# Cathay General Bancorp: AI strategy

Source: https://www.bankingnewsai.com/banks/cathay
Last updated: Oct 13, 2026

*The largest Chinese-American bank in the US runs one of the sector's lowest efficiency ratios and a widening net interest margin, with a corporate responsibility report that covers information security in depth and no public AI programme.*

## How is Cathay Bank using AI?

Cathay General Bancorp, the Los Angeles holding company for Cathay Bank, founded in 1962 and now about $24 billion of assets, 64 branches in nine states and Hong Kong and 1,268 team members, is a study in efficiency without an AI narrative. Full-year 2025 net income was $315.1 million, up 10.2%, or $4.54 per diluted share, with a 1.33% return on assets; the second quarter of 2026 brought net income of $92.2 million, or $1.37 per share, a 1.52% return on assets and a net interest margin of 3.48%, up from 3.43% in the first quarter and 3.27% a year earlier, on an efficiency ratio that ran near 40% in the first quarter. President and CEO Chang M. Liu attributes the results to 'continued net interest margin expansion and disciplined execution across the franchise' and 'the strength of our relationships and the resilience of our business model'. On technology the bank's disclosures are about protection rather than automation: its 2025 corporate responsibility report devotes a section to information security and cybersecurity, covering guidelines and framework, training and awareness, independent reviews and staff skill development, and its 2025 annual report discusses capital rules and climate-risk principles at length without mentioning artificial intelligence, machine learning, an AI leader, vendor or budget. Cathay's board includes a director who ran global compliance strategy, technology and operations at JPMorgan and international risk oversight at Wells Fargo. The SEC filings confirm the silence: the 2025 10-K, filed in March 2026, does not mention artificial intelligence or machine learning anywhere, including its risk factors, where the technology risk is framed as competition ('Some of our competitors have substantially greater resources to invest in technological improvements than we currently have'), and neither does the second-quarter 2026 10-Q; AI did not come up on any of the last six earnings calls (Q1 2025 to Q2 2026). The only AI reference in the filings is on the board: the 2026 proxy statement says audit committee chair Elizabeth Woo, a USC accounting professor and former head of audit methodology at Crowe, 'brings to the Board her insight into Data Analytics, Automation and Artificial Intelligence', alongside former IBM Greater China general manager Shally Wang's IT and information-security experience. Cathay Bank is a California state nonmember bank supervised by the FDIC and the California DFPI, so any future AI in credit or AML would fall under FDIC model-risk guidance and California's automated-decision rules. Treat this as a thin record for a bank whose competitive edge is cost discipline, not disclosed technology.

*Thin public record: No AI remarks on its last six earnings calls (Q1 2025 to Q2 2026), no mention of AI anywhere in its 2025 10-K or latest 10-Q, no named AI leader or vendor; the only AI reference in its filings is one director's expertise.*

## At a glance

| Field | Value |
| --- | --- |
| Lead bank | Cathay Bank |
| Ticker | CATY |
| Headquarters | Los Angeles, CA |
| Consolidated assets | $24,641 million |
| Federal Reserve rank | 79 |
| Charter | California state nonmember bank (FDIC) |

## What AI partnerships and patents does Cathay Bank have?

Cathay Bank has no public AI partnership and no AI patent. Its only named technology vendors are NICE Actimize and LexisNexis Bridger Insight, listed in its 2025 Wolfsberg AML questionnaire without any statement about AI. A Google Patents search on 14 October 2026 for patents assigned to Cathay Bank returned none; the 2025 10-K and the last six earnings calls name no AI lab, cloud or data partner. Cathay Financial Holdings in Taiwan, which announced an OpenAI partnership, is a separate group. ([Cathay Bank](https://cathaybank.com/anti-money-laundering/questionnaire), [Cathay General Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/861842/000143774926006157/caty20251231c_10k.htm))

| Item | What it is | Status | Date | Sources |
| --- | --- | --- | --- | --- |
| NICE Actimize (AML Essentials, SAM, CDD) | Financial-crime software named in the Wolfsberg questionnaire; AI use not stated | In production | 2025-05-08 | [Cathay Bank](https://cathaybank.com/anti-money-laundering/questionnaire) |
| LexisNexis Bridger Insight and Compliance Link | Sanctions and Travel Rule screening tools named in the Wolfsberg questionnaire; AI use not stated | In production | 2025-05-08 | [Cathay Bank](https://cathaybank.com/anti-money-laundering/questionnaire) |

