East West Bancorp Inc (EWBC, Financial) released its Q3 2023 earnings report on October 19, 2023. The company reported a net income of $288 million, or $2.02 per diluted share. Total loans reached a record $50.9 billion as of September 30, 2023. The return on average assets was 1.66%, return on average common equity was 17.28%, and return on average tangible common equity was 18.65%.
Financial Performance and Highlights
East West Bancorp Inc (EWBC, Financial) reported a 3% increase in revenue, reaching $648 million in Q3 2023 compared to $627 million in Q3 2022. However, net income decreased by 3% from $295 million in Q3 2022 to $288 million in Q3 2023. Diluted earnings per share also decreased by 3% from $2.08 in Q3 2022 to $2.02 in Q3 2023. Total loans increased by 7% from $47,457 million in Q3 2022 to $50,912 million in Q3 2023. Total deposits also increased by 2% from $53,857 million in Q3 2022 to $55,087 million in Q3 2023.
Balance Sheet Summary
As of September 30, 2023, total assets were $68.3 billion, reflecting an increase in balance sheet efficiency. Total loans reached a record $50.9 billion, an increase of 2% from $49.8 billion as of June 30, 2023. Total deposits were $55.1 billion, a decrease of 1% from $55.7 billion as of June 30, 2023. As of September 30, 2023, stockholders’ equity was $6.6 billion, or $46.62 per share, both up 2% quarter-over-quarter.
Operating Results
Third quarter 2023 net income was $288 million, and diluted earnings per share (“EPS”) were $2.02. While third quarter 2023 net income and EPS both decreased from the second quarter of 2023, revenue and pre-tax pre-provision income both improved. Net income and diluted EPS for the nine months ended September 30, 2023 were $922 million and $6.49, which both increased 17% from the nine months ended September 30, 2022.
Asset Quality and Capital Strength
As of September 30, 2023, the credit quality of the company's loan portfolio remained solid. The nonperforming assets ratio improved to 0.15% of total assets as of September 30, 2023, down from 0.17% of total assets as of June 30, 2023. All of East West’s regulatory capital ratios are well in excess of regulatory requirements for well-capitalized institutions, as well as above regional and national bank averages.
Dividend Payout and Capital Actions
East West’s Board of Directors has declared fourth quarter 2023 dividends for the Company’s common stock. The common stock cash dividend of $0.48 per share is payable on November 15, 2023, to stockholders of record on November 1, 2023. The Company intends to resume share repurchases in the fourth quarter of 2023.
