EWBC

Columbia Banking System, Inc. COLB topped second-quarter 2026 earnings expectations as net interest income (NII) and fee income advanced. Operating earnings of 76 cents per share beat the Zacks Consensus Estimate of 73 cents.The quarter was less convincing beneath the headline. Revenues missed expectations, expenses remained elevated, balances declined and non-performing assets increased, leaving credit and efficiency trends central to the outlook. Columbia Banking System, Inc. price-consensus-eps-surprise-chart | Columbia Banking System, Inc. Quote Total revenues increased 32.5% year over year to $677 million, supported by the larger balance sheet following the Pacific Premier acquisition. Net interest income rose 32.1% to $589 million.Still, revenues fell short of the Zacks Consensus Estimate of $688.4 million. That miss limits the strength of the earnings beat because the upside came with less top-line support than analysts expected. COLB’s NII was $589 million, up 32.1% from the second quarter of 2025. The increase reflected the larger balance sheet following the Pacific Premier acquisition. The net interest margin (NIM) expanded 18 basis points year over year to 3.93%. The cost of interest-bearing deposits declined 56 basis points to 1.96%, while the cost of total deposits fell to 1.32% from 1.73%.Management expects the margin to reach or exceed 4% in the third quarter. Continued loan repricing, a shift toward higher-return relationship lending and reductions in higher-cost funding are expected to support that improvement.East West Bancorp EWBC is a key peer with a Zacks Rank #3 at present. In the second quarter of 2026, its NIM expanded eight basis points (bps) to 3.43%.  Supported by robust loan demand, lower deposit beta and stabilizing funding costs alongside balance sheet hedging, EWBC’s NIM growth is expected to continue in the near term.Zions Bancorporation ZION is another close peer with a Zacks Rank #3. ZION has been witnessing a rise in NIM for the last several quarters as funding costs declined. In the second quarter 2026, NIM expanded 10 basis points (bps) year over year to 3.27% In the near-term, the company’s NIM is likely to be positively impacted, driven by stabilizing deposit costs and asset yield repricing. Non-interest income increased 35.4% year over year to $88 million. Service charges on deposits rose 15%, card-based fees gained 21% and financial services and trust revenues climbed to $15 million from $6 million. Pacific Premier added custodial trust, homeowners’ association banking, escrow and 1031 exchange capabilities. Those platforms and broader cross-selling could help support earnings while total loans contract through the planned runoff of transactional credits. Non-interest expenses rose 34.9% year over year to $375 million. Salaries and employee benefits increased 26.5%, occupancy and equipment costs climbed 38.3% and intangible amortization advanced 46.2%. Management expects third-quarter non-interest expenses, excluding core deposit intangible amortization, of $330-$335 million. Banner Corporation (BANR), another western regional bank, also operates a relationship-focused franchise, making expense discipline and funding quality important competitive benchmarks across the region. The provision for credit losses declined 10% year over year to $27 million, while net charge-offs improved to 0.25% of average loans and leases from 0.31%. Those figures point to manageable current loss absorption.The risk is in problem-asset migration. Non-performing assets jumped 51.7% year over year to $273 million, while FinPac charge-offs were $15 million. Commercial real estate migration and changes in economic forecasts could keep credit costs uneven. The earnings beat shows that lower funding costs and broader fee income can offset some pressure from balance-sheet contraction. Rising non-performing assets and a larger expense base, however, leave little room for execution setbacks.Columbia Banking currently carries a Zacks Rank #5 (Strong Sell), signaling unfavorable near-term earnings estimate revisions. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Over the past six months, COLB shares have gained 3.5%, only modestly outperforming the industry's 2.5% rise. The limited relative outperformance indicates that the earnings beat has not been sufficient to meaningfully improve investor sentiment, as concerns over credit quality and expense pressures continue to weigh on the stock's outlook. Price Performance Image Source: Zacks Investment Research Its Value Score of C is neutral, while the Growth Score of D, Momentum Score of D and VGM Score of D indicate weaker growth, price-trend and combined style characteristics.  These ratings temper the benefit of improving revenue drivers and keep expense control and credit quality in focus. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Columbia Banking System, Inc. (COLB) : Free Stock Analysis Report Zions Bancorporation, N.A. (ZION) : Free Stock Analysis Report East West Bancorp, Inc. (EWBC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Record total revenue and net interest income were primarily driven by achieving new record levels in both loans and deposits. Management attributed the 8% year-over-year deposit growth to a successful shift toward core relationship banking, with demand deposits representing over two-thirds of the quarter's increase. A proactive focus on small business checking campaigns and retail-to-commercial conversions fueled a 19% year-over-year increase in non-interest-bearing deposits. Loan growth of 7% year-over-year was characterized by intentional diversification into residential mortgage and C&I sectors to balance the portfolio's CRE concentration. The bank maintained industry-leading efficiency with a 36.7% efficiency ratio, supported by a disciplined approach to operating expenses while investing in growth platforms. Credit quality remained stable with non-performing assets at 29 basis points, reflecting a conservative underwriting culture and disciplined risk management. Full-year loan growth guidance was upgraded to a range of 6%-8% based on strong first-half momentum and a robust Q3 pipeline. Net interest income (NII) growth expectations were raised to 7%-9% for the full year, assuming a flat Fed funds environment through year-end. Management expects the net interest margin to remain relatively stable, with balance sheet growth serving as the primary driver for NII expansion. Full-year expense growth guidance was narrowed to 8%-9%, with compensation costs expected to moderate in the second half of the year. The bank remains committed to a 'third, third, third' loan diversification strategy, aiming to increase residential mortgage and C&I weightings relative to CRE. A temporary inflow of approximately $200 million to $250 million in demand deposits was attributed to one-time tariff refund programs. The bank maintains a significant capital advantage with a Common Equity Tier 1 ratio of 15.4%, positioning it to be 'too strong to fail' regardless of regulatory thresholds. Net charge-offs increased to 19 basis points from 9 basis points in the prior quarter, though management reaffirmed the full-year guidance of 15-25 basis points. Management signaled a neutral but opportunistic stance on capital allocation, weighing share buybacks against potential disciplined M&A in wealth management or Asian-American banking. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects the margin to hold stable in a flat rate environment, despite some 'grinding' lower in loan yields due to mix shifts. Deposit costs were reduced by 49 basis points over the past year against 75 basis points of Fed cuts, aided by pricing discipline and customer loyalty. Approximately $200-$250 million of period-end DDA growth was linked to tariff refunds, most of which exited shortly after quarter-end. The bank faces $13 billion in CD roll-offs in Q3, which are being priced for retention at 3.60% to 3.75% rather than balance expansion. Growth was broad-based across financial services, equipment finance, and manufacturing, offsetting expected paydowns in private equity capital call lines. Management intends to defend the current 34% C&I allocation while continuing to chip away at the 37% CRE concentration through balanced growth. Q2 compensation was elevated due to deferred compensation plans and changes in vacation pay accounting, both of which are expected to moderate in H2. Management views the efficiency ratio as an output of revenue growth, suggesting higher expenses would only occur if revenue outperformed expectations.

