Cathay Bancorp | 8-K: FY2026 Q2 Revenue: USD 348.86 M

Revenue: As of FY2026 Q2, the actual value is USD 348.86 M.

EPS: As of FY2026 Q2, the actual value is USD 1.37, beating the estimate of USD 1.35.

EBIT: As of FY2026 Q2, the actual value is USD 120.59 M.

Net Income

Cathay General Bancorp reported net income of $92.2 million for the second quarter of 2026, marking a 6.1% increase from $86.9 million in the first quarter of 2026. The net income for the second quarter of 2025 was $77.5 million. For the six months ended June 30, 2026, net income was $179.1 million, an increase of 21.8% compared to $147.0 million for the same period in the prior year.

Net Interest Income Before Provision for Credit Losses

Net interest income before provision for credit losses increased by 3.5% to $200.9 million in the second quarter of 2026, up from $194.2 million in 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, which is lower than the $18.2 million recorded in the first quarter of 2026.

Non-Interest Income

Non-interest income for the second quarter of 2026 was $21.4 million, an increase of 3.4% from $20.7 million in the first quarter of 2026.

Non-Interest Expense

Non-interest expense increased by 6.5% to $92.3 million in the second quarter of 2026, compared to $86.7 million in the first quarter of 2026.

Efficiency Ratio

The efficiency ratio was 41.53% in the second quarter of 2026, compared to 40.35% for the first quarter of 2026. For the six months ended June 30, 2026, the efficiency ratio was 40.95%, an improvement from 45.46% for the same period a year ago.

Returns

Return on average assets was 1.52% for the second quarter of 2026, up from 1.47% in the first quarter of 2026. Return on average total stockholders’ equity was 12.21% for the second quarter of 2026, an increase from 11.88% in the first quarter of 2026. For the six months ended June 30, 2026, return on average stockholders’ equity was 12.05% (up from 10.28%), and return on average assets was 1.50% (up from 1.27%).

Net Interest Margin and Spread

The net interest margin increased to 3.48% in the second quarter of 2026 from 3.43% in the first quarter of 2026. The net interest spread was 2.77% for the second quarter of 2026, compared to 2.71% for the first quarter of 2026. For the six months ended June 30, 2026, the net interest margin was 3.45%, compared to 3.26% for the same period a year ago.

Total Loans

Gross loans, excluding loans held for sale, increased by $446.7 million (2.2%) to $20.62 billion as of June 30, 2026, from $20.17 billion as of March 31, 2026.

Total Deposits

Total deposits increased by $386.0 million (1.9%) to $21.06 billion as of June 30, 2026, from $20.68 billion as of March 31, 2026.

Allowance for Loan Losses

The allowance for loan losses increased by $10.1 million to $218.9 million as of June 30, 2026, representing 1.06% of gross loans, compared to $208.8 million (1.03% of gross loans) as of March 31, 2026.

Non-Accrual Loans

Total non-accrual loans increased by $22.7 million (25.5%) to $111.7 million as of June 30, 2026, from $89.0 million as of March 31, 2026.

Total Non-Performing Assets

Total non-performing assets increased by $17.5 million (13.7%) to $145.4 million as of June 30, 2026, compared to $127.9 million as of March 31, 2026.

Capital Ratios

As of June 30, 2026, Cathay General Bancorp’s Tier 1 risk-based capital ratio was 13.70% (up from 13.47%), total risk-based capital ratio was 15.47% (up from 15.20%), and Tier 1 leverage capital ratio was 11.28% (up from 11.15%), all exceeding regulatory requirements.

Unique Metrics / Capital Management

Cathay General Bancorp’s Board approved an increase to its existing share repurchase authorization from $150 million to $200 million, subject to regulatory approval. The Board also approved the redemption of $54.1 million of trust preferred securities, representing approximately 45% of the Company’s outstanding trust preferred securities.

Outlook / Guidance

Cathay General Bancorp remains focused on maintaining strong credit quality, prudently managing its balance sheet, and supporting the financial needs of its clients. The Company believes these fundamentals, combined with thoughtful capital management, will continue to support long-term value creation for shareholders.