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].

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].

Financial Data and Key Metrics Changes - In Q3 2024, net income was $299 million, or $2.14 per diluted share, with a 1% quarter-over-quarter growth in average loans and a 3% growth in average deposits [4][6] - Net interest income increased by $20 million, or 4%, from the previous quarter, primarily due to higher loan income, while the cost of average interest-bearing deposits decreased [4][8] - Tangible book value per share grew by 7%, and the return on average tangible common equity was over 17% [5] Business Line Data and Key Metrics Changes - Average and period-end loans grew by 1% quarter-over-quarter, with consistent residential mortgage production and strong C&I growth driven by entertainment and private equity sectors [6] - Average and end-of-period deposits reached a record $61.7 billion, with a non-interest-bearing deposit mix of 24% of total deposits [6][7] - Fee income reached a record level of $81 million, up 6% quarter-over-quarter, driven by strong syndications activity and commercial cash management solutions [9] Market Data and Key Metrics Changes - The securities portfolio increased to $13.1 billion, with a significant portion in Ginnie Mae floating rate securities, and average cash and equivalents rose to $5 billion [7] - The net interest margin was 3.24%, a decline of 3 basis points from the prior quarter, reflecting Fed rate cuts [8] Company Strategy and Development Direction - The company aims to optimize its liability profile by managing deposit pricing and leveraging organic net inflows to enhance liquidity [14] - There are no current plans to open additional branches or deepen the network in China, focusing instead on optimizing existing operations [32] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about credit risk and expects net charge-offs to be in the range of 15 to 25 basis points for Q4 and the full year [11] - The company anticipates full-year end-of-period loan growth in the range of 2% to 4%, with net interest income expected to decline by 2% to 4% [12][13] Other Important Information - The allowance for credit losses at the end of Q3 was $696 million, or 1.31% of total loans, indicating a stable credit quality [11] - The common equity tier one capital ratio stands at 14.1%, well above regulatory requirements [12] Q&A Session Summary Question: Deposit growth rate and loan-to-deposit ratio - Management indicated that the faster deposit growth provides more flexibility for funding loan growth, with a deliberate strategy to lower deposit pricing [14] Question: Capital management and buybacks - Management expressed a patient approach to capital management, focusing on optimizing the balance sheet before considering buybacks [19][22] Question: Loan growth expectations post-elections - Management noted that loan growth could return to high single digits if economic conditions improve post-elections, but current customer loan utilization is lower than historical averages [28][30] Question: Fee income sustainability - Management believes that the strong fee income results are driven by focused sales efforts and are optimistic about maintaining growth in this area [36][38]

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, ...

E TEASTWEST BANK NEWS RELEASE FOR INVESTOR INQUIRIES, CONTACT: Christopher Del Moral-Niles, CFA Chief Financial Officer T: (626) 768-6860 E: chris.delmoralniles@eastwestbank.com East West Bancorp, Inc. 135 N. Los Robles Ave., 7th Fl. Pasadena, CA 91101 Tel. 626.768.6000 | --- | |---------------------------------------| | | | Adrienne Atkinson | | Director of Investor Relations | | T: (626) 788-7536 | | E: adrienne.atkinson@eastwestbank.com | EAST WEST BANCORP REPORTS NET INCOME FOR THIRD QUARTER OF 2024 OF ...

Core Viewpoint - East West Bancorp (EWBC) has consistently surpassed earnings estimates and is well-positioned for future earnings growth, making it a strong candidate for investors [1][2]. Earnings Performance - East West Bancorp has recorded an average earnings surprise of 4.54% over the last two quarters, with the most recent earnings of $2.07 per share exceeding the Zacks Consensus Estimate of $1.97 per share by 5.08% [1]. - In the previous quarter, the company reported earnings of $2.08 per share against an expectation of $2 per share, resulting in a surprise of 4% [1]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for East West Bancorp, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [2]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced a positive surprise nearly 70% of the time [2]. Earnings ESP Metric - East West Bancorp currently has an Earnings ESP of +0.10%, suggesting analysts are optimistic about its near-term earnings potential [3]. - The next earnings report for East West Bancorp is expected to be released on October 22, 2024 [3]. Importance of Earnings ESP - The Earnings ESP metric is crucial for predicting earnings performance, as a negative value can reduce its predictive power, but does not necessarily indicate an earnings miss [3][4]. - Utilizing the Earnings ESP Filter can help identify the best stocks to buy or sell prior to earnings reports [4].