Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in Los Angeles, Cathay General (CATY - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 29.22%. The holding company for Cathay Bank is currently shelling out a dividend of $0.38 per share, with a dividend yield of 2.43%. This compares to the Banks - West industry's yield of 2.42% and the S&P 500's yield of 1.33%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 11.8% from last year. Over the last 5 years, Cathay General has increased its dividend 1 times on a year-over-year basis for an average annual increase of 2.11%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Cathay's current payout ratio is 31%, meaning it paid out 31% of its trailing 12-month EPS as dividend.
CATY is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $5.42 per share, which represents a year-over-year growth rate of 19.38%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that CATY is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
Cathay General (CATY - Free Report) came out with quarterly earnings of $1.37 per share, beating the Zacks Consensus Estimate of $1.33 per share. This compares to earnings of $1.1 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +3.01%. A quarter ago, it was expected that this holding company for Cathay Bank would post earnings of $1.19 per share when it actually produced earnings of $1.29, delivering a surprise of +8.4%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Cathay, which belongs to the Zacks Banks - West industry, posted revenues of $222.3 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.89%. This compares to year-ago revenues of $196.61 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Cathay shares have added about 28.3% since the beginning of the year versus the S&P 500's gain of 9.7%.
What's Next for Cathay?While Cathay has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Cathay was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.34 on $223.68 million in revenues for the coming quarter and $5.42 on $882.63 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Sierra Bancorp (BSRR - Free Report) , has yet to report results for the quarter ended June 2026.
This parent company of Bank of the Sierra is expected to post quarterly earnings of $0.89 per share in its upcoming report, which represents a year-over-year change of +14.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Sierra Bancorp's revenues are expected to be $39.3 million, up 0.2% from the year-ago quarter.
Regional Bank Buybacks: 5 Institutions Making Big MovesCathay General Bancorp NASDAQ: CATY reported higher second-quarter 2026 earnings as net interest income rose and the bank continued to expand its net interest margin, while management pointed to improved loan and deposit momentum entering the second half of the year.
President and Chief Executive Officer Chang Liu said the company generated net income of $92.2 million, or $1.37 per diluted share, for the quarter. Net interest income increased to $200.9 million, while net interest margin expanded to 3.48%, marking what Liu described as the company’s eighth consecutive quarter of margin expansion.
Get Cathay General Bancorp alerts:
“This reflects our continued focus on managing funding costs in a competitive environment,” Liu said on the call.
Executive Vice President and Chief Financial Officer Al Wang said net income rose 6% from the prior quarter, driven by higher net interest income and a lower provision for credit losses, partially offset by higher non-interest expense and income tax expense.
Loan and Deposit Growth Improved During the Quarter Wang said period-end loans totaled $20.6 billion, up 2.2% from the prior quarter, while period-end deposits increased 1.9% to $21.1 billion. Average loan balances increased 1% on an annualized linked-quarter basis, and average deposits rose 2% on the same basis.
Deposit growth remained modest year to date, increasing $167 million, or 0.8%, but Wang said quarterly deposit growth accelerated “meaningfully” during May and June. Non-maturity deposits increased while time deposits declined, resulting in what management described as a more favorable funding mix and lower concentration in certificates of deposit. The uninsured deposit ratio remained stable at 45%.
During the question-and-answer portion of the call, Liu said the company saw stronger loan activity after a slower first quarter. He said second-quarter loan growth reflected more commercial and industrial activity, slight growth in residential mortgage and stronger commercial real estate activity, while construction declined somewhat.
“Looking ahead in Q3, honestly, I think we see pretty strong numbers so far,” Liu said, adding that the company had seen $200 million in loan bookings during the first three weeks of July, with much of that tied to commercial real estate, including apartment refinancing, multifamily and retail activity.
Margin Outlook Maintained Despite Deposit Competition Cathay maintained its full-year net interest margin target of 3.4% to 3.5%, with Wang noting that the outlook now assumes a 25-basis-point rate increase in September. He said net interest margin expanded five basis points from the prior quarter, reflecting lower funding costs, partially offset by narrower loan spreads.
In response to a question from David Chiaverini of Jefferies, Wang said reported loan yields were affected by interest recoveries and prepayment penalties. Excluding those items, he said loan yields were roughly flat. He added that the company saw a 10-basis-point reduction in deposit costs during the quarter, helped by both pricing and mix.
Wang cautioned that deposit pricing remains competitive. He said the company has approximately $3.3 billion to $3.4 billion of CDs rolling off at a 3.54% rate and expects replacement rates to be slightly higher. Still, he said management believes there is room for margin expansion in the near term, though that room is narrowing.
Wang also said the company’s non-interest-bearing deposit mix, roughly 17%, is projected to remain about where it ended the second quarter. Through the first 21 days of July, he said Cathay had grown deposits by $240 million, distributed mainly among money market, savings and time deposits.
Securities Repositioning Aimed at Future Earnings Management highlighted another securities repositioning during the quarter as part of balance sheet optimization efforts. Liu said the transaction resulted in a $10.6 million loss on sale but is expected to improve future earnings and support margin expansion.
Wang said the company sold $160 million of lower-yielding securities in June and reinvested the proceeds at significantly higher yields, with an expected earn-back period of less than 3.5 years. In response to a question from Matthew Clark of Piper Sandler, Wang said the securities sold in the second quarter were yielding about 3.15%, while the company reinvested about $152 million at approximately 5.31%.
For the year to date, Cathay has sold $371.7 million of lower-yielding securities and reinvested $341.8 million into higher-yielding investments. Wang said the combined repositioning activities have an aggregate earn-back period of approximately 3.1 years and were executed without a meaningful change to the portfolio’s overall duration or credit profile.
