East West Bancorp, Inc. 135 N. Los Robles Ave. Pasadena, CA 91101
Tel. 626.768.6000
NEWS RELEASE
EAST WEST BANCORP REPORTS SECOND QUARTER 2026 RESULTS, WITH EARNINGS PER SHARE UP 18% YEAR-OVER-YEAR, DRIVEN BY RECORD TOTAL REVENUE Pasadena, California - July 21, 2026 - East West Bancorp, Inc. ("East West" or the "Company") (Nasdaq: EWBC), parent company of East West Bank, reported second quarter 2026 net income of $364 million, or $2.63 per diluted share. Total loans and deposits both reached new records as of June 30, 2026, at $59.0 billion and $70.1 billion, respectively. Return on average assets was 1.75%, return on average common equity was 16.0%, and book value per share grew 13% year-over-year."East West delivered another strong quarter of balanced growth, resulting in record levels of net interest income, revenue, loans, and deposits," said Dominic Ng, Chairman and Chief Executive Officer. "Over the past year our relationship-focused strategy continued to drive the business forward, with noninterest-bearing deposits increasing significantly. We generated a return on average tangible common equity1 of 17% and grew tangible book value per share1 by 14% from a year ago."
"Our above-peer returns reflect the growth opportunities we have captured across our markets, supported by disciplined execution and stable credit performance," said Ng. "Strong earnings further bolstered our capital position and reinforced the balance sheet, positioning us well to deliver sustainable growth and long-term value for shareholders," concluded Ng.
FINANCIAL HIGHLIGHTS
% Change
Three Months Ended June 30, 2026
($ in millions, except per share data) | June 30, 2026 | March 31, 2026 | June 30, 2025 | Qtr-o-Qtr | Yr-o-Yr |
Total Revenue | $791 | $774 | $703 | 2 % | 12 % |
Pre-tax, Pre-provision Income2 | 501 | 493 | 447 | 1 | 12 |
Net Income | 364 | 358 | 310 | 2 | 17 |
Diluted Earnings per Share | $2.63 | $2.57 | $2.24 | 2 | 18 |
Book Value per Share | $67.48 | $65.70 | $59.51 | 3 | 13 |
Tangible Book Value per Share1 | $64.06 | $62.27 | $56.10 | 3 % | 14 % |
Return on Average Assets | 1.75% | 1.79% | 1.62% | -4 bps | 13 bps |
Return on Average Common Equity | 16.01% | 16.04% | 15.42% | -3 bps | 59 bps |
Return on Average Tangible Common Equity1 | 16.88% | 16.92% | 16.39% | -4 bps | 49 bps |
Total Stockholders' Equity to Assets Ratio | 10.91% | 10.86% | 10.49% | 5 bps | 42 bps |
Tangible Common Equity Ratio1 | 10.41% | 10.35% | 9.95% | 6 bps | 46 bps |
Total Assets $84,763 $82,886 $78,158 2 % 8 %
1 Return on average tangible common equity, tangible book value per share, and tangible common equity ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 14.
2 Pre-tax, pre-provision income is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP financial measures in Table 13.
BALANCE SHEET-
Assets - Total assets were $84.8 billion as of June 30, 2026, an increase of $1.9 billion, or 2%, from $82.9 billion as of March 31, 2026. Year-over-year, total assets grew $6.6 billion, or 8%, from $78.2 billion as of June 30, 2025.
Second quarter 2026 average interest-earning assets of $80.1 billion were up $2.1 billion, or 3%, from
$78.0 billion in the first quarter, primarily reflecting a $1.2 billion increase in average total loans outstanding and
$0.8 billion of average securities growth.
-
Loans - Total loans reached a record $59.0 billion as of June 30, 2026, an increase of $0.9 billion, or 1%, from
$58.1 billion as of March 31, 2026. Year-over-year, total loans were up $4.0 billion, or 7%, from $55.0 billion as of June 30, 2025.
Second quarter 2026 average total loans grew by nearly $1.2 billion, or 2%, to $58.2 billion, from $57.1 billion in the first quarter of 2026.
-
Deposits - Total deposits reached a record $70.1 billion as of June 30, 2026, an increase of $1.2 billion, or 2%, from $68.9 billion as of March 31, 2026, primarily reflecting growth in noninterest-bearing demand deposits. Noninterest-bearing deposits made up 26% of total deposits as of June 30, 2026. Year-over-year, total deposits increased $5.1 billion, or 8%, from $65.0 billion as of June 30, 2025.
Second quarter 2026 total average deposits of $68.7 billion increased $1.2 billion from the first quarter of 2026, primarily reflecting growth in average noninterest-bearing demand, money market, time, and savings deposits.
-
Capital - As of June 30, 2026, stockholders' equity was $9.2 billion, up 3% quarter-over-quarter. The total stockholders' equity to assets ratio was 10.91% as of June 30, 2026, compared with 10.86% as of March 31, 2026.
Book value per share was $67.48 as of June 30, 2026, up $1.78, or 3% quarter-over-quarter. As of June 30, 2026, tangible book value per share3 was $64.06, up $1.79, or 3% quarter-over-quarter.
East West's regulatory capital ratios are well in excess of requirements for well-capitalized institutions, and well above regional bank averages.
CAPITAL STRENGTHCapital metrics as of June 30, 2026, March 31, 2026, and June 30, 2025 are presented below.
EWBC Capital
($ in millions)
June 30, 2026 (a)
March 31, 2026
June 30, 2025
Risk-Weighted Assets ("RWA") (b)
$59,201
$58,559
$56,280
Risk-based capital ratios:
Total capital ratio
16.75%
16.45%
15.82%
CET1 capital ratio
15.44%
15.13%
14.51%
Tier 1 capital ratio
15.44%
15.13%
14.51%
Leverage ratio
11.00%
10.95%
10.60%
Total stockholders' equity to assets ratio
10.91%
10.86%
10.49%
Tangible common equity ratio (c)
10.41%
10.35%
9.95%
The Company's June 30, 2026 regulatory capital ratios and RWA are preliminary.
Under regulatory guidelines, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories based on the nature of the obligor, or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar value in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total RWA.
Tangible common equity ratio is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP measures in Table 14.
3 Tangible book value per share is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP measures in Table 14.
Second Quarter Earnings - Second quarter 2026 net income was $364 million, an increase of $6 million, or 2% from the first quarter, and 17% from $310 million for the second quarter of 2025. Second quarter 2026 diluted earnings per share ("EPS") were $2.63, an increase of 2% from $2.57 per diluted share for the first quarter and 18% from $2.24 per diluted share for the second quarter of 2025.Second Quarter 2026 Compared to First Quarter 2026 and Second Quarter 2025
Net Interest Income and Net Interest Margin
Net interest income totaled $685 million in the second quarter of 2026, an increase of over $13 million, or 2%, from
$671 million in the prior quarter and $68 million, or 11%, from the second quarter of 2025. Net interest margin was 3.43% in the second quarter of 2026, a 6 basis-point decline from the prior quarter and an 8 basis-point increase from the second quarter of 2025.
The average loan yield was 6.02%, down 9 basis points from the prior quarter. The average interest-earning asset yield was 5.41%, down 8 basis points from the prior quarter.
The average cost of interest-bearing deposits was 2.81%, a 3 basis-point decrease from the prior quarter. The average cost of funds was 2.19%, down 2 basis points from the prior quarter.
Noninterest Income
Noninterest income totaled a record $106 million in the second quarter of 2026, an increase of $4 million, or 4%, from the first quarter and $20 million, or 24%, from the second quarter of 2025. Fee income4 of $96 million decreased $3 million, or 3%, from $99 million in the prior quarter and increased $15 million, or 19%, from the second quarter of 2025.
Lending and loan servicing fees increased $2 million in the second quarter, reflecting higher syndication fees.
Commercial and consumer deposit-related fees increased $1 million quarter-over-quarter, reflecting higher customer activity.
Wealth management fees decreased $3 million in the second quarter, primarily reflecting lower customer activity from record levels set in the prior quarter.
Customer derivative income decreased $3 million quarter-over-quarter, reflecting lower customer activity.
Other income increased $9 million quarter-over-quarter, primarily reflecting gains from investments held in connection with deferred compensation plans.
Other investment income decreased $3 million quarter-over-quarter, reflecting lower income from investments.
Noninterest Expense
Total noninterest expense was $291 million in the second quarter, which included $23 million of amortization for tax credit and Community Reinvestment Act investments. Total operating noninterest expense was $268 million, an increase of $9 million from the first quarter and $38 million, or 17%, from the second quarter of 2025.
Other real estate owned ("OREO") expense increased $3 million in the second quarter.
Other operating expense was $39 million, an increase of $2 million, primarily reflecting higher loan-related expenses.
