Key Highlights

● Cathay traded at $64.18 on October 22, an intraday reading near its 52-week high.

● Third-quarter revenue of $254.65 million beat the $227.39 million consensus.

● Net interest income reached a record $211.9 million.

● Earnings of $1.43 a share came in 2 cents below estimates.

Shares of Cathay General Bancorp (NASDAQ:CATY) rallied on Thursday, October 22, 2026, climbing toward a 52-week high after the bank reported record net interest income and lifted its full-year loan growth forecast. The move made Cathay one of the stronger financial stocks on the Nasdaq Composite, which otherwise suffered its worst day since June.

The stock traded at $64.18, near its 52-week high. That figure is an intraday reading rather than a confirmed close.

Record interest income drove the quarter

Cathay reported third-quarter revenue of $254.65 million, well ahead of the $227.39 million consensus estimate. Net interest income, the difference between what a bank earns on loans and investments and what it pays on deposits, reached a record $211.9 million.

The bank's net interest margin also widened slightly from the prior quarter, a sign that it is earning more on its assets relative to its funding costs.

Not every number beat. Earnings per share of $1.43 came in 2 cents below analysts' estimates. But investors appeared to look past the small miss and focus on the strength of revenue and the improved outlook.

A stronger growth outlook

Cathay raised its full-year guidance for loan growth and set an outlook for deposit growth. Higher loan growth generally supports future interest income, since loans are a bank's main source of earnings.

Cathay General Bancorp is the holding company for Cathay Bank, a Los Angeles-based lender with a long history of serving Chinese-American communities and businesses with ties to Asia.

Banks had a good day

Cathay's rise came as financial stocks broadly gained. The S&P 500 financials sector rose, part of a rotation away from technology and into defensive and value-oriented sectors.

Other regional banks reporting results also rallied. Valley National Bancorp (NASDAQ:VLY) climbed after beating estimates and posting its best efficiency ratio since the third quarter of 2021, while S&T Bancorp (NASDAQ:STBA) rose after reporting record quarterly earnings per share.

The bond market provided a supportive backdrop. Treasuries rallied hard, and the 10-year yield fell back below a closely watched threshold for the first time since September 22. Initial jobless claims of 194,000, the fewest in about three months, pointed to a resilient labor market.

Tech dragged the indexes

The headline indexes told a different story. Heavy AI spending and negative free cash flow at Meta Platforms (NASDAQ:META), together with cautious guidance from Lam Research (NASDAQ:LRCX), triggered a selloff in chip and AI stocks. The Nasdaq Composite fell 694.00 points to 26,008.86, its steepest drop since June 5, and lost about $1 trillion in market value, according to market data.

But about two of every three S&P 500 stocks rose, according to market reports, and the Dow Jones Industrial Average edged up 11.89 points to 52,867.98. The S&P 500 recorded 40 new 52-week highs against four new lows, according to market data.

Cathay Watches Rates, Credit and Deposits

Investors will watch whether Cathay can push through to a new 52-week high in coming sessions. The path of interest rates matters for banks' margins, making the Federal Reserve's decision on Wednesday, October 28, a key event. Credit quality and deposit trends will also be in focus as more regional lenders report in the days ahead.