Cathay General Bancorp (CATY)
NASDAQ:CATY
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Cathay General Bancorp
(NASDAQ:CATY)
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Rating:74Outperform
Price Target:
$56.00
▲(12.90% Upside)
Action:ReiteratedDate:03/02/26
The score is driven primarily by strong financial quality (healthy margins, solid ROE, and very low leverage) and supportive valuation (P/E ~10.95 with a ~2.82% yield). Offsetting factors are weaker near-term technicals (below 20/50-day averages with subdued RSI) and earnings-call risk items around credit monitoring and deposit/loan pricing competition, despite constructive 2026 guidance and ongoing buybacks.
Positive Factors
Conservative balance sheet / low leverage
Very low leverage and steady equity growth give the bank durable capital flexibility. This reduces insolvency and refinancing risk, supports loan origination and buybacks, and provides a buffer through economic cycles, sustaining franchise stability over the next several quarters.
Negative Factors
Rising special‑mention loans
An increase in special‑mention relationships signals emerging credit stress that can pressure provisioning and capital if remediations don't progress. These watch items may require higher reserves or write‑offs over 6–12 months, reducing earnings durability and lending capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Very low leverage and steady equity growth give the bank durable capital flexibility. This reduces insolvency and refinancing risk, supports loan origination and buybacks, and provides a buffer through economic cycles, sustaining franchise stability over the next several quarters.
Read all positive factors
Cathay General Bancorp (CATY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.32B
Dividend Yield2.72%
Average Volume (3M)474.25K
Price to Earnings (P/E)9.0
Beta (1Y)0.85
Revenue Growth-1.59%
EPS Growth9.34%
CountryUS
Employees1,266
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.33
Shares Outstanding66,957,660
10 Day Avg. Volume691,581
30 Day Avg. Volume474,251
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)1.12
Price to Sales (P/S)2.37
P/FCF Ratio9.01
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue2.48
Enterprise Value/Gross Profit4.51
Enterprise Value/Ebitda7.97
Forecast
1Y Price Target
$50.00Price Target Upside0.81% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)5.26
Revenue Forecast (FY)$879.55M
Cathay General Bancorp Business Overview & Revenue Model
Company Description
Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. The company offers variou...
How the Company Makes Money
Cathay General Bancorp generates revenue primarily through interest income from loans and investments, as well as non-interest income from various banking services. Key revenue streams include net interest income, which is earned from the interest...
Cathay General Bancorp Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive performance: solid quarterly and annual earnings growth, EPS expansion, loan and deposit growth, improved NIM and noninterest income, active buybacks, and modestly stronger capital. Key risks flagged include a rise in special mention loans, continued competition pressuring loan yields and deposit pricing (notably ~$4B of maturing CDs), higher effective tax rate and near-term expense growth, and a high share of uninsured deposits (though liquidity coverage is adequate). Overall, management presented confidence in credit trends and liquidity while acknowledging pockets of near-term credit monitoring and competitive pressure.Positive Updates
Quarterly Net Income and EPS Growth
Q4 net income of $90.5M, up 16.5% QoQ from $77.7M; diluted EPS $1.33 in Q4, up 18.3% QoQ from $1.13. Full year 2025 net income $315.1M, up 10.1% YoY from $286.0M.
Negative Updates
Increase in Special Mention Loans
Special mention loans rose from $455M to $535M in Q4 (+$80M). Five loan relationships totaling $92M were downgraded to special mention due to covenant breaches or short-term financial stress; management expects these to resolve within 12 months but they represent near-term credit watch items.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Net Income and EPS Growth
Q4 net income of $90.5M, up 16.5% QoQ from $77.7M; diluted EPS $1.33 in Q4, up 18.3% QoQ from $1.13. Full year 2025 net income $315.1M, up 10.1% YoY from $286.0M.
