Want to see CATY full AI Analyst Report?
Top Page
Cathay General Bancorp
(NASDAQ:CATY)
Select Model
Select Model
Rating:78Outperform
Price Target:
$72.00
▲(15.09% Upside)
Action:Reiterated
Date:07/27/26
The score is driven mainly by strong capitalization and cash generation, supported by a positive earnings-call outlook (NIM expansion, solid credit, and shareholder returns). Technicals are constructive with price above key moving averages, while valuation is reasonably supportive. The key constraint remains the sharp TTM revenue decline and funding-cost sensitivity highlighted on the call.
Positive Factors
Balance sheet / Capitalization
Cathay’s very low debt-to-equity and steadily growing equity provide durable loss-absorbing capacity and regulatory headroom. Strong capitalization supports lending through cycles, funds buybacks/redemptions, and reduces refinancing stress, improving long-term stability and strategic optionality.
Negative Factors
Revenue decline
A large, persistent TTM revenue decline is a material structural headwind: it reduces the earnings base, compresses operating leverage, and forces dependence on margin expansion or one-offs to sustain profits. Reversing this trend will take sustained loan/deposit growth or fee income gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet / Capitalization
Cathay’s very low debt-to-equity and steadily growing equity provide durable loss-absorbing capacity and regulatory headroom. Strong capitalization supports lending through cycles, funds buybacks/redemptions, and reduces refinancing stress, improving long-term stability and strategic optionality.
Read all positive factors
Cathay General Bancorp (CATY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.24B
Dividend Yield2.28%
Average Volume (3M)474.25K
Price to Earnings (P/E)12.3
Beta (1Y)0.89
Revenue Growth1.22%
EPS Growth23.49%
CountryUS
Employees1,268
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)5.15
Shares Outstanding67,035,480
10 Day Avg. Volume691,581
30 Day Avg. Volume474,251
Financial Highlights & Ratios
PEG Ratio0.70
Price to Book (P/B)1.12
Price to Sales (P/S)2.37
P/FCF Ratio9.01
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$62.25Price Target Upside-0.50% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)5.52
Revenue Forecast (FY)$891.14M
Cathay General Bancorp Business Overview & Revenue Model
Company Description
Cathay General Bancorp serves as the parent entity for Cathay Bank, a financial institution that delivers a broad spectrum of commercial banking solutions. These services are tailored for individual clients, professional practices, and small to me...
How the Company Makes Money
Cathay General Bancorp makes money primarily through its banking subsidiary by earning (1) net interest income and (2) noninterest income. Net interest income is generated from the spread between interest earned on interest-earning assets—mainly l...
Cathay General Bancorp Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 26, 2026
Earnings Call Sentiment Positive
The call highlighted multiple areas of strength: expanding net interest margin (eighth consecutive quarter), rising net interest income, quarter-over-quarter loan and deposit growth acceleration, strong credit metrics, improved tangible book value, active balance sheet optimization with reinvestments that should lift future yields, and continued capital return actions (buybacks and planned trust-preferred redemption). Offsetting items were mainly one-time or transitory in nature: repositioning losses on securities (taken to secure higher yields), a modest rise in reported noninterest expense due to tax-credit amortization, slower year-to-date deposit growth prompting a revised deposit outlook, and potential near-term NIM pressure from CD roll-offs and a possible September rate hike. Overall, the positive operating trends, capital flexibility, and anticipated earnings lift from reinvestments materially outweigh the transitory downsides.Positive Updates
Solid Net Income and EPS
Net income of $92.2 million, or $1.37 per diluted share, representing a 6% increase linked quarter.
Negative Updates
Loss on Sale of Securities and Mark-to-Book Impact
Recognized a $10.6 million loss on the June sale of available-for-sale securities (part of a broader $26 million of repositioning losses year-to-date), which partially offset realized income despite future yield benefits.
Read all updates
Q2-2026 Updates
Positive
Negative
Solid Net Income and EPS
Net income of $92.2 million, or $1.37 per diluted share, representing a 6% increase linked quarter.
