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 23% YoY.

• Record net interest income of $211.9 million and 4-bp NIM expansion to 3.52% supported results.

• Loans and deposits grew sequentially; NPA declined to $119.2 million and 0.47% of assets.

Financial highlights

• Net interest income rose 5.5% QoQ and 12% YoY; provision for credit losses was $28.6 million.

• PPNR was $151.3 million; adjusted PPNR was $140.6 million, up 9.1% QoQ.

• Noninterest income was $42.8 million; adjusted noninterest income was $18.8 million, down $1.5 million QoQ.

• Noninterest expense was $103.4 million; adjusted expense was $82.9 million, up 1.2% QoQ.

• Nine-month net income rose 22.1% YoY to $274.3 million; diluted EPS was $4.09 vs. $3.21.

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 guidance is 3.5%-4.5%; NIM guidance remains 3.40%-3.50%.

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

• Management expects further near-term NIM expansion as asset repricing tailwinds are partly offset by deposit-cost pressure; $3.4 billion of CDs mature at a 3.46% rate.