Deposit insurance premiums and regulatory assessments were $10 million, an increase of $1 million quarter-over-quarter, reflecting an FDIC special assessment reversal in the prior quarter.
Deposit account expense, occupancy and equipment expense, and computer and software related expense each increased $1 million quarter-over-quarter.
The efficiency ratio was 36.7% in the second quarter, compared with 36.2% in the prior quarter.
TAX RELATED ITEMSSecond quarter 2026 income tax expense was $104 million and the effective tax rate was 22.2%, compared with income tax expense of $100 million and 21.8% in the first quarter, primarily due to stock-based compensation tax benefits in the first quarter and higher pretax income in the second quarter, partially offset by a tax settlement benefit in the second quarter.
4 Fee income includes commercial and consumer deposit-related fees, lending and loan servicing fees, foreign exchange income, wealth management fees, and customer derivative income. Refer to Table 3 for additional fee and noninterest income information.
As of June 30, 2026, the credit quality of our loan portfolio remained stable.
Second quarter 2026 provision for credit losses was $33 million, compared with $36 million in the first quarter of 2026.
The allowance for loan losses was $842 million, or 1.43% of loans held-for-investment ("HFI"), as of June 30, 2026, compared with $836 million, or 1.44% of loans HFI, as of March 31, 2026.
The nonperforming assets ratio was 0.29% of total assets as of June 30, 2026, a 3 basis point increase from the prior quarter. Nonperforming assets increased $31 million to $247 million as of June 30, 2026, from $216 million as of March 31, 2026, driven primarily by increases in commercial real estate nonaccrual loans and OREO.
Second quarter 2026 net charge-offs were $27 million, or annualized 0.19% of average loans HFI, compared with $12 million, or annualized 0.09% of average loans HFI, for the first quarter of 2026.
DIVIDEND PAYOUT AND CAPITAL ACTIONSEast West's Board of Directors has declared the third quarter 2026 dividend for the Company's common stock. The common stock cash dividend of $0.80 per share is payable on August 17th, 2026 to shareholders of record as of August 3rd, 2026.
East West did not repurchase any shares of common stock during the second quarter of 2026. $117 million of East West's share repurchase authorization remains available.
About East WestEast West provides financial services that help customers reach further and connect to new opportunities. East West Bancorp, Inc. is a public company (Nasdaq: "EWBC") with total assets of $84.8 billion as of June 30, 2026. The Company's wholly-owned subsidiary, East West Bank, is the largest independent bank headquartered in Southern California, and operates over 110 locations in the United States and Asia. The Bank's markets in the United States include California, Georgia, Illinois, Massachusetts, Nevada, New York, Texas, and Washington. For more information on East West, visit https://www.eastwestbank.com.
Conference CallEast West will host a conference call to discuss second quarter 2026 earnings with the public on Tuesday, July 21, 2026 at 2:00 p.m. PT/5:00 p.m. ET. The public and investment community are invited to listen as management discusses second quarter 2026 results and operating developments.
The following dial-in information is provided for participation in the conference call: calls within the U.S. -(877) 506-6399; calls within Canada - (855) 669-9657; international calls - (412) 902-6699.
A presentation to accompany the earnings call, a listen-only live broadcast of the call, and information to access a replay one hour after the call will all be available on the Investor Relations page of the Company's website at https://www.eastwestbank.com/investors.
Adrienne Atkinson Angie Tang
Director of Investor Relations and Corporate Development Director of Corporate Communications T: (626) 788-7536 T: (626) 768-6853
E: [email protected] E: [email protected]
Certain matters set forth herein (including any exhibits hereto) contain "forward-looking statements" intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. East West Bancorp, Inc. (referred to herein on an unconsolidated basis as "East West" and on a consolidated basis as the "Company," "we," "our" or "EWBC") may make forward-looking statements in other documents that it files with, or furnishes to, the U.S. Securities and Exchange Commission ("SEC") and management may make forward-looking statements to analysts, investors, media members and others. Forward-looking statements are those that do not relate to historical facts and that are based on current assumptions, beliefs, estimates, expectations and projections, many of which, by their nature, are inherently uncertain and beyond the Company's control. Forward-looking statements may relate to various matters, including the Company's financial condition, results of operations, plans, objectives, future performance, business or industry, and usually can be identified by the use of forward-looking words, such as "anticipates," "assumes," "believes," "can," "continues," "could," "estimates," "expects," "forecasts," "goal," "intends," "likely," "may," "might," "objective," "plans," "potential," "projects," "remains," "should," "target," "trend," "will," "would," or similar expressions or variations thereof, and the negative thereof, although these terms are not the exclusive means of identifying such statements. You should not place undue reliance on forward-looking statements, as they are subject to known and unknown risks and uncertainties.
Factors that might cause future results to differ materially from historical performance and any forward-looking statements include, but are not limited to: changes in local, regional and global business, economic and political conditions and natural or geopolitical events; the soundness of other financial institutions and the impacts related to or resulting from bank failures and other industry volatility, including potential increased regulatory requirements, Federal Deposit Insurance Corporation ("FDIC") insurance premiums and assessments, and deposit withdrawals; changes in trade, tariff, tax, monetary and fiscal policies; changes in immigration laws and enforcement practices, or travel and visa related policies; current or potential disputes between the U.S., the People's Republic of China and other countries; armed conflict involving Iran or heightened geopolitical tensions in other regions, including resulting oil price volatility and energy and other supply disruptions; changes in the commercial and consumer real estate markets; changes in consumer or commercial spending, savings and borrowing habits, patterns and behaviors; the Company's ability to compete effectively against financial institutions and other entities, including as a result of emerging technologies; the success and timing of the Company's business strategies; the Company's ability to retain key officers and employees; changes in market interest rates, competition, regulatory requirements and product mix; changes in the Company's costs of operation, compliance and expansion; disruption, failure in, or breach of, the Company's operational or security systems or infrastructure, or those of third party vendors with which the Company does business, including as a result of cyber-attacks, and the disclosure or misuse of confidential information; the adequacy of the Company's risk management framework; future credit quality and performance, including expectations regarding future credit losses and allowance levels; adverse changes to the Company's credit ratings; legal proceedings, regulatory investigations and their resolution; the Company's capital requirements and its ability to generate capital internally or raise capital on favorable terms; the impact on the Company's liquidity due to changes in its ability to receive dividends from subsidiaries; any strategic acquisitions or divestitures; and the introduction of new or expanded products and services or other events that may directly or indirectly result in a negative impact on the financial performance of the Company and its customers.
For a more detailed discussion of some of the factors that might cause future results to differ materially from historical performance and any forward-looking statements, see the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 27, 2026 under the heading Item 1A. Risk Factors and the Company's subsequent filings with the SEC. Forward-looking statements speak only as of the date they are made and are based solely on information then actually known to the Company. The Company does not undertake, and expressly disclaims any obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of such statements, except as required by law.
