Group 1 - East West Bancorp reported quarterly earnings of $2.08 per share, missing the Zacks Consensus Estimate of $2.13 per share, but showing an increase from $2.02 per share a year ago, resulting in an earnings surprise of -2.35% [1] - The company posted revenues of $675.79 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.28%, compared to year-ago revenues of $654.74 million [2] - East West Bancorp shares have increased approximately 7.3% since the beginning of the year, outperforming the S&P 500's gain of 3.5% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $2.07 on revenues of $651.43 million, and for the current fiscal year, it is $8.68 on revenues of $2.68 billion [7] - The Zacks Industry Rank for Banks - West is currently in the top 32% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Full year 2024 net income reached a record $1.2 billion, or $8.33 per diluted share, reflecting a 0.4% increase year-over-year[1] - Net income for the year ended December 31, 2024, was $1.17 billion, reflecting a 0.4% increase from $1.16 billion in 2023[40] - In Q4 2024, the Company reported a net income of $293.1 million, compared to $299.2 million in Q3 2024 and $239.0 million in Q4 2023, with a total net income of $1.1656 billion for the year 2024[72] - Adjusted net income for Q4 2024 was $290.5 million, slightly down from $291.3 million in Q3 2024 and up from $283.5 million in Q4 2023[72] - The diluted EPS for Q4 2024 was $2.10, compared to $2.14 in Q3 2024 and $1.69 in Q4 2023, with an adjusted diluted EPS of $2.08 for Q4 2024[72] Revenue and Income Sources - Total revenue for 2024 was $2.619 billion, an increase of $10 million, or 0% year-over-year[4] - Interest and dividend income for the year increased by 13.5% to $4.19 billion, up from $3.69 billion in 2023[40] - Noninterest income for the year was $335.22 million, a 13.5% increase from $295.26 million in 2023[40] - Noninterest income grew by 4% quarter-over-quarter to $88 million in Q4 2024[13] Assets and Liabilities - Total assets increased by $6.4 billion, or 9%, year-over-year, reaching $76.0 billion as of December 31, 2024[5] - Total assets as of December 31, 2024, were $75.976 billion, an increase from $74.484 billion in Q3 2024 and $69.613 billion in Q4 2023[75] - The company reported a total liabilities increase of 8.9% year-over-year, reaching $68.3 billion[30] - Stockholders' equity increased to $7.73 billion as of December 31, 2024, compared to $6.70 billion in the previous year, reflecting a growth of 15.4%[52] Deposits and Loans - Deposits grew by over $7 billion year-over-year, totaling $63.2 billion as of December 31, 2024, a 12.6% increase from $56.1 billion[2][5] - Total deposits increased to $63.2 billion, representing a 12.6% year-over-year growth[30] - Total loans held for investment (HFI) increased to $53.73 billion, up 2.9% year-over-year from $52.21 billion[32] - Total loans reached $53.20 billion for the three months ended December 31, 2024, compared to $51.25 billion in the prior year, marking a growth of 3.8%[49] Efficiency and Ratios - The efficiency ratio for Q4 2024 was 36.9%, compared to 34.3% in Q3 2024[15] - The efficiency ratio improved to 36.92% in Q4 2024, a decrease of 258 basis points quarter-over-quarter and 742 basis points year-over-year[55] - The net interest margin for the year ended December 31, 2024, was 3.27%, down from 3.61% in 2023, indicating a decline in profitability from interest-earning assets[52] - Return on average assets for Q4 2024 was 1.55%, a decrease of 7 basis points quarter-over-quarter and an increase of 18 basis points year-over-year[55] Credit Quality - Net charge-offs for Q4 2024 were $64 million, or an annualized 0.48% of average loans held-for-investment[20] - The allowance for loan losses increased to $702 million, or 1.31% of loans held-for-investment, as of December 31, 2024[20] - Total criticized loans reached $1,173,153,000 as of December 31, 2024, up from $978,210,000 as of December 31, 2023, indicating an increase of about 20.0%[62] - Nonperforming assets totaled $194,095,000 as of December 31, 2024, compared to $114,015,000 as of December 31, 2023, representing a significant increase of approximately 70.4%[63] Stockholder Actions - The company announced a 9% increase in its common stock dividend, raising it to $0.60 per share[18] - Share repurchase authorization was increased by $300 million, bringing total authorization to $329 million[19] Market Presence - The company has over 110 locations in the United States and Asia, focusing on expanding its market presence[22]

