Shares in Cathay General Bancorp shot up early Friday after the bank company reported first quarter earnings late Thursday that beat Wall Street’s expectations.
The Los Angeles bank holding company reported first-quarter net income of $27.3 million (55 cents per share), topping the 52-cent mean estimate of analysts polled by Thomson Financial. However, the results were 10 percent off results from the same period a year ago mainly due to the provision for loan losses increasing to $7.5 million, way up from $1 million last year.
Net interest income increased 3.4 percent to $75.2 million while the return on average assets was 1.1 percent compared with 1.5 percent for the same quarter a year ago.
Shares were up more than 12 percent to $18 in early trading Friday.