East West Bancorp(EWBC) - 2024 Q4 - Annual Results

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]