Cathay General Bancorp Announces Third Quarter 2026 Results

Higher credit-loss provisions and operating expenses partly offset growth in net interest income and non-interest income.

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LOS ANGELES--(BUSINESS WIRE)-- Cathay General Bancorp (the “Company”, “we”, “us”, or “our”) (Nasdaq: CATY), the holding company for Cathay Bank, today announced its unaudited financial results for the quarter ended September 30, 2026. The Company reported net income of $95.2 million, or $1.43 per diluted share, for the third quarter of 2026 compared to $92.2 million, or $1.37 per diluted share for the second quarter of 2026.

“Our third quarter results reflected strong performance across the franchise. Net interest income grew, loans and deposits increased meaningfully, and net interest margin continued to expand,” said Chang M. Liu, President and Chief Executive Officer of the Company. “We remain focused on disciplined execution and prudent balance sheet management to build on this progress and continue delivering long-term value for our shareholders.”

THIRD QUARTER HIGHLIGHTS

		Three months ended
(unaudited)		September 30, 2026			June 30, 2026			September 30, 2025
Net income		$95.2 million			$92.2 million			$77.7 million
Basic earnings per common share		$1.43			$1.38			$1.13
Diluted earnings per common share		$1.43			$1.37			$1.13
Return on average assets		1.51	%		1.52	%		1.29	%
Return on average total stockholders' equity		12.28	%		12.21	%		10.60	%
Efficiency ratio		40.60	%		41.53	%		41.84	%

• Record net interest income of $211.9 million, an increase of $11.0 million, or 5.5%, from the second quarter of 2026.
• Net interest margin expanded four basis points to 3.52% from 3.48% in the second quarter of 2026.
• Total loans, excluding loans held for sale, increased $574.5 million, or 2.79% sequentially to $21.20 billion, representing approximately 11.4% annualized growth.
• Total deposits increased $773.3 million, or 3.67%, sequentially to $21.83 billion, supporting strong loan growth and strategic balance sheet positioning.
• Nonperforming assets declined $26.2 million, or 18.0%, and the ratio of nonperforming assets to total assets improved to 0.47% from 0.59%.
• The provision for credit losses was $28.6 million, primarily reflecting strong loan growth and updated loss assumptions incorporating recent charge-off experience.
• The Company completed the redemption of $54.1 million of Trust Preferred Securities (“TruPS”), representing approximately 45% of the Company's $119.1 million of outstanding TruPS.

INCOME STATEMENT REVIEW
THIRD QUARTER 2026 COMPARED TO THE SECOND QUARTER 2026

Net income for the quarter ended September 30, 2026, was $95.2 million, an increase of $3.0 million, or 3.3%, compared to net income of $92.2 million for the second quarter of 2026. Diluted earnings per share for the third quarter of 2026 was $1.43 per share compared to $1.37 per share for the second quarter of 2026.

Return on average stockholders’ equity was 12.28% and return on average assets was 1.51% for the quarter ended September 30, 2026, compared to a return on average stockholders’ equity of 12.21% and a return on average assets of 1.52% in the second quarter of 2026.

Net interest income before provision for credit losses

Net interest income before provision for credit losses increased $11.0 million, or 5.5%, to $211.9 million during the third quarter of 2026, compared to $200.9 million in the second quarter of 2026. The increase was due primarily to an increase in interest income from loans and deposits with banks and partially offset by an increase in deposit interest expense.

The net interest margin was 3.52% for the third quarter of 2026 compared to 3.48% for the second quarter of 2026.

For the third quarter of 2026, the yield on average interest-earning assets was 5.74%, the cost of funds on average interest-bearing liabilities was 2.93%, and the cost of average interest-bearing deposits was 2.91%. In comparison, for the second quarter of 2026, the yield on average interest-earning assets was 5.66%, the cost of funds on average interest-bearing liabilities was 2.89%, and the cost of average interest-bearing deposits was 2.86%. The increase in the cost of funds on average interest-bearing liabilities resulted mainly from higher interest rates on deposits, driven by the higher repricing of maturing time deposits in the third quarter. The increase in the yield on average interest-earning assets resulted mainly from higher interest rates on loans. The net interest spread, defined as the difference between the yield on average interest-earning assets and the cost of funds on average interest-bearing liabilities, was 2.81% for the third quarter of 2026, compared to 2.77% for the second quarter of 2026.

Provision for credit losses

The Company recorded a provision for credit losses of $28.6 million in the third quarter of 2026 compared to $11.2 million in the second quarter of 2026. The higher provision primarily reflected strong loan growth and updated loss assumptions incorporating recent charge-off experience. Nonperforming assets declined $26.2 million, or 18.0%, during the quarter, and the ratio of nonperforming assets to total assets improved to 0.47% from 0.59%. As of September 30, 2026, the allowance for loan losses increased by $5.3 million to $224.2 million, or 1.06% of gross loans, compared to $218.9 million, or 1.06% of gross loans as of June 30, 2026.

