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Question-and-Answer SessionYes. I think maybe just kick it off a little bit. You came out with some updated guidance or updated thoughts on a slide deck recently. Maybe just give us a quick overview on how the quarter is going. And what you're seeing?Christopher Del Moral-NilesExecutive VP & CFO Yes. Look, we've had a great year and a continued positive trend with regard to deposit growth. And so core deposit growth has continued to be on a very positive trajectory. The mix of deposits has continued to be p ...

Summary of East West Bancorp FY Conference Call Company Overview - **Company**: East West Bancorp (NasdaqGS:EWBC) - **Assets**: Approximately $80 billion - **Headquarters**: Pasadena, California - **Operations**: Nationwide and internationally, with multiple locations in China and Asia [1] Key Points Financial Performance - **Net Interest Income (NII)**: Increased guidance from a year-over-year growth of over 7% to trending towards 10%, with a core run rate expected to reach $2.5 billion, up from $2.279 billion last year [4][5] - **Deposit Growth**: Strong growth in core deposits, particularly from the consumer bank and small business customers, with a notable product being the liquid CD program offering a 3.88% rate [6][7] Margin and Spread Management - **CD Pricing**: Historical CD portfolio of $8 billion to $10 billion, with a new run-on rate between 3.75% and 4%, indicating a positive NII dynamic [10] - **Spreads**: Competitive spreads maintained in Commercial and Industrial (CNI) and Commercial Real Estate (CRE) sectors, with CNI spreads starting at around 2% [11] Growth Strategy - **Loan Growth**: Anticipated organic loan growth of 7% to 9% for 2026, with a focus on maintaining high capital efficiency [21] - **Acquisition Strategy**: Interest in whole bank acquisitions and fee-generating opportunities, with a preference for banks with less CRE concentration and more non-interest-bearing deposits [24][27] Regulatory Environment - **Regulatory Tone**: Improved regulatory dialogue noted, with optimism about future growth plans and strategies not facing impediments [33] - **Asset Size Regulation**: Majority opinion suggests a potential increase in the asset size threshold for bank regulations to $250 billion [29] Fee Income and Customer Acquisition - **Fee Income Growth**: Record fee income growth of 40% year-over-year, with plans to fill product capability gaps through acquisitions or partnerships [35][36] - **Customer Base**: Strong performance in attracting new business customers, particularly in Southern California, with over 50% market share in certain areas [44][45] Credit Quality and Risk Management - **Credit Performance**: Continued good credit quality with a proactive approach to managing potential challenges, particularly in the CRE sector [56] - **Reserves**: Adequate provisioning for potential losses, with a strong capital position to absorb economic challenges [56] Capital Management - **Capital Ratios**: Comfortable with a 10% Tangible Common Equity (TCE) ratio while delivering top quartile returns, with buybacks considered as a tool for capital management [60][62] Market Outlook - **Economic Context**: Despite uncertainties in international trade, core business fundamentals remain strong, with optimism about customer prospects and overall bank performance [65][66] Additional Insights - **Single-Family Portfolio**: Consistent application and transaction volumes in the single-family portfolio, indicating strong demand despite market fluctuations [47][48] - **China Operations**: Approximately $2 billion in footings, primarily focused on U.S. dollar deposits related to businesses with U.S. market interactions [52] This summary encapsulates the key insights and data points from the East West Bancorp FY conference call, highlighting the company's financial performance, growth strategies, regulatory environment, and market outlook.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-24939 EAST WEST BANCORP, INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation ...

Core Viewpoint - East West Bancorp, Inc. (EWBC) reported strong second-quarter 2025 results with adjusted earnings per share (EPS) of $2.28, exceeding the Zacks Consensus Estimate of $2.23, and reflecting a 9.1% increase year-over-year [1][9] Financial Performance - Quarterly net revenues reached $703.3 million, marking a 10.3% year-over-year increase and surpassing the Zacks Consensus Estimate of $699 million [3][9] - Net interest income (NII) was $617.1 million, up 11.5% year-over-year, with net interest margin (NIM) expanding by 8 basis points to 3.35% [3][9] - Total non-interest income increased to $86.2 million, a rise of 2.4%, driven by growth in most components except for customer derivative income and lower gains on available-for-sale debt securities [4][9] - Non-interest expenses totaled $256 million, up 8.5% from the prior-year quarter, influenced by increases across most components [5][9] Asset and Deposit Growth - As of June 30, 2025, net loans held for investment (HFI) were $54.2 billion, reflecting a 1.3% sequential increase, while total deposits rose 3.1% to $65 billion [6][9] Credit Quality - Annualized quarterly net charge-offs were 0.11% of average loans HFI, down 7 basis points year-over-year, and non-performing assets decreased to $171.7 million, down 12.5% year-over-year [7][9] - The provision for credit losses was $45 million, up 21.6% from the prior-year quarter [7][9] Capital Ratios - As of June 30, 2025, the common equity Tier 1 capital ratio improved to 14.51 from 13.74 a year ago, and the total risk-based capital ratio increased to 15.82 from 15.05 [8][9] Share Repurchase - In the reported quarter, the company repurchased approximately 26 thousand shares for $2 million, with $241 million of authorization remaining available for repurchase as of June 30, 2025 [11]

