EAST WEST BANCORP INC
For the period ended Jun 30, 2026. Filed Aug 7, 2026.
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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.
Jun 30, 2026 · Filed Aug 7, 2026
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Noninterest Expense
The following table presents the components of noninterest expense for the second quarters and first halves of 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||
|---|---|---|---|---|---|---|
| ($ in thousands) | 2026 | 2025 | % Change | 2026 | 2025 | % Change |
| Compensation and employee benefits | $172,543 | $144,841 | 19% | $345,208 | $291,276 | 19% |
| Occupancy and equipment expense | 19,553 | 16,289 | 20% | 37,801 | 31,978 | 18% |
| Computer and software related expenses | 15,433 | 13,446 | 15% | 30,180 | 26,760 | 13% |
| Deposit insurance premiums and regulatory assessments | 10,268 | 9,133 | 12% | 19,127 | 19,518 | (2)% |
| Deposit account expense | 8,906 | 9,348 | (5)% | 16,439 | 18,390 | (11)% |
| Other real estate owned (“OREO”) expense (income) | 2,254 | (493) | NM | 1,990 | 3,673 | (46)% |
| Other operating expense | 38,869 | 37,220 | 4% | 75,411 | 74,595 | 1% |
| Amortization of tax credit and Community Reinvestment Act (“CRA”) investments | 22,796 | 26,236 | (13)% | 44,780 | 41,978 | 7% |
| Total noninterest expense | $290,622 | $256,020 | 14% | $570,936 | $508,168 | 12% |
NM - Not meaningful.
Noninterest expense was $291 million for the second quarter of 2026, an increase of $35 million or 14% compared with the second quarter of 2025. For the first half of 2026, noninterest expense was $571 million, an increase of $63 million or 12% compared with the first half of 2025. These year-over-year increases were primarily driven by higher compensation and employee benefits, occupancy and equipment expense, and computer and software related expenses. The increase for the second quarter also reflected higher OREO expense, partially offset by a decrease in amortization of tax credit and CRA investments.
Compensation and employee benefits were $173 million for the second quarter of 2026, an increase of $28 million or 19% compared with the second quarter of 2025. For the first half of 2026, compensation and employee benefits were $345 million, an increase of $54 million or 19% compared with the first half of 2025. The year-over-year increases were primarily driven by higher incentive compensation, staffing growth, additional employer matching contributions under the Company’s 401(k) plan, and higher costs associated with the deferred compensation plan.
Occupancy and equipment expense was $20 million for the second quarter of 2026, an increase of $3 million or 20% compared with the second quarter of 2025. For the first half of 2026, occupancy and equipment expense was $38 million, an increase of $6 million or 18% compared with the first half of 2025. The year-over-year increases were primarily driven by higher depreciation expense associated with new leasehold improvements and a building purchase made in the first quarter of 2026, and increased rental expense, partially offset by higher rental income.
Computer and software related expenses were $15 million for the second quarter of 2026, an increase of $2 million or 15% compared with the second quarter of 2025. For the first half of 2026, computer and software related expense was $30 million, an increase of $3 million or 13% compared with the first half of 2025. The year-over-year increases were mainly attributable to higher software expenses resulting from continued investments in technology infrastructure to support the Company’s growth.
OREO expense was $2 million for the second quarter of 2026, a $3 million increase compared with the OREO income in the second quarter of 2025. The year-over-year increase was primarily due to a $2 million OREO write-down in the second quarter of 2026. For the first half of 2026, OREO expense was $2 million, a $2 million or 46% decrease compared with the first half of 2025. The year-over-year decrease primarily reflected higher gains on the sale of OREO properties.
Amortization of tax credit and CRA investments was $23 million for the second quarter of 2026, a $3 million or 13% decrease compared with the second quarter of 2025. For the first half of 2026, amortization of tax credit and CRA investments was $45 million, a $3 million or 7% increase compared with the first half of 2025. The year-over-year changes were primarily due to the timing of tax credit investments that closed in a given period.
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