income before income tax expense  86,687  86,766  80,044 Income tax expense  17,181  6,565  8,609 Net income  $ 69,506  $ 80,201  $ 71,435  Net income per common share:  Basic  $ 0.99  $ 1.13  $ 0.98 Diluted  $ 0.98  $ 1.12  $ 0.98 Cash dividends paid per common share  $ 0.34  $ 0.34  $ 0.34   Selected ratios  Return on average assets  1.22%  1.37%  1.23% Return on average total stockholders’ equity  9.84%  11.18%  10.40% Efficiency ratio  45.60%  45.70%  53.22% Dividend payout ratio  34.32%  29.95%  34.59%   Yield analysis (Fully taxable equivalent)  Total interest-earning assets  5.89%  5.92%  6.01% Total interest-bearing liabilities  3.46%  3.75%  3.87% Net interest spread  2.43%  2.17%  2.14% Net interest margin  3.25%  3.07%  3.05%   Capital ratios  March 31, 2025  December 31, 2024  March 31, 2024 Tier 1 risk-based capital ratio  13.57%  13.54%  13.08% Total risk-based capital ratio  15.19%  15.08%  14.55% Tier 1 leverage capital ratio  11.06%  10.96%  10.71% .    ..

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) (In thousands, except share and per share data)  March 31, 2025  December 31, 2024  March 31, 2024  Assets  Cash and due from banks  $ 175,027  $ 157,167  $ 165,284 Short-term investments and interest bearing deposits  1,209,487  882,353  1,010,651 Securities available-for-sale (amortized cost of $1,535,896 at March 31, 2025,  $1,668,661 at December 31, 2024 and $1,783,915 at March 31, 2024)  1,434,040  1,547,128  1,653,167 Loans held for sale  11,759  —  23,171 Loans  19,353,003  19,375,955  19,429,396 Less: Allowance for loan losses  (173,936)  (161,765)  (154,589) Unamortized deferred loan fees, net  (11,657)  (10,541)  (11,737) Loans, net  19,167,410  19,203,649  19,263,070 Equity securities  30,238  34,429  31,380 Federal Home Loan Bank stock  17,250  17,250  17,250 Other real estate owned, net  18,484  23,071  19,441 Affordable housing investments and alternative energy partnerships, net  285,707  289,611  330,912 Premises and equipment, net  89,760  88,676  90,454 Customers’ liability on acceptances  12,678  14,061  17,074 Accrued interest receivable  95,755  97,779  97,937 Goodwill  375,696  375,696  375,696 Other intangible assets, net  3,101  3,335  4,131 Right-of-use assets- operating leases  30,021  28,645  31,698 Other assets  248,609  291,831  273,487 Total assets  $ 23,205,022  $ 23,054,681  $ 23,404,803  Liabilities and Stockholders’ Equity  Deposits:  Non-interest-bearing demand deposits  $ 3,361,245  $ 3,284,342  $ 3,289,539 Interest-bearing deposits:  NOW deposits  2,131,445  2,205,695  2,331,486 Money market deposits  3,423,953  3,372,773  3,117,557 Savings deposits  1,266,561  1,252,788  1,039,144 Time deposits  9,634,324  9,570,601  10,068,533 Total deposits  19,817,528  19,686,199  19,846,259  Advances from the Federal Home Loan Bank  95,000  60,000  265,000 Other borrowings for affordable housing investments  17,696  17,740  17,557 Long-term debt  119,136  119,136  119,136 Acceptances outstanding  12,678  14,061  17,074 Lease liabilities - operating leases  32,120  30,851  34,325 Other liabilities  245,705  280,990  327,380 Total liabilities  20,339,863  20,208,977  20,626,731 Stockholders' equity  2,865,159  2,845,704  2,778,072 Total liabilities and equity  $ 23,205,022  $ 23,054,681  $ 23,404,803  Book value per common share  $ 40.91  $ 40.16  $ 38.22 Number of common shares outstanding  70,034,708  70,863,324  72,688,191

CATHAY GENERAL BANCORP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited) Three months ended March 31, 2025  December 31, 2024  March 31, 2024 (In thousands, except share and per share data) Interest and Dividend Income  Loan receivable, including loan fees  $ 293,984  $ 300,991  $ 302,528 Investment securities  12,103  13,587  14,951 Federal Home Loan Bank stock  379  379  431 Deposits with banks  12,929  15,025  14,732 Total interest and dividend income  319,395  329,982  332,642  Interest Expense  Time deposits  96,066  111,082  109,546 Other deposits  42,434  44,557  42,788 Advances from Federal Home Loan Bank  1,904  766  9,316 Long-term debt  2,020  2,194  1,721 Short-term borrowings  332  371  699 Total interest expense  142,756  158,970  164,070  Net interest income before provision for credit losses  176,639  171,012  168,572 Provision for credit losses  15,500  14,500  1,900 Net interest income after provision for credit losses  161,139  156,512  166,672  Non-Interest Income  Net losses from equity securities  (4,191)  (1,312)  (9,027) Debt securities losses, net  —  —  1,107 Letters of credit commissions  2,091  2,063  1,717 Depository service fees  1,752  1,674  1,550 Wealth management fees  6,169  6,194  5,638 Other operating income  5,383  6,854  5,626 Total non-interest income  11,204  15,473  6,611  Non-Interest Expense  Salaries and employee benefits  42,427  42,526  43,552 Occupancy expense  5,737  5,724  5,967 Computer and equipment expense  6,054  4,923  5,068 Professional services expense  7,448  8,761  6,992 Data processing service expense  4,406  4,234  3,929 FDIC and State assessments  3,399  1,198  6,089 Marketing expense  1,878  1,518  1,914 Other real estate owned expense  244  368  253 Amortization of investments in low income housing and
alternative energy partnerships  9,054  10,728  14,432 Amortization of core deposit intangibles  250  250  339 Other operating expense  4,759  4,989  4,704 Total non-interest expense  85,656  85,219  93,239  Income before income tax expense  86,687  86,766  80,044 Income tax expense  17,181  6,565  8,609 Net income  $ 69,506  $ 80,201  $ 71,435 Net income per common share:  Basic  $ 0.99  $ 1.13  $ 0.98 Diluted  $ 0.98  $ 1.12  $ 0.98  Cash dividends paid per common share  $ 0.34  $ 0.34  $ 0.34 Basic average common shares outstanding  70,379,835  71,168,983  72,673,974 Diluted average common shares outstanding  70,679,640  71,491,518  72,971,157

