CATY

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Net interest margin (NIM) expanded to 3.48%, marking the eighth consecutive quarter of growth driven by disciplined funding cost management in a competitive environment. Management executed a strategic securities repositioning, selling $160 million of lower-yielding assets to reinvest at significantly higher yields, targeting improved future recurring earnings. Loan growth momentum accelerated toward the end of the quarter, supported by healthy client activity and a solid pipeline in commercial real estate (CRE) and C&I segments. Credit quality remains a core strength, characterized by declining net charge-offs and a reduction in both criticized and classified asset levels. The bank is actively optimizing its capital structure by redeeming high-cost trust preferred securities and increasing share repurchase authorizations to $200 million. Efficiency ratios were impacted by higher low-income housing tax credit amortization, though adjusted metrics remained stable, reflecting consistent operational discipline. Full-year loan growth is projected between 3.5% and 4.5%, supported by strong booking activity observed in the first three weeks of July. The deposit growth outlook was revised downward to 3% to 4% due to slower-than-expected accumulation during the first half of the year. NIM and net interest income (NII) guidance now incorporates a 25-basis-point interest rate hike assumption for September. Management remains confident in achieving a full-year NIM target of 3.4% to 3.5%, despite anticipated pressure from $3.3 billion to $3.4 billion in maturing CDs. The effective tax rate is expected to settle between 21% and 22% for the full year, reflecting updated earnings and tax credit amortization schedules. Recognized a $10.6 million loss on the sale of available-for-sale (AFS) securities as part of a deliberate strategy to exit lower-yielding positions. Amortization expense for low-income housing tax partnerships increased by $3.1 million following updated fund financial statements. A $10 million increase in the allowance for loan losses was primarily driven by loan growth ($5.5 million) and specific reserves, rather than a shift in economic outlook. Regulatory capital reporting treatments were reviewed and updated, resulting in a 20-basis-point increase to risk-based capital ratios. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Core NIM, excluding interest recoveries and prepayment penalties, stood at 3.44% for the quarter. Management expects continued but narrowing room for expansion, noting that while CD rollovers will create pressure, higher origination rates in CRE and mortgage provide a tailwind. The Q2 trade involved selling securities yielding 3.15% and reinvesting at 5.31%, resulting in an earn-back period of approximately 3.5 years. Combined with Q1 activities, the bank expects an $8.5 million annual income lift, representing a 3-basis-point benefit to NIM going forward. The bank saw $200 million in new bookings during the first three weeks of July, primarily driven by CRE refinancing in the apartment and multifamily sectors. Management characterized the Q2 acceleration as a 'pull-through' of activity that was delayed during a flatter first quarter. The increase in repurchase authorization to $200 million is intended to provide 'dry powder' for opportunistic buying, particularly in the first quarter of the year. Management expects the pace of buybacks for the remainder of 2026 to mirror the activity levels seen in the previous year.