Table 1 EAST WEST BANCORP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET ($ and shares in thousands, except per share data) (unaudited) June 30, 2026 % or Basis Point ChangeJune 30, 2026 | March 31, 2026 | June 30, 2025 | Qtr-o-Qtr | Yr-o-Yr | ||
Assets | ||||||
Cash and cash equivalents, and deposits with banks | $ 5,101,349 | $ 4,449,368 | $ 4,514,476 | 14.7 % | 13.0 % | |
Securities purchased under resale agreements ("resale agreements") | 425,000 | 425,000 | 425,000 | - | - | |
Available-for-sale ("AFS") debt securities (amortized cost of $15,055,558, $14,546,038 and $13,035,258) | 14,581,546 | 14,093,483 | 12,488,913 | 3.5 | 16.8 | |
Held-to-maturity ("HTM") debt securities, at amortized cost (fair value of $2,443,494, $2,453,003 and $2,437,247) | 2,845,364 | 2,858,978 | 2,892,982 | (0.5) | (1.6) | |
Total cash, resale agreements and debt securities | 22,953,259 | 21,826,829 | 20,321,371 | 5.2 | 13.0 | |
Loans held-for-sale ("HFS") | 17,425 | 27,585 | 11,873 | (36.8) | 46.8 | |
Loans held-for-investment ("HFI") (net of allowance for loan losses of $842,056, $835,874 and $760,416) | 58,121,884 | 57,264,875 | 54,200,768 | 1.5 | 7.2 | |
Affordable housing partnership, tax credit and Community Reinvestment Act ("CRA") investments, net | 919,230 | 983,976 | 968,389 | (6.6) | (5.1) | |
Goodwill | 465,697 | 465,697 | 465,697 | - | - | |
Operating lease right-of-use assets | 149,110 | 134,129 | 80,523 | 11.2 | 85.2 | |
Other assets | 2,136,867 | 2,183,061 | 2,109,446 | (2.1) | 1.3 | |
Total assets | $ 84,763,472 | $ 82,886,152 | $ 78,158,067 | 2.3 % | 8.5 % | |
Liabilities and Stockholders' Equity | ||||||
Deposits | $ 70,092,693 | $ 68,919,555 | $ 65,029,493 | 1.7 % | 7.8 % | |
Federal Home Loan Bank ("FHLB") advances | 3,000,000 | 3,000,000 | 3,500,000 | - | (14.3) | |
Securities sold under repurchase agreements ("repurchase agreements") | 956,894 | 494,027 | - | 93.7 | 100.0 | |
Long-term debt and finance lease liabilities | 35,451 | 35,545 | 35,789 | (0.3) | (0.9) | |
Operating lease liabilities | 164,973 | 148,731 | 86,987 | 10.9 | 89.7 | |
Accrued expenses and other liabilities | 1,267,532 | 1,288,859 | 1,304,031 | (1.7) | (2.8) | |
Total liabilities | 75,517,543 | 73,886,717 | 69,956,300 | 2.2 | 7.9 | |
Stockholders' equity | 9,245,929 | 8,999,435 | 8,201,767 | 2.7 | 12.7 | |
Total liabilities and stockholders' equity | $ 84,763,472 | $ 82,886,152 | $ 78,158,067 | 2.3 % | 8.5 % |
Total cash, resale agreements and debt securities/total assets | 27.08% | 26.33% | 26.00% | 75 | bps | 108 | bps |
Total stockholders' equity to assets ratio | 10.91% | 10.86% | 10.49% | 5 | 42 | ||
Tangible common equity ("TCE") ratio (1) | 10.41% | 10.35% | 9.95% | 6 | bps | 46 | bps |
Book value per share | $ 67.48 | $ 65.70 | $ 59.51 | 2.7 % | 13.4 % | ||
Tangible book value (1) per share | $ 64.06 | $ 62.27 | $ 56.10 | 2.9 | 14.2 | ||
Number of common shares at period-end | 137,011 | 136,979 | 137,816 | 0.0 % | (0.6)% |
The TCE ratio and the tangible book value are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 14.
Table 2 EAST WEST BANCORP, INC. AND SUBSIDIARIES TOTAL LOANS AND DEPOSITS DETAIL ($ in thousands) (unaudited) June 30, 2026 % ChangeLoans: Commercial: June 30, 2026 March 31, 2026 June 30, 2025 Qtr-o-Qtr Yr-o-YrCommercial and industrial ("C&I")
$ 19,862,701 $ 19,550,953 $ 17,822,881
1.6 %
11.4 %
Commercial real estate ("CRE"):
CRE
15,585,610 15,491,057 14,978,775
0.6
4.1
Multifamily residential
5,251,556 5,129,247 4,978,915
2.4
5.5
Construction and land
831,822 811,999 709,713
2.4
17.2
Total CRE
21,668,988 21,432,303 20,667,403
1.1
4.8
Consumer:
Residential mortgage:
Single-family residential ("SFR")
15,336,309 15,119,709 14,569,997
1.4
5.3
Home equity lines of credit ("HELOCs")
2,039,285 1,945,867 1,850,965
4.8
10.2
Total residential mortgage
17,375,594 17,065,576 16,420,962
1.8
5.8
Other consumer
56,657 51,917 49,938
9.1
13.5
Total loans HFI (1)
58,963,940 58,100,749 54,961,184
1.5
7.3
Loans HFS
17,425 27,585 11,873
(36.8)
46.8
Total loans (1)
58,981,365 58,128,334 54,973,057
1.5
7.3
Allowance for loan and lease losses ("ALLL")
(842,056) (835,874) (760,416)
0.7
10.7
Net loans (1)
$ 58,139,309 $ 57,292,460 $ 54,212,641
1.5 %
7.2 %
Deposits by product:
Noninterest-bearing demand
$ 18,355,698
$ 17,480,959
$ 15,470,239
5.0 %
18.7 %
Interest-bearing checking
8,047,826
8,069,468
8,143,893
(0.3)
(1.2)
Money market
16,259,299
16,226,097
15,420,318
0.2
5.4
Savings
1,891,021
1,731,547
1,683,703
9.2
12.3
Time deposits
25,538,849
25,411,484
24,311,340
0.5
5.0
Total deposits
$ 70,092,693 $ 68,919,555 $ 65,029,493
1.7 %
7.8 %
Deposits by segment/region:
Consumer and Business Banking - U.S.
$ 36,951,120
$ 35,847,814
$ 33,407,064
3.1 %
10.6 %
Commercial Banking - U.S. (2)
24,910,459
24,829,606
23,593,647
0.3
5.6
International Branches (3)
4,133,100
3,906,121
3,579,005
5.8
15.5
Treasury and Other - U.S. (4)
4,098,014
4,336,014
4,449,777
(5.5)
(7.9)
Total deposits
$ 70,092,693 $ 68,919,555 $ 65,029,493
1.7 %
7.8 %
Loan-to-deposit ratio
84.15 %
84.34 %
84.54 %
(19) bps
(39) bps
Includes $13 million, $17 million and $74 million of net deferred loan fees and net unamortized premiums as of June 30, 2026, March 31, 2026 and June 30, 2025, respectively.
Excludes deposits presented under International Branches.
Deposits of our Hong Kong branch and China subsidiary bank branches are a subset of Commercial Banking segment deposits.
Treasury and Other segment deposits reflect wholesale, public funds, and brokered deposits, primarily managed by the Company's Treasury department.
June 30, 2026 | March 31, 2026 | June 30, 2025 | Qtr-o-Qtr | Yr-o-Yr | |
Interest and dividend income | $ 1,080,823 | $ 1,055,510 | $ 1,058,999 | 2.4% | 2.1% |
Interest expense | 396,172 | 384,317 | 441,925 | 3.1 | (10.4) |
Net interest income before provision for credit losses | 684,651 | 671,193 | 617,074 | 2.0 | 11.0 |
Provision for credit losses | 33,000 | 36,000 | 45,000 | (8.3) | (26.7) |
Net interest income after provision for credit losses | 651,651 | 635,193 | 572,074 | 2.6% | 13.9% |
Noninterest income: | |||||
Commercial and consumer deposit-related fees | 31,621 | 30,619 | 26,865 | 3.3 | 17.7 |
Lending and loan servicing fees | 27,961 | 26,070 | 25,586 | 7.3 | 9.3 |
Foreign exchange income | 14,926 | 15,447 | 13,715 | (3.4) | 8.8 |
Wealth management fees | 19,461 | 22,260 | 10,725 | (12.6) | 81.5 |
Customer derivative income | 1,895 | 4,595 | 3,645 | (58.8) | (48.0) |
Total fee income | 95,864 | 98,991 | 80,536 | (3.2) | 19.0 |
Derivative mark-to-market and credit valuation adjustments | (732) | 934 | (1,444) | NM | (49.3) |
Net gains on AFS debt securities | 2,931 | 616 | 746 | 375.8 | 292.9 |
Other investment (loss) income | (49) | 2,956 | 678 | NM | NM |
Other income (loss) | 8,478 | (941) | 5,662 | NM | 49.7 |
Total noninterest income | 106,492 | 102,556 | 86,178 | 3.8% | 23.6% |
Noninterest expense: | |||||
Compensation and employee benefits (1) | 172,543 | 172,665 | 144,841 | (0.1)% | 19.1% |
Occupancy and equipment expense | 19,553 | 18,248 | 16,289 | 7.2 | 20.0 |
Computer and software related expenses | 15,433 | 14,747 | 13,446 | 4.7 | 14.8 |
Deposit insurance premiums and regulatory assessments (2) | 10,268 | 8,859 | 9,133 | 15.9 | 12.4 |
Deposit account expense | 8,906 | 7,533 | 9,348 | 18.2 | (4.7) |
Other real estate owned ("OREO") expense (income) | 2,254 | (264) | (493) | NM | NM |
Other operating expense | 38,869 | 36,542 | 37,220 | 6.4 | 4.4 |
Total operating noninterest expense | 267,826 | 258,330 | 229,784 | 3.7 | 16.6 |
Amortization of tax credit and CRA investments | 22,796 | 21,984 | 26,236 | 3.7 | (13.1) |
Total noninterest expense | 290,622 | 280,314 | 256,020 | 3.7 | 13.5 |
Income before income taxes | 467,521 | 457,435 | 402,232 | 2.2 | 16.2 |
Income tax expense | 103,821 | 99,639 | 91,979 | 4.2 | 12.9 |
Net income | $ 363,700 | $ 357,796 | $ 310,253 | 1.7% | 17.2% |
Earnings per share ("EPS") | |||||
- Basic | $ 2.65 | $ 2.59 | $ 2.25 | 2.1% | 17.6% |
- Diluted | $ 2.63 | $ 2.57 | $ 2.24 | 2.2 | 17.6 |
Weighted-average number of shares outstanding | |||||
- Basic | 137,450 | 138,054 | 137,818 | (0.4)% | (0.3)% |
- Diluted | 138,301 | 138,919 | 138,789 | (0.4) | (0.4) |
NM - Not meaningful.
