分组1 - East West Bancorp (EWBC) reported quarterly earnings of $2.52 per share, exceeding the Zacks Consensus Estimate of $2.48 per share, and showing an increase from $2.08 per share a year ago, representing an earnings surprise of +1.61% [1] - The company achieved revenues of $758.25 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.32%, and up from $675.79 million year-over-year [2] - East West Bancorp has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 2.8% since the beginning of the year, compared to the S&P 500's gain of 0.4% [3] - The current consensus EPS estimate for the upcoming quarter is $2.44 on revenues of $747.71 million, and for the current fiscal year, it is $10.20 on revenues of $3.06 billion [7] - The Zacks Industry Rank for Banks - West is in the top 33% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Data and Key Metrics Changes - 2025 was a record-breaking year for the company, achieving new full-year record levels in revenue, net interest income, fees, non-interest income, earnings per share, loans, and deposits [5] - End-of-period deposits grew by 6% year-over-year, with significant traction in both non-interest-bearing and time deposits [5] - End-of-period loans also increased by 6%, driven by growth in commercial and industrial (C&I) and residential mortgage lending [5] - Tangible book value per share grew by 17%, and the company generated a 17% return on tangible common equity [6] Business Line Data and Key Metrics Changes - Fee income grew by 12% in 2025, achieving record levels driven by strong performance in wealth management, derivatives, foreign exchange, deposit fees, and lending fees [11] - C&I loan growth in Q4 was primarily driven by new relationships, with expectations for continued strength in 2026 [9] - Residential mortgage lending also performed well, with a strong pipeline expected to contribute consistently to growth [9] Market Data and Key Metrics Changes - The company reported a fourth-quarter net interest income of $658 million, benefiting from short-term liability sensitivity and favorable deposit mix shifts [10] - The cost of deposits decreased by 23 basis points quarter-over-quarter, with a total reduction of 105 basis points since the start of the cutting cycle [10] Company Strategy and Development Direction - The company remains committed to disciplined capital management and delivering top-tier returns for shareholders through prudent growth and robust risk management [7] - A focus on deposit growth through dedicated business checking campaigns is planned to continue into 2026 [8] - The company aims to maintain a balanced growth strategy across multiple loan categories, including C&I, CRE, and residential mortgages [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic outlook for 2026, anticipating stronger loan growth compared to 2025 [20] - The company is focused on maintaining high performance relative to peers, regardless of economic conditions [22] - Management expects net interest income growth to be in the range of 5%-7% for 2026, driven by balance sheet growth [11] Other Important Information - The board declared a $0.20 increase to the quarterly dividend, raising it to $0.80 per share, a 33% increase [7] - The company’s regulatory capital ratios remain well above regulatory requirements, with a Common Equity Tier 1 capital ratio of 15.1% [16] Q&A Session Summary Question: Loan growth expectations for 2026 - Management acknowledged strong loan growth in Q4 but emphasized caution in projecting future growth due to potential economic volatility [21] Question: Areas of expense growth - The company is investing in technology, hiring for wealth management, commercial banking, and risk management, with a focus on supporting future growth [25][26] Question: Fee income growth trends - Management aims to continue double-digit growth in fee income, supported by investments in various business areas [33] Question: Commercial real estate (CRE) growth opportunities - Management expects to see increased activity in CRE lending, focusing on long-term relationships with experienced operators [34][36] Question: Capital management and buyback strategy - The company will continue to be opportunistic with buybacks, focusing on creating value for shareholders [100] Question: Credit charge-off guidance for 2026 - The increase in charge-off guidance reflects potential individual credit issues, despite overall strong credit metrics [46][48] Question: Net interest margin outlook - Management expects to offset declining rates with balance sheet growth, maintaining a focus on dollar net interest income [52] Question: Deposit costs and trends - The company has been disciplined in managing deposit costs and expects to maintain a beta exceeding 0.5 [45] Question: Blockchain and cryptocurrency integration - Management is monitoring developments in blockchain technology but sees it as still early for significant integration into their services [70]