The available-for-sale securities portfolio remains defensively positioned, Wang said, with a duration of approximately two years, about two-thirds of projected cash flow expected to return within 12 months and more than 95% backed by U.S. government agencies.
Expenses Rose, Credit Metrics Improved Non-interest expense increased to $92.3 million from $86.7 million in the prior quarter. Wang said the increase was primarily driven by $3.1 million of higher amortization expense tied to low-income housing tax partnerships after receiving updated fund financial statements. Excluding that and other non-core expenses, adjusted non-interest expense was $81.9 million, and the adjusted efficiency ratio was 37.0%, compared with 36.9% in the prior quarter.
Credit quality remained strong, management said. Net charge-offs declined to $1.8 million, classified loans decreased by $10 million and criticized loans improved by $103 million during the quarter. The allowance for loan losses increased $10 million to $219 million, or 1.06% of gross loans, primarily reflecting loan growth.
In response to Gary Tenner of D.A. Davidson, Wang said roughly $5.5 million of the allowance increase was due to loan growth, about $3 million related to specific reserves and another $1.5 million came from an adjustment to a qualitative factor.
Capital Return and Full-Year Guidance Liu said capital management remains a key part of the company’s strategy. During the quarter, Cathay repurchased 242,000 shares at an average cost of $58 per share. The board also approved an increase in the share repurchase authorization from $150 million to $200 million, subject to regulatory approval.
Wang said buyback activity was lighter during the quarter in part because regulatory approval came later in the period. He said the company expects to increase repurchase activity through the rest of the year and maintain more capacity heading into the first quarter than in prior years.
Cathay also plans to redeem approximately $54.1 million of its $119.1 million in outstanding trust-preferred securities, targeting its highest-cost issuances. Management said the move is expected to reduce funding costs and improve recurring earnings.
For the full year, Wang said Cathay continues to expect loan growth of 3.5% to 4.5%. The company lowered its deposit growth outlook to 3% to 4%, citing slower-than-expected first-half growth. Cathay maintained its adjusted non-interest expense growth outlook of 3.5% to 4.5% and now expects an effective tax rate between 21% and 22%.
“Overall, we’re pleased with our performance for the first half of the year,” Liu said, adding that the company is entering the third quarter with “good momentum” while maintaining a disciplined approach to growth, capital and expenses.
About Cathay General Bancorp (NASDAQ:CATY)Cathay General Bancorp is a bank holding company headquartered in Los Angeles, California, trading on NASDAQ under the symbol CATY. Its principal subsidiary, Cathay Bank, provides a full suite of financial services to commercial, institutional and retail clients. As a community-focused institution, the company emphasizes relationship banking and tailored solutions for businesses and individuals.
Founded in 1962 by a group of Chinese American entrepreneurs, Cathay has expanded from a single branch operation in downtown Los Angeles into one of the largest Asian-American banks in the United States.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Cathay General Bancorp Right Now?Before you consider Cathay General Bancorp, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Cathay General Bancorp wasn't on the list.
While Cathay General Bancorp currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Nuclear energy is entering a new growth cycle as rising power demand, expanding data centers, and renewed policy support bring the sector back into focus. After strong gains in recent years, the most impactful phase of nuclear investment may still be ahead. This report highlights seven nuclear energy stocks positioned across the value chain—combining near-term revenue with long-term upside as next-generation technologies scale. Click the link below to unlock the full list.
Cathay General Bancorp (CATY) Q2 2026 Earnings Call July 22, 2026 6:00 PM EDT
Company Participants
Georgia Lo - Assistant Secretary & Investor Relations
Chang Liu - CEO, President & Director
Albert Wang - Executive VP, CFO & Treasurer
Conference Call Participants
David Chiaverini - Jefferies LLC, Research Division
Matthew Clark - Piper Sandler & Co., Research Division
Gary Tenner - D.A. Davidson & Co., Research Division
Kelly Motta - Keefe, Bruyette, & Woods, Inc., Research Division
Presentation
Operator
Good afternoon, ladies and gentlemen, and welcome to Cathay General Bancorp's Second Quarter 2026 earnings conference call. My name is Asha, and I'll be your coordinator for today. [Operator Instructions] Today's call is being recorded and will be available for replay at www.cathaygeneralbancorp.com.
Now I would like to turn the call over to Georgia Lo, Investor Relations of Cathay General Bancorp. Please go ahead.
Georgia Lo
Assistant Secretary & Investor Relations
Thank you, Asha, and good afternoon. Here to discuss the financial results today are Mr. Chang Liu, our President and Chief Executive Officer; and Mr. Al Wang, our Executive Vice President and Chief Financial Officer.
Before we begin, we wish to remind you that the speakers on this call may make forward-looking statements within the meaning of applicable provisions of the Private Securities Litigation Reform Act of 1995 concerning future results and events, and that these statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are further described in the company's annual report on Form 10-K for the year ended December 31, 2025, at Item 1A in particular, and in other reports and filings with the Securities and Exchange Commission from time to time. As such, we caution you not to place undue reliance on such forward-looking statements.
