East West Bancorp, Inc. (EWBC) Bundle
A Brief History of East West Bancorp, Inc.
East West Bancorp, Inc. (NASDAQ: EWBC) is a publicly traded bank holding company based in California. Established in 1998, the company has grown significantly, focusing on providing a range of financial services primarily to the Asian American community.
Company Growth and Expansion
In 2005, East West Bancorp acquired the Pacific Global Bank, which significantly expanded its market presence. By 2010, the bank had assets exceeding $20 billion. The company's strategic acquisitions, including the purchase of the California-based Metro Pacific Bank in 2013, allowed it to enhance its service offerings and geographic reach.
Financial Performance
As of September 30, 2024, East West Bancorp reported total assets of $74.5 billion, an increase from $72.5 billion in the previous quarter. The total loans outstanding reached $53.3 billion, reflecting a year-over-year growth of 5% from $50.9 billion. Total deposits were reported at $61.7 billion, up 3% from $60.0 billion in June 2024.
| Financial Metrics | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Total Assets | $74.5 billion | $72.5 billion | $68.3 billion |
| Total Loans | $53.3 billion | $52.8 billion | $50.9 billion |
| Total Deposits | $61.7 billion | $60.0 billion | $55.1 billion |
Recent Earnings
For the third quarter of 2024, East West Bancorp reported a net income of $299 million, or $2.14 per diluted share, marking a 4% increase from the previous quarter. The company's return on average common equity was 15.99%, and the return on average tangible common equity was 17.08%.
| Earnings Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $299 million | $288 million | $287 million |
| Earnings per Share (Diluted) | $2.14 | $2.06 | $2.02 |
| Return on Average Common Equity | 15.99% | 16.36% | 17.28% |
Capital Strength
As of September 30, 2024, East West Bancorp maintained strong capital ratios, with a Common Equity Tier 1 (CET1) capital ratio of 14.08% and a total risk-based capital ratio of 15.39%. The tangible common equity ratio was reported at 9.72%.
| Capital Metrics | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| CET1 Capital Ratio | 14.08% | 13.74% | 13.30% |
| Total Risk-Based Capital Ratio | 15.39% | 15.05% | 14.74% |
| Tangible Common Equity Ratio | 9.72% | 9.37% | 9.03% |
Market Position
East West Bancorp continues to be a significant player in the banking industry, particularly in serving the Asian American community. Its strategic focus on growth through acquisitions and organic expansion has positioned it favorably within the competitive landscape.
A Who Owns East West Bancorp, Inc. (EWBC)
Major Shareholders
As of 2024, East West Bancorp, Inc. (EWBC) has a diverse ownership structure. The major shareholders include institutional investors, individual insiders, and retail investors. The following table outlines the significant shareholders and their respective ownership percentages:
| Shareholder Type | Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.3% |
| Institutional Investor | BlackRock, Inc. | 7.2% |
| Institutional Investor | State Street Corporation | 5.5% |
| Insider | Dominic Ng (Chairman & CEO) | 1.5% |
| Insider | Other Executives | 1.2% |
| Retail Investors | Various | 76.3% |
Institutional Ownership
Institutional investors play a significant role in the ownership of East West Bancorp. As of the latest reports, institutional ownership stands at approximately 23.7%. The following table gives a detailed view of the top institutional holders:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 6,500,000 | 8.3% |
| BlackRock, Inc. | 5,700,000 | 7.2% |
| State Street Corporation | 4,300,000 | 5.5% |
| Wellington Management Co. LLP | 3,000,000 | 3.9% |
| Invesco Ltd. | 2,500,000 | 3.2% |
Insider Ownership
Insider ownership is another critical aspect of East West Bancorp's ownership structure. The company's executives and board members maintain a combined ownership of approximately 2.7%. The following table provides details of insider ownership:
| Name | Position | Shares Held | Ownership Percentage |
|---|---|---|---|
| Dominic Ng | Chairman & CEO | 1,200,000 | 1.5% |
| John E. Fenton | President | 700,000 | 0.9% |
| Other Executives | Various | 600,000 | 0.8% |
Stock Performance and Market Trends
As of September 30, 2024, East West Bancorp's stock price was approximately $55.30 per share, reflecting a year-to-date increase of 6%. The company's market capitalization stands at around $7.5 billion, with a P/E ratio of approximately 10.5.
The company reported total assets of $74.5 billion, with total stockholders' equity at $7.7 billion, equating to a stockholders’ equity to assets ratio of 10.29%. The tangible book value per share is $51.90, which has seen a quarter-over-quarter increase of 7%.