Financial Data and Key Metrics Changes - 2025 was a record-breaking year for the company, achieving new full-year record levels in revenue, net interest income, fees, non-interest income, earnings per share, loans, and deposits [5][6] - End-of-period deposits grew by 6% year-over-year, with significant traction in both non-interest-bearing and time deposits [5] - End-of-period loans also increased by 6%, driven by growth in commercial and industrial (C&I) and residential mortgage lending [5][9] - Tangible book value per share grew by 17%, and the company generated a 17% return on tangible common equity [6][7] - A quarterly dividend increase of $0.20 was declared, raising it to $0.80 per share, a 33% increase [7][17] Business Line Data and Key Metrics Changes - Fee income grew by 12% in 2025, achieving record levels driven by strong performance in wealth management, derivatives, foreign exchange, deposit fees, and lending fees [11][12] - C&I loan growth in Q4 was primarily driven by new relationships, with expectations for continued growth in 2026 [9][10] - Residential mortgage lending also performed well, with a strong pipeline expected to contribute consistently to growth [9] Market Data and Key Metrics Changes - The company reported a fourth-quarter net interest income of $658 million, benefiting from short-term liability sensitivity and favorable deposit mix shifts [10] - The cost of deposits was reduced by 23 basis points quarter-over-quarter, with a total reduction of 105 basis points since the start of the cutting cycle [10] Company Strategy and Development Direction - The company remains committed to disciplined capital management and delivering top-tier returns for shareholders through prudent growth and robust risk management [7][17] - A focus on deposit growth through dedicated business checking campaigns is planned to continue into 2026 [8] - The company aims to maintain a balanced growth across multiple loan categories, including C&I, CRE, and residential mortgages [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic outlook for 2026, anticipating stronger loan growth compared to 2025 [20][22] - The company is focused on maintaining high performance relative to peers, regardless of economic conditions [22] - Management projected net charge-offs for 2026 to be in the range of 20 to 30 basis points, reflecting a cautious approach to credit risk [16][18] Other Important Information - The company’s regulatory capital ratios remain well above regulatory requirements, with a Common Equity Tier 1 capital ratio of 15.1% and a tangible common equity ratio of 10.5% [16] - The company is actively investing in technology and hiring to support growth, with total operating non-interest expenses expected to grow by 7% to 9% in 2026 [12][13] Q&A Session Summary Question: Loan growth expectations for 2026 - Management acknowledged strong loan growth in Q4 but emphasized caution in projecting growth for 2026 due to potential economic volatility [20][21] Question: Areas of expense growth - The company highlighted technology investments, hiring in wealth management, commercial banking, and risk management as key areas driving expense growth [25][26] Question: Fee income growth trends - Management expressed aspirations to continue double-digit growth in fee income, supported by investments in various business segments [32][33] Question: Commercial real estate (CRE) growth opportunities - Management indicated expectations for increased activity in CRE, while maintaining a disciplined approach to lending [34][36] Question: Capital management and buyback strategy - The company remains opportunistic regarding buybacks, focusing on creating shareholder value without urgency [96][98] Question: Deposit costs and trends - Management noted a disciplined approach to managing deposit costs, with expectations for betas to exceed 0.5 [44][45] Question: Credit charge-off guidance for 2026 - The increase in charge-off guidance reflects a cautious outlook despite strong credit metrics [46][47] Question: Net interest margin outlook - Management expects to offset declining rates with balance sheet growth, maintaining a focus on growing dollar net interest income [50][51] Question: Non-interest-bearing deposit growth sustainability - The company plans to continue driving core commercial deposit growth, which has shown strong results [53][54]