LOS ANGELES--(BUSINESS WIRE)--Cathay General Bancorp (the “Company”, “we”, “us”, or “our”) (Nasdaq: CATY), the holding company for Cathay Bank, today announced its unaudited financial results for the quarter ended June 30, 2026. The Company reported net income of $92.2 million, or $1.37 per diluted share, for the second quarter of 2026 compared to $86.9 million, or $1.29 per diluted share for the first quarter of 2026. “We delivered strong second quarter results, with higher earnings driven by.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Cathay General (CATY - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Cathay General currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if CATY is a promising momentum pick, let's examine some Momentum Style elements to see if this holding company for Cathay Bank holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For CATY, shares are up 1.92% over the past week while the Zacks Banks - West industry is up 1.89% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 6.13% compares favorably with the industry's 6.29% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of Cathay General have risen 15.32%, and are up 30.1% in the last year. In comparison, the S&P 500 has only moved 4.96% and 19.65%, respectively.
Investors should also pay attention to CATY's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. CATY is currently averaging 539,155 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with CATY.
Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. This revision helped boost CATY's consensus estimate, increasing from $5.40 to $5.42 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that CATY is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Cathay General on your short list.
LOS ANGELES--(BUSINESS WIRE)--Cathay General Bancorp (Nasdaq: CATY), the holding company for Cathay Bank, is scheduled to announce its second quarter 2026 financial results after the markets close on Wednesday, July 22, 2026.
Cathay General Bancorp has scheduled a conference call as set forth below. Analysts and investors may participate in the question-and-answer session.
Conference Call and Webcast Information:
Participants should join the live conference call 5 to 10 minutes before its scheduled start.
Webcast Access: A listen-only live webcast of the call will be available at www.cathaygeneralbancorp.com and the recorded version will be available for replay within 24 hours after the call and archived for one year.
ABOUT CATHAY GENERAL BANCORP
Cathay General Bancorp (Nasdaq: CATY) is the holding company for Cathay Bank. Cathay General Bancorp’s website is at www.cathaygeneralbancorp.com. Founded in 1962, Cathay Bank offers a wide range of financial services and currently operates over 60 branches across the nation in California, New York, Washington, Texas, Illinois, Massachusetts, Maryland, Nevada, and New Jersey. Overseas, it has a branch in Hong Kong and representative offices in Beijing, Shanghai, and Taipei. To learn more about Cathay Bank, please visit www.cathaybank.com.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Headquartered in Los Angeles, Cathay General (CATY - Free Report) is a Finance stock that has seen a price change of 27.01% so far this year. The holding company for Cathay Bank is currently shelling out a dividend of $0.38 per share, with a dividend yield of 2.47%. This compares to the Banks - West industry's yield of 2.53% and the S&P 500's yield of 1.35%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 11.8% from last year. Over the last 5 years, Cathay General has increased its dividend 1 times on a year-over-year basis for an average annual increase of 2.11%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Cathay's current payout ratio is 31%, meaning it paid out 31% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for CATY for this fiscal year. The Zacks Consensus Estimate for 2026 is $5.42 per share, representing a year-over-year earnings growth rate of 19.38%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that CATY is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
Cathay General (CATY - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Cathay basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Cathay imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for CathayThis holding company for Cathay Bank is expected to earn $5.42 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Cathay. Over the past three months, the Zacks Consensus Estimate for the company has increased 6.1%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Cathay to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Cathay General (CATY - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Cathay General currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for CATY that show why this holding company for Cathay Bank shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For CATY, shares are up 5.01% over the past week while the Zacks Banks - West industry is up 4.03% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 7.61% compares favorably with the industry's 6.48% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Cathay General have increased 22.63% over the past quarter, and have gained 35.87% in the last year. On the other hand, the S&P 500 has only moved 12.99% and 20.11%, respectively.
Investors should also take note of CATY's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now CATY is averaging 521,049 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with CATY.
Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. This revision helped boost CATY's consensus estimate, increasing from $5.40 to $5.42 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that CATY is a #2 (Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Cathay General on your short list.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Headquartered in Los Angeles, Cathay General (CATY - Free Report) is a Finance stock that has seen a price change of 22.11% so far this year. The holding company for Cathay Bank is currently shelling out a dividend of $0.38 per share, with a dividend yield of 2.57%. This compares to the Banks - West industry's yield of 2.57% and the S&P 500's yield of 1.43%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 11.8% from last year. Over the last 5 years, Cathay General has increased its dividend 1 times on a year-over-year basis for an average annual increase of 2.11%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Cathay's current payout ratio is 31%, meaning it paid out 31% of its trailing 12-month EPS as dividend.
CATY is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $5.40 per share, which represents a year-over-year growth rate of 18.94%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, CATY is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
SG Americas Securities LLC lowered its stake in shares of Cathay General Bancorp (NASDAQ:CATY – Free Report) by 46.3% in the fourth quarter, according to its most recent 13F filing with the SEC. The firm owned 31,697 shares of the bank’s stock after selling 27,298 shares during the period. SG Americas Securities LLC’s holdings in Cathay General Bancorp were worth $1,534,000 at the end of the most recent reporting period.
A number of other institutional investors and hedge funds also recently added to or reduced their stakes in CATY. Invesco Ltd. lifted its stake in Cathay General Bancorp by 3.5% during the third quarter. Invesco Ltd. now owns 1,579,719 shares of the bank’s stock worth $75,842,000 after purchasing an additional 53,621 shares in the last quarter. Norges Bank acquired a new stake in shares of Cathay General Bancorp in the second quarter valued at $36,348,000. Millennium Management LLC raised its holdings in shares of Cathay General Bancorp by 375.1% in the 3rd quarter. Millennium Management LLC now owns 420,509 shares of the bank’s stock valued at $20,189,000 after buying an additional 331,997 shares during the period. Bank of America Corp DE raised its holdings in shares of Cathay General Bancorp by 25.0% in the 3rd quarter. Bank of America Corp DE now owns 386,291 shares of the bank’s stock valued at $18,546,000 after buying an additional 77,228 shares during the period. Finally, Public Sector Pension Investment Board lifted its stake in Cathay General Bancorp by 8.8% during the 3rd quarter. Public Sector Pension Investment Board now owns 305,043 shares of the bank’s stock worth $14,645,000 after acquiring an additional 24,615 shares in the last quarter. Hedge funds and other institutional investors own 75.01% of the company’s stock.
