East West Bancorp Inc

East West Bancorp is leaning on organic balance sheet expansion to drive revenue growth, with management guiding to 7-9% net interest income growth and 6-8% loan growth in 2026. Total revenues rose 11.4% to $1.56 billion in the first half of 2026 from the year-ago period, supported by both net interest income and non-interest income. Average loans increased 7.1% year over year to $57.6 billion, while average interest-earning assets rose 7.8% to $79 billion, and total deposits grew 7.8% to $70.1 billion. Non-interest-bearing deposits climbed 19% year over year as of June 30, 2026, representing 26% of total deposits, a mix the company expects to help offset modest loan-yield compression and keep its net interest margin relatively stable under a flat-rate scenario. East West Bancorp also anticipates double-digit fee income growth, led by wealth management income, commercial and consumer deposit fees, FX fees, and loan-related fees, after non-interest income posted a 10.4% CAGR during 2019-2025. Over the past year, EWBC shares have gained 17.4%, outperforming the industry's 4.3% growth.

East West Bancorp reported second-quarter 2026 earnings per share of $2.63, beating the Zacks Consensus Estimate of $2.61 and rising 17.4% from the prior-year quarter. Net income was $363.7 million, up from $310.3 million a year earlier, driven by a 12.5% increase in net revenues to $791.1 million, which also topped the consensus of $785.9 million. Net interest income grew 11% to $684.7 million, while non-interest income jumped 23.6% to $106.5 million, though non-interest expenses rose 13.5% to $290.6 million. Loan and deposit balances reached record levels, with net loans held for investment at $58.1 billion and total deposits at $70.1 billion as of June 30, 2026. The provision for credit losses declined to $33 million from $45 million, but non-performing assets increased 43.9% to $247 million, and the company did not repurchase any shares during the quarter.

East West Bancorp has increased its annualized dividend to $3.20 per share, a 33.3% rise from last year. The Pasadena-based bank holding company currently pays a quarterly dividend of $0.80 per share, yielding 2.48%, which compares to the Banks - West industry average of 2.53% and the S&P 500's 1.41%. Over the past five years, the company has raised its dividend five times, averaging an 18.17% annual increase. Its payout ratio stands at 32% of trailing twelve-month earnings, and the Zacks Consensus Estimate for 2026 earnings is $10.59 per share, implying 11.59% year-over-year growth. The stock carries a Zacks Rank of #3 (Hold).

Stock Yards Bank reported first-quarter revenues of $102.6 million, up 9.6% year on year and in line with analysts' expectations, in what was described as a mixed quarter. Among the 91 regional banks tracked, UMB Financial posted the strongest results with revenues of $744.8 million, beating estimates by 5.4%, while BankUnited was the weakest, missing revenue expectations by 5.1% with $273.8 million. East West Bank reported $773.7 million in revenue, exceeding estimates by 2.8%, and First Commonwealth Financial posted $133.7 million, slightly below expectations. Overall, the group's revenues were in line with consensus, and share prices have risen an average of 6.2% since the latest earnings results.

Regional bank stocks delivered a mixed first quarter, with Ameris Bancorp reporting revenues of $315.3 million, up 10% year on year and exceeding analyst expectations by 2.1%. Among the 91 regional banks tracked, UMB Financial stood out with revenues of $744.8 million, a 29.3% increase that beat estimates by 5.4%, while BankUnited fell short with revenues of $273.8 million, missing expectations by 5.1%. Western Alliance Bancorporation posted revenues of $977.3 million, up 25.8% and surpassing estimates by 2.7%, and East West Bank reported revenues of $773.7 million, an 11.8% rise that beat estimates by 2.8%. On average, share prices of the group have held steady, rising 1.6% since the latest earnings results.