Cathay General Bancorp (CATY)
Market Price (11/12/2026): $65.53 | Market Cap: $4.3 BilSector: Financials | Industry: Regional Banks
Cathay General Bancorp (CATY)
Market Price (11/12/2026): $65.53Market Cap: $4.3 BilSector: FinancialsIndustry: Regional Banks
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 11%, Dividend Yield is 2.3%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 5.4%, FCF Yield is 11% Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -54% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 52%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 51% Low stock price volatilityVol 12M is 22% Megatrend and thematic driversMegatrends include Fintech & Digital Payments. Themes include Online Banking & Lending, and Digital Payments. | Trading close to highsDist 52W High is -0.7%, Dist 3Y High is -0.7% | Key risksCATY key risks include [1] significant loan portfolio concentration in commercial real estate, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 11%, Dividend Yield is 2.3%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 5.4%, FCF Yield is 11% |
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -54% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 52%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 51% |
| Low stock price volatilityVol 12M is 22% |
| Megatrend and thematic driversMegatrends include Fintech & Digital Payments. Themes include Online Banking & Lending, and Digital Payments. |
| Trading close to highsDist 52W High is -0.7%, Dist 3Y High is -0.7% |
| Key risksCATY key risks include [1] significant loan portfolio concentration in commercial real estate, Show more. |
Qualitative Assessment
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Oct 22: up 6.0% the day after its Oct 21 earnings report (S&P 500 down 1.2%)
The stock rose after Cathay General reported third quarter 2026 diluted earnings of $1.43 per share, which missed estimates but represented a 27% increase from a year earlier. Revenue grew 21% and net income 23% year-over-year for the quarter.
Up 41.6% from its Mar 18 low to Nov 4 (S&P 500 up 16.5%)
The stock's steady climb was largely fueled by its quarterly financial results, significantly outperforming the broader market. Notable increases followed the Q1 2026 earnings and revenue beat on April 23, 2026, and a substantial jump on October 22, 2026, after the Q3 2026 report.
Oct 22: up 6.0% the day after its Oct 21 earnings report (S&P 500 down 1.2%)
The stock rose after Cathay General reported third quarter 2026 diluted earnings of $1.43 per share, which missed estimates but represented a 27% increase from a year earlier. Revenue grew 21% and net income 23% year-over-year for the quarter.
Up 41.6% from its Mar 18 low to Nov 4 (S&P 500 up 16.5%)
The stock's steady climb was largely fueled by its quarterly financial results, significantly outperforming the broader market. Notable increases followed the Q1 2026 earnings and revenue beat on April 23, 2026, and a substantial jump on October 22, 2026, after the Q3 2026 report.
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Stock Movement Drivers
Fundamental Drivers
The 4.3% change in CATY stock from 7/31/2026 to 11/11/2026 was primarily driven by a 8.3% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 7312026 | 11112026 | Change |
|---|---|---|---|
| Stock Price ($) | 62.80 | 65.53 | 4.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 845 | 915 | 8.3% |
| Net Income Margin (%) | 39.4% | 39.9% | 1.3% |
| P/E Multiple | 12.7 | 11.9 | -5.7% |
| Shares Outstanding (Mil) | 67 | 66 | 0.8% |
| Cumulative Contribution | 4.3% |
Market Drivers
7/31/2026 to 11/11/2026| Return | Correlation | |
|---|---|---|
| CATY | 4.3% | |
| Market (SPY) | 1.7% | 26.9% |
| Sector (XLF) | 3.0% | 62.2% |
Fundamental Drivers
The 18.5% change in CATY stock from 4/30/2026 to 11/11/2026 was primarily driven by a 11.8% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 4302026 | 11112026 | Change |
|---|---|---|---|
| Stock Price ($) | 55.32 | 65.53 | 18.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 818 | 915 | 11.8% |
| Net Income Margin (%) | 38.5% | 39.9% | 3.5% |
| P/E Multiple | 11.9 | 11.9 | 0.6% |
| Shares Outstanding (Mil) | 68 | 66 | 1.7% |
| Cumulative Contribution | 18.5% |
Market Drivers
4/30/2026 to 11/11/2026| Return | Correlation | |
|---|---|---|
| CATY | 18.5% | |
| Market (SPY) | 6.0% | 21.2% |
| Sector (XLF) | 12.9% | 58.7% |
Fundamental Drivers
The 48.1% change in CATY stock from 10/31/2025 to 11/11/2026 was primarily driven by a 20.3% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 10312025 | 11112026 | Change |
|---|---|---|---|
| Stock Price ($) | 44.24 | 65.53 | 48.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 760 | 915 | 20.3% |
