East West Bancorp: 3 Key Takeaways for Long-Term Investors

On its third quarter of 2026 earnings call, held on Oct. 20, 2026, East West Bancorp (NASDAQ:EWBC) announced higher full-year net interest income (NII) guidance following record revenue and loan growth. The bank continues to expand its core deposit base while keeping loan losses well below industry averages. This disciplined operational model delivers high returns on equity without taking on excessive risk. Three things management said stand out.

1. Direct Branch Outreach Drives Low-Cost Deposit Growth

Branch managers actively visit local businesses to secure zero-interest demand deposit accounts, which now represent over 20% of total deposits. This hands-on strategy lowers total funding costs so the bank doesn't have to rely on expensive wholesale funds.

And that outreach and calling and visiting our customers at their offices, at their shop, at their restaurant, has just resulted in a flow of activity that, thankfully, has helped us maintain and grow these balances over the last year and a half.
-- Christopher J. Del Moral-Niles, Chief Financial Officer

2. Disciplined Underwriting Keeps Credit Losses Exceptionally Low

Conservative collateral requirements protect the loan portfolio from macroeconomic stress. Low net charge-offs, which represent bad loans written off as uncollectible, allowed leadership to lower its full-year loss expectations.

Given our performance through the first nine months of the year, our current visibility, we have narrowed our prior guidance for net charge offs and now expect full year charge offs to be 15 to 20 basis points.
-- Irene H. Oh, Chief Risk Officer

3. Internal Business Expansion Takes Priority Over Acquisition Risk

Management prefers expanding its core commercial banking channels over acquiring rival institutions through mergers and acquisitions (M&A). The bank maintains a 10% tangible common equity ratio, which measures core capital against assets, so it doesn't need external deals to grow.

The reality is that because we spend so much time focusing on the organic business growth, and making sure we have better products, we have better capability and whatnot, and relatively speaking, it makes the M&A opportunity less likely because we continue to be able to find a way to grow organically.
-- Dominic Ng, Chairman and Chief Executive Officer

Looking Ahead

Net interest income is expanding across core lending channels, and leadership isn't hiding its satisfaction with current momentum. The bank focuses on pricing discipline and expense control while monitoring interest rate moves.

Given September's rate hike and our strong third quarter performance, we now expect full year NII growth of 9% to 10%. The guidance assumes that short term rates remain at current levels through the end of the year.
-- Christopher J. Del Moral-Niles, Chief Financial Officer

East West Bancorp relies on deep customer relationships and specialized cross-border banking services to drive long-term shareholder value.

We claim championship in relationship banking, and cross border banking. That is what we wanted to continue to spend all of our effort to.
-- Dominic Ng, Chairman and Chief Executive Officer

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