## Key points

- No AI programme, leader, vendor or budget disclosed; the 2025 annual report and corporate responsibility report do not mention AI.
- Cybersecurity is the disclosed technology priority: framework, training, independent reviews and skill development in the 2025 corporate responsibility report.
- 2025 net income $315.1 million (+10.2%), EPS $4.54, ROA 1.33%; Q2 2026 net income $92.2 million, EPS $1.37, ROA 1.52%.
- Net interest margin 3.48% in Q2 2026, up from 3.43% in Q1 and 3.27% a year earlier; efficiency ratio 40.35% in Q1 and 41.53% in Q2 2026.
- Footprint: about $24 billion of assets, 64 branches in nine states and Hong Kong, 1,268 team members.
- Board technology and compliance depth from former JPMorgan and Wells Fargo executives.
- Filings: the 2025 10-K and Q2 2026 10-Q contain no reference to AI; the 10-K's technology risk factor warns that larger competitors out-invest Cathay on technology.
- Board AI expertise: audit chair Elizabeth Woo is credited in the 2026 proxy with insight into data analytics, automation and AI; no AI remarks on the last six earnings calls (Q1 2025 to Q2 2026).
- Six earnings calls from Q1 2025 to Q2 2026 contain no mention of artificial intelligence, and the FY2023, FY2024 and FY2025 10-Ks and the Q3 2025, Q1 2026 and Q2 2026 10-Qs contain none either.
- No chief information, technology, data or AI officer is named: the 2025 10-K lists seven executive officers, and the chief information security officer reports to Chief Risk Officer Diana Deen, who joined on 21 January 2025 after heading global compliance strategy, technology and operations at JPMorgan from 2008 to 2013.
- Technology cost is rising from a small base: computer and equipment expense was $23.2 million in 2025 against $20.1 million in 2024 and $17.5 million in 2023, and data processing service expense was $17.5 million against $16.4 million and $14.7 million.
- Cyber is the measured programme: an independent 2025 assessment against NIST Cybersecurity Framework 2.0 averaged 3.16, the information security team logged more than 700 hours of continuing education, and the bank reports no material data breaches.
- Its 2025 Wolfsberg questionnaire names NICE Actimize (AML Essentials, SAM, CDD) and LexisNexis Bridger Insight and Compliance Link as vendor tools in its AML and sanctions answers, the only named technology vendors in the public record; it does not say either uses AI.
- Adjusted efficiency ratio was 37.0% in Q2 2026 against a reported 41.5%, which management attributed to low-income housing tax credit amortization; Forbes ranked Cathay 15th on its first America's Most Cybersecure Banks list in March 2024.