| Net Income Margin (%) | 38.7% | 39.9% | 2.9% |
| P/E Multiple | 10.5 | 11.9 | 13.7% |
| Shares Outstanding (Mil) | 70 | 66 | 5.2% |
| Cumulative Contribution | 48.1% |
Market Drivers
10/31/2025 to 11/11/2026| Return | Correlation | |
|---|---|---|
| CATY | 48.1% | |
| Market (SPY) | 12.3% | 29.2% |
| Sector (XLF) | 13.3% | 57.8% |
Fundamental Drivers
The 111.6% change in CATY stock from 10/31/2023 to 11/11/2026 was primarily driven by a 105.2% change in the company's P/E Multiple.| (LTM values as of) | 10312023 | 11112026 | Change |
|---|---|---|---|
| Stock Price ($) | 30.96 | 65.53 | 111.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 833 | 915 | 9.8% |
| Net Income Margin (%) | 46.3% | 39.9% | -13.9% |
| P/E Multiple | 5.8 | 11.9 | 105.2% |
| Shares Outstanding (Mil) | 73 | 66 | 9.1% |
| Cumulative Contribution | 111.6% |
Market Drivers
10/31/2023 to 11/11/2026| Return | Correlation | |
|---|---|---|
| CATY | 111.6% | |
| Market (SPY) | 87.9% | 46.2% |
| Sector (XLF) | 89.1% | 66.2% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| CATY Return | 38% | -2% | 13% | 10% | 5% | 38% | 144% |
| Peers Return | 54% | 3% | -4% | 21% | 8% | 22% | 142% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 10% | 100% |
Monthly Win Rates [3] | |||||||
| CATY Win Rate | 75% | 58% | 42% | 50% | 42% | 73% | |
| Peers Win Rate | 67% | 47% | 43% | 53% | 55% | 60% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 36% | |
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 11/11/2026 (YTD)
How Low Can It Go
| Event | CATY | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -19.8% | -18.8% |
| % Gain to Breakeven | 24.7% | 23.1% |
| Time to Breakeven | 81 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -11.5% | -9.5% |
| % Gain to Breakeven | 13.0% | 10.5% |
| Time to Breakeven | 9 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -36.2% | -6.7% |
| % Gain to Breakeven | 56.8% | 7.1% |
| Time to Breakeven | 217 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -12.3% | -24.5% |
| % Gain to Breakeven | 14.1% | 32.4% |
| Time to Breakeven | 55 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -48.4% | -33.7% |
| % Gain to Breakeven | 93.7% | 50.9% |
| Time to Breakeven | 289 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -23.6% | -19.2% |
| % Gain to Breakeven | 30.9% | 23.8% |
| Time to Breakeven | 791 days | 105 days |
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.
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| Event | CATY | S&P 500 |
|---|---|---|
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -36.2% | -6.7% |
| % Gain to Breakeven | 56.8% | 7.1% |
| Time to Breakeven | 217 days | 31 days |
| 2020 COVID-19 Crash | ||
| % Loss | -48.4% | -33.7% |
| % Gain to Breakeven | 93.7% | 50.9% |
| Time to Breakeven | 289 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -23.6% | -19.2% |
| % Gain to Breakeven | 30.9% | 23.8% |
| Time to Breakeven | 791 days | 105 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -33.7% | -17.9% |
| % Gain to Breakeven | 50.8% | 21.8% |
| Time to Breakeven | 148 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -30.4% | -15.4% |
| % Gain to Breakeven | 43.7% | 18.2% |
| Time to Breakeven | 121 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -73.0% | -53.4% |
| % Gain to Breakeven | 270.5% | 114.4% |
| Time to Breakeven | 1728 days | 1085 days |
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.
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- 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.
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- 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.
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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.
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Here are the key risks to Cathay General Bancorp (symbol: CATY):
- 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.
- 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.
- 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.
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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.
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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%.
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Cathay General Bancorp (CATY) is expected to drive future revenue growth over the next two to three years through several key strategies:
- 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.
- 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.
- 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.
- 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.
