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]

The upcoming report from East West Bancorp (EWBC) is expected to reveal quarterly earnings of $2.48 per share, indicating an increase of 19.2% compared to the year-ago period. Analysts forecast revenues of $748.39 million, representing an increase of 10.7% year over year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before a company announce ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering East West Bancorp (EWBC) , which belongs to the Zacks Banks - West industry.This bank holding company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 6.87%.For the most recent quarter, East West Bancorp was expected to post earnings of $2.35 per share ...

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]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: East West Bancorp (EWBC) - EWBC currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Performance Metrics - EWBC shares have increased by 2.98% over the past week, while the Zacks Banks - West industry has risen by 3.18% during the same period [5] - Over the last month, EWBC's price change is 14.11%, outperforming the industry's 11.55% [5] - In the last quarter, EWBC shares rose by 6.77%, and over the past year, they gained 21.45%, compared to the S&P 500's increases of 2.44% and 16.74%, respectively [6] Trading Volume - The average 20-day trading volume for EWBC is 546,251 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, 6 earnings estimates for EWBC have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $9.04 to $9.42 [9] - For the next fiscal year, 8 estimates have also moved higher, indicating positive sentiment around the company's earnings potential [9] Conclusion - Given the strong performance metrics and positive earnings outlook, EWBC is positioned as a solid momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [11]

Core Insights - The year has been marked by volatility in the markets, initially driven by optimism surrounding President Trump's return, followed by market fluctuations due to tariff rollouts [1] - A strong recovery in the markets has been observed, reaching record highs, supported by the Federal Reserve's interest rate cuts, which have lowered rates by 75 basis points this year [2] - Banks are expected to benefit from a favorable operating environment in 2026, with anticipated growth in net interest income (NII) and deal-making activities [4] Banking Sector Overview - The Federal Reserve's interest rate cuts and stabilizing funding costs are setting the stage for a potentially favorable 2026 for banks, with expectations of increased revenues [2][8] - Banks are focusing on artificial intelligence (AI) and technology to enhance client experiences and expand online presence, which is crucial for capturing the growing mobile banking population [3] - Consumer spending remains resilient, and credit demand is showing early signs of recovery, contributing to a positive outlook for bank stocks [4] Investment Opportunities - East West Bancorp (EWBC), U.S. Bancorp (USB), and KeyCorp (KEY) are identified as compelling investment opportunities in the banking sector, with each company having a market cap exceeding $10 billion and expected earnings growth of more than 5% in 2026 [5] - EWBC has a market cap of $15.6 billion, with projected earnings growth of 13.4% this year and 7.4% in 2026, supported by solid loan demand and fee income focus [12] - USB, with a market cap of $83.5 billion, is expected to see earnings growth of 14.1% this year and 7.1% in 2026, bolstered by strategic acquisitions and rising NII [18] - KeyCorp, having a market cap of $22.4 billion, is projected to achieve earnings growth of 27.6% this year and 19.6% in 2026, benefiting from strong loan and deposit balances [23] Company-Specific Insights - East West Bancorp operates over 110 locations in the U.S. and China, with total assets of $79.7 billion and a focus on improving fee income and acquiring low-cost deposits [10][11] - U.S. Bancorp has strengthened its market position through acquisitions and partnerships, enhancing its digital capabilities and fee-based businesses [16][17] - KeyCorp is expanding its product offerings and market share through opportunistic acquisitions and is consolidating its branch network to adapt to rising digital banking demand [22]

Core Viewpoint - The article does not provide any specific insights or analysis regarding companies or industries, focusing instead on the authors' lack of positions in the mentioned stocks [1] Group 1 - No relevant company or industry information is presented in the article [1]

Core Insights - The investment landscape has experienced significant volatility this year, starting with optimism due to the new administration but facing challenges from tariffs and market fluctuations [1][2] Market Overview - Tariffs have been implemented but are less severe than expected, leading to a market rebound driven by Federal Reserve interest rate cuts and AI trends [2] - Bank stocks have remained a focal point amid macroeconomic uncertainties and geopolitical risks [2] Bank Performance and Recommendations - The operating environment for banks is improving, with rising loan demand as interest rates decline [3] - Analysts recommend focusing on fundamentally strong banks such as East West Bancorp (EWBC), Valley National Bancorp (VLY), and F.N.B. Corporation (FNB) for potential investment opportunities [3][5] Analyst Insights - Analysts leverage deep sector insights to evaluate company fundamentals against economic conditions, making their recommendations valuable for identifying strong investment candidates [4] Selected Bank Stocks - East West Bancorp (EWBC) has a market cap of $15.6 billion, with earnings projected to grow 7.4% in 2026 and a year-to-date growth of 13.4% [9][11] - Valley National Bancorp (VLY) has a market cap of $6.6 billion, with earnings expected to increase 28.1% in 2026 and a year-to-date growth of 31.6% [17] - F.N.B. Corporation (FNB) has a market cap of $6.3 billion, with earnings projected to rise 14.2% in 2026 and a year-to-date growth of 18.6% [22] Growth Drivers - EWBC's growth is supported by solid liquidity, loan demand, and a strong capital distribution plan [10] - VLY's growth is driven by robust loan balances, strategic expansions, and margin improvements [16] - FNB's growth is bolstered by stabilizing deposit costs, loan demand, and planned branch expansions [21]