Includes $5 million and $6 million of additional compensation expense from the change in equity award expense recognition for retirement eligible employees for the three months ended June 30, 2026 and March 31, 2026, respectively.
Includes $1 million and $833 thousand of FDIC special assessment reversals for the three months ended March 31, 2026 and June 30, 2025, respectively.
Table 4 CONDENSED CONSOLIDATED STATEMENT OF INCOME ($ and shares in thousands, except per share data) (unaudited) Six Months Ended June 30, 2026 % ChangeJune 30, 2026
June 30, 2025
Yr-o-Yr
Interest and dividend income
$ 2,136,333
$ 2,090,801
2.2%
Interest expense
780,489
873,526
(10.7)
Net interest income before provision for credit losses
1,355,844
1,217,275
11.4
Provision for credit losses
69,000
94,000
(26.6)
Net interest income after provision for credit losses
1,286,844
1,123,275
14.6%
Noninterest income:
Commercial and consumer deposit-related fees
62,240
53,940
15.4
Lending and loan servicing fees
54,031
51,816
4.3
Foreign exchange income
30,373
29,552
2.8
Wealth management fees
41,721
24,404
71.0
Customer derivative income
6,490
9,184
(29.3)
Total fee income
194,855
168,896
15.4
Derivative mark-to-market and credit valuation adjustments
202
(2,914)
NM
Net gains on AFS debt securities
3,547
877
304.4
Other investment income
2,907
2,940
(1.1)
Other income
7,537
8,481
(11.1)
Total noninterest income
209,048
178,280
17.3%
Noninterest expense:
Compensation and employee benefits (1)
345,208
291,276
18.5%
Occupancy and equipment expense
37,801
31,978
18.2
Computer and software related expenses
30,180
26,760
12.8
Deposit insurance premiums and regulatory assessments (2)
19,127
19,518
(2.0)
Deposit account expense
16,439
18,390
(10.6)
OREO expense
1,990
3,673
(45.8)
Other operating expense
75,411
74,595
1.1
Total operating noninterest expense
526,156
466,190
12.9
Amortization of tax credit and CRA investments
44,780
41,978
6.7
Total noninterest expense
570,936
508,168
12.4
Income before income taxes
924,956
793,387
16.6
Income tax expense
203,460
192,864
5.5
Net income
$ 721,496
$ 600,523
20.1%
EPS
- Basic
$ 5.24
$ 4.35
20.4%
- Diluted
$ 5.21
$ 4.32
20.6
Weighted-average number of shares outstanding
- Basic
137,757
138,009
(0.2)%
- Diluted
138,568
139,058
(0.4)
NM - Not meaningful.
Includes $11 million of additional compensation expense from the change in equity award expense recognition for retirement eligible employees for the six months ended June 30, 2026.
Includes $1 million of FDIC special assessment reversals for the six months ended June 30, 2026.
Total residential mortgage
17,173,833
16,928,080
16,336,054
1.5
5.1
17,051,635
16,193,678
5.3
CRE:
Multifamily residential
5,196,260
5,131,257
4,981,155
1.3
4.3
5,163,938
4,973,345
3.8
Total CRE
21,550,542
21,322,169
20,535,145
1.1
4.9
21,436,986
20,454,528
4.8
Residential mortgage:
HELOCs
1,987,280
1,914,101
1,858,881
3.8
6.9
1,950,892
1,835,084
6.3
Other consumer
53,075
51,533
47,138
3.0
12.6
52,309
48,351
8.2
Total loans (1) $ 58,229,502 $ 57,054,649 $ 54,281,432 2.1% 7.3% $ 57,645,321 $ 53,812,179 7.1%Single-family residential 15,186,553 15,013,979 14,477,173 1.1 4.9 15,100,743 14,358,594 5.2
Consumer:Construction and land 822,119 766,414 689,713 7.3 19.2 794,420 682,738 16.4
CRE 15,532,163 15,424,498 14,864,277 0.7 4.5 15,478,628 14,798,445 4.6
C&I $ 19,452,052 $ 18,752,867 $ 17,363,095 3.7% 12.0% $ 19,104,391 $ 17,115,622 11.6%
Loans: Commercial: June 30, 2026 March 31, 2026 June 30, 2025 Qtr-o-Qtr Yr-o-Yr June 30, 2026 June 30, 2025 Yr-o-YrInterest-earning assets | $ 80,089,545 | $ 77,967,079 | $ 73,903,125 | 2.7% | 8.4% | $ 79,034,175 | $ 73,314,428 | 7.8% |
Total assets | $ 83,150,969 | $ 81,080,258 | $ 76,862,028 | 2.6% | 8.2% | $ 82,121,334 | $ 76,246,907 | 7.7% |
Deposits: | ||||||||
Noninterest-bearing demand | $ 17,362,645 | $ 16,877,461 | $ 15,114,806 | 2.9% | 14.9% | $ 17,121,393 | $ 15,109,447 | 13.3% |
Interest-bearing checking | 7,530,547 | 7,652,611 | 7,597,103 | (1.6) | (0.9) | 7,591,242 | 7,672,963 | (1.1) |
Money market | 16,545,079 | 16,203,527 | 15,325,928 | 2.1 | 8.0 | 16,375,246 | 15,081,131 | 8.6 |
Savings | 1,905,782 | 1,701,913 | 1,745,220 | 12.0 | 9.2 | 1,804,410 | 1,749,062 | 3.2 |
Time deposits | 25,353,592 | 25,112,122 | 23,894,775 | 1.0 | 6.1 | 25,233,524 | 23,547,978 | 7.2 |
Total deposits | $ 68,697,645 | $ 67,547,634 | $ 63,677,832 | 1.7% | 7.9% | $ 68,125,815 | $ 63,160,581 | 7.9% |
(1) Includes loans HFS. |
Average Balance | Interest | Average Yield/Rate (1) | Average Balance | Interest | Average Yield/Rate (1) | ||
Assets Interest-earning assets: | |||||||
Interest-bearing cash and deposits with banks | $ 3,985,838 | $ 31,216 | 3.14% | $ 3,865,615 | $ 29,851 | 3.13% | |
Resale agreements | 425,000 | 1,624 | 1.53% | 425,000 | 1,625 | 1.55% | |
Debt securities: | |||||||
AFS | 14,441,915 | 158,285 | 4.40% | 13,609,231 | 148,164 | 4.42% | |
HTM | 2,849,553 | 12,044 | 1.70% | 2,861,401 | 12,014 | 1.70% | |
Total debt securities | 17,291,468 | 170,329 | 3.95% | 16,470,632 | 160,178 | 3.94% | |
Loans: | |||||||
C&I | 19,452,052 | 304,621 | 6.28% | 18,752,867 | 297,315 | 6.43% | |
CRE | 21,550,542 | 320,535 | 5.97% | 21,322,169 | 315,923 | 6.01% | |
Residential mortgage | 17,173,833 | 248,541 | 5.80% | 16,928,080 | 244,884 | 5.87% | |
Other consumer | 53,075 | 792 | 5.98% | 51,533 | 756 | 5.95% | |
Total loans (2) | 58,229,502 | 874,489 | 6.02% | 57,054,649 | 858,878 | 6.11% | |
FHLB and FRB stock | 157,737 | 3,165 | 8.05% | 151,183 | 4,978 | 13.35% | |
Total interest-earning assets | $80,089,545 | $1,080,823 | 5.41% | $77,967,079 | $1,055,510 | 5.49% | |
Noninterest-earning assets: | |||||||
Cash and due from banks | 311,337 | 450,219 | |||||
Allowance for loan, lease and securities' losses | (854,564) | (836,828) | |||||
Other assets | 3,604,651 | 3,499,788 | |||||
Total assets | $83,150,969 | $81,080,258 | |||||
Liabilities and Stockholders' Equity | |||||||
Interest-bearing liabilities: | |||||||
Checking deposits | $ 7,530,547 | $ 37,692 | 2.01% | $ 7,652,611 | $ 39,445 | 2.09% | |
Money market deposits | 16,545,079 | 108,628 | 2.63% | 16,203,527 | 104,878 | 2.62% | |
Savings deposits | 1,905,782 | 4,511 | 0.95% | 1,701,913 | 3,010 | 0.72% | |
Time deposits | 25,353,592 | 208,591 | 3.30% | 25,112,122 | 208,079 | 3.36% | |
Total interest-bearing deposits | 51,335,000 | 359,422 | 2.81% | 50,670,173 | 355,412 | 2.84% | |
Short-term borrowings and federal funds purchased | 364 | 5 | 5.08% | 567 | 4 | 2.84% | |
FHLB advances | 3,041,759 | 29,455 | 3.88% | 2,577,223 | 25,004 | 3.93% | |
Repurchase agreements | 707,880 | 6,680 | 3.79% | 350,075 | 3,290 | 3.81% | |
Long-term debt and finance lease liabilities | 35,480 | 610 | 6.89% | 35,566 | 607 | 6.93% | |
Total interest-bearing liabilities | $55,120,483 | $ 396,172 | 2.88% | $53,633,604 | $ 384,317 | 2.91% | |
Noninterest-bearing liabilities and stockholders' equity: | |||||||
Demand deposits | 17,362,645 | 16,877,461 | |||||
Accrued expenses and other liabilities | 1,553,445 | 1,521,820 | |||||
Stockholders' equity | 9,114,396 | 9,047,373 | |||||
Total liabilities and stockholders' equity | $83,150,969 | $81,080,258 | |||||
Total deposits | $68,697,645 | $ 359,422 | 2.10% | $67,547,634 | $ 355,412 | 2.13% | |
Interest rate spread | 2.53% | 2.58% | |||||
Net interest income and net interest margin | $ 684,651 | 3.43% | $ 671,193 | 3.49% |
Annualized.