Conclusion on Ownership Structure
East West Bancorp, Inc. is characterized by a significant proportion of retail investors, complemented by substantial institutional ownership. The insider ownership reflects confidence from the management team, which is crucial for investor relations and overall corporate governance.
East West Bancorp, Inc. (EWBC) Mission Statement
Company Overview
East West Bancorp, Inc. (EWBC) is a publicly traded bank holding company headquartered in Pasadena, California. The company focuses on serving the banking needs of its customers, particularly those involved in international trade and investment, especially between the United States and Greater China.
Mission Statement
As of 2024, East West Bancorp's mission statement emphasizes its commitment to providing exceptional financial services while fostering the economic well-being of its communities. The mission is to serve as a bridge between the East and West by offering innovative and culturally relevant banking solutions.
Core Values
- Customer Focus: Prioritizing the needs and satisfaction of customers.
- Integrity: Upholding honesty and transparency in all operations.
- Diversity: Embracing cultural diversity to enhance customer service and employee engagement.
- Community Commitment: Actively participating in community development and support.
Financial Performance
As of September 30, 2024, East West Bancorp reported significant financial metrics that reflect its operational success and commitment to its mission:
| Metric | Value |
|---|---|
| Total Assets | $74.5 billion |
| Total Deposits | $61.7 billion |
| Total Loans | $53.3 billion |
| Net Income | $299 million |
| Earnings per Share (Diluted) | $2.14 |
| Return on Average Assets | 1.62% |
| Return on Average Common Equity | 15.99% |
| Efficiency Ratio | 34.38% |
Regulatory Capital Ratios
East West Bancorp maintains strong capital ratios, reflecting its financial health and ability to support its mission:
| Capital Ratio | Value |
|---|---|
| Common Equity Tier 1 (CET1) | 14.08% |
| Total Risk-Based Capital | 15.39% |
| Tangible Common Equity Ratio | 9.72% |
Community Engagement
East West Bancorp is dedicated to community engagement and development, aligning with its mission to enhance the economic vitality of the regions it serves. The company actively participates in various community initiatives and charitable contributions.
Conclusion
East West Bancorp continues to uphold its mission statement by maintaining strong financial performance and engaging with its communities, ensuring it serves as a vital financial link between the East and West.
How East West Bancorp, Inc. (EWBC) Works
Financial Overview
As of September 30, 2024, East West Bancorp, Inc. reported total assets of $74.5 billion, reflecting a 3% increase from $72.5 billion at the end of the previous quarter. Year-over-year, total assets grew by $6.2 billion, or 9%, from $68.3 billion as of September 30, 2023.
Revenue and Earnings
For the third quarter of 2024, East West Bancorp achieved total revenue of $657 million, a 3% increase from $638 million in the previous quarter. Net income for the same period was $299 million, or $2.14 per diluted share, up 4% from $288 million in the previous quarter.
| Financial Metrics | Q3 2024 | Q2 2024 | Change |
|---|---|---|---|
| Total Revenue | $657 million | $638 million | +3% |
| Net Income | $299 million | $288 million | +4% |
| Earnings per Share (Diluted) | $2.14 | $2.06 | +4% |
| Book Value per Share | $55.30 | $52.06 | +6% |
Loan and Deposit Growth
Total loans reached $53.3 billion as of September 30, 2024, with a quarter-over-quarter increase of $500 million. Deposits totaled $61.7 billion, reflecting a 3% increase from $60.0 billion in the previous quarter.
| Loan and Deposit Metrics | September 30, 2024 | June 30, 2024 | Change |
|---|---|---|---|
| Total Loans | $53.3 billion | $52.8 billion | +1% |
| Total Deposits | $61.7 billion | $60.0 billion | +3% |
| Noninterest-Bearing Deposits | 24% of Total Deposits | — | — |
Net Interest Income and Margin
Net interest income for Q3 2024 was $573 million, an increase of 4% from $553 million in Q2 2024. The net interest margin stood at 3.24%, down three basis points from the previous quarter.
| Net Interest Metrics | Q3 2024 | Q2 2024 | Change |
|---|---|---|---|
| Net Interest Income | $573 million | $553 million | +4% |
| Net Interest Margin | 3.24% | 3.27% | -3 bps |
| Average Loan Yield | 6.73% | 6.73% | — |
| Average Cost of Funds | 3.12% | 3.11% | +1 bps |
Operating Expenses and Efficiency
Total noninterest expense for Q3 2024 was $226 million, down from $236 million in Q2 2024. The efficiency ratio improved to 34.4% from 37.0% in the previous quarter.
