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    Cathay General Bancorp (CATY)

    Market Price (9/27/2026): $61.46 | Market Cap: $4.1 BilSector: Financials | Industry: Regional Banks

    Cathay General Bancorp (CATY)

    Market Price (9/27/2026): $61.46
    Market Cap: $4.1 Bil
    Sector: Financials
    Industry: Regional Banks

    Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.

    0

    Attractive yield
    Total YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 11%, Dividend Yield is 2.4%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 6.8%, FCF Yield is 13%

    Cash is significant % of market cap
    Net D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -53%

    Attractive cash flow generation
    CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 62%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 61%

    Low stock price volatility
    Vol 12M is 24%

    Megatrend and thematic drivers
    Megatrends include Fintech & Digital Payments. Themes include Online Banking & Lending, and Digital Payments.

    Trading close to highs
    Dist 52W High is -4.8%, Dist 3Y High is -4.8%

    Key risks
    CATY key risks include [1] significant loan portfolio concentration in commercial real estate, Show more.

    0 Attractive yield
    Total YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 11%, Dividend Yield is 2.4%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 6.8%, FCF Yield is 13%
    1 Cash is significant % of market cap
    Net D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -53%
    2 Attractive cash flow generation
    CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 62%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 61%
    3 Low stock price volatility
    Vol 12M is 24%
    4 Megatrend and thematic drivers
    Megatrends include Fintech & Digital Payments. Themes include Online Banking & Lending, and Digital Payments.
    5 Trading close to highs
    Dist 52W High is -4.8%, Dist 3Y High is -4.8%
    6 Key risks
    CATY key risks include [1] significant loan portfolio concentration in commercial real estate, Show more.

    CATY in ETFs

    Weight = CATY's share of each fund

    VTI0.01%
    ITOT0.01%
    IWM0.13%
    IJR0.24%
    VYM0.02%
    VB0.05%
    KRE0.98%
    IJS0.50%
    +13 more covered ETFs

    Valuation & Metrics

    FYE: 12/31CATY [1]S&P 500 [2]
    REVENUE GROWTH
    LTM Revenue [3]$870.6 Mil—
    FY 2026 Sales$891.3 Mil—
    FY 2027 Sales$928.3 Mil—
    FY 2026 Sales Growth2.4%—
    FY 2027 Sales Growth4.1%12.8%
    EARNINGS
    LTM Net Income (GAAP) [3]$347.3 Mil—
    FY 2026 Net Income (Non-GAAP)$370.5 Mil—
    FY 2027 Net Income (Non-GAAP)$386.6 Mil—
    FY 2027 Net Income Growth4.3%18.0%
    FY 2026 EPS (Non-GAAP)$5.57—
    FY 2027 EPS (Non-GAAP)$5.94—
    FY 2027 EPS Growth6.6%—
    VALUATION
    FY 2026 P/S4.61.6
    FY 2027 P/S4.4—
    FY 2026 P/E11.17.7
    FY 2027 P/E10.7—

    [1] CATY forward figures are analyst consensus for the next two fiscal years (fiscal year end 12/31). Net Income and EPS are non-GAAP (adjusted) consensus. P/S and P/E divide the current market cap by the consensus figure.
    [2] S&P 500 figures are the SPY ETF's holdings-weighted forward aggregate. P/S and P/E reflect FY1/FY2 consensus blended to the 12-month window ending 9/30/27 (~one year forward), shown when ≥90% of index weight has estimates. Growth is the aggregate next-fiscal-year vs current-fiscal-year (FY1→FY2) change. Index-level dollar Sales, Net Income and EPS are not applicable.
    [3] LTM = reported trailing-twelve-month actuals (GAAP).
    CATYS&P 500
    REVENUE GROWTHFAIR
    Rev LTM ($ Bil)0.9
    Rev Chg Q13.1%9.3%
    Rev Chg LTM14.5%8.3%
    Rev Chg 3Y Avg2.0%5.8%
    PROFITABILITYVERY GOOD
    Op Inc LTM ($ Bil)�
    CFO LTM ($ Bil)0.5
    Net Inc LTM ($ Bil)0.3
    CFO/Rev LTM62.2%21.8%
    Net Inc Mgn39.9%13.1%
    VALUATIONLOW
    P/S4.73.1
    P/CFO7.614.5
    P/FCF7.719.2
    P/E11.922.1

    AI Analysis | Feedback

    MetricValueDateSource
    Efficiency Ratio41.8%9302025Link
    Net Interest Margin3.3%9302025Link
    Tier 1 risk-based capital ratio13.54%12312024Link
    Total risk-based capital ratio15.08%12312024Link
    Tier 1 leverage capital ratio11.06%3312025Link
    Ratio of non-performing assets to total assets0.75%3312025Link
    Number of Branchesover 604032025Link
    Number of Overseas Representative Offices310212025Link
    Assets to Equity ratio8.3x11052025Link
    Allowance for bad loans113%11052025Link
    Loans to Assets ratio83%11052025Link
    Loans to Deposits ratio97%11052025Link
    Level of bad loans0.8%11052025Link

    Price Chart

    Upcoming
    10/20/2026Earnings ReleaseRev: $227 Mil (E)
    EPS: $1.45 (E)

    Why The Stock Moved

    Qualitative Assessment

    AI Analysis | Feedback

    Updated on 9/1/2026

    Cathay General Bancorp (CATY) stock has gained about 5% since 5/31/2026 because of the following key factors:

    1. Cathay General Bancorp reported strong financial performance for fiscal Q2 2026, surpassing analyst expectations.

    The company announced net income of $92.2 million, or $1.37 per diluted share, for the quarter ended June 30, 2026, which represents a 6% increase from fiscal Q1 2026. This beat the consensus analyst estimate of $1.35 per share by $0.02. Revenue also exceeded expectations, with reported revenue of $222.3 million against an estimated $218.27 million.

    2. The company achieved its eighth consecutive quarter of Net Interest Margin (NIM) expansion.

    Cathay General Bancorp's net interest margin expanded by 5 basis points to 3.48% in fiscal Q2 2026. This continuous expansion was a key driver for the increase in net interest income, which rose by approximately $7 million linked quarter to $200.9 million.

    Show more
    Updated on 9/1/2026

    Cathay General Bancorp (CATY) stock has gained about 5% since 5/31/2026 because of the following key factors:

    1. Cathay General Bancorp reported strong financial performance for fiscal Q2 2026, surpassing analyst expectations.

    The company announced net income of $92.2 million, or $1.37 per diluted share, for the quarter ended June 30, 2026, which represents a 6% increase from fiscal Q1 2026. This beat the consensus analyst estimate of $1.35 per share by $0.02. Revenue also exceeded expectations, with reported revenue of $222.3 million against an estimated $218.27 million.

    2. The company achieved its eighth consecutive quarter of Net Interest Margin (NIM) expansion.

    Cathay General Bancorp's net interest margin expanded by 5 basis points to 3.48% in fiscal Q2 2026. This continuous expansion was a key driver for the increase in net interest income, which rose by approximately $7 million linked quarter to $200.9 million.

    3. Cathay General Bancorp demonstrated healthy loan and deposit growth during fiscal Q2 2026.

    Period-end loans increased by 2.2% linked quarter to $20.6 billion, while period-end deposits grew by 1.9% linked quarter to $21.1 billion. The company also noted an acceleration in deposit growth during May and June, with a year-to-date increase of $167 million (0.8%).

