Cathay General Bancorp (NASDAQ:CATY) Issues Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Cathay General Bancorp (NASDAQ:CATY) posted its earnings results on Wednesday. The bank reported $1.43 EPS for the quarter, missing the consensus estimate of $1.45 by ($0.02), FiscalAI reports. Cathay General Bancorp had a return on equity of 12.22% and a net margin of 25.32%. The business had revenue of $230.55 million for the quarter, compared to analyst estimates of $227.45 million. During the same quarter in the prior year, the business earned $1.13 earnings per share.

Here are the key takeaways from Cathay General Bancorp’s conference call:

• Strong quarterly performance: Net income rose to $95.2 million, while record net interest income increased 5.5% sequentially to $211.9 million and net interest margin expanded 4 basis points to 3.52%.
• Growth outlook raised: Cathay increased its full-year loan growth outlook to 5%–6% from 3.5%–4.5% and deposit growth outlook to 4%–5% from 3%–4%, supported by strong C&I lending and deposit gains.
• Margin momentum remains favorable but faces funding pressure: Management sees further near-term NIM expansion from loan repricing and potential rate increases, although higher competition and approximately $3.4 billion of CDs rolling off could raise deposit costs.
• Credit costs increased: Net charge-offs rose to an annualized 49 basis points, concentrated in three previously identified credits, including two theater loans and a construction loan; management said the broader portfolio remains stable and criticized and non-performing assets declined.
• Capital and operating actions remain supportive: Despite $50.3 million of share repurchases and the redemption of $54.1 million of trust preferred securities, CET1 remained strong at 13.51%; securities repositioning is expected to add about $11.4 million to annual net interest income, while adjusted expenses rose only modestly.

Cathay General Bancorp Trading Up 6.0%

Shares of CATY stock opened at $64.24 on Friday. The company has a market cap of $4.29 billion, a P/E ratio of 12.55 and a beta of 0.89. The stock has a 50 day simple moving average of $61.39 and a two-hundred day simple moving average of $59.85. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.04 and a current ratio of 1.04. Cathay General Bancorp has a fifty-two week low of $44.57 and a fifty-two week high of $65.25.

Cathay General Bancorp Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Shareholders of record on Friday, August 28th were issued a $0.38 dividend. This represents a $1.52 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date was Friday, August 28th. Cathay General Bancorp’s payout ratio is presently 29.69%.

Analyst Ratings Changes

Several analysts recently weighed in on CATY shares. Zacks Research cut shares of Cathay General Bancorp from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, August 12th. Stephens raised their target price on Cathay General Bancorp from $56.00 to $63.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 23rd. DA Davidson raised their target price on Cathay General Bancorp from $56.00 to $66.00 and gave the stock a “neutral” rating in a research report on Thursday, July 23rd. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Cathay General Bancorp in a report on Friday, October 2nd. Finally, Benchmark upgraded Cathay General Bancorp to a “hold” rating in a research report on Wednesday, September 23rd. One research analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Cathay General Bancorp currently has an average rating of “Hold” and an average price target of $62.25.

Insider Activity at Cathay General Bancorp

In other news, EVP Thomas M. Lo sold 1,600 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $62.47, for a total transaction of $99,952.00. Following the completion of the sale, the executive vice president owned 2,362 shares of the company’s stock, valued at $147,554.14. This trade represents a 40.38% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Richard Sun sold 20,000 shares of Cathay General Bancorp stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $63.31, for a total transaction of $1,266,200.00. Following the completion of the sale, the director owned 7,315 shares of the company’s stock, valued at $463,112.65. This represents a 73.22% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 31,600 shares of company stock worth $1,996,362. Insiders own 4.53% of the company’s stock.

Trending Headlines about Cathay General Bancorp

Here are the key news stories impacting Cathay General Bancorp this week:

• Positive Sentiment: Third-quarter net income increased to $95.2 million, or $1.43 per diluted share, from $92.2 million, or $1.37 per share, in the second quarter and $1.13 per share a year earlier. Revenue of $230.55 million exceeded estimates of $227.45 million. Cathay General Bancorp Reports Earnings Results
• Positive Sentiment: Net interest income before credit-loss provisions reached a record $211.9 million, up 5.5% sequentially. Net interest margin expanded to 3.52% from 3.48%, supporting profitability. Cathay General Bancorp Reports $95.2 Million Third Quarter Net Income
• Positive Sentiment: Management raised its full-year loan-growth outlook to 5%–6% while maintaining its 3.40%–3.50% net-interest-margin outlook. Loans reached $21.20 billion and deposits $21.83 billion at quarter-end. Cathay General Raises Loan Growth Outlook
• Positive Sentiment: Non-interest income doubled sequentially to $42.8 million, while nonperforming assets declined 18% to $119.2 million. The bank also redeemed about 45% of its outstanding trust-preferred securities, which may reduce funding costs and balance-sheet risk. Cathay General Bancorp Q3 2026 Earnings
• Neutral Sentiment: Institutional ownership data showed more funds adding than reducing CATY positions in the latest reporting period, although such filings are backward-looking.
• Negative Sentiment: EPS of $1.43 narrowly missed consensus estimates of $1.44–$1.45. Provision for credit losses rose sharply to $28.6 million from $11.2 million in the prior quarter, highlighting ongoing credit-cost pressure. Cathay General Q3 Earnings Lag Estimates
• Negative Sentiment: Reported insider trading was exclusively selling over the past six months, with no insider purchases disclosed, a potential but secondary sentiment concern.

Cathay General Bancorp Company Profile

Cathay General Bancorp is a bank holding company headquartered in Los Angeles, California. Its principal subsidiary, Cathay Bank, provides banking and financial services to individuals, families, businesses and institutions, with a particular focus on serving the Chinese American and broader communities in the markets where it operates.

Cathay Bank offers deposit accounts, residential and commercial real estate loans, commercial and industrial lending, small-business financing, consumer loans, treasury management and other traditional banking services.