
CATY Stock Forecast & Price Target
CATY Analyst Ratings
Bulls say
Cathay General Bancorp has demonstrated a positive trend in net interest margin (NIM), which expanded by 2 basis points quarter-over-quarter to reach 3.27%, indicating improved profitability from interest-earning assets. Although non-performing assets (NPAs) increased by 15% quarter-over-quarter to $199.5 million, comprising 1.01% of loans and other real estate owned (OREO), the overall management of assets shows a focus on growing the loan portfolio within its targeted demographic. The bank's diverse service offerings, including wealth management and commercial lending, position it well to continue meeting the financial needs of the Chinese-American community, contributing to a stable financial outlook.
Bears say
Cathay General Bancorp exhibited a slight decline in its allowance for credit losses (ACL), decreasing by 2 basis points to 0.88%, primarily influenced by charge-offs related to loans that had been specifically reserved. The bank has been actively repurchasing shares, with 804,000 shares bought back for $36 million, following a $150 million buyback authorization, indicating a potential use of capital that may impact future liquidity. Given the prevailing economic conditions, the company faces significant risks, including potential increases in credit costs, reduced loan demand, and margin pressure, which could adversely affect earnings in the near term.
This aggregate rating is based on analysts' research of Cathay General Bancorp and is not a guaranteed prediction by Public.com or investment advice.
CATY Analyst Forecast & Price Prediction
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