Net charge-offs of $25.3 million, or 0.48% of average loans on an annualized basis, were concentrated in three borrower-specific credits, including one construction loan and two movie theater CRE loans acquired from Far East National Bank.

The following table sets forth the charge-offs and recoveries for the periods indicated:

		Three months ended												Nine months ended September 30,
		September 30, 2026				June 30, 2026				September 30, 2025				2026				2025
		(In thousands) (Unaudited)
Charge-offs:
Commercial loans		$	261			$	2,743			$	16,173			$	10,975			$	27,634
Construction loans			8,810				—				—				8,810				—
Real estate loans (1)			17,876				—				314				19,261				4,227
Total charge-offs			26,947				2,743				16,487				39,046				31,861
Recoveries:
Commercial loans			1,660				853				547				7,444				1,012
Construction loans			—				—				5				—				6
Real estate loans (1)			—				42				289				2,344				479
Total recoveries			1,660				895				841				9,788				1,497
Net charge-offs		$	25,287			$	1,848			$	15,646			$	29,258			$	30,364

(1)

Real estate loans include commercial real estate loans, residential mortgage loans and equity lines.

Non-interest income

Non-interest income, which includes revenues from depository service fees, letters of credit commissions, securities gains (losses), wealth management fees, and other sources of fee income, was $42.8 million for the third quarter of 2026, an increase of $21.4 million, or 99.8%, compared to $21.4 million for the second quarter of 2026. The increase was primarily driven by a $24.4 million increase in net gains from equity securities and a $3.1 million benefit from the redemption of TruPS, partially offset by a $4.5 million increase in losses related to investment securities repositioning activities and a $1.3 million decrease in wealth management fees.

Non-interest expense

Non-interest expense increased $11.1 million, or 12.0%, to $103.4 million in the third quarter of 2026 compared to $92.3 million in the second quarter of 2026. The increase was primarily attributable to an $8.0 million charitable contribution to the Cathay Bank Foundation, a $5.4 million contract termination fee, and a $1.5 million increase in salaries and employee benefits, partially offset by a $3.4 million decrease in the amortization of investments in low-income housing and alternative energy partnerships. The efficiency ratio, defined as non-interest expense divided by the sum of net interest income before provision for credit losses plus non-interest income, was 40.60% in the third quarter of 2026 compared to 41.53% for the second quarter of 2026.

Income taxes

The effective tax rate for the third quarter of 2026 was 22.42% compared to 22.35% for the second quarter of 2026, primarily due to the higher pre-tax income in the third quarter of 2026. The effective tax rate for the third quarter of 2026 and second quarter of 2026 includes the impact of low-income housing tax credits.

BALANCE SHEET REVIEW

Gross loans, excluding loans held for sale, increased $574.5 million, or 2.79%, to $21.20 billion as of September 30, 2026, from $20.62 billion as of June 30, 2026. The increase was primarily due to increases of $420.4 million, or 11.9%, in commercial loans; $73.3 million, or 1.3%, in residential real estate loans; $65.5 million, or 0.6%, in commercial real estate loans; and $17.5 million, or 7.0%, in construction loans, partially offset by a decrease of $6.4 million, or 2.7%, in equity lines.

The loan balances and composition as of September 30, 2026, compared to June 30, 2026, and September 30, 2025, are presented below:

		September 30, 2026				June 30, 2026				September 30, 2025
		(In thousands) (Unaudited)
Commercial loans		$	3,945,390			$	3,524,945			$	3,212,907
Construction loans			265,880				248,375				356,215
Commercial real estate loans			10,844,794				10,779,326				10,484,939
Residential mortgage loans			5,905,416				5,832,159				5,815,140
Equity lines			227,831				234,265				232,254
Installment and other loans			6,550				2,262				3,261
Gross loans		$	21,195,861			$	20,621,332			$	20,104,716
Allowance for loan losses			(224,190	)			(218,896	)			(186,647	)
Unamortized deferred loan fees			(15,523	)			(14,606	)			(14,987	)
Total loans held for investment, net		$	20,956,148			$	20,387,830			$	19,903,082
Loans held for sale		$	13,597			$	—			$	—

Total deposits were $21.83 billion as of September 30, 2026, an increase of $773.3 million, or 3.67%, from $21.06 billion as of June 30, 2026.

The deposit balances and composition as of September 30, 2026, compared to June 30, 2026, and September 30, 2025, are presented below:

		September 30, 2026				June 30, 2026				September 30, 2025
		(In thousands) (Unaudited)
Non-interest-bearing demand deposits		$	3,950,436			$	3,567,527			$	3,574,567
NOW deposits			2,634,247				2,612,011				2,226,182
Money market deposits			4,284,484				3,894,594				3,586,301
Savings deposits			1,517,383				1,421,969				1,424,243
Time deposits			9,448,438				9,565,547				9,709,856
Total deposits		$	21,834,988			$	21,061,648			$	20,521,149

ASSET QUALITY REVIEW

As of September 30, 2026, total non-accrual loans were $87.3 million, a decrease of $24.4 million, or 21.8%, from $111.7 million as of June 30, 2026.

