Cathay General Bancorp Q3 net income rises on higher interest income from loans

By Reuters News


Overview

  • U.S. regional bank's Q3 net income and EPS rose from prior quarter and year-ago period

  • Net interest income reached a record, with net interest margin expanding to 3.52%

  • Company completed redemption of $54.1 mln Trust Preferred Securities


Outlook

  • Company did not provide specific financial guidance for upcoming quarters or full year in its press release


Result Drivers

  • NET INTEREST INCOME - Increased net interest income before provision for credit losses was driven mainly by higher interest income from loans and deposits with banks

  • LOAN AND DEPOSIT GROWTH - Total loans, excluding loans held for sale, rose 2.79% and total deposits increased 3.67% sequentially, supporting loan growth and balance sheet positioning

  • NON-INTEREST INCOME - Non-interest income nearly doubled from the prior quarter, mainly due to higher net gains from equity securities and a benefit from redemption of Trust Preferred Securities


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$1.43

Q3 Net Income

$95.2 mln

Q3 Net Interest Income

$211.9 mln

Q3 Net Interest Margin (%)

3.52%


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy."

  • Wall Street's median 12-month price target for Cathay General Bancorp is $66.00, about 8.8% above its October 20 closing price of $60.67

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Oct 20 - East West Bancorp Q3 revenue beats estimates on loan and deposit growth

  • Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality

  • Oct 21 - Pinnacle Financial Partners Q3 adjusted profit beats estimates on loan, fee income growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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