Cathay General Bancorp Stock Earnings Reports

Cathay General Bancorp reported solid Q1 2026 results: net income of $86.9 million and diluted EPS of $1.29. Net interest margin expanded 7 bps to 3.43%, aided by disciplined deposit cost management and a securities repositioning that sold lower-yielding mortgage-backed securities and reinvested at higher yields. The quarter included two offsetting notable items: a $17.3 million valuation gain on equity securities and a $15.7 million impairment on available-for-sale (AFS) debt securities related to the repositioning. Ex-credit metrics remained stable — nonperforming assets improved to 51 bps, net charge-offs fell to $2.1 million, and the allowance increased by $13 million to $209 million (coverage 1.03%; 1.30% excluding residential mortgages). Balance sheet highlights: period-end loans $20.2B (up 0.2% linked quarter), period-end deposits $20.7B (down 1% linked quarter, influenced by brokered deposit declines), strong liquidity with AFS portfolio duration under 2 years and ~90% government-backed. Capital management: quarterly cash dividend increased 11.8% to $0.38/share; company completed $150M repurchase program and Board approved a new $150M program (subject to regulatory approval). Outlook: full-year loan growth guidance 3.5–4.5%, deposit growth 4–5%, adjusted noninterest expense up 3.5–4.5%, NIM/NII guidance no longer assumes any 2026 Fed rate cuts but company still expects NIM in the 3.40%–3.50% range, and an effective tax rate of ~21%.