Cathay General Bancorp Stock Performance Shares of CATY stock opened at $51.34 on Tuesday. The firm has a 50 day moving average of $50.66 and a two-hundred day moving average of $49.30. The stock has a market capitalization of $3.44 billion, a PE ratio of 11.31 and a beta of 0.82. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.05. Cathay General Bancorp has a 52 week low of $36.13 and a 52 week high of $54.99.
Cathay General Bancorp (NASDAQ:CATY – Get Free Report) last posted its quarterly earnings data on Thursday, January 22nd. The bank reported $1.33 earnings per share for the quarter, topping analysts’ consensus estimates of $1.20 by $0.13. The business had revenue of $222.83 million for the quarter, compared to analyst estimates of $211.76 million. Cathay General Bancorp had a return on equity of 10.89% and a net margin of 22.76%.During the same quarter in the prior year, the company earned $1.12 earnings per share. On average, research analysts predict that Cathay General Bancorp will post 4.47 EPS for the current fiscal year.
Cathay General Bancorp Increases Dividend The business also recently declared a quarterly dividend, which was paid on Monday, March 9th. Shareholders of record on Thursday, February 26th were issued a dividend of $0.38 per share. This is a positive change from Cathay General Bancorp’s previous quarterly dividend of $0.34. The ex-dividend date was Thursday, February 26th. This represents a $1.52 annualized dividend and a yield of 3.0%. Cathay General Bancorp’s dividend payout ratio (DPR) is currently 33.48%.
Insider Transactions at Cathay General Bancorp In other Cathay General Bancorp news, EVP Thomas M. Lo sold 1,000 shares of the stock in a transaction dated Thursday, January 29th. The stock was sold at an average price of $50.23, for a total value of $50,230.00. Following the sale, the executive vice president owned 2,000 shares of the company’s stock, valued at $100,460. This trade represents a 33.33% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 4.85% of the stock is owned by corporate insiders.
Analyst Ratings Changes Separately, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Cathay General Bancorp in a research report on Monday, December 29th. Two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, Cathay General Bancorp currently has a consensus rating of “Hold” and an average target price of $52.50.
Check Out Our Latest Research Report on Cathay General Bancorp
Cathay General Bancorp Company Profile (Free Report)
Cathay General Bancorp is a bank holding company headquartered in Los Angeles, California, trading on NASDAQ under the symbol CATY. Its principal subsidiary, Cathay Bank, provides a full suite of financial services to commercial, institutional and retail clients. As a community-focused institution, the company emphasizes relationship banking and tailored solutions for businesses and individuals.
Founded in 1962 by a group of Chinese American entrepreneurs, Cathay has expanded from a single branch operation in downtown Los Angeles into one of the largest Asian-American banks in the United States.
Featured Articles Five stocks we like better than Cathay General Bancorp Want to see what other hedge funds are holding CATY? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cathay General Bancorp (NASDAQ:CATY – Free Report).
Receive News & Ratings for Cathay General Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cathay General Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINESG Americas Securities LLC Takes Position in Merit Medical Systems, Inc. $MMSI
NEXT HEADLINE »SG Americas Securities LLC Has $1.53 Million Stock Position in Dynex Capital, Inc. $DX
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Cathay General (CATY - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Cathay General currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for CATY that show why this holding company for Cathay Bank shows promise as a solid momentum pick.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For CATY, shares are up 3.58% over the past week while the Zacks Banks - West industry is up 2.8% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 7.59% compares favorably with the industry's 2.83% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Cathay General have increased 3.57% over the past quarter, and have gained 35.68% in the last year. On the other hand, the S&P 500 has only moved -4.5% and 31.98%, respectively.
Investors should also take note of CATY's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now CATY is averaging 642,534 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with CATY.
Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. This revision helped boost CATY's consensus estimate, increasing from $5.11 to $5.14 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that CATY is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Cathay General on your short list.
Farmers & Merchants Bank of Long Beach (OTCMKTS:FMBL – Get Free Report) and Cathay General Bancorp (NASDAQ:CATY – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.
Risk & Volatility Farmers & Merchants Bank of Long Beach has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500. Comparatively, Cathay General Bancorp has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.
Profitability This table compares Farmers & Merchants Bank of Long Beach and Cathay General Bancorp’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Farmers & Merchants Bank of Long Beach 15.22% 4.89% 0.59% Cathay General Bancorp 22.76% 10.89% 1.32% Insider and Institutional Ownership 7.6% of Farmers & Merchants Bank of Long Beach shares are held by institutional investors. Comparatively, 75.0% of Cathay General Bancorp shares are held by institutional investors. 12.8% of Farmers & Merchants Bank of Long Beach shares are held by insiders. Comparatively, 4.8% of Cathay General Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation This table compares Farmers & Merchants Bank of Long Beach and Cathay General Bancorp”s gross revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Farmers & Merchants Bank of Long Beach $449.19 million 2.21 $68.35 million $538.20 15.40 Cathay General Bancorp $817.89 million 4.22 $315.12 million $4.54 11.35 Cathay General Bancorp has higher revenue and earnings than Farmers & Merchants Bank of Long Beach. Cathay General Bancorp is trading at a lower price-to-earnings ratio than Farmers & Merchants Bank of Long Beach, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings This is a breakdown of current recommendations and price targets for Farmers & Merchants Bank of Long Beach and Cathay General Bancorp, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Farmers & Merchants Bank of Long Beach 0 0 0 0 0.00 Cathay General Bancorp 0 3 2 0 2.40 Cathay General Bancorp has a consensus target price of $52.50, suggesting a potential upside of 1.92%. Given Cathay General Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Cathay General Bancorp is more favorable than Farmers & Merchants Bank of Long Beach.
