Cathay General Bancorp
- Open
- 63.52
- Day high
- 63.53
- Day low
- 62.23
- Prev close
- 63.72
- Volume
- 621K
- Mkt cap
- $4.2B
- P/E (TTM)
- 12.9
- EPS (TTM)
- $4.88
- P/B
- 1.4
- P/S
- 3.0
- Yield
- 2.30%
- Per share
- $1.44
- ▼Insiders net selling -$2.4M over the last 3 months (0 open-market buys, 5 sales)
- 🏛Institutions mixed (13F)
Cathay General Bancorp (CATY) is a Financial Services company listed on NASDAQ. The stock is up 30% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 5 sales (SEC Form 4). Drillr has 1 published research article covering CATY.
Cathay General Bancorp (CATY) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CATY earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 22, 2026 | $1.19 | $1.29 | +8.4% | $213M | +0.8% |
| Jan 22, 2026 | $1.20 | $1.33 | +10.8% | $223M | +6.1% |
| Oct 21, 2025 | $1.15 | $1.13 | -1.7% | $211M | +3.9% |
| Jul 22, 2025 | $1.10 | $1.10 | +0.0% | $197M | -2.8% |
| Jan 22, 2025 | $1.10 | $1.12 | +1.8% | $186M | +1.9% |
| Oct 21, 2024 | $0.95 | $0.94 | -1.1% | $190M | +4.1% |
| Jul 22, 2024 | $0.94 | $0.92 | -2.1% | $177M | -1.2% |
| Jan 24, 2024 | $1.06 | $1.13 | +6.6% | $205M | +3.7% |
| Jul 24, 2023 | $1.13 | $1.28 | +13.3% | $205M | +4.2% |
| Apr 20, 2023 | $1.25 | $1.32 | +5.6% | $207M | -0.4% |
| Jan 25, 2023 | $1.37 | $1.33 | -2.9% | $214M | -1.7% |
| Jul 25, 2022 | $1.17 | $1.18 | +0.9% | $190M | +3.1% |
CATY insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 30, 2026 | SUN ALBERTofficer: EVP, Chief Credit Officer | Grant | 3,102 | — |
| Jun 30, 2026 | Deen Diana G.officer: EVP, Chief Risk Officer | Grant | 3,400 | — |
| Jun 30, 2026 | SUN ALBERTofficer: EVP, Chief Credit Officer | Grant | 1,551 | — |
| Jun 30, 2026 | Deen Diana G.officer: EVP, Chief Risk Officer | Grant | 1,700 | — |
| Jun 30, 2026 | Lo Thomas M.officer: EVP, Chief Admin Officer | Grant | 1,611 | — |
| Jun 30, 2026 | CHENG DUNSON Kdirector, officer: Executive Chairman | Grant | 4,875 | — |
| Jun 30, 2026 | CHENG DUNSON Kdirector, officer: Executive Chairman | Grant | 9,186 | — |
| Jun 30, 2026 | Wang Albert Jen-Wenofficer: EVP, Chief Financial Officer | Grant | 1,567 | — |
| Jun 30, 2026 | SUN ALBERTofficer: EVP, Chief Credit Officer | Grant | 1,646 | — |
| Jun 30, 2026 | Wang Albert Jen-Wenofficer: EVP, Chief Financial Officer | Grant | 3,134 | — |
| Jun 30, 2026 | CHENG DUNSON Kdirector, officer: Executive Chairman | Grant | 4,593 | — |
| Jun 30, 2026 | Chan May K.officer: SVP, General Counsel | Grant | 886 | — |
| Jun 30, 2026 | Wang Albert Jen-Wenofficer: EVP, Chief Financial Officer | Grant | 1,663 | — |
| Jun 30, 2026 | Wang Albert Jen-Wenofficer: EVP, Chief Financial Officer | Grant | 5,640 | — |
| Jun 30, 2026 | Liu Changdirector, officer: President & CEO | Grant | 17,727 | — |
Source: CATY SEC Form 4 filings, latest Jun 30, 2026. For informational purposes only — not investment advice.
