ZACKSยท2025-07-23 15:20Core Viewpoint - East West Bancorp, Inc. (EWBC) reported strong second-quarter 2025 results with adjusted earnings per share (EPS) of $2.28, exceeding the Zacks Consensus Estimate of $2.23, and reflecting a 9.1% increase year-over-year [1][9] Financial Performance - Quarterly net revenues reached $703.3 million, marking a 10.3% year-over-year increase and surpassing the Zacks Consensus Estimate of $699 million [3][9] - Net interest income (NII) was $617.1 million, up 11.5% year-over-year, with net interest margin (NIM) expanding by 8 basis points to 3.35% [3][9] - Total non-interest income increased to $86.2 million, a rise of 2.4%, driven by growth in most components except for customer derivative income and lower gains on available-for-sale debt securities [4][9] - Non-interest expenses totaled $256 million, up 8.5% from the prior-year quarter, influenced by increases across most components [5][9] Asset and Deposit Growth - As of June 30, 2025, net loans held for investment (HFI) were $54.2 billion, reflecting a 1.3% sequential increase, while total deposits rose 3.1% to $65 billion [6][9] Credit Quality - Annualized quarterly net charge-offs were 0.11% of average loans HFI, down 7 basis points year-over-year, and non-performing assets decreased to $171.7 million, down 12.5% year-over-year [7][9] - The provision for credit losses was $45 million, up 21.6% from the prior-year quarter [7][9] Capital Ratios - As of June 30, 2025, the common equity Tier 1 capital ratio improved to 14.51 from 13.74 a year ago, and the total risk-based capital ratio increased to 15.82 from 15.05 [8][9] Share Repurchase - In the reported quarter, the company repurchased approximately 26 thousand shares for $2 million, with $241 million of authorization remaining available for repurchase as of June 30, 2025 [11]