## Timeline

- Aug 7, 2026 — **Q2 2026 10-Q: still no AI reference** The quarterly report for the period ended 30 June 2026 does not mention artificial intelligence or machine learning; computer and equipment expense was $6.6 million in the quarter against $5.2 million a year earlier. ([Cathay General Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/861842/000143774926026554/caty20260630_10q.htm))
- Jul 22, 2026 — **Second-quarter 2026 results** Net income $92.2 million; EPS $1.37; net interest margin up to 3.48% from 3.43%, the eighth consecutive quarter of expansion; adjusted efficiency ratio 37.0%; no AI remarks on the call. ([Cathay General Bancorp](https://cathaygeneralbancorp.com/CGB/pr-20260722), [Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-cathay-general-bancorp-tops-q2-2026-estimates-93CH-4807238))
- Jul 1, 2026 — **2025 corporate responsibility report** Information security and cybersecurity section: independent NIST Cybersecurity Framework 2.0 assessment averaging 3.16 and more than 700 hours of team training; $24 billion in assets; 64 branches. ([Cathay General Bancorp](https://cathaybank.com/CGB/ESG-report-2025))
- May 8, 2026 — **Q1 2026 10-Q: no AI reference** The quarterly report for the period ended 31 March 2026 does not mention artificial intelligence. ([Cathay General Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/861842/000143774926015940/caty20260331c_10q.htm))
- May 7, 2026 — **US-China annual economic report** Cross-border trade analysis for clients. ([Cathay Bank](https://cathaybank.com/US-China-Annual-Report-2026-EN))
- Apr 22, 2026 — **First-quarter 2026 results** Net income $86.9 million; $1.29 per diluted share; efficiency ratio 40.4% (36.9% adjusted); the call contains no AI remarks. ([Cathay General Bancorp](https://cathaygeneralbancorp.com/CGB/pr-20260422), [The Motley Fool (earnings call transcript)](https://fool.com/earnings/call-transcripts/2026/04/22/cathay-caty-q1-2026-earnings-call-transcript))
- Apr 16, 2026 — **2026 proxy: director credited with AI insight** Audit chair Elizabeth Woo brings insight into data analytics, automation and artificial intelligence. ([Cathay General Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/861842/000143774926012477/caty20260328_def14a.htm))
- Mar 31, 2026 — **2025 annual report** Net income $315.1 million; EPS $4.54; no AI discussion. ([Cathay General Bancorp](https://cathaybank.com/CGB/annual-report-2025))
- Mar 2, 2026 — **2025 10-K: technology risk without AI** No mention of artificial intelligence; the technology risk factor says some competitors have substantially greater resources to invest in technology. ([Cathay General Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/861842/000143774926006157/caty20251231c_10k.htm))
- Jan 22, 2026 — **Q4 2025 call: fourth call of 2025 without an AI remark** Net income of $90.5 million for the quarter; none of the Q1, Q2, Q3 or Q4 2025 earnings calls mentions artificial intelligence. ([Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-cathay-general-bancorp-beats-q4-2025-earnings-forecasts-93CH-4461755), [Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-cathay-general-bancorp-q1-2025-beats-eps-forecast-93CH-3994460), [Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-cathay-general-bancorp-sees-strong-q2-2025-growth-93CH-4286918), [The Motley Fool (earnings call transcript)](https://fool.com/earnings/call-transcripts/2026/04/22/cathay-caty-q3-2025-earnings-call-transcript))
- Nov 7, 2025 — **Q3 2025 10-Q: no AI reference** The quarterly report for the period ended 30 September 2025 does not mention artificial intelligence. ([Cathay General Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/861842/000143774925033885/caty20250930_10q.htm))
- May 8, 2025 — **Wolfsberg AML questionnaire signed** Correspondent-banking due-diligence responses signed by Chief Administrative Officer Thomas Lo and Marisa Marquisepe; names NICE Actimize and LexisNexis Bridger Insight as vendor tools. ([Cathay Bank](https://cathaybank.com/anti-money-laundering/questionnaire))
- Apr 10, 2025 — **2025 proxy credits director with AI insight** The first proxy after her election says Elizabeth Woo brings insight into data analytics, automation and artificial intelligence. ([Cathay General Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/861842/000143774925011577/caty20250326_def14a.htm))
- Feb 28, 2025 — **FY2024 10-K: no AI reference** The annual report filed in February 2025 does not mention artificial intelligence or machine learning. ([Cathay General Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/861842/000143774925005749/caty20241231_10k.htm))
- Jan 17, 2025 — **Diana Deen named Chief Risk Officer** Succeeds Kim Bingham from 21 January 2025; she previously headed global compliance strategy, technology and operations at JPMorgan. ([Cathay General Bancorp](https://cathaybank.com/CGB/pr-20250117))
- May 17, 2024 — **Board adds a former CTO and a data-analytics specialist** Ann Yee Kono (formerly chief technology officer and chief information and risk officer at Ares Management) and Elizabeth Woo (former head of audit methodology at Crowe) join the board. ([Cathay General Bancorp](https://www.cathaybank.com/CGB/pr-20240517))
- Mar 25, 2024 — **Forbes ranks Cathay 15th most cybersecure bank** First-ever Forbes list of America's Most Cybersecure Banks; Cathay was the highest-ranked California bank, and the bank credited its CISO Chris Stoneley. ([Cathay Bank](https://www.cathaybank.com/about-us/insights-by-cathay/cathay-bank-ranked-forbes-americas-most-cybersecure-banks))
- Feb 29, 2024 — **FY2023 10-K: cybersecurity item, no AI** The first 10-K with Item 1C says the chief information security officer reports directly to the Chief Risk Officer; the filing does not mention artificial intelligence. ([Cathay General Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/861842/000143774924005948/caty20231231_10k.htm))