The allowance for loan losses was $224.2 million and the allowance for off-balance sheet unfunded credit commitments was $12.9 million as of September 30, 2026. Together, these allowances represent the amount estimated by management to be appropriate to absorb expected credit losses inherent in the loan portfolio, including unfunded credit commitments. The allowance for loan losses represented 1.06% of period-end gross loans, and 242.97% of non-performing loans as of September 30, 2026. The comparable ratios were 1.06% of period-end gross loans, and 195.97% of non-performing loans as of June 30, 2026.

The changes in non-performing assets as of September 30, 2026, compared to June 30, 2026, and September 30, 2025, are presented below:

(In thousands) (Unaudited)		September 30, 2026				June 30, 2026				% Change			September 30, 2025				% Change
Non-performing assets
Accruing loans past due 90 days or more		$	4,994			$	—			100			$	110			4,440
Non-accrual loans:
Commercial real estate loans			47,246				70,157			(33	)			103,158			(54	)
Commercial loans			7,188				8,448			(15	)			33,690			(79	)
Residential mortgage loans			32,844				33,091			(1	)			28,784			14
Total non-accrual loans:		$	87,278			$	111,696			(22	)		$	165,632			(47	)
Total non-performing loans			92,272				111,696			(17	)			165,742			(44	)
Other real estate owned			26,910				33,659			(20	)			32,983			(18	)
Total non-performing assets		$	119,182			$	145,355			(18	)		$	198,725			(40	)
Allowance for loan losses		$	224,190			$	218,896			2			$	186,647			20
Allowance for off-balance sheet credit commitments		$	12,938			$	14,918			(13	)		$	9,860			31
Total gross loans outstanding, at period-end		$	21,195,861			$	20,621,332			3			$	20,104,716			5
Allowance for loan losses to non-performing loans, at period-end			242.97	%			195.97	%						112.61	%
Allowance for loan losses to gross loans, at period-end			1.06	%			1.06	%						0.93	%

The ratio of non-performing assets to total assets decreased to 0.47% as of September 30, 2026, from 0.59% as of June 30, 2026. Total non-performing assets decreased $26.2 million, or 18.0%, to $119.2 million as of September 30, 2026, from $145.4 million as of June 30, 2026. The decrease was primarily due to decreases of $24.4 million, or 21.8%, in non-accrual loans and $6.7 million, or 20.1%, in other real estate owned, partially offset by an increase of $5.0 million, or 100.0%, in accruing loans past due 90 days or more.

CAPITAL ADEQUACY REVIEW

As of September 30, 2026, the Company’s Common Equity Tier 1 risk-based capital ratio of 13.51%, Tier 1 risk-based capital ratio of 13.51%, total risk-based capital ratio of 15.00%, and Tier 1 leverage capital ratio of 11.06%, calculated under the Basel III capital rules, exceeded applicable minimum regulatory capital requirements, including the fully phased-in 2.5% capital conservation buffer applicable to the risk-based capital ratios. As of June 30, 2026, the Company’s Common Equity Tier 1 risk-based capital ratio was 13.70%, Tier 1 risk-based capital ratio was 13.70%, total risk-based capital ratio was 15.47%, and Tier 1 leverage capital ratio was 11.28%.

YEAR-TO-DATE REVIEW

Net income for the nine months ending September 30, 2026, was $274.3 million, an increase of $49.7 million, or 22.1%, compared to net income of $224.6 million for the same period a year ago. Diluted earnings per share for the nine months ending September 30, 2026 was $4.09 per share compared to $3.21 per share for the same period a year ago. The net interest margin for the nine months ended September 30, 2026, was 3.48% compared to 3.28% for the same period a year ago.

Return on average stockholders’ equity was 12.13% and return on average assets was 1.50% for the nine months ended September 30, 2026, compared to a return on average stockholders’ equity of 10.39% and a return on average assets of 1.28% for the same period a year ago. The efficiency ratio for the nine months ended September 30, 2026, was 40.82% compared to 44.18% for the same period a year ago.

CONFERENCE CALL

Cathay General Bancorp will host a conference call to discuss its third quarter 2026 financial results this afternoon, Wednesday, October 21, 2026, at 3:00 p.m., Pacific Time. Analysts and investors may dial in and participate in the question-and-answer session. To access the call, please dial 1-833-816-1377 and enter Conference ID 10212696. The presentation accompanying this call and access to the live webcast is available on our site at www.cathaygeneralbancorp.com and a replay of the webcast will be archived for one year within 24 hours after the event.

