EAST WEST BANCORP INC
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
View on SEC.govAbout this filing
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, 2026 · Filed Nov 6, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Operating Segment Results
The Company manages its operations through three reportable operating segments: Consumer and Business Banking, Commercial Banking, and Treasury and Other. These segments are defined based on the customers served, products and services offered, and distribution channels. Segment net interest income reflects interest earned on segment assets less interest incurred on segment liabilities, adjusted for funds transfer pricing (“FTP”) charges and credits. During the third quarter of 2026, the Company revised certain methodologies used to measure segment performance. Because prior-period segment information was not recast, the year-over-year changes discussed below reflect the effects of these revisions and are not fully comparable with the corresponding 2025 periods. See Note 13 — Business Segments to the Consolidated Financial Statements in this Form 10-Q for additional information regarding the Company’s segments and the revised methodologies.
Consumer and Business Banking
The following tables present financial information for the Consumer and Business Banking segment for the periods indicated:
| Three Months Ended September 30, | ||||
|---|---|---|---|---|
| ($ in thousands) | 2026 | 2025 | $ | % |
| Net interest income before provision for credit losses (1) | $320,760 | $275,389 | $45,371 | 16% |
| Noninterest income | 35,095 | 31,191 | 3,904 | 13% |
| Total revenue before provision for credit losses | 355,855 | 306,580 | 49,275 | 16% |
| Provision for credit losses (1) | 17,372 | 16,679 | 693 | 4% |
| Compensation and employee benefits | 69,702 | 60,471 | 9,231 | 15% |
| Other noninterest expense | 63,949 | 57,695 | 6,254 | 11% |
| Total noninterest expense | 133,651 | 118,166 | 15,485 | 13% |
| Segment income before income taxes | 204,832 | 171,735 | 33,097 | 19% |
| Income tax expense | 57,402 | 48,388 | 9,014 | 19% |
| Segment net income | $147,430 | $123,347 | $24,083 | 20% |
| Average loans | $21,962,482 | $20,500,553 | $1,461,929 | 7% |
| Average deposits | $36,961,478 | $33,883,506 | $3,077,972 | 9% |
| Nine Months Ended September 30, | ||||
|---|---|---|---|---|
| ($ in thousands) | 2026 | 2025 | $ | % |
| Net interest income before provision for credit losses (1) | $864,258 | $818,195 | $46,063 | 6% |
| Noninterest income | 113,262 | 91,205 | 22,057 | 24% |
| Total revenue before provision for credit losses | 977,520 | 909,400 | 68,120 | 7% |
| Provision for credit losses (1) | 39,008 | 31,139 | 7,869 | 25% |
| Compensation and employee benefits | 206,502 | 180,585 | 25,917 | 14% |
| Other noninterest expense | 187,437 | 172,140 | 15,297 | 9% |
| Total noninterest expense | 393,939 | 352,725 | 41,214 | 12% |
| Segment income before income taxes | 544,573 | 525,536 | 19,037 | 4% |
| Income tax expense | 152,611 | 150,806 | 1,805 | 1% |
| Segment net income | $391,962 | $374,730 | $17,232 | 5% |
| Average loans | $21,486,485 | $20,151,497 | $1,334,988 | 7% |
| Average deposits | $36,058,196 | $32,992,699 | $3,065,497 | 9% |
(1)Reflects the effects of the revised segment measurement methodologies described above, which changed the allocation of net interest income and provision for credit losses among the Company’s reportable segments but had no impact on consolidated results.
Consumer and Business Banking segment net income increased $24 million or 20% to $147 million for the third quarter of 2026 compared with the same period in 2025. The increase primarily reflected a $45 million increase in net interest income and a $4 million increase in noninterest income, partially offset by a $9 million increase in compensation and employee benefits expense and a $6 million increase in other noninterest expense. For the first nine months of 2026, segment net income increased $17 million or 5%, to $392 million compared with the same period in 2025. The increase primarily reflected a $46 million increase in net interest income and a $22 million increase in noninterest income, partially offset by a $26 million increase in compensation and employee benefits expense, a $15 million increase in other noninterest expense and an $8 million increase in provision for credit losses.
The increase in net interest income for both periods primarily reflected the revised FTP methodology, lower deposit funding costs resulting from the year-over-year decline in interest rates, and continued growth in low-cost deposits. The increase in noninterest income for both periods primarily reflected higher wealth management fees and deposit-related fees. The increase for the third quarter also reflected higher foreign exchange income.
Provision for credit losses increased $1 million and $8 million for the third quarter and first nine months of 2026, respectively, primarily reflecting the revised allocation methodology.