This article first appeared on GuruFocus. Net Income: $92.2 million or $1.37 per diluted share. Net Interest Income: Increased to $200.9 million. Net Interest Margin: Expanded to 3.48%. Efficiency Ratio: Reported at 41.5%, adjusted at 37.0%. Share Repurchase: 242,000 shares repurchased at an average cost of $58 per share. Loan Growth: Period-end loans of $20.6 billion, a 2.2% increase linked quarter. Deposit Growth: Period-end deposits increased 1.9% linked quarter to $21.1 billion. Non-Interest Income: Increased by $0.7 million from the prior quarter. Non-Interest Expense: Increased to $92.3 million from $86.7 million last quarter. Net Charge-Offs: Declined to $1.8 million. Allowance for Loan Loss: Increased by $10 million to $219 million or 1.06% of gross loans. Capital Levels: Strong and well above regulatory minimum requirements. Full-Year Loan Growth Outlook: Expected in the 3.5% to 4.5% range. Full-Year Deposit Growth Outlook: Revised to 3% to 4%. Effective Tax Rate Outlook: Expected between 21% and 22% for the year. Warning! GuruFocus has detected 6 Warning Signs with TSLA. Is CATY fairly valued? Test your thesis with our free DCF calculator. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cathay General Bancorp (NASDAQ:CATY) reported strong financial performance with a net income of $92.2 million or $1.37 per diluted share. Net interest income increased to $200.9 million, and net interest margin expanded to 3.48%, marking the eighth consecutive quarter of NIM expansion. Credit quality remains strong with net charge-offs declining and improved levels of criticized and classified assets. The company completed a securities repositioning that, despite a $10.6 million loss, is expected to improve future earnings and support margin expansion. Capital management remains robust, with a strong capital position allowing for growth support, shareholder returns, and funding profile optimization. The securities repositioning resulted in a $10.6 million loss on sale, impacting short-term financial results. The efficiency ratio increased to 41.5% from 40.4% last quarter, primarily due to higher low-income housing tax credit amortization. Deposit growth was slower than expected in the first half of the year, leading to a revised full-year deposit growth outlook of 3% to 4%. There is pressure on deposit costs due to competition, with $3.3 billion to $3.4 billion of CDs rolling off at a 3.54% rate, potentially leading to higher replacement costs. Non-interest expense increased to $92.3 million this quarter from $86.7 million last quarter, driven by higher amortization expense on low-income housing tax partnerships. Q: Can you discuss the factors influencing the net interest margin (NIM) range of 3.4% to 3.5%? A: Albert Wang, CFO, explained that loan yields dropped slightly due to lower interest recoveries and prepayment penalties. However, deposit costs were reduced by 10 basis points, largely due to a favorable deposit mix. Despite upcoming pressures from maturing CDs, there is still room for NIM expansion, especially if a rate hike occurs in September. Q: Is there an expectation for NIM to face pressure and settle in the middle of the projected range? A: Albert Wang noted that on a core basis, NIM was at 3.44% last quarter. While there is potential for improvement, the expansion will likely become smaller over time. The company remains confident in staying within the projected range. Q: How should we view the non-interest-bearing deposit mix going forward? A: Albert Wang stated that while the non-interest-bearing deposit mix increased, future projections assume it will remain stable. Recent deposit growth has been distributed across money market, savings, and time deposits. Q: What was the yield pickup from the recent securities loss trade? A: Albert Wang reported that the second-quarter trade involved selling securities yielding 3.15% and reinvesting at 5.31%, resulting in a three-and-a-half-year earn-back period. This trade, along with a previous one, is expected to provide an annual income lift of $8.5 million. Q: Can you provide insights into the loan outlook and pipeline for the third quarter? A: Chang Liu, CEO, mentioned that the second quarter saw improved loan activity, particularly in C&I and CRE. The third quarter has started strong, with $200 million in loan bookings, primarily in CRE, indicating continued growth momentum. Q: What factors contributed to the increase in the allowance for loan losses? A: Albert Wang explained that the $10 million increase was due to $5.5 million from loan growth, $3 million from specific reserves adjustments, and $1.5 million from housekeeping on Q factors. Q: What is the outlook for capital return and share buybacks? A: Albert Wang noted that buyback activity was lighter due to regulatory approval timing. The company plans to increase purchase activity and has upsized the buyback authorization to ensure dry powder for potential opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Cathay General Bancorp? Here are five stocks we like better. Earnings