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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
| Ticker | Name | Rev Growth 3Y Avg | P/E | 1Y | 3Y | 5Y | 5Y Gap |
|---|---|---|---|---|---|---|---|
| CATY | Cathay General Bancorp | 4.3% | 11.9x | 43.0% | 105.3% | 71.2% | — |
| FBP | First BanCorp | 3.3% | 10.8x | 33.3% | 107.3% | 119.5% | +48pp |
| BPOP | Popular | 7.0% | 10.1x | 41.0% | 154.8% | 119.2% | +48pp |
| SRCE | 1st Source | 7.5% | 11.9x | 45.8% | 100.6% | 95.6% | +24pp |
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Reinsurance | 6 | 33.6% | 69.0% | 118.3% | SPNT 191% · RGA 170% · RNR 135% |
| Diversified Banks | 12 | 31.0% | 143.6% | 92.5% | CM 148% · JPM 132% · RY 130% |
| Investment Banking & Brokerage | 13 | -3.3% | 95.3% | 89.6% | IBKR 363% · SNEX 173% · GS 160% |
| Life & Health Insurance | 20 | 11.8% | 56.7% | 84.2% | JXN 438% · UNM 259% · FG 230% |
| Multi-Sector Holdings | 3 | 10.7% | 60.4% | 72.2% | BRK-B 107% · VOYA 72% · JEF 36% |
| Property & Casualty Insurance | 42 | 14.3% | 73.2% | 66.0% | TRV 178% · ACGL 177% · PGR 172% |
| Multi-line Insurance | 9 | 9.8% | 75.3% | 61.9% | AIZ 119% · GNW 101% · L 97% |
| Regional Banks ← | 262 | 29.9% | 93.8% | 48.9% | CBC 278% · FCNCA 179% · NIC 140% |
| Insurance Brokers | 15 | 3.8% | 9.1% | 27.2% | LIFE 336% · ARX 89% · WTW 55% |
| Financial Exchanges & Data | 15 | 17.7% | 33.3% | 17.9% | CBOE 205% · VIRT 156% · CME 75% |
| Asset Management & Custody Banks | 84 | -6.1% | 20.5% | 11.1% | VCTR 268% · WT 242% · AAMI 221% |
| Diversified Financial Services | 4 | -6.9% | 19.3% | 9.0% | FRHC 137% · EQH 83% |
| Commercial & Residential Mortgage Finance | 14 | -44.9% | 15.6% | 0.9% | FNMA 343% · FMCC 296% · ACT 164% |
| Consumer Finance | 30 | -0.5% | 79.8% | 0.1% | ENVA 314% · FCFS 127% · AXP 90% |
| Specialized Finance | 3 | 16.8% | 27.8% | -19.0% | HASI -19% · CACC -24% |
| Transaction & Payment Processing Services | 17 | 19.1% | 9.8% | -25.8% | V 110% · CPAY 93% · MA 92% |
| Mortgage REITs | 34 | -20.2% | -11.1% | -41.0% | RITM 34% · DX 14% · AGNC 7% |
| Diversified Capital Markets | 19 | -40.7% | -3.9% | -60.4% | LPLA 87% · TW 40% · RIOT -54% |
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 49.04 |
| Mkt Cap | 2.8 |
| Rev LTM | 617 |
| Op Inc LTM | - |
| FCF LTM | 465 |
| FCF 3Y Avg | 365 |
| CFO LTM | 473 |
| CFO 3Y Avg | 370 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 14.7% |
| Rev Chg 3Y Avg | 4.3% |
| Rev Chg Q | 9.4% |
| QoQ Delta Rev Chg LTM | 2.3% |
| Op Inc Chg LTM | - |
| Op Inc Chg 3Y Avg | - |
| Op Mgn LTM | - |
| Op Mgn 3Y Avg | - |
| QoQ Delta Op Mgn LTM | - |
| CFO/Rev LTM | 63.0% |
| CFO/Rev 3Y Avg | 48.0% |
| FCF/Rev LTM | 61.8% |
| FCF/Rev 3Y Avg | 47.3% |
Price Behavior
| Market Price | $65.53 | |
| Market Cap ($ Bil) | 4.4 | |
| First Trading Date | 12/17/1990 | |
| Distance from 52W High | -0.7% | |
| 50 Days | 200 Days | |
| DMA Price | $62.06 | $57.59 |
| DMA Trend | indeterminate | up |
| Distance from DMA | 5.6% | 13.8% |
| 3M | 1YR | |
| Volatility | 20.3% | 22.4% |
| Downside Capture | 17.49 | 32.28 |