Image source: The Motley Fool. Tuesday, July 21, 2026 at 5:00 p.m. ET Director of Investor Relations - Adrienne Atkinson Chairman and Chief Executive Officer - Dominic Ng Chief Financial Officer - Chris Del Moral-Niles Chief Risk Officer - Irene Oh Operator: Please note this event is being recorded. I would now like to turn the conference over to Adrienne Atkinson, Director of Investor Relations. Please go ahead. Adrienne Atkinson: Thank you, operator. Good afternoon, and thank you everyone for joining us to review East West Bancorp's second quarter 2026 financial results. With me are Dominic Ng, Chairman and Chief Executive Officer, Chris Del Moral-Niles, Chief Financial Officer, and Irene Oh, Chief Risk Officer. This call is being recorded and will be available for replay on our investor relations website. The slide deck referenced during this call is available on our investor relations site. Management may make projections or other forward-looking statements, which may differ materially from the actual results due to a number of risks and uncertainties. Management may discuss non-GAAP financial measures. For a more detailed description of the risk factors and a reconciliation of GAAP to non-GAAP financial measures, please refer to our filings with the Securities and Exchange Commission, including the Form 8-K filed today. I will now turn the call over to Dominic. Dominic Ng: Good afternoon and thank you for joining us for our second quarter earnings call. I am pleased to report that East West earned record total revenue, net interest income and non-interest income in the second quarter. These results were driven by new record levels of loans and deposits. End-of-period deposits grew by 8% year-over-year, with strength across all deposit product categories. Notably, demand deposits accounted for more than two-thirds of this quarter's total increase. A continued focus on providing solutions to our customers helped drive a 19% increase in non-interest-bearing deposits year-over-year. End-of-period loans were up 7% year-over-year, with growth in residential mortgage and C&I further increasing the diversification of our portfolio. Non-interest income also grew to a new record in the second quarter and is up over 20% year-over-year. This performance has been driven by consistent execution across all our fee-based businesses. Dominic Ng: In particular, we see continued growth opportunities in wealth management and have been proactive in building out this business. Our credit quality remains strong. Non-performing assets, criticized loans, and net charge-off levels all remained broadly stable and continue to reflect our disciplined approach to risk management. Our capital position remains a key advantage for East West, with a tangible common equity ratio over 10%, on which we generate a 17% return. We believe our financial strength and customer-focused strategy position us to deliver sustainable growth and long-term shareholder value. I will now turn the call over to Chris to provide more details on our second quarter financial performance. Chris? Chris Del Moral-Niles: Thanks, Dominic. Let's start with the deposit slide on page four. Our end-of-period deposits grew by $1.2 billion across our more than 700,000 customer accounts. Demand deposits were up $875 million during the quarter, which accounted for the lion's share of the growth. Average DDA was up 15% year-over-year, reflecting the continued success of our small business checking campaigns and positive flows from tariff refunds across hundreds of our accounts. Our DDA mix grew to 26% of total deposits due to core relationship growth. We continued to shift away from CDs, wholesale, and public funds deposits and further emphasize core DDA. This ongoing shift helped us to support the margin and control our deposit costs during the quarter. Turning to loans on slide five, as Dominic mentioned, we continue to diversify our loan portfolio by emphasizing growth in residential mortgage and C&I. Chris Del Moral-Niles: Residential mortgage was this quarter's standout, with over $300 million of net growth. We remain committed to our conservative underwriting approach as we continue to maintain a 52% average portfolio LTV in our residential book. C&I lending balances were also up over $300 million in the second quarter, with notable growth in lending to financial services, equipment finance and lessors, and manufacturers and wholesalers. Our NDFI balances increased by just $24 million, reflecting expected paydowns in our private equity loan book and consumer credit portfolios, which we had anticipated and relayed last quarter. Overall, C&I loans are up 11% year-over-year, representing over $2 billion of net growth in that period. Chris Del Moral-Niles: Given the 7% level of growth we've seen over the first half of the year and the pipeline that we see looking into Q3, we are updating our guidance for the full year loan growth to now be in the range of 6%-8% by year end. Switching to NII and margin trends on slide six. Quarterly dollar net interest income grew to a record $685 million, reflecting our balance sheet growth and improving mix shift. Our net interest margin came in at 3.43%. Reflecting one less day in the quarter, in line with our guidance, and up notably eight basis points year-over-year. Our positive deposit remixing trends continued during the quarter and allowed us to further reduce our deposit costs, driving a six basis point reduction in our period end deposit cost. Chris Del Moral-Niles: Looking back over the past year, we have decreased interest-bearing deposit costs by 49 basis points against a backdrop of 75 basis points of cuts in the Fed funds target. Given our robust NII growth year to date, we now expect full year NII growth to be in the range of up 7%-9%, an improvement from a prior guidance range of 6%-8%. Moving on to fees on slide seven. Quarterly fee income grew 19% year-over-year to $96 million. While total fee income was down $3 million from Q1, this largely reflects the record wealth management results we reported in the first quarter and a slight downtick in some derivative activity. Nonetheless, loan and deposit-related fees were up 14% year-over-year, reflecting our ability to grow fees as we grow the balance sheet. Chris Del Moral-Niles: We remain focused on driving a healthy level of fee income and further diversifying our revenue streams. We are on track to deliver double-digit year-over-year growth in fee income for 2026. Turning to expenses on slide eight. Total operating non-interest expenses were $268 million for the second quarter. Comp and benefits costs were flat quarter-over-quarter. We expect the level of comp and benefits to actually moderate over the back half of the year. Other expense categories experienced an uptick as we continue to invest in people and platforms to sustain growth. Nonetheless, East West delivered another quarter of industry-leading efficiency. The Q2 efficiency ratio was 36.7%, consistent with the prior periods, and our operating non-interest expense to average asset ratio remained flat at 1.29%. Based on our year-to-date trends, we are narrowing our full-year expense growth guidance range to 8%-9% versus last year. Chris Del Moral-Niles: I will now hand the call over to Irene for comments on credit and capital. Irene Oh: Thank you, Chris. Good afternoon to all on the call. As you can see on slide nine, our asset quality metrics held broadly stable. Quarter-over-quarter, non-performing assets saw a slight uptick of three basis points to 29 basis points as of June 30th, 2026. We recorded net charge-offs of 19 basis points in the second quarter, or $27 million, compared to nine basis points in the first quarter, or $12 million. We are reaffirming our guidance range of 15-25 basis points for the full year. We recorded a provision for credit losses of $33 million in the second quarter, compared with $36 million for the first quarter. Overall, we continue to remain vigilant and proactive in managing our credit risks. Turning to slide 10. Irene Oh: The allowance for credit losses increased $6 million to $842 million, or 1.43% of total loans as of June 30th, reflecting quarter-over-quarter loan growth and portfolio mix shift. We believe we are adequately reserved for the content of our loan portfolio given the current economic outlook. Turning to slide 11. All of East West's regulatory capital ratios remain well in excess of regulatory requirements for well-capitalized institutions and well above regional and national bank averages. East West's common equity Tier 1 capital ratio stands at a robust 15.4%, while the tangible common equity ratio now sits at 10.4%. These capital