Cathay General Bancorp (NASDAQ:CATY) Posts Earnings Results, Beats Expectations By $0.02 EPS

Cathay General Bancorp (NASDAQ:CATY) announced its quarterly earnings results on Wednesday. The bank reported $1.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.35 by $0.02, FiscalAI reports. Cathay General Bancorp had a net margin of 23.79% and a return on equity of 11.37%. The firm had revenue of $221.20 million for the quarter, compared to the consensus estimate of $218.28 million. During the same quarter last year, the firm posted $1.10 EPS. The business’s quarterly revenue was up 13.1% compared to the same quarter last year.

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

• Cathay General Bancorp reported net income of $92.2 million, or $1.37 per diluted share, while net interest margin expanded to 3.48% for the eighth straight quarter of improvement.
• Loan growth accelerated in the quarter, with period-end loans up 2.2% linked quarter, and management said the pipeline remains healthy heading into the second half of the year.
• Credit quality remained strong, as net charge-offs declined and criticized and classified assets improved; the allowance for loan losses rose modestly mainly because of loan growth.
• The bank completed another securities repositioning, taking a $10.6 million loss but reinvesting at much higher yields, which management said should improve future earnings and support margin expansion.
• Management remains committed to capital returns, having repurchased shares in the quarter and increased the buyback authorization to $200 million, while also planning to redeem a portion of higher-cost trust preferred securities.

Cathay General Bancorp Stock Down 1.1%

CATY opened at $61.36 on Thursday. The firm’s 50 day simple moving average is $59.78 and its two-hundred day simple moving average is $54.57. The company has a market capitalization of $4.11 billion, a PE ratio of 12.65 and a beta of 0.86. Cathay General Bancorp has a 1-year low of $43.65 and a 1-year high of $63.91. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.04.

Cathay General Bancorp Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 9th. Shareholders of record on Thursday, May 28th were issued a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend was Thursday, May 28th. Cathay General Bancorp’s dividend payout ratio is currently 31.34%.

Cathay General Bancorp declared that its board has authorized a stock buyback program on Thursday, April 23rd that allows the company to repurchase $150,000.00 billion in outstanding shares. This repurchase authorization allows the bank to purchase up to 4,164,630.6% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s management believes its shares are undervalued.

Trending Headlines about Cathay General Bancorp

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

• Positive Sentiment: Cathay General Bancorp reported Q2 2026 earnings of $1.37 per share, topping Wall Street estimates and improving from $1.10 a year ago, while revenue of $221.2 million also exceeded expectations. Cathay General Bancorp Announces Second Quarter 2026 Results
• Positive Sentiment: Keefe, Bruyette & Woods lifted its price target on CATY to $67 from $64, reflecting improved valuation expectations after the earnings release. Benzinga report on price target increase
• Neutral Sentiment: The updated analyst rating remained “market perform,” suggesting the new target is more of a valuation adjustment than a strong bullish call. Benzinga report on price target increase
• Neutral Sentiment: Management’s earnings call and related coverage are likely reinforcing the market’s focus on Cathay’s improving earnings power, margins, and revenue trends rather than any major new strategic change. Cathay General Bancorp (CATY) Q2 2026 Earnings Call Transcript

Insiders Place Their Bets

In related news, SVP May K. Chan sold 558 shares of the stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $56.00, for a total value of $31,248.00. Following the completion of the sale, the senior vice president directly owned 2,693 shares of the company’s stock, valued at approximately $150,808. This represents a 17.16% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Vice Chairman Peter Wu sold 20,000 shares of the stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $57.33, for a total transaction of $1,146,600.00. Following the completion of the sale, the insider directly owned 275,252 shares of the company’s stock, valued at approximately $15,780,197.16. This trade represents a 6.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 4.53% of the company’s stock.

Institutional Trading of Cathay General Bancorp

Several institutional investors have recently made changes to their positions in the business. Danske Bank A S bought a new stake in Cathay General Bancorp in the 3rd quarter valued at $48,000. NewEdge Advisors LLC boosted its position in shares of Cathay General Bancorp by 319.7% during the 2nd quarter. NewEdge Advisors LLC now owns 1,704 shares of the bank’s stock valued at $78,000 after acquiring an additional 1,298 shares during the last quarter. Strs Ohio bought a new position in shares of Cathay General Bancorp during the 1st quarter valued at approximately $112,000. HighTower Advisors LLC purchased a new position in shares of Cathay General Bancorp in the fourth quarter valued at $206,000. Finally, Cibc World Markets Corp purchased a new position in shares of Cathay General Bancorp in the fourth quarter valued at $213,000. Hedge funds and other institutional investors own 75.01% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the stock. Weiss Ratings restated a “buy (b)” rating on shares of Cathay General Bancorp in a report on Monday, July 6th. Keefe, Bruyette & Woods boosted their target price on shares of Cathay General Bancorp from $64.00 to $67.00 and gave the company a “market perform” rating in a research note on Thursday. Zacks Research raised Cathay General Bancorp from a “hold” rating to a “strong-buy” rating in a report on Tuesday, June 23rd. Finally, Piper Sandler raised their price target on Cathay General Bancorp from $45.00 to $47.00 and gave the stock an “underweight” rating in a research note on Monday, April 27th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $54.00.

Cathay General Bancorp Company Profile

Cathay General Bancorp is a bank holding company headquartered in Los Angeles, California, trading on NASDAQ under the symbol CATY. Its principal subsidiary, Cathay Bank, provides a full suite of financial services to commercial, institutional and retail clients. As a community-focused institution, the company emphasizes relationship banking and tailored solutions for businesses and individuals.

Founded in 1962 by a group of Chinese American entrepreneurs, Cathay has expanded from a single branch operation in downtown Los Angeles into one of the largest Asian-American banks in the United States.