| Upside Capture | 30.76 | 69.87 |
| Correlation (S&P 500) | 25.1% | 29.4% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | -0.23 | -0.00 | 0.10 | 0.17 | 0.45 | 0.87 |
| Up Beta | -1.96 | -1.26 | 0.01 | -0.16 | 0.46 | 0.97 |
| Down Beta | -0.36 | -0.49 | -0.42 | -0.16 | 0.16 | 0.78 |
| Up Capture | 64% | 52% | 30% | 48% | 65% | 74% |
| Bmk +ve Days | 12 | 18 | 28 | 62 | 130 | 427 |
| Stock +ve Days | 10 | 20 | 30 | 69 | 138 | 384 |
| Down Capture | -64% | 8% | 20% | 22% | 41% | 94% |
| Bmk -ve Days | 10 | 25 | 36 | 64 | 121 | 325 |
| Stock -ve Days | 12 | 23 | 34 | 57 | 113 | 362 |
[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 | |
|---|---|---|---|---|
| CATY | 42.8% | 22.4% | 1.50 | - |
| Sector ETF (XLF) | 12.1% | 15.3% | 0.53 | 57.8% |
| Equity (SPY) | 12.5% | 13.7% | 0.60 | 29.6% |
| Gold (GLD) | -3.5% | 28.8% | -0.13 | -2.9% |
| Commodities (DBC) | 33.0% | 21.3% | 1.24 | -25.1% |
| Real Estate (VNQ) | 11.7% | 14.2% | 0.53 | 42.1% |
| Bitcoin (BTCUSD) | -30.9% | 43.5% | -0.73 | 6.8% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CATY | |
|---|---|---|---|---|
| CATY | 11.7% | 29.8% | 0.39 | - |
| Sector ETF (XLF) | 9.5% | 18.4% | 0.37 | 69.5% |
| Equity (SPY) | 11.8% | 17.3% | 0.51 | 53.5% |
| Gold (GLD) | 17.1% | 19.2% | 0.72 | -1.9% |
| Commodities (DBC) | 7.9% | 19.6% | 0.29 | 8.3% |
| Real Estate (VNQ) | 1.3% | 18.9% | -0.04 | 51.9% |
| Bitcoin (BTCUSD) | 3.1% | 51.5% | 0.24 | 21.7% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CATY | |
|---|---|---|---|---|
| CATY | 11.7% | 33.4% | 0.41 | - |
| Sector ETF (XLF) | 13.6% | 22.1% | 0.55 | 79.3% |
| Equity (SPY) | 15.5% | 18.0% | 0.73 | 60.7% |
| Gold (GLD) | 11.5% | 16.6% | 0.57 | -5.4% |
| Commodities (DBC) | 7.4% | 18.2% | 0.33 | 20.6% |
| Real Estate (VNQ) | 6.1% | 20.7% | 0.25 | 55.4% |
| Bitcoin (BTCUSD) | 58.6% | 66.3% | 0.99 | 17.2% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 10/30/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 10/21/2026 | 6.0% | 6.6% | |
| 7/22/2026 | 1.9% | 3.1% | 1.7% |
| 4/22/2026 | 2.7% | 1.9% | 6.5% |
| 1/22/2026 | -3.0% | -3.1% | -2.0% |
| 10/21/2025 | -2.0% | -1.3% | -2.1% |
| 7/22/2025 | 1.3% | -2.6% | -0.3% |
| 4/21/2025 | 7.1% | 8.8% | 15.5% |
| 1/22/2025 | -3.9% | -3.3% | -6.0% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 12 | 16 | 14 |
| # Negative | 13 | 9 | 10 |
| Median Positive | 2.3% | 2.7% | 7.8% |
| Median Negative | -2.6% | -3.3% | -4.1% |
| Max Positive | 7.1% | 9.3% | 29.4% |
| Max Negative | -4.7% | -7.0% | -10.2% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 10/21/2026 | 6.0% | 6.6% | |
| 7/22/2026 | 1.9% | 3.1% | 1.7% |
| 4/22/2026 | 2.7% | 1.9% | 6.5% |
| 1/22/2026 | -3.0% | -3.1% | -2.0% |
| 10/21/2025 | -2.0% | -1.3% | -2.1% |
| 7/22/2025 | 1.3% | -2.6% | -0.3% |
| 4/21/2025 | 7.1% | 8.8% | 15.5% |
| 1/22/2025 | -3.9% | -3.3% | -6.0% |
| 10/21/2024 | 1.8% | 4.2% | 14.3% |
| 7/22/2024 | 0.7% | 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% |
| 7/24/2023 | 3.2% | 4.9% | -6.4% |
| 4/20/2023 | -0.5% | -7.0% | -9.3% |
| 1/25/2023 | -2.1% | 3.1% | 3.0% |