## Where AI runs

| Use case | What | Status | Detail | Sources |
| --- | --- | --- | --- | --- |
| [Cybersecurity](https://www.bankingnewsai.com/ai-regulation/by-use-case#cybersecurity) | Information security programme | In production | Framework, training, independent reviews and staff skill development. | [Cathay General Bancorp](https://cathaybank.com/CGB/ESG-report-2025) |
| [AML / KYC](https://www.bankingnewsai.com/ai-regulation/by-use-case#aml-kyc) | AML and sanctions compliance (Wolfsberg questionnaire) | In production | Published correspondent-banking due-diligence responses. | [Cathay Bank](https://cathaybank.com/anti-money-laundering/questionnaire) |
| [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general) | No disclosed AI deployment | Announced | Annual and responsibility reports silent on AI. | [Cathay General Bancorp](https://cathaybank.com/CGB/annual-report-2025) |
| [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general) | Board oversight with AI expertise | In production | Audit committee chair credited with insight into data analytics, automation and AI; a second director brings IT and information-security experience. | [Cathay General Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/861842/000143774926012477/caty20260328_def14a.htm) |
| [Model risk management](https://www.bankingnewsai.com/ai-regulation/by-use-case#model-risk) | Technology-change risk factor (no AI reference) | In production | The 10-K frames technology risk as implementation cost, disruption and better-resourced competitors, without mentioning AI; the Q2 2026 10-Q is also silent on AI. | [Cathay General Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/861842/000143774926006157/caty20251231c_10k.htm), [Cathay General Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/861842/000143774926026554/caty20260630_10q.htm) |
| [Third-party & vendor AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#third-party-vendors) | Vendor Management Office onboarding review | In production | Information Security and Information Technology teams engage early with the Project Management Office and Vendor Management Office so new products, projects and vendors are onboarded with oversight; cybersecurity feeds from vendors go into patch and vulnerability tools. | [Cathay General Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/861842/000143774926006157/caty20251231c_10k.htm) |
| [AML / KYC](https://www.bankingnewsai.com/ai-regulation/by-use-case#aml-kyc) | AML monitoring and sanctions screening tools (NICE Actimize, LexisNexis Bridger) | In production | The 2025 Wolfsberg questionnaire names NICE Actimize AML Essentials, SAM and CDD and LexisNexis Bridger Insight and Compliance Link as vendor tools, run as a combination of automated and manual review; it does not describe AI or machine learning. | [Cathay Bank](https://cathaybank.com/anti-money-laundering/questionnaire) |
| [Cybersecurity](https://www.bankingnewsai.com/ai-regulation/by-use-case#cybersecurity) | Independent NIST Cybersecurity Framework 2.0 assessment | In production | In 2025 an independent consultant and internal testing scored the bank's controls at an average of 3.16 against NIST CSF 2.0; third-party experts also run intrusion and penetration tests. | [Cathay General Bancorp](https://cathaybank.com/CGB/ESG-report-2025), [Cathay General Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/861842/000143774926006157/caty20251231c_10k.htm) |
| [Cybersecurity](https://www.bankingnewsai.com/ai-regulation/by-use-case#cybersecurity) | Phishing simulations and staff cyber training | In production | Team members complete training on protecting information and report suspicious emails; periodic phishing simulations run through the year and the Information Security team logged more than 700 hours of continuing education in 2025. | [Cathay General Bancorp](https://cathaybank.com/CGB/ESG-report-2025) |
| [Fraud detection](https://www.bankingnewsai.com/ai-regulation/by-use-case#fraud) | Positive pay and account alerts (no AI described) | In production | The 2025 annual report cites positive pay features for fraud protection on client trust accounts; the bank's client guidance covers customised account alerts and does not mention AI-based detection. | [Cathay General Bancorp](https://cathaybank.com/CGB/annual-report-2025) |

