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/CATY
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Cathay General Bancorp

Cathay General Bancorp

CATY
$62.71USD↓-1.59%-1.01 today

MARKET CAP

4.2B

P/E (TTM)

12.3x

FWD P/E

10.9x

DAY RANGE

$62 – $64

52W RANGE

$44
$64

AI Summary

Stalk
Buy NowMedium

In a Stage 2 advance, CATY is in a strong parabolic acceleration above rising EMAs and the 50 DMA. The recent shallow pullback into the 9/21 EMA zone held support with constructive volume, offering a favorable entry. Neutral overbought readings and underlying uptrends across horizons support immediate participation. Key risk is failure to hold near-term EMA support, which would signal emerging exhaustion.

  • ↑Q1 net income $86.9M, EPS $1.29; tangible book value rose to $30.95.
  • ↑Dividend up 11.8% to $0.38/share; $150M share repurchase boosts returns.
  • ↓Loan portfolio grew only 0.2% QoQ to $20.2B, below expectations.
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The case for & against

Bull & Bear analysis

Bearish

Cathay General Bancorp (NASDAQ: CATY) is a financial institution focused on serving the Asian American community while offering a range of commercial banking services. The bank is characterized by its diversified loan portfolio, particularly in commercial real estate (CRE) and specialized lending services. It aims to maintain a strong market presence amidst growing competitive pressures while emphasizing prudent risk management and shareholder returns.

Bull says

  • ↑Q1 net income $86.9M, EPS $1.29; tangible book value rose to $30.95.
  • ↑Dividend up 11.8% to $0.38/share; $150M share repurchase boosts returns.
  • ↑Management forecasts 3.5%–4.5% loan growth via relationship-driven lending.
  • ↑Tier 1 capital ratio of 10.91% ensures strong capital adequacy.
  • ↑High earnings yield and book-to-price ratio (~1.44) suggest undervaluation.
  • ↑Low volatility profile and positive momentum support risk-averse appeal.

Bear says

  • ↓Loan portfolio grew only 0.2% QoQ to $20.2B, below expectations.
  • ↓Classified loans rose to $432M; credit loss provisions increased by $13M.
  • ↓Negative profitability and growth metrics indicate margin pressure.
  • ↓Weak analyst revisions and low institutional ownership signal lukewarm sentiment.
  • ↓Deposit competition and geopolitical headwinds pressure NIM expansion.
  • ↓Larger banks’ aggressive strategies threaten CATY’s niche market moat.

Investment themes with CATY

High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM
Regional Banks↑ +0.50%

FLG · TCBI · ZION

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 04-24-2026neutral

Transcript signals

Bull points

  • We delivered solid financial performance in the first quarter, reporting net income of 86.9 million and delivered earnings per share of the dollar and 29 cents.
  • We also delivered another quarter of net interest margin expansion, driven by disciplined deposit cost management in a competitive environment.
  • Our efficiency ratio improved to 40.4%, down 100 basis points from the prior quarter, supported by ongoing expense management and steady core performance.

Bear points

  • Loan growth was softer than we anticipated, but this reflects our disciplined underwriting approach.
  • we saw some increased paydowns in our construction loan portfolio
  • we think there'll be a marginal benefit from that
Read full transcript analysis ›