ABOUT CATHAY GENERAL BANCORP

Cathay General Bancorp is a publicly traded company (Nasdaq: CATY) and is the holding company for Cathay Bank, a California state-chartered bank. Founded in 1962, Cathay Bank offers a wide range of financial services and currently operates over 60 branches across the United States in California, New York, Washington, Texas, Illinois, Massachusetts, Maryland, Nevada, and New Jersey. Overseas, it has a branch outlet in Hong Kong, and representative offices in Beijing, Shanghai, Taipei and Ho Chi Minh City. To learn more about Cathay Bank, please visit www.cathaybank.com. Cathay General Bancorp’s website is at www.cathaygeneralbancorp.com. Information set forth on such websites is not incorporated into this press release.

FORWARD-LOOKING STATEMENTS

Statements made in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995 regarding management’s beliefs, projections, and assumptions concerning future results and events. These forward-looking statements may include, but are not limited to, such words as “aims,” “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “hopes,” “intends,” “may,” “plans,” “projects,” “predicts,” “potential,” “possible,” “optimistic,” “seeks,” “shall,” “should,” “will,” and variations of these words and similar expressions. Forward-looking statements are based on estimates, beliefs, projections, and assumptions of management and are not guarantees of future performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. Such risks and uncertainties and other factors include, but are not limited to, adverse developments or conditions related to or arising from local, regional, national and international business, market and economic conditions and events, the potential for new or increased tariffs, trade restrictions or geopolitical tensions that could affect economic activity or specific industry sectors and the impact they may have on us, our customers and our operations, assets and liabilities; possible additional provisions for credit losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to including potential future supervisory action by bank supervisory authorities; increased costs of compliance and other risks associated with changes in regulation; higher capital requirements from the implementation of the Basel III capital standards; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; our ability to generate anticipated returns on our investments and financings, including in tax-advantaged projects; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; natural disasters, public health crises and geopolitical events; including wars and armed conflicts, and their resulting economic impacts; general economic or business conditions in Asia, and other regions where Cathay Bank has operations; failures, interruptions, or security breaches of our information systems; our ability to adapt our systems to technological changes; risk management processes and strategies; adverse results in legal proceedings; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in accounting standards or tax laws and regulations; market disruption and volatility; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; issuance of preferred stock; successfully raising additional capital, if needed, and the resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; and general competitive, economic, political, and market conditions and fluctuations.

These and other factors are further described in Cathay General Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025 (Item 1A in particular), other reports filed with the Securities and Exchange Commission (“SEC”), and other filings Cathay General Bancorp makes with the SEC from time to time. Actual results in any future period may also vary from the past results discussed in this press release. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we undertake no obligation to update or review any forward-looking statement to reflect circumstances, developments or events occurring after the date on which the statement is made or to reflect the occurrence of unanticipated events.

CATHAY GENERAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
		Three months ended												Nine months ended September 30,
(In thousands, except per share data)		September 30, 2026				June 30, 2026				September 30, 2025				2026				2025
Financial performance
Net interest income before provision for credit losses		$	211,878			$	200,897			$	189,587			$	606,943			$	547,447
Provision for credit losses			28,600				11,240				28,731				58,033				55,431
Net interest income after provision for credit losses			183,278				189,657				160,856				548,910				492,016
Non-interest income			42,770				21,405				21,021				84,834				47,616
Non-interest expense			103,376				92,316				88,117				282,372				262,907
Income before income tax expense			122,672				118,746				93,760				351,372				276,725
Income tax expense			27,498				26,537				16,109				77,103				52,118
Net income		$	95,174			$	92,209			$	77,651			$	274,269			$	224,607
Net income per common share:
Basic		$	1.43			$	1.38			$	1.13			$	4.10			$	3.22
Diluted		$	1.43			$	1.37			$	1.13			$	4.09			$	3.21
Cash dividends paid per common share		$	0.38			$	0.38			$	0.34			$	1.14			$	1.02
Selected ratios
Return on average assets			1.51	%			1.52	%			1.29	%			1.50	%			1.28	%
Return on average total stockholders’ equity			12.28	%			12.21	%			10.60	%			12.13	%			10.39	%
Efficiency ratio			40.60	%			41.53	%			41.84	%			40.82	%			44.18	%
Dividend payout ratio			26.49	%			27.59	%			29.93	%			27.74	%			31.59	%
Yield analysis (Fully taxable equivalent)
Total interest-earning assets			5.74	%			5.66	%			5.84	%			5.70	%			5.85	%
Total interest-bearing liabilities			2.93	%			2.89	%			3.32	%			2.94	%			3.38	%
Net interest spread			2.81	%			2.77	%			2.52	%			2.76	%			2.47	%
Net interest margin			3.52	%			3.48	%			3.31	%			3.48	%			3.28	%
Capital ratios		September 30, 2026				June 30, 2026				September 30, 2025
Common equity tier 1 capital ratio			13.51	%			13.70	%			13.15	%
Tier 1 risk-based capital ratio			13.51	%			13.70	%			13.15	%
Total risk-based capital ratio			15.00	%			15.47	%			14.76	%
Tier 1 leverage capital ratio			11.06	%			11.28	%			10.88	%

CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share data)		September 30, 2026				June 30, 2026				September 30, 2025
Assets
Cash and due from banks		$	131,044			$	163,976			$	166,167
Short-term investments and interest bearing deposits			1,576,961				1,163,120				1,141,886
Securities available-for-sale (amortized cost of $1,657,883 at September 30, 2026, $1,737,212 at June 30, 2026 and $1,728,199 at September 30, 2025)			1,589,036				1,682,820				1,643,450
Loans held for sale			13,597				—				—
Loans			21,195,861				20,621,332				20,104,716
Less: Allowance for loan losses			(224,190	)			(218,896	)			(186,647	)
Unamortized deferred loan fees, net			(15,523	)			(14,606	)			(14,987	)
Loans, net			20,956,148				20,387,830				19,903,082
Equity securities			116,907				80,854				32,111
Federal Home Loan Bank stock			17,250				17,250				17,250
Other real estate owned, net			26,910				33,659				32,983
Affordable housing investments and alternative energy partnerships, net			295,407				293,553				292,672
Premises and equipment, net			90,346				90,613				88,552
Customers’ liability on acceptances			6,393				11,214				7,730
Accrued interest receivable			97,206				94,676				96,055
Goodwill			375,696				375,696				375,696
Other intangible assets, net			2,095				2,341				2,667
Right-of-use assets- operating leases			35,493				33,269				31,086
Other assets			242,012				221,948				244,257
Total assets		$	25,572,501			$	24,652,819			$	24,075,644
Liabilities and Stockholders’ Equity
Deposits:
Non-interest-bearing demand deposits		$	3,950,436			$	3,567,527			$	3,574,567
Interest-bearing deposits:
NOW deposits			2,634,247				2,612,011				2,226,182
Money market deposits			4,284,484				3,894,594				3,586,301
Savings deposits			1,517,383				1,421,969				1,424,243
Time deposits			9,448,438				9,565,547				9,709,856
Total deposits			21,834,988				21,061,648				20,521,149
Advances from the Federal Home Loan Bank			200,000				—				190,000
Long-term debt			65,011				119,136				119,136
Acceptances outstanding			6,393				11,214				7,730
Lease liabilities - operating leases			37,370				35,114				33,079
Other liabilities			371,994				379,093				302,274
Total liabilities			22,515,756				21,606,205				21,173,368
Stockholders' equity			3,056,745				3,046,614				2,902,276
Total liabilities and equity		$	25,572,501			$	24,652,819			$	24,075,644
Book value per common share		$	46.26			$	45.59			$	42.50
Number of common shares outstanding			66,083,728				66,825,367				68,286,591

CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
		Three months ended												Nine months ended September 30,
		September 30, 2026				June 30, 2026				September 30, 2025				2026				2025
		(In thousands, except share and per share data)
Interest and Dividend Income
Loan receivable, including loan fees		$	317,189			$	302,170			$	308,945			$	918,294			$	899,786
Investment securities			15,086				14,420				12,690				42,489				38,459
Federal Home Loan Bank stock			658				253				376				1,785				1,128
Deposits with banks			12,219				10,610				12,184				32,947				37,135
Total interest and dividend income			345,152				327,453				334,195				995,515				976,508
Interest Expense
Time deposits			83,001				80,207				93,087				248,054				283,517
Other deposits			47,869				42,930				46,300				131,805				133,104
Advances from Federal Home Loan Bank			384				1,457				3,075				2,851				5,721
Long-term debt			1,808				1,841				2,043				5,478				6,092
Short-term borrowings			212				121				103				384				627
Total interest expense			133,274				126,556				144,608				388,572				429,061
Net interest income before provision for credit losses			211,878				200,897				189,587				606,943				547,447
Provision for credit losses			28,600				11,240				28,731				58,033				55,431
Net interest income after provision for credit losses			183,278				189,657				160,856				548,910				492,016
Non-Interest Income
Net gains/(losses) from equity securities			36,053				11,652				3,263				65,021				(2,318	)
Net loss on investment securities			(15,084	)			(10,554	)			—				(41,323	)			—
Letters of credit commissions			2,093				2,331				2,256				6,830				6,467
Depository service fees			2,106				1,971				2,011				6,091				5,688
Wealth management fees			6,623				7,920				6,219				21,645				17,324
Other operating income			10,979				8,085				7,272				26,570				20,455
Total non-interest income			42,770				21,405				21,021				84,834				47,616
Non-Interest Expense
Salaries and employee benefits			48,233				46,733				43,462				140,477				129,012
Occupancy expense			6,171				5,812				6,104				17,799				17,791
Computer and equipment expense			7,211				6,594				5,760				19,432				16,974
Professional services expense			7,842				7,438				7,360				23,062				23,696
Data processing service expense			4,136				3,651				3,991				11,802				13,028
FDIC and State assessments			2,896				2,992				2,783				8,335				9,359
Marketing expense			1,683				1,472				1,494				5,018				4,485
Other real estate owned expense/(income)			442				339				(1,078	)			2,370				(1,211	)
Amortization of investments in low income housing and alternative energy partnerships			6,467				9,873				12,149				23,080				32,382
Amortization of core deposit intangibles			218				217				229				653				729
Other operating expense			18,077				7,195				5,863				30,344				16,662
Total non-interest expense			103,376				92,316				88,117				282,372				262,907
Income before income tax expense			122,672				118,746				93,760				351,372				276,725
Income tax expense			27,498				26,537				16,109				77,103				52,118
Net income		$	95,174			$	92,209			$	77,651			$	274,269			$	224,607
Net income per common share:
Basic		$	1.43			$	1.38			$	1.13			$	4.10			$	3.22
Diluted		$	1.43			$	1.37			$	1.13			$	4.09			$	3.21
Cash dividends paid per common share		$	0.38			$	0.38			$	0.34			$	1.14			$	1.02
Basic average common shares outstanding			66,499,705				67,014,700				68,727,390				66,832,009				69,692,964
Diluted average common shares outstanding			66,761,397				67,304,846				68,990,648				67,131,370				69,946,877

