Financial Data and Key Metrics Changes - The company reported record revenue for the first quarter of 2025, with end-of-period loans growing 1% quarter-over-quarter to a new record level of $54 billion [6][7] - Net interest income increased to $600 million, up $12 million from Q4, and net interest margin rose by 11 basis points to 3.35% [20][21] - The return on tangible common equity was nearly 16%, and the return on average assets was 1.6% [10] Business Line Data and Key Metrics Changes - Fee income grew by 8%, driven by strong customer activity across various categories [8][21] - Residential mortgage origination remained steady, with a strong pipeline for Q2, while commercial real estate balances also grew [16] - The efficiency ratio for Q1 was 36.4%, indicating industry-leading efficiency [22] Market Data and Key Metrics Changes - The non-performing assets ratio decreased by two basis points to 24 basis points at quarter-end [9][25] - The criticized loans ratio increased to 2.3%, with classified loans rising to 1.38% [25][28] - The allowance for loan losses increased to 1.35% of total loans, reflecting a proactive approach to credit risk management [26][28] Company Strategy and Development Direction - The company aims to capitalize on opportunities arising from economic uncertainties while maintaining a strong capital position [13][28] - There is a focus on diversifying revenue streams and enhancing fee income through customer engagement and service expansion [7][21] - The management emphasized the importance of a strong balance sheet to support customers and navigate economic challenges [13][60] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are adapting to economic uncertainties and diversifying supply chains, which positions the company favorably [11][12] - The company remains vigilant regarding credit risk and is prepared for potential economic downturns [26][60] - Future loan growth will depend on economic conditions, with a cautious approach to lending in uncertain times [62][66] Other Important Information - The company repurchased approximately 920,000 shares for $85 million and distributed $85 million to shareholders via dividends [29][30] - The effective tax rate for 2025 is expected to be below 23% [31] Q&A Session Summary Question: Why is the NII guide not moving higher? - The guidance remains appropriate due to anticipated rate cuts and current economic outlook [35] Question: Can the deposit beta be sustained? - The positive momentum may slow as the forward curve flattens, but the company expects to remain above the 50% guide [37] Question: What is the outlook for capital return and buybacks? - The company will continue to be opportunistic with buybacks while maintaining a strong position to support customers [45][46] Question: Are current tariff risks larger than in previous years? - Clients are better prepared now compared to 2017, and the company is actively engaging with clients to manage risks [50][52] Question: How does the company view loan growth opportunities? - The company has the capital and balance sheet to support clients, but loan growth will depend on economic conditions [60][62] Question: What is the strategy for growing fee income? - The company focuses on domestic lending fees and wealth management, with some fees tied to cross-border activity [71] Question: Can you elaborate on the allowance build rationale? - The allowance increase was driven by a higher weighting for downside scenarios due to economic uncertainties [74] Question: What are the expectations for expenses in the coming quarters? - The company remains comfortable with its expense guidance while continuing to invest in technology and infrastructure [80] Question: What is the strategy for security purchases in liquidity management? - The focus is on purchasing high-quality liquid assets, primarily Ginnie Mae securities [120]

East West Bancorp, Inc. 1Q Earnings Presentation April 22, 2025 Basis of Presentation The preparation of the Company's consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements, income and expenses during the reporting periods, and the related disclosures. Although our estimates consider curr ...

East West Bancorp, Inc. 135 N. Los Robles Ave., 7th Fl. Pasadena, CA 91101 Tel. 626.768.6000 NEWS RELEASE EAST WEST BANCORP REPORTS NET INCOME FOR FIRST QUARTER OF 2025 OF $290 MILLION AND DILUTED EARNINGS PER SHARE OF $2.08; RECORD QUARTERLY REVENUE, FEE INCOME, AND LOANS Pasadena, California – April 22, 2025 – East West Bancorp, Inc. ("East West" or the "Company") (Nasdaq: EWBC), parent company of East West Bank, reported its financial results for the first quarter of 2025. First quarter 2025 net income w ...