levels continue to place us amongst the best-capitalized banks in the industry. We currently have $117 million of repurchase authorization that remains available for future buybacks. East West also distributed approximately $111 million to shareholders via quarterly dividends. Irene Oh: East West's third quarter 2026 dividend will be payable on August 17th, 2026, to stockholders of record on August 3rd, 2026. I will now turn the call back to Chris to share our outlook. Chris? Chris Del Moral-Niles: Thank you, Irene. To recap, we have updated four elements for our guidance today, each of which is reflected on slide 12. Number one, we're assuming flat Fed funds through the end of the year. Number two, we're increasing our 2026 full year guidance for end of period loan growth. Number three, we are increasing our full year 2026 net interest income guidance. Number four, we're narrowing the range of our full year expense guidance. With that, I'll now open the call for questions. Operator? Question-and-Answer Session Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then two. In the interest of time, please limit yourself to one question and one follow-up. We'll now pause momentarily to assemble the roster. The first question will come from Jared Shaw with Barclays. Please go ahead. Jared Shaw: Hey, good afternoon. Thanks. I guess maybe just starting with margin. Those great trends in cost of funds. It looks like we saw a little bit of spread compression maybe on the loan side. How should we think about some of those components going forward in this flat rate environment? Is there still an expectation that loan yields grind lower from here? Chris Del Moral-Niles: Well, Jared, we're focused on, first of all, hitting our net interest income targets, and those continue to come along quite nicely. Absolutely, we consider margin dynamics. Overall, we expect our margin to hold relatively stable as we look to a relatively stable Fed funds environment. That having been said, yes, we're seeing some marginal compression or grinding, as you put it, on loans. Part of that was mix driven, and part of that was some one-time accretion benefits that we saw in the first quarter, which were partly offset by some negative items that we saw in the second quarter. That having been said, our general outlook is we're going to hold the margin relatively stable and continue to grind out stronger NII through balance sheet growth over the balance of the year. Chris Del Moral-Niles: There'll be some deposit competition factors that we're very mindful of and very thoughtful about as we think about how we're going to roll over and reprice, particularly our CDs in Q3. So far, our customers have hung with us even as we've been pricing below what might be considered top of market by a decent amount, and a reflection of the customer relationships that we have and our ability to manage those at the branch level. Jared Shaw: Okay. All right. Thanks. I guess on the deposit side, you called out the DDA growth, part of that coming from tariff benefits. What's the expectation of those balances staying through or are customers going to be deploying that windfall? Could you remind us of what the CD roll-off is in the third quarter? Chris Del Moral-Niles: Sure. Let me take those in backwards order. The CD roll-off in the third quarter will be $13 billion. We're proactively pricing that today at 360 on a six-month and 375 on a 12-month, although we'll be looking at those levels as we migrate through the quarter. In all likelihood, we'll be a little bit more competitive later in the quarter. With respect to tariff deposits, yes, we did see inflows. We estimate roughly somewhere between $200 million and $250 million of the period-end balance likely reflected net excess tariff-related inflows. What we saw throughout the quarter is money came in and money went out. We would tell you that of the $200, $250 that was there at quarter end, most of it has already gone back to wherever it needed to go. Chris Del Moral-Niles: On the other hand, there are ongoing tariff deposits coming in still under those refund programs, and they'll likely continue into August. Jared Shaw: Thank you. Operator: The next question will come from Casey Haire with Autonomous Research. Please go ahead. Chris Del Moral-Niles: Afternoon, Casey. Casey, you might be on mute. Casey, going once. All right, next one, operator. Operator: The next question will come from Dave Rochester with Cantor. Please go ahead. Chris Del Moral-Niles: Afternoon, Dave. Dave Rochester: Hey, good afternoon, guys. Just maybe one quick one on expenses on the guide. It looks like you would need to see a decrease from that 2Q level in the back half of the year. Chris, you spoke to moderating comp expense going forward earlier. Is that primarily where you're going to see the decrease to be able to hit that guide? And then what is it that made that comp line elevated this quarter? Chris Del Moral-Niles: Sure. I think you've probably heard two or three of our peer banks talk about deferred comp expenses this quarter. Dave Rochester: Yep. Chris Del Moral-Niles: We too have a deferred comp plan, and that's part of it, obviously. We also had some changes to the way we think about vacation pay around here that influenced that number this quarter. Those two things will moderate out, therefore the comp line certainly in Q3 and likely dampen what would otherwise be growth in Q4. That gives us comfort that overall expense levels remain relatively stable as we move through the back half of the year. Dave Rochester: Great. Just back on the DDA growth. Again, that was outstanding. I know some of this is coming from the tariff benefit. Have you guys changed any of your banker incentives or anything else that could support that going forward as you focus to shift towards more DDA? Chris Del Moral-Niles: I think it's been more a change of messaging and direction and focus. That combination has resulted in, I think, a behavioral shift where people have seen the light on the need to essentially go door to door and make sure that we are evangelizing the East West value proposition as efficiently and effectively as possible. That continues to work really well in our core markets. Dave Rochester: All right. Dominic Ng: I mean, on the retail banking side, we have a focus on getting our retail bankers to go after small business checking accounts. That campaign has been going pretty well. In fact, it did really well last year. It continued to do well this year. Getting them to focus on commercial banking clients. They are small businesses. One small business at a time. That's not to say they are not taking care of retail consumer clients, as that's always their core business. They have continued to bring in retail consumer core customers. Meanwhile, they're also out there in the market, on the street, and then talking to small business one at a time. So far, they've generated some pretty decent momentum. I think that clearly contributes to our growth of non-interest-bearing deposits. Dave Rochester: Sounds good. Thanks, guys. Operator: The next question will come from David Smith with Truist Securities. Please go ahead. Chris Del Moral-Niles: Good afternoon. David Smith: Hey, good afternoon. C&I growth was pretty strong. Can you talk about the range of industries driving this? Are there a few standouts, or is it a pretty diverse set of sectors at work? If you could compare that breadth to what you were also seeing a quarter ago, please. Chris Del Moral-Niles: Sure. I think in the first quarter, by contrast, we saw a very significant uptick in our private equity capital call line activity in particular. We called out at the end of the first quarter that we expected to see that volume pay down, and in fact, that's exactly what we saw in April and into early May. In the second quarter, we saw a pickup in financial services, equipment finance, lessor financing, and as well as manufacturers and wholesale distribution borrowings. All of those sectors contributed to this quarter's growth range, while we continue to obviously have a strong growth as well in residential mortgage. Chris Del Moral-Niles: Those two portfolios together accounted for the larger part of the total growth, and we're certainly delighted to see both the breadth and diversification of the C&I book and the continued conservative quality of the residential mortgage book drive our loan growth. David Smith: Thanks. Just for the loan growth this year, assume that should continue to be predominantly C&I and residential mortgage into the second half? Chris Del Moral-Niles: We continue to be focused on attaining a third, a third, a third diversification