and margin improved: Cathay General Bancorp reported Q2 2026 net income of $92.2 million, or $1.37 per share, as net interest income rose to $200.9 million and net interest margin expanded to 3.48% for the eighth straight quarter of improvement. Loan and deposit trends strengthened: Period-end loans grew 2.2% and deposits rose 1.9% from the prior quarter, with management saying loan activity accelerated in June and July, especially in commercial real estate and C&I lending. Capital actions and outlook remain constructive: The bank continued securities repositioning to boost future earnings, raised its share repurchase authorization to $200 million, and reaffirmed full-year loan growth guidance of 3.5% to 4.5% while trimming deposit growth expectations to 3% to 4%. Regional Bank Buybacks: 5 Institutions Making Big Moves Cathay General Bancorp (NASDAQ:CATY) reported higher second-quarter 2026 earnings as net interest income rose and the bank continued to expand its net interest margin, while management pointed to improved loan and deposit momentum entering the second half of the year. President and Chief Executive Officer Chang Liu said the company generated net income of $92.2 million, or $1.37 per diluted share, for the quarter. Net interest income increased to $200.9 million, while net interest margin expanded to 3.48%, marking what Liu described as the company’s eighth consecutive quarter of margin expansion. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks “This reflects our continued focus on managing funding costs in a competitive environment,” Liu said on the call. Executive Vice President and Chief Financial Officer Al Wang said net income rose 6% from the prior quarter, driven by higher net interest income and a lower provision for credit losses, partially offset by higher non-interest expense and income tax expense. → 3 Photonics Companies Making Quantum Tech Possible Wang said period-end loans totaled $20.6 billion, up 2.2% from the prior quarter, while period-end deposits increased 1.9% to $21.1 billion. Average loan balances increased 1% on an annualized linked-quarter basis, and average deposits rose 2% on the same basis. Deposit growth remained modest year to date, increasing $167 million, or 0.8%, but Wang said quarterly deposit growth accelerated “meaningfully” during May and June. Non-maturity deposits increased while time deposits declined, resulting in what management described as a more favorable funding mix and lower concentration in certificates of deposit. The uninsured deposit ratio remained stable at 45%. → AI Data Centers Need Power, and These 2 Industrials Are Cashing In During the question-and-answer portion of the call, Liu said the company saw stronger loan activity after a slower first quarter. He said second-quarter loan growth reflected more commercial and industrial activity, slight growth in residential mortgage and stronger commercial real estate activity, while construction declined somewhat. “Looking ahead in Q3, honestly, I think we see pretty strong numbers so far,” Liu said, adding that the company had seen $200 million in loan bookings during the first three weeks of July, with much of that tied to commercial real estate, including apartment refinancing, multifamily and retail activity. Cathay maintained its full-year net interest margin target of 3.4% to 3.5%, with Wang noting that the outlook now assumes a 25-basis-point rate increase in September. He said net interest margin expanded five basis points from the prior quarter, reflecting lower funding costs, partially offset by narrower loan spreads. In response to a question from David Chiaverini of Jefferies, Wang said reported loan yields were affected by interest recoveries and prepayment penalties. Excluding those items, he said loan yields were roughly flat. He added that the company saw a 10-basis-point reduction in deposit costs during the quarter, helped by both pricing and mix. Wang cautioned that deposit pricing remains competitive. He said the company has approximately $3.3 billion to $3.4 billion of CDs rolling off at a 3.54% rate and expects replacement rates to be slightly higher. Still, he said management believes there is room for margin expansion in the near term, though that room is narrowing. Wang also said the company’s non-interest-bearing deposit mix, roughly 17%, is projected to remain about where it ended the second quarter. Through the first 21 days of July, he said Cathay had grown deposits by $240 million, distributed mainly among money market, savings and time deposits. Management highlighted another securities repositioning during the quarter as part of balance sheet optimization efforts. Liu said the transaction resulted in a $10.6 million loss on sale but is expected to improve future earnings and support margin expansion. Wang said the company sold $160 million of lower-yielding securities in June and reinvested the proceeds at significantly higher yields, with an expected earn-back period of less than 3.5 years. In response to a question from Matthew Clark of