EAST WEST BANCORP INC
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
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Reconciliation of GAAP to Non-GAAP Financial Measures
To supplement the Company’s unaudited interim Consolidated Financial Statements presented in accordance with U.S. GAAP, the Company uses certain non-GAAP measures of financial performance. Non-GAAP financial measures are not prepared in accordance with, or as an alternative to U.S. GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance that either excludes or includes amounts, or is subject to adjustments that have such an effect, that are not normally excluded or included in the most directly comparable financial measure that is calculated and presented in accordance with U.S. GAAP. The non-GAAP financial measures that may be discussed in this Form 10-Q include but are not limited to ROATCE, tangible book value per share, adjusted net interest margin, and adjusted loan yield. Certain additional non-GAAP financial measures that are components of the foregoing non-GAAP financial measures are also set forth and reconciled in the table below. The Company believes these non-GAAP financial measures, when taken together with the corresponding U.S. GAAP financial measures, provide meaningful supplemental information regarding its performance, and allow comparability to prior periods. These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes.
The following tables present the reconciliations of U.S. GAAP to non-GAAP financial measures for the periods presented:
| Three Months Ended September 30, · Nine Months Ended September 30, | |||||
|---|---|---|---|---|---|
| ($ in thousands) · 2025 · 2024 · 2025 · 2024 | |||||
| Net income | (a) | $368,394 | $299,166 | $968,917 | $872,471 |
| Add: Amortization of mortgage servicing assets | 266 | 348 | 875 | 988 | |
| Tax effect of amortization adjustment (1) | (75) | (103) | (247) | (292) | |
| Tangible net income (non-GAAP) | (b) | $368,585 | $299,411 | $969,545 | $873,167 |
| Average stockholders’ equity | (c) | $8,381,214 | $7,443,333 | $8,108,615 | $7,175,445 |
| Less: Average goodwill | (465,697) | (465,697) | (465,697) | (465,697) | |
| Average mortgage servicing assets | (4,534) | (5,790) | (4,824) | (6,123) | |
| Average tangible book value (non-GAAP) | (d) | $7,910,983 | $6,971,846 | $7,638,094 | $6,703,625 |
| ROAE (2) | (a)/(c) | 17.44% | 15.99% | 15.98% | 16.24% |
| ROATCE (2) (non-GAAP) | (b)/(d) | 18.48% | 17.08% | 16.97% | 17.40% |
| ($ and shares in thousands, except per share data) · September 30, 2025 · December 31, 2024 | |||
|---|---|---|---|
| Stockholders’ equity | (a) | $8,582,800 | $7,723,054 |
| Less: Goodwill | (465,697) | (465,697) | |
| Mortgage servicing assets | (4,362) | (5,234) | |
| Tangible book value (non-GAAP) | (b) | $8,112,741 | $7,252,123 |
| Number of common shares at period-end | (c) | 137,568 | 138,437 |
| Book value per share | (a)/(c) | $62.39 | $55.79 |
| Tangible book value per share (non-GAAP) | (b)/(c) | $58.97 | $52.39 |
(1)Applied statutory tax rate of 28.18% for the three and nine months ended September 30, 2025, and 29.56% for the three and nine months ended September 30, 2024.
(2)Annualized.
| Three Months Ended · Nine Months Ended | ||||||
|---|---|---|---|---|---|---|
| Average C&I loan yield · September 30, 2025 · June 30, 2025 · September 30, 2024 · September 30, 2025 · September 30, 2024 | ||||||
| Interest income on C&I loans | (a) | $345,947 | $303,791 | $328,619 | $943,152 | $977,077 |
| Less: Loan payoff discount accretion and interest recoveries | (32,296) | — | — | (32,296) | — | |
| Adjusted interest income on loans | (b) | $313,651 | $303,791 | $328,619 | $910,856 | $977,077 |
| Average C&I loans | (c) | $17,799,708 | $17,363,095 | $16,492,589 | $17,346,156 | $16,318,594 |
| Average C&I loan yield (1) | (a)/(c) | 7.71% | 7.02% | 7.93% | 7.27% | 8.00% |
| Adjusted average C&I loan yield (1) | (b)/(c) | 6.99% | 7.02% | 7.93% | 7.02% | 8.00% |
| Average loan yield | ||||||
| Interest income on loans | (d) | $919,518 | $865,695 | $887,353 | $2,625,625 | $2,622,183 |
| Less: Loan payoff discount accretion and interest recoveries | (32,296) | — | — | (32,296) | — | |
| Adjusted interest income on loans | (e) | $887,222 | $865,695 | $887,353 | $2,593,329 | $2,622,183 |
| Average loans | (f) | $55,208,578 | $54,281,432 | $52,420,516 | $54,282,760 | $52,089,261 |
| Average loan yield (1) | (d)/(f) | 6.61% | 6.40% | 6.73% | 6.47% | 6.72% |
| Adjusted average loan yield (1) | (e)/(f) | 6.38% | 6.40% | 6.73% | 6.39% | 6.72% |
| Yield on average interest-earning assets | ||||||
| Interest and dividend income | (g) | $1,129,732 | $1,058,999 | $1,075,899 | $3,220,533 | $3,133,930 |
| Less: Loan payoff discount accretion and interest recoveries | (32,296) | — | — | (32,296) | — | |
| Adjusted interest and dividend income | (h) | $1,097,436 | $1,058,999 | $1,075,899 | $3,188,237 | $3,133,930 |
| Average interest-earning assets | (i) | $76,206,138 | $73,903,125 | $70,263,495 | $74,288,924 | $68,902,563 |
| Yield on average interest-earning assets (1) | (j)=(g)/(i) | 5.88% | 5.75% | 6.09% | 5.80% | 6.08% |
| Adjusted yield on average interest-earning assets (1) | (k)=(h)/(i) | 5.71% | 5.75% | 6.09% | 5.74% | 6.08% |
| Interest rate spread | ||||||
| Interest on average interest-bearing liabilities (1) | (l) | 3.34% | 3.39% | 4.05% | 3.39% | 4.01% |
| Interest rate spread | (j)-(l) | 2.54% | 2.36% | 2.04% | 2.41% | 2.07% |
| Adjusted interest rate spread | (k)-(l) | 2.37% | 2.36% | 2.04% | 2.35% | 2.07% |
| Net interest margin | ||||||
| Net interest income | (m) | $677,530 | $617,074 | $572,722 | $1,894,805 | $1,691,090 |
| Less: Loan payoff discount accretion and interest recoveries | (32,296) | — | — | (32,296) | — | |
| Adjusted net interest income | (n) | $645,234 | $617,074 | $572,722 | $1,862,509 | $1,691,090 |
| Average interest-earning assets | (o) | $76,206,138 | $73,903,125 | $70,263,495 | $74,288,924 | $68,902,563 |
| Net interest margin (1) | (m)/(o) | 3.53% | 3.35% | 3.24% | 3.41% | 3.28% |
| Adjusted net interest margin (1) | (n)/(o) | 3.36% | 3.35% | 3.24% | 3.35% | 3.28% |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.