What happened?
Shares of regional bank Cathay General Bancorp (NASDAQ:CATY) jumped 5.6% in the afternoon session after the company reported third-quarter 2026 revenue above consensus estimates, supported by record net interest income. According to the company’s press release, Cathay General reported net income of $95.2 million, or $1.43 a diluted share, up from $92.2 million, or $1.37, in the prior quarter. Revenue of $254.65 million topped the $227.39 million consensus, while diluted earnings came in 2 cents light. The core driver was record net interest income of $211.9 million, up 5.5% from the second quarter and above the $207.2 million estimate, as loans grew $574.5 million to $21.20 billion — about 11% annualized, led by commercial and industrial lending — and deposits rose $773.3 million. Net interest margin expanded 4 basis points to 3.52% as higher loan yields more than offset a rise in deposit costs. A $36.1 million valuation gain on equity securities boosted noninterest income, partly offset by a $15.1 million loss on a securities repositioning that management expects to add about $2.9 million to annual net interest income. The provision for credit losses was $28.6 million, reflecting loan growth and charge-offs concentrated in three previously identified credits, while nonperforming assets fell 18%. On the call, management raised its full-year loan-growth outlook to 5%–6% from 3.5%–4.5% and its deposit-growth outlook to 4%–5% from 3%–4%, and left its net interest margin range unchanged at 3.40%–3.50%.
Is now the time to buy Cathay General Bancorp? Access our full analysis report here, it’s free.
What is the market telling us
Cathay General Bancorp’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 8 months ago when the stock dropped 5.8% on the news that hotter-than-expected inflation data and rising concerns over credit risk rattled investors. January's Producer Price Index (PPI), a measure of wholesale inflation, rose 0.5% against expectations of 0.3%, with the core component jumping 0.8%. This report fuels the narrative of "sticky inflation," suggesting the Federal Reserve may have limited room to cut interest rates. Compounding these worries are growing anxieties in the credit markets. According to a Bank of America strategist, problem loans are an increasing concern that could pressure lenders. Investors are reassessing credit risk, particularly in private-credit and leveraged-loan markets, weighing on the valuations of banks sensitive to the economic cycle.
Cathay General Bancorp is up 31.9% since the beginning of the year, and at $64.18 per share, it is trading close to its 52-week high of $64.93 from August 2026. Investors who bought $1,000 worth of Cathay General Bancorp’s shares 5 years ago would now be looking at an investment worth $1,494.
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.