Piper Sandler, Wang said the securities sold in the second quarter were yielding about 3.15%, while the company reinvested about $152 million at approximately 5.31%. For the year to date, Cathay has sold $371.7 million of lower-yielding securities and reinvested $341.8 million into higher-yielding investments. Wang said the combined repositioning activities have an aggregate earn-back period of approximately 3.1 years and were executed without a meaningful change to the portfolio’s overall duration or credit profile. The available-for-sale securities portfolio remains defensively positioned, Wang said, with a duration of approximately two years, about two-thirds of projected cash flow expected to return within 12 months and more than 95% backed by U.S. government agencies. Non-interest expense increased to $92.3 million from $86.7 million in the prior quarter. Wang said the increase was primarily driven by $3.1 million of higher amortization expense tied to low-income housing tax partnerships after receiving updated fund financial statements. Excluding that and other non-core expenses, adjusted non-interest expense was $81.9 million, and the adjusted efficiency ratio was 37.0%, compared with 36.9% in the prior quarter. Credit quality remained strong, management said. Net charge-offs declined to $1.8 million, classified loans decreased by $10 million and criticized loans improved by $103 million during the quarter. The allowance for loan losses increased $10 million to $219 million, or 1.06% of gross loans, primarily reflecting loan growth. In response to Gary Tenner of D.A. Davidson, Wang said roughly $5.5 million of the allowance increase was due to loan growth, about $3 million related to specific reserves and another $1.5 million came from an adjustment to a qualitative factor. Liu said capital management remains a key part of the company’s strategy. During the quarter, Cathay repurchased 242,000 shares at an average cost of $58 per share. The board also approved an increase in the share repurchase authorization from $150 million to $200 million, subject to regulatory approval. Wang said buyback activity was lighter during the quarter in part because regulatory approval came later in the period. He said the company expects to increase repurchase activity through the rest of the year and maintain more capacity heading into the first quarter than in prior years. Cathay also plans to redeem approximately $54.1 million of its $119.1 million in outstanding trust-preferred securities, targeting its highest-cost issuances. Management said the move is expected to reduce funding costs and improve recurring earnings. For the full year, Wang said Cathay continues to expect loan growth of 3.5% to 4.5%. The company lowered its deposit growth outlook to 3% to 4%, citing slower-than-expected first-half growth. Cathay maintained its adjusted non-interest expense growth outlook of 3.5% to 4.5% and now expects an effective tax rate between 21% and 22%. “Overall, we’re pleased with our performance for the first half of the year,” Liu said, adding that the company is entering the third quarter with “good momentum” while maintaining a disciplined approach to growth, capital and expenses. Cathay General Bancorp is a bank holding company headquartered in Los Angeles, California, trading on NASDAQ under the symbol CATY. Its principal subsidiary, Cathay Bank, provides a full suite of financial services to commercial, institutional and retail clients. As a community-focused institution, the company emphasizes relationship banking and tailored solutions for businesses and individuals. Founded in 1962 by a group of Chinese American entrepreneurs, Cathay has expanded from a single branch operation in downtown Los Angeles into one of the largest Asian-American banks in the United States. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Cathay General Bancorp Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

LOS ANGELES, July 22, 2026--(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 June 30, 2026. The Company reported net income of $92.2 million, or $1.37 per diluted share, for the second quarter of 2026 compared to $86.9 million, or $1.29 per diluted share for the first quarter of 2026. "We delivered strong second quarter results, with higher earnings driven by continued net interest margin expansion and disciplined execution across the franchise. Improved profitability reflects the strength of our relationships and the resilience of our business model," said Chang M. Liu, President and Chief Executive Officer of the Company. "We remain focused on maintaining strong credit quality, prudently managing the balance sheet, and supporting the financial needs of our clients. We believe these fundamentals, along with thoughtful capital management, will continue to support long-term value creation for our shareholders." FINANCIAL PERFORMANCE SECOND QUARTER HIGHLIGHTS Net interest margin increased to 3.48% during the second quarter from 3.43% in the first quarter of 2026. Total loans, excluding loans held for