The increase in compensation and employee benefits expense for both periods primarily reflected staffing growth and, for the first nine months of 2026, higher wealth management commissions. The increase in other noninterest expense for both periods was primarily driven by higher shared service cost allocations and occupancy and equipment expense. The third quarter increase also reflected higher deposit insurance premiums and regulatory assessments, while the increase for the first nine months reflected higher other operating expense.
Commercial Banking
The following tables present financial information for the Commercial Banking segment for the periods indicated:
| Three Months Ended September 30, | ||||
|---|---|---|---|---|
| ($ in thousands) | 2026 | 2025 | $ | % |
| Net interest income before provision for credit losses (1) | $344,147 | $265,935 | $78,212 | 29% |
| Noninterest income | 62,990 | 57,983 | 5,007 | 9% |
| Total revenue before provision for credit losses | 407,137 | 323,918 | 83,219 | 26% |
| Provision for credit losses (1) | 76,509 | 35,580 | 40,929 | 115% |
| Compensation and employee benefits | 72,584 | 62,282 | 10,302 | 17% |
| Other noninterest expense | 32,724 | 36,413 | (3,689) | (10)% |
| Total noninterest expense | 105,308 | 98,695 | 6,613 | 7% |
| Segment income before income taxes | 225,320 | 189,643 | 35,677 | 19% |
| Income tax expense | 63,153 | 53,376 | 9,777 | 18% |
| Segment net income | $162,167 | $136,267 | $25,900 | 19% |
| Average loans | $36,944,246 | $34,408,431 | $2,535,815 | 7% |
| Average deposits (2) | $29,568,142 | $27,979,846 | $1,588,296 | 6% |
| Nine Months Ended September 30, | ||||
|---|---|---|---|---|
| ($ in thousands) | 2026 | 2025 | $ | % |
| Net interest income before provision for credit losses (1) | $864,257 | $773,080 | $91,177 | 12% |
| Noninterest income | 172,881 | 161,313 | 11,568 | 7% |
| Total revenue before provision for credit losses | 1,037,138 | 934,393 | 102,745 | 11% |
| Provision for credit losses (1) | 124,065 | 115,083 | 8,982 | 8% |
| Compensation and employee benefits | 217,207 | 181,061 | 36,146 | 20% |
| Other noninterest expense | 108,344 | 114,784 | (6,440) | (6)% |
| Total noninterest expense | 325,551 | 295,845 | 29,706 | 10% |
| Segment income before income taxes | 587,522 | 523,465 | 64,057 | 12% |
| Income tax expense | 164,534 | 149,966 | 14,568 | 10% |
| Segment net income | $422,988 | $373,499 | $49,489 | 13% |
| Average loans | $36,583,925 | $33,800,162 | $2,783,763 | 8% |
| Average deposits (2) | $28,776,971 | $26,815,049 | $1,961,922 | 7% |
(1)Reflects the effects of the revised segment measurement methodologies described above, which changed the allocation of net interest income and provision for credit losses among the Company’s reportable segments but had no impact on consolidated results.
(2)Prior-period deposit balances have been reclassified to conform with the current-period presentation following a change in the Company’s internal deposit allocation methodology.
Commercial Banking segment net income increased $26 million or 19% to $162 million for the third quarter of 2026 compared with the same period in 2025. The increase primarily reflected a $78 million increase in net interest income, a $5 million increase in noninterest income, and a $4 million decrease in other noninterest expense, partially offset by a $41 million increase in provision for credit losses and a $10 million increase in compensation and employee benefits expense. For the first nine months of 2026, segment net income increased $49 million or 13%, to $423 million compared with the same period in 2025, primarily reflecting a $91 million increase in net interest income and a $12 million increase in noninterest income, partially offset by a $36 million increase in compensation and employee benefits expense and a $9 million increase in provision for credit losses.
The increase in net interest income for both periods primarily reflected the revised FTP methodology and lower deposit funding costs resulting from the year-over-year decline in interest rates. The increase in provision for credit losses for both periods primarily reflected the revised allocation methodology, partially offset by a more stable macroeconomic outlook for the commercial loan portfolio compared with the prior-year periods. The increase in noninterest income for both periods primarily reflected higher commercial deposit-related fees, foreign exchange income and customer derivative income. The increase in the first nine months of 2026 also reflected higher wealth management fees. Compensation and employee benefits expense increased for both periods, primarily due to higher incentive compensation and staffing growth. Other noninterest expense decreased in the third quarter of 2026, primarily due to lower loan-related and OREO expenses, partially offset by higher computer- and software-related expense.
