We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
East West Bancorp Q1 Earnings Top Estimates on Higher NII & Fee Income
Read MoreHide Full Article
Key Takeaways
EWBC Q1 EPS of $2.57 beat estimates and rose 22.9% YoY on higher NII, fee income, and lower provisions.
EWBC's revenues grew 11.7% as NII climbed 11.8% and margin expanded, with non-interest income also rising.
EWBC witnessed loan and deposit growth, but higher expenses and mixed asset quality trends remained concerns.
East West Bancorp, Inc.’s (EWBC - Free Report) first-quarter 2026 earnings per share (EPS) of $2.57 beat the Zacks Consensus Estimate of $2.46. Moreover, the bottom line increased 22.9% from the prior-year quarter’s level.
The results were primarily aided by an increase in net interest income (NII) and non-interest income alongside lower provisions. Also, loan and deposit balances increased sequentially in the quarter. However, higher non-interest expenses acted as a spoilsport.
Net income available to common shareholders was $357.8 million, up from $290.2 million in the prior-year quarter.
EWBC’s Revenues & Expenses Increase
Quarterly net revenues were $773.7 million, up 11.7% year over year. Moreover, the top line beat the Zacks Consensus Estimate of $754.5 million.
Quarterly NII amounted to $671.2 million, which increased 11.8% year over year. Further, net interest margin (NIM) expanded 14 basis points (bps) to 3.49%. We expected NII and NIM to be $661 million and 3.39%, respectively.
Total non-interest income was $102.5 million, up 11.4% year over year. An increase in all components, except lending and loan servicing fees income, foreign exchange income and customer derivative income, drove the improvement. We estimated non-interest income to be $89.6 million.
Non-interest expenses totaled $280.3 million, up 11.2% from the prior-year quarter’s level. The rise was due to an increase in all components except deposit account expense and deposit insurance premiums and regulatory assessment charges. Our estimate for the same was $268.6 million.
The efficiency ratio was 36.23%, down from 36.42% in the prior-year quarter. A fall in the efficiency ratio indicates an improvement in profitability.
As of March 31, 2026, net loans held for investment (HFI) were $57.3 billion, reflecting a 2.1% rise sequentially. Further, total deposits rose 2.7% to $68.9 billion.
East West Bancorp’s Credit Quality: A Mixed Bag
Annualized quarterly net charge-offs were 0.09% of average loans HFI, down 3 bps from the prior-year quarter’s level.
The provision for credit losses was $36 million, down from $49 million in the prior-year quarter. Our estimate for the same was $45.4 million.
Non-performing assets totaled $216.3 million, up from $182.2 million in the prior-year quarter.
EWBC’s Capital & Profitability Ratios Improve
As of March 31, 2026, the common equity Tier 1 (CET1) capital ratio was 15.13%, up from 14.32% as of March 31, 2025. The total risk-based capital ratio was 16.45%, up from 15.63% a year ago.
Return on average assets was 1.79%, up from 1.56% in the prior-year quarter. Return on average tangible equity was 16.92%, up from 15.92%.
East West Bancorp’s Share Repurchase Update
In the reported quarter, East West Bancorp repurchased approximately 938,000 shares for $98 million. As of March 31, 2026, $117 million of authorization remained available for repurchase.
Our View on EWBC
East West Bancorp is well-poised for organic growth with decent loan improvement, solid deposit balances and diversified fee income streams. However, a rise in expenses and a weak asset quality amid a tough operating backdrop are likely to hurt the bottom line.
East West Bancorp, Inc. Price, Consensus and EPS Surprise
BOK Financial Corporation's (BOKF - Free Report) first-quarter 2026 earnings of $2.58 per share surpassed the Zacks Consensus Estimate of $2.30. The bottom line jumped 38.7% from the prior-year quarter.
BOKF’s results benefited from higher net interest income and total fees and commissions. An increase in loans was another positive. However, the rise in operating expenses was a major undermining factor.
WaFd, Inc.’s (WAFD - Free Report) second-quarter fiscal 2026 (ended March 31) adjusted earnings of 83 cents per share beat the Zacks Consensus Estimate of 74 cents. The bottom line also jumped 27.7% year over year.
