East West Bancorp, Inc. · NASDAQ:EWBC
East West Bancorp — Q1 2025 Earnings Presentation
27 slides from East West Bancorp's earnings presentation, Apr 22, 2025
Slide 1: East West Bancorp, Inc. 1Q Earnings Presentation
East West Bancorp, Inc. 1Q Earnings Presentation 1Q April 22, 2025 25
Slide 2: Forward-Looking Statements and Additional Information
Forward-Looking Statements and Additional Information In this presentation, “we”, “our”, “us”, “East West” and the Company refer to East West Bancorp, Inc., and our consolidated subsidiaries unless the context indicates otherwise. Forward-Looking Statements This presentation contains forward-looking
Slide 3: Financial Highlights
Financial Highlights 1Q25 $290 million net income available to common equity, $2.08 diluted quarterly earnings per share ▪ Total EOP loans up 1% Q-o-Q (4% ann.) ▪ Record total quarterly revenue − Steady, balanced growth across ▪ NII up 2% Q-o-Q residential mortgage, CRE, and C&I ▪ NIM expanded 11bps
Slide 4: Loans
Loans Steady, balanced growth is supporting diversification and margin expansion Average Loans End of Period Total Loan Growth by Category (4Q24 to 1Q25) ($ in billions) ($ in millions) Y-o-Y $52.4 $53.2 $53.3 +3% $51.9 $51.9 Q-o-Q +1% Residential mortgage (4% ann.) $207 16.5 17.0 16.8 +4% & other c
Slide 5: Deposits
Deposits Optimized mix to further lower cost; with growing average balances across most categories Average Deposits End of Period Total Deposit Growth by Category (4Q24 to 1Q25) ($ in billions) ($ in millions) Y-o-Y $61.9 $62.6 +9% $60.6 $57.4 $58.7 Time $449 22.9 23.2 +20% 21.0 22.3 19.3 Money Mark
Slide 6: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin Grew NII 2% and NIM 11bps Q-o-Q, with continued disciplined reduction in deposit cost Net Interest Income (NII) & Net Interest Margin (NIM) End of Period Interest-bearing Deposit Cost (2Q24 to 1Q25) ($ in millions) NII NIM 62bp decrease in interest-bearing d
Slide 7: Fee Income
Fee Income Higher customer activity supported a record quarter Fee Income1 Highlights ($ in millions) vs. Prior Quarter Q-o-Q +8% ▪ Fee income1 of $88mm, up nearly $7mm, $88 $81 $81 or +8% from $81mm $77 $71 27 Commercial and Consumer − Wealth management, customer +2% Deposit-Related Fees 27 26 deri
Slide 8: Operating Expense & Efficiency
Operating Expense & Efficiency Maintaining best-in-class efficiency while investing for future growth Total Operating Noninterest Expense1 Highlights ($ in millions) vs. Prior Quarter Q-o-Q +3% ▪ Total operating noninterest expense of $236 $236mm $234 $231 $219 $220 − Excludes $16mm of tax credit an
Slide 9: Asset Quality Metrics
Asset Quality Metrics Operating from a position of strength with solid trends and declining net charge-offs and nonperforming assets Provision for Credit Losses & Net Charge-offs Nonperforming Assets ($ in millions) $80 $70 ($ in millions) $64 $196 $195 $194 $182 $70 Multifamily 5 5 5 $165 30 5 $60
Slide 10: Allowance for Loan Losses
Allowance for Loan Losses Bolstered reserves by $33 million quarter-over-quarter Allowance for Loan Losses (ALLL) Highlights $770 1.45% ($ in millions) 1.43% $750 $735 ▪ Bolstered ALLL in light of changes to 1.41% $730 1.39% the economic outlook 1.37% $710 $702 $696 1.35% ‒ Increased reserves by $33
Slide 11: Capital
Capital Healthy capital position: $85 million of share repurchases in 1Q25 Tangible Common Equity Ratio1 Regulatory Capital Ratios2 Highlights 10.1% 10.4% 10.4% 10.4% 10.5% ▪ Opportunistic stock repurchase 9.9% 9.7% activity in Q1 9.6% 5.0% 9.3% 9.4% ‒ Repurchased $85mm (~920K shares) Leverage Ratio
Slide 12: Management Outlook: Full Year 2025
Management Outlook: Full Year 2025 Earnings Drivers FY 2025 Expectations vs. FY 2024 Results FY 2025 Expectation ▪ Assumes March 31st forward curve, with 50bps of expected cuts in Interest Rate Outlook the Federal Funds rate End of Period Loans ▪ Growing in the range of 4% to 6% Y-o-Y Top Quartile R
Slide 13: Appendix
Appendix ( EAST WEST BANK
Slide 14: East West at a Glance
East West at a Glance 03.31.25 03.31.25 03.31.25 03.31.25 $12B Market Cap $76B Assets $63B Deposits 16% ROTCE1 A Leading Regional Bank with Cross-Border Capabilities... …Producing Consistent Top-Tier Shareholder Returns… ROTCE1 ▪ Headquartered in Pasadena, California 21.3% 19.4% 16.7%17.2% 17.1% 17.