    4. Strategic balance sheet optimization and capital return initiatives contributed to positive sentiment.

    In June 2026, the company sold $160 million of lower-yielding securities at an average yield of 3.15% and reinvested $152 million at approximately 5.31%, incurring a $10.6 million loss but expecting an earn-back period of under 3.5 years. Additionally, Cathay General Bancorp increased its share repurchase authorization from $150 million to $200 million and planned to redeem $54.1 million of outstanding trust preferred securities. The company also declared a quarterly cash dividend of $0.38 per common share on August 14, 2026.

    5. Positive analyst revisions and price target increases followed the strong earnings report.

    Following the fiscal Q2 2026 results, Stephens raised its price target for Cathay General Bancorp to $63 from $56, maintaining an Equal Weight rating. Keefe, Bruyette & Woods also increased their price target to $67.00 from $64.00, maintaining a "market perform" rating.

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    Stock Movement Drivers

    Fundamental Drivers

    The 7.2% change in CATY stock from 5/31/2026 to 9/26/2026 was primarily driven by a 3.0% change in the company's Total Revenues ($ Mil).
    (LTM values as of)53120269262026Change
    Stock Price ($)57.3161.457.2%
    Change Contribution By: 
    Total Revenues ($ Mil)8458713.0%
    Net Income Margin (%)39.4%39.9%1.4%
    P/E Multiple11.611.92.6%
    Shares Outstanding (Mil)67670.0%
    Cumulative Contribution7.2%

    LTM = Last Twelve Months as of date shown

    Market Drivers

    5/31/2026 to 9/26/2026
    ReturnCorrelation
    CATY7.2% 
    Market (SPY)2.2%9.4%
    Sector (XLF)6.7%54.7%

    Fundamental Drivers

    The 25.2% change in CATY stock from 2/28/2026 to 9/26/2026 was primarily driven by a 11.4% change in the company's Total Revenues ($ Mil).
    (LTM values as of)22820269262026Change
    Stock Price ($)49.0861.4525.2%
    Change Contribution By: 
    Total Revenues ($ Mil)78287111.4%
    Net Income Margin (%)39.0%39.9%2.3%
    P/E Multiple11.111.97.2%
    Shares Outstanding (Mil)69672.6%
    Cumulative Contribution25.2%

    LTM = Last Twelve Months as of date shown

    Market Drivers

    2/28/2026 to 9/26/2026
    ReturnCorrelation
    CATY25.2% 
    Market (SPY)13.0%27.7%
    Sector (XLF)7.6%54.8%

    Fundamental Drivers

    The 26.5% change in CATY stock from 8/31/2025 to 9/26/2026 was primarily driven by a 14.5% change in the company's Total Revenues ($ Mil).
    (LTM values as of)83120259262026Change
    Stock Price ($)48.5861.4526.5%
    Change Contribution By: 
    Total Revenues ($ Mil)76087114.5%
    Net Income Margin (%)38.7%39.9%2.9%
    P/E Multiple11.511.92.8%
    Shares Outstanding (Mil)70674.4%
    Cumulative Contribution26.5%

    LTM = Last Twelve Months as of date shown

    Market Drivers

    8/31/2025 to 9/26/2026
    ReturnCorrelation
    CATY26.5% 
    Market (SPY)20.9%33.0%
    Sector (XLF)3.2%59.5%

    Fundamental Drivers

    The 88.9% change in CATY stock from 8/31/2023 to 9/26/2026 was primarily driven by a 93.9% change in the company's P/E Multiple.
    (LTM values as of)83120239262026Change
    Stock Price ($)32.5461.4588.9%
    Change Contribution By: 
    Total Revenues ($ Mil)8338714.6%
    Net Income Margin (%)46.3%39.9%-13.9%
    P/E Multiple6.111.993.9%
    Shares Outstanding (Mil)73678.2%
    Cumulative Contribution88.9%

    LTM = Last Twelve Months as of date shown

    Market Drivers

    8/31/2023 to 9/26/2026
    ReturnCorrelation
    CATY88.9% 
    Market (SPY)77.8%46.9%
    Sector (XLF)67.3%65.4%

    Return vs. Risk

    Price Returns Compared

     202120222023202420252026Total [1]
    Returns
    CATY Return38%-2%13%10%5%29%128%
    Peers Return54%3%-4%21%8%21%141%
    S&P 500 Return27%-19%24%23%16%13%105%

    Monthly Win Rates [3]
    CATY Win Rate75%58%42%50%42%67% 
    Peers Win Rate67%47%43%53%55%60% 
    S&P 500 Win Rate75%42%67%75%67%56% 

    Max Drawdowns [4]
    CATY Max Drawdown-20%-22%-38%-22%-23%-12% 
    Peers Max Drawdown-20%-22%-47%-19%-23%-15% 
    S&P 500 Max Drawdown-5%-25%-10%-8%-19%-9% 

    [1] Cumulative total returns since the beginning of 2021
    [2] Peers: EWBC, HOPE, HAFC, PFBC, CVBF.
    [3] Win Rate = % of calendar months in which monthly returns were positive
    [4] Max drawdown represents maximum peak-to-trough decline within a year
    [5] 2026 data is for the year up to 9/25/2026 (YTD)

    How Low Can It Go

    EventCATYS&P 500
    2025 US Tariff Shock
      % Loss-19.8%-18.8%
      % Gain to Breakeven24.7%23.1%
      Time to Breakeven81 days79 days
    Summer-Fall 2023 Five Percent Yield Shock
      % Loss-11.5%-9.5%
      % Gain to Breakeven13.0%10.5%
      Time to Breakeven9 days24 days
    2023 SVB Regional Banking Crisis
      % Loss-36.2%-6.7%
      % Gain to Breakeven56.8%7.1%
      Time to Breakeven217 days31 days
    2022 Inflation Shock & Fed Tightening
      % Loss-12.3%-24.5%
      % Gain to Breakeven14.1%32.4%
      Time to Breakeven55 days427 days
    2020 COVID-19 Crash
      % Loss-48.4%-33.7%
      % Gain to Breakeven93.7%50.9%
      Time to Breakeven289 days140 days
    Q4 2018 Fed Policy Error / Growth Scare
      % Loss-23.6%-19.2%
      % Gain to Breakeven30.9%23.8%
      Time to Breakeven791 days105 days

    Compare to EWBC, HOPE, HAFC, PFBC, CVBF

    In The Past

    Cathay General Bancorp's stock fell -19.8% during the 2025 US Tariff Shock. Such a loss loss requires a 24.7% gain to breakeven.

    Preserve Wealth

    Limiting losses and compounding gains is essential to preserving wealth.

    Asset Allocation

    Actively managed asset allocation strategies protect wealth. Learn more.

    EventCATYS&P 500
    2023 SVB Regional Banking Crisis
      % Loss-36.2%-6.7%
      % Gain to Breakeven56.8%7.1%
      Time to Breakeven217 days31 days
    2020 COVID-19 Crash
      % Loss-48.4%-33.7%
      % Gain to Breakeven93.7%50.9%
      Time to Breakeven289 days140 days
    Q4 2018 Fed Policy Error / Growth Scare
      % Loss-23.6%-19.2%
      % Gain to Breakeven30.9%23.8%
      Time to Breakeven791 days105 days
    2011 US Debt Ceiling Crisis & European Contagion
      % Loss-33.7%-17.9%
      % Gain to Breakeven50.8%21.8%
      Time to Breakeven148 days123 days
    2010 Eurozone Sovereign Debt Crisis / Flash Crash
      % Loss-30.4%-15.4%
      % Gain to Breakeven43.7%18.2%
      Time to Breakeven121 days125 days
    2008-2009 Global Financial Crisis
      % Loss-73.0%-53.4%
      % Gain to Breakeven270.5%114.4%
      Time to Breakeven1728 days1085 days

    Compare to EWBC, HOPE, HAFC, PFBC, CVBF

    In The Past

    Cathay General Bancorp's stock fell -19.8% during the 2025 US Tariff Shock. Such a loss loss requires a 24.7% gain to breakeven.

