CATHAY GENERAL BANCORP has recently released its 10-Q report. Cathay General Bancorp is the holding company for Cathay Bank, which provides commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. Its offerings include deposit accounts, commercial and consumer lending, trade finance, foreign exchange, and other customary banking services; the company was founded in 1962 and is headquartered in Los Angeles.
In Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, the company said net income rose to $86.9 million in the first quarter of 2026 from $69.5 million a year earlier. Diluted earnings per share increased to $1.29 from $0.98, while return on average assets improved to 1.47% from 1.22% and return on average total stockholders’ equity rose to 11.88% from 9.84%.
Net interest income before provision for credit losses increased $17.6 million, or 10.0%, to $194.2 million. The net interest margin widened to 3.43% from 3.25%, and the net interest spread increased to 2.71% from 2.43%. Average interest-bearing deposits carried a cost of 2.96% in the quarter, down from 3.43% a year earlier, while the average cost of interest-bearing liabilities fell to 2.99% from 3.46%.
Average total loans were $20.16 billion in the quarter, up from $19.33 billion a year earlier, and the average yield on loans declined to 6.01% from 6.17%. Average deposits with banks fell to $1.13 billion from $1.20 billion, and the average yield on those balances dropped to 3.64% from 4.36%.
The company recorded a provision for credit losses of $18.2 million, compared with $15.5 million in the first quarter of 2025. The allowance for loan losses increased to $208.9 million, or 1.03% of total loans, from $195.9 million, or 0.97% of total loans at December 31, 2025. Net charge-offs were $2.1 million, compared with $2.0 million a year earlier.
Non-interest income was $20.7 million, up from $11.2 million, driven by a $17.3 million equity securities gain versus a $4.2 million loss in the prior-year quarter and a $1.1 million increase in derivative fees. That improvement was partly offset by a $15.7 million impairment loss on available-for-sale investment securities tied to the company’s decision to sell certain impaired securities.
Non-interest expense increased to $86.7 million from $85.7 million. Salaries and employee benefits rose $3.1 million, and other real estate owned expense increased $1.3 million, while amortization expense on investments in low-income housing and alternative energy partnerships fell $2.3 million and FDIC and state assessments declined by $1.0 million. The efficiency ratio improved to 40.35% from 45.60%.
Total assets were $24.05 billion at March 31, 2026, down $180.9 million from $24.23 billion at December 31, 2025. Securities available-for-sale were $1.68 billion, or 7.0% of total assets, compared with $1.66 billion, or 6.8%, at year-end, and more than 90% of that portfolio remained in U.S. Treasuries and agency mortgage-backed securities.
Gross loans held for investment were $20.17 billion, up $27.4 million from year-end. Commercial loans increased $98.0 million to $3.28 billion, commercial real estate loans rose $24.0 million to $10.59 billion, and equity lines increased $6.7 million to $289.0 million, while residential mortgage loans fell $53.6 million to $6.01 billion and real estate construction loans declined $48.5 million to $289.0 million.
Total deposits decreased $218.5 million, or 1.0%, to $20.68 billion from December 31, 2025. The market has reacted to these announcements by moving the company's shares 0.81% to a price of $57.45. Check out the company's full 10-Q submission here.
