Cathay General Bancorp (NASDAQ:CATY – Get Free Report) announced its earnings results on Wednesday. The bank reported $1.43 EPS for the quarter, missing analysts’ consensus estimates of $1.45 by ($0.02), FiscalAI reports. Cathay General Bancorp had a net margin of 24.66% and a return on equity of 11.71%. The firm had revenue of $230.55 million for the quarter, compared to analysts’ expectations of $227.45 million. During the same quarter last 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 Down 0.1%
Shares of CATY stock opened at $60.63 on Thursday. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.04. The business’s 50 day moving average is $61.39 and its two-hundred day moving average is $59.75. Cathay General Bancorp has a twelve month low of $44.57 and a twelve month high of $65.25. The company has a market capitalization of $4.04 billion, a P/E ratio of 11.84 and a beta of 0.89.
Cathay General Bancorp Announces Dividend
The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 8th. Shareholders of record on Friday, August 28th were given a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend was Friday, August 28th. Cathay General Bancorp’s dividend payout ratio (DPR) is presently 29.69%.
Insider Buying and Selling
In related news, Director Richard Sun sold 20,000 shares of Cathay General Bancorp stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $63.31, for a total value of $1,266,200.00. Following the sale, the director directly owned 7,315 shares in the company, valued at $463,112.65. The trade was a 73.22% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Thomas M. Lo sold 1,600 shares of the firm’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $62.47, for a total value of $99,952.00. Following the completion of the sale, the executive vice president directly owned 2,362 shares of the company’s stock, valued at approximately $147,554.14. This trade represents a 40.38% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 31,600 shares of company stock valued at $1,996,362. Company insiders own 4.53% of the company’s stock.
Wall Street Analyst Weigh In
A number of equities analysts recently commented on CATY shares. Benchmark upgraded shares of Cathay General Bancorp to a “hold” rating in a research note on Wednesday, September 23rd. Keefe, Bruyette & Woods increased their price objective on Cathay General Bancorp from $64.00 to $67.00 and gave the company a “market perform” rating in a 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. Stephens boosted their target price on Cathay General Bancorp from $56.00 to $63.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 23rd. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of Cathay General Bancorp in a report on Friday, October 2nd. One equities research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $62.25.
Read Our Latest Report on Cathay General Bancorp
Trending Headlines about Cathay General Bancorp
Here are the key news stories impacting Cathay General Bancorp this week:
- Positive Sentiment: Third-quarter revenue rose to $230.55 million, exceeding the $227.45 million analyst consensus, while earnings per share increased to $1.43 from $1.13 a year earlier. Cathay General Bancorp posts better-than-expected sales in Q3 2026
- Positive Sentiment: Net interest income before credit-loss provisions reached a record $211.9 million, up 5.5% sequentially. Net interest margin also expanded to 3.52% from 3.48%, indicating improved core banking profitability. Cathay General Bancorp Q3 2026 earnings
- Positive Sentiment: Management raised its full-year loan-growth outlook to 5%–6% while maintaining its 3.40%–3.50% net interest margin forecast. Loans and deposits reached $21.20 billion and $21.83 billion, respectively, at quarter-end. Cathay General raises loan-growth outlook
- Neutral Sentiment: Nonperforming assets declined 18% to $119.2 million, and Cathay redeemed approximately 45% of its outstanding trust-preferred securities, potentially improving balance-sheet flexibility. Cathay General Bancorp reports third-quarter net income
- Negative Sentiment: EPS of $1.43 fell short of estimates ranging from $1.44 to $1.45. More importantly, the provision for credit losses jumped to $28.6 million from $11.2 million in the prior quarter, highlighting rising credit-cost risks despite better asset-quality metrics. Cathay General Q3 earnings lag estimates
About Cathay General Bancorp
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.
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