at some point in the future. As we look at our balance sheet mix today, we still find ourselves a little underweight in resi mortgage. We're happy to see that be the standout this quarter and expect that we'll have a good quarter in Q3 as well. We obviously are continuously focused on growing our C&I business, and that's there. We're at 34% C&I of total loans right now. We intend to defend that level and hopefully improve on it a bit. Together, those two will chip away at the allocation to CRE, which at 37% is still a little heavier than our long-term vision, but we're very comfortable with our clients in that space. We're very comfortable with our portfolio. Chris Del Moral-Niles: We're very comfortable with the credits, there's no intent for us to shrink those portfolios. It's just that we're growing all of our portfolios in a balanced manner. David Smith: All right. Thank you. Operator: The next question will come from Manan Gosalia with Morgan Stanley. Please go ahead. Chris Del Moral-Niles: Good afternoon. Manan Gosalia: Hey, good afternoon. Maybe on the NIB deposits again. If I understood your comments correctly, just given the tariff-related deposits coming in and going out, is it fair to say that the average deposit number in 2Q is the right number to grow off of as opposed to the end of period number? Chris Del Moral-Niles: That's part of the reason I mentioned the 15% average quarter-over-quarter in my comments. Yes, good catch. Manan Gosalia: Okay. As we think about the jumping off deposit rates. You mentioned that you might take another look at the 6- to 12-month promo deposits that you're offering. As we look at some of these deposit rates on slide six, the 2.76 on interest-bearing deposit cost spot, and then the 2.04 on total deposit costs. I guess, is that 2.76% the right number to jump off of for 3Q and 4Q? Chris Del Moral-Niles: Yeah, that is the end of period deposit cost. That's the right launch point, I think what we're trying to figure out is where do we think that number lines up relative to the competitive landscape as we move forward through the balance of the year. As we sit here today, I think we recognize there are a number of smaller banks and some larger banks that are offering deposit rates well above where we are. That having been said, we continue to see progress and expect to see more progress on our DDA over the balance of the year. Chris Del Moral-Niles: We're not sure we need to stretch for the highest yield, I think we need to focus on making sure we're servicing our customers on a holistic basis across all of their deposit and lending needs, that the relationship we think is worth a few basis points. Manan Gosalia: Got it. Thank you. Operator: The next question will come from David Chiaverini with Jefferies. Please go ahead. Chris Del Moral-Niles: Good afternoon, David. David Chiaverini: Hi. Thanks for taking the questions. On net interest income, how you raised the guide to 7%-9% from 6%-8%, is the main driver of that the DDA deposit growth? Can you talk through that? Chris Del Moral-Niles: Well, I think it's both because we're also raising the loan growth, so the asset growth profile of East West Bank, I think, is coming in a little stronger, in part because overall deposits have come in. Added to that is the fact that some of those deposits have come in non-interest-bearing. So the combination of the fact that deposit growth and loan growth continue to come in perhaps better than we would've expected earlier in the year is a positive, coupled with the fact that we are getting some of those deposits or the fact the majority of those deposits in a lower cost framework allows us to lift the guide. David Chiaverini: Great. Thanks for that. Then on rate sensitivity, you mentioned about stable NIM with a stable Fed funds. How should we think about if we do get a rate hike, the impact on East West? Chris Del Moral-Niles: We are modestly asset sensitive, and we've said in the past that we think a 25 basis point rate hike or rate cut probably costs us about $2 million a month with about a 45-day lag. David Chiaverini: Thank you. Chris Del Moral-Niles: Yep. Operator: The next question will come from Timur Braziler with UBS. Please go ahead. Chris Del Moral-Niles: Tim. Timur Braziler: Hi. Good afternoon. Looking at the CD repricing, I'm assuming you're now starting to get into some of the back end of 2025 production that I think was in the three fours, and now coming in kind of three six, three seven. Is that the right way to think about it? Do CD costs start going up here? I'm just wondering to what extent is the expectation internally that some of the growth in DDA will be a gating factor in maybe containing some of those CD costs going higher? Chris Del Moral-Niles: I think we've been relatively both successful and pleased by our ability to retain the CD book here through the second quarter. The majority of our CD book has in fact been around the six-month maturity. So most of the lower level 340 special type dollars already repriced into 360 or 368, which is where we ran our Lunar New Year CD campaign earlier this year. The baseline for those repricings will be what happens in August and September. That's what we're looking at is given that those were at 368, what's the right level to price to retain those as we sit here, in July looking out to what's going to come rolling in August and September. Chris Del Moral-Niles: We haven't quite decided how we'll land on that, I think we're looking at a variety of maturity structures, in part to spread out that over a longer horizon, in part because the extent the forwards are telling us rates might move forward, it could help pay for it over the longer term. We're pricing for retention, not necessarily for CD balance expansion. Timur Braziler: Got it. Helpful. Thank you. As a follow-up, would love to hear how you are thinking about that $100 billion threshold, both in terms of LFI-related expense and maybe what that means for capital optionality here. Chris Del Moral-Niles: We continue to have a significant level of capital options. We continue to be focused on driving ourselves to be the best operational bank we can be. Making the investments in things like cyber resiliency backup that we think support having a high quality, high performing bank. The emphasis regulatorily wise seems to have shifted to one of safety and soundness. From a safety and soundness perspective, while East West Bank perhaps can't claim to be too big to fail, we aim and strive to be too strong to fail. We've consistently made sure we have the capital and the liquidity profile to support that. That's been the emphasis and focus. Dominic, would you care to add to that? Dominic Ng: Yeah. That sounds good. Timur Braziler: Great. Thank you. Operator: The next question will come from Ebrahim Poonawala with Bank of America. Please go ahead. Ebrahim Poonawala: Hey, good afternoon. Chris Del Moral-Niles: Good afternoon, Ebrahim. Ebrahim Poonawala: Hey, Chris. Maybe just on capital, just maybe revisit that one, given the trajectory you're on, do you see capital levels building? I'm assuming you're okay with it, and in your priorities, you list buybacks below M&A. Is it just that you like buybacks even less than you like M&A, or should we read anything into that? Chris Del Moral-Niles: I think that's a pretty standard lineup for us here. Given that, we haven't done M&A in now going on 12 years, it's clearly not the first burner. Obviously focusing on organic growth is the primary driver. From a total capital perspective, we feel very comfortable, in fact, proud of maintaining a ten plus percent tangible common equity level. From a capital distribution and return profile, we think our current dividend is very competitive, but we'll obviously look to revisit that from time to time. I think the market is one where there will be opportunities for disciplined M&A. In the absence of that, we obviously have been very opportunistic even this year in share repurchases and will remain very opportunistic going forward. Dominic Ng: Okay. Yeah, I'll just add a little bit more. All of us here are professional hired guns at East West Bank, we don't like or dislike M&A or buyback or anything. We love our shareholders. What we do is that, we always weigh each opportunity against the other, we do it on a regular basis. Our instant reflex is that whenever there is a, let's say, an M&A opportunity, we assess, evaluate, then we weigh against, is it better to do this versus just go ahead and then buy back, right? Those are the things that we're constantly evaluating, we are very neutral. There's nothing particular that we either like or dislike. We're just going