Local Banking Giant Shows Resilience With Strong Third Quarter

East West Bancorp, parent company of East West Bank headquartered at 135 N. Los Robles Ave. in downtown Pasadena, reported third-quarter net income of $299 million, marking a 4% increase from the previous quarter.

The bank posted diluted earnings per share of $2.14 for the quarter ending September 30, 2024, up from $2.06 in the second quarter. Total assets grew to $74.5 billion, representing a 3% increase from the previous quarter and a 9% rise year-over-year. Book value per share grew 6% quarter-over-quarter and 19% year-over-year.

“East West reported another strong quarter of balanced growth in support of our customers,” said Chairman and Chief Executive Officer Dominic Ng. “We continued to grow consumer and business banking deposits while further diversifying our loan portfolio by emphasizing residential and C&I lending.”

The bank’s efficiency ratio improved to 34.38% from 37.02% in the previous quarter. Total operating noninterest expense remained stable at $221 million. Fee income reached $81 million, up 6% from the previous quarter, with wealth management fees showing notable growth.

Total deposits increased to $61.7 billion, up 3% from the previous quarter, reflecting growth in both consumer and commercial deposits. Total loans reached $53.3 billion, showing a modest increase of $500 million from June 2024.

Net interest income totaled $573 million in the third quarter, a 4% increase from $553 million in the second quarter. The bank maintained strong capital levels, with a common equity tier 1 capital ratio of 14.08%, well above regulatory requirements.

Credit quality remained stable, with nonperforming assets at $195 million, representing 0.26% of total assets, a slight improvement from 0.27% in the previous quarter.

Operating over 110 locations across the United States and Asia, East West Bank serves markets in California, Georgia, Illinois, Massachusetts, Nevada, New York, Texas, and Washington.

The bank’s Board of Directors declared a fourth-quarter 2024 common stock cash dividend of $0.55 per share, payable on November 15, to shareholders of record as of November 4.