Cathay General Bancorp (CATY) investor relations material

Executive summary

• Net income for Q4 2025 was $90.5 million, up 17% sequentially and 13% year-over-year; full-year net income reached $315.1 million, a 10.2% increase year-over-year.

• Diluted EPS for Q4 2025 was $1.33, up 18.3% from Q3 and 19% from Q4 2024; full-year diluted EPS was $4.54, up 15% year-over-year.

• Total revenue for Q4 2025 was $222.8 million, up 6% sequentially and 19% year-over-year; full-year revenue was $817.9 million, up 12% year-over-year.

• 1.1 million shares repurchased in Q4 for $51.9 million at an average cost of $47.15 per share; $12 million remains under the current buyback program, with a new program planned.

Financial highlights

• Net interest margin rose to 3.36% in Q4 from 3.31% in Q3, up 29 bps year-over-year.

• Net interest income for Q4 2025 was $195.0 million, up 3% sequentially and 14% year-over-year; non-interest income in Q4 was $27.8 million, up 32.2% sequentially.

• Non-interest expense in Q4 increased by $4.1 million or 4.6% sequentially, mainly due to higher bonus accruals.

• Q4 provision for credit losses was $17.2 million, down from $28.7 million in Q3; net charge-offs were $5.4 million, down from $15.6 million in Q3.

• Efficiency ratio improved to 41.36% in Q4 2025, down 48 bps sequentially and 434 bps year-over-year.

Outlook and guidance

• Loan growth for 2026 expected between 3.5% and 4.5%; deposit growth projected at 4% to 5%.

• Net interest margin for 2026 anticipated to range from 3.4% to 3.5%.

• Core non-interest expense expected to rise 3.5% to 4.5% in 2026.

• Effective tax rate for 2026 expected between 20.5% and 21.5%.

• Management anticipates two rate cuts in June and September 2026.