## Disclosed numbers

| Measure | Value | As of | Sources |
| --- | --- | --- | --- |
| 2025 net income / diluted EPS | $315.1 million / $4.54 | Mar 31, 2026 | [Cathay General Bancorp](https://cathaybank.com/CGB/annual-report-2025) |
| Q2 2026 net income / diluted EPS | $92.2 million / $1.37 | Jul 22, 2026 | [Cathay General Bancorp](https://cathaygeneralbancorp.com/CGB/pr-20260722) |
| Return on average assets, Q2 2026 | 1.52% | Jul 22, 2026 | [Cathay General Bancorp](https://cathaygeneralbancorp.com/CGB/pr-20260722) |
| Branches / team members | 64 / 1,268 | Dec 31, 2025 | [Cathay General Bancorp](https://cathaybank.com/CGB/ESG-report-2025) |
| Computer and equipment expense, 2025 (2024; 2023) | $23.2 million ($20.1 million; $17.5 million) | Dec 31, 2025 | [Cathay General Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/861842/000143774926006157/caty20251231c_10k.htm) |
| Data processing service expense, 2025 (2024; 2023) | $17.5 million ($16.4 million; $14.7 million) | Dec 31, 2025 | [Cathay General Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/861842/000143774926006157/caty20251231c_10k.htm) |
| Computer and equipment expense, Q2 2026 (Q2 2025) | $6.6 million ($5.2 million) | Jun 30, 2026 | [Cathay General Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/861842/000143774926026554/caty20260630_10q.htm) |
| Independent NIST CSF 2.0 assessment, average score | 3.16 | Dec 31, 2025 | [Cathay General Bancorp](https://cathaybank.com/CGB/ESG-report-2025) |
| Information security team continuing education | More than 700 hours | Dec 31, 2025 | [Cathay General Bancorp](https://cathaybank.com/CGB/ESG-report-2025) |
| Adjusted efficiency ratio, Q2 2026 (reported) | 37.0% (41.5%) | Jul 22, 2026 | [Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-cathay-general-bancorp-tops-q2-2026-estimates-93CH-4807238) |
| Earnings calls with an AI mention, Q1 2025 to Q2 2026 | 0 of 6 | Jul 22, 2026 | [Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-cathay-general-bancorp-q1-2025-beats-eps-forecast-93CH-3994460), [Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-cathay-general-bancorp-sees-strong-q2-2025-growth-93CH-4286918), [The Motley Fool (earnings call transcript)](https://fool.com/earnings/call-transcripts/2026/04/22/cathay-caty-q3-2025-earnings-call-transcript), [Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-cathay-general-bancorp-beats-q4-2025-earnings-forecasts-93CH-4461755), [The Motley Fool (earnings call transcript)](https://fool.com/earnings/call-transcripts/2026/04/22/cathay-caty-q1-2026-earnings-call-transcript), [Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-cathay-general-bancorp-tops-q2-2026-estimates-93CH-4807238) |