Wall Street analysts forecast that East West Bancorp (EWBC) will report quarterly earnings of $2.05 per share in its upcoming release, pointing to a year-over-year decline of 1.4%. It is anticipated that revenues will amount to $671.3 million, exhibiting an increase of 4.2% compared to the year-ago quarter.The consensus EPS estimate for the quarter has undergone a downward revision of 1.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reas ...

Wall Street expects a year-over-year decline in earnings on higher revenues when East West Bancorp (EWBC) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on April 22, 2025, might help the stock move higher if these key numbers are better than ...

East West Bancorp (EWBC) shares rallied 8.6% in the last trading session to close at $77.16. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 15.8% loss over the past four weeks.East West Bancorp shares rallied sharply, benefiting from broad market strength following President Donald Trump’s announcement of a 90-day suspension on tariffs for non-retaliating countries. The policy shift eased trade tensions and ...

Employee Compensation and Development - The Bank's compensation and employee benefits expense was $551 million in 2024, comprising 57% of total noninterest expense, compared to $509 million and 50% in 2023[29]. - In 2024, the Bank achieved 16% of employees advancing their careers through over 510 internal promotions, highlighting its commitment to employee development[27]. - The Bank granted over 650 thousand restricted stock units (RSUs) as part of its stock compensation programs in 2024[30]. - The Bank's employee compensation packages include a competitive base salary and may include annual cash and/or stock incentive bonuses based on performance[29]. Regulatory Compliance and Capital Requirements - The Bank's operations are subject to regulation and supervision by the Federal Reserve, California DFPI, and other regulatory bodies, ensuring compliance and stability[35]. - As of December 31, 2024, the Company and the Bank's capital ratios exceeded the minimum capital adequacy requirements, including the capital conservation buffer, and were classified as "well capitalized"[42]. - The Company is required to maintain a minimum CET1 capital ratio of at least 4.5% to risk-weighted assets, with additional capital conservation buffer of 2.5%[42]. - The proposed "Basel III Endgame" rule could lead to increased capital requirements for large banking organizations, but the Company, with total consolidated assets under $100 billion, would not be subject to these changes[45]. - The Company conducts annual capital and quarterly liquidity stress tests as part of its risk management processes, despite not being required to do so under current regulations[49]. - The Bank is subject to additional capital requirements under the Prompt Corrective Action regulations, which classify institutions into five capital tiers based on their capital levels[46]. Community Engagement and Social Responsibility - The Bank is committed to community engagement through programs that promote homeownership, affordable housing, and access to banking services[32]. - The Bank was rated "outstanding" in its most recent Community Reinvestment Act examination as of March 8, 2021, indicating strong performance in serving community credit needs[58]. Financial Performance and Metrics - Total assets increased to $75.98 billion in 2024, up from $69.61 billion in 2023, representing an increase of approximately 9.4%[360]. - Net interest income after provision for credit losses was $2.10 billion in 2024, compared to $2.19 billion in 2023, a decrease of about 4.0%[362]. - Total deposits rose to $63.18 billion in 2024, up from $56.09 billion in 2023, reflecting an increase of approximately 12.4%[360]. - Net income for 2024 was $1.17 billion, slightly up from $1.16 billion in 2023, indicating a growth of about 0.4%[362]. - Earnings per share (EPS) increased to $8.39 in 2024 from $8.23 in 2023, a rise of approximately 1.9%[362]. - Noninterest income totaled $335.22 million in 2024, compared to $295.26 million in 2023, marking an increase of about 13.5%[362]. Risk Factors - A significant portion of the loan portfolio is secured by real estate, which is at higher risk due to potential downturns in real estate markets[88]. - The company is exposed to interest rate risk, with net interest income being significantly affected by changes in interest rates[89]. - Inflation poses a risk to the company's profitability and may negatively impact customers' ability to repay loans[90]. - The Federal Reserve's monetary policies could materially affect the company's earnings and asset values[91]. - The company is subject to fluctuations in foreign currency exchange rates, particularly from its operations in China[93]. - Geopolitical uncertainties and trade tensions, especially between the U.S. and China, may adversely impact the company's business[84]. - Natural disasters and climate change could lead to increased nonperforming assets and credit losses[86]. - The company may experience a decrease in demand for loans and financial products due to adverse economic conditions[84]. Legal and Compliance Risks - The Consumer Financial Protection Bureau (CFPB) has implemented a final rule requiring financial institutions to provide certain consumer data upon request, which the Bank must comply with by April 1, 2027[51]. - Federal law limits the Bank's ability to pay dividends, requiring regulatory approval if total dividends exceed the sum of net income for the year and retained earnings for the preceding two years[55]. - The Federal Reserve's policy discourages bank holding companies from maintaining dividend levels that undermine their ability to support their banking subsidiaries[55]. - The Company is subject to various federal and state regulations regarding privacy and cybersecurity, which may impact operational costs and compliance efforts[66][68]. - The company faces significant financial and reputational risks from lawsuits and legal proceedings, which could adversely affect its operations[124]. Technological and Competitive Challenges - The company faces intense competition in the financial services industry, which may lead to margin declines and loss of business[112]. - The company may face challenges in keeping pace with technological changes, which could adversely affect its competitive position[106]. - Cybersecurity risks have increased, potentially impacting the company's operations and financial condition[105]. Accounting and Financial Reporting - The Company adheres to U.S. GAAP for its financial reporting, requiring management to make estimates that could materially affect reported amounts[378]. - Changes in accounting standards could materially impact the company's financial statements and reporting[125]. - The Company’s financial statements have been audited and present fairly its financial position as of December 31, 2024, in conformity with U.S. generally accepted accounting principles[347]. Environmental and Regulatory Changes - California's Climate Corporate Data Accountability Act requires entities with annual revenue over $1 billion to disclose greenhouse gas emissions starting in 2026[72]. - The Company may incur compliance costs related to the Climate-Related Financial Risk Act, which mandates biennial climate risk disclosures for entities with revenues over $500 million, starting January 1, 2026[72]. - Evolving expectations regarding environmental, social, and governance (ESG) considerations may expose the Company to additional costs and reputational harm[132].

