PASADENA, Calif. - East West Bancorp , Inc. (NASDAQ:EWBC), the parent company of East West Bank, delivered a robust performance in the first quarter of 2024, with adjusted earnings per share (EPS) of $2.08, surpassing analysts' expectations of $1.97.
The company's revenue also exceeded forecasts, reaching $644 million against a consensus estimate of $637.08 million. This positive earnings and revenue beat has propelled the company's shares up by 4%.
The bank's Chairman and CEO, Dominic Ng, attributed the strong quarter to a $2.5 billion increase in deposits, reaching a new record level, and a strategic optimization of funding that supported prudent asset growth. The bank's ability to grow its adjusted diluted EPS by 3% and tangible book value per share by 2% quarter-over-quarter was highlighted as a testament to its diversified business model, conservatively managed balance sheet, and industry-leading profitability.
East West Bancorp's financial highlights for the first quarter of 2024 include a net income of $285 million and a return on average common equity of 16%. The bank's total assets grew by 5% year-over-year (YoY) to $70.9 billion, with total loans seeing a 6% increase YoY to $52.0 billion. Additionally, the bank's capital ratios remained well above regulatory requirements and regional bank averages, with a common equity tier 1 (CET1) capital ratio of 13.53%.
Despite a 2% decrease in net interest income from the fourth quarter of 2023 and a 14 basis point decline in net interest margin (NIM), the bank's average loan yield improved by 10 basis points. Noninterest income saw a slight decrease of 1% from the previous quarter, while noninterest expense dropped by 15%, primarily due to the first quarter FDIC charge of $10 million compared to the $70 million charge in the fourth quarter of 2023.
The bank's asset quality remained solid, with nonperforming assets increasing to $165 million as of March 31, 2024, from $114 million as of December 31, 2023. The allowance for loan losses stood at $670 million, or 1.29% of loans held-for-investment, as of March 31, 2024.
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