Executive Summary

Record quarterly revenue ($693.4M FTE), net interest income ($600.2M), and fee income ($92.1M), with diluted EPS of $2.08; adjusted diluted EPS was $2.09. Net interest margin (NIM) expanded 11 bps q/q to 3.35% as disciplined deposit repricing lowered average cost of interest-bearing deposits 29 bps q/q to 3.34% .
Loans grew +1% q/q to $54.3B and deposits were $63.1B (flat q/q), reflecting deliberate mix optimization and Lunar New Year CD retention; book value per share rose 3% q/q to $57.54; CET1 ratio remained robust at 14.3% and TCE at 9.85% .
FY25 guidance maintained: loans +4–6% YoY, NII +4–6%, total revenue +5–7%, operating noninterest expense +7–9%, NCOs 25–35 bps, tax rate 21–23%, tax credit/CRA amortization $70–80M; management emphasized capital strength and opportunistic buybacks ($85M in Q1, $244M authorization remaining) .
Near-term stock catalysts: continued NIM expansion from deposit cost roll-down, fee diversification momentum (wealth management, derivatives), and strong capital returns; watch reserve build (+$33M q/q, ALLL to 1.35%) amid tariff-related uncertainty and criticized loans uptick (2.29% of HFI) .

What Went Well and What Went Wrong

What Went Well
- “Record loans, revenue, and fee income” with nearly 16% ROTCE; NIM expanded 11 bps q/q and NII surpassed $600M, driven by deposit cost optimization and hedge roll-off timing .
- Fee income hit a record $92.1M (+4% q/q; core fee $88.4M +8% q/q) with strength in wealth management (+$3.9M), customer derivatives (+$1.8M), and lending fees (+$1.5M), evidencing successful cross-sell and client engagement .
- Asset quality improved: NCOs were $15M (0.12% ann.), NPAs fell to 0.24% of assets; nonaccruals and OREO declined q/q; management noted credit “performing as expected” .
What Went Wrong
- Criticized loans rose to 2.29% of loans HFI (+11 bps q/q), with increases in CRE and residential mortgage; special mention 0.91% and classified 1.38% ticked up q/q .
- Provision remained elevated at $49M (though down from $70M in Q4), driven by increased downside scenario weights amid economic uncertainty; ALLL increased $33M q/q to $735M (1.35% of HFI), including a $37M C&I reserve build .
- GAAP diluted EPS dipped slightly q/q ($2.08 vs. $2.10) despite operational strength, reflecting higher tax expense (effective tax rate 25.8% vs. 17.6% in Q4 on timing of renewable energy credits) and seasonal compensation .

Financial Results

Metric	Q1 2024	Q4 2024	Q1 2025	Q1 2025 Consensus
Total Revenue (FTE) ($M)	$645.2	$677.1	$693.4	$672.0*
Net Interest Income ($M)	$565.1	$587.6	$600.2	—
Total Noninterest Income ($M)	$78.5	$88.2	$92.1	—
Diluted EPS ($)	$2.03	$2.10	$2.08	$2.061*
Adjusted Diluted EPS ($)	$2.08	$2.08	$2.09	—
Net Interest Margin (%)	3.34	3.24	3.35	—
Efficiency Ratio (%)	38.28	36.99	36.42	—

Values with asterisks retrieved from S&P Global.

Segment and Portfolio Detail

Loans Held-for-Investment by Category ($000s) | Category | Mar 31, 2024 | Dec 31, 2024 | Mar 31, 2025 | |---|---|---|---| | C&I | $16,350,191 | $17,397,158 | $17,460,744 | | Total CRE (incl. Multifamily) | $20,293,839 | $20,274,944 | $20,529,960 | | Single-Family Residential | $13,563,738 | $14,175,446 | $14,383,562 | | HELOCs | $1,731,233 | $1,811,628 | $1,827,837 | | Total Loans HFI | $51,992,504 | $53,726,637 | $54,252,734 |
Deposits by Product ($000s) | Product | Mar 31, 2024 | Dec 31, 2024 | Mar 31, 2025 | |---|---|---|---| | Noninterest-bearing Demand | $14,798,927 | $15,450,428 | $15,169,775 | | Interest-bearing Checking | $7,570,427 | $7,940,692 | $7,591,847 | | Money Market | $13,585,597 | $14,816,511 | $14,885,732 | | Savings | $1,834,393 | $1,751,620 | $1,740,044 | | Time | $20,771,280 | $23,215,772 | $23,664,707 | | Total Deposits | $58,560,624 | $63,175,023 | $63,052,105 |