    Preserve Wealth

    Limiting losses and compounding gains is essential to preserving wealth.

    Asset Allocation

    Actively managed asset allocation strategies protect wealth. Learn more.

    About Cathay General Bancorp (CATY)

    Cathay General Bancorp (CATY) is a bank holding company that operates primarily through its subsidiary, Cathay Bank. It functions as a full-service commercial bank, offering a broad spectrum of financial products and services. The company's core business involves meeting the banking needs of individuals, professionals, and small to medium-sized businesses.

    The bank provides a comprehensive range of deposit products, including various checking and savings accounts, money market deposit accounts, certificates of deposit, and individual retirement accounts. On the lending side, Cathay Bank offers diverse loan products such as commercial mortgage loans, general commercial loans, Small Business Administration (SBA) loans, residential mortgage loans, real estate construction loans, home equity lines of credit, and installment loans for consumer expenditures. Beyond core banking, it also provides trade financing, letters of credit, wire transfers, online banking, and investment and insurance products.

    Headquartered in Los Angeles, California, Cathay General Bancorp maintains a substantial branch network across the United States, with significant presence in California, New York, Washington, Illinois, and Texas, as well as other states. The company extends its reach internationally through a branch in Hong Kong and representative offices in Beijing, Taipei, and Shanghai, serving a diverse customer base across these key domestic and international markets.

    AI Analysis | Feedback

    A Bank of America for Asian-American communities and businesses. A U.S. Bank focused specifically on the Asian-American market and U.S.-Asia trade.

    AI Analysis | Feedback

    • Deposit Services: Offers various accounts for saving and managing funds, including checking, savings, money market, certificates of deposit, and individual retirement accounts.
    • Lending Services: Provides diverse loan products such as commercial mortgage loans, commercial loans, residential mortgage loans, real estate construction loans, and consumer installment loans.
    • Trade Finance & Treasury Services: Includes services like trade financing, letters of credit, wire transfers, and currency spot and forward contracts for businesses.
    • Digital & Ancillary Banking Services: Offers modern conveniences like Internet banking, ATM services, safe deposit boxes, night deposit, and collection services.
    • Investment & Insurance Products: Provides access to securities and insurance products for clients.

    AI Analysis | Feedback

    The public company Cathay General Bancorp (symbol: CATY) serves a diverse customer base, rather than having a few major, identifiable corporate customers. Its clientele primarily consists of the following categories:
    • Individuals: Cathay General Bancorp offers a wide range of products and services to individuals, including various deposit accounts (passbook, checking, money market, certificates of deposit, individual retirement accounts), residential mortgage loans, home equity lines of credit, and installment loans for household and consumer expenditures.
    • Professionals: The company specifically caters to professionals, who likely utilize a combination of personal banking services and tailored financial solutions for their practices or professional needs.
    • Small to Medium-sized Businesses (SMBs): A significant portion of its customer base includes small to medium-sized businesses. For these entities, Cathay General Bancorp provides commercial mortgage loans, commercial loans, Small Business Administration (SBA) loans, real estate construction loans, trade financing, letters of credit, and other customary commercial banking services.

    AI Analysis | Feedback

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    AI Analysis | Feedback

    Chang M. Liu, President and Chief Executive Officer

    Chang M. Liu has served as the President and Chief Executive Officer of Cathay General Bancorp and Cathay Bank since October 2020, having been appointed President in 2019. He is also a member of both the Bancorp and Cathay Bank Boards. With over 31 years of experience in the financial services industry, Mr. Liu joined Cathay Bank in 2014 as Senior Vice President and Assistant Chief Lending Officer. He progressed to Executive Vice President and Chief Lending Officer in 2016, and Chief Operating Officer in 2018. Prior to his tenure at Cathay Bank, he held positions as Executive Vice President and Chief Lending Officer at Pacific Trust Bank and Banc of California, Senior Vice President of the Special Assets Group at U.S. Bank, and Senior Vice President of the Commercial Real Estate Group at California National Bank. Mr. Liu holds a bachelor of arts degree in economics from the University of California, Los Angeles.

    Albert J. Wang, Chief Financial Officer and Treasurer

    Albert J. Wang assumed the roles of Chief Financial Officer and Treasurer of Cathay General Bancorp and Cathay Bank effective March 1, 2026. He joined Cathay Bank as Executive Vice President and Deputy Chief Financial Officer in September 2025. Mr. Wang brings over 28 years of finance and accounting experience to his role. His previous experience includes serving as Executive Vice President and Chief Accounting Officer at Webster Bank from 2017 to 2025. He was also the Chief Accounting Officer at Banc of California, where he served as acting Chief Financial Officer. Earlier in his career, Mr. Wang held financial leadership roles at Santander Bank, including Chief Accounting Officer, and was a Senior Manager at PricewaterhouseCoopers LLP. He is a certified public accountant.

    Dunson K. Cheng, Executive Chairman of the Board

    Dunson K. Cheng serves as the Executive Chairman of the Board for Cathay General Bancorp and Cathay Bank, a position he has held since 1990. He was previously the Chairman of the Board and Chief Executive Officer of Cathay Bank. Mr. Cheng played a significant role in the merger between Cathay Bancorp and General Bank in 2003, a transaction that resulted in the creation of a larger bank focused on the Asian-American community.

    Anthony M. Tang, Vice Chairman of the Board

    Anthony M. Tang is the Vice Chairman of the Board of Cathay General Bancorp and Cathay Bank. He has been in this role since 1990.

    Albert Sun, Executive Vice President and Chief Credit Officer

    Albert Sun is the Executive Vice President and Chief Credit Officer of Cathay Bank.

    AI Analysis | Feedback

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    Here are the key risks to Cathay General Bancorp (symbol: CATY):

    1. Commercial Real Estate (CRE) Loan Concentration Risk: Cathay General Bancorp faces significant credit risk concerns, particularly due to its exposure to commercial real estate loans. This risk has intensified with hotter-than-expected inflation data and growing worries over regional banks' CRE portfolios, leading to pressure on the company's stock and questions about its profitability.
    2. Intense Competition and the Need for Continuous Technological Advancement: The banking sector is highly competitive, with Cathay General Bancorp facing pressure from both traditional banks and emerging fintech companies. The company's ability to maintain its market share and operational efficiency is challenged by the continuous need to invest in technological advancements. Failure to keep pace with digital transformation could lead to operational inefficiencies and a loss of market share.
    3. Market-Specific and Geographic Concentration Risk: While its focus on the Chinese-American community is a strength, it also exposes Cathay General Bancorp to market-specific risks. Economic fluctuations within this demographic or changes in immigration patterns could disproportionately affect the bank's performance. Additionally, the bank's significant presence in specific geographic locations, such as Southern California and New York State, makes it vulnerable to regional economic downturns or natural disasters.
    ```

    AI Analysis | Feedback

    The increasing proliferation and adoption of digital-only banks and fintech companies offering superior digital experiences, competitive rates, and lower fees for deposits and loans.

    The expansion of large technology companies (e.g., Apple, Google, Amazon) into core banking services, leveraging their massive user bases, technological capabilities, and integrated ecosystems to offer compelling financial products.