sale, increased to $20.62 billion, or 2.21%, from $20.17 billion in the first quarter of 2026. Total deposits increased $386.0 million, or 1.87%, to $21.06 billion in the second quarter of 2026. The Company’s Board approved an increase to its existing share repurchase authorization from $150 million to $200 million, with no change to the current authorization expiration date that is subject to regulatory approval which is currently pending1/2/, and approved the redemption of $54.1 million of trust preferred securities, representing approximately 45% of the Company's $119.1 million of outstanding trust preferred securities2/. INCOME STATEMENT REVIEWSECOND QUARTER 2026 COMPARED TO THE FIRST QUARTER 2026 Net income for the quarter ended June 30, 2026, was $92.2 million, an increase of $5.3 million, or 6.1%, compared to net income of $86.9 million for the first quarter of 2026. Diluted earnings per share for the second quarter of 2026 was $1.37 per share compared to $1.29 per share for the first quarter of 2026. Return on average stockholders’ equity was 12.21% and return on average assets was 1.52% for the quarter ended June 30, 2026, compared to a return on average stockholders’ equity of 11.88% and a return on average assets of 1.47% in the first quarter of 2026. Net interest income before provision for credit losses Net interest income before provision for credit losses increased $6.7 million, or 3.5%, to $200.9 million during the second quarter of 2026, compared to $194.2 million in the first quarter of 2026. The increase was due primarily to an increase in interest income from loans and securities and a decrease in deposit interest expense. The net interest margin was 3.48% for the second quarter of 2026 compared to 3.43% for the first quarter of 2026. 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%. In comparison, for the first quarter of 2026, the yield on average interest-earning assets was 5.70%, the cost of funds on average interest-bearing liabilities was 2.99%, and the cost of average interest-bearing deposits was 2.96%. The decrease in the cost of funds on average interest-bearing liabilities resulted mainly from lower interest rates on deposits driven by the lower repricing of maturing time deposits in the second quarter. The decrease in the yield on average interest-earning assets resulted mainly from lower 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 2.77% for the second quarter of 2026, compared to 2.71% for the first quarter of 2026. Provision for credit losses The Company recorded a provision for credit losses of $11.2 million in the second quarter of 2026 compared to $18.2 million in the first quarter of 2026. As of June 30, 2026, the allowance for loan losses increased by $10.1 million to $218.9 million, or 1.06% of gross loans, compared to $208.8 million, or 1.03% of gross loans as of March 31, 2026. The following table sets forth the charge-offs and recoveries for the periods indicated: 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 $21.4 million for the second quarter of 2026, an increase of $0.7 million, or 3.4%, compared to $20.7 million for the first quarter of 2026. The increase was primarily due to a $5.1 million reduction in losses related to investment securities repositioning activities and an increase of $0.8 million in wealth management fees partially offset by a decrease of $5.7 million in unrealized gains from equity securities, compared to the first quarter of 2026. Non-interest expense Non-interest expense increased $5.6 million, or 6.5%, to $92.3 million in the second quarter of 2026 compared to $86.7 million in the first quarter of 2026. The increase in non-interest expense in the second quarter of 2026 was primarily due to an increase of $3.1 million in amortization expense of investments of low income housing and alternative energy partnerships, an increase of $1.2 million in salaries and employee benefits, and an increase of $0.9 million in director fees offset, in part, by a decrease of $1.2 million in other real estate owned expense, when compared to the first quarter of 2026. The efficiency ratio, defined as non-interest expense divided by the sum of net interest income before provision for loan losses plus non-interest income, was 41.53% in the second quarter of 2026 compared to 40.35% for the first quarter of 2026. Income taxes The effective tax rate for the second quarter of 2026 was 22.35% compared to 20.98% for the first quarter of 2026. The effective tax rate for the second quarter of 2026 and first quarter of 2026 includes the impact of low-income housing tax credits. BALANCE SHEET REVIEW Gross loans, excluding loans held for sale, were $20.62 billion as of June 30, 2026, an increase of $446.7 million, or 2.2%, from $20.17 billion as of March 31, 2026. The increase was primarily due to an increase of $242.4 million, or 7.4%, in commercial loans, $190.6 million, or 1.8%, in commercial real estate loans, $53.6 million, or 0.9%, in residential real estate loans offset, in part, by a decrease of $40.7 million, or 14.1%, in construction