to do whatever we think is the best option that enhances long-term shareholder value. Dominic Ng: What we also keep in mind is that long-term shareholder value may not come if we don't do well short term. That's what you're seeing, this record earnings after record earnings and a record whatever. It's because the strong performance quarter after quarter is the best validation that we have the ability to sustain long-term growth and long-term shareholder return. From that standpoint, we actually don't take these buybacks or not buybacks lightly. We're just looking at the entire East West Bank situation, and we're also looking at the global landscape in terms of what's happening in this world. We make our decision about what is the appropriate time to execute whatever is best for our shareholders. That's what we do. Ebrahim Poonawala: Got it. Very clear. I guess maybe just on the fee side, good growth over the last several quarters. We have seen fees kind of bounce around in this $90 million range over the last three or four quarters. Just talk to us in terms of the trajectory of that, the growth that we've seen year-over-year. Is that repeatable on fees? Maybe if we can spend some time on the wealth management side. You've talked about this in the past, where are we investing and what should we expect in terms of the growth for that sort of revenue stream and the opportunity there? Thank you. Chris Del Moral-Niles: Sure. Thank you, Abhi, for the question. I would note wealth management fees, if you're looking at page nine of the press release tables, are up 71% year-over-year for the first six months. Clearly, that's been a market opportunity for us. We have leaned into that opportunity with new hiring. We have leaned into that opportunity with investments in the platform and the people and the talent to drive that business further forward. We continue to think that is an area where there'll be additional opportunities for growth as we look through the back half of this year and into next year. We're certainly investing in the people and the platform to do so. Commercial and consumer deposit-related fees have also been growing nicely. They're also up more than 15% year-over-year, six months. Chris Del Moral-Niles: Again, we see that as an area where we have been able to push new solutions. We've been able to offer new solutions to our clients that have resulted in additional uptake, which has been quite positive. FX loan-related fees also up quite nicely. Taken together, all fees up 15% year-over-year gives us comfort that our double-digit growth aspiration is very much attainable for the full year 2026. Ebrahim Poonawala: Got it. Sounds like, Chris, if all else equal, macro remains more or less the same, the runway to deliver sort of double-digit growth, the kind of growth that you're seeing in wealth, that there's still meaningful runway on both fronts, overall fees as well as the growth on the wealth side. Chris Del Moral-Niles: I'm not calling for a sustained 70% year-over-year growth. Ebrahim Poonawala: Got it. Chris Del Moral-Niles: I am calling for continued. I'm hoping that the investments we're making in the people and the platforms will continue to pay dividends to us and our shareholders in the quarters ahead. Ebrahim Poonawala: Understood. Thank you. Operator: The next question will come from Chris McGratty with KBW. Please go ahead. Chris Del Moral-Niles: Good afternoon, Chris. Chris McGratty: Good afternoon, everybody. Chris, maybe on the NII guide up the second quarter in a row, you tightened up the expenses with it. If we are sitting here in six months and the NII growth is perhaps better than even this, does your expense guide move or is that kind of baked? Chris Del Moral-Niles: I guess I would look at it slightly differently. I think we're guiding to NII that we think is in line with the current expectations for the flat curve and the growth that we see ahead. I think we're giving you a guide for expenses that recognizes the current trajectory. To the extent that, for example, in particular fee income lines grew, the marginal efficiency ratio on those lines is slightly higher. As both Ramu and I have said in the past, we see the efficiency ratio as an output, but it's one that we tie to additional revenue growth. To the extent that we are coming in hotter on expenses, as I sit here today, I would think that would only be driven if we came in better on revenue growth. Chris McGratty: Okay, great. Just coming back to the NIBs, it's 26% on an end of period mix and 25% on average. Chris Del Moral-Niles: Up from 24% too. Chris McGratty: Exactly. Just want to make sure that the guide assumes what in terms of mix. Similar mix? Any tweak either way? Chris Del Moral-Niles: Yeah, I think we're assuming today, given a flat rate environment, relatively stable mix to our growth trajectory, but that obviously means growing dollar balances as we continue to grow deposits through the end of the year. Chris McGratty: Okay, great. Thank you. Operator: The next question will come from Matthew Clark with Piper Sandler. Please go ahead. Chris Del Moral-Niles: Afternoon. Matthew Clark: Hey, good afternoon, everyone. Wanted to ask about the uptick in C&I criticized. It looks like your C&I reserve was down a little bit, so probably not something you're too concerned about, but anything within that bucket to call out or anything lumpy, and then also just the uptick in CRE non-performers. Irene Oh: Yeah. Good question. On the C&I criticized loans, we obviously go through a process where we're getting annual financial statements quarterly in some situations, and there were some where there were cash flow reductions, which is why we downgraded those to special mention. With that said, in those same reviews, there are many loans that we upgraded from substandard, and that's why, as you noted, overall, the allowance for C&I, the drivers of those, ultimately the coverage of the amount that we needed was a little bit lower quarter-over-quarter. I think your second question was on CRE in general. Overall, when we look at the CRE non-performing, there were about four loans that moved into non-performing. I would say we've always taken a very conservative view as far as reserving and charge-offs, and some of those were resolved in the quarter or subsequent to the quarter. Irene Oh: We don't believe there's a lot of loss content as of 6/30 on a go-forward basis from those that flowed into non-performing. Matthew Clark: Okay, great. The other one for me, just on M&A, your comment in the deck about disciplined M&A. Can you just remind us of the type of bank or organization you'd ideally want? We've talked about wealth in recent months. I assume you'd want it to have a wealth component in an Asian-American market to some degree, but any updated thoughts on the criteria there? Chris Del Moral-Niles: I think banks generally are sold more so than bought. I think, as Dominic pointed out earlier, when things become known to us, we dive in and we take a good look at evaluating if they make sense. We clearly have been investing on the wealth side of our business. We made significant investments back in an outside asset manager in 2023. We've continued to make investments in people and talent and platforms here more recently. If we could find the right opportunity to invest additional capital behind a wealth platform or a wealth-oriented banking organization, that might be attractive to us, but we just haven't found the right one yet. From an Asian community banking standpoint, I think it's a relatively small universe. Chris Del Moral-Niles: We know all the players and all the players know us. I think we continue to monitor that market, but there's nothing further to comment on. Dominic? Dominic Ng: Can't say too much. Yeah. Matthew Clark: Okay, great. Thank you. Operator: The next question will come from Janet Lee with TD Cowen. Please go ahead. Janet Lee: Good afternoon. Just making sure that I'm understanding the NIM dynamics. Outside of any expected move in the Fed, should loan yields decline from the second quarter level through the rest of 2026 from spread compression or mix shift perspective? Chris Del Moral-Niles: We're not seeing spread compression the way we saw it last year. As I sit here today, it wouldn't be spread compression driven. We are seeing some mix shift elements, and so to the extent that, for example, there's less NDFI, which in some cases can be yieldier and more core C&I we would see a potential shift downward. Again, it depends on exactly where those loans originate from. As we sit here today, we would anticipate the margin remains relatively stable given what we see in the