    AI Analysis | Feedback

    Cathay General Bancorp (symbol: CATY) operates Cathay Bank, providing a range of commercial banking products and services primarily in the United States, with a presence also in Hong Kong and representative offices in Beijing, Taipei, and Shanghai. The addressable markets for its main products and services are sizable within these regions.

    United States Addressable Markets:

    • Commercial Banking Market: The U.S. commercial banking market size is estimated at USD 765.53 billion in 2026 and is projected to reach USD 954.48 billion by 2031, growing at a Compound Annual Growth Rate (CAGR) of 4.51%. Another estimate places the market at USD 732.5 billion in 2025, with a forecast to reach USD 915.45 billion by 2030 at a CAGR of 4.56%.
    • Deposit Products: Total commercial bank deposits in the U.S. surpassed $18.5 trillion as of October 2025, with a year-over-year growth rate ranging between 3.9% and 4.1%. Total domestic deposits grew by approximately $900 billion by Q3 2025, following Federal Reserve interest rate cuts, and are tracking a historical growth path with a CAGR of about 3%. As of Q2 2025, community banks held 16.6% of total domestic deposits.
    • Commercial Mortgage Loans: Total commercial real estate (CRE) mortgage borrowing and lending in the U.S. was estimated at $498 billion in 2024, a 16% increase from the previous year. The broader U.S. Real Estate Loan Market, which includes residential, commercial, and industrial property developments, was valued at USD 3.5 trillion in 2024 and is projected to grow at a CAGR of 10.6%. The U.S. Real Estate Loans & Collateralized Debt industry is expected to be $492.0 billion in 2026.
    • Commercial Loans (Commercial and Industrial Loans): Commercial and Industrial Loans for all U.S. commercial banks amounted to approximately $2.79 trillion in February 2026. North America, where the U.S. holds about 75% of the market share, is projected to reach a valuation of USD 2,892.50 billion by 2025 for commercial lending.
    • Small Business Administration (SBA) Loans: The U.S. small business loan market was valued at $245.39 billion in 2023 and is projected to reach $349.64 billion by 2033, with a CAGR of 3.4% from 2024 to 2033. SBA lending is forecast to increase by 10-12% in 2025, reaching $55-56 billion.
    • Residential Mortgage Loans: The U.S. home loan market reached USD 2.42 trillion in 2026 and is forecasted to grow to USD 3.17 trillion by 2031, exhibiting a CAGR of 5.56%. Total single-family mortgage origination volume is expected to increase to $2.2 trillion in 2026 from $2.0 trillion in 2025.
    • Home Equity Lines of Credit (HELOCs): The U.S. home equity lending market was valued at USD 179.21 billion in 2025 and is estimated to grow to USD 228.25 billion by 2031, at a CAGR of 4.12%. Outstanding HELOC balances increased by $12 billion in the fourth quarter of 2025, totaling $433 billion. Lenders originated 1.208 million HELOCs in 2025, an 11% increase from 2024.
    • Installment Loans to Individuals (Consumer Loans): The overall U.S. consumer lending market has a size of $27 trillion and is growing. Consumer loans at U.S. banks totaled nearly $2 trillion in June 2025. Outstanding credit card balances reached $1.28 trillion in Q4 2025.

    Hong Kong Addressable Markets:

    • Banking Industry: The total assets of all licensed banks in Hong Kong rose by 4.5% to HK$24 trillion (approximately USD 3.07 trillion) by the end of 2024. The Hong Kongese banking industry recorded total assets of $3,712 billion in 2024. Total gross loans and advances of all surveyed banks in Hong Kong were HK$9,502 billion (approximately USD 1.22 trillion) by the end of 2024.
    • Retail Banking Market: The Hong Kong retail banking market is estimated at USD 23.7 billion in 2025 and is forecast to expand to USD 31.9 billion by 2033, representing a CAGR of 3.8%.

    AI Analysis | Feedback

    Cathay General Bancorp (CATY) is expected to drive future revenue growth over the next two to three years through several key strategies:

    1. Loan Growth: Cathay General Bancorp anticipates a significant increase in its loan portfolio. For 2026, the company expects loan growth to range between 3.5% and 4.5%. This expansion in lending activities is a primary driver for the bank's net interest income.
    2. Deposit Growth and Optimized Funding Costs: The company projects deposit growth to be between 4% and 5% in 2026, fueled by seasonal factors and targeted marketing efforts. An increase in deposits provides a stable and lower-cost funding base for loans, which contributes to an improved net interest margin (NIM). The net interest margin increased in the fourth quarter of 2025, primarily due to a lower cost of funds.
    3. Expansion of Noninterest Income and Fee-Based Services: While net interest income is the main revenue component, growth in noninterest income, which increased in Q4 2025, is also a key focus. This includes revenue from various banking services, credit products, wealth management, and trading activities. A strategic emphasis on wealth management, foreign exchange (FX) services, and other fee-generating businesses is expected to offset potential normalization in the net interest margin.
    4. Strategic Focus on Core Customer Segments and Digital Banking Enhancements: Cathay General Bancorp's established focus on serving individuals, professionals, and small to medium-sized businesses in its existing markets, including various U.S. states and Hong Kong, positions it favorably for future growth. Continued targeted marketing activities within these segments can drive customer acquisition and deposit growth. Furthermore, ongoing enhancements in digital banking services and online platforms are crucial for improving customer experience and operational efficiency, supporting growth across its customer base.

    AI Analysis | Feedback

    Share Repurchases

    • Cathay General Bancorp authorized a new share repurchase program of up to $150,000,000 of its common stock on June 4, 2025.
    • The previous $125,000,000 share repurchase program, announced on May 28, 2024, was completed on February 28, 2025, with 2,905,487 shares repurchased at an average cost of $43.02 per share.
    • In Q4 2025, the company spent $52 million on share buybacks, contributing to a full-year 2025 buyback spending of just under $180 million, which was $95 million more than in 2024.

    Share Issuance

    • The number of common shares outstanding was approximately 70,285,292 as of February 14, 2025.
    • As of June 4, 2025, the company had approximately 70,133,321 shares of common stock outstanding.
    • The company's share count fell by 5% in 2025, primarily due to increased share repurchases.

    Outbound Investments

    • Cathay General Bancorp acts as the holding company for ten limited partnerships that invest in affordable housing.
    • The company also has a subsidiary, GBC Venture Capital, Inc., which is part of its investment structure.
    • Cathay General Bancorp finances affordable housing and renewable energy projects that generate tax credits, with Q2 2024 results including $4.1 million from accelerated amortization of solar tax credit investments.

    Capital Expenditures

    • Cathay General Bancorp reported capital expenditures of -$3 million in 2025 and -$4 million in 2024.