Financial Data and Key Metrics Changes - In 2025, East West Bancorp achieved record levels in multiple categories including revenue, net interest income, fees, non-interest income, earnings per share, loans, and deposits, with a 6% year-over-year growth in both deposits and loans [4][5] - The tangible book value per share grew by 17%, and the return on tangible common equity was also 17% [5] - A quarterly dividend increase of 33% was announced, raising it to $0.80 per share [5][14] Business Line Data and Key Metrics Changes - The end-of-period loans grew by 6%, driven by growth in commercial and industrial (C&I) and residential mortgage lending [4][6] - Fee income increased by 12% in 2025, achieving record levels across various fee-based businesses [10][11] - The efficiency ratio for the fourth quarter was reported at 34.5%, with total operating non-interest expenses growing by 7.5% [11][12] Market Data and Key Metrics Changes - The bank's core deposit growth was prioritized, with a 1% improvement in demand deposit accounts (DDA) to 25% of total deposits [6] - The net interest income for the fourth quarter was $658 million, benefiting from balance sheet growth and favorable deposit mix shifts [9] - The bank expects total loan growth in 2026 to be in the range of 5%-7%, driven by continued strength in C&I and residential mortgage production [16] Company Strategy and Development Direction - The company remains committed to disciplined capital management and aims to deliver top-tier returns through prudent growth and robust risk management [5][14] - Investments in technology and hiring are expected to drive future growth, with a focus on wealth management and commercial banking [24][58] - The bank is exploring inorganic growth opportunities to bolster fee income, while maintaining a strong capital position [51][53] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic outlook for 2026, anticipating stronger loan growth compared to 2025 [20][21] - The bank is focused on maintaining high performance relative to peers, regardless of economic conditions [21] - Credit quality remains strong, with low levels of net charge-offs projected for 2026 [13][17] Other Important Information - The allowance for credit losses was increased from $791 million to $810 million, maintaining a ratio of 1.42% [14] - The bank's Common Equity Tier 1 capital ratio stands at 15.1%, well above regulatory requirements [14] Q&A Session Summary Question: Loan growth expectations for 2026 - Management acknowledged strong loan growth in Q4 but emphasized caution in projections due to seasonal patterns and economic uncertainties [19][20] Question: Expense growth areas - The bank is focusing on technology investments, hiring for wealth management, commercial banking, and risk management as key areas driving expense growth [24] Question: Fee income growth trends - Management aspires to continue double-digit growth in fee income, supported by investments in various business segments [26][27] Question: Commercial real estate (CRE) growth opportunities - There is an expectation for increased activity in CRE lending, but the bank will remain selective in partnerships [30][31] Question: Capital management and buyback strategy - The bank will continue to manage buybacks opportunistically, focusing on creating shareholder value without urgency [73] Question: Credit charge-off guidance for 2026 - The increase in charge-off guidance reflects potential individual credit migrations, despite overall strong credit quality [36][37] Question: Net interest margin outlook - The bank expects to offset declining rates with balance sheet growth, maintaining a focus on dollar net interest income [40][41] Question: Deposit costs and beta trends - Management is confident in maintaining a deposit beta exceeding 0.5, with a current beta of 0.6 [34][35]

East West Bancorp, Inc. Fourth Quarter and Full Year 2025 Earnings Presentation January 22, 2026 Industry Information This presentation includes statistical and other industry and market data that we obtained from government reports and other third-party sources. Although we believe that this information is accurate and reliable, we have not independently verified such information. Forward-looking information that we have obtained from these sources is subject to the same uncertainties and qualifications as ...