CATHAY GENERAL BANCORP

AVERAGE BALANCES – SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited) Three months ended  (In thousands)(Unaudited) March 31, 2025  December 31, 2024  March 31, 2024 Interest-earning assets: Average Balance Average Yield/Rate (1)  Average Balance Average Yield/Rate (1)  Average Balance Average Yield/Rate (1) Loans (1) $ 19,332,602 6.17%  $ 19,345,616 6.19%  $ 19,498,954 6.24% Taxable investment securities 1,457,724 3.37%  1,542,577 3.50%  1,638,317 3.67% FHLB stock 17,250 8.92%  17,250 8.75%  23,006 7.53% Deposits with banks 1,202,304 4.36%  1,265,496 4.72%  1,093,972 5.42% Total interest-earning assets $ 22,009,880 5.89%  $ 22,170,939 5.92%  $ 22,254,249 6.01%  Interest-bearing liabilities:  Interest-bearing demand deposits $ 2,142,241 1.68%  $ 2,131,978 1.85%  $ 2,312,246 2.19% Money market deposits 3,382,292 3.43%  3,259,771 3.52%  3,114,298 3.53% Savings deposits 1,289,628 1.57%  1,306,584 1.76%  1,046,103 1.10% Time deposits 9,582,826 4.07%  9,932,776 4.45%  9,720,917 4.53% Total interest-bearing deposits $ 16,396,987 3.43%  $ 16,631,109 3.72%  $ 16,193,564 3.78% Other borrowed funds 215,021 4.22%  111,142 4.07%  730,779 5.51% Long-term debt 119,136 6.88%  119,136 7.33%  119,136 5.81% Total interest-bearing liabilities 16,731,144 3.46%  16,861,387 3.75%  17,043,479 3.87%  Non-interest-bearing demand deposits 3,305,149   3,318,350   3,338,551   Total deposits and other borrowed funds $ 20,036,293   $ 20,179,737   $ 20,382,030   Total average assets $ 23,187,863   $ 23,332,869   $ 23,451,901  Total average equity $ 2,864,709   $ 2,854,994   $ 2,761,843

(1) Yields and interest earned include net loan fees. Non-accrual loans are included in the average balance.

CATHAY GENERAL BANCORP GAAP to NON-GAAP RECONCILIATION SELECTED CONSOLIDATED FINANCIAL INFORMATION (Unaudited)

The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible equity and tangible equity to tangible assets ratio are non-GAAP financial measures. Tangible equity and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios is prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.

As of March 31, 2025  December 31, 2024  March 31, 2024 (In thousands) (Unaudited) Stockholders' equity (a) $ 2,865,159  $ 2,845,704  $ 2,778,072 Less: Goodwill  (375,696)  (375,696)  (375,696) Other intangible assets (1)  (3,101)  (3,335)  (4,131) Tangible equity (b) $ 2,486,362  $ 2,466,673  $ 2,398,245  Total assets (c) $ 23,205,022  $ 23,054,681  $ 23,404,803 Less: Goodwill  (375,696)  (375,696)  (375,696) Other intangible assets (1)  (3,101)  (3,590)  (4,461) Tangible assets (d) $ 22,826,225  $ 22,675,395  $ 23,024,646  Number of common shares outstanding (e) 70,034,708  70,863,324  72,688,191  Total stockholders' equity to total assets ratio (a)/(c) 12.35%  12.34%  11.87% Tangible equity to tangible assets ratio (b)/(d) 10.89%  10.88%  10.42% Tangible book value per share (b)/(e) $ 35.50  $ 34.81  $ 32.99  Three Months Ended March 31, 2025  December 31, 2024  March 31, 2024 (In thousands) (Unaudited) Net Income  $ 69,506  $ 80,201  $ 71,435 Add: Amortization of other intangibles (1)  283  256  330 Tax effect of amortization adjustments (2)  (84)  (76)  (98) Tangible net income (f) $ 69,705  $ 80,381  $ 71,667  Return on tangible common equity (3) (f)/(b) 11.21%  13.03%  11.95%

(1) Includes core deposit intangibles and mortgage servicing (2) Applied the statutory rate of 29.65%. (3) Annualized

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Contacts

Heng W. Chen (626) 279-3652

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