Dividends Farmers & Merchants Bank of Long Beach pays an annual dividend of $112.00 per share and has a dividend yield of 1.4%. Cathay General Bancorp pays an annual dividend of $1.52 per share and has a dividend yield of 3.0%. Farmers & Merchants Bank of Long Beach pays out 20.8% of its earnings in the form of a dividend. Cathay General Bancorp pays out 33.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Summary Cathay General Bancorp beats Farmers & Merchants Bank of Long Beach on 12 of the 16 factors compared between the two stocks.
About Farmers & Merchants Bank of Long Beach (Get Free Report)
Farmers & Merchants Bank of Long Beach provides various banking products and services to individuals, professionals, and small to medium-sized businesses in Los Angeles, Orange, and Santa Barbara Counties. It offers checking, savings, Christmas club savings, health savings, market rate savings, and money market accounts; demand and time deposits; certificates of deposit; and individual retirement account. The company also provides personal, home, commercial real estate, real estate and construction, and commercial business loans, as well as lines of credit; financing for residential loans comprising single-family and multifamily loans; and credit and debit cards. In addition, it offers account management, receivables and payables, and risk management services; commercial lending services; and faith-based and healthcare banking services, as well as online and mobile banking services. Farmers & Merchants Bank of Long Beach was founded in 1907 and is headquartered in Long Beach, California.
About Cathay General Bancorp (Get Free Report)
Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. The company offers various deposit products, including passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits. It also provides loan products, such as commercial mortgage loans, commercial loans, small business administration loans, residential mortgage loans, real estate construction loans, and home equity lines of credit, as well as installment loans to individuals for household, and other consumer expenditures. In addition, the company offers trade financing, letter of credit, wire transfer, forward currency spot and forward contract, safe deposit, collection, automatic teller machine, Internet banking, investment, and other customary bank services, as well as securities and insurance products. Cathay General Bancorp was founded in 1962 and is headquartered in Los Angeles, California.
Receive News & Ratings for Farmers & Merchants Bank of Long Beach Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Farmers & Merchants Bank of Long Beach and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEAnalyzing Wynn Resorts (NASDAQ:WYNN) and PLAYSTUDIOS (NASDAQ:MYPS)
NEXT HEADLINE »Critical Analysis: DXC Technology (NYSE:DXC) versus BigBear.ai (NYSE:BBAI)
LOS ANGELES--(BUSINESS WIRE)--Cathay General Bancorp (Nasdaq: CATY), the holding company for Cathay Bank, is scheduled to announce its first quarter 2026 financial results after the markets close on Wednesday, April 22, 2026. Cathay General Bancorp has scheduled a conference call as set forth below. Analysts and investors may participate in the question-and-answer session. Conference Call and Webcast Information: Date: Wednesday, April 22, 2026 Time: 2:00 p.m. Pacific Time (5:00 p.m. Eastern Ti.
Malaga Financial (OTCMKTS:MLGF – Get Free Report) and Cathay General Bancorp (NASDAQ:CATY – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Institutional and Insider Ownership 1.2% of Malaga Financial shares are held by institutional investors. Comparatively, 75.0% of Cathay General Bancorp shares are held by institutional investors. 4.9% of Cathay General Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations This is a breakdown of current recommendations for Malaga Financial and Cathay General Bancorp, as reported by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Malaga Financial 0 0 0 0 0.00 Cathay General Bancorp 0 3 2 0 2.40 Cathay General Bancorp has a consensus target price of $52.50, suggesting a potential downside of 2.56%. Given Cathay General Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Cathay General Bancorp is more favorable than Malaga Financial.
Profitability This table compares Malaga Financial and Cathay General Bancorp’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Malaga Financial N/A N/A N/A Cathay General Bancorp 22.76% 10.89% 1.32% Earnings and Valuation This table compares Malaga Financial and Cathay General Bancorp”s gross revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Malaga Financial N/A N/A $21.55 million $2.18 9.95 Cathay General Bancorp $1.38 billion 2.61 $315.12 million $4.54 11.87 Cathay General Bancorp has higher revenue and earnings than Malaga Financial. Malaga Financial is trading at a lower price-to-earnings ratio than Cathay General Bancorp, indicating that it is currently the more affordable of the two stocks.
Dividends Malaga Financial pays an annual dividend of $1.00 per share and has a dividend yield of 4.6%. Cathay General Bancorp pays an annual dividend of $1.52 per share and has a dividend yield of 2.8%. Malaga Financial pays out 45.9% of its earnings in the form of a dividend. Cathay General Bancorp pays out 33.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Risk & Volatility Malaga Financial has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500. Comparatively, Cathay General Bancorp has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.
Summary Cathay General Bancorp beats Malaga Financial on 14 of the 15 factors compared between the two stocks.