pipeline at this point in time. Janet Lee: Okay. Got it. That assumes that the interest-bearing deposit cost increases from the 2.81% level. Chris Del Moral-Niles: I think that assumes our base level that if there's no Fed funds hike, that our need to be competitive on deposit pricing might step up a tad, but would be offset, we hope, in part, by additional DDA growth as well. Janet Lee: Right. Got it. Just quick last one. You have no problem growing loans and funding them with deposits. Should we expect the size of your securities portfolio to continue grinding higher, consistent with the pace we've seen in the first half of 2026? Chris Del Moral-Niles: I think we look at our securities portfolio as a reservoir to fund growth. At this point in time, it can be added to the extent deposits exceed loan growth, or it can be detracted to fund loan growth to the extent they don't materialize. Given that we've been able to grow deposits even faster than loans, it has been a net contributor year to date. Janet Lee: Got it. Thank you. Operator: The next question will come from Bernard von Gizycki with Deutsche Bank. Please go ahead. Chris Del Moral-Niles: Good afternoon, Bernard. Bernard von Gizycki: Hey, good afternoon. Just maybe on loan growth. It was broad-based during the quarter, and there was some nice growth in CRE, especially in multifamily and construction. Wondering if those trends during the quarter are expected to continue and you'll still see good growth in those particular areas in the second half of the year? Chris Del Moral-Niles: We appreciate the growth that we have seen across all the portfolios. We'll continue to be there for our clients, particularly the longstanding, well-tenured, well-experienced developers that are active in today's market. To the extent there are things we can do for them, we're very supportive. Bernard von Gizycki: Okay. Just as a follow-up, I know the capital deployment priorities were discussed, but just wondering if we could look at the potential Basel III impact versus peers. Unless it's changed, I think previously you mentioned expecting 160 to 180 basis points uptick in capital versus peers who are probably expecting somewhere about 100 basis points increase. Your relative advantage in capital would continue to increase. Would you be more or less inclined or have no impact on lowering your capital levels to similar move down versus some of the larger banks, just on the Basel III impact? Chris Del Moral-Niles: I think we're focused and very happy to manage the bank around a tangible common equity goal and driving top-quartile returns on tangible capital. As we think about those Basel III impacts, they really don't influence our focus on either TCE or the ROTCE. That having been said, it gives us comfort that our strategy of holding low-risk residential mortgage is a great strategy and one that effectively others have taken notice of by reducing what they see as their risk profile, which we had noticed a long time ago. Bernard von Gizycki: Great. Thanks for taking my questions. Chris Del Moral-Niles: Sure. Operator: This concludes our question and answer session. I would like to turn the conference back over to Dominic Ng for any closing remarks. Dominic Ng: Thank you. Well, to conclude, as always, our results are a reflection of the dedication and discipline of our team, and I want to thank them for their continued contributions. We remain focused on creating long-term value, and we're looking forward to speaking with you again next quarter. Thank you. Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in East West Bancorp, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and East West Bancorp wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $364,562!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,247,668!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of July 21, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. East West Bancorp (EWBC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

East West Bancorp, Inc.’s EWBC  second-quarter 2026 earnings per share of $2.63 beat the Zacks Consensus Estimate of $2.61. Moreover, the bottom line increased 17.4% 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 to record levels. However, higher non-interest expenses acted as a spoilsport.Net income was $363.7 million, up from $310.3 million in the prior-year quarter. Quarterly net revenues were $791.1 million, up 12.5% year over year. Moreover, the top line beat the Zacks Consensus Estimate of $785.9 million.NII amounted to $684.7 million, which increased 11% year over year. Further, the net interest margin (NIM) expanded eight basis points (bps) to 3.43%. We expected NII and NIM to be $697 million and 3.49%, respectively.Total non-interest income was $106.5 million, up 23.6% year over year. The rise was driven by an increase in almost all fee income components, except for customer derivative income. In the reported quarter, the company recorded other investment losses against a gain in the year-ago quarter. We estimated non-interest income to be $87.4 million.Non-interest expenses totaled $290.6 million, up 13.5% from the prior-year quarter’s level. The rise was due to an increase in all cost components except deposit account expense. Our estimate for the same was $284.3 million.The efficiency ratio was 36.73%, up from 36.41% in the prior-year quarter. A rise in the efficiency ratio indicates a deterioration in profitability.As of June 30, 2026, net loans held for investment (HFI) were a record $58.1 billion, reflecting a 1.5% rise sequentially. Further, total deposits rose 1.7% from the previous quarter to a record $70.1 billion. Annualized quarterly net charge-offs were 0.19% of average loans HFI, up eight bps from the prior-year quarter’s level. Non-performing assets totaled $247 million, up 43.9% from the prior-year quarter.However, provision for credit losses was $33 million, down from $45 million in the prior-year quarter. Our estimate for the same was $36 million. As of June 30, 2026, the common equity Tier 1 (CET1) capital ratio was 15.44%, up from 14.51% as of June 30, 2025. The total risk-based capital ratio was 16.75%, up from 15.82% a year ago.Return on average assets was 1.75%, up from 1.62% in the prior-year quarter. Return on average tangible equity was 16.88%, up from 16.39%. In the reported quarter, East West Bancorp did not repurchase any shares. East West Bancorp is well-poised for organic growth with robust loan improvement, solid deposit balances and diversified fee income streams. However, a rise in expenses and a weak asset quality amid the tough operating backdrop are likely to hurt the bottom line. 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. Commerce Bancshares Inc.’s CBSH second-quarter 2026 earnings of $1.10 per share surpassed the Zacks Consensus Estimate of $1.04. The bottom line reflected a rise of 1% from the prior-year quarter.CBSH’s results primarily benefited from higher NII and a rise in non-interest income. The sequential rise in loan balances acted as a tailwind. However, higher expenses and provisions hurt CBSH’s results to some extent.F.N.B. Corporation FNB reported second-quarter 2026 earnings of 42 cents per share, which matched the Zacks Consensus Estimate. The bottom line jumped 16.7% year over year.FNB’s results primarily benefited from higher NII, a rise in non-interest income and lower provisions. Higher average loans and deposits were other positives. However, higher non-interest expenses hurt the results to some extent. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report East West Bancorp, Inc. (EWBC) : Free Stock Analysis Report Commerce Bancshares, Inc. (CBSH) : Free Stock Analysis Report F.N.B. Corporation (FNB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Revenue: Record levels achieved in Q2 2026. Net Interest Income: Record $685 million, up 8 basis points year over year. Non-Interest Income: Up over 20% year over year, reaching a new record. Deposits: End-of-period deposits grew by 8% year over year; demand deposits increased by $875 million in Q2. Loans: End-of-period loans up 7% year over year; residential mortgage and C&I loans each grew by over $300 million in Q2. Net Interest Margin: 3.43%, up 8 basis points year over year. Fee Income: Grew 19% year over year to $96 million. Operating Non-Interest Expenses: $268 million for Q2 2026. Efficiency Ratio: 36.7% for Q2 2026. Net Charge-Offs: 19 basis points, or $27 million, in Q2 2026. Provision for Credit Losses: $33 million in Q2 2026. Allowance for Credit Losses: $842 million, or 1.43% of total loans as of June 30, 2026. Common Equity Tier 1 Capital Ratio: 15.4%. Tangible Common Equity Ratio: 10.4%. Dividend: $111 million distributed to shareholders; next dividend payable on August 17, 2026. Warning! GuruFocus has detected 7 Warning Sign with EWBC. Is EWBC fairly valued? Test your thesis with our free DCF calculator. Release Date: July 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. East West Bancorp Inc (NASDAQ:EWBC) reported record total revenue, net interest income, and non-interest income for the second quarter of 2026. End-of-period deposits grew by 8% year over year, with demand deposits accounting for more than two-thirds of the increase. The company achieved a 19% increase in non-interest-bearing deposits year over year. Credit quality remains strong with stable non-performing assets, criticized loans, and net charge-off levels. East West Bancorp Inc (NASDAQ:EWBC) has a robust capital position with a tangible common equity ratio over 10% and a 17% return on it. There was a slight uptick in non-performing assets, increasing by 3 basis points to 29 basis points as of June 30, 2026. Net charge-offs increased to 19 basis points in the second quarter, compared to 9 basis points in the first quarter. The company recorded a provision for credit losses of $33 million in the second quarter, slightly down from $36 million in the first quarter. There is some marginal compression on loan yields, partly due to mix-driven factors and one-time accretion benefits. The company faces competition in deposit pricing, particularly with CDs, which may impact future deposit costs. Q: How should we think about loan yields and margin trends in a flat rate environment? A: Christopher Del Moral-Niles, CFO, explained that while there is some marginal compression on loan yields due to mix and one-time accretion benefits, the overall expectation is for the net interest margin to remain relatively stable. The focus is on maintaining strong net interest income through balance sheet growth, despite potential deposit competition. Q: What is the expectation for deposit balances, particularly regarding DDA growth and CD roll-offs? A: Christopher Del Moral-Niles, CFO, noted that the CD roll-off in the third quarter will be $13 billion, with proactive pricing strategies in place. Regarding DDA growth, some balances were influenced by tariff-related inflows, which are expected to continue into August, but most of the excess has already been deployed. Q: Can you discuss the expense guidance and factors influencing compensation costs? A: Christopher Del Moral-Niles, CFO, mentioned that deferred compensation expenses and changes in vacation pay influenced the current quarter's compensation costs. These factors are expected to moderate in the coming quarters, allowing for stable expense levels in the second half of the year. Q: What industries are driving C&I loan growth, and how does this compare to previous quarters? A: Christopher Del Moral-Niles, CFO, highlighted growth in financial services, equipment finance, lessor financing, and manufacturers and wholesale distribution. This diversification, along with strong residential mortgage growth, contributed to the quarter's loan growth. Q: How does the company view capital deployment priorities, particularly regarding M&A and buybacks? A: Christopher Del Moral-Niles, CFO, stated that while M&A is not the primary focus, the company remains opportunistic about share repurchases. The emphasis is on organic growth, maintaining a strong capital position, and evaluating opportunities that enhance long-term shareholder value. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

East West Bancorp (EWBC) came out with quarterly earnings of $2.63 per share, beating the Zacks Consensus Estimate of $2.61 per share. This compares to earnings of $2.28 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +0.77%. A quarter ago, it was expected that this bank holding company would post earnings of $2.46 per share when it actually produced earnings of $2.57, delivering a surprise of +4.47%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. East West Bancorp, which belongs to the Zacks Banks - West industry, posted revenues of $791.14 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.66%. This compares to year-ago revenues of $703.25 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. East West Bancorp shares have added about 19.2% since the beginning of the year versus the S&P 500's gain of 8.7%. While East West Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for East West Bancorp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.66 on $802.4 million in revenues for the coming quarter and $10.56 on $3.18 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Central Pacific Financial (CPF), is yet to report results for the quarter ended June 2026. The results are expected to be released on July 24. This operator of Central Pacific Bank is expected to post quarterly earnings of $0.78 per share in its upcoming report, which represents a year-over-year change of +16.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Central Pacific Financial's revenues are expected to be $75.8 million, up 4.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report East West Bancorp, Inc. (EWBC) : Free Stock Analysis Report CPB Inc. (CPF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended June 2026, East West Bancorp (EWBC) reported revenue of $791.14 million, up 12.5% over the same period last year. EPS came in at $2.63, compared to $2.28 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $785.94 million, representing a surprise of +0.66%. The company delivered an EPS surprise of +0.77%, with the consensus EPS estimate being $2.61. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how East West Bancorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net interest margin: 3.4% compared to the 3.5% average estimate based on four analysts. Efficiency ratio: 36.7% versus the four-analyst average estimate of 35.4%. Average Balance - Total interest-earning assets: $80.09 billion compared to the $79.83 billion average estimate based on three analysts. Annualized quarterly net charge-offs to average loans HFI: 0.2% compared to the 0.2% average estimate based on three analysts. Total nonperforming assets: $246.96 million compared to the $221.84 million average estimate based on two analysts. Leverage ratio: 11% versus the two-analyst average estimate of 11%. Tier 1 capital ratio: 15.4% versus the two-analyst average estimate of 15.2%. Total capital ratio: 16.8% compared to the 16.5% average estimate based on two analysts. Total nonaccrual loans: $204.96 million compared to the $186.16 million average estimate based on two analysts. Total Noninterest Income: $106.49 million versus the four-analyst average estimate of $98.34 million. Net Interest Income: $684.65 million versus the four-analyst average estimate of $687.82 million. Commercial and consumer deposit-related fees: $31.62 million compared to the $30.01 million average estimate based on three analysts. View all Key Company Metrics for East West Bancorp here>>> Shares of East West Bancorp have returned +3.7% over the past month versus the Zacks S&P 500 composite's -0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report East West Bancorp, Inc. (EWBC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

PASADENA, Calif., July 21, 2026--(BUSINESS WIRE)--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 Earnings Press Release and Financial Tables East West’s second quarter 2026 earnings press release with accompanying financial tables can be accessed at www.eastwestbank.com/investors. Conference Call East 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 www.eastwestbank.com/investors. About East West East 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 www.eastwestbank.com. Forward-Looking Statements 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260721942986/en/ Contacts For Investor Inquiries, Contact: Adrienne AtkinsonDirector of Investor Relations and Corporate DevelopmentT: (626) 788-7536E: [email protected] For Media Inquiries, Contact: Angie TangDirector of Corporate CommunicationsT: (626) 768-6853E: [email protected]

