CATY · Cathay General Bancorp Q2 FY2026 earnings call record财报电话会记录

“These risks and uncertainties are further described in the company's annual report on Form 10-K for the year ended December 31st, 2025, at Item 1A in particular, and in other reports and filings with the Securities and Exchange Commission from time to time.”

“Net interest income increased to $200.9 million and net interest margin expanded to 3.48%, marking the eighth consecutive quarter of NIM expansion.”

“During the quarter, we repurchased 242,000 shares at an average cost of $58 per share.”

“In addition, our board recently approved an increase in our share repurchase authorization from $150 million to $200 million, subject to regulatory approval, reflecting our continued focus on disciplined and prudent capital returns.”

“Period-end loans of $20.6 billion grew 2.2% linked quarter, supporting continued growth in interest income.”

“Net interest income reached $201 million, increasing $7 million from the prior quarter, driven by higher average earning assets, continued net interest margin expansion, and day count.”

“The allowance for loan loss increased at $10 million to $219 million or 1.06% of gross loans, primarily reflecting loan growth.”

“As part of our ongoing capital and balance sheet optimization efforts, we plan to redeem approximately $54.1 million of the $119.1 million of outstanding trust preferred securities, representing the redemption of our highest cost issuances.”

“Given the slower than expected deposit growth during the first half of the year, we have revised our full year deposit growth outlook to 3%-4%.”

“Even with that updated rate outlook, we remain confident in achieving our full year NIM target of 3.4%-3.5%.”

“We are maintaining our adjusted non-interest expense growth outlook at 3.5%-4.5%, and we now expect our effective tax rate to be between 21% and 22% for the year, reflecting our updated earnings outlook.”

“Since we're at 3.48 and you're calling for 3.40-3.50, is it fair to assume we could see a little bit of pressure on the NIM getting back into the middle of that range?”