    Peer Outperformance in Regional Banks

    CATY has outperformed 60% of its 264 Regional Banks peers over 5Y. Regional Banks ranks 7th of 18 industries in Financials by median 5Y return.
    Share of Regional Banks constituents that CATY has outperformed, by holding period. Peers without a full price history over a given window are excluded from that window.
    1Y
    61%
    of 288 industry peers · 29.9% return
    3Y
    54%
    of 277 industry peers · 96.3% return
    5Y
    60%
    of 264 industry peers · 70.1% return
    null
    Median price return by industry across the Financials sector, ranked by 5Y. Regional Banks is CATY's own industry. Use this to see which corners of the sector have carried the returns.
    Industry Names 1Y med3Y med5Y med Top 3 by 5Y
    Reinsurance 7 23.0%66.3%109.3% SPNT 171% · RGA 145% · RNR 142%
    Diversified Banks 13 32.6%133.8%107.8% CM 147% · RY 139% · JPM 133%
    Investment Banking & Brokerage 13 -4.2%106.7%106.1% IBKR 458% · SNEX 235% · HOOD 167%
    Life & Health Insurance 20 4.5%51.6%91.2% JXN 515% · UNM 323% · FG 194%
    Multi-Sector Holdings 4 3.7%50.7%76.9% JONE 362% · BRK-B 81% · VOYA 73%
    Property & Casualty Insurance 42 5.9%66.6%61.2% ASIC 2714900% · HRTG 389% · UVE 296%
    Regional Banks ← 265 24.2%93.3%57.3% ESQ 358% · BLX 340% · GCBC 298%
    Multi-line Insurance 9 4.1%67.9%53.9% GNW 142% · L 98% · SLF 92%
    Financial Exchanges & Data 15 -1.1%19.8%33.2% VIRT 161% · CBOE 123% · CME 64%
    Diversified Financial Services 4 -4.8%23.3%23.0% FRHC 168% · EQH 100% · TMS -54%
    Consumer Finance 30 -0.5%86.5%16.0% ENVA 392% · EZPW 291% · FCFS 159%
    Insurance Brokers 16 -21.2%-9.6%12.7% LIFE 246% · ARX 88% · AJG 60%
    Commercial & Residential Mortgage Finance 13 -51.8%22.0%7.6% FNMA 428% · FMCC 394% · ACT 170%
    Asset Management & Custody Banks 86 -8.6%17.8%5.5% WT 330% · SII 276% · VCTR 273%
    Specialized Finance 3 21.2%44.7%-7.6% EFC 23% · CACC -8% · HASI -20%
    Mortgage REITs 33 -14.2%10.0%-26.0% NREF 54% · RITM 35% · DX 25%
    Transaction & Payment Processing Services 17 1.1%-5.6%-44.4% V 66% · MA 64% · CPAY 47%
    Diversified Capital Markets 24 -30.6%6.5%-58.8% OPY 190% · CD 121% · LPLA 100%
    Median of constituents with a full price history over each window. Top names are unfiltered by size in this render.

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    Financials

    CATYEWBCHOPEHAFCPFBCCVBFMedian
    NameCathay G.East Wes.Hope Ban.Hanmi Fi.Preferre.CVB Fina. 
    Mkt Price61.45127.2313.8332.10109.4822.5346.78
    Mkt Cap4.117.51.80.91.33.82.8
    Rev LTM8713,068576286286574575
    Op Inc LTM-------
    FCF LTM5341,863188210167572372
    FCF 3Y Avg3961,590197101165347272
    CFO LTM5411,975203213169577377
    CFO 3Y Avg4021,630209104167352280

    Growth & Margins

    CATYEWBCHOPEHAFCPFBCCVBFMedian
    NameCathay G.East Wes.Hope Ban.Hanmi Fi.Preferre.CVB Fina. 
    Rev Chg LTM14.5%14.2%29.6%16.1%2.6%20.2%15.3%
    Rev Chg 3Y Avg2.0%6.3%-0.4%2.4%1.5%1.3%1.7%
    Rev Chg Q13.1%12.7%56.4%10.7%4.5%42.0%12.9%
    QoQ Delta Rev Chg LTM3.0%3.0%10.2%2.5%1.0%10.2%3.0%
    Op Inc Chg LTM-------
    Op Inc Chg 3Y Avg-------
    Op Mgn LTM-------
    Op Mgn 3Y Avg-------
    QoQ Delta Op Mgn LTM-------
    CFO/Rev LTM62.2%64.4%35.2%74.5%59.1%100.5%63.3%
    CFO/Rev 3Y Avg50.0%58.7%40.6%38.7%58.4%65.3%54.2%
    FCF/Rev LTM61.4%60.7%32.7%73.4%58.2%99.7%61.0%
    FCF/Rev 3Y Avg49.3%57.4%38.3%37.6%57.7%64.4%53.4%

    Valuation

    CATYEWBCHOPEHAFCPFBCCVBFMedian
    NameCathay G.East Wes.Hope Ban.Hanmi Fi.Preferre.CVB Fina. 
    Mkt Cap4.117.51.80.91.33.82.8
    P/S4.75.73.13.34.66.64.7
    P/Op Inc-------
    P/EBIT-------
    P/E11.912.113.510.69.818.212.0
    P/CFO7.68.98.74.47.86.57.7
    Total Yield10.8%10.5%11.5%12.9%13.0%8.4%11.1%
    Dividend Yield2.4%2.2%4.1%3.5%2.9%2.9%2.9%
    FCF Yield 3Y Avg11.7%11.8%13.8%13.0%14.4%11.2%12.4%
    D/E0.00.20.40.10.30.10.2
    Net D/E-0.5-0.2-0.1-0.4-0.3-0.2-0.2

    Returns

    CATYEWBCHOPEHAFCPFBCCVBFMedian
    NameCathay G.East Wes.Hope Ban.Hanmi Fi.Preferre.CVB Fina. 
    1M Rtn-0.5%-1.9%-0.7%3.0%5.9%1.0%0.3%
    3M Rtn-0.4%-1.1%2.8%-0.9%5.2%1.2%0.4%
    6M Rtn27.4%23.9%29.3%26.2%24.5%21.0%25.3%
    12M Rtn29.9%20.4%33.1%34.2%23.8%21.0%26.9%
    3Y Rtn96.3%167.2%84.3%131.6%96.3%58.1%96.3%
    1M Excs Rtn-1.2%-3.3%-1.5%2.4%4.8%-0.3%-0.8%
    3M Excs Rtn-5.7%-6.4%-2.5%-6.2%-0.1%-4.1%-4.9%
    6M Excs Rtn5.9%1.8%7.2%4.6%4.3%-0.8%4.4%
    12M Excs Rtn13.4%6.7%15.9%18.8%6.6%3.1%10.1%
    3Y Excs Rtn12.8%81.6%2.8%53.6%20.9%-21.7%16.9%

    Comparison Analyses

    null

    Financials

    $ Mil | FY: 12/312026Q22026Q12025Q42025Q32025Q22025Q12024Q42024Q32024Q22024Q12023Q42023Q3
    Period End6/30/20263/31/202612/31/20259/30/20256/30/20253/31/202512/31/20249/30/20246/30/20243/31/202412/31/20239/30/2023
    Filing Date8/7/20265/8/20263/2/202611/7/20258/8/20255/9/20252/28/202511/8/20248/8/20245/8/20242/29/202411/8/2023
    Key Financials Quarterly            
    Total Revenue222215223211197188186190179175205193
    Net Income928791787770806867718382
    EPS1.381.301.341.131.110.991.130.940.920.981.141.14
    Key Financials TTM            
    Total Revenue TTM871845818782760742730748752779810819
    Net Income TTM347333315305295284286288303330354369
    Growth Rates Quarterly            
    Total Revenue Growth13.1%14.4%19.5%11.1%10.1%7.2%-9.1%-2.0%-12.8%-15.2%-4.0%-6.7%
    Net Income Growth19.1%25.0%12.9%15.0%15.9%-2.7%-2.8%-18.0%-28.3%-25.6%-15.4%-16.8%
    Margins Quarterly            
    Net Income Margin41.5%40.4%40.6%36.9%39.4%37.0%43.0%35.6%37.4%40.8%40.2%42.6%
    Cash & Debt            
    Total Cash2,3182,2162,3912,2132,0851,9662,5872,8472,7542,8292,4332,672
    Total Debt154169173360583264228230337436710189
    Net Debt / (Cash)-2,164-2,047-2,219-1,853-1,501-1,702-2,359-2,617-2,416-2,393-1,724-2,482
    Cash Flows Quarterly            
    FCF from Operations237985515164998781738866107
    Cash Flows TTM            
    FCF from Operations TTM541368369400331340329308334352385420
    Returns to Shareholders Quarterly            
    Dividends252523232424242425252525
    Share Repurchases1413525136412435-0-0-0-0
    Return on Invested Capital (ROIC) Quarterly            
    ROIC------------
    Return on Invested Capital (ROIC) TTM            
    ROIC TTM------------