## Quotes

> "We delivered strong second quarter results, with higher earnings driven by continued net interest margin expansion and disciplined execution across the franchise." — Chang M. Liu, President and CEO, Jul 22, 2026 ([Cathay General Bancorp](https://cathaygeneralbancorp.com/CGB/pr-20260722))

> "Net interest income increased to $200.9 million and net interest margin expanded to 3.48%, marking the eighth consecutive quarter of NIM expansion." — Chang M. Liu, President and CEO, Jul 22, 2026 ([Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-cathay-general-bancorp-tops-q2-2026-estimates-93CH-4807238))

> "Our reported efficiency ratio increased to 41.5% from 40.4% last quarter, primarily due to higher low-income housing tax credit amortization." — Chang M. Liu, President and CEO, Jul 22, 2026 ([Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-cathay-general-bancorp-tops-q2-2026-estimates-93CH-4807238))

> "Elizabeth comes with a deep knowledge and understanding of data analytics and audit oversight." — Dunson K. Cheng, Executive Chairman, May 17, 2024 ([Cathay General Bancorp](https://www.cathaybank.com/CGB/pr-20240517))

> "Hats off to our Senior Vice President and Chief Information Security Officer Chris Stoneley and his team for their hard work and dedication to protecting client information." — Thomas M. Lo, Executive Vice President and Chief Administrative Officer, Mar 25, 2024 ([Cathay Bank](https://www.cathaybank.com/about-us/insights-by-cathay/cathay-bank-ranked-forbes-americas-most-cybersecure-banks))

## Who runs AI

- **Chang M. Liu** — President and CEO ([LinkedIn](https://www.linkedin.com/in/chang-m-liu-39137469)) ([Cathay General Bancorp](https://cathaygeneralbancorp.com/CGB/pr-20260722), [Cathay General Bancorp](https://cathaybank.com/CGB/annual-report-2025))
- **Dunson K. Cheng** — Executive Chairman ([LinkedIn](https://www.linkedin.com/in/dunson-cheng-71634714)) ([Cathay General Bancorp](https://cathaybank.com/CGB/annual-report-2025))
- **Diana G. Deen** — Executive Vice President and Chief Risk Officer (the chief information security officer reports to her) ([Cathay General Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/861842/000143774926006157/caty20251231c_10k.htm), [Cathay General Bancorp](https://cathaybank.com/CGB/pr-20250117))
- **Thomas M. Lo** — Executive Vice President and Chief Administrative Officer; co-signatory of the 2025 AML questionnaire ([Cathay General Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/861842/000143774926006157/caty20251231c_10k.htm), [Cathay Bank](https://cathaybank.com/anti-money-laundering/questionnaire), [Cathay Bank](https://www.cathaybank.com/about-us/insights-by-cathay/cathay-bank-ranked-forbes-americas-most-cybersecure-banks))
- **Chris Stoneley** — Senior Vice President and Chief Information Security Officer (as named in March 2024) ([Cathay Bank](https://www.cathaybank.com/about-us/insights-by-cathay/cathay-bank-ranked-forbes-americas-most-cybersecure-banks))
- **Marisa Marquisepe** — Executive Vice President, Director of Financial Crimes Risk Management; co-signatory of the 2025 AML questionnaire ([Cathay Bank](https://cathaybank.com/anti-money-laundering/questionnaire))

## Which AI vendors and fintechs does Cathay Bank work with?

| Company | What Cathay Bank uses it for | Status | Category |
| --- | --- | --- | --- |
| [NICE Actimize](https://www.bankingnewsai.com/vendors/nice-actimize) | AML monitoring and sanctions screening tools (NICE Actimize AML Essentials, SAM and CDD, alongside LexisNexis Bridger Insight), named in the bank's own 2025 Wolfsberg Group correspondent-banking questionnaire. | In production | [AML compliance](https://www.bankingnewsai.com/ai-tools/aml-compliance) |

Each vendor and fintech page cites the source for the relationship. [AI tools for banks](https://www.bankingnewsai.com/ai-tools) · [fintech and neobank AI dossiers](https://www.bankingnewsai.com/fintech).