WAFD’s results reflected higher net interest income and non-interest income. However, elevated expenses and provisions were the undermining factors. A decline in loans and deposits was another headwind.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Zacks
East West Bancorp Q1 Earnings Top Estimates on Higher NII & Fee Income
Key Takeaways
East West Bancorp, Inc.’s (EWBC - Free Report) first-quarter 2026 earnings per share (EPS) of $2.57 beat the Zacks Consensus Estimate of $2.46. Moreover, the bottom line increased 22.9% from the prior-year quarter’s level.
The results were primarily aided by an increase in net interest income (NII) and non-interest income alongside lower provisions. Also, loan and deposit balances increased sequentially in the quarter. However, higher non-interest expenses acted as a spoilsport.
Net income available to common shareholders was $357.8 million, up from $290.2 million in the prior-year quarter.
EWBC’s Revenues & Expenses Increase
Quarterly net revenues were $773.7 million, up 11.7% year over year. Moreover, the top line beat the Zacks Consensus Estimate of $754.5 million.
Quarterly NII amounted to $671.2 million, which increased 11.8% year over year. Further, net interest margin (NIM) expanded 14 basis points (bps) to 3.49%. We expected NII and NIM to be $661 million and 3.39%, respectively.
Total non-interest income was $102.5 million, up 11.4% year over year. An increase in all components, except lending and loan servicing fees income, foreign exchange income and customer derivative income, drove the improvement. We estimated non-interest income to be $89.6 million.
Non-interest expenses totaled $280.3 million, up 11.2% from the prior-year quarter’s level. The rise was due to an increase in all components except deposit account expense and deposit insurance premiums and regulatory assessment charges. Our estimate for the same was $268.6 million.
The efficiency ratio was 36.23%, down from 36.42% in the prior-year quarter. A fall in the efficiency ratio indicates an improvement in profitability.
As of March 31, 2026, net loans held for investment (HFI) were $57.3 billion, reflecting a 2.1% rise sequentially. Further, total deposits rose 2.7% to $68.9 billion.
East West Bancorp’s Credit Quality: A Mixed Bag
Annualized quarterly net charge-offs were 0.09% of average loans HFI, down 3 bps from the prior-year quarter’s level.
The provision for credit losses was $36 million, down from $49 million in the prior-year quarter. Our estimate for the same was $45.4 million.
Non-performing assets totaled $216.3 million, up from $182.2 million in the prior-year quarter.
EWBC’s Capital & Profitability Ratios Improve
As of March 31, 2026, the common equity Tier 1 (CET1) capital ratio was 15.13%, up from 14.32% as of March 31, 2025. The total risk-based capital ratio was 16.45%, up from 15.63% a year ago.
Return on average assets was 1.79%, up from 1.56% in the prior-year quarter. Return on average tangible equity was 16.92%, up from 15.92%.
East West Bancorp’s Share Repurchase Update
In the reported quarter, East West Bancorp repurchased approximately 938,000 shares for $98 million. As of March 31, 2026, $117 million of authorization remained available for repurchase.
Our View on EWBC
East West Bancorp is well-poised for organic growth with decent loan improvement, solid deposit balances and diversified fee income streams. However, a rise in expenses and a weak asset quality amid a tough operating backdrop are likely to hurt the bottom line.
East West Bancorp, Inc. Price, Consensus and EPS Surprise
East West Bancorp, Inc. price-consensus-eps-surprise-chart | East West Bancorp, Inc. Quote
Currently, EWBC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Banks
BOK Financial Corporation's (BOKF - Free Report) first-quarter 2026 earnings of $2.58 per share surpassed the Zacks Consensus Estimate of $2.30. The bottom line jumped 38.7% from the prior-year quarter.
BOKF’s results benefited from higher net interest income and total fees and commissions. An increase in loans was another positive. However, the rise in operating expenses was a major undermining factor.
WaFd, Inc.’s (WAFD - Free Report) second-quarter fiscal 2026 (ended March 31) adjusted earnings of 83 cents per share beat the Zacks Consensus Estimate of 74 cents. The bottom line also jumped 27.7% year over year.
WAFD’s results reflected higher net interest income and non-interest income. However, elevated expenses and provisions were the undermining factors. A decline in loans and deposits was another headwind.