Financial Data and Key Metrics Changes - The company reported an 18% year-over-year growth in tangible book value per share in 2023 [1] - Fourth quarter net income was $239 million, with an adjusted EPS of $2.02 excluding one-time charges [49] - The annual net charge-offs to average loans were just 9 basis points, and the non-performing assets to total asset ratio was 16 basis points at year-end [47][73] Business Line Data and Key Metrics Changes - Total average loans grew by 9% for the year, driven by strong residential mortgage and commercial real estate platforms [50] - Residential mortgage originations were $3.5 billion in 2023, with expectations for continued strength in this area [51] - Average commercial real estate (CRE) balances grew, particularly in multifamily and industrial property lending, while office loans declined [51] Market Data and Key Metrics Changes - The company added $1 billion in customer deposits in each of the last two quarters, totaling 40,000 new deposit accounts over the year [46] - The average cost of deposits for Q4 was 260 basis points, up 17 basis points from the previous quarter [68] - Non-interest-bearing demand accounts are expected to trend around 27% to 28% as a benchmark for future growth [33] Company Strategy and Development Direction - The company aims to focus on driving core deposit growth and maintaining strong capital levels, with a CET1 capital ratio of 13.3% [75] - A 15% increase in the quarterly common stock dividend to $0.55 per share was announced, reflecting confidence in earnings stability [48][76] - The company plans to continue diversifying its loan portfolio while managing credit risks proactively [72][114] Management's Comments on Operating Environment and Future Outlook - Management anticipates a softening economy in 2024, with loan growth expected to be in the range of 3% to 5% [88] - Net interest income is projected to decline by 4% to 6% due to expected rate cuts [88] - The company remains optimistic about its operational ability to reprice non-time deposits in a falling rate environment [68] Other Important Information - The company repurchased 1.5 million shares of common stock for $82 million during Q4 2023 [76] - The allowance for loan losses increased by $13 million quarter-over-quarter, reflecting net loan growth [74] Q&A Session Summary Question: What is the outlook for net interest income (NII) given the expected rate cuts? - Management indicated that NII would perform better if fewer rate cuts occur than projected, and proactive measures are being taken to manage rate sensitivity [110] Question: How does the company view the competitive landscape in 2024? - The company sees a marginally better competitive landscape due to disruptions in the banking sector and plans to continue recruiting talent selectively [112][113] Question: What is the expected loan-to-deposit ratio moving forward? - The company expects to operate in the lower 90% range for the loan-to-deposit ratio and plans to migrate towards a more high-quality liquid asset (HQLA) profile [102]

For the quarter ended December 2023, East West Bancorp (EWBC) reported revenue of $654.74 million, down 2.3% over the same period last year. EPS came in at $2.02, compared to $2.37 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $642.61 million, representing a surprise of +1.89%. The company delivered an EPS surprise of +6.88%, with the consensus EPS estimate being $1.89.While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...

East West Bancorp (EWBC) came out with quarterly earnings of $2.02 per share, beating the Zacks Consensus Estimate of $1.89 per share. This compares to earnings of $2.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.88%. A quarter ago, it was expected that this bank holding company would post earnings of $2.01 per share when it actually produced earnings of $2.02, delivering a surprise of 0.50%.Over the last four quarters, ...

PASADENA, Calif.--(BUSINESS WIRE)--East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, reported its financial results for the full year and fourth quarter of 2023. Full year 2023 net income was $1.2 billion, or $8.18 per diluted share. Excluding $70 million pre-tax of FDIC Special Assessment-related expense (the “FDIC charge”) and $7 million of net losses on an AFS debt security, adjusted diluted earnings per share1 for the year were $8.56. Fourth quar ...

The market expects East West Bancorp (EWBC) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be re ...

PASADENA, Calif.--(BUSINESS WIRE)--East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), announced plans to host conference calls to review financial results on the following dates: Financial Period Earnings Release Date Conference Call Time Fourth Quarter and Full Year 2023 Tuesday, January 23, 2024 2 p.m. PT/5 p.m. ET First Quarter 2024 Tuesday, April 23, 2024 2 p.m. PT/5 p.m. ET The financial results are scheduled to be released after the market closes ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 95-4703316 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 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 0 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 EAST WEST BANCORP, INC. ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to For the quarterly period ended June 30, 2023 Commission file number 000-24939 or Yes ☒ No ☐ 95-4703316 Securities registered pursuant to Section 12(b) of the Act: (Exact name of registrant as ...