## Regulators it answers to

- [FDIC](https://www.bankingnewsai.com/ai-regulation/fdic) — Cathay Bank is a state nonmember bank; FDIC model-risk and third-party guidance would govern any AI in credit or AML. See [FDIC FIL-29-2023](https://www.bankingnewsai.com/ai-regulation/documents/fdic-fil-29-2023), [FDIC FIL-15-2026](https://www.bankingnewsai.com/ai-regulation/documents/fdic-fil-15-2026).
- [State of California](https://www.bankingnewsai.com/ai-regulation/california) — A California-chartered bank under the DFPI and the state's automated-decision and privacy rules. See [CPPA ADMT, risk-assessment and cybersecurity-audit regulations](https://www.bankingnewsai.com/ai-regulation/documents/ca-cppa-admt-risk-cyber-regulations-2025).
- [FinCEN](https://www.bankingnewsai.com/ai-regulation/fincen) — Cross-border and correspondent banking make AML model governance central to any AI adoption. See [2018 Joint Statement on BSA/AML Innovation](https://www.bankingnewsai.com/ai-regulation/documents/fincen-joint-statement-innovation-2018).

## What the record suggests

### A 40% efficiency ratio leaves AI little to cut

The business case here is growth and risk, not cost; AML and cross-border payments screening are the obvious first uses.

### Cyber disclosure is a foundation, not a substitute

A detailed information-security section shows governance capacity that an AI risk framework could extend.

### Cross-border compliance is the model-risk hotspot

US-China trade banking under sanctions pressure is where AI screening would be scrutinised hardest by FinCEN and the FDIC.

### Silence will be compared to peers

As similar-sized California banks publish AI positions, investors will ask Cathay for one.

## FAQ

### Who leads AI at Cathay Bank?

No one is publicly named as leading AI at Cathay Bank. Cathay General Bancorp discloses no chief AI, data, technology or information officer, and the seven executive officers in its 2025 10-K include no technology executive. The nearest owners are Diana Deen, executive vice president and chief risk officer since January 2025, to whom the chief information security officer reports; Thomas Lo, chief administrative officer; and Chang M. Liu, president and CEO. On the board, audit chair Elizabeth Woo is credited with insight into AI, and Ann Yee Kono is a former Ares chief technology officer.

### Does Cathay Bank use AI?

Cathay General Bancorp has not disclosed an AI programme, leader, vendor or budget. Its 2025 annual report and corporate responsibility report discuss cybersecurity and information-security governance but do not mention artificial intelligence.

### Does Cathay General mention AI in its SEC filings?

Barely. Its 2025 10-K and second-quarter 2026 10-Q do not mention artificial intelligence; the 10-K's technology risk factor warns that some competitors have substantially greater resources to invest in technology. The 2026 proxy statement credits audit committee chair Elizabeth Woo with insight into data analytics, automation and artificial intelligence.

### How is Cathay General performing?

Second-quarter 2026 net income was $92.2 million, or $1.37 per diluted share, with a 1.52% return on assets and a 3.48% net interest margin, up from 3.43% in the first quarter. Full-year 2025 net income was $315.1 million, up 10.2%.

### What technology vendors does Cathay Bank name?

Only compliance vendors. Its Wolfsberg AML questionnaire, signed on 8 May 2025 by Chief Administrative Officer Thomas Lo and Marisa Marquisepe, names NICE Actimize (AML Essentials, SAM and CDD) and LexisNexis Bridger Insight and Compliance Link, run as a combination of automated and manual review. It does not say either tool uses AI. No cloud, core-system or AI vendor appears in the 2025 10-K, the 2026 proxy or the last six earnings calls.