    Segment Financials

    Revenue by Segment
    $ Mil20252024202320222021
    Single Segment818730810791652
    Total818730810791652


    Price Behavior

    Price Behavior
    Market Price$61.45 
    Market Cap ($ Bil)4.1 
    First Trading Date12/17/1990 
    Distance from 52W High-4.8% 
       50 Days200 Days
    DMA Price$62.34$55.45
    DMA Trendupup
    Distance from DMA-1.4%10.8%
     3M1YR
    Volatility16.6%23.6%
    Downside Capture46.0050.73
    Upside Capture31.6671.50
    Correlation (SPY)13.5%33.7%
    CATY Betas & Captures as of 8/31/2026

     1M2M3M6M1Y3Y
    Beta0.410.300.110.400.640.90
    Up Beta0.880.39-0.130.390.701.00
    Down Beta0.30-0.64-0.110.090.600.83
    Up Capture-7%33%41%63%61%75%
    Bmk +ve Days10213268138427
    Stock +ve Days10213877137383
    Down Capture58%72%15%33%63%95%
    Bmk -ve Days11213259113324
    Stock -ve Days11212650113361

    [1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
    Based On 1-Year Data
    Annualized
    Return    		Annualized
    Volatility    		Sharpe
    Ratio    		Correlation
    with CATY
    CATY30.2%23.5%1.05-
    Sector ETF (XLF)3.6%14.7%0.0260.7%
    Equity (SPY)17.7%13.0%0.9833.6%
    Gold (GLD)14.7%29.3%0.46-4.8%
    Commodities (DBC)44.3%20.7%1.66-19.6%
    Real Estate (VNQ)4.5%13.6%0.0738.0%
    Bitcoin (BTCUSD)-25.9%44.8%-0.5412.6%

    Smart multi-asset allocation framework can stack odds in your favor. Learn How
    Based On 5-Year Data
    Annualized
    Return    		Annualized
    Volatility    		Sharpe
    Ratio    		Correlation
    with CATY
    CATY12.6%30.0%0.42-
    Sector ETF (XLF)9.7%18.4%0.3969.6%
    Equity (SPY)13.3%17.2%0.5954.0%
    Gold (GLD)19.2%18.8%0.83-2.2%
    Commodities (DBC)10.8%19.6%0.439.6%
    Real Estate (VNQ)0.9%18.9%-0.0651.3%
    Bitcoin (BTCUSD)12.2%52.6%0.4121.9%

    Smart multi-asset allocation framework can stack odds in your favor. Learn How
    Based On 10-Year Data
    Annualized
    Return    		Annualized
    Volatility    		Sharpe
    Ratio    		Correlation
    with CATY
    CATY10.6%33.3%0.38-
    Sector ETF (XLF)13.0%22.1%0.5379.4%
    Equity (SPY)15.5%17.9%0.7361.1%
    Gold (GLD)12.1%16.4%0.61-5.7%
    Commodities (DBC)8.5%18.1%0.3820.9%
    Real Estate (VNQ)4.8%20.7%0.1955.0%
    Bitcoin (BTCUSD)63.8%66.2%1.0317.2%

    Smart multi-asset allocation framework can stack odds in your favor. Learn How

    Short Interest

    Short Interest: As Of Date9152026
    Short Interest: Shares Quantity3.0 Mil
    Short Interest: % Change Since 83120268.2%
    Average Daily Volume0.4 Mil
    Days-to-Cover Short Interest7.3 days
    Basic Shares Quantity67.0 Mil
    Short % of Basic Shares4.5%

    Returns Analyses

    Earnings Returns History

    Updated 8/24/2026
    Expand for More
     Forward Returns
    Earnings Date1D Returns5D Returns21D Returns
    7/22/20261.9%3.1%1.7%
    4/22/20262.7%1.9%6.5%
    1/22/2026-3.0%-3.1%-2.0%
    10/21/2025-2.0%-1.3%-2.1%
    7/22/20251.3%-2.6%-0.3%
    4/21/20257.1%8.8%15.5%
    1/22/2025-3.9%-3.3%-6.0%
    10/21/20241.8%4.2%14.3%
    ...
    SUMMARY STATS   
    # Positive111514
    # Negative13910
    Median Positive1.9%2.3%7.8%
    Median Negative-2.6%-3.3%-4.1%
    Max Positive7.1%9.3%29.4%
    Max Negative-4.7%-7.0%-10.2%
     Collapse to Preview
     Forward Returns
    Earnings Date1D Returns5D Returns21D Returns
    7/22/20261.9%3.1%1.7%
    4/22/20262.7%1.9%6.5%
    1/22/2026-3.0%-3.1%-2.0%
    10/21/2025-2.0%-1.3%-2.1%
    7/22/20251.3%-2.6%-0.3%
    4/21/20257.1%8.8%15.5%
    1/22/2025-3.9%-3.3%-6.0%
    10/21/20241.8%4.2%14.3%
    7/22/20240.7%2.3%-2.3%
    4/22/2024-4.7%-5.1%1.8%
    1/24/2024-2.0%-6.3%-10.2%
    10/23/2023-0.9%1.7%9.7%
    7/24/20233.2%4.9%-6.4%
    4/20/2023-0.5%-7.0%-9.3%
    1/25/2023-2.1%3.1%3.0%
    10/24/20225.0%8.1%8.6%
    7/25/2022-2.6%0.9%5.1%
    4/25/2022-4.3%-5.4%-9.6%
    1/27/20224.6%9.3%11.1%
    10/25/2021-3.0%-0.8%5.2%
    7/26/2021-0.2%1.2%7.0%
    4/26/20211.8%2.2%-1.0%
    1/27/20211.3%1.0%8.8%
    10/26/2020-3.1%1.1%29.4%
    SUMMARY STATS   
    # Positive111514
    # Negative13910
    Median Positive1.9%2.3%7.8%
    Median Negative-2.6%-3.3%-4.1%
    Max Positive7.1%9.3%29.4%
    Max Negative-4.7%-7.0%-10.2%

    SEC Filings

    Expand for More
    Report DateFiling DateFiling
    06/30/202608/07/202610-Q
    03/31/202605/08/202610-Q
    12/31/202503/02/202610-K
    09/30/202511/07/202510-Q
    06/30/202508/08/202510-Q
    03/31/202505/09/202510-Q
    12/31/202402/28/202510-K
    09/30/202411/08/202410-Q
    06/30/202408/08/202410-Q
    03/31/202405/08/202410-Q
    12/31/202302/29/202410-K
    09/30/202311/08/202310-Q
    06/30/202308/08/202310-Q
    03/31/202305/09/202310-Q
    12/31/202202/28/202310-K
    09/30/202211/08/202210-Q
     Collapse to Preview
    Report DateFiling DateFiling
    06/30/202608/07/202610-Q
    03/31/202605/08/202610-Q
    12/31/202503/02/202610-K
    09/30/202511/07/202510-Q
    06/30/202508/08/202510-Q
    03/31/202505/09/202510-Q
    12/31/202402/28/202510-K
    09/30/202411/08/202410-Q
    06/30/202408/08/202410-Q
    03/31/202405/08/202410-Q
    12/31/202302/29/202410-K
    09/30/202311/08/202310-Q
    06/30/202308/08/202310-Q
    03/31/202305/09/202310-Q
    12/31/202202/28/202310-K
    09/30/202211/08/202210-Q
    06/30/202208/09/202210-Q
    03/31/202205/09/202210-Q
    12/31/202103/01/202210-K
    09/30/202111/08/202110-Q
    06/30/202108/09/202110-Q
    03/31/202105/07/202110-Q
    12/31/202003/01/202110-K
    09/30/202011/09/202010-Q
    06/30/202008/10/202010-Q
    03/31/202005/08/202010-Q
    12/31/201903/02/202010-K
    09/30/201911/08/201910-Q