Core Viewpoint - East West Bancorp (EWBC) is expected to report quarterly earnings of $2.13 per share, a 5.5% increase year-over-year, with revenues projected at $654.31 million, reflecting a slight decrease of 0.1% compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised 0.3% higher in the last 30 days, indicating a collective reevaluation by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Key Financial Metrics - Analysts predict a 'Net interest margin' of 3.2%, down from 3.5% in the same quarter last year [5]. - The 'Average Balance - Total interest-earning assets' is expected to reach $71.31 billion, up from $65.51 billion year-over-year [5]. - The estimated 'Efficiency ratio' is 35.5%, significantly improved from 44.4% a year ago [5]. - The 'Leverage ratio' is projected at 10.6%, compared to 10.2% last year [6]. - The 'Total capital ratio' is expected to be 15.4%, up from 14.8% year-over-year [6]. - The 'Adjusted efficiency ratio' is estimated at 33.4%, slightly up from 33.1% in the same quarter last year [6]. - The 'Tier 1 capital ratio' is anticipated to reach 14.1%, compared to 13.3% last year [7]. - 'Total nonaccrual loans' are expected to be $161.74 million, up from $102.87 million year-over-year [7]. - 'Total nonperforming assets' are projected at $204.54 million, compared to $114.02 million last year [8]. - 'Total Noninterest Income' is expected to be $84.03 million, up from $79.90 million year-over-year [8]. - 'Net Interest Income' is projected at $571.36 million, slightly down from $574.83 million last year [8]. - 'Deposit account fees' are expected to reach $26.30 million, compared to $23 million in the same quarter last year [9]. Stock Performance - Shares of East West Bancorp have increased by 4.9% over the past month, contrasting with a -2.1% change in the Zacks S&P 500 composite [9]. - The company holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the overall market in the near future [10].

Core Viewpoint - The market anticipates East West Bancorp (EWBC) will report a year-over-year earnings increase despite a slight decline in revenues when it releases its quarterly results for December 2024 [1][3]. Earnings Expectations - The upcoming earnings report is expected on January 23, 2025, with a consensus EPS estimate of $2.13, reflecting a +5.5% year-over-year change [3]. - Revenues are projected to be $654.31 million, a decrease of 0.1% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.29% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for East West Bancorp is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.47% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - East West Bancorp currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, East West Bancorp exceeded the expected EPS of $2.05 by delivering $2.09, resulting in a surprise of +1.95% [12]. - The company has successfully beaten consensus EPS estimates in each of the last four quarters [13]. Industry Context - Another player in the Zacks Banks - West industry, Zions (ZION), is expected to report earnings of $1.26 per share for the same quarter, indicating a year-over-year decline of -2.3% [17]. - Zions' revenues are expected to be $791.67 million, reflecting a 6.8% increase from the previous year [17]. - Zions has also seen a 0.1% upward revision in its EPS estimate over the last 30 days, with an Earnings ESP of 2.13% and a Zacks Rank of 3, suggesting a likely earnings beat [18].

Shares of East West Bancorp (EWBC) have been struggling lately and have lost 5.6% over the past two weeks. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road.The formation of a hammer pattern is considered a technical indication of nearing a bottom with likely subsiding of selling pressure. But this is not the only factor that makes a bullish c ...