Read all positive updates
Company Guidance
Management guided to 2026 targets including loan growth of 3.5%–4.5%, deposit growth of 4%–5%, and a net interest margin of 3.4%–3.5% (assuming about a 60% deposit beta on interest‑bearing balances and two Fed funds cuts per futures in June and September); they expect core noninterest expense (ex tax credit and core deposit intangible amortization) to rise ~3.5%–4.5%, an effective tax rate of 20.5%–21.5%, and low‑income housing amortization of roughly $11 million per quarter. Management also noted 60% of loans are fixed or hybrid (30% fixed, 30% hybrid in fixed period, with fixed‑to‑float swaps at 3.1%), available liquidity covering more than 100% of uninsured/unpledged deposits (including $7.5B FHLB capacity, $1.3B Fed capacity and $1.6B unpledged securities), and that they expect to complete the remaining $12M of a $150M buyback in early February and to announce a new repurchase program after approvals.Cathay General Bancorp Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
85
Very Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.38B | 1.39B | 1.31B | 908.10M | 721.11M |
| Gross Profit | 762.46M | 692.22M | 784.06M | 775.97M | 668.37M |
| EBITDA | 431.08M | 334.37M | 421.69M | 492.34M | 397.96M |
| Net Income | 315.12M | 285.98M | 354.12M | 360.64M | 298.30M |
Balance Sheet | |||||
| Total Assets | 24.23B | 23.05B | 23.08B | 21.95B | 20.89B |
| Cash, Cash Equivalents and Short-Term Investments | 1.80B | 1.71B | 2.43B | 2.64B | 3.58B |
| Total Debt | 208.92M | 227.73M | 709.72M | 659.25M | 192.97M |
| Total Liabilities | 21.30B | 20.21B | 20.34B | 19.47B | 18.44B |
| Stockholders Equity | 2.93B | 2.85B | 2.74B | 2.47B | 2.45B |
Cash Flow | |||||
| Free Cash Flow | 363.66M | 325.52M | 381.34M | 464.00M | 330.59M |
| Operating Cash Flow | 368.57M | 329.15M | 384.74M | 467.39M | 334.32M |
| Investing Cash Flow | -857.32M | 184.03M | -1.48B | -1.85B | -859.92M |
| Financing Cash Flow | 873.64M | -302.47M | 758.74M | 94.74M | 1.55B |
Cathay General Bancorp Technical Analysis
Positive
49.60
Price Trends
50.47
Negative
49.29
Positive
47.90
Positive
Market Momentum
-0.65
Negative
52.38
Neutral
75.44
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 49.6 is above the 20-day moving average (MA) of 48.69, below the 50-day MA of 50.47, and above the 200-day MA of 47.90, indicating a neutral trend. The MACD of -0.65 indicates Negative momentum. The RSI at 52.38 is Neutral, neither overbought nor oversold. The STOCH value of 75.44 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.32B | 9.62 | 18.37% | 3.38% | 2.35% | 13.72% | |
74 Outperform | $3.32B | 9.05 | 10.89% | 2.72% | -1.59% | 9.34% | |
70 Outperform | $3.63B | 9.05 | 11.60% | 3.52% | 9.60% | 20.38% | |
68 Neutral | $3.39B | 8.01 | 8.83% | 5.24% | -5.43% | 4.19% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $2.21B | 13.54 | 28.91% | ― | 29.24% | 21.49% | |
64 Neutral | $3.67B | 17.62 | 6.21% | 3.05% | 11.05% | -10.78% |
* Financial Sector Average
CATY
Cathay General Bancorp
49.60
7.39
17.51%
FBP
First Bancorp Puerto Rico
21.18
2.42
12.89%
FIBK
First Interstate Bancsystem
33.50
6.11
22.30%
FULT
Fulton Financial
20.16
2.43
13.74%
INDB
Independent Bank
75.07
12.59
20.15%
TBBK
Bancorp
52.45
-1.14
-2.13%
Cathay General Bancorp Corporate Events
Executive/Board Changes
Cathay General Bancorp Adds Veteran Director to Board
Positive
Feb 5, 2026
On February 4, 2026, Cathay General Bancorp appointed seasoned financial expert Lana Chan as a Class I director of both the company and Cathay Bank, with her term running until the 2027 annual meeting of stockholders; the board has not yet decided...
Executive/Board Changes
Cathay General Bancorp Announces CFO Retirement and Successor
Neutral
Jan 23, 2026
On January 23, 2026, Cathay General Bancorp announced that long-serving Chief Financial Officer and Treasurer Heng W. Chen will retire from his roles at Cathay General Bancorp and Cathay Bank effective March 1, 2026, after a 23-year tenure at the ...
Business Operations and StrategyStock BuybackFinancial Disclosures
Cathay General Bancorp Reports Strong Q4 and 2025 Results
Positive
Jan 22, 2026
On January 22, 2026, Cathay General Bancorp reported unaudited results for the fourth quarter and full year ended December 31, 2025, posting net income of $315.1 million, or $4.54 per diluted share, for 2025 and $90.5 million, or $1.33 per diluted...
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.