East West Bancorp(EWBC) - 2025 Q1 - Quarterly Results

Financial Performance - First quarter 2025 net income was $290 million, or $2.08 per diluted share, with a return on average tangible common equity of nearly 16%[1] - Total revenue for the first quarter was a record $693 million, up 2% from the previous quarter, driven by strong customer activity and record noninterest income[4] - Net interest income reached $600 million, an increase of 2% quarter-over-quarter, with a net interest margin of 3.35%, up 11 basis points[15] - Net income for the quarter was $290.3 million, a 1.8% increase compared to $285.1 million in the same quarter last year[35] - Basic earnings per share (EPS) was $2.10, a 2.7% increase from $2.04 in the same quarter last year[35] - Adjusted net income for the first quarter of 2025 was $290,855 thousand, slightly up from $290,496 thousand in the fourth quarter of 2024, showing a marginal increase of 0.1%[61] - Diluted EPS for the first quarter of 2025 was $2.08, a decrease from $2.10 in the previous quarter, reflecting a decline of 1.0%[61] Asset and Loan Growth - Total loans increased to $54.3 billion, up over $0.5 billion from the previous quarter, and up 4% year-over-year[13] - Total assets were $76.2 billion, reflecting a $5.3 billion increase, or 7%, year-over-year[6] - Loans held-for-investment (net of allowance for loan losses) amounted to $53.5 billion, a 4.3% increase compared to the same period last year[29] - Total loans increased to $54.25 billion, a 4.3% year-over-year growth from $52.01 billion[31] - Commercial and industrial loans rose by 6.8% year-over-year to $17.46 billion[31] Deposits and Funding - Average deposits rose to $62.6 billion, an increase of $0.7 billion from the previous quarter, primarily due to growth in various deposit types[7] - Total deposits were reported at $63.1 billion, showing a year-over-year growth of 7.7%[29] - Total deposits reached $63.05 billion, marking a 7.7% increase year-over-year from $58.56 billion[31] - Total deposits reached $62,637,582, with a net interest income of $600,201 and a net interest margin of 3.35%[44] Risk Management - The allowance for loan losses increased to $735 million, or 1.35% of loans held-for-investment, compared to 1.31% in the previous quarter[22] - The allowance for loan losses increased to $734.9 million, a 9.6% rise from $670.3 million a year ago[31] - The allowance for loan losses stood at $(716,255), indicating a proactive approach to risk management[44] - Total criticized loans rose to $1.245 billion in Q1 2025, compared to $1.173 billion in Q4 2024[56] - Provision for credit losses was $49 million for Q1 2025, compared to $70 million in Q4 2024[53] Operational Efficiency - The efficiency ratio improved to 36.4% in the first quarter, compared to 36.9% in the previous quarter[16] - The efficiency ratio improved to 36.42%, a decrease of 57 basis points quarter-over-quarter and 186 basis points year-over-year[47] - The efficiency ratio improved to 36.42% for the first quarter of 2025, down from 36.99% in the previous quarter, indicating enhanced operational efficiency[60] Capital and Equity - The company's stockholders' equity rose to $7.9 billion, a 12.9% increase from the previous year[29] - Total stockholders' equity rose to $7,929,465 thousand as of March 31, 2025, up from $7,723,054 thousand at the end of 2024, representing an increase of 2.67%[65] - Tangible book value per share increased to $54.13 as of March 31, 2025, compared to $52.39 at December 31, 2024, reflecting a growth of 3.33%[65] Nonperforming Assets - Nonperforming assets decreased to $182 million, with a nonperforming assets ratio of 0.24% of total assets, down 2 basis points from the prior quarter[22] - Total nonperforming assets decreased to $182,203 thousand as of March 31, 2025, from $194,095 thousand at December 31, 2024, representing a decline of 5.8%[57] Interest Rates and Margins - The interest rate spread improved to 2.33% compared to 2.13% in the previous quarter[41] - Net interest margin increased to 3.35%, up 11 basis points quarter-over-quarter and stable year-over-year[47] - Average cost of interest-bearing deposits decreased to 3.34%, down 29 basis points from the previous quarter and down 51 basis points year-over-year[47]