Read all positive updates
Company Guidance
Management guided to full-year loan growth of 3.5%–4.5% and revised full-year deposit growth to 3%–4%, and reiterated a full-year NIM target of 3.4%–3.5% (incorporating an assumed 25‑bp rate hike in September), while maintaining an adjusted noninterest‑expense growth outlook of 3.5%–4.5% and an expected effective tax rate of 21%–22%; capital actions include increasing the share‑repurchase authorization from $150M to $200M (subject to regulatory approval) and plans to redeem about $54.1M of $119.1M outstanding trust preferred securities, and management noted balance‑sheet repositioning that should generate roughly $8.5M of incremental annual NII (aggregate earn‑back ~3.1 years, ~3 bps of NIM lift) alongside continued strong capitalization (regulatory ratios up ~20 bps from a reporting review) and a targeted adjusted efficiency ratio near 37%.Cathay General Bancorp Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
84
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.39B | 1.38B | 1.39B | 1.31B | 908.10M | 721.11M |
| Gross Profit | 795.13M | 762.46M | 692.22M | 784.06M | 775.97M | 668.37M |
| EBITDA | 480.69M | 431.08M | 334.37M | 421.69M | 492.34M | 397.96M |
| Net Income | 347.26M | 315.12M | 285.98M | 354.12M | 360.64M | 298.30M |
Balance Sheet | ||||||
| Total Assets | 24.65B | 24.23B | 23.05B | 23.08B | 21.95B | 20.89B |
| Cash, Cash Equivalents and Short-Term Investments | 3.01B | 1.80B | 1.71B | 2.43B | 2.64B | 3.58B |
| Total Debt | 154.25M | 208.92M | 227.73M | 709.72M | 659.25M | 192.97M |
| Total Liabilities | 21.61B | 21.30B | 20.21B | 20.34B | 19.47B | 18.44B |
| Stockholders Equity | 3.05B | 2.93B | 2.85B | 2.74B | 2.47B | 2.45B |
Cash Flow | ||||||
| Free Cash Flow | 294.53M | 363.66M | 325.52M | 381.34M | 464.00M | 330.59M |
| Operating Cash Flow | 304.00M | 368.57M | 329.15M | 384.74M | 467.39M | 334.32M |
| Investing Cash Flow | -417.56M | -857.32M | 184.03M | -1.48B | -1.85B | -859.92M |
| Financing Cash Flow | 72.06M | 873.64M | -302.47M | 758.74M | 94.74M | 1.55B |
Cathay General Bancorp Technical Analysis
Positive
62.56
Price Trends
61.06
Positive
57.08
Positive
52.94
Positive
Market Momentum
0.83
Negative
58.84
Neutral
70.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CATY, the sentiment is Positive. The current price of 62.56 is below the 20-day moving average (MA) of 62.79, above the 50-day MA of 61.06, and above the 200-day MA of 52.94, indicating a bullish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 58.84 is Neutral, neither overbought nor oversold. The STOCH value of 70.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CATY.
Cathay General Bancorp Risk Analysis
Cathay General Bancorp disclosed 45 risk factors in its most recent earnings report. Cathay General Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cathay General Bancorp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $4.42B | 12.10 | 19.03% | 2.64% | 2.45% | 26.38% | |
79 Outperform | $2.79B | 12.44 | 32.32% | ― | 2.66% | 13.98% | |
78 Outperform | $4.24B | 12.27 | 11.71% | 2.30% | 1.22% | 23.49% | |
75 Outperform | $4.04B | 15.13 | 7.66% | 2.89% | 34.13% | 25.12% | |
73 Outperform | $4.65B | 11.64 | 11.15% | 3.05% | 0.31% | 22.36% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $3.69B | 11.70 | 9.55% | 4.93% | -8.83% | 45.98% |
* Financial Sector Average
CATY
Cathay General Bancorp
63.71
19.55
44.27%
FBP
First Bancorp Puerto Rico
29.06
9.12
45.72%
FIBK
First Interstate Bancsystem
37.42
10.11
37.00%
FULT
Fulton Financial
24.40
7.25
42.28%
INDB
Independent Bank
83.98
22.21
35.95%
TBBK
Bancorp
70.75
7.97
12.70%
Cathay General Bancorp Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Cathay General Bancorp Reports Strong Second-Quarter Results
Positive
Jul 22, 2026
Cathay General Bancorp reported unaudited net income of $92.2 million, or $1.37 per diluted share, for the quarter ended June 30, 2026, up from $86.9 million, or $1.29 per diluted share, in the first quarter, with returns on average assets and equ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.