Financial Performance - Net income for Q3 2024 was $299 million, up $11 million or 4% from Q3 2023, while net income for the first nine months of 2024 decreased by $50 million or 5% year-over-year to $872 million [246]. - Net interest income for Q3 2024 was $572,722 thousand, compared to $570,813 thousand in Q3 2023, reflecting a slight increase of 0.3% [263]. - Total revenue for Q3 2024 was $657,483 thousand, an increase from $647,565 thousand in Q3 2023, while total revenue for the nine months ended September 30, 2024, was $1,939,512 thousand, down from $1,952,781 thousand in the same period last year [427]. - Adjusted diluted EPS for Q3 2024 was $2.09, compared to $2.02 in Q3 2023, and for the nine months ended September 30, 2024, it was $6.22, down from $6.53 in the same period last year [424]. - The return on average tangible common equity (TCE) for Q3 2024 was 17.08%, down from 18.65% in Q3 2023 [425]. Asset and Loan Growth - As of September 30, 2024, total assets increased to $74.5 billion from $69.6 billion at the end of 2023, representing a growth of approximately 4% [243]. - Total loans increased to $53.3 billion as of September 30, 2024, compared to $52.2 billion at the end of 2023, marking a growth of approximately 2% [243]. - Average loans grew by $1.8 billion or 6% year-over-year to $32.9 billion for the first nine months of 2024 [298]. - Total loans reached $52,420,516 thousand in Q3 2024, up from $49,888,862 thousand in Q3 2023, marking an increase of approximately 5.1% [263]. - Total residential mortgage loans amounted to $15.72 billion as of September 30, 2024, compared to $15.11 billion as of December 31, 2023 [331]. Deposits and Funding - Total deposits increased to $61.7 billion as of September 30, 2024, up $5.6 billion or 10% from December 31, 2023 [250]. - The Company experienced a 29% increase in time deposits, which rose to $23.2 billion as of September 30, 2024, from $18.0 billion as of December 31, 2023 [343]. - Uninsured domestic deposits, excluding collateralized and affiliate deposits, totaled $25.9 billion as of September 30, 2024, representing 44% of total domestic deposits [348]. - FHLB advances amounted to $3.5 billion as of September 30, 2024, compared to no advances as of December 31, 2023, indicating a shift in funding strategy [349]. Noninterest Income - Noninterest income for Q3 2024 was $84.8 million, a 10% increase from $76.8 million in Q3 2023, driven by higher lending, wealth management, and deposit account fees [2]. - Noninterest income for the first nine months of 2024 was $248 million, up from $215 million in the same period of 2023, indicating a year-over-year increase of about 15% [244]. - Deposit account fees increased by $3 million or 14% to $26.8 million in Q3 2024 compared to Q3 2023 [3]. - Lending fees rose by $6 million or 30% to $26.5 million in Q3 2024 compared to Q3 2023 [4]. - Wealth management fees surged by $5 million or 80% to $10.7 million in Q3 2024 compared to Q3 2023 [5]. Expenses and Efficiency - Total noninterest expense for Q3 2024 was $226.2 million, a decrease of $26 million or 10% from $252 million in Q3 2023 [6]. - The efficiency ratio improved to 34.40% in Q3 2024 from 38.92% in Q3 2023, indicating better cost management [427]. - Compensation and employee benefits increased by $12 million or 10% to $135.5 million in Q3 2024 compared to Q3 2023 [7]. - Noninterest expense increased by $40.5 million or 16% year-over-year to $296.3 million for the first nine months of 2024, mainly due to higher compensation and employee benefits [298]. Credit Quality and Risk Management - The allowance for loan losses increased to $696.5 million as of September 30, 2024, compared to $668.7 million as of December 31, 2023 [317]. - Nonperforming assets were $195 million, representing 0.26% of total assets as of September 30, 2024, an increase of $81 million or 71% compared to $114 million or 0.16% of total assets as of December 31, 2023 [365]. - The net charge-offs for the three months ended September 30, 2024, were $29,363 thousand, compared to $18,146 thousand for the same period in 2023, indicating a significant increase of 62% [374]. - The Company’s credit risk management focuses on adherence to a well-controlled underwriting and loan monitoring process [360]. - The Credit Risk Management Committee oversees credit risk and evaluates overall credit risk exposure to senior management and the Risk Oversight Committee (ROC) [360]. Capital and Shareholder Returns - Stockholders' equity rose to $7.7 billion as of September 30, 2024, a 10% increase from $7.0 billion as of December 31, 2023 [251]. - The Company declared a fourth quarter 2024 cash dividend of $0.55 per share, consistent with the third quarter 2024 dividend [342]. - The Company maintains a strong capital base to support anticipated asset growth and ensure compliance with regulatory capital guidelines [337]. - The Company's stockholders' equity increased to $7.7 billion as of September 30, 2024, up by $714 million or 10% from $7.0 billion as of December 31, 2023, primarily driven by $872 million of net income [340]. Interest Rate Sensitivity - The net interest income sensitivity to a +200 bps change in interest rates is projected to be 6.4% as of September 30, 2024, compared to 4.6% on December 31, 2023 [402]. - The Company’s net interest income profile indicates an asset-sensitive position, with variable rate loans expected to increase net interest income when interest rates rise [406]. - The Company utilizes interest rate swaps to hedge variability in interest received on floating-rate loans and interest paid on floating-rate borrowings [412]. - The economic value of equity (EVE) sensitivity shows a decrease of (10.2)% for a +200 bps change in interest rates as of September 30, 2024, compared to (10.3)% on December 31, 2023 [410].

ANK East West Bancorp, Inc. 3Q Earnings Presentation October 22, 2024 3Q 24 EWBC NasdaqListed 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 to ...

East West Bancorp, Inc. (NASDAQ:EWBC) Q3 2024 Earnings Conference Call October 22, 2024 5:00 PM ET Company Participants Adrienne Atkinson - Director, Investor Relations Dominic Ng - Chairman and CEO Christopher Del Moral-Niles - Chief Financial Officer Irene Oh - Chief Risk Officer Conference Call Participants Manan Gosalia - Morgan Stanley Dave Rochester - Compass Point Jared Shaw - Barclays Ebrahim Poonawala - Bank of America Timur Braziler - Wells Fargo Matthew Clark - Piper Sandler Chris McGratty - KBW ...

For the quarter ended September 2024, East West Bancorp (EWBC) reported revenue of $657.48 million, up 1.5% over the same period last year. EPS came in at $2.09, compared to $2.02 in the year-ago quarter.The reported revenue represents a surprise of +2.44% over the Zacks Consensus Estimate of $641.8 million. With the consensus EPS estimate being $2.05, the EPS surprise was +1.95%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

East West Bancorp (EWBC) came out with quarterly earnings of $2.09 per share, beating the Zacks Consensus Estimate of $2.05 per share. This compares to earnings of $2.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.95%. A quarter ago, it was expected that this bank holding company would post earnings of $1.97 per share when it actually produced earnings of $2.07, delivering a surprise of 5.08%.Over the last four quarters, ...