Cathay General Raises 2026 Loan Growth Outlook After Quarterly Gains

Cathay General Bancorp raised its 2026 loan growth outlook on Oct. 21 after quarterly lending and deposits increased, setting a faster expansion pace while holding its net interest margin forecast steady.

The bank now projects period-end loan growth of 5% to 6%, up from 3.5% to 4.5%. Its deposit growth outlook rose to 4% to 5%, from 3% to 4%. The full-year net interest margin range remains 3.40% to 3.50%. The forecast assumes two 25-basis-point rate increases in 2026, one in September and another in December.

Between June 30 and Sept. 30, gross loans excluding loans held for sale increased $574.5 million, or 2.79%, to $21.20 billion. Deposits gained $773.3 million, or 3.67%, to $21.83 billion. Those figures compare quarter-end balances, while the revised outlook covers the full year.

Third-quarter net interest income totaled $211.9 million, up $11 million, or 5.5%, from the second quarter. Net interest margin was 3.52%, compared with 3.48% in the prior quarter. Cathay General reported net income of $95.2 million, or $1.43 per diluted share.

Three borrower-specific credits drove most of the quarter’s $25.287 million in net charge-offs, an annualized 0.48% of average loans. Nonperforming assets totaled $119.182 million on Sept. 30, down 18% from June 30.

Cathay General is the holding company for Cathay Bank, a California-chartered bank with more than 60 U.S. branches. President and Chief Executive Officer Chang M. Liu said the third-quarter results reflected “strong performance across the franchise.”