Treasury and Other
The following tables present financial information for the Treasury and Other segment for the periods indicated:
| Three Months Ended September 30, | ||||
|---|---|---|---|---|
| ($ in thousands) | 2026 | 2025 | $ | % |
| Net interest income before reversal of credit losses (1) (2) | $53,989 | $136,206 | $(82,217) | (60)% |
| Noninterest income | 5,768 | 11,343 | (5,575) | (49)% |
| Total revenue before reversal of credit losses | 59,757 | 147,549 | (87,792) | (60)% |
| Reversal of credit losses (1) | (48,881) | (16,259) | (32,622) | NM |
| Compensation and employee benefits | 27,289 | 52,832 | (25,543) | (48)% |
| Other noninterest expense | 16,795 | 7,230 | 9,565 | 132% |
| Total noninterest expense | 44,084 | 60,062 | (15,978) | (27)% |
| Segment income before income taxes | 64,554 | 103,746 | (39,192) | (38)% |
| Income tax benefit | (8,045) | (5,034) | (3,011) | NM |
| Segment net income | $72,599 | $108,780 | $(36,181) | (33)% |
| Average loans (3) | $— | $299,594 | $(299,594) | (100)% |
| Average deposits (4) | $3,762,114 | $4,326,415 | $(564,301) | (13)% |
| Nine Months Ended September 30, | ||||
|---|---|---|---|---|
| ($ in thousands) | 2026 | 2025 | $ | % |
| Net interest income before reversal of credit losses (1) (2) | $346,225 | $303,530 | $42,695 | 14% |
| Noninterest income | 26,758 | 26,279 | 479 | 2% |
| Total revenue before reversal of credit losses | 372,983 | 329,809 | 43,174 | 13% |
| Reversal of credit losses (1) | (49,073) | (16,222) | (32,851) | NM |
| Compensation and employee benefits | 91,074 | 105,215 | (14,141) | (13)% |
| Other noninterest expense | 43,415 | 31,306 | 12,109 | 39% |
| Total noninterest expense | 134,489 | 136,521 | (2,032) | (1)% |
| Segment income before income taxes | 287,567 | 209,510 | 78,057 | 37% |
| Income tax benefit | (1,175) | (11,178) | 10,003 | NM |
| Segment net income | $288,742 | $220,688 | $68,054 | 31% |
| Average loans (3) | $— | $331,101 | $(331,101) | (100)% |
| Average deposits (4) | $4,020,556 | $4,373,658 | $(353,102) | (8)% |
(1)Reflects the effects of the revised segment measurement methodologies described above, which changed the allocation of net interest income and provision for credit losses among the Company’s reportable segments but had no impact on consolidated results.
(2)Primarily represents income from the Company’s debt securities portfolio. See Note 4 —Securitiesto the Consolidated Financial Statements and Item 2. MD&A — Balance Sheet Analysis — Debt Securities in this Form 10-Q for additional information regarding the Company’s debt securities portfolio.
(3)Effective January 1, 2026, certain loans previously reflected in Treasury and Other were reallocated to the Commercial Banking and Consumer and Business Banking segments to align with the Company’s current internal management reporting.
(4)Prior-period deposit balances have been reclassified to conform with the current-period presentation following a change in the Company’s internal deposit allocation methodology.
Treasury and Other segment income before income taxes decreased $39 million or 38% to $65 million for the third quarter of 2026 compared with the same period in 2025. The decrease primarily reflected an $82 million decrease in net interest income, a $10 million increase in other noninterest expense, and a $6 million decrease in noninterest income, partially offset by a $33 million increase in reversal of credit losses and a $26 million decrease in compensation and employee benefits expense. For the first nine months of 2026, segment income before income taxes increased $78 million or 37%, to $288 million compared with the same period in 2025. The increase primarily reflected a $43 million increase in net interest income, a $33 million increase in reversal of credit losses, and a $14 million decrease in compensation and employee benefits expense, partially offset by a $12 million increase in other noninterest expense.
The decrease in net interest income for the third quarter of 2026 primarily reflected the revised FTP methodology. For the first nine months of 2026, the increase in net interest income primarily reflected lower interest expense on funding and higher interest income from AFS debt securities, partially offset by the impact of the revised FTP methodology.
The increase in reversal of credit losses for both periods primarily reflected the revised allocation methodology. The year-over-year increase was partially offset by an $18 million reversal of credit losses recognized in the third quarter of 2025 related to the payoff of purchased credit-impaired and workout loans. The decrease in noninterest income for the third quarter of 2026 primarily reflected lower income from bank-owned life insurance policies. The decrease in compensation and employee benefits expense for both periods primarily reflected additional compensation expense recognized in the third quarter of 2025 related to a change in recognition of equity award expense for retirement-eligible employees. The increase in other noninterest expense for both periods primarily reflected higher amortization of tax credit and CRA investments and higher computer- and software-related expense.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.