loans. The loan balances and composition as of June 30, 2026, compared to March 31, 2026, and June 30, 2025, are presented below: Total deposits were $21.06 billion as of June 30, 2026, an increase of $386.0 million, or 1.9%, from $20.68 billion as of March 31, 2026. The deposit balances and composition as of June 30, 2026, compared to March 31, 2026, and June 30, 2025, are presented below: ASSET QUALITY REVIEW As of June 30, 2026, total non-accrual loans were $111.7 million, an increase of $22.7 million, or 25.5%, from $89.0 million as of March 31, 2026. The allowance for loan losses was $218.9 million and the allowance for off-balance sheet unfunded credit commitments was $14.9 million as of June 30, 2026. The 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 195.97% of non-performing loans as of June 30, 2026. The comparable ratios were 1.03% of period-end gross loans, and 220.95% of non-performing loans as of March 31, 2026. The changes in non-performing assets as of June 30, 2026, compared to March 31, 2026, and June 30, 2025, are presented below: The ratio of non-performing assets to total assets was 0.59% as of June 30, 2026, compared to 0.53% as of March 31, 2026. Total non-performing assets increased $17.5 million, or 13.7%, to $145.4 million as of June 30, 2026, compared to $127.9 million as of March 31, 2026, primarily due to an increase of $22.7 million, or 25.5%, in non-accrual loans and $0.2 million, or 0.7%, in other real estate owned, offset, in part, by a decrease of $5.5 million, or 100.0% in accruing loans past due 90 days or more. CAPITAL ADEQUACY REVIEW As of June 30, 2026, the Company’s Tier 1 risk-based capital ratio of 13.70%, total risk-based capital ratio of 15.47%, and Tier 1 leverage capital ratio of 11.28%, 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 March 31, 2026, the Company’s Tier 1 risk-based capital ratio was 13.47%, total risk-based capital ratio was 15.20%, and Tier 1 leverage capital ratio was 11.15%. YEAR-TO-DATE REVIEW Net income for the six months ending June 30, 2026, was $179.1 million, an increase of $32.1 million, or 21.8%, compared to net income of $147.0 million for the same period a year ago. Diluted earnings per share for the six months ending June 30, 2026 was $2.66 per share compared to $2.09 per share for the same period a year ago. The net interest margin for the six months ended June 30, 2026, was 3.45% compared to 3.26% for the same period a year ago. Return on average stockholders’ equity was 12.05% and return on average assets was 1.50% for the six months ended June 30, 2026, compared to a return on average stockholders’ equity of 10.28% and a return on average assets of 1.27% for the same period a year ago. The efficiency ratio for the six months ended June 30, 2026, was 40.95% compared to 45.46% for the same period a year ago. CONFERENCE CALL Cathay General Bancorp will host a conference call to discuss its second quarter 2026 financial results this afternoon, Wednesday, July 22, 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 10210553. 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 operate 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, and Taipei. 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 loan 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 BANCORPGAAP to NON-GAAP RECONCILIATIONSELECTED 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. 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. 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 and the FDIC special assessment. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260722612336/en/ Contacts Albert J. Wang(626) 279-3695

Cathay General (CATY) came out with quarterly earnings of $1.37 per share, beating the Zacks Consensus Estimate of $1.33 per share. This compares to earnings of $1.1 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.01%. A quarter ago, it was expected that this holding company for Cathay Bank would post earnings of $1.19 per share when it actually produced earnings of $1.29, delivering a surprise of +8.4%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Cathay, which belongs to the Zacks Banks - West industry, posted revenues of $222.3 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.89%. This compares to year-ago revenues of $196.61 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Cathay shares have added about 28.3% since the beginning of the year versus the S&P 500's gain of 9.7%. While Cathay has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Cathay was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.34 on $223.68 million in revenues for the coming quarter and $5.42 on $882.63 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Sierra Bancorp (BSRR), has yet to report results for the quarter ended June 2026. This parent company of Bank of the Sierra is expected to post quarterly earnings of $0.89 per share in its upcoming report, which represents a year-over-year change of +14.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Sierra Bancorp's revenues are expected to be $39.3 million, up 0.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cathay General Bancorp (CATY) : Free Stock Analysis Report Sierra Bancorp (BSRR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