Includes loans HFS.
June 30, 2026 | June 30, 2025 | ||||||||
Average Balance | Interest | Average Yield/Rate (1) | Average Balance | Interest | Average Yield/Rate (1) | ||||
Assets | |||||||||
Interest-earning assets: | |||||||||
Interest-bearing cash and deposits with banks | $ 3,985,838 | $ 31,216 | 3.14% | $ 3,699,036 | $ 34,935 | 3.79% | |||
Resale agreements | 425,000 | 1,624 | 1.53% | 425,000 | 1,624 | 1.53% | |||
Debt securities: | |||||||||
AFS | 14,441,915 | 158,285 | 4.40% | 12,435,531 | 141,496 | 4.56% | |||
HTM | 2,849,553 | 12,044 | 1.70% | 2,896,410 | 12,292 | 1.70% | |||
Total debt securities | 17,291,468 | 170,329 | 3.95% | 15,331,941 | 153,788 | 4.02% | |||
Loans: | |||||||||
C&I | 19,452,052 | 304,621 | 6.28% | 17,363,095 | 303,791 | 7.02% | |||
CRE | 21,550,542 | 320,535 | 5.97% | 20,535,145 | 319,666 | 6.24% | |||
Residential mortgage | 17,173,833 | 248,541 | 5.80% | 16,336,054 | 241,666 | 5.93% | |||
Other consumer | 53,075 | 792 | 5.98% | 47,138 | 572 | 4.86% | |||
Total loans (2) | 58,229,502 | 874,489 | 6.02% | 54,281,432 | 865,695 | 6.40% | |||
FHLB and FRB stock | 157,737 | 3,165 | 8.05% | 165,716 | 2,957 | 7.16% | |||
Total interest-earning assets | $80,089,545 | $ 1,080,823 | 5.41% | $73,903,125 | $ 1,058,999 | 5.75% | |||
Noninterest-earning assets: | |||||||||
Cash and due from banks | 311,337 | 350,343 | |||||||
Allowance for loan and lease losses | (854,564) | (745,121) | |||||||
Other assets | 3,604,651 | 3,353,681 | |||||||
Total assets | $83,150,969 | $76,862,028 | |||||||
Liabilities and Stockholders' Equity | |||||||||
Interest-bearing liabilities: | |||||||||
Checking deposits | $ 7,530,547 | $ 37,692 | 2.01% | $ 7,597,103 | $ 47,013 | 2.48% | |||
Money market deposits | 16,545,079 | 108,628 | 2.63% | 15,325,928 | 124,282 | 3.25% | |||
Savings deposits | 1,905,782 | 4,511 | 0.95% | 1,745,220 | 3,700 | 0.85% | |||
Time deposits | 25,353,592 | 208,591 | 3.30% | 23,894,775 | 225,593 | 3.79% | |||
Total interest-bearing deposits | 51,335,000 | 359,422 | 2.81% | 48,563,026 | 400,588 | 3.31% | |||
Short-term borrowings and federal funds purchased | 364 | 5 | 5.08% | 659 | 1 | 0.66% | |||
FHLB advances | 3,041,759 | 29,455 | 3.88% | 3,500,003 | 39,313 | 4.51% | |||
Repurchase agreements | 707,880 | 6,680 | 3.79% | 119,061 | 1,352 | 4.55% | |||
Long-term debt and finance lease liabilities | 35,480 | 610 | 6.89% | 35,811 | 671 | 7.52% | |||
Total interest-bearing liabilities | $55,120,483 | $ 396,172 | 2.88% | $52,218,560 | $ 441,925 | 3.39% | |||
Noninterest-bearing liabilities and stockholders' equity: | |||||||||
Demand deposits | 17,362,645 | 15,114,806 | |||||||
Accrued expenses and other liabilities | 1,553,445 | 1,458,680 | |||||||
Stockholders' equity | 9,114,396 | 8,069,982 | |||||||
Total liabilities and stockholders' equity | $83,150,969 | $76,862,028 | |||||||
Total deposits | $68,697,645 | $ 359,422 | 2.10% | $63,677,832 | $ 400,588 | 2.52% | |||
Interest rate spread | 2.53% | 2.36% | |||||||
Net interest income and net interest margin | $ 684,651 | 3.43% | $ 617,074 | 3.35% | |||||
(1) Annualized. | |||||||||
(2) Includes loans HFS. | |||||||||
June 30, 2026 | June 30, 2025 | ||||||||
Average Balance | Interest | Average Yield/Rate (1) | Average Balance | Interest | Average Yield/Rate (1) | ||||
Assets | |||||||||
Interest-earning assets: | |||||||||
Interest-bearing cash and deposits with banks | $ 3,926,059 | $ 61,067 | 3.14% | $ 3,906,499 | $ 74,072 | 3.82% | |||
Resale agreements | 425,000 | 3,249 | 1.54% | 425,000 | 3,234 | 1.53% | |||
Debt securities: | |||||||||
AFS | 14,027,873 | 306,449 | 4.41% | 12,102,837 | 277,015 | 4.62% | |||
HTM | 2,855,444 | 24,058 | 1.70% | 2,902,373 | 24,557 | 1.71% | |||
Total debt securities | 16,883,317 | 330,507 | 3.95% | 15,005,210 | 301,572 | 4.05% | |||
Loans: | |||||||||
C&I | 19,104,391 | 601,936 | 6.35% | 17,115,622 | 597,205 | 7.04% | |||
CRE | 21,436,986 | 636,458 | 5.99% | 20,454,528 | 631,052 | 6.22% | |||
Residential mortgage | 17,051,635 | 493,425 | 5.84% | 16,193,678 | 476,557 | 5.93% | |||
Other consumer | 52,309 | 1,548 | 5.97% | 48,351 | 1,293 | 5.39% | |||
Total loans (2) | 57,645,321 | 1,733,367 | 6.06% | 53,812,179 | 1,706,107 | 6.39% | |||
FHLB and FRB stock | 154,478 | 8,143 | 10.63% | 165,540 | 5,816 | 7.08% | |||
Total interest-earning assets | $79,034,175 | $ 2,136,333 | 5.45% | $73,314,428 | $ 2,090,801 | 5.75% | |||
Noninterest-earning assets: | |||||||||
Cash and due from banks | 380,395 | 347,797 | |||||||
Allowance for loan, lease and securities' losses | (845,745) | (730,768) | |||||||
Other assets | 3,552,509 | 3,315,450 | |||||||
Total assets | $82,121,334 | $76,246,907 | |||||||
Liabilities and Stockholders' Equity | |||||||||
Interest-bearing liabilities: | |||||||||
Checking deposits | $ 7,591,242 | $ 77,137 | 2.05% | $ 7,672,963 | $ 94,924 | 2.49% | |||
Money market deposits | 16,375,246 | 213,506 | 2.63% | 15,081,131 | 240,300 | 3.21% | |||
Savings deposits | 1,804,410 | 7,521 | 0.84% | 1,749,062 | 7,147 | 0.82% | |||
Time deposits | 25,233,524 | 416,670 | 3.33% | 23,547,978 | 450,198 | 3.86% | |||
Total interest-bearing deposits | 51,004,422 | 714,834 | 2.83% | 48,051,134 | 792,569 | 3.33% | |||
Short-term borrowings and federal funds purchased | 465 | 9 | 3.73% | 544 | 7 | 2.56% | |||
FHLB advances | 2,810,775 | 54,459 | 3.91% | 3,500,002 | 78,179 | 4.50% | |||
Repurchase agreements | 529,966 | 9,970 | 3.79% | 63,183 | 1,429 | 4.56% | |||
Long-term debt and finance lease liabilities | 35,523 | 1,217 | 6.91% | 35,864 | 1,342 | 7.55% | |||
Total interest-bearing liabilities | $54,381,151 | $ 780,489 | 2.89% | $51,650,727 | $ 873,526 | 3.41% | |||
Noninterest-bearing liabilities and stockholders' equity: | |||||||||
Demand deposits | 17,121,393 | 15,109,447 | |||||||
Accrued expenses and other liabilities | 1,537,720 | 1,516,650 | |||||||
Stockholders' equity | 9,081,070 | 7,970,083 | |||||||
Total liabilities and stockholders' equity | $82,121,334 | $76,246,907 | |||||||
Total deposits | $68,125,815 | $ 714,834 | 2.12% | $63,160,581 | $ 792,569 | 2.53% | |||
