Cathay General Bancorp (NASDAQ: CATY)

Cathay General Bancorp, also known as Cathay Bank, is a California-based bank holding company operating primarily in the banking sector. Its subsidiary, Cathay Bank, offers a range of financial services to individuals, professionals, and small to medium-sized businesses in the local markets where its branches are situated.

Cathay Bank's offerings encompass a variety of deposit products such as passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits. Additionally, the bank provides a wide array of loan products that includes commercial real estate loans, commercial loans, Small Business Administration (SBA) loans, residential mortgage loans, real estate construction loans, home equity lines of credit, and installment loans.

The bank's primary market area is defined by the Community Reinvestment Act (CRA) delineation, which includes the areas surrounding each of its branch offices. Cathay Bank's lending policies necessitate regular reviews of its loan portfolio to ensure the quality of its assets. When a loan turns non-performing, the bank can place it on non-accrual status, require additional allowance for loan losses, and charge-off a portion or all of the loan.

Cathay Bank faces substantial competition from various banks and financial institutions within its operating regions. To remain competitive, the bank leverages personal contacts by its officers, directors, employees, and stockholders, its long-standing relationships with Chinese-American communities, responsiveness to client needs, local promotional activities, availability and pricing of loan and deposit products, extended hours on weekdays, Saturday banking in specific locations, internet banking, and other specialized services.

Cathay General Bancorp's employees are vital to its success, and the company invests in its workforce by providing quality training, promoting diversity and inclusion, and upholding high ethical standards and human rights respect. As of December 31, 2023, Cathay Bank employed approximately 1,246 regular full-time equivalent employees, with 1,207 in the United States and 39 in China, Hong Kong, and Taiwan.

In terms of diversity and inclusion, Cathay Bank believes its future success hinges on attracting qualified employees from diverse backgrounds. The company has made a commitment to diversity and inclusion, as reflected in its employee demographics. As of December 31, 2023, 80% of the bank's employees were of Asian descent, 13% were members of non-Asian traditionally underrepresented racial/ethnic groups, and 7% were Caucasian. At the manager-level, 73% were of Asian descent, 13% were members of non-Asian traditionally underrepresented racial/ethnic groups, and 14% were Caucasian.

Cathay General Bancorp operates through its subsidiary, Cathay Bank, providing a range of banking services to individuals, professionals, and small to medium-sized businesses in the local markets where its branches are located. The company's commitment to diversity and providing quality banking services has enabled it to maintain a strong presence in the banking industry.

The bank's revenue streams stem from a variety of deposit products and loan offerings, serving a diverse customer base that includes individuals, professionals, and small to medium-sized businesses. Cathay Bank operates two primary segments: Commercial Banking and Consumer Banking. The Commercial Banking segment provides a range of banking services to small to medium-sized businesses, while the Consumer Banking segment offers services to individuals.

Cathay General Bancorp competes with other financial institutions, including banks, thrifts, and credit unions, for deposits and loans in the California market. The company has established a strong brand recognition, an extensive network of branches, and a diverse customer base, differentiating it from competitors. Cathay General Bancorp is subject to extensive regulation and has implemented robust risk management, capital adequacy, liquidity, anti-money laundering, and consumer compliance programs.