Cathay General Bancorp (CATY) investor relations material

Executive summary

• Q3 net income was $95.2 million, or $1.43 per diluted share, up 3.3% QoQ and 22.5% YoY.

• Record net interest income, margin expansion, and sequential loan and deposit growth supported results; nonperforming assets fell to $119.2 million, or 0.47% of assets.

Financial highlights

• Net interest income was $211.9 million, up 5.5% QoQ and 11.8% YoY; NIM expanded 4 bps QoQ to 3.52%.

• Noninterest income was $42.8 million, including $36.1 million in equity-security gains and a $3.1 million TruPS redemption benefit, partly offset by a $15.1 million securities repositioning loss.

• Noninterest expense was $103.4 million, including an $8.0 million foundation contribution and $5.4 million contract termination fee; adjusted expense was $82.9 million, up 1.2% QoQ.

• Adjusted PPNR was $140.6 million, up 9.1% QoQ; adjusted efficiency ratio improved to 35.9% from 37.0%.

Outlook and guidance

• FY2026 end-of-period loan growth guidance increased to 5.0%-6.0% from 4.0%-5.0%; deposit growth guidance rose to 3.5%-4.5% from 3.0%-4.0%.

• FY2026 adjusted noninterest expense growth is estimated at 3.5%-4.5%; NIM guidance is 3.40%-3.50%.

• FY2026 effective tax rate is estimated at 21.50%-22.50%; rate assumptions include two 25-bp hikes in September and December.

• Maturing time deposits may reprice higher or run off amid competition; management expects liquidity sources to support operating needs over the next 12 months.