Interested in East West Bancorp, Inc.? Here are five stocks we like better. East West Bancorp posted record Q2 2026 revenue, net interest income, and fee income, driven by growth in loans and deposits. Management also raised full-year net interest income guidance to 7% to 9% from 6% to 8%. Deposit growth was led by core demand accounts, with end-of-period deposits up 8% year over year and non-interest-bearing deposits up 19%. The bank said it is intentionally shifting away from CDs and wholesale funding to support margins and lower funding costs. Loan growth remained strong and credit quality stayed solid, with residential mortgage and C&I lending each adding more than $300 million in the quarter. East West also lifted its full-year loan growth guidance to 6% to 8% while keeping asset quality metrics and capital ratios well above regulatory minimums. MarketBeat Week in Review – 04/06 - 04/10 East West Bancorp (NASDAQ:EWBC) reported record second-quarter 2026 revenue, net interest income and non-interest income, supported by new highs in loans and deposits, executives said on the company’s earnings call. Chairman and Chief Executive Officer Dominic Ng said end-of-period deposits grew 8% year over year, with strength across all deposit product categories. He said demand deposits accounted for more than two-thirds of the quarter’s total increase, while non-interest-bearing deposits rose 19% from a year earlier. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks East West Bancorp: Confronting the Risks With Record Results “A continued focus on providing solutions to our customers helped drive” the growth in non-interest-bearing deposits, Ng said. End-of-period loans increased 7% year over year, with growth in residential mortgage and commercial-and-industrial lending helping further diversify the loan portfolio, Ng said. He added that credit quality remained strong, with non-performing assets, criticized loans and net charge-off levels “broadly stable.” → Cybersecurity Stocks Are Holding Up as the AI Trade Starts to Crack Chief Financial Officer Chris Del Moral-Niles said end-of-period deposits rose by $1.2 billion across more than 700,000 customer accounts during the quarter. Demand deposits increased $875 million, representing most of the growth. Average demand deposit accounts were up 15% year over year. Del Moral-Niles attributed the increase to small business checking campaigns and positive flows from tariff refunds across hundreds of accounts. He said East West’s demand deposit mix rose to 26% of total deposits as the company emphasized core relationship growth and moved away from certificates of deposit, wholesale deposits and public funds deposits. → Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit That shift helped support the net interest margin and control deposit costs, he said. Period-end deposit costs declined by six basis points in the quarter. Over the past year, interest-bearing deposit costs fell 49 basis points against a backdrop of 75 basis points of cuts in the federal funds target rate. During the question-and-answer session, Del Moral-Niles estimated that roughly $200 million to $250 million of period-end balances reflected net excess tariff-related inflows. He said most of that amount had already moved out after quarter-end, though additional tariff deposits were still expected under refund programs into August. Asked about upcoming CD maturities, Del Moral-Niles said $13 billion of CDs would roll off in the third quarter. He said the bank was proactively pricing at 3.60% for six-month CDs and 3.75% for 12-month CDs, while continuing to evaluate pricing as the quarter progresses. East West reported more than $300 million of net growth in residential mortgage loans during the quarter. Del Moral-Niles said the company maintained a conservative underwriting approach, with an average portfolio loan-to-value ratio of 52% in its residential mortgage book. C&I loan balances also increased by more than $300 million in the second quarter. Del Moral-Niles cited growth in lending to financial services, equipment finance and lessors, and manufacturers and wholesalers. Non-depository financial institution balances rose by only $24 million, reflecting expected paydowns in private equity loans and consumer credit portfolios. Overall, C&I loans were up 11% year over year, representing more than $2 billion of net growth over that period. Given 7% loan growth in the first half of 2026 and the pipeline heading into the third quarter, East West raised its full-year end-of-period loan growth guidance to a range of 6% to 8%. In response to an analyst question, Del Moral-Niles said the bank remains focused on moving toward a portfolio mix of roughly one-third C&I, one-third residential mortgage and one-third commercial real estate over time. He said C&I represented 34% of total loans, while commercial real estate stood at 37%, above the company’s long-term vision but still a portfolio with which management is “very comfortable.” Quarterly net interest income rose to a record $685 million. East West’s net interest margin was 3.43%, down in line with the effect of one fewer day in the quarter but up eight basis points from a year earlier. Del Moral-Niles said the company now expects full-year net interest income growth of 7% to 9%, up from its prior guidance of 6% to 8%. The updated outlook assumes a flat federal funds rate through the end of the year. Asked about margin trends in a flat rate environment, Del Moral-Niles said management expects the margin to remain “relatively stable.” He acknowledged some pressure on loan yields from mix and prior-quarter one-time items but said the company expects to drive stronger net interest income through balance sheet growth. On rate sensitivity, Del Moral-Niles said East West is “modestly asset sensitive.” He said a 25-basis-point rate hike or cut would likely affect net interest income by about $2 million per month, with roughly a 45-day lag. Quarterly fee income increased 19% year over year to $96 million. Del Moral-Niles said total fee income declined by $3 million from the first quarter, largely reflecting record wealth management results in the prior period and a slight decline in some derivatives activity. Loan- and deposit-related fees rose 14% year over year. Del Moral-Niles said East West remains on track to deliver double-digit year-over-year fee income growth in 2026. He also highlighted wealth management as a growth area, noting during the Q&A that wealth management fees were up 71% year over year for the first six months of the year, according to the company’s press release tables. Total operating non-interest expenses were $268 million in the second quarter. Compensation and benefits costs were flat sequentially, and Del Moral-Niles said those costs are expected to moderate in the second half of the year. He cited deferred compensation expenses and changes related to vacation pay as factors affecting the quarter’s compensation line. East West reported a second-quarter efficiency ratio of 36.7%, consistent with prior periods, and an operating non-interest expense to average asset ratio of 1.29%. The company narrowed its full-year expense growth guidance to 8% to 9% versus last year. Chief Risk Officer Irene Oh said asset quality metrics remained broadly stable. Non-performing assets rose slightly by three basis points quarter over quarter to 29 basis points as of June 30, 2026. Net charge-offs were 19 basis points, or $27 million, compared with nine basis points, or $12 million, in the first quarter. East West reaffirmed its full-year net charge-off guidance of 15 to 25 basis points. The company recorded a provision for credit losses of $33 million, compared with $36 million in the first quarter. The allowance for credit losses increased $6 million to $842 million, or 1.43% of total loans, reflecting loan growth and portfolio mix shift. Oh said all regulatory capital ratios remained well above requirements for well-capitalized institutions. East West’s common equity Tier 1 capital ratio was 15.4%, and its tangible common equity ratio was 10.4%. The company had $117 million of repurchase authorization remaining and distributed about $111 million to shareholders through quarterly dividends. Ng closed the call by thanking employees and said the company remains focused on creating long-term value. East West Bancorp, Inc is a bank holding company and the parent of East West Bank, one of the largest independent banks headquartered in Southern California. As a full-service commercial bank, it provides a broad range of financial products and services to business and individual customers, including commercial and residential real estate lending, working capital lines of credit, trade finance, and deposit and treasury management services. The company caters to both large and middle-market businesses, leveraging its expertise to serve clients engaged in cross-border trade and investment between the United States and Greater China. Founded in Los Angeles in the early 1970s, East West Bank has grown steadily through organic expansion and strategic branch openings. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "East West Bancorp Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.