Financial Performance - Full year 2025 net income reached a record $1.3 billion, or $9.52 per diluted share, representing a 14% increase year-over-year[1][3][13] - Total revenue for 2025 was $2.93 billion, up $318 million, or 12% year-over-year, driven by record net interest income and noninterest income[2][3][13] - Net income for Q4 2025 was $356.3 million, an increase from $293.1 million in Q4 2024, representing a 21.5% year-over-year growth[93] - Adjusted net income for Q4 2025 was $350.842 million, up from $290.496 million in Q4 2024, reflecting a growth of 20.8%[80] - Net interest income for the three months ended December 31, 2025, was $657,824 thousand, an increase from $587,626 thousand for the same period in 2024[74] - Net interest income after provision for credit losses reached $627.8 million, up 21.3% year-over-year from $517.6 million[37] - Total revenue for Q4 2025 was $758.254 million, an increase from $675.792 million in Q4 2024, marking a growth of 12.2%[86] Deposits and Loans - Total deposits increased to a record $67.1 billion, up $3.9 billion, or 6% year-over-year, with noninterest-bearing deposits comprising 25% of total deposits[3][6] - Total loans reached a record $56.9 billion, an increase of $3.2 billion, or 6% year-over-year[3][6] - Total deposits rose to $67.1 billion, a 6.2% increase from $63.2 billion year-over-year[33] - Total loans increased to $55.64 billion as of December 31, 2025, reflecting a 4.6% year-over-year growth[47] - Total loans increased to $56.9 billion, a 5.9% year-over-year growth from $53.7 billion[33] Asset Management - Total assets increased to $80.43 billion as of December 31, 2025, a 1.0% increase quarter-over-quarter and a 5.9% increase year-over-year[31] - The company’s total assets amounted to $79.74 billion, reflecting a 6.1% increase year-over-year[47] - Average total assets increased to $79.741 billion in Q4 2025 from $75.121 billion in Q4 2024, reflecting a growth of 6.5%[86] - Total assets as of December 31, 2025, reached $80.4 billion, up from $76.0 billion a year earlier, indicating a growth of 5.8%[93] Equity and Dividends - The board declared a quarterly common stock dividend of $0.80 per share, a 33% increase from the previous $0.60 per share[20] - Stockholders' equity increased to $8.77 billion as of December 31, 2025, up from $7.73 billion in 2024, reflecting a growth of 13.5%[53] - Stockholders' equity increased to $8.9 billion in Q4 2025, compared to $7.7 billion in Q4 2024, marking a 15.2% rise[93] - The total stockholders' equity to assets ratio improved to 11.06% in Q4 2025, up from 10.17% in Q4 2024[93] Credit Quality - Fourth quarter 2025 net charge-offs were $12 million, or annualized 0.08% of average loans HFI, down from $18 million, or 0.13% in the third quarter of 2025[23] - Full year 2025 net charge-offs totaled $60 million, or 0.11% of average loans HFI, compared to $139 million, or 0.26% for full year 2024[23] - The criticized loans ratio decreased to 2.01% of loans HFI as of December 31, 2025, down 13 basis points from 2.14% as of September 30, 2025[23] - Nonperforming assets rose to $208 million as of December 31, 2025, from $201 million as of September 30, 2025, with a nonperforming assets ratio of 0.26%[23] - The total criticized loans as of December 31, 2025, amounted to $1,141,149, a decrease from $1,191,319 as of September 30, 2025, and $1,173,153 as of December 31, 2024[70] Efficiency and Ratios - The efficiency ratio improved to 34.5% in the fourth quarter, compared to 35.6% in the prior quarter[17] - Return on average assets for Q4 2025 was 1.77%, a decrease of 7 basis points quarter-over-quarter and an increase of 22 basis points year-over-year[58] - Return on average common equity for Q4 2025 was 16.11%, down 133 basis points from the previous quarter but up 103 basis points from the same quarter last year[58] - Adjusted efficiency ratio for Q4 2025 was 35.17%, compared to 33.76% in Q3 2025 and 37.54% in Q4 2024, indicating improved operational efficiency[86] Interest Income and Expenses - Interest and dividend income for the year was $4.3 billion, a 2.4% increase from $4.2 billion year-over-year[42] - Total noninterest expense for the year was $1.05 billion, a 9.2% increase from $958.1 million year-over-year[42] - The company reported a net interest income before provision for credit losses of $2.55 billion, a 12.0% increase from $2.28 billion year-over-year[42] - The average yield on loans was 6.20% for the three months ended December 31, 2025, compared to 6.61% in the previous quarter[50] - The average yield on interest-bearing liabilities decreased to 3.11% in Q4 2025 from 3.71% in Q4 2024[53]

Core Viewpoint - East West Bancorp (EWBC) is expected to report quarterly earnings of $2.48 per share, a 19.2% increase year-over-year, with revenues projected at $748.39 million, reflecting a 10.7% year-over-year growth [1] Financial Estimates - Analysts have maintained the consensus EPS estimate for the quarter over the last 30 days, indicating a collective reevaluation of initial estimates [1][2] - The 'Net interest margin' is projected to reach 3.4%, up from 3.2% in the same quarter last year [4] - The 'Efficiency ratio' is expected to be 35.4%, improved from 36.9% in the previous year [4] - The 'Leverage ratio' is estimated at 10.8%, compared to 10.4% a year ago [4] Asset and Loan Metrics - 'Average Balance - Total interest-earning assets' is forecasted to be $77.12 billion, an increase from $72.15 billion in the same