Key Performance Indicators

KPI	Q1 2024	Q4 2024	Q1 2025
ROAA (%)	1.60	1.55	1.56
ROTCE (%)	17.60	16.07	15.92
CET1 Ratio (%)	13.53	14.27	14.32
TCE Ratio (%)	9.31	9.60	9.85
NPA / Assets (%)	0.23	0.26	0.24
NCOs (ann. % of HFI)	0.17	0.48	0.12
ALLL / Loans HFI (%)	1.29	1.31	1.35
Loan-to-Deposit Ratio (%)	88.81	85.04	86.04

Guidance Changes

Metric	Period	Previous Guidance (Q4 2024)	Current Guidance (Q1 2025)	Change
End-of-Period Loans	FY 2025	+4% to +6% YoY	+4% to +6% YoY	Maintained
Net Interest Income	FY 2025	+4% to +6% YoY	+4% to +6% YoY	Maintained
Total Revenue	FY 2025	+5% to +7% YoY	+5% to +7% YoY	Maintained
Operating Noninterest Expense	FY 2025	+7% to +9% YoY	+7% to +9% YoY	Maintained
Net Charge-offs	FY 2025	25–35 bps	25–35 bps	Maintained
Effective Tax Rate	FY 2025	21%–23%	21%–23%	Maintained
Tax credit/CRA amortization	FY 2025	—	$70–$80M	New explicit range
Dividend	Q2 2025	$0.60 declared in Q1 press	$0.60 payable May 16, 2025	Maintained
Share Repurchase	FY 2025	$329M authorization available	$244M remaining; $85M repurchased in Q1	Ongoing (utilized)

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 & Q4 2024)	Current Period (Q1 2025)	Trend
Deposit cost management	50%+ beta targeted; pricing lowered; Lunar CD specials moving down (5.25% to 4.28%)	Average cost of interest-bearing deposits fell 29 bps q/q to 3.34%; 10–$8B CDs maturing Q2–Q3 at low-4% rates	Continuing tailwind (gradual)
NIM/NII trajectory	Swaps rolling off; NII expected to rebound on lower deposit costs	NIM +11 bps q/q to 3.35; NII +2% q/q; hedges negative carry reduced; $1B forward-starting swaps (~4%) in 2H25	Improving; hedge mix more favorable
Fee diversification	Record fee income; strong lending, FX, treasury/wealth	Record $92.1M total noninterest; core fee $88.4M (+8% q/q); wealth management and derivatives strength	Broad-based growth
Credit quality	NPAs ~26 bps; outlier tech C&I losses in Q4	NCOs 0.12% ann.; NPAs 0.24%; criticized loans up to 2.29%; provision $49M; ALLL 1.35%	Overall solid with cautious reserve build
Tariffs/supply chain	Minimal prior impact; prepared clients	Active client outreach; ~1% of C&I balances with meaningful exposure; case-by-case mitigation	Managed; watch macro
Capital & buybacks	TCE ~9.6%; opportunistic buybacks; new $300M authorization	CET1 14.3%; TCE 9.85%; $85M repurchases; $244M remaining	Strong; flexible

Management Commentary

CEO Dominic Ng: “Net interest margin expanded 11 basis points... resulting in over $600 million of net interest income... complemented by 8% quarter-over-quarter growth in fee income” .
CEO on credit and reserves: “Credit performance strengthened... bolstered our allowance for loan losses to... 1.35% of loans” .
CFO Chris Del Moral-Niles: “We grew... NII to $600 million... NIM... 3.35%... primarily by decreasing... interest-bearing deposit costs... assisted by the expiration of some of our legacy hedges” .
CRO Irene Oh: “Asset quality metrics continued to broadly outperform the industry... net charge-offs... $15 million... provision... $49 million... allowance... $735 billion or 1.35%” .
CEO on tariffs: “We already talked to over 500 commercial clients... as of today... commercial clients... significant potential adverse impact... equate to about 1% of our total C&I loan balance” .

