Cathay General Bancorp announced unaudited financial results for the quarter ended September 30, 2026, reporting net income of $95.2 million, or $1.43 per diluted share. This represents an increase of $3.0 million, or 3.3%, compared to the second quarter of 2026, where net income was $92.2 million, or $1.37 per diluted share.
Key highlights for the third quarter included a record net interest income of $211.9 million, an increase of $11.0 million, or 5.5%, from the prior quarter. The net interest margin expanded by four basis points to 3.52%. Total loans, excluding loans held for sale, increased by $574.5 million, or 2.79%, to $21.20 billion, while total deposits grew by $773.3 million, or 3.67%, to $21.83 billion.
Asset quality metrics improved during the period. Nonperforming assets declined by $26.2 million, or 18.0%, and the ratio of nonperforming assets to total assets improved to 0.47% from 0.59%. The provision for credit losses was $28.6 million. Additionally, the company completed the redemption of $54.1 million of Trust Preferred Securities, representing approximately 45% of its outstanding TruPS.
Return on average assets was 1.51%, and return on average total stockholders' equity was 12.28%. The efficiency ratio was 40.60%. Non-interest income for the quarter was $42.8 million, an increase of $21.4 million, or 99.8%, driven primarily by net gains from equity securities. Non-interest expense increased to $103.4 million, largely due to a charitable contribution to the Cathay Bank Foundation and a contract termination fee.