East West Bancorp, Inc. (NASDAQ:EWBC) Q2 2025 Earnings Call July 22, 2025 5:00 PM ET Company Participants Adrienne Atkinson - Director of Investor Relations Dominic Ng - Chairman, President & CEO Christopher Del Moral-Niles - Executive VP & CFO Irene Oh - Executive VP & Chief Risk Officer Conference Call Participants Casey Haire - Autonomous Manan Gosalia - Morgan Stanley, Research Division Ebrahim Poonawala - BofA Securities, Research Division Jared David Shaw - Barclays Bank PLC, Research Division Timur B ...

East West Bancorp (EWBC) came out with quarterly earnings of $2.28 per share, beating the Zacks Consensus Estimate of $2.23 per share. This compares to earnings of $2.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +2.24%. A quarter ago, it was expected that this bank holding company would post earnings of $2.05 per share when it actually produced earnings of $2.09, delivering a surprise of +1.95%.Over the last four quarter ...

Financial Data and Key Metrics Changes - The company reported record quarterly revenue and net interest income, with average loan and deposit growth of 2% quarter over quarter [5][6] - Adjusted return on tangible common equity was 16.7%, and return on average assets was 1.6% [6] - Total average deposits grew 2% quarter over quarter, while end of period deposits increased by 3% [8][9] - Net interest income rose to $617 million, up $17 million from Q1 [10] - Total non-interest income was $86 million, with fee income at $81 million, marking the third highest quarter for fees in the company's history [11] Business Line Data and Key Metrics Changes - Average loan balances increased by $940 million quarter over quarter, with commercial and industrial (C&I) lending being the largest contributor [9] - Demand for residential mortgage products remained strong, with expectations for continued contribution in Q3 [10] - Commercial real estate balances grew modestly as the company supported longstanding clients [10] Market Data and Key Metrics Changes - The company maintained strong asset quality metrics, with non-performing assets decreasing to 22 basis points of total assets [14] - Criticized loans ratio decreased to 2.15% of loans, and special mention ratio decreased to 81 basis points of total loans [14] Company Strategy and Development Direction - The company aims to continue growing its loan portfolio, with full-year loan growth expected to be in the range of 4% to 6% [17] - The focus remains on optimizing deposit costs and managing asset repricing to maintain margins [21][34] - The company is exploring opportunities to enhance fee income capabilities and is actively hiring to support growth [75] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about client sentiment improving, despite ongoing tariff uncertainties [39][42] - The company is confident in its ability to manage risks associated with tariffs due to its diversified loan portfolio [41] - Future net interest income and revenue trends are expected to exceed 7% for the full year [17] Other Important Information - The company repurchased approximately 26,000 shares of common stock for about $2 million, with $241 million remaining for future buybacks [16] - The effective tax rate for the second quarter was 22.9%, with expectations for the full year to be around 23% [12] Q&A Session Summary Question: Beyond margin, how sustainable are loan yields and deposit beta? - Management is focused on deposit cost optimization and expects to maintain margins through Q3, regardless of potential rate cuts [21] Question: Can you provide insight on the reserve build related to C&I? - The reserve build was influenced by the CECL model and economic outlook rather than specific issues within the C&I book [25] Question: What is the impact of recent legislative changes on renewable energy tax credits? - Existing investments and loan commitments remain unaffected by new rules, but future strategies are being reconsidered [27] Question: How does the company view NII growth relative to loan growth? - The company is asset sensitive, and slower rate cuts would be beneficial for NII growth, which is expected to align with loan growth [34] Question: What is the sentiment around client investment pace? - Client sentiment is improving, with more certainty regarding tariffs, and the company is well-positioned to manage these changes [39] Question: Can you discuss the trends in deposit costs? - Average total deposit costs decreased, and the company expects to continue this trend as it approaches future rate cuts [46] Question: What are the expectations for core expenses in the second half of the year? - The company is investing in hiring and building capabilities, which will lead to increased expenses [49] Question: How does the company plan to optimize its balance sheet? - Continuous efforts are being made to optimize deposits and the investment portfolio, with a focus on growing the C&I book [73] Question: What are the long-term plans for capital utilization? - The company intends to build out key businesses and enhance fee income capabilities while maintaining strong returns for shareholders [75]