See the full CATY insider & 13F page →Cathay General Bancorp company profile
Overview
Cathay General Bancorp (NASDAQ:CATY) is a regional bank holding company founded in 1962 and headquartered in Los Angeles, California. The company operates through its primary subsidiary, Cathay Bank, which has established itself as a leading financial institution serving the Asian-American community and small to medium-sized businesses across the United States. With 69 branches spanning multiple states including California, New York, Washington, Illinois, Texas, and several others, plus international presence in Hong Kong and representative offices in Beijing, Taipei, and Shanghai, Cathay has built a specialized niche in cross-border banking and serving the Chinese-American market segment.
Business
Cathay General Bancorp operates as a traditional regional commercial bank, providing comprehensive banking services to individuals, professionals, and small to medium-sized businesses. The company's core business revolves around commercial banking, which encompasses accepting deposits and originating loans. The bank's primary revenue-generating activities include: 1. **Loan Portfolio Operations** - Cathay originates and services various types of loans including commercial real estate loans (which represent the largest segment), commercial and industrial loans, residential mortgages, construction loans, Small Business Administration (SBA) loans, and consumer installment loans. Commercial real estate lending forms the backbone of their loan portfolio, with an average loan-to-value ratio of approximately 49%. 2. **Deposit Services** - The bank offers traditional deposit products including checking accounts, savings accounts, money market accounts, certificates of deposit (CDs), and individual retirement accounts. These deposits provide the primary funding source for the bank's lending operations. 3. **Ancillary Banking Services** - Cathay provides trade financing, letters of credit, wire transfers, foreign exchange services, treasury management, and investment services. The bank also offers securities and insurance products through third-party partnerships. The company operates within the regional banking sector, which sits between large national banks and smaller community banks. Regional banks typically focus on specific geographic markets or demographic segments, allowing them to develop specialized expertise and relationships. Cathay's particular specialization lies in serving the Asian-American community and facilitating cross-border commerce between the United States and Asia, particularly China.
Revenue model
Cathay General Bancorp generates revenue primarily through net interest income - the difference between interest earned on loans and investments and interest paid on deposits and borrowings. This traditional banking model relies on the interest rate spread to generate profits. The bank's revenue streams include: 1. **Interest Income from Loans** - The largest revenue source comes from interest payments on the bank's loan portfolio, which totaled approximately $19.5 billion as of Q4 2024. Commercial real estate loans, which comprise the largest segment, typically carry higher interest rates than residential mortgages. 2. **Interest Income from Securities** - The bank maintains an investment portfolio of government and agency securities that provides additional interest income, though this represents a smaller portion of total revenue. 3. **Fee Income** - Non-interest income includes fees from deposit services, loan origination fees, trade finance fees, foreign exchange services, and wealth management services. The bank's profitability is significantly influenced by several key factors: **Margin-Enhancing Factors:** Rising interest rates generally benefit the bank as loan rates adjust faster than deposit costs, particularly given that 63% of their loan portfolio consists of fixed-rate and hybrid loans. The bank's specialization in commercial real estate lending typically commands higher margins than residential lending. Strong credit quality with non-accrual loans at only 0.83% of total loans reduces provision expenses. **Margin-Pressuring Factors:** Intense competition for deposits, particularly in high-cost markets like California and New York, drives up funding costs. The bank's significant exposure to uninsured deposits (43.8% of total deposits) creates pressure to offer competitive rates to retain large depositors. Economic downturns affecting the commercial real estate market could increase credit losses and reduce loan demand. Regulatory compliance costs associated with banking operations also pressure margins. The bank's customers are primarily small to medium-sized businesses, real estate investors, and affluent individuals within the Asian-American community, who pay market-rate interest on loans and maintain deposits that fund the bank's lending operations.