RBB (RBB) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.32%. A quarter ago, it was expected that this bank holding company would post earnings of $0.45 per share when it actually produced earnings of $0.66, delivering a surprise of +46.67%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. RBB, which belongs to the Zacks Banks - West industry, posted revenues of $33.1 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.15%. This compares to year-ago revenues of $35.81 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. RBB shares have added about 31.1% since the beginning of the year versus the S&P 500's gain of 8.9%. While RBB has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for RBB was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.57 on $34.2 million in revenues for the coming quarter and $2.36 on $136.68 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Cathay General (CATY), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 22. This holding company for Cathay Bank is expected to post quarterly earnings of $1.33 per share in its upcoming report, which represents a year-over-year change of +20.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Cathay General's revenues are expected to be $218.18 million, up 11% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RBB Bancorp (RBB) : Free Stock Analysis Report Cathay General Bancorp (CATY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Cathay General Bancorp stock has almost doubled over the past five years, and after that kind of run the current checks suggest it no longer looks obviously cheap or clearly expensive compared with its fundamentals. The share price return of 95.8% over five years points to investors already baking in a meaningful improvement in the bank's prospects. Recent revenue momentum can support the current valuation, but ongoing concerns about longer term growth may limit how much further investors are willing to pay up for the stock. The valuation checks are mixed, with Cathay General Bancorp scoring 4 out of 6, which points to a fair rather than clear bargain price. The issue now is whether Cathay General Bancorp's current share price already reflects its medium term growth profile or still leaves some room for upside in the valuation. Cathay General Bancorp delivered 33.7% returns over the last year. See how this stacks up to the rest of the Banks industry. The P/E ratio is a useful way to think about Cathay General Bancorp because earnings are a key driver for bank valuations. The stock currently trades on a P/E of 12.4x, which is slightly above the Banks industry average of 12.2x but below the peer group average of 14.0x. As a result, the market is not putting a clear premium or discount on the shares. A more tailored benchmark suggests a fair P/E for Cathay General Bancorp of about 13.0x, taking into account its growth outlook, profitability, size and risk profile. That leaves the current multiple modestly below this fair ratio. This is consistent with the idea that, despite the recent Q1 beat and share price strength, the stock is priced in a middle ground rather than at an aggressive valuation. On the P/E multiple, Cathay General Bancorp appears roughly fairly valued with only a small discount to its modelled fair ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Cathay General Bancorp pick up where the valuation puzzle leaves off by spelling out which future outcomes for Cathay General Bancorp's growth, margins and earnings would need to hold for the stock to be worth materially more or less than today's price. Each narrative presents a fair value as a thesis about the business that can be revisited over time rather than just a single snapshot. Community views on Cathay General Bancorp are split between a premium-quality growth story and a stock that already bakes in too much optimism. Bull case: 18% undervalued Read the full Bull Case to see why Cathay General Bancorp could be undervalued Bear case: 31% overvalued Read the full Bear Case to see why Cathay General Bancorp could be overvalued Do you think there's more to the story for Cathay General Bancorp? Head over to our Community to see what others are saying! For Cathay General Bancorp, the current P/E suggests the stock sits in an about right zone where it is neither a clear bargain nor obviously stretched. The mixed valuation checks imply the market is already pricing in a reasonable, but not heroic, outlook for earnings. From here, what matters most is whether the bank can sustain the profitability and growth profile that justifies staying around this earnings multiple, or whether any disappointment on those fronts prompts investors to reassess how much they are willing to pay for the stock. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CATY. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]