Interest rate spread | 2.56% | 2.34% | |||||||
Net interest income and net interest margin | $ 1,355,844 | 3.46% | $ 1,217,275 | 3.35% | |||||
(1) Annualized. | |||||||||
(2) Includes loans HFS. |
June 30, 2026 | March 31, 2026 | June 30, 2025 | Qtr-o-Qtr | Yr-o-Yr | |
Return on average assets | 1.75% | 1.79% | 1.62% | (4) bps | 13 bps |
Adjusted return on average assets (2) | 1.75% | 1.79% | 1.65% | (4) | 10 |
Return on average common equity | 16.01% | 16.04% | 15.42% | (3) | 59 |
Adjusted return on average common equity (2) | 16.01% | 16.01% | 15.71% | - | 30 |
Return on average TCE (3) | 16.88% | 16.92% | 16.39% | (4) | 49 |
Adjusted return on average TCE (3) | 16.88% | 16.89% | 16.69% | (1) | 19 |
Interest rate spread | 2.53% | 2.58% | 2.36% | (5) | 17 |
Net interest margin | 3.43% | 3.49% | 3.35% | (6) | 8 |
Average loan yield | 6.02% | 6.11% | 6.40% | (9) | (38) |
Yield on average interest-earning assets | 5.41% | 5.49% | 5.75% | (8) | (34) |
Average cost of interest-bearing deposits | 2.81% | 2.84% | 3.31% | (3) | (50) |
Average cost of deposits | 2.10% | 2.13% | 2.52% | (3) | (42) |
Average cost of funds | 2.19% | 2.21% | 2.63% | (2) | (44) |
Operating noninterest expense/average assets | 1.29% | 1.29% | 1.20% | - | 9 |
Efficiency ratio | 36.73% | 36.23% | 36.41% | 50 | 32 |
Adjusted efficiency ratio (4) | 36.73% | 36.36% | 36.52% | 37 | 21 |
Efficiency ratio (fully taxable equivalent) ("FTE") (4) | 36.68% | 36.17% | 36.32% | 51 | 36 |
Adjusted efficiency ratio (FTE) (4) | 36.68% | 36.30% | 36.44% | 38 | 24 |
Effective tax rate | 22.21% | 21.78% | 22.87% | 43 | (66) |
Adjusted effective tax rate (2) | 22.21% | 21.78% | 21.28% | 43 bps | 93 bps |
June 30, 2026 | June 30, 2025 | Yr-o-Yr | ||
Return on average assets | 1.77% | 1.59% | 18 | bps |
Adjusted return on average assets (2) | 1.77% | 1.61% | 16 | |
Return on average common equity | 16.02% | 15.19% | 83 | |
Adjusted return on average common equity (2) | 16.01% | 15.36% | 65 | |
Return on average TCE (3) | 16.90% | 16.16% | 74 | |
Adjusted return on average TCE (3) | 16.89% | 16.33% | 56 | |
Interest rate spread | 2.56% | 2.34% | 22 | |
Net interest margin | 3.46% | 3.35% | 11 | |
Average loan yield | 6.06% | 6.39% | (33) | |
Yield on average interest-earning assets | 5.45% | 5.75% | (30) | |
Average cost of interest-bearing deposits | 2.83% | 3.33% | (50) | |
Average cost of deposits | 2.12% | 2.53% | (41) | |
Average cost of funds | 2.20% | 2.64% | (44) | |
Operating noninterest expense/average assets | 1.29% | 1.23% | 6 | |
Efficiency ratio | 36.48% | 36.41% | 7 | |
Adjusted efficiency ratio (4) | 36.55% | 36.41% | 14 | |
Efficiency ratio (FTE) (4) | 36.43% | 36.34% | 9 | |
Adjusted efficiency ratio (FTE) (4) | 36.49% | 36.34% | 15 | |
Effective tax rate | 22.00% | 24.31% | (231) | |
Adjusted effective tax rate (2) | 22.00% | 23.50% | (150) | bps |
Annualized except for efficiency ratio and effective tax rate.
Adjusted return on average assets, adjusted return on average common equity and adjusted effective tax rate are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP financial measures in Table 12.
Return on average TCE and adjusted return on average TCE are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP financial measures in Table 14.
Adjusted efficiency ratio, efficiency ratio (FTE) and adjusted efficiency ratio (FTE) are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP financial measures in Table 13.
($ in thousands) | C&I | CRE | Multifamily Residential | Construction and Land | SFR | HELOCs | Other Consumer | Total |
ALLL, March 31, 2026 | $483,384 $231,802 $ 39,446 $ 17,170 $ 56,883 | $ 5,899 | $ 1,290 | $835,874 | ||||
Provision for credit losses on loans | (a) | 18,928 5,145 882 2,799 4,273 | 670 | 227 | 32,924 | |||
Gross charge-offs | (21,960) (6,848) - (1) (31) | (11) | (18) | (28,869) | ||||
Gross recoveries | 394 1,252 12 - 123 | 2 | 3 | 1,786 | ||||
Total net (charge-offs) recoveries | (21,566) (5,596) 12 (1) 92 | (9) | (15) | (27,083) | ||||
Foreign currency translation adjustment | 341 - - - - | - | - | 341 | ||||
ALLL, June 30, 2026 | $481,087 $231,351 $ 40,340 $ 19,968 $ 61,248 | $ 6,560 | $ 1,502 | $842,056 | ||||
($ in thousands) | C&I | CRE | Multifamily Residential | Construction and Land | SFR | HELOCs | Other Consumer | Total | ||||||
ALLL, December 31, 2025 | $475,613 | $221,494 | $ | 36,555 | $ | 15,468 | $ | 53,463 | $ | 5,804 | $ | 1,376 | $809,773 | |
Provision for (reversal of) credit losses on loans | (a) | 17,892 | 11,160 | 2,880 | 2,593 | 3,519 | 92 | (262) | 37,874 | |||||
Gross charge-offs | (18,385) | (1,305) | - | (893) | (121) | - | (75) | (20,779) | ||||||
Gross recoveries | 7,918 | 453 | 11 | 2 | 22 | 3 | 251 | 8,660 | ||||||
Total net (charge-offs) recoveries | (10,467) | (852) | 11 | (891) | (99) | 3 | 176 | (12,119) | ||||||
Foreign currency translation adjustment | 346 | - | - | - | - | - | - | 346 | ||||||
ALLL, March 31, 2026 | $483,384 $231,802 $ 39,446 $ 17,170 $ 56,883 | $ | 5,899 | $ | 1,290 | $835,874 | ||||||||
Total net (charge-offs) recoveries
(6,647) (8,288)
23
3
4
8
246 (14,651)
Three Months Ended June 30, 2025 Commercial Consumer CRE Residential Mortgage ($ in thousands) C&I Multifamily Construction CRE Residential and Land SFR Other HELOCs Consumer TotalProvision for (reversal of)
credit losses on loans (a) 27,595
8,007
(3,274)
2,654
5,064
369
(259) 40,156
Gross recoveries
1,504
18
26
3
4
8
250
1,813
Foreign currency translation adjustment
55
-
-
-
-
-
-
55
ALLL, June 30, 2025 $442,291 $212,618 $ 29,073 $ 17,856 $ 51,997 $ 5,256 $ 1,325 $760,416 ALLL, March 31, 2025 $421,288 $212,899 $ 32,324 $ 15,199 $ 46,929 $ 4,879 $ 1,338 $734,856Gross charge-offs (8,151) (8,306) (3) - - - (4) (16,464)
Table 10 (continued) ALLOWANCE FOR CREDIT LOSSES ($ in thousands) (unaudited) Six Months Ended June 30, 2026 Commercial Consumer CRE Residential Mortgage($ in thousands) | C&I | CRE | Multifamily Residential | Construction and Land | SFR | HELOCs | Other Consumer | Total | |||
ALLL, December 31, 2025 | $ 475,613 | $ 221,494 | $ 36,555 | $ 15,468 | $ 53,463 | $ 5,804 | $ 1,376 | $809,773 | |||