quarter last year [5] - 'Total nonaccrual loans' are expected to be $158.73 million, slightly down from $159.02 million in the previous year [5] - 'Total nonperforming assets' are projected at $192.73 million, down from $194.10 million a year ago [6] Capital Ratios - The 'Total capital ratio' is estimated at 16.2%, up from 15.6% in the same quarter last year [6] - The 'Tier 1 capital ratio' is expected to be 14.9%, compared to 14.3% in the same quarter last year [7] Income Projections - 'Total Noninterest Income' is projected at $92.19 million, an increase from $88.17 million in the same quarter last year [7] - 'Net Interest Income' is expected to reach $655.63 million, up from $587.63 million in the same quarter last year [8] - 'Commercial and consumer deposit-related fees' are forecasted at $28.65 million, compared to $26.47 million in the previous year [8] - 'Lending fees' are expected to be $27.85 million, up from $24.74 million in the same quarter last year [9] Market Performance - Shares of East West Bancorp have shown a return of +0.5% over the past month, while the Zacks S&P 500 composite has increased by +2% [9]

Core Viewpoint - East West Bancorp (EWBC) is well-positioned to continue its earnings-beat streak in the upcoming report, having a history of exceeding earnings estimates, particularly in the last two quarters with an average surprise of 6.87% [1] Earnings Performance - For the most recent quarter, East West Bancorp reported earnings of $2.62 per share, surpassing the expected $2.35 per share, resulting in a surprise of 11.49% [2] - In the previous quarter, the company reported $2.28 per share against an estimate of $2.23 per share, achieving a surprise of 2.24% [2] Earnings Estimates and Predictions - Recent estimates for East West Bancorp have been trending upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of another earnings beat [5] - The current Earnings ESP for East West Bancorp is +0.34%, suggesting analysts have become more optimistic about the company's earnings prospects [8] Zacks Rank and Success Rate - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests that the company has a nearly 70% chance of producing a positive surprise [6] - Stocks with this combination have historically shown that out of 10 stocks, approximately seven may beat the consensus estimate [6] Upcoming Earnings Report - East West Bancorp's next earnings report is expected to be released on January 22, 2026 [8]

Core Insights - Regional banks are reaching all-time highs, with lesser-known names like Citizens Financial Group, East West Bancorp, and Wintrust Financial Corporation leading the charge [1][2]. Group 1: Citizens Financial Group - Citizens Financial Group operates in the Eastern and Midwestern United States, offering a range of banking services, and currently trades at a forward P/E ratio of about 12 [5]. - The bank has a market capitalization of $25 billion and is expected to see earnings growth of over 31% next year, increasing from $3.83 to $5.03 per share, which could lead to a price surge [7]. - Factors such as an increasing net interest margin are contributing to Wall Street's positive outlook on Citizens Financial Group [7]. Group 2: East West Bancorp - East West Bancorp, based in Pasadena, California, has expanded from serving the Chinese-American community to becoming a major regional bank with branches across the West Coast and in Asia [8]. - The bank has a market cap of $15 billion and trades at 13.6 times forward earnings estimates, with analysts projecting a 6.7% increase in earnings next year [10]. - East West Bancorp has a forward dividend yield of about 2%, with dividends increasing by an average annual rate of 17% over the past five years, which may support its high valuation [11]. Group 3: Wintrust Financial Corporation - Wintrust, based in Rosemont, Illinois, operates in the Greater Chicago area and Southwest Florida, and is nearing historical highs [12]. - The bank has a market cap of $9.4 billion and trades at a reasonable 12 times forward earnings estimates, with expected earnings growth of only 4.3% next year [13]. - Wintrust has a forward dividend yield of 1.4%, with quarterly dividends growing by an average of 12.3% annually over the past five years, indicating potential for further stock price increases [14].

Core Points - East West Bancorp, Inc. announced plans to host conference calls to review financial results for specific periods [1] Group 1 - The financial results for the Fourth Quarter and Full Year 2025 will be released on January 22, 2026, at 2 p.m. PT/5 p.m. ET [1] - The financial results for the First Quarter 2026 will be released on April 21, 2026, at 2 p.m. PT/5 p.m. ET [1] - The financial results are scheduled to be released after the market closes on the specified dates [1]