East West Bancorp(EWBC) - 2025 Q4 - Annual Results

Financial Performance - Full year 2025 net income reached a record $1.3 billion, or $9.52 per diluted share, representing a 14% increase year-over-year[1][3][13] - Total revenue for 2025 was $2.93 billion, up $318 million, or 12% year-over-year, driven by record net interest income and noninterest income[2][3][13] - Net income for Q4 2025 was $356.3 million, an increase from $293.1 million in Q4 2024, representing a 21.5% year-over-year growth[93] - Adjusted net income for Q4 2025 was $350.842 million, up from $290.496 million in Q4 2024, reflecting a growth of 20.8%[80] - Net interest income for the three months ended December 31, 2025, was $657,824 thousand, an increase from $587,626 thousand for the same period in 2024[74] - Net interest income after provision for credit losses reached $627.8 million, up 21.3% year-over-year from $517.6 million[37] - Total revenue for Q4 2025 was $758.254 million, an increase from $675.792 million in Q4 2024, marking a growth of 12.2%[86] Deposits and Loans - Total deposits increased to a record $67.1 billion, up $3.9 billion, or 6% year-over-year, with noninterest-bearing deposits comprising 25% of total deposits[3][6] - Total loans reached a record $56.9 billion, an increase of $3.2 billion, or 6% year-over-year[3][6] - Total deposits rose to $67.1 billion, a 6.2% increase from $63.2 billion year-over-year[33] - Total loans increased to $55.64 billion as of December 31, 2025, reflecting a 4.6% year-over-year growth[47] - Total loans increased to $56.9 billion, a 5.9% year-over-year growth from $53.7 billion[33] Asset Management - Total assets increased to $80.43 billion as of December 31, 2025, a 1.0% increase quarter-over-quarter and a 5.9% increase year-over-year[31] - The company’s total assets amounted to $79.74 billion, reflecting a 6.1% increase year-over-year[47] - Average total assets increased to $79.741 billion in Q4 2025 from $75.121 billion in Q4 2024, reflecting a growth of 6.5%[86] - Total assets as of December 31, 2025, reached $80.4 billion, up from $76.0 billion a year earlier, indicating a growth of 5.8%[93] Equity and Dividends - The board declared a quarterly common stock dividend of $0.80 per share, a 33% increase from the previous $0.60 per share[20] - Stockholders' equity increased to $8.77 billion as of December 31, 2025, up from $7.73 billion in 2024, reflecting a growth of 13.5%[53] - Stockholders' equity increased to $8.9 billion in Q4 2025, compared to $7.7 billion in Q4 2024, marking a 15.2% rise[93] - The total stockholders' equity to assets ratio improved to 11.06% in Q4 2025, up from 10.17% in Q4 2024[93] Credit Quality - Fourth quarter 2025 net charge-offs were $12 million, or annualized 0.08% of average loans HFI, down from $18 million, or 0.13% in the third quarter of 2025[23] - Full year 2025 net charge-offs totaled $60 million, or 0.11% of average loans HFI, compared to $139 million, or 0.26% for full year 2024[23] - The criticized loans ratio decreased to 2.01% of loans HFI as of December 31, 2025, down 13 basis points from 2.14% as of September 30, 2025[23] - Nonperforming assets rose to $208 million as of December 31, 2025, from $201 million as of September 30, 2025, with a nonperforming assets ratio of 0.26%[23] - The total criticized loans as of December 31, 2025, amounted to $1,141,149, a decrease from $1,191,319 as of September 30, 2025, and $1,173,153 as of December 31, 2024[70] Efficiency and Ratios - The efficiency ratio improved to 34.5% in the fourth quarter, compared to 35.6% in the prior quarter[17] - Return on average assets for Q4 2025 was 1.77%, a decrease of 7 basis points quarter-over-quarter and an increase of 22 basis points year-over-year[58] - Return on average common equity for Q4 2025 was 16.11%, down 133 basis points from the previous quarter but up 103 basis points from the same quarter last year[58] - Adjusted efficiency ratio for Q4 2025 was 35.17%, compared to 33.76% in Q3 2025 and 37.54% in Q4 2024, indicating improved operational efficiency[86] Interest Income and Expenses - Interest and dividend income for the year was $4.3 billion, a 2.4% increase from $4.2 billion year-over-year[42] - Total noninterest expense for the year was $1.05 billion, a 9.2% increase from $958.1 million year-over-year[42] - The company reported a net interest income before provision for credit losses of $2.55 billion, a 12.0% increase from $2.28 billion year-over-year[42] - The average yield on loans was 6.20% for the three months ended December 31, 2025, compared to 6.61% in the previous quarter[50] - The average yield on interest-bearing liabilities decreased to 3.11% in Q4 2025 from 3.71% in Q4 2024[53]