Provision for (reversal of) credit | |||||||||||
losses on loans | (a) | 36,820 | 16,305 | 3,762 | 5,392 | 7,792 | 762 | (35) | 70,798 | ||
Gross charge-offs | (40,345) | (8,153) | - | (894) | (152) | (11) | (93) | (49,648) | |||
Gross recoveries | 8,312 | 1,705 | 23 | 2 | 145 | 5 | 254 | 10,446 | |||
Total net (charge-offs) recoveries | (32,033) | (6,448) | 23 | (892) | (7) | (6) | 161 | (39,202) | |||
Foreign currency translation adjustment | 687 | - | - | - | - | - | - | 687 | |||
ALLL, June 30, 2026 | $ 481,087 $ 231,351 $ 40,340 $ 19,968 $ 61,248 | $ | 6,560 | $ | 1,502 | $842,056 | |||||
($ in thousands) | C&I | CRE | Multifamily Residential | Construction and Land | SFR | HELOCs | Other Consumer | Total | ||
ALLL, December 31, 2024 | $ 384,319 | 218,677 | 32,117 | 17,497 | 44,816 | 3,132 | $ 1,494 | $702,052 | ||
Provision for (reversal of) credit losses on loans (a) | 63,965 | 16,112 | (3,073) | 2,349 | 7,136 | 2,108 | (379) | 88,218 | ||
Gross charge-offs | (9,139) | (22,243) | (7) | (1,996) | (9) | - | (53) | (33,447) | ||
Gross recoveries | 3,068 | 72 | 36 | 6 | 54 | 16 | 263 | 3,515 | ||
Total net (charge-offs) recoveries | (6,071) | (22,171) | 29 | (1,990) | 45 | 16 | 210 | (29,932) | ||
Foreign currency translation adjustment | 78 | - | - | - | - | - | - | 78 | ||
ALLL, June 30, 2025 $ 442,291 $ 212,618 $ 29,073 $ 17,856 $ 51,997 | $ | 5,256 | $ | 1,325 | $760,416 | |||||
Allowance for unfunded credit commitments, beginning of period (1) | $ 47,005 | $ 48,690 | $ 40,464 | $ 48,690 | $ 39,526 | |||||
Provision for (reversal of) credit losses on unfunded credit commitments | (b) | 76 | (1,682) | 4,844 | (1,606) | 5,782 | ||||
Foreign currency translation adjustment | (4) | (3) | (1) | (7) | (1) | |||||
Allowance for unfunded credit commitments, end of period (1) | $ | 47,077 | $ | 47,005 | $ | 45,307 | $ | 47,077 | $ | 45,307 |
Provision for credit losses on loans and unfunded credit commitments
(a)+(b) $33,000 $
36,192 $
45,000 $
69,192 $
94,000
Reversal of credit losses on AFS debt
securities (c) - (192) - (192) -
Total provision for credit losses (a)+(b)+(c) $ 33,000 $ 36,000 $ 45,000 $ 69,000 $ 94,000
Included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheet.
CRITICIZED LOANS, NONPERFORMING ASSETS, CREDIT QUALITY RATIOS AND COMPOSITION OF ALLOWANCE BY PORTFOLIO ($ in thousands) (unaudited)Table 11
Criticized Loans
June 30, 2026 March 31, 2026
June 30, 2025
Special mention loans
$ 433,342 $ 316,230
$ 446,665
Classified loans
854,382 913,386
736,228
Total criticized loans (1)
$ 1,287,724 $ 1,229,616
$ 1,182,893
(1) Excludes loans HFS.
Nonperforming Assets
June 30, 2026 March 31, 2026
June 30, 2025
Nonaccrual loans:
Commercial:
C&I
$ 48,692 $ 61,063
$ 71,894
Total CRE
89,122 56,104
9,420
Consumer:
Total residential mortgage
67,082 63,452
58,003
Other consumer
62 29
137
Total nonaccrual loans
204,958 180,648
139,454
OREO, net
24,576 14,917
32,224
Nonperforming loans HFS
17,425 20,759
-
Total nonperforming assets
$ 246,959 $ 216,324
$ 171,678
Credit Quality Ratios
June 30, 2026 March 31, 2026
June 30, 2025
Annualized quarterly net charge-offs to average loans HFI
0.19 % 0.09 %
0.11 %
Annualized YTD net charge-offs to YTD average loans HFI
0.14 % 0.09 %
0.11 %
Special mention loans to loans HFI
0.73 % 0.54 %
0.81 %
Classified loans to loans HFI
1.45 % 1.57 %
1.34 %
Criticized loans to loans HFI
2.18 % 2.12 %
2.15 %
Nonperforming assets to total assets
0.29 % 0.26 %
0.22 %
Nonaccrual loans to loans HFI
0.35 % 0.31 %
0.25 %
ALLL to loans HFI
1.43 % 1.44 %
1.38 %
Composition of ALLL by Portfolio
June 30, 2026 March 31, 2026
June 30, 2025
Table 12 EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited)Loan Category
ALLL
ALLL/
Loans HFI
ALLL
ALLL/
Loans HFI
ALLL
ALLL/
Loans HFI
C&I
$ 481,087
2.42 %
$ 483,384
2.47 %
$ 442,291
2.48 %
Total CRE
291,659
1.35
288,418
1.35
259,547
1.26
Multifamily
40,340
0.77
39,446
0.77
29,073
0.58
Office
65,489
2.85
65,546
2.87
60,354
2.78
All other CRE
185,830
1.32
183,426
1.31
170,120
1.26
Total residential mortgage
67,808
0.39
62,782
0.37
57,253
0.35
Other consumer
1,502
2.65
1,290
2.48
1,325
2.65
Total loans
$ 842,056
1.43 %
$ 835,874
1.44 %
$ 760,416
1.38 %
On June 30, 2025, the California single sales factor apportionment method ("CA SSF") was approved for financial institutions in the 2025 tax year, which resulted in $6 million of additional income tax expense recorded in the second quarter of 2025. The table below provides the computation of the Company's effective tax rate and adjusted effective tax rate excluding the impact of the CA SSF. Management believes that presenting the adjusted effective tax rate computation allows comparability among different periods.
Three Months Ended Six Months EndedJune 30, 2026
March 31, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Income tax expense
(a)
$ 103,821
$ 99,639
$ 91,979
$ 203,460
$ 192,864
Less: Impact of the CA SSF
(b)
-
-
(6,391)
-
(6,391)
Adjusted income tax expense
(c)=(a)+(b)
$ 103,821
$ 99,639
$ 85,588
$ 203,460
$ 186,473
Income before income taxes
(d)
467,521
457,435
402,232
924,956
793,387
Effective tax rate
(a)/(d)
22.21 %
21.78 %
22.87 %
22.00 %
24.31 %
Less: Impact of the CA SSF
(b)/(d)
- %
- %
(1.59)%
- %
(0.81)%
Adjusted effective tax rate
(c)/(d)
22.21 %
21.78 %
21.28 %
22.00 %
23.50 %
Adjusted net income and adjusted diluted EPS represent net income and diluted EPS adjusted for the tax-effected impacts of the FDIC special assessment reversals and the impact of the CA SSF. Management believes that presenting the computations of the adjusted net income, adjusted diluted EPS, adjusted return on average assets and adjusted return on average common equity provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods.
FDIC special assessment reversals are included in Deposit insurance premiums and regulatory assessments on the Condensed
Consolidated Statement of Income.
During the second quarter of 2025, the Company recorded $6 million of additional income tax expense due to the impact of the CA SSF.