CATHAY GENERAL BANCORP
AVERAGE BALANCES – SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)
		Three months ended
(In thousands) (Unaudited)		September 30, 2026							June 30, 2026							September 30, 2025
Interest-earning assets:		Average Balance				Average Yield/Rate (1)			Average Balance				Average Yield/Rate (1)			Average Balance				Average Yield/Rate (1)
Loans (1)		$	20,891,868			6.02	%		$	20,297,364			5.97	%		$	19,951,853			6.14	%
Taxable investment securities			1,651,113			3.62	%			1,704,008			3.39	%			1,634,248			3.08	%
FHLB stock			17,250			15.13	%			17,250			5.87	%			17,250			8.65	%
Deposits with banks			1,310,565			3.70	%			1,168,077			3.64	%			1,113,274			4.34	%
Total interest-earning assets		$	23,870,796			5.74	%		$	23,186,699			5.66	%		$	22,716,625			5.84	%
Interest-bearing liabilities:
Interest-bearing demand deposits		$	2,608,725			1.66	%		$	2,493,275			1.48	%		$	2,189,376			1.70	%
Money market deposits			4,065,916			3.08	%			3,734,347			3.02	%			3,556,374			3.44	%
Savings deposits			1,503,628			1.44	%			1,511,915			1.49	%			1,419,953			1.72	%
Time deposits			9,660,600			3.41	%			9,501,517			3.39	%			9,698,744			3.81	%
Total interest-bearing deposits		$	17,838,869			2.91	%		$	17,241,054			2.86	%		$	16,864,447			3.28	%
Other borrowed funds			71,414			3.32	%			174,147			3.63	%			295,892			4.26	%
Long-term debt			115,634			6.20	%			119,136			6.20	%			119,136			6.80	%
Total interest-bearing liabilities		$	18,025,917			2.93	%		$	17,534,337			2.89	%			17,279,475			3.32	%
Non-interest-bearing demand deposits			3,569,978							3,454,633							3,384,141
Total deposits and other borrowed funds		$	21,595,895						$	20,988,970						$	20,663,616
Total average assets		$	24,945,244						$	24,269,814						$	23,843,380
Total average equity		$	3,074,263						$	3,029,993						$	2,907,596
Net interest spread						2.81	%						2.77	%						2.52	%
Net interest margin						3.52	%						3.48	%						3.31	%

(1)		Yields and interest earned include net loan fees. Non-accrual loans are included in the average balance.

		Nine months ended
(In thousands) (Unaudited)		September 30, 2026							September 30, 2025
Interest-earning assets:		Average Balance				Average Yield/Rate (1)			Average Balance				Average Yield/Rate (1)
Loans (1)		$	20,453,313			6.00	%		$	19,593,553			6.14	%
Taxable investment securities			1,675,273			3.39	%			1,572,074			3.27	%
FHLB stock			17,250			13.83	%			17,250			8.74	%
Deposits with banks			1,202,938			3.66	%			1,139,060			4.36	%
Total interest-earning assets		$	23,348,774			5.70	%		$	22,321,937			5.85	%
Interest-bearing liabilities:
Interest-bearing demand deposits		$	2,482,097			1.53	%		$	2,155,336			1.69	%
Money market deposits			3,825,022			3.03	%			3,468,421			3.43	%
Savings deposits			1,509,852			1.48	%			1,351,352			1.65	%
Time deposits			9,616,901			3.45	%			9,658,300			3.92	%
Total interest-bearing deposits		$	17,433,872			2.91	%		$	16,633,409			3.35	%
Other borrowed funds			124,401			3.48	%			204,953			4.14	%
Long-term debt			117,956			6.21	%			119,136			6.84	%
Total interest-bearing liabilities			17,676,229			2.94	%			16,957,498			3.38	%
Non-interest-bearing demand deposits			3,459,809							3,340,530
Total deposits and other borrowed funds		$	21,136,038						$	20,298,028
Total average assets		$	24,421,642						$	23,462,799
Total average equity		$	3,023,608						$	2,890,581
Net interest spread						2.76	%						2.47	%
Net interest margin						3.48	%						3.28	%

(1)

Yields and interest earned include net loan fees. Non-accrual loans are included in the average balance.