About Malaga Financial (Get Free Report)
Malaga Financial Corporation operates as the holding company for Malaga Bank that provides various community banking products and services to personal and business customers. It offers checking, savings, NOW, and money market accounts, certificates of deposits, business banking, consumer, and demand deposits. The company also provides commercial real estate, single and multi-family residential mortgage, consumer, 14-unit investment property, construction, personal, and business loans; home equity lines of credit; and certificates of deposit. In addition, it offers coupon redemption, direct deposit, overdraft lines of credit, telephone transfers, U.S. savings bond redemption, and wire transfer services; and ATM and VISA debit cards, bank by mail, medallion signature guarantee, night depository, notary, safe deposit boxes, and trust deed note collection services. Further, the company provides online banking services, including bill payer, e-statements, and mobile banking services. The company was incorporated in 2002 and is headquartered in Palos Verdes Estates, California.
About Cathay General Bancorp (Get Free Report)
Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. The company offers various deposit products, including passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits. It also provides loan products, such as commercial mortgage loans, commercial loans, small business administration loans, residential mortgage loans, real estate construction loans, and home equity lines of credit, as well as installment loans to individuals for household, and other consumer expenditures. In addition, the company offers trade financing, letter of credit, wire transfer, forward currency spot and forward contract, safe deposit, collection, automatic teller machine, Internet banking, investment, and other customary bank services, as well as securities and insurance products. Cathay General Bancorp was founded in 1962 and is headquartered in Los Angeles, California.
Receive News & Ratings for Malaga Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Malaga Financial and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEBowhead Specialty (NYSE:BOW) and White Mountains Insurance Group (NYSE:WTM) Head to Head Review
NEXT HEADLINE »Critical Contrast: A.P. Moller-Maersk (OTCMKTS:AMKBY) & Frontline (NYSE:FRO)
Cathay General Bancorp remains a soft "Buy" after outperforming the S&P 500, driven by strong financials and asset quality. CATY's deposits and loans both expanded, with net interest income and non-interest income rising, supporting robust profit growth. Valuation is slightly above preferred thresholds, but superior return on assets (1.49%) and equity (12.27%) justify the premium.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Headquartered in Los Angeles, Cathay General (CATY - Free Report) is a Finance stock that has seen a price change of 9.4% so far this year. The holding company for Cathay Bank is currently shelling out a dividend of $0.38 per share, with a dividend yield of 2.87%. This compares to the Banks - West industry's yield of 2.84% and the S&P 500's yield of 1.39%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 11.8% from last year. Over the last 5 years, Cathay General has increased its dividend 1 times on a year-over-year basis for an average annual increase of 2.11%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Cathay's current payout ratio is 30%, meaning it paid out 30% of its trailing 12-month EPS as dividend.
CATY is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $5.14 per share, with earnings expected to increase 13.22% from the year ago period.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, CATY presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
LOS ANGELES--(BUSINESS WIRE)--Cathay General Bancorp (the “Company”, “we”, “us”, or “our”) (Nasdaq: CATY), the holding company for Cathay Bank, today announced its unaudited financial results for the quarter ended March 31, 2026. The Company reported net income of $86.9 million, or $1.29 per diluted share, for the first quarter of 2026 compared to $90.5 million, or $1.33 per diluted share for the fourth quarter of 2025. “Our ability to expand net interest margin while keeping deposit costs cont.
Cathay General (CATY - Free Report) came out with quarterly earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.19 per share. This compares to earnings of $0.98 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +8.40%. A quarter ago, it was expected that this holding company for Cathay Bank would post earnings of $1.2 per share when it actually produced earnings of $1.33, delivering a surprise of +10.83%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Cathay, which belongs to the Zacks Banks - West industry, posted revenues of $214.83 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.43%. This compares to year-ago revenues of $187.84 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Cathay shares have added about 10.7% since the beginning of the year versus the S&P 500's gain of 3.2%.
What's Next for Cathay?While Cathay has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Cathay was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.16 on $213.6 million in revenues for the coming quarter and $5.14 on $861.6 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Bay Commercial Bank (BCML - Free Report) , is yet to report results for the quarter ended March 2026.
This company is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of +21.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Bay Commercial Bank's revenues are expected to be $25.8 million, up 6.1% from the year-ago quarter.
LOS ANGELES--(BUSINESS WIRE)--Cathay General Bancorp (the “Company”, Nasdaq: CATY), the holding company for Cathay Bank, announced that its Board of Directors has adopted a new share repurchase program authorizing the Company to repurchase up to $150,000,000 of the Company's common stock. The previous $150,000,000 share repurchase program announced on June 4, 2025, was completed on February 4, 2026, with the repurchase of 3,217,481 shares at an average cost of $46.62. The share repurchases may.
LOS ANGELES--(BUSINESS WIRE)-- #CathayBank--Cathay Bank is excited to announce its upcoming 49th Annual Charity Golf Tournament, that will take place on May 6, 2026 at the Industry Hills Golf Club at Pacific Palms Resort in the City of Industry, California. This annual charity event serves as a long-standing tradition and cornerstone community event, bringing together golf enthusiasts to raise funds to support local nonprofit organizations. The tournament will feature an 18-hole, four-player scramble format,.
Cathay General Bancorp (NASDAQ:CATY) reported what management described as a “solid” start to 2026, posting first-quarter net income of $86.9 million and diluted earnings per share of $1.29. President and CEO Chang Liu said results included two noteworthy items that “largely offset each other”: a $17.3 million valuation gain on equity securities and a $15.7 million impairment on available-for-sale (AFS) debt securities tied to a balance sheet repositioning.
Liu said the securities actions were intended to improve future performance. “We sold lower yielding securities and reinvested at current market rates, a move that supports margin expansion and accelerates tangible book value recovery,” he said. Excluding the two items, Liu added that diluted EPS would have been $0.02 lower.