June 30, 2026 | March 31, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||
Net income | (a) | $ 363,700 | $ 357,796 | $ 310,253 | $ 721,496 | $ 600,523 |
Less: FDIC special assessment reversals | (b) | - | (1,015) | (833) | (1,015) | - |
Tax effects of adjustments (1) | (b) | - | 284 | 235 | 284 | - |
Add: Impact of the CA SSF | (b) | - | - | 6,391 | - | 6,391 |
Adjusted net income | (c)=(a)+∑(b) | $ 363,700 | $ 357,065 | $ 316,046 | $ 720,765 | $ 606,914 |
Diluted weighted-average number of shares outstanding | (d) | 138,301 | 138,919 | 138,789 | 138,568 | 139,058 |
Diluted EPS | (e) | $ 2.63 | $ 2.57 | $ 2.24 | $ 5.21 | $ 4.32 |
Less: FDIC special assessment reversals | (f) | - | - | (0.01) | (0.01) | - |
Tax effects of adjustments (1) | (f) | - | - | - | - | - |
Add: Impact of the CA SSF | (f) | - | - | 0.05 | - | 0.05 |
Adjusted diluted EPS | (g)=(e)+∑(f) | $ 2.63 | $ 2.57 | $ 2.28 | $ 5.20 | $ 4.37 |
Average total assets | (h) | $83,150,969 | $ 81,080,258 | $76,862,028 | $82,121,334 | $76,246,907 |
Average stockholders' equity | (i) | $ 9,114,396 | $ 9,047,373 | $ 8,069,982 | $ 9,081,070 | $ 7,970,083 |
Return on average assets (2) | (a)/(h) | 1.75% | 1.79% | 1.62% | 1.77% | 1.59% |
Adjusted return on average assets (2) | (c)/(h) | 1.75% | 1.79% | 1.65% | 1.77% | 1.61% |
Return on average common equity (2) | (a)/(i) | 16.01% | 16.04% | 15.42% | 16.02% | 15.19% |
Adjusted return on average common equity (2) | (c)/(i) | 16.01% | 16.01% | 15.71% | 16.01% | 15.36% |
Applied statutory tax rate of 28.02% for the three and six months ended June 30, 2026, and the three months ended March 31, 2026. Applied statutory tax rate of 28.18% for the three and six months ended June 30, 2025.
Annualized.
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance. Non-GAAP measures used consist of FTE net interest income and total revenue. The FTE adjustment relates to tax exempt interest on certain investment securities and loans. Adjusted noninterest expense reflects the FDIC special assessment.
Efficiency ratio (FTE) represents noninterest expense divided by total revenue (FTE). Adjusted efficiency ratio and adjusted efficiency ratio (FTE) reflect the impacts of the aforementioned adjustments. Pre-tax, pre-provision income (FTE) represents total revenue (FTE) less noninterest expense. Adjusted pre-tax, pre-provision income (FTE) represents total revenue (FTE) less adjusted noninterest expense.
Three Months Ended Six Months EndedJune 30, 2026 | March 31, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||
Net interest income before provision for credit losses | (a) | $ 684,651 | $ 671,193 | $ 617,074 | $ 1,355,844 | $ 1,217,275 |
FTE adjustment | (b) | 1,196 | 1,250 | 1,603 | 2,446 | 2,749 |
FTE net interest income before provision for credit losses | (c)=(a)+(b) | 685,847 | 672,443 | 618,677 | 1,358,290 | 1,220,024 |
Total noninterest income | (d) | 106,492 | 102,556 | 86,178 | 209,048 | 178,280 |
Total revenue | (e)=(a)+(d) | 791,143 | 773,749 | 703,252 | 1,564,892 | 1,395,555 |
Total revenue (FTE) | (f)=(c)+(d) | $ 792,339 | $ 774,999 | $ 704,855 | $ 1,567,338 | $ 1,398,304 |
Total noninterest expense | (g) | $ 290,622 | $ 280,314 | $ 256,020 | $ 570,936 | $ 508,168 |
Add: FDIC special assessment reversals | (h) | - | 1,015 | 833 | 1,015 | - |
Adjusted noninterest expense | (i)=(g)+(h) | $ 290,622 | $ 281,329 | $ 256,853 | $ 571,951 | $ 508,168 |
Efficiency ratio | (g)/(e) | 36.73 % | 36.23 % | 36.41 % | 36.48 % | 36.41 % |
Adjusted efficiency ratio | (i)/(e) | 36.73 % | 36.36 % | 36.52 % | 36.55 % | 36.41 % |
Efficiency ratio (FTE) | (g)/(f) | 36.68 % | 36.17 % | 36.32 % | 36.43 % | 36.34 % |
Adjusted efficiency ratio (FTE) | (i)/(f) | 36.68 % | 36.30 % | 36.44 % | 36.49 % | 36.34 % |
Pre-tax, pre-provision income ("PTPP") | (e)-(g) | $ 500,521 | $ 493,435 | $ 447,232 | $ 993,956 | $ 887,387 |
PTPP (FTE) | (f)-(g) | $ 501,717 | $ 494,685 | $ 448,835 | $ 996,402 | $ 890,136 |
Adjusted PTPP (FTE) | (f)-(i) | $ 501,717 | $ 493,670 | $ 448,002 | $ 995,387 | $ 890,136 |
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance. Tangible book value, tangible book value per share and TCE ratio are non-GAAP financial measures. Tangible book value and tangible assets represent stockholders' equity and total assets, respectively, which have been reduced by goodwill and mortgage servicing assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and are used by banking regulators and analysts, the Company has included them below for discussion.
June 30, 2026 | March 31, 2026 | June 30, 2025 | ||
Common stock | $ 171 | $ 171 | $ 170 | |
Additional paid-in capital | 2,151,229 | 2,131,219 | 2,060,115 | |
Retained earnings | 8,800,428 | 8,547,820 | 7,744,221 | |
Treasury stock | (1,292,113) | (1,291,555) | (1,140,359) | |
Accumulated other comprehensive income: | ||||
AFS debt securities net unrealized losses | (396,324) | (383,753) | (466,568) | |
Cash flow hedges net unrealized (losses) gains | (4,637) | 12,034 | 28,622 | |
Foreign currency translation adjustments | (12,825) | (16,501) | (24,434) | |
Total accumulated other comprehensive loss | (413,786) | (388,220) | (462,380) | |
Stockholders' equity | (a) | $ 9,245,929 | $ 8,999,435 | $ 8,201,767 |
Less: Goodwill | (465,697) | (465,697) | (465,697) | |
Mortgage servicing assets | (3,736) | (3,978) | (4,628) | |
Tangible book value | (b) | $ 8,776,496 | $ 8,529,760 | $ 7,731,442 |
Number of common shares at period-end | (c) | 137,011 | 136,979 | 137,816 |
Book value per share | (a)/(c) | $ 67.48 | $ 65.70 | $ 59.51 |
Tangible book value per share | (b)/(c) | $ 64.06 | $ 62.27 | $ 56.10 |
Total assets | (d) | $ 84,763,472 | $ 82,886,152 | $ 78,158,067 |
Less: Goodwill | (465,697) | (465,697) | (465,697) | |
Mortgage servicing assets | (3,736) | (3,978) | (4,628) | |
Tangible assets | (e) | $ 84,294,039 | $ 82,416,477 | $ 77,687,742 |
Total stockholders' equity to assets ratio | (a)/(d) | 10.91% | 10.86% | 10.49% |
TCE ratio | (b)/(e) | 10.41% | 10.35% | 9.95% |
Return on average TCE represents tangible net income divided by average tangible book value. Tangible net income excludes the after-tax impacts of the amortization of mortgage servicing assets. Adjusted return on average TCE represents adjusted tangible net income divided by average tangible book value. Adjusted tangible net income is tangible net income excluding the tax-effected impacts of the FDIC special assessment reversals and the impact of the CA SSF. Given that the use of such measures and ratios is more prevalent in the banking industry, and are used by banking regulators and analysts, the Company has included them below for discussion.
Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025Net income | (f) | $ 363,700 $ 357,796 $ 310,253 $ 721,496 $ 600,523 |
Add: Amortization of mortgage servicing assets | 264 149 316 413 609 | |
Tax effect of amortization adjustment (1) | (74) (42) (89) (116) (172) | |
Tangible net income | (g) | $ 363,890 $ 357,903 $ 310,480 $ 721,793 $ 600,960 |
Less: FDIC special assessment reversals | - (1,015) (833) (1,015) - | |
Tax effects of adjustments (1) | - 284 235 284 - | |
Add: Impact of the CA SSF | - - 6,391 - 6,391 | |
Adjusted tangible net income | (h) | $ 363,890 $ 357,172 $ 316,273 $ 721,062 $ 607,351 |
Average stockholders' equity | (i) | $ 9,114,396 $ 9,047,373 $ 8,069,982 $ 9,081,070 $ 7,970,083 |
Less: Average goodwill | (465,697) (465,697) (465,697) (465,697) (465,697) | |
Average mortgage servicing assets | (3,884) (4,025) (4,825) (3,954) (4,971) | |
Average tangible book value | (j) | $ 8,644,815 $ 8,577,651 $ 7,599,460 $ 8,611,419 $ 7,499,415 |
Return on average common equity (2) | (f)/(i) | 16.01% 16.04% 15.42% 16.02% 15.19% |
Return on average TCE (2) | (g)/(j) | 16.88% 16.92% 16.39% 16.90% 16.16% |
Adjusted return on average TCE (2) | (h)/(j) | 16.88% 16.89% 16.69% 16.89% 16.33% |
Applied statutory tax rate of 28.02% for the three and six months ended June 30, 2026, and the three months ended March 31, 2026. Applied statutory tax rate of 28.18% for the three and six months ended June 30, 2025.
Annualized.