### How much does Cathay Bank spend on technology?

In 2025 computer and equipment expense was $23.2 million, up 15% from $20.1 million in 2024 and $17.5 million in 2023, and data processing service expense was $17.5 million, against $16.4 million. Together they are about 11% of the $355.1 million of non-interest expense. In the second quarter of 2026 computer and equipment expense was $6.6 million against $5.2 million a year earlier, while data processing fell to $3.7 million from $4.6 million. The bank does not label any of this as AI spending.

## Sources (23)

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2. Cathay General Bancorp 2025 Annual Report — Cathay General Bancorp, Mar 31, 2026. https://cathaybank.com/CGB/annual-report-2025
3. U.S.-China 2026 Annual Economic Report — Cathay Bank, May 7, 2026. https://cathaybank.com/US-China-Annual-Report-2026-EN
4. 2025 Corporate Responsibility Report — Cathay General Bancorp, Jul 1, 2026. https://cathaybank.com/CGB/ESG-report-2025
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8. Cathay General Bancorp Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 — Cathay General Bancorp (SEC filings), Aug 7, 2026. https://www.sec.gov/Archives/edgar/data/861842/000143774926026554/caty20260630_10q.htm
9. Cathay General Bancorp Announces Second Quarter 2026 Results — Cathay General Bancorp, Jul 22, 2026. https://cathaygeneralbancorp.com/CGB/pr-20260722
10. Cathay General Bancorp Annual Report on Form 10-K for the fiscal year ended December 31, 2023 — Cathay General Bancorp (SEC filings), Feb 29, 2024. https://www.sec.gov/Archives/edgar/data/861842/000143774924005948/caty20231231_10k.htm
11. Cathay Bank Ranked on Forbes as One of America's Most Cybersecure Banks — Cathay Bank, Mar 25, 2024. https://www.cathaybank.com/about-us/insights-by-cathay/cathay-bank-ranked-forbes-americas-most-cybersecure-banks
12. Cathay Announces Two New Board Directors — Cathay General Bancorp, May 17, 2024. https://www.cathaybank.com/CGB/pr-20240517
13. Cathay General Bancorp Announces Retirement of Chief Risk Officer of Cathay Bank and Appointment of Successor — Cathay General Bancorp, Jan 17, 2025. https://cathaybank.com/CGB/pr-20250117
14. Cathay General Bancorp Annual Report on Form 10-K for the fiscal year ended December 31, 2024 — Cathay General Bancorp (SEC filings), Feb 28, 2025. https://www.sec.gov/Archives/edgar/data/861842/000143774925005749/caty20241231_10k.htm
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19. Earnings call transcript: Cathay General Bancorp sees strong Q2 2025 growth — Investing.com, Jul 22, 2025. https://investing.com/news/transcripts/earnings-call-transcript-cathay-general-bancorp-sees-strong-q2-2025-growth-93CH-4286918
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21. Earnings call transcript: Cathay General Bancorp beats Q4 2025 earnings forecasts — Investing.com, Jan 22, 2026. https://investing.com/news/transcripts/earnings-call-transcript-cathay-general-bancorp-beats-q4-2025-earnings-forecasts-93CH-4461755
22. Cathay (CATY) Q1 2026 Earnings Call Transcript — The Motley Fool (earnings call transcript), Apr 22, 2026. https://fool.com/earnings/call-transcripts/2026/04/22/cathay-caty-q1-2026-earnings-call-transcript
23. Earnings call transcript: Cathay General Bancorp tops Q2 2026 estimates — Investing.com, Jul 22, 2026. https://investing.com/news/transcripts/earnings-call-transcript-cathay-general-bancorp-tops-q2-2026-estimates-93CH-4807238

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