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East West Bancorp Q1 Earnings Top Estimates on Higher NII & Fee Income
East West Bancorp, Inc.’s EWBC 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 BancorpEWBC-- 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, EWBCEWBC-- 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 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 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.
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