    Insider Activity

    Updated 9/25/2026
    Expand for More
    #OwnerTitleHoldingActionFiling DatePriceSharesTransacted
    Value    		Value of
    Held Shares    		Form
    1Sun, Richard Ivy Sun Separate TrustSell903202662.311,00062,315137,093Form
    2Lo, Thomas MEVP, Chief Admin OfficerDirectSell827202662.471,60099,952147,554Form
    3Sun, Richard Ivy Sun Separate TrustSell827202662.081,00062,083198,667Form
    4Sun, Richard by RIS Family Limited PartnershipSell812202663.093,000189,270176,652Form
    5Sun, Richard JKLM Limited PartnershipSell731202662.435,000312,126144,514Form
     Collapse to Preview
    #OwnerTitleHoldingActionFiling DatePriceSharesTransacted
    Value    		Value of
    Held Shares    		Form
    1Sun, Richard Ivy Sun Separate TrustSell903202662.311,00062,315137,093Form
    2Lo, Thomas MEVP, Chief Admin OfficerDirectSell827202662.471,60099,952147,554Form
    3Sun, Richard Ivy Sun Separate TrustSell827202662.081,00062,083198,667Form
    4Sun, Richard by RIS Family Limited PartnershipSell812202663.093,000189,270176,652Form
    5Sun, Richard JKLM Limited PartnershipSell731202662.435,000312,126144,514Form
    6Sun, Richard Sun TrustSell731202663.315,000316,559401,397Form
    7Sun, Richard JKLM Limited PartnershipSell731202663.3310,000633,343463,290Form
    8Sun, Richard Sun TrustSell731202663.2910,000632,899717,707Form
    9Tang, Anthony MVice ChairmanDirectSell610202659.925,000299,6008,860,730Form
    10Tang, Anthony MVice ChairmanDirectSell608202658.9010,000589,0029,004,427Form
    11Tang, Anthony MVice ChairmanDirectSell608202658.375,000291,8449,506,893Form
    12Tang, Anthony MVice ChairmanDirectSell608202658.1610,000581,6339,764,222Form
    13Wu, PeterVice ChairmanPACJU, LLCSell507202657.3320,0001,146,50615,778,903Form
    14Chan, May KSVP, General CounselDirectSell429202656.0055831,258150,808Form
    15Liu, ChangPresident & CEODirectSell407202650.354,836243,5066,436,032Form
    16Fernandez, Felix S Felix & Katherine Fernandez TrustSell210202650.548,972453,445756,078Form
    17Lo, Thomas MEVP, Chief Admin OfficerDirectSell202202650.231,00050,232100,463Form
    18Tang, Anthony MVice ChairmanDirectSell1204202549.885,000249,4208,793,701Form
    19Tang, Anthony MVice ChairmanDirectSell1204202549.005,000245,0008,882,867Form
    20Cheng, Dunson KExecutive ChairmanDirectSell1126202547.817,590362,8436,614,355Form
    21Cheng, Dunson KExecutive ChairmanDirectSell1121202547.8510,000478,5246,984,058Form
    22Cheng, Dunson KExecutive ChairmanDirectSell1121202546.2414,000647,4157,211,736Form
    23Cheng, Dunson KExecutive ChairmanDirectSell1121202545.751,00045,7507,775,229Form
    24Liu, ChangPresident & CEODirectSell1030202546.245,165238,8295,016,012Form
    25Lo, Thomas MEVP, Chief Admin OfficerDirectSell1029202546.831,00046,828140,485Form

    CATY Trade Sentinel

    Stock Conviction

    Constructive

    CONVICTION RATIONALE

    Conviction is constructive based on eight consecutive quarters of net interest margin expansion to 3.48%, demonstrating superior execution. Accelerating loan growth and a robust, fully-funded shareholder yield provide a clear path for value creation. The primary watch-item is the durability of margin in the face of rising deposit costs.

    STOCK ARCHETYPE
    Net Interest Income (Spread Business)

    Net Interest Income = (Volume of Interest-Earning Assets * Average Yield) - (Volume of Interest-Bearing Liabilities * Average Cost) Net Interest Margin (NIM) expansion, driven by disciplined management of loan pricing and deposit costs.

    Looking for high-conviction positions with a better risk/reward profile? See what's currently in the Trefis High Quality Portfolio.
    INVESTMENT THESIS
    Can disciplined execution sustain best-in-class profitability?

    Evidence suggests yes. The bank is leveraging its niche market focus to deliver superior and expanding margins.

    Mechanism: Profits from expanding the net interest margin, which reached 3.48% in Q2, while growing the loan book, which is guided to grow 3.5% to 4.5% in 2026.
    Supporting Evidence:
    • Net interest margin expanded for the eighth consecutive quarter to 3.48%.
    • Management is confident in its full year NIM target of 3.4% to 3.5%.
    • The adjusted efficiency ratio was a low 37.0% in Q2 2026.
    • A robust total shareholder yield is fully funded by cash flow.
    PRIMARY RISK
    Peak Margin Compression

    Intense competition for deposits could halt or reverse the trend of margin expansion, compressing profitability as funding costs rise faster than asset yields.

    Mechanism: A sequential decline in the reported Net Interest Margin would confirm this risk.
    Supporting Evidence:
    • The company must replace $3.4 billion of CDs that are rolling off.
    • Management expects to replace these CDs at a slightly higher yield.
    • Competition for deposits is described as substantial by the company.
    • Year-over-year revenue growth has decelerated from 19.5% two quarters ago.
    Key KPI Watchlist
    KPI Status Rationale
    Loan Growth2.2% linked-quarter growth for Q2 2026 - AcceleratingLoan growth showed a marked acceleration in the most recent quarter after a slow start to the year. Management noted that Q1 growth was softer than anticipated but that activity accelerated meaningfully in Q2, with a solid pipeline heading into the second half of the year.
    Net Interest Margin (NIM)3.48% in Q2 2026 - StableThe company has delivered its eighth consecutive quarter of NIM expansion, driven by a continued focus on managing funding costs. The pace of expansion moderated slightly in the latest quarter but remains on a consistent upward trajectory.
    Full Year Loan Growth3.5% to 4.5% (Guidance) (FY 2026)Indicates the expected growth rate of the bank's primary interest-earning assets. Achieving this target is key to growing net interest income.
    Full Year Deposit Growth3% to 4% (Guidance) (FY 2026)Measures the growth of the bank's funding base. Strong growth in low-cost core deposits is crucial for funding loan growth and managing interest expense.
    Adjusted Efficiency Ratio37.0% (Q2 2026)Measures noninterest expense as a percentage of revenue. A lower ratio indicates better operational efficiency and cost control.
    Core Investment Debate

    Margin Discipline vs. Deposit Competition

    BULL VIEW

    Eight straight quarters of NIM expansion prove management can manage funding costs through mix and pricing, offsetting competitive pressure and protecting profitability.

