Cathay General Bancorp (CATY) Reports 16.5% Net Income Growth to $90.5 Million in Q4 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Net Income Growth: Cathay General Bancorp reported a net income of $90.5 million for Q4 2025, reflecting a 16.5% increase from $77.7 million in Q3, demonstrating effective strategies in credit management and revenue diversification.
- Earnings Per Share Increase: Diluted earnings per share rose from $1.13 in Q3 to $1.33, an 18.3% increase, indicating enhanced profitability and increased investor confidence in the company's performance.
- Loan and Deposit Growth: Total loans grew by $42 million, primarily driven by increases in commercial real estate and residential loans, while total deposits increased by $373 million, with expectations for deposit growth of 4% to 5% in 2026, further solidifying the company's market position.
- Capital Ratio Improvement: Capital ratios improved slightly across Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, indicating robust performance in capital management and risk control, laying a solid foundation for future growth.
Analyst Views on CATY
Wall Street analysts forecast CATY stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CATY is 50.67 USD with a low forecast of 45.00 USD and a high forecast of 55.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
0 Buy
2 Hold
1 Sell
Moderate Sell
Current: 52.440
Low
45.00
Averages
50.67
High
55.00
Current: 52.440
Low
45.00
Averages
50.67
High
55.00
About CATY
Cathay General Bancorp is the holding company of Cathay Bank (the Bank). The Bank offers a range of financial services and operates over 60 branches across the United States in California, New York, Washington, Texas, Illinois, Massachusetts, Maryland, Nevada, and New Jersey. It also has a branch outlet in Hong Kong, and representative offices in Beijing, Shanghai, and Taipei. The Bank provides financial services to diverse commercial and professional businesses in its market areas. It offers products and services to businesses, such as checking and deposit, lines of credits, commercial and commercial real estate loans, merchant services and payment processing, treasury management services, international banking and financing services, and other customary banking services. Through its Cathay Wealth Management business unit, the Bank offers clients a range of investment products and services, such as stocks, bonds, mutual funds, insurance, annuities, and advisory services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