Financial Data and Key Metrics Changes - The company reported record quarterly revenue and net interest income, with average loan and deposit growth of 2% quarter over quarter [4][5] - Adjusted return on tangible common equity was 16.7%, and return on average assets was 1.6% [5] - Net interest income increased to $617 million, up $17 million from Q1 [9] - Total non-interest income was $86 million, with fee income at $81 million, marking the third highest quarter for fees in the company's history [10] Business Line Data and Key Metrics Changes - Average loan balances increased by $940 million quarter over quarter, with commercial and industrial (C&I) lending being the largest contributor [8] - Demand for residential mortgage products remained strong, with expectations for similar or higher volume in Q3 [9] - The company experienced notable growth in commercial deposits, alongside consumer and business banking balances [7] Market Data and Key Metrics Changes - The criticized loans ratio decreased to 2.15% of loans, and non-performing assets decreased to 22 basis points of total assets [13] - The allowance for credit losses increased to $760 million, or 1.38% of total loans, reflecting changes in the economic outlook [14] Company Strategy and Development Direction - The company aims to maintain a strong capital position, with a tangible common equity ratio of 10% and a common equity Tier 1 capital ratio of 14.5% [15] - The focus remains on diversifying revenue streams and enhancing customer relationships to support growth [5][10] - The company is actively managing credit risk and optimizing deposit costs while preparing for potential rate cuts [20][49] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining margins and loan growth, despite potential rate cuts [20][34] - Client sentiment is improving, with businesses becoming more comfortable navigating tariff-related uncertainties [39] - The company expects full-year loan growth to be in the range of 4% to 6%, with net interest income and revenue trends projected to exceed 7% [16][17] Other Important Information - The company repurchased approximately 26,000 shares of common stock for about $2 million, with $241 million remaining for future buybacks [15] - The second quarter income tax expense was $92 million, with an effective tax rate of 22.9% [11] Q&A Session Summary Question: Ability to sustain loan yields and deposit beta - Management is focused on continuous deposit cost optimization and expects to maintain margins through Q3 [20] Question: Credit reserve build and C&I outlook - The reserve build relates to the CECL model and economic outlook rather than specific issues within the C&I book [23] Question: Impact of legislative changes on renewable energy tax credits - Existing investments and loan commitments remain unaffected by new rules, but future strategies are being reconsidered [26][28] Question: NII growth relative to loan growth - Management confirmed that NII growth is expected to track loan growth, with potential upside if rates remain higher for longer [34] Question: Client sentiment around investment pace - Client sentiment is improving, with businesses adapting to tariff situations and feeling more comfortable [39] Question: Trends in deposit costs - Average total deposit costs decreased, and management expects to continue this trend as they approach future rate cuts [46][49] Question: Core expenses and investments - The company is focused on hiring and building capabilities to support future growth, which will lead to increased expenses [50][51] Question: Loan growth in commercial real estate - The company aims for balanced growth across loan types, with a focus on C&I and single-family loans [81]

Financial Performance - The company reported net income available to common equity of $310 million, resulting in diluted quarterly earnings per share of $2.24[9] - Record quarterly revenue reached $703 million, driven by record net interest income (NII) of $617 million[13] - The company's Return on Average Assets (ROAA) was 1.62%, and the Return on Average Common Equity (ROACE) was 15.4% (16.7% Adjusted ROTCE)[13] Balance Sheet and Loan Portfolio - Total average loans increased by 2% quarter-over-quarter, with strong growth in C&I and residential mortgage sectors[12] - Total average deposits also grew by 2% quarter-over-quarter, supported by strong growth from commercial and consumer customers, and a reduction in average deposit cost[12] - Average loans reached $54.3 billion, with C&I loans at $17.4 billion and residential mortgages at $5 billion[18] - Average deposits totaled $63.7 billion, showing year-over-year growth of 9%[14] Asset Quality - Criticized loans decreased by 14 basis points quarter-over-quarter to 2.15%[9] - Nonaccrual loans decreased by 3 basis points quarter-over-quarter to 25 basis points, with nonperforming assets at 22 basis points[12] - Net charge-offs were $15 million, equivalent to 11 basis points annualized[12] - The company bolstered its Allowance for Loan Losses (ALLL) to 1.38%, reflecting changes in the economic outlook[12] Capital and Ratios - The company's Tangible Common Equity (TCE) ratio stood at 10%, and the Common Equity Tier 1 (CET1) ratio was 14.5%[13] - The company repurchased $2 million shares in 2Q25, with $241 million remaining available under the share repurchase authorization[51] Outlook - The company expects full-year 2025 loan growth in the range of 4% to 6% year-over-year and net interest income trending above 7%[53]