Q&A Highlights

NII guidance: Despite stronger NIM and pipelines, management held NII guidance given multiple rate cuts embedded in the curve; “we think the current guidance is appropriate” .
Deposit betas: Above 50% guide due to CD repricing; momentum to moderate as curve flattens; still expect >50% through cycle .
Buybacks: Opportunistic stance; $85M in Q1; flexibility with $244M remaining authorization .
Tariff exposure: ~1% of C&I balances under closer watch; no current expected losses; potential to gain share from less experienced competitors .
CDs & repricing: ~$10B repricing in Q2 and ~$8B in Q3; rolling into low-4% rates, supporting further cost relief .
Hedges: $1B forward-starting receive-fixed (~4%) swaps begin in Q3/Q4 2025, positioning well if rates fall .
FHLB strategy: $3.5B advances viewed as flexible funding; may repay with deposit inflows or redeploy into HQLA .

Estimates Context

EPS: Q1 2025 diluted EPS of $2.08 vs. consensus $2.061 (beat); adjusted diluted EPS $2.09 . Consensus values are from S&P Global.*
Revenue: Q1 2025 total revenue (FTE) $693.4M vs. SPGI consensus revenue estimate $672.0M; note SPGI “Revenue” definitions for banks may differ from company total revenue (FTE) reporting . Values retrieved from S&P Global.*

Metric	Q3 2024	Q4 2024	Q1 2025
EPS Consensus Mean ($)	2.04968*	2.11551*	2.061*
Actual Diluted EPS ($)	2.09	2.10	2.08
Revenue Consensus Mean ($M)	642.7*	658.2*	672.0*
Actual Revenue ($M, company FTE)	—	677.1	693.4

Values with asterisks retrieved from S&P Global.

Where estimates may adjust:

Modest upward adjustments to NII/NIM trajectory given 11 bps NIM expansion and CD cost tailwinds (tempered by potential additional Fed cuts) .
Fee income run-rate trending higher (wealth, derivatives, lending) could lift noninterest income expectations .
Credit cost assumptions appropriate; reserve build acknowledges macro uncertainty (tariffs, cycle dynamics) .

Key Takeaways for Investors

Deposit cost roll-down is still a tailwind; expect gradual NIM accretion as CDs reprice and hedges tilt more favorable; monitor path of Fed cuts as the main swing factor .
Fee diversification is gaining momentum and supports total revenue growth above NII alone (wealth management, derivatives, lending, cash management) .
Credit quality remains solid; reserve build is prudential given uncertainty; criticized loan uptick warrants monitoring but NPAs and NCOs improved q/q .
Capital flexibility underpins buybacks and dividends; CET1 14.3% and TCE 9.85% provide optionality to return capital while funding growth .
FY25 guide unchanged; management confidence in loan growth funded by customer deposits, with expenses tracking investment in tech, cyber, and risk infrastructure .
Tariff exposure appears contained (~1% of C&I balances under watch); East West’s cross-border expertise may enable share gains in a complex macro backdrop .
Short-term: Trade the NIM/fee momentum and capital return narrative; Medium-term: Focus on execution of deposit mix optimization, disciplined credit, and fee growth durability.

Additional Primary Sources Read

Form 8-K, Item 2.02 and Exhibits 99.1/99.2: earnings release and presentation –.
Q1 2025 earnings call transcript –.
Prior-quarter transcripts (Q4 2024, Q3 2024) for trend analysis – –.
Other relevant Q1 press: Pasadena Private Lending facility (East West senior lender) .

S&P Global disclaimer: All consensus estimate values marked with asterisks are retrieved from S&P Global.

EAST WEST BANCORP INC (EWBC)·Q1 2025 Earnings Summary