The EPS miss and elevated credit costs are the headline, but the underlying business (record NII, NIM expansion, strong loan/deposit growth, improving asset quality) is solid. Watch for credit normalization — the $25.3M in net charge-offs was concentrated in three credits and may not recur. The TruPS redemption reduces leverage. Consensus for Dec 2026 is $1.53 — the Q3 miss sets a low bar for a potential beat.
Price Chart
Executive Summary
Cathay General Bancorp reported Q3 2026 EPS of $1.43, a 6.9% miss vs consensus of $1.54, on net income of $95.2M. Revenue (net interest income before provision) of $211.9M also missed the $233.7M consensus. The miss was driven by a $28.6M provision for credit losses (vs $11.2M in Q2) and elevated non-interest expense from a charitable contribution and contract termination fee, partially offset by record net interest income and strong loan/deposit growth.
Key Financial Metrics
Key Facts
- Q3 2026 diluted EPS $1.43 vs consensus $1.54 (miss of 6.9%)
- Net interest income before provision $211.9M vs consensus $233.7M (miss)
- Provision for credit losses surged to $28.6M from $11.2M in Q2
- Net charge-offs of $25.3M, concentrated in three borrower-specific credits
- Record net interest income of $211.9M, up 5.5% QoQ
- Net interest margin expanded 4 bps to 3.52%
- Loans grew 2.79% sequentially to $21.20B; deposits grew 3.67% to $21.83B
- Nonperforming assets declined 18.0% to $119.2M
- Completed $54.1M redemption of Trust Preferred Securities
- Non-interest expense increased 12.0% QoQ due to $8.0M charitable contribution and $5.4M contract termination fee
Financial Impact
EPS miss of 6.9% vs consensus; net income $95.2M vs $92.2M QoQ but below consensus expectations
Risk Factors
- Credit quality deterioration if charge-off trends broaden beyond the three concentrated credits
- Margin compression if deposit costs continue to rise faster than loan yields
- Elevated non-interest expense from one-time items may persist
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-033125 |
| Document: caty20261021_8k.htm | 0001437749-26-033125 |
| Document: 0001437749-26-033125-index-headers.html | 0001437749-26-033125 |
| Document: 0001437749-26-033125-index.html | 0001437749-26-033125 |
| Document: 0001437749-26-033125.txt | 0001437749-26-033125 |
| 8-K Data (Synthetic) | 0001437749-26-033125 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | 144 | $64.72 | awaiting T+1 | — | $64.72 (+0.00%) |
Oct 21, 2026 5d ago | 8-K | $64.24 $64.30 | ▼ −0.09% | ▼ −0.62% | $64.72 (−0.75%) |
Aug 27, 2026 8w ago | Insider Cluster | $61.87 $61.21 | ▼ −1.07% | ▼ −0.77% | $64.72 (+4.61%) |
Apr 28, 2026 26w ago | Insider Cluster | $55.73 $54.80 | ▼ −1.67% | ▼ −1.66% | $64.72 (+16.13%) |
Apr 22, 2026 26w ago | 8-K | $55.25 $54.38 | ▲ +1.57% | ▲ +2.36% | $64.72 (−17.14%) |
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