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 ...

分组1 - East West Bancorp reported quarterly earnings of $2.09 per share, exceeding the Zacks Consensus Estimate of $2.05 per share, and showing an increase from $2.02 per share a year ago, representing an earnings surprise of 1.95% [1] - The company achieved revenues of $657.48 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.44%, and up from $647.57 million year-over-year [1] - Over the last four quarters, East West Bancorp has consistently surpassed consensus EPS and revenue estimates [1] 分组2 - The stock has gained approximately 23.8% since the beginning of the year, outperforming the S&P 500's gain of 22.7% [2] - The current consensus EPS estimate for the upcoming quarter is $2.02 on revenues of $636.43 million, while for the current fiscal year, the estimate is $8.21 on revenues of $2.56 billion [4] - The Zacks Industry Rank for Banks - West is currently in the bottom 38% of over 250 Zacks industries, indicating potential challenges for stock performance [5]

Financial Performance - Third quarter 2024 net income was $299 million, or $2.14 per diluted share, representing a 4% increase quarter-over-quarter[2] - Net income for the quarter was $299 million, reflecting a 3.8% increase from the previous quarter and a 4.0% increase year-over-year[26] - Earnings per share (EPS) increased to $2.16, a 4.1% rise from the previous quarter and a 6.1% rise year-over-year[26] - Adjusted net income for the nine months ended September 30, 2024, was $870,948 thousand, compared to $928,078 thousand for the same period in 2023[57] Assets and Liabilities - Total assets increased to $74.5 billion, up $2.0 billion or 3% from the previous quarter, and grew $6.2 billion or 9% year-over-year[4] - Total assets of East West Bancorp, Inc. reached $74.5 billion as of September 30, 2024, reflecting a year-over-year increase of 9.1%[22] - The total assets of the company amounted to $73,268,158, up from $71,189,200[33] - Total liabilities and stockholders' equity stood at $73,268,158, reflecting a growth from $68,936,786[35] Loans and Deposits - Total loans reached $53.3 billion, an increase of $0.5 billion or 1% from the second quarter, with a year-over-year growth of $2.3 billion or 5%[5] - Total deposits were $61.7 billion, reflecting a $1.7 billion or 3% increase from the previous quarter, and a $6.6 billion increase year-over-year[5] - Total loans increased by 1.0% to $52,420,516 compared to $51,918,788 in the previous year[31] - Total deposits grew by 3.2% to $60,585,256 from $58,680,799 year-over-year[31] Income and Expenses - Net interest income totaled $573 million, up 4% from $553 million in the second quarter, with a net interest margin of 3.24%[7] - Noninterest income remained stable at $85 million, with fee income increasing by 6% to $81 million[8] - Total noninterest expense was $226 million, with operating noninterest expense consistent at $221 million[9] - Total noninterest expense decreased by 4.3% quarter-over-quarter to $226 million, and decreased by 10.3% year-over-year[26] Capital and Ratios - The common equity tier 1 capital ratio increased to 14.08%, exceeding regulatory requirements[6] - The efficiency ratio improved to 34.4%, down from 37.0% in the previous quarter[9] - The efficiency ratio improved to 34.38%, a decrease from 38.89% year-over-year, showcasing better cost management[39] - The total stockholders' equity to assets ratio was 10.29%, up 63 basis points year-over-year[22] Credit Quality - Provision for credit losses was $42 million, representing a 13.5% increase from the previous quarter[26] - The allowance for loan losses was reported at $(691,399)[33] - The allowance for loan losses increased from $670,280,000 on March 31, 2024, to $696,485,000 by September 30, 2024, reflecting a proactive approach to credit risk management[43] - Nonperforming assets totaled $195,466 thousand as of September 30, 2024, slightly down from $196,282 thousand at June 30, 2024, and significantly up from $103,700 thousand at September 30, 2023[52] Shareholder Returns - A cash dividend of $0.55 per share was declared for the fourth quarter of 2024, payable on November 15, 2024[13] - Tangible book value per share increased to $51.90 as of September 30, 2024, from $48.65 in the previous quarter[59] - Total stockholders' equity increased to $7,664,539 thousand as of September 30, 2024, compared to $7,215,114 thousand in the previous quarter[59]

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].

Wall Street analysts forecast that East West Bancorp (EWBC) will report quarterly earnings of $2.05 per share in its upcoming release, pointing to a year-over-year increase of 1.5%. It is anticipated that revenues will amount to $641.8 million, exhibiting a decline of 0.9% compared to the year-ago quarter. Over the last 30 days, there has been a downward revision of 1.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsiderat ...

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for East West Bancorp (EWBC) despite lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - The earnings report is expected on October 22, 2024, with an anticipated EPS of $2.05, reflecting a +1.5% change year-over-year, while revenues are projected at $641.8 million, down 0.9% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised 1.06% lower in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for East West Bancorp is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.10% [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8][9]. - East West Bancorp holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [10]. Historical Performance - In the last reported quarter, East West Bancorp exceeded the expected EPS of $1.97 by delivering $2.07, resulting in a surprise of +5.08% [11]. - The company has beaten consensus EPS estimates in each of the last four quarters [12]. Conclusion - East West Bancorp is viewed as a compelling candidate for an earnings beat, but investors should consider other factors influencing stock performance ahead of the earnings release [15].