Cathay General Bancorp, the holding company for Cathay Bank, reported net income of $92.2 million, or $1.37 per diluted share, for the second quarter ended June 30, 2026, compared to $86.9 million, or $1.29 per diluted share, for the first quarter of 2026. The results reflect a 6.1% sequential increase in net income, driven by net interest margin expansion and disciplined execution. Diluted earnings per share of $1.37 beat the analyst consensus estimate of $1.34 by 2.24%, and quarterly sales of $222.302 million exceeded the analyst consensus estimate of $218.278 million by 1.84%, representing a 13.07% increase over the same period a year ago.

"We delivered strong second quarter results, with higher earnings driven by continued net interest margin expansion and disciplined execution across the franchise," said Chang M. Liu, President and Chief Executive Officer. "We remain focused on maintaining strong credit quality, prudently managing the balance sheet, and supporting the financial needs of our clients."

Financial Performance Summary

The following table summarizes key performance metrics for the second quarter of 2026 compared to prior periods:

Net Interest Income and Margin

Net interest income before provision for credit losses increased $6.7 million, or 3.5%, to $200.9 million in the second quarter of 2026, compared to $194.2 million in the first quarter of 2026. The net interest margin expanded to 3.48% from 3.43% in the prior quarter. The yield on average interest-earning assets was 5.66%, while the cost of funds on average interest-bearing liabilities declined to 2.89% from 2.99% in the first quarter of 2026, driven primarily by lower repricing of maturing time deposits. The net interest spread widened to 2.77% from 2.71% sequentially.

Non-Interest Income and Expense

Non-interest income was $21.4 million for the second quarter of 2026, an increase of $0.7 million, or 3.4%, compared to $20.7 million in the first quarter of 2026. The increase was primarily due to a $5.1 million reduction in losses related to investment securities repositioning and an increase of $0.8 million in wealth management fees, partially offset by a decrease of $5.7 million in unrealized gains from equity securities. Non-interest expense increased $5.6 million, or 6.5%, to $92.3 million, driven by higher amortization of low-income housing and alternative energy partnership investments, increased salaries and employee benefits, and higher director fees.

Credit Quality and Provisions

The provision for credit losses was $11.2 million in the second quarter of 2026, compared to $18.2 million in the first quarter of 2026. The allowance for loan losses increased by $10.1 million to $218.9 million, representing 1.06% of gross loans and 195.97% of non-performing loans as of June 30, 2026. Total non-accrual loans were $111.7 million, an increase of $22.7 million, or 25.5%, from $89.0 million as of March 31, 2026. Total non-performing assets increased $17.5 million, or 13.7%, to $145.4 million as of June 30, 2026.

Balance Sheet Highlights

The following table presents key balance sheet metrics across reporting periods:

Gross loans, excluding loans held for sale, increased $446.7 million, or 2.2%, from March 31, 2026, driven by growth in commercial loans (+$242.4 million), commercial real estate loans (+$190.6 million), and residential real estate loans (+$53.6 million). Total deposits increased $386.0 million, or 1.9%, to $21.06 billion.

Capital Adequacy and Year-to-Date Performance

As of June 30, 2026, the Company's Tier 1 risk-based capital ratio was 13.70%, total risk-based capital ratio was 15.47%, and Tier 1 leverage capital ratio was 11.28%, all exceeding applicable minimum regulatory capital requirements under Basel III rules. The Board approved an increase to its existing share repurchase authorization from $150 million to $200 million, subject to regulatory approval, and approved the redemption of $54.1 million of trust preferred securities, representing approximately 45% of the Company's $119.1 million of outstanding trust preferred securities.

For the six months ended June 30, 2026, net income was $179.1 million, an increase of $32.1 million, or 21.8%, compared to $147.0 million for the same period a year ago. Diluted earnings per share for the six-month period was $2.66, compared to $2.09 for the same period a year ago. The net interest margin for the six months ended June 30, 2026, was 3.45%, compared to 3.26% for the same period a year ago.

Cathay General Bancorp, 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. The announcement will provide insights into the bank's performance for the quarter, with stakeholders able to access the details via a live webcast or conference call.

The company has organized a conference call to discuss the financial results, allowing analysts and investors to participate in a question-and-answer session. The call is set to last for one hour, providing an opportunity for detailed discussion on the quarterly metrics.

Conference Call Details

The following table outlines the key details for the upcoming conference call:

Participants are advised to join the live conference call 5 to 10 minutes before the scheduled start time to ensure a smooth connection. A listen-only live webcast of the call will be available at www.cathaygeneralbancorp.com . The recorded version will be accessible for replay within 24 hours after the call and will be archived for one year.

About Cathay General Bancorp

Cathay General Bancorp serves as the holding company for Cathay Bank. Founded in 1962, Cathay Bank offers a wide range of financial services and operates over 60 branches across the United States. Its domestic presence includes California, New York, Washington, Texas, Illinois, Massachusetts, Maryland, Nevada, and New Jersey. Internationally, the bank maintains a branch in Hong Kong and representative offices in Beijing, Shanghai, and Taipei.