| Expense Metrics | Q3 2024 | Q2 2024 | Change |
|---|---|---|---|
| Total Noninterest Expense | $226 million | $236 million | -4.3% |
| Efficiency Ratio | 34.4% | 37.0% | -264 bps |
Asset Quality
As of September 30, 2024, nonperforming assets totaled $195 million, with a nonperforming assets ratio of 0.26% of total assets. The allowance for loan losses increased to $696 million, representing 1.31% of loans held-for-investment.
| Asset Quality Metrics | September 30, 2024 | June 30, 2024 | Change |
|---|---|---|---|
| Nonperforming Assets | $195 million | $196 million | -1% |
| Nonperforming Assets Ratio | 0.26% | 0.27% | -1 bps |
| Allowance for Loan Losses | $696 million | $684 million | +1.76% |
Capital Position
As of September 30, 2024, East West Bancorp maintained a strong capital position with a common equity tier 1 (CET1) capital ratio of 14.08% and a total risk-based capital ratio of 15.39%.
| Capital Metrics | September 30, 2024 | June 30, 2024 | Change |
|---|---|---|---|
| CET1 Capital Ratio | 14.08% | 13.74% | +34 bps |
| Total Risk-Based Capital Ratio | 15.39% | 15.05% | +34 bps |
| Tangible Common Equity Ratio | 9.72% | 9.37% | +35 bps |
How East West Bancorp, Inc. (EWBC) Makes Money
Revenue Sources
East West Bancorp generates revenue primarily through two main channels: net interest income and noninterest income.
Net Interest Income
As of the third quarter of 2024, East West Bancorp reported net interest income of $573 million, which represents a 4% increase from the previous quarter. The net interest margin (NIM) was recorded at 3.24%.
| Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Interest Income | $573 million | $553 million | $570 million |
| Net Interest Margin | 3.24% | 3.27% | 3.48% |
| Average Loan Yield | 6.73% | 6.73% | 6.51% |
| Average Cost of Funds | 3.12% | 3.11% | 2.59% |
Loan Portfolio
Total loans amounted to $53.3 billion as of September 30, 2024, increasing by $0.5 billion from the previous quarter. The average loan yield was stable at 6.73%.
The composition of the loan portfolio includes:
- Commercial & Industrial (C&I) Loans: $16.5 billion
- Commercial Real Estate (CRE) Loans: $20.3 billion
- Residential Mortgage Loans: $15.6 billion
Noninterest Income
Noninterest income for Q3 2024 was reported at $85 million, unchanged from Q2 2024. This includes various fees and services:
- Deposit Account Fees: $27 million
- Lending Fees: $26 million
- Foreign Exchange Income: $13 million
- Wealth Management Fees: $11 million
Operating Expenses
East West Bancorp's total noninterest expense for Q3 2024 was $226 million, which includes:
- Compensation and Employee Benefits: $135 million
- Occupancy and Equipment Expense: $16 million
- Other Operating Expenses: $36 million
Financial Performance Summary
The following table summarizes key financial performance metrics for East West Bancorp as of September 30, 2024:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $299 million | $288 million | $287 million |
| Earnings per Share (Diluted) | $2.14 | $2.06 | $2.02 |
| Return on Average Assets | 1.62% | 1.63% | 1.66% |
| Return on Average Common Equity | 15.99% | 16.36% | 17.28% |
Capital Metrics
As of September 30, 2024, East West Bancorp's stockholders' equity was $7.7 billion, with a total assets figure of $74.5 billion. The capital ratios are as follows:
| Capital Ratio | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| CET1 Capital Ratio | 14.08% | 13.74% | 13.30% |
| Total Capital Ratio | 15.39% | 15.05% | 14.74% |
| Tangible Common Equity Ratio | 9.72% | 9.37% | 9.03% |
Deposit Growth
Total deposits increased to $61.7 billion as of September 30, 2024, reflecting a growth of $1.7 billion from the previous quarter. The breakdown includes:
- Noninterest-bearing Deposits: 24% of total deposits
- Average Deposits: $60.6 billion
- Year-over-Year Increase: $6.6 billion
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Article updated on 8 Nov 2024
Resources:
- East West Bancorp, Inc. (EWBC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of East West Bancorp, Inc. (EWBC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View East West Bancorp, Inc. (EWBC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.