| 10/24/2022 | 5.0% | 8.1% | 8.6% |
| 7/25/2022 | -2.6% | 0.9% | 5.1% |
| 4/25/2022 | -4.3% | -5.4% | -9.6% |
| 1/27/2022 | 4.6% | 9.3% | 11.1% |
| 10/25/2021 | -3.0% | -0.8% | 5.2% |
| 7/26/2021 | -0.2% | 1.2% | 7.0% |
| 4/26/2021 | 1.8% | 2.2% | -1.0% |
| 1/27/2021 | 1.3% | 1.0% | 8.8% |
| 10/26/2020 | -3.1% | 1.1% | 29.4% |
| SUMMARY STATS | |||
| # Positive | 12 | 16 | 14 |
| # Negative | 13 | 9 | 10 |
| Median Positive | 2.3% | 2.7% | 7.8% |
| Median Negative | -2.6% | -3.3% | -4.1% |
| Max Positive | 7.1% | 9.3% | 29.4% |
| Max Negative | -4.7% | -7.0% | -10.2% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2026 | 11/06/2026 | 10-Q |
| 06/30/2026 | 08/07/2026 | 10-Q |
| 03/31/2026 | 05/08/2026 | 10-Q |
| 12/31/2025 | 03/02/2026 | 10-K |
| 09/30/2025 | 11/07/2025 | 10-Q |
| 06/30/2025 | 08/08/2025 | 10-Q |
| 03/31/2025 | 05/09/2025 | 10-Q |
| 12/31/2024 | 02/28/2025 | 10-K |
| 09/30/2024 | 11/08/2024 | 10-Q |
| 06/30/2024 | 08/08/2024 | 10-Q |
| 03/31/2024 | 05/08/2024 | 10-Q |
| 12/31/2023 | 02/29/2024 | 10-K |
| 09/30/2023 | 11/08/2023 | 10-Q |
| 06/30/2023 | 08/08/2023 | 10-Q |
| 03/31/2023 | 05/09/2023 | 10-Q |
| 12/31/2022 | 02/28/2023 | 10-K |
| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2026 | 11/06/2026 | 10-Q |
| 06/30/2026 | 08/07/2026 | 10-Q |
| 03/31/2026 | 05/08/2026 | 10-Q |
| 12/31/2025 | 03/02/2026 | 10-K |
| 09/30/2025 | 11/07/2025 | 10-Q |
| 06/30/2025 | 08/08/2025 | 10-Q |
| 03/31/2025 | 05/09/2025 | 10-Q |
| 12/31/2024 | 02/28/2025 | 10-K |
| 09/30/2024 | 11/08/2024 | 10-Q |
| 06/30/2024 | 08/08/2024 | 10-Q |
| 03/31/2024 | 05/08/2024 | 10-Q |
| 12/31/2023 | 02/29/2024 | 10-K |
| 09/30/2023 | 11/08/2023 | 10-Q |
| 06/30/2023 | 08/08/2023 | 10-Q |
| 03/31/2023 | 05/09/2023 | 10-Q |
| 12/31/2022 | 02/28/2023 | 10-K |
| 09/30/2022 | 11/08/2022 | 10-Q |
| 06/30/2022 | 08/09/2022 | 10-Q |
| 03/31/2022 | 05/09/2022 | 10-Q |
| 12/31/2021 | 03/01/2022 | 10-K |
| 09/30/2021 | 11/08/2021 | 10-Q |
| 06/30/2021 | 08/09/2021 | 10-Q |
| 03/31/2021 | 05/07/2021 | 10-Q |
| 12/31/2020 | 03/01/2021 | 10-K |
| 09/30/2020 | 11/09/2020 | 10-Q |
| 06/30/2020 | 08/10/2020 | 10-Q |
| 03/31/2020 | 05/08/2020 | 10-Q |
| 12/31/2019 | 03/02/2020 | 10-K |
Insider Activity
Updated 10/28/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Sun, Albert | EVP, Chief Credit Officer | Direct | Sell | 10282026 | 64.95 | 960 | Form | ||
| 2 | Sun, Richard | Ivy Sun Separate Trust | Sell | 9032026 | 62.31 | 1,000 | 62,315 | 137,093 | Form | |
| 3 | Lo, Thomas M | EVP, Chief Admin Officer | Direct | Sell | 8272026 | 62.47 | 1,600 | 99,952 | 147,554 | Form |
| 4 | Sun, Richard | Ivy Sun Separate Trust | Sell | 8272026 | 62.08 | 1,000 | 62,083 | 198,667 | Form | |
| 5 | Sun, Richard | by RIS Family Limited Partnership | Sell | 8122026 | 63.09 | 3,000 | 189,270 | 176,652 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Sun, Albert | EVP, Chief Credit Officer | Direct | Sell | 10282026 | 64.95 | 960 | Form | ||
| 2 | Sun, Richard | Ivy Sun Separate Trust | Sell | 9032026 | 62.31 | 1,000 | 62,315 | 137,093 | Form | |
