East West Bancorp(EWBC) - 2024 Q2 - Quarterly Results

Financial Performance - Net income for the second quarter of 2024 was $288 million, or $2.06 per diluted share, both up 1% quarter-over-quarter[10]. - Net income for Q2 2024 was $288,230, reflecting a 7.6% decline from $312,031 in Q2 2023[46]. - For the first half of 2024, net income was $573,305, a 9.6% decrease from $634,470 in the first half of 2023[47]. - Adjusted net income for the same period was $289,554,000, down from $292,334,000 in the prior quarter[84]. - Total revenue for the three months ended June 30, 2024, was $637,902, down 1.8% from $644,127 in the previous quarter and down 1.5% from $645,377 in the same quarter last year[79]. Asset and Loan Growth - Total assets increased to $72.5 billion as of June 30, 2024, up $1.6 billion from March 31, 2024, and up $3.9 billion, or 6%, year-over-year[8]. - Total loans reached $52.8 billion as of June 30, 2024, an increase of $0.8 billion from the previous quarter and up $3.0 billion, or 6%, year-over-year[21]. - Total loans increased by 6.3% year-over-year to $51.92 billion as of June 30, 2024, compared to $48.85 billion a year earlier[48]. - Total loans outstanding reached $51.922 billion, with commercial and industrial loans at $16.231 billion and commercial real estate loans at $20.342 billion[65]. Deposit Growth - Total deposits were $60.0 billion as of June 30, 2024, reflecting a $1.4 billion, or 2%, increase from March 31, 2024[22]. - Total deposits rose to $59.99 billion, reflecting a 2.5% increase from the previous quarter and a 7.8% increase year-over-year[36]. - The company reported a total of $7,581 million in checking deposits, reflecting an increase from $7,470 million in the previous year[65]. Capital and Ratios - The common equity tier 1 capital ratio increased to 13.74% as of June 30, 2024, indicating strong capital levels[9]. - The total capital ratio improved to 15.05%, compared to 14.84% in the previous quarter and 14.60% year-over-year[41]. - The efficiency ratio improved to 37.1% in the second quarter, compared to 38.3% in the first quarter[25]. - The efficiency ratio for the three months ended June 30, 2024, improved to 37.06%, compared to 38.33% in the previous quarter and 40.56% in the same quarter last year[79]. Interest Income and Expenses - Interest and dividend income for Q2 2024 reached $1,034,414, a 14.2% increase year-over-year from $906,134 in Q2 2023[46]. - Interest expense rose significantly by 41.8% year-over-year to $481,185 from $339,388[46]. - Net interest income after provision for credit losses decreased by 4.5% year-over-year to $516,229 from $540,746[46]. - The net interest margin was 3.27% for the quarter, compared to 3.34% in the previous quarter[51]. Credit Quality - The criticized loans ratio decreased to 2.05% of loans held-for-investment as of June 30, 2024, down from 2.30% in the previous quarter[26]. - The allowance for loan losses increased to $684 million, or 1.30% of loans held-for-investment, as of June 30, 2024[26]. - Total criticized loans as of June 30, 2024, were $1,080,243,000, down from $1,195,058,000 in the previous quarter[88]. - Total nonperforming assets as of June 30, 2024, were $196,282,000, an increase from $164,871,000 in the previous quarter[88]. Shareholder Actions - The company declared a cash dividend of $0.55 per share, payable on August 16, 2024[42]. - Approximately 560 thousand shares of common stock were repurchased for $41 million during Q2 2024, with $49 million remaining in the share repurchase authorization[42]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to enhance service delivery[60]. - The company will host a conference call on July 23, 2024, to discuss Q2 2024 earnings and operating developments[43].