East West Bancorp, Inc. Q3 2026 Earnings Recap

East West Bancorp’s shares rose 2.4%, a roughly flat reaction, as the quarter combined record net interest income and higher full-year NII guidance with mixed loan trends. NDFI-related C&I balances declined modestly, while credit provision expense increased quarter over quarter.

Key Takeaways

• Management raised full-year net interest income growth guidance to 9%–10%, assuming short-term rates remain at current levels through year-end; it maintained its overall expense guidance.
• Loans grew 7% year over year, within the 6%–8% full-year outlook. Residential mortgage added nearly $400 million of net growth, while C&I balances declined modestly, largely due to lower NDFI borrowings.
• Net interest margin expanded 6 basis points sequentially; average deposit cost and total cost of funds each fell 2 basis points quarter over quarter.
• Net charge-offs declined to 15 basis points, or $22 million, from 19 basis points, or $27 million, in Q2; full-year charge-off guidance is now 15–20 basis points. Non-performing assets edged up 1 basis point to 30 basis points.
• Provision for credit losses rose to $45 million from $33 million in Q2. The efficiency ratio improved to 34.4%, and the CET1 ratio was 15.4% at quarter-end.