East West Bancorp(EWBC) - 2024 Q3 - Quarterly Results

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]