Cathay General Bancorp (CATY) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $92.2 million, or $1.37 per diluted share, up 6% sequentially and 19% year-over-year, with ROAA at 1.52% and strong margin expansion for the eighth consecutive quarter.

• Total assets grew to $24.7 billion, with loans at $20.62 billion and deposits at $21.06 billion, both showing solid quarterly and annual growth.

• Board increased share repurchase authorization to $200 million and approved redeeming $54.1 million of Trust Preferred Securities.

• Credit quality remained robust, with declining net charge-offs and improved asset quality metrics.

Financial highlights

• Net interest income was $201 million, up $7 million from the prior quarter; NIM expanded by 5 basis points to 3.48%.

• Non-interest income rose to $21.4 million, driven by equity security gains and higher wealth management fees, offset by securities losses.

• Non-interest expense increased to $92.3 million, mainly due to higher LIHTC amortization and employee costs.

• Period-end loans reached $20.6 billion, up 2.2% sequentially; period-end deposits were $21.1 billion, up 1.9% sequentially.

• Tangible book value per share increased 3% sequentially and 10% year-over-year to $39.93.

Outlook and guidance

• Full-year 2026 loan growth expected at 3.5%-4.5%; deposit growth outlook revised to 3%-4%.

• NIM target for the year remains 3.4%-3.5%, assuming a 25 basis point rate hike in September.

• Adjusted non-interest expense growth outlook maintained at 3.5%-4.5%; effective tax rate expected between 21%-22%.