Cathay General Bancorp (CATY) investor relations material

Executive summary

• Net income for Q1 2026 was $86.9 million, up 25% year-over-year but down 4% sequentially, with diluted EPS of $1.29 and improved efficiency ratio, reflecting solid performance amid a competitive and uncertain environment.

• Net interest margin rose to 3.43%, up 7 basis points sequentially and 18 bps year-over-year, driven by disciplined deposit cost management.

• Credit quality remained stable, with improvements in non-performing loans and net charge-offs, and steady criticized/classified loan levels.

• Efficiency ratio improved to 40.4%, with adjusted efficiency ratio at 36.9%.

• Quarterly dividend increased by 11.8% to $0.38 per share; $150 million share repurchase program completed and a new $150 million program approved.

Financial highlights

• Net interest income was $194.2 million, down $0.8 million sequentially but up $17.5 million year-over-year, supported by margin expansion.

• Non-interest income was $20.7 million, down 25.5% sequentially due to a $15.7 million impairment loss on securities, but up 84%-85% year-over-year.

• Non-interest expense declined 6% sequentially to $86.7 million, driven by lower amortization and compensation costs.

• Tangible book value per share grew to $38.95, up 3% sequentially and 10% year-over-year.

• Provision for credit losses increased to $18.2 million from $17.2 million in Q4 2025.

Outlook and guidance

• Full-year 2026 loan growth expected at 3.5%-4.5%; deposit growth at 4%-5%.

• Adjusted non-interest expense projected to increase 3.5%-4.5% for the year.

• NIM target remains 3.40%-3.50%, with no rate cuts assumed in 2026.

• Effective tax rate expected to be roughly 21%.

• Loan growth anticipated to be more weighted toward the middle and back half of the year as pipelines remain healthy.