East West Bancorp, Inc. (NASDAQ:EWBC) Q2 2023 Results Conference Call July 20, 2023 11:30 AM ET Company Participants Diana Trinh - Vice President and Investor Relations Officer Dominic Ng - Chairman and Chief Executive Office Irene Oh - Chief Financial Officer Conference Call Participants Ebrahim Poonawala - Bank of America Jared Shaw - Wells Fargo Securities Dave Rochester - Compass Point Manan Gosalia - Morgan Stanley Brandon King - Truist Matthew Clark - Piper Sandler Gary Tenner - DA Davidson Chris McGr ...

[Forward-Looking Statements](index=3&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section contains forward-looking statements intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, based on current assumptions and subject to risks and uncertainties - This section contains forward-looking statements intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, based on current assumptions and subject to risks and uncertainties[10](index=10&type=chunk) - Key factors that could cause future results to differ materially include changes in global economy, bank failures, regulatory changes, interest rates, and geopolitical events[11](index=11&type=chunk)[13](index=13&type=chunk) [PART I — FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Item 1. Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents unaudited consolidated financial statements for Q1 2023, reflecting increased cash from borrowings and higher net income due to net interest income growth [Consolidated Balance Sheet](index=5&type=section&id=Consolidated%20Balance%20Sheet) Total assets increased to **$67.2 billion** by March 31, 2023, driven by a **$2.45 billion** rise in cash from **$4.5 billion** in new short-term borrowings, while deposits slightly decreased Consolidated Balance Sheet Highlights (Unaudited) | Metric | March 31, 2023 ($ in thousands) | December 31, 2022 ($ in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$67,244,898** | **$64,112,150** | | Cash and cash equivalents | $5,934,194 | $3,481,784 | | Loans held-for-investment, net | $48,298,155 | $47,606,785 | | **Total Liabilities** | **$60,935,567** | **$58,127,538** | | Total deposits | $54,737,402 | $55,967,849 | | Short-term borrowings | $4,500,000 | $0 | | **Total Stockholders' Equity** | **$6,309,331** | **$5,984,612** | [Consolidated Statement of Income](index=6&type=section&id=Consolidated%20Statement%20of%20Income) Net income for Q1 2023 increased 36% to **$322.4 million**, driven by a 44% rise in net interest income to **$599.9 million**, with diluted EPS at **$2.27** Consolidated Statement of Income Highlights (Unaudited) | Metric | Three Months Ended March 31, 2023 ($ in thousands) | Three Months Ended March 31, 2022 ($ in thousands) | | :--- | :--- | :--- | | Net interest income | $599,861 | $415,613 | | Provision for credit losses | $20,000 | $8,000 | | Noninterest income | $59,978 | $79,743 | | Noninterest expense | $218,447 | $189,450 | | **Net Income** | **$322,439** | **$237,652** | | **Diluted EPS** | **$2.27** | **$1.66** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, financial instruments, and segments, highlighting ASU 2022-02 adoption, unrealized securities losses, loan portfolio growth, and **$4.5 billion** in new BTFP borrowings - The company adopted ASU 2022-02 on January 1, 2023, eliminating accounting guidance for Troubled Debt Restructurings (TDRs), resulting in a **$6.0 million** increase to the allowance for loan losses and a corresponding **$4.3 million** after-tax decrease to opening retained earnings[35](index=35&type=chunk) - As of March 31, 2023, the Available-for-Sale (AFS) debt securities portfolio had gross unrealized losses of **$771.9 million**, primarily attributed to interest rate movements rather than credit impairment, with no allowance for credit losses recorded[75](index=75&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) - Total loans held-for-investment grew to **$48.9 billion** as of March 31, 2023, with the allowance for loan losses at **$619.9 million**, up from **$595.6 million** at year-end 2022, driven by loan growth and changes in economic outlook[120](index=120&type=chunk)[159](index=159&type=chunk) - In March 2023, the company borrowed **$4.5 billion** from the Federal Reserve's Bank Term Funding Program (BTFP) with a maturity date of March 19, 2024, and an interest rate of 4.37%, enhancing liquidity[174](index=174&type=chunk)[176](index=176&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=57&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial performance, noting a 36% net income increase to **$322.4 million** driven by net interest income growth and a **$4.5 billion** BTFP borrowing to enhance liquidity [Results of Operations](index=61&type=section&id=Results%20of%20Operations) Q1 2023 net income rose 36% to **$322.4 million**, driven by a 44% surge in net interest income to **$599.9 million**, despite a **$10.0 million** AFS debt security write-off Key Performance Metrics | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net Income | $322.4M | $237.7M | | Diluted EPS | $2.27 | $1.66 | | ROA | 2.01% | 1.56% | | ROE | 21.15% | 16.50% | | Net Interest Margin | 3.96% | 2.87% | | Efficiency Ratio | 33.11% | 38.25% | - The increase in net interest income was primarily driven by a **252 basis point** increase in the yield on average interest-earning assets, which outpaced the **150 basis point** increase in the average cost of deposits[221](index=221&type=chunk)[223](index=223&type=chunk)[227](index=227&type=chunk) [Balance Sheet Analysis](index=69&type=section&id=Balance%20Sheet%20Analysis) Total assets grew to **$67.2 billion** due to BTFP borrowings, loans increased to **$48.9 billion**, and deposits decreased to **$54.7 billion**, improving the uninsured deposit ratio to **44%** - Total loans held-for-investment reached **$48.9 billion**, a 1% increase from year-end 2022, driven by growth in residential mortgage and CRE loans[269](index=269&type=chunk) - Total deposits decreased by **$1.2 billion** (2%) from year-end 2022, with noninterest-bearing demand deposits falling by **$2.7 billion** and money market deposits falling by **$3.0 billion**, partially offset by a **$2.8 billion** increase in time deposits[298](index=298&type=chunk)[299](index=299&type=chunk) - The company's domestic uninsured deposit ratio improved to **44%** as of March 31, 2023, compared to **50%** as of December 31, 2022[300](index=300&type=chunk) [Regulatory Capital and Ratios](index=79&type=section&id=Regulatory%20Capital%20and%20Ratios) The company and Bank maintained strong capital positions, exceeding all 'well-capitalized' requirements, with a CET1 ratio of **13.1%** and Total capital ratio of **14.5%** Company Capital Ratios | Ratio | March 31, 2023 | Minimum for Well-Capitalized* | | :--- | :--- | :--- | | Common Equity Tier 1 | 13.1% | 6.5% (Bank) | | Tier 1 Capital | 13.1% | 8.0% (Bank) | | Total Capital | 14.5% | 10.0% (Bank) | | Tier 1 Leverage | 10.0% | 5.0% (Bank) | *Well-capitalized requirements shown are for the Bank subsidiary [Risk Management](index=80&type=section&id=Risk%20Management) The company's ERM framework maintains strong credit quality with nonperforming assets at **0.14%**, increased liquidity to **$30.7 billion** via BTFP, and remains asset sensitive to interest rates - Nonperforming assets decreased by 6% to **$93.4 million**, representing **0.14%** of total assets as of March 31, 2023[319](index=319&type=chunk) - Total available liquidity sources, including cash and borrowing capacity, increased to **$30.7 billion** as of March 31, 2023, from **$26.5 billion** at year-end 2022, bolstered by borrowings from the BTFP[336](index=336&type=chunk) - The company's net interest income is asset sensitive, with a simulation showing a **4.8%** increase over 12 months in a **+100 bps** instantaneous rate shock scenario[349](index=349&type=chunk)[350](index=350&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=93&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section cross-references detailed market risk disclosures found in Item 2 (MD&A – Risk Management) and Note 6 (Derivatives) of the financial statements [Item 4. Controls and Procedures](index=93&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period[375](index=375&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[377](index=377&type=chunk) [PART II — OTHER INFORMATION](index=94&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=94&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions in the ordinary course of business, none of which are expected to have a material adverse effect on its financial condition - The company is a party to various legal actions arising in the ordinary course of business but does not expect them to have a material adverse effect on its financial condition[185](index=185&type=chunk)[186](index=186&type=chunk)[380](index=380&type=chunk) [Item 1A. Risk Factors](index=94&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors from the 2022 Form 10-K, focusing on risks from recent bank failures, including increased FDIC premiums, regulatory changes, and heightened liquidity risk, leading to **$4.5 billion** in BTFP borrowings - The failures of Silicon Valley Bank, Signature Bank, and First Republic Bank have created industry disruption and could lead to increased FDIC premiums or special assessments[381](index=381&type=chunk)[382](index=382&type=chunk) - The company faces enhanced liquidity risk due to the proportion of its deposits that exceed FDIC insurance limits, which could lead to significant withdrawals in a short period[383](index=383&type=chunk) - To manage liquidity risk in the current environment, the company borrowed **$4.5 billion** from the Federal Reserve's Bank Term Funding Program (BTFP) during the first quarter of 2023[383](index=383&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=95&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or share repurchase activities during Q1 2023 - There were no unregistered sales of equity securities or share repurchases during Q1 2023[385](index=385&type=chunk)