CATHAY GENERAL BANCORP
GAAP to NON-GAAP RECONCILIATION
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)

The Company uses certain non-GAAP financial measures including tangible book value (“TBV”), tangible book value per share (“TBV/Share”), tangible assets, tangible common equity (“TCE”) ratio, the return on average tangible common stockholders’ equity (“ROATCE”), adjusted total revenue, adjusted non-interest expense, and the adjusted efficiency ratio. We believe these non-GAAP financial measures provide investors with information useful in understanding its financial position, results of operations, the strength of its capital position, and overall business performance. These non-GAAP financial measures are used for performance measurement purposes, as well as for internal planning and forecasting, and by securities analysts, investors, and other interested parties to assess peer company operating performance. These non-GAAP financial measures should not be considered a substitute for GAAP-basis financial measures. Because non-GAAP financial measures are not standardized, it may not be possible to compare these with other companies that present financial measures having the same or similar names. The Company strongly encourages investors to review its consolidated financial statements in their entirety and to not rely on any single financial measure.

TBV represents stockholders’ equity less goodwill and other intangible assets. TBV/share represents TBV divided by the number of common shares outstanding at the end of the reporting period. The TCE ratio represents TBV divided by tangible assets. Tangible assets is equal to total assets less goodwill and other intangible assets. ROATCE is calculated using net income adjusted for the tax-effected amortization of intangible assets, as a percentage of average stockholders’ equity less average goodwill and other intangible assets.

				As of
($ In thousands, except share and per share data)				September 30, 2026				June 30, 2026				September 30, 2025
				(Unaudited)
Stockholders' equity		(a)		$	3,056,745			$	3,046,614			$	2,902,276
Less: Goodwill					(375,696	)			(375,696	)			(375,696	)
Other intangible assets (1)					(2,095	)			(2,341	)			(2,667	)
Tangible book value		(b)		$	2,678,954			$	2,668,577			$	2,523,913
Total assets		(c)		$	25,572,501			$	24,652,819			$	24,075,644
Less: Goodwill					(375,696	)			(375,696	)			(375,696	)
Other intangible assets (1)					(2,095	)			(2,341	)			(2,667	)
Tangible assets		(d)		$	25,194,710			$	24,274,782			$	23,697,281
Average stockholders' equity				$	3,074,263			$	3,029,993			$	2,907,596
Less: Average goodwill and other intangible assets, net					(377,960	)			(378,072	)			(378,510	)
Average tangible stockholders' equity		(e)		$	2,696,303			$	2,651,921			$	2,529,086
Number of common shares outstanding		(f)			66,083,728				66,825,367				68,286,591
Common equity to assets ratio		g=(a)/(c)			11.95	%			12.36	%			12.05	%
Tangible common equity ratio		h=(b)/(d)			10.63	%			10.99	%			10.65	%
Book value per share				$	46.26			$	45.59			$	42.50
Tangible book value per share		i=(b)/(f)		$	40.54			$	39.93			$	36.96
				Three Months Ended
				September 30, 2026				June 30, 2026				September 30, 2025
				(Unaudited)
Net Income				$	95,174			$	92,209			$	77,651
Add: Amortization of other intangibles (1)					210				278				249
Tax effect of amortization adjustments (2)					(62	)			(82	)			(74	)
Tangible net income		(j)		$	95,322			$	92,405			$	77,826
Return on average stockholders' equity (3)					12.28	%			12.21	%			10.60	%
Return on average tangible common equity (3)		k=(j)/(e)			14.03	%			13.98	%			12.21	%

(1)		Includes core deposit intangibles and servicing rights
(2)		Applied the statutory rate of 29.65%.
(3)		Annualized

