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

Cathay General Bancorp

Yesterday 21:45

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: ID:nBwv50Wza

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.)