Company Overview - East West Bancorp (EWBC) is based in Pasadena and operates in the Finance sector, with a year-to-date share price change of 2.58% [3] - The company currently pays a dividend of $0.6 per share, resulting in a dividend yield of 2.44%, which is lower than the Banks - West industry's yield of 2.87% and higher than the S&P 500's yield of 1.52% [3] Dividend Performance - The annualized dividend of East West Bancorp is $2.40, reflecting a 9.1% increase from the previous year [4] - Over the past five years, the company has raised its dividend four times, achieving an average annual increase of 18.47% [4] - The current payout ratio is 26%, indicating that the company distributes 26% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for East West Bancorp's earnings in 2025 is $8.85 per share, which represents a year-over-year earnings growth rate of 6.63% [5] Investment Considerations - East West Bancorp is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]

Financial Data and Key Metrics - The company held its Q4 2024 earnings call on January 23, 2025, to review its financial results for the quarter and full year [1][2][3] - The call included participation from key executives such as Dominic Ng (Chairman and CEO), Chris Del Moral-Niles (CFO), and Irene Oh (Chief Risk Officer) [3] - Management may discuss non-GAAP financial measures, and a reconciliation of GAAP to non-GAAP measures is available in the company's SEC filings, including the Form 8-K filed on the day of the call [4] Business Lines and Market Data - No specific data or metrics related to business lines or market performance were provided in the available content Company Strategy and Industry Competition - No specific details on company strategy, industry competition, or market positioning were provided in the available content Management Commentary on Operating Environment and Future Outlook - No specific commentary from management on the operating environment or future outlook was provided in the available content Other Important Information - The earnings call was recorded and will be available for replay on the company's Investor Relations site [3] - A slide deck referenced during the call is also available on the Investor Relations site [3] Q&A Session Summary - No Q&A session details or questions from analysts were provided in the available content

East West Bancorp, Inc. Fourth Quarter and Full Year 2024 Earnings Presentation January 23, 2025 Forward-Looking Statements and Additional Information Forward-Looking Statements This presentation contains forward-looking statements that are intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of the management of East West Bancorp, Inc. (the "Company") and are subject ...