Net interest margin expands amid deposit cost management Executive Vice President and CFO Al Wang reported net interest margin (NIM) of 3.43%, up 7 basis points from the prior quarter. Net interest income totaled $194.0 million, down $0.8 million from the previous quarter, which Wang attributed to day count effects that were “offset by margin expansion.” Wang said margin improvement was driven by lower deposit costs, partially offset by a decline in loan yields following the Federal Reserve’s rate cuts in the fourth quarter.
During the Q&A, management discussed how its 2026 outlook has shifted. Wang said the company’s NIM and net interest income outlook “no longer assumes any rate cuts in 2026,” but management maintained confidence in achieving its full-year NIM target of 3.40% to 3.50%.
In response to Jefferies analyst David Chiaverini, Wang said that removing assumed rate cuts could “put pressure and point us down slightly,” though the securities repositioning should help by “a few basis points for the year.” Wang also pointed to loan pricing and repricing dynamics, including origination rates in commercial real estate and mortgage lending that were higher than the overall portfolio yield for the quarter. On funding costs, he said the bank still had “room to run” on deposit pricing, but also acknowledged rising brokered CD rates and “a lot more pressure and competition with deposits.”
Wang also provided additional detail on one-time items that affected NIM. Piper Sandler analyst Matthew Clark asked about prepayment and interest recoveries; Wang said those items totaled about $3.5 million in the quarter, representing roughly 6 basis points. He added that reported NIM of 3.43% would have been about 3.37% excluding those items, and noted a small Federal Home Loan Bank special dividend included in that amount.
Securities repositioning: impairment taken, higher yields targeted The company’s AFS portfolio actions featured prominently in management’s remarks. Wang said Cathay recognized a $15.7 million impairment loss as part of a securities repositioning initiative. In the first week of April, the bank sold $210 million of lower-yielding mortgage-backed securities and reinvested $197 million into “similar duration securities at significantly higher yields.”
Wang said the trade was structured with an “earn back under three years” while keeping duration and credit profile “essentially unchanged.” He described the AFS portfolio as “short and high quality,” with duration “just under two years,” and said nearly two-thirds of cash flows would return this year. Wang added that more than 90% of the portfolio is U.S. government-backed, with the remainder in investment-grade securities.
In response to Chiaverini, Wang said the securities sold carried a yield of about 2.45%, while the effective yield on the reinvested securities was around 5.33%. He estimated the repositioning would add roughly 2.0 to 2.5 basis points to NIM for the year and about $4 million of additional net interest income in 2026, given the timing of the transaction early in the year.
Loans, deposits, and capital actions On the balance sheet, Wang said on-balance sheet cash and short-term investments declined by $219 million as the bank stayed aligned with shifts in its funding profile. Period-end loans were $20.2 billion, up 0.2% linked-quarter, while period-end deposits were $20.7 billion, down 1% linked-quarter, led by a $71 million decline in broker deposits.
Management emphasized capital strength and shareholder returns. Liu said Cathay increased its quarterly cash dividend to $0.38 per share, an 11.8% increase. He also said the bank completed a $150 million share repurchase program announced in June 2025 by repurchasing 244,000 shares at an average cost of $51.31. In addition, the board approved a new $150 million repurchase program, subject to regulatory approval.
Liu also highlighted tangible book value per share of $30.95 and said the bank grew book value per share 2% linked-quarter and 9% year-over-year.
Loan growth was “softer than we anticipated,” Liu said, attributing the approach to disciplined underwriting in an “unpredictable” environment. In response to Piper Sandler’s Clark, Liu said construction loan paydowns increased as some customers refinanced with life companies and agency lenders offering more competitive long-term rates. “Our pipelines are still healthy and strong, and the customer engagement has improved,” Liu said, adding that growth is expected to be weighted toward the middle and back half of the year.
Credit trends steady; allowance increased on model updates Management said credit quality remained stable. Liu noted improvements in non-performing loans and net charge-offs, while criticized and classified levels were steady. Wang reported net charge-offs of $2.1 million, down from $5.4 million in the prior quarter, and said the non-performing asset ratio improved to 51 basis points from 59 basis points.
The bank increased its allowance for credit losses by $13 million to $209 million. Wang said coverage was 1.03% of loans, or 1.30% excluding residential mortgages, and attributed the increase to model updates including “a slight softening in the macroeconomic outlook.”
Asked by D.A. Davidson’s Gary Tenner about the reserve build, Wang said the overall model weightings were kept the same, but weightings were changed for certain portfolios. He added that Cathay stressed parts of the office portfolio more heavily, noting the bank’s coastal footprint and the view that national economic forecasts may not fully capture those conditions.
Expenses, fee income, and 2026 outlook Non-interest expense declined to $86.7 million from $92.2 million, driven by $4.5 million of lower amortization expense on low-income housing and alternative energy partnerships, as well as lower compensation and benefits, Wang said. He also explained that Cathay records amortization of tax credit investments in non-interest expense (rather than in income tax expense as many peers do). On an adjusted basis, Wang said non-interest expense would have been $78.7 million, $3 million lower than the prior quarter, and adjusted efficiency ratio improved to 36.9% from 38.4%.
When asked about the tax credit amortization outlook, Wang said it is “a fluid number” depending on project performance and timing, but estimated $7 million to $8 million over the next few quarters.
On fee income, Liu told KBW’s Kelly Motta that core fee strength is “really the sort of the wealth business that drives that income,” while other sources include foreign exchange, international fees, swapping-related fees (which he said can be sporadic depending on the rate environment), and treasury management. Management said it was optimistic wealth management performance could hold, noting “some new leadership in wealth” and a “decent amount of referrals.”