| 3 | Lo, Thomas M | EVP, Chief Admin Officer | Direct | Sell | 8272026 | 62.47 | 1,600 | 99,952 | 147,554 | Form |
| 4 | Sun, Richard | Ivy Sun Separate Trust | Sell | 8272026 | 62.08 | 1,000 | 62,083 | 198,667 | Form | |
| 5 | Sun, Richard | by RIS Family Limited Partnership | Sell | 8122026 | 63.09 | 3,000 | 189,270 | 176,652 | Form | |
| 6 | Sun, Richard | JKLM Limited Partnership | Sell | 7312026 | 62.43 | 5,000 | 312,126 | 144,514 | Form | |
| 7 | Sun, Richard | Sun Trust | Sell | 7312026 | 63.31 | 5,000 | 316,559 | 401,397 | Form | |
| 8 | Sun, Richard | JKLM Limited Partnership | Sell | 7312026 | 63.33 | 10,000 | 633,343 | 463,290 | Form | |
| 9 | Sun, Richard | Sun Trust | Sell | 7312026 | 63.29 | 10,000 | 632,899 | 717,707 | Form | |
| 10 | Tang, Anthony M | Vice Chairman | Direct | Sell | 6102026 | 59.92 | 5,000 | 299,600 | 8,860,730 | Form |
| 11 | Tang, Anthony M | Vice Chairman | Direct | Sell | 6082026 | 58.90 | 10,000 | 589,002 | 9,004,427 | Form |
| 12 | Tang, Anthony M | Vice Chairman | Direct | Sell | 6082026 | 58.37 | 5,000 | 291,844 | 9,506,893 | Form |
| 13 | Tang, Anthony M | Vice Chairman | Direct | Sell | 6082026 | 58.16 | 10,000 | 581,633 | 9,764,222 | Form |
| 14 | Wu, Peter | Vice Chairman | PACJU, LLC | Sell | 5072026 | 57.33 | 20,000 | 1,146,506 | 15,778,903 | Form |
| 15 | Chan, May K | SVP, General Counsel | Direct | Sell | 4292026 | 56.00 | 558 | 31,258 | 150,808 | Form |
| 16 | Liu, Chang | President & CEO | Direct | Sell | 4072026 | 50.35 | 4,836 | 243,506 | 6,436,032 | Form |
| 17 | Fernandez, Felix S | Felix & Katherine Fernandez Trust | Sell | 2102026 | 50.54 | 8,972 | 453,445 | 756,078 | Form | |
| 18 | Lo, Thomas M | EVP, Chief Admin Officer | Direct | Sell | 2022026 | 50.23 | 1,000 | 50,232 | 100,463 | Form |
| 19 | Tang, Anthony M | Vice Chairman | Direct | Sell | 12042025 | 49.88 | 5,000 | 249,420 | 8,793,701 | Form |
| 20 | Tang, Anthony M | Vice Chairman | Direct | Sell | 12042025 | 49.00 | 5,000 | 245,000 | 8,882,867 | Form |
| 21 | Cheng, Dunson K | Executive Chairman | Direct | Sell | 11262025 | 47.81 | 7,590 | 362,843 | 6,614,355 | Form |
| 22 | Cheng, Dunson K | Executive Chairman | Direct | Sell | 11212025 | 47.85 | 10,000 | 478,524 | 6,984,058 | Form |
| 23 | Cheng, Dunson K | Executive Chairman | Direct | Sell | 11212025 | 46.24 | 14,000 | 647,415 | 7,211,736 | Form |
| 24 | Cheng, Dunson K | Executive Chairman | Direct | Sell | 11212025 | 45.75 | 1,000 | 45,750 | 7,775,229 | Form |
| 25 | Liu, Chang | President & CEO | Direct | Sell | 10302025 | 46.24 | 5,165 | 238,829 | 5,016,012 | Form |
| 26 | Lo, Thomas M | EVP, Chief Admin Officer | Direct | Sell | 10292025 | 46.83 | 1,000 | 46,828 | 140,485 | Form |
CATY Trade Sentinel
Constructive
CONVICTION RATIONALE
Conviction is constructive based on accelerating loan and deposit growth, which prompted raised full-year guidance. Management has an excellent record of execution. This is balanced by a quantified, near-term risk to net interest margin from repricing deposits, which makes the outlook positive but contested.