    CORE TENSION

    Can disciplined cost management, which reduced deposit costs by 10 basis points last quarter, offset the pressure from replacing $3.4 billion in maturing CDs at higher rates?

    PREVAILING SENTIMENT
    CAUTIOUSLY BULLISH

    The latest evidence favors the bull view. Q2 2026 NIM expanded to 3.48%, and management reaffirmed its full-year guidance, suggesting confidence in managing the rollovers.

    BEAR VIEW

    The need to replace $3.4 billion in CDs at higher rates will finally overwhelm pricing discipline, causing the multi-quarter streak of NIM expansion to end.

    Next 6 months: Risks and Catalysts
    Timeline Event & Metric To Watch
    10/19/2026
    Deposit Cost Pressure
    Watch: A sequential decline in Net Interest Margin (NIM) or a significant increase in the cost of interest-bearing deposits.
    10/19/2026
    Slowing Revenue Growth
    Watch: Further deceleration in year-over-year quarterly revenue growth below the peer average or a downward revision to management's outlook.
    10/19/2026
    Company Earnings Report
    Watch: Cathay General Bancorp is scheduled to report Q3 2026 earnings.
    10/20/2026
    Commercial Real Estate Credit Deterioration
    Watch: An increase in non-performing assets, criticized loans, or net charge-offs, particularly in the CRE portfolio, in either the company's or its peers' earnings reports.
    Key Events in Last 6 Months
    Date Event Stock Impact
    2026-08-03
    Insider Stock Sale Reported
    Details: A press report on August 3rd stated that a director sold 20,000 shares of stock on July 29th for a total value of $1,266,200.00.
    +1.8%
    $62.80 -> $63.96
    2026-07-22
    Share Repurchase Authorization Increased
    Details: The Board of Directors approved an increase in the share repurchase authorization from $150 million to $200 million, subject to regulatory approval.
    +0.8%
    $61.68 -> $62.15
    2026-07-22
    Second Quarter Earnings Beat
    Details: The company reported Q2 earnings of $1.37 per share, beating the consensus estimate of $1.33. This compared to $1.10 per share a year ago.
    +0.8%
    $61.68 -> $62.15
    2026-06-29
    Details:
    -0.1%
    $61.67 -> $61.61
    2026-04-22
    First Quarter Earnings Reported
    Details: The company reported Q1 net income of $86.9 million and diluted EPS of $1.29. The quarter included a $15.7 million impairment from a securities portfolio repositioning.
    +3.2%
    $52.88 -> $54.55
    2026-03-29
    Brokerages Issue Hold Recommendation
    Details: According to press reports, the company received a consensus recommendation of "Hold" from five brokerages, with three rating it a hold and two a buy.
    -1.4%
    $48.97 -> $48.27
    Risk Management
    Position Sizing

    4% - 6%

    NORMAL POSITION

    Sizing is volatility-based: CATY trades at roughly 33% annualized options-implied volatility versus about 13% for the S&P 500 (2.4x the market), around the 57th percentile of its own trailing year. A 4% - 6% position keeps a single-name swing of that size within a diversified portfolio's risk budget.

    Diversification Alternatives
    EWBC - East West Bancorp
    Larger-Scale Peer

    EWBC offers greater scale, with revenue 3.5 times larger than CATY, and invests significantly more in infrastructure, with capital expenditures of $112.5 million versus CATY's $6.9 million.

    Core Thesis: A larger, well-run institution in the same niche, offering potentially more stable growth and stronger fee-based income from areas like wealth management.
    HOPE - Hope Bancorp
    Higher-Growth Alternative

    Hope Bancorp has demonstrated faster top-line growth, with trailing-twelve-month revenue growth of 29.6% compared to CATY's 14.5%, and reported 8% annualized loan growth in Q2.

    Core Thesis: An investment in a smaller peer that is currently exhibiting more aggressive balance sheet growth, albeit with a lower net interest margin.
    How Is The Market Pricing CATY?

    A disciplined, community-focused bank leveraging its niche market position to drive profitable growth and robust capital returns.

    Cathay General Bancorp is a regional bank that has successfully cultivated a defensible niche serving Chinese-American communities. This focus provides a stable, low-cost deposit base that funds a well-diversified loan portfolio. The company is demonstrating effective balance sheet management through securities repositioning and a focus on improving its funding mix, leading to consistent net interest margin expansion. Strong capital levels are enabling significant shareholder returns via dividends and buybacks.

    What will confirm the thesis

    Continued net interest margin expansion, achieving or exceeding loan and deposit growth guidance, and sustained share repurchase activity.

    What will damage the thesis

    A sharp contraction in net interest margin, significant deterioration in credit quality (rising non-performing assets or charge-offs), or a failure to meet growth targets due to competitive pressures.

    Noise: Real but irrelevant to thesis

    Minor quarterly fluctuations in noninterest income from items like gains on equity securities, which management has highlighted as volatile.

    Repricing Catalyst

    The ongoing balance sheet optimization, including securities portfolio repositioning and the planned redemption of high-cost trust preferred securities, is expected to improve future earnings and support further margin expansion.

    What CATY Makes & Who Pays
    TTM figures based on the twelve months through fiscal Q1 2026
    CATY Evolution: Price Return by Era
    2025-2026 · Post-Pandemic Growth Acceleration
    +36%
    The company has seen an acceleration in revenue growth, with trailing-twelve-month revenue growth increasing from 1.1% a year ago to 14.5% in the most recent period. This has been accompanied by a strategic focus on balance sheet optimization, including selling lower-yielding securities to reinvest at higher yields and actively managing its funding mix to lower deposit costs, resulting in eight consecutive quarters of NIM expansion as of mid-2026.
    2026 · Shareholder Return Focus
    +28%
    With strong capital levels, the company has intensified its focus on returning capital to shareholders. In 2026, it increased its dividend by 11.8%, completed a $150 million share repurchase program, and subsequently announced a new, larger $200 million buyback authorization. The buyback-to-stock-compensation ratio is high, indicating repurchases are meaningfully reducing share count.
    Market Is In Wait-and-See Mode
    Price structure is showing early stress, with SMA alignment beginning to break down. Relative to SPY: Lagging the market on the 63D window, but 'relative strength' is beginning to stabilize; watch for inflection. Volume and momentum are mixed. There is no clear institutional footprint in either direction. Earnings history is mildly cautionary. The reaction or drift are negative, and the market is beginning to push back on the thesis.
    ① Structure
    -1
    Structural pillar score (-4 to +4). Driven by trend regime, SMA cross events, proximity to 52W high, and relative strength vs SPY.
    ② Volume / Momentum
    0
    Volume/Momentum pillar score (-4 to +4). Driven by institutional footprint score, OBV divergence, and momentum character.
    ③ Catalyst
    -1
    Catalyst pillar score (-4 to +4). Driven by earnings day reaction, 20D post-earnings drift, and post-earnings volume character.
    Combined Score
    -2 / 12
    1 Price Structure & Trend Consolidating · - ▾
    2 Momentum Mixed ▾
    3 Relative Strength vs. SPY Mild Underperformance ▾
    4 Institutional Footprint & Volume Mild Accumulation ▾
    5 Volatility Compressed ▾
    6 Key Price Levels Range · Vol Falling ▾
    7 Earnings Reaction History Diminishing Reward ▾
    8 How the Verdict Is Derived Three Pillars ▾
    Price Intelligence is derived from price-volume pattern analysis only. All moving averages are simple (SMA). Relative strength benchmarked against SPY.

    Industry Resources

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    Core Cache Last Updated: 9/26/2026