Competitive moat
Cathay General Bancorp possesses a moderate but defensible moat built primarily around its specialized market positioning and cultural expertise rather than traditional competitive advantages like scale or technology. The bank's primary competitive advantages include: 1. **Cultural and Linguistic Specialization** - Cathay has developed deep expertise in serving the Asian-American community, particularly Chinese-Americans, with bilingual staff and culturally-sensitive banking services. This creates customer loyalty and reduces price sensitivity, as customers value the specialized service and cultural understanding. 2. **Cross-Border Banking Expertise** - The bank's presence in key Asian markets through its Hong Kong branch and representative offices in Beijing, Taipei, and Shanghai provides unique capabilities for facilitating international trade and commerce. This specialization is difficult for larger banks to replicate without significant investment. 3. **Geographic Concentration in High-Value Markets** - With significant presence in California and New York, Cathay operates in markets with large, affluent Asian-American populations and high commercial real estate values, providing access to profitable lending opportunities. 4. **Relationship-Based Banking Model** - The bank's focus on relationship banking, particularly in commercial real estate where personal guarantees are common, creates switching costs and customer stickiness. However, the bank's moat faces several challenges: **Competitive Threats:** Larger banks with greater resources are increasingly targeting the Asian-American market segment. Fintech companies and digital banks are offering more convenient services that could erode traditional relationship advantages. The commercial real estate lending market is highly competitive with numerous regional and national players. **Structural Limitations:** The bank's relatively small size (approximately $23 billion in assets) limits its ability to serve larger commercial clients and compete on pricing. Regulatory constraints on growth and capital requirements may limit expansion opportunities. The bank's geographic concentration, while providing market expertise, also creates vulnerability to regional economic downturns. Overall, while Cathay maintains a defensible niche, its moat is not particularly wide or durable against well-resourced competitors willing to invest in serving the same market segments.
Risks & safety
Cathay General Bancorp demonstrates a **moderate margin of safety** with solid fundamentals but some areas of concern typical of regional banks. **Overall Assessment:** The bank maintains adequate capital levels and liquidity, though faces typical regional banking risks around commercial real estate concentration and deposit stability. **Capital and Liquidity Position:** - Tier 1 leverage capital ratio of 10.82% provides solid regulatory buffer - Cash and short-term investments of $157 million with additional unused borrowing capacity - Debt-to-equity ratio of 8.0% indicates conservative leverage - Strong free cash flow generation of $326 million in 2024 **Credit Risk Metrics:** - Non-accrual loans at 0.83% of total loans remain manageable - Net charge-offs of $16.3 million in Q4 2024 (including one-time $12.2 million syndicated loan loss) - Classified loans of $380 million require monitoring but are real estate-secured - Commercial real estate concentration risk mitigated by 49% average loan-to-value ratio **Valuation Considerations:** - Price-to-earnings ratio of 10.6x appears reasonable for a regional bank - Price-to-book ratio of 1.19x suggests modest premium to tangible book value - Return on equity of 10.0% for 2024 indicates solid profitability **Key Risk Factors:** - Uninsured deposits of $8.6 billion (43.8% of total deposits) create funding stability risk - Commercial real estate concentration in cyclical markets - Interest rate sensitivity in changing rate environment
Recent development
Over the past several years, Cathay General Bancorp has focused on several key strategic initiatives while navigating a challenging operating environment marked by rising interest rates and regional banking sector volatility. **Capital Management and Shareholder Returns:** The bank has implemented an aggressive share repurchase program, buying back $35 million worth of shares quarterly through 2024. Management repurchased 506,651 shares at $47.10 per share in Q4 2024 alone and has indicated plans to potentially increase the buyback authorization from $125 million to $150 million in 2025, demonstrating confidence in the bank's capital position and future prospects. **Portfolio Optimization and Risk Management:** Cathay has been actively managing its loan portfolio composition, with commercial real estate loans representing the primary growth driver while the bank has reduced exposure to construction lending and maintained selectivity in commercial and industrial lending. The bank has strengthened its credit reserves proactively, adding $10 million to reserves in Q3 2024 as a precautionary measure and maintaining conservative underwriting standards with average loan-to-value ratios of 49% on commercial real estate. **Deposit Strategy and Funding Diversification:** Facing pressure from uninsured deposit concentrations, the bank has focused on growing core deposits, which increased $417 million in Q4 2024. Management has also been strategic about certificate of deposit pricing and terms, adjusting rates and maturities to manage funding costs while maintaining competitive positioning in key markets. **Operational Efficiency Initiatives:** The bank has been managing expense growth while investing in technology and compliance capabilities. Core noninterest expense guidance was increased to 4-5% in 2024, reflecting investments in operational infrastructure while maintaining focus on efficiency ratios. **Market Expansion Considerations:** While management has expressed openness to strategic merger and acquisition opportunities, they have maintained a disciplined approach, waiting for "viable candidates within their niche space" rather than pursuing growth for growth's sake. The bank continues to evaluate opportunities that would be accretive and strategically aligned with their specialized market positioning.
CATY company profile · for informational purposes only — not investment advice.
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