STOCK ARCHETYPE
Spread-Based & Fee-BasedNet Interest Income = (Volume of Interest-Earning Assets x Average Yield) - (Volume of Interest-Bearing Liabilities x Average Cost) Net Interest Margin (NIM) expansion, driven by the ability to reprice loans at higher rates faster than the increase in deposit and funding costs.
INVESTMENT THESIS
Evidence points to a niche bank firing on all cylinders, converting its community-focused moat into accelerating loan and deposit growth.
- Full-year 2026 loan growth guidance was raised to 5%-6%.
- Full-year 2026 deposit growth guidance was raised to 4%-5%.
- Latest-quarter revenue grew 20.9% year-over-year, accelerating from 13.1%.
- Total shareholder yield (buybacks plus dividends) is 11.7%.
- Net interest margin expanded for the ninth straight quarter to 3.52%.
PRIMARY RISK
The multi-quarter tailwind of expanding net interest margin is at risk. Management has flagged that $3.4 billion in certificates of deposit are maturing and will likely reprice at significantly higher rates, pressuring profitability.
- $3.4 billion of CDs are rolling off at a rate of 3.46%.
- Recent promotional CD rates were higher, at 3.65% and 3.85%.
- Q3 net charge-offs increased to $25.3 million.
- Competition for deposits is expected to continue pressuring costs.
| KPI | Status | Rationale |
|---|---|---|
| Loan Growth | 2.8% linked-quarter growth for Q3 2026 - Accelerating | Loan growth has shown significant sequential acceleration throughout 2026, starting the year nearly flat and strengthening each quarter. The upward revision to the full-year growth forecast underscores management's confidence in this momentum, which they attribute particularly to strength in Commercial & Industrial (C&I) lending. |
| Deposit Growth | 3.7% linked-quarter growth for Q3 2026 - Accelerating | Deposit growth has sharply accelerated, turning a decline in the first quarter into strong growth by the third quarter. Management highlighted that this growth was led by high-quality, lower-cost sources, including non-interest-bearing demand and money market deposits, which supports margin health. |
| Net Interest Margin (NIM) | 3.52% (Q3 2026) | Measures the profitability of the core banking business by showing the difference between interest income generated and interest paid out, relative to interest-earning assets. |
| Efficiency Ratio | 40.6% (Q3 2026) | Represents non-interest expense as a percentage of revenue. A lower ratio indicates better operational efficiency. |
Growth Momentum vs. Funding Costs
BULL VIEW
Accelerating loan and deposit growth, driven by a strong C&I pipeline, will generate enough net interest income to offset the anticipated rise in deposit costs, protecting overall profitability.
CORE TENSION
Can raised loan growth guidance of 5-6% offset the $3.4B of CDs rolling from a 3.46% rate?
PREVAILING SENTIMENT
The latest evidence favors the bulls, as management reiterated full-year NIM guidance of 3.40%-3.50% while acknowledging the CD headwind, implying they have a plan to manage it.