				As of
($ In thousands, except share and per share data)				September 30, 2026				September 30, 2025
				(Unaudited)
Stockholders' equity		(a)		$	3,056,745			$	2,902,276
Less: Goodwill					(375,696	)			(375,696	)
Other intangible assets (1)					(2,095	)			(2,667	)
Tangible book value		(b)		$	2,678,954			$	2,523,913
Total assets		(c)		$	25,572,501			$	24,075,644
Less: Goodwill					(375,696	)			(375,696	)
Other intangible assets (1)					(2,095	)			(2,667	)
Tangible assets		(d)		$	25,194,710			$	23,697,281
Average stockholders' equity				$	3,023,608			$	2,890,581
Less: Average goodwill and other intangible assets, net					(378,110	)			(378,718	)
Average tangible stockholders' equity		(e)		$	2,645,498			$	2,511,863
Number of common shares outstanding		(f)			66,083,728				68,286,591
Common equity to assets ratio		g=(a)/(c)			11.95	%			12.05	%
Tangible common equity ratio		h=(b)/(d)			10.63	%			10.65	%
Book value per share				$	46.26			$	42.50
Tangible book value per share		i=(b)/(f)		$	40.54			$	36.96
				Nine months ended
				September 30, 2026				September 30, 2025
Net Income				$	274,269			$	224,607
Add: Amortization of other intangibles (1)					720				796
Tax effect of amortization adjustments (2)					(213	)			(236	)
Tangible net income		(j)		$	274,776			$	225,167
Return on average stockholders' equity (3)					12.13	%			10.39	%
Return on average tangible common equity (3)		k=(j)/(e)			13.89	%			11.99	%

(1)		Includes core deposit intangibles and servicing rights
(2)		Applied the statutory rate of 29.65%.
(3)		Annualized

Adjusted total revenue is calculated by adding net interest income before provision for credit losses and non-interest income excluding net gains and losses from equity and investment securities and TruPS redemption benefit. Adjusted non-interest expense is non-interest expense excluding amortization of investments in low-income housing and alternative energy partnerships, other real estate owned expenses, amortization of core deposit intangibles, the FDIC special assessment, charitable contribution to Cathay Bank Foundation and contract termination costs. The Adjusted efficiency ratio is calculated by dividing the Company’s adjusted non‑interest expense by adjusted total revenue. It represents the costs expended to generate a dollar of revenue. The adjusted components exclude items that are non‑operational as well as the amortization of investments in low‑income housing partnerships and alternative energy partnerships. Although this amortization is operational in nature, it is removed to enhance comparability with peers that report these costs within income tax expense under proportional amortization accounting, which the Company has not yet adopted.

				Three months ended												Nine months ended
($ In thousands) (Unaudited)				September 30, 2026				June 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
Net interest income before provision for credit losses		a		$	211,878			$	200,897			$	189,587			$	606,943			$	547,447
Non-interest income				$	42,770			$	21,405			$	21,021			$	84,834			$	47,616
Adjustments:
Net unrealized (gains)/losses from equity securities					(36,053	)			(11,652	)			(3,263	)			(65,021	)			2,318
Net loss on investment securities					15,084				10,554				—				41,323				—
TruPS redemption benefit					(3,134	)			—				—				(3,134	)			—
Adjusted non-interest income		b		$	18,667			$	20,307			$	17,758			$	58,002			$	49,934
Adjusted total revenue		c=a+b		$	230,545			$	221,204			$	207,345			$	664,945			$	597,381
Non-interest expense		d		$	103,376			$	92,316			$	88,117			$	282,372			$	262,907
Adjustments:
Amortization of investments in low income housing and alternative energy partnerships					(6,467	)			(9,873	)			(12,149	)			(23,080	)			(32,382	)
Other real estate owned					(442	)			(339	)			1,078				(2,370	)			1,211
Amortization of core deposit intangible					(218	)			(217	)			(229	)			(653	)			(729	)
FDIC special assessment					—				—				327				585				188
Charitable contribution to Cathay Bank Foundation					(8,000	)			—				—				(8,000	)			—
Contract termination costs					(5,383	)			—				—				(5,383	)			—
Adjusted non-interest expense		e		$	82,866			$	81,887			$	77,144			$	243,471			$	231,195
Efficiency ratio					40.6	%			41.5	%			41.8	%			40.8	%			44.2	%
Adjusted efficiency ratio		f=e/c			35.9	%			37.0	%			37.2	%			36.6	%			38.7	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261021941568/en/

Albert J. Wang
(626) 279-3695

Source: Cathay General Bancorp

Key Terms

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

trust preferred securities financial

Trust preferred securities are a hybrid investment that blends features of bonds and stocks: an issuing company places assets into a separate trust which sells these securities and passes regular payments to holders much like bond interest. They can behave like equity for regulatory or accounting purposes while still offering a fixed-income stream, so they matter to investors because they carry higher income than plain bonds but also higher risk and potential sensitivity to issuer capital and credit moves.

net charge-offs financial

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

non-accrual loans financial

A non-accrual loan is a loan a lender has decided is unlikely to produce the scheduled interest payments, so the lender stops counting future interest as income and may record the loan at a reduced value. Think of it like renting out a house where the tenant has stopped paying: you stop counting future rent as earnings because it’s uncertain you’ll get it. For investors, a rise in non-accrual loans signals worsening credit quality, lower reported income and higher potential losses that can weaken a bank’s capital and share price.