For full-year 2026, Wang reiterated guidance for loan growth of 3.5% to 4.5% and deposit growth of 4% to 5%. Adjusted non-interest expense is still expected to rise 3.5% to 4.5% for the year, and the effective tax rate is expected to be roughly 21%.
In a separate Q&A topic, Wang said proposed capital rule changes could be a “huge win” for Cathay due to its mortgage portfolio with very low loan-to-value ratios. He estimated potential “low double digit” reductions in risk-weighted assets and a 1.50% to 1.75% boost to capital ratios, depending on the ratio.
On M&A, Liu said the bank would remain opportunistic but that it is “not the top priority at this point,” with the focus remaining on organic growth, strengthening the franchise, and meeting financial plans communicated to investors.
About Cathay General Bancorp (NASDAQ:CATY) Cathay General Bancorp is a bank holding company headquartered in Los Angeles, California, trading on NASDAQ under the symbol CATY. Its principal subsidiary, Cathay Bank, provides a full suite of financial services to commercial, institutional and retail clients. As a community-focused institution, the company emphasizes relationship banking and tailored solutions for businesses and individuals.
Founded in 1962 by a group of Chinese American entrepreneurs, Cathay has expanded from a single branch operation in downtown Los Angeles into one of the largest Asian-American banks in the United States.
Featured Stories Five stocks we like better than Cathay General Bancorp
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Cathay General (CATY - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Cathay General currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for CATY that show why this holding company for Cathay Bank shows promise as a solid momentum pick.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For CATY, shares are up 0.24% over the past week while the Zacks Banks - West industry is down 0.45% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 13.77% compares favorably with the industry's 8.76% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Cathay General have increased 5.8% over the past quarter, and have gained 32.4% in the last year. In comparison, the S&P 500 has only moved 3.1% and 31.34%, respectively.
Investors should also take note of CATY's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now CATY is averaging 329,988 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with CATY.
Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. This revision helped boost CATY's consensus estimate, increasing from $5.11 to $5.16 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that CATY is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Cathay General on your short list.
Information in Investor’s Business Daily is for informational and educational purposes only and should not be construed as an offer, recommendation, solicitation, or rating to buy or sell securities. The information has been obtained from sources we believe to be reliable, but we make no guarantee as to its accuracy, timeliness, or suitability, including with respect to information that appears in closed captioning. Historical investment performances are no indication or guarantee of future success or performance. Authors/presenters may own the stocks they discuss. We make no representations or warranties regarding the advisability of investing in any particular securities or utilizing any specific investment strategies. Information is subject to change without notice. For information on use of our services, please see our Terms of Use.
*Real-time prices by Nasdaq Last Sale. Real-time quote and/or trade prices are not sourced from all markets. Ownership data provided by LSEG and Estimate data provided by FactSet.
IBD, IBD Digital, IBD Live, IBD Weekly, Investor's Business Daily, Leaderboard, MarketDiem, MarketSurge and other marks are trademarks owned by Investor's Business Daily, LLC.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in Los Angeles, Cathay General (CATY - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 16.57%. The holding company for Cathay Bank is currently shelling out a dividend of $0.38 per share, with a dividend yield of 2.69%. This compares to the Banks - West industry's yield of 2.71% and the S&P 500's yield of 1.39%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 11.8% from last year. Over the last 5 years, Cathay General has increased its dividend 1 times on a year-over-year basis for an average annual increase of 2.11%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Cathay's current payout ratio is 31%, meaning it paid out 31% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, CATY expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $5.40 per share, with earnings expected to increase 18.94% from the year ago period.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that CATY is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
LOS ANGELES--(BUSINESS WIRE)--Cathay General Bancorp (Nasdaq: CATY) announced that its Board of Directors declared a cash dividend of thirty-eight cents per common share, payable on June 9, 2026, to stockholders of record at the close of business on May 28, 2026. ABOUT CATHAY GENERAL BANCORP Cathay General Bancorp (Nasdaq: CATY) is the holding company for Cathay Bank. Cathay General Bancorp's website is at www.cathaygeneralbancorp.com. Founded in 1962, Cathay Bank offers a wide range of financi.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in Los Angeles, Cathay General (CATY - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 15.77%. The holding company for Cathay Bank is paying out a dividend of $0.38 per share at the moment, with a dividend yield of 2.71% compared to the Banks - West industry's yield of 2.79% and the S&P 500's yield of 1.45%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 11.8% from last year. Over the last 5 years, Cathay General has increased its dividend 1 times on a year-over-year basis for an average annual increase of 2.11%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Cathay's current payout ratio is 31%, meaning it paid out 31% of its trailing 12-month EPS as dividend.
CATY is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $5.40 per share, which represents a year-over-year growth rate of 18.94%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that CATY is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Headquartered in Los Angeles, Cathay General (CATY - Free Report) is a Finance stock that has seen a price change of 20.23% so far this year. The holding company for Cathay Bank is paying out a dividend of $0.38 per share at the moment, with a dividend yield of 2.61% compared to the Banks - West industry's yield of 2.68% and the S&P 500's yield of 1.44%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 11.8% from last year. Over the last 5 years, Cathay General has increased its dividend 1 times on a year-over-year basis for an average annual increase of 2.11%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Cathay's current payout ratio is 31%, meaning it paid out 31% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for CATY for this fiscal year. The Zacks Consensus Estimate for 2026 is $5.40 per share, representing a year-over-year earnings growth rate of 18.94%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that CATY is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