BEAR VIEW
The repricing of $3.4 billion in CDs at higher rates is a mathematical cliff that will overwhelm asset yield improvements, causing net interest margin to contract in the coming quarters.
| Timeline | Event & Metric To Watch |
|---|---|
1/19/2027 | Peer CVBF Earnings Report Watch: Peer CVB Financial (CVBF) is scheduled to report earnings, providing a read-across on regional banking trends. |
1/20/2027 | Deposit Cost Pressure on Margin Watch: A decline in reported Net Interest Margin (NIM) or a failure to meet the 3.5%-4.5% full-year guidance range. |
1/20/2027 | Credit Quality Deterioration Watch: An increase in net charge-offs, non-performing assets, or criticized loans beyond the previously identified credits. |
1/20/2027 | Loan Growth Shortfall Watch: Reported full-year 2026 loan growth falling below the revised 5%-6% guidance range. |
1/20/2027 | Company Q4 Earnings Report Watch: Cathay General Bancorp is scheduled to report Q4 and full-year 2026 earnings, providing an update on guidance. |
1/25/2027 | Additional Peer Earnings Watch: Peers Hope Bancorp (HOPE) and Hanmi Financial (HAFC) are scheduled to report earnings. |
| Date | Event | Stock Impact |
|---|---|---|
2026-10-21 | Full-Year Guidance Raised Details: Following Q3 results, management raised its full-year 2026 outlook for loan growth to 5%-6% (from 3.5%-4.5%) and deposit growth to 4%-5% (from 3%-4%). | +5.9% $60.67 -> $64.24 |
2026-10-21 | Strong Q3 Earnings Reaction Details: Despite a slight EPS miss, the stock had a strong two-day reaction of 6.0% around the Q3 earnings call, significantly outperforming the S&P 500's -1.0% move. | +5.9% $60.67 -> $64.24 |
2026-10-21 | Q3 Balance Sheet Optimization Details: Management detailed several actions including another securities repositioning ($15.1 million loss), a redemption of $54.1 million in trust preferred securities, and an $8 million contribution to its foundation. | +5.9% $60.67 -> $64.24 |
2026-10-21 | Q3 Earnings Miss Estimates Details: | +5.9% $60.67 -> $64.24 |
2026-07-22 | Muted Q2 Earnings Reaction Details: The stock had a two-day reaction of 1.0% around the Q2 earnings call, underperforming its more recent post-earnings moves. | +0.8% $61.68 -> $62.15 |
2026-07-22 | Q2 Capital Actions Announced Details: Management announced a securities repositioning resulting in a $10.6 million loss and an increase in its share repurchase authorization from $150 million to $200 million. | +0.8% $61.68 -> $62.15 |
2026-07-22 | Q2 Earnings Beat Estimates Details: The company reported Q2 2026 earnings of $1.37 per share, beating the consensus estimate of $1.33 per share. This represents an increase from the same period a year ago. | +0.8% $61.68 -> $62.15 |
Position Sizing
5% - 7%
NORMAL POSITION
Sizing is volatility-based: CATY trades at roughly 20% annualized realized (three-month) volatility versus about 14% for the S&P 500 (1.5x the market). A 5% - 7% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
EWBC - East West Bancorp
Scale & Efficiency PlayEWBC is 3.4 times larger by revenue and operates with a superior efficiency ratio and a higher free-cash-flow margin of 66.9%, offering exposure to the same theme with a better cost structure.
HOPE - Hope Bancorp
Smaller Niche CompetitorHOPE offers a different management team and risk profile while targeting the same core demographic. It recently completed an acquisition to bolster its commercial banking unit.
A niche-dominant regional bank translating its community-focused moat into accelerating growth and strong shareholder returns.
Cathay General Bancorp is a commercial bank that leverages its deep roots in Chinese-American communities to drive profitable growth. The company is currently in a period of accelerating performance, marked by strong loan and deposit growth, expanding net interest margins, and robust capital returns through buybacks and dividends. Management has demonstrated disciplined execution, raising its growth outlook while actively managing its balance sheet for improved profitability.
Continued net interest margin expansion, sustained loan and deposit growth above its raised guidance, and stable or improving credit quality metrics.
An unexpected compression in net interest margin, a slowdown in loan or deposit growth, or a significant increase in non-performing assets or net charge-offs, particularly related to its real estate portfolio.
One-time gains or losses from securities repositioning or other notable items that management identifies as non-recurring.
Repricing Catalyst
The company's accelerating revenue growth, consistent margin expansion, and high total shareholder yield of 11.7% could attract further investor interest.
Industry Resources
| Financials Resources |
| Federal Reserve Economic Data |
| Federal Reserve |
| FDIC Data |
| American Banker |
| The Banker |
| Banking Technology |
| Regional Banks Resources |
| Bank Director |
| Independent Banker |
| S&P Global Market Intelligence |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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