Slide 15: Diversified Loan Portfolio
Diversified Loan Portfolio 70% of loans support commercial customers, with broad diversification across industry and asset types Commercial Loans by Type (as % of Total Loans, 03.31.25) Total Loan C&I Portfolio CRE $17.5bn $54.3bn $20.5bn General 6% C&I 9% Multifamily $17.5 32% Real Estate Investmen
Slide 16: Commercial Real Estate Portfolio Detail
Commercial Real Estate Portfolio Detail Our CRE portfolio is granular - many loans have full recourse and personal guarantees Distribution by Loan-to-Value (LTV)1 Size and LTV by Property Type (as of 03.31.25) (as of 03.31.25) >70% 3% Total Portfolio Weighted Average >65% to 70% 5% Size Avg. LTV1 Lo
Slide 17: CRE Office – Additional Information
CRE Office – Additional Information Our office portfolio has low LTVs across segments and low average loan sizes CRE Office: Geographic Mix by Metro Area CRE Office by Size Segment (as of 03.31.25) (as of 03.31.25) Other Regions Avg. Weighted Balance No. of Loan Size Loan Size Avg. LTV 6% ($ in mm)
Slide 18: CRE Retail – Additional Information
CRE Retail – Additional Information Our retail portfolio has a weighted average LTV profile of 47% CRE Retail: Geographic Mix by Metro Area CRE Retail by Size Segment (as of 03.31.25) (as of 03.31.25) Other Regions Avg. Weighted Balance No. of Loan Size Loan Size Avg. LTV 12% ($ in mm) Loans ($ in m
Slide 19: CRE Multifamily – Additional Information
CRE Multifamily – Additional Information Our multifamily portfolio is amongst our most granular CRE Multifamily: Geographic Mix by Metro Area CRE Multifamily by Size Segment (as of 03.31.25) (as of 03.31.25) Other Regions Avg. Weighted Balance No. of Nevada Loan Size Loan Size Avg. LTV 6% ($ in mm)
Slide 20: Residential Mortgage Portfolio
Residential Mortgage Portfolio Our residential mortgage portfolio benefits from both low LTVs and smaller average loan size Resi. Mortgage Distribution by LTV1 Portfolio Highlights as of 03.31.25 (as of 03.31.25) Outstandings >60% 11% ▪ $16.2bn loans outstanding 51% $438,000 ▪ +1% Q-o-Q and +6% Y-o-
Slide 21: Cash and Securities
Cash and Securities Enhanced liquidity while supporting earnings with high-quality liquid assets Average Total Securities Portfolio and Cash Highlights ($ in billions) Total Securities & Resale Agreements Cash & Equivalent Total Securities Average Yield ▪ Securities portfolio well-positioned as a $1
Slide 22: Loan Yields
Loan Yields Hedge Impact and Outlook Loan Portfolio by Index Rate (as of 03.31.25) ▪ $7mm negative impact to 1Q25 NII from cash flow hedges (4bps to NIM) ▪ $1bn of forward starting hedges expected to come on in 2H25, with a Fixed rate blended receive-fixed rate of ~4% 21% 28% Total fixed Hybrid in f
Slide 23: Deposit and Funding Cost
Deposit and Funding Cost Average Deposit and Liability Cost 3.92% 3.94% 4.07% 3.93% 4.05% 3.85% 3.71% 3.63% 3.34% 3.43% 2.84% 2.96% 2.98% 2.75% 2.54% 1Q24 2Q24 3Q24 4Q24 1Q25 Average cost of deposits Average cost of interest-bearing deposits Average cost of interest-bearing liabilities Average Depos
Slide 24: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Non-GAAP measures used consist
Slide 25: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Adjusted net income represents net income adjusted for the tax-effected adjustments below. Adjusted diluted EPS represents diluted EPS adjusted for the tax-
Slide 26: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible book value, tangible
Slide 27: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Return on average TCE represents tangible net income divided by average tangible book value. Tangible net income excludes the after-tax impacts of the amort