East West Bancorp Roars into Record-Breaking Quarter with Strong Loan Growth and Fee Income
East West Bancorp, a leading regional bank in California, has made a stunning start to the year, delivering record-breaking financial results for the first quarter of 2025. The company's Chairman and Chief Executive Officer, Dominic Ng, took pride in reporting another quarter of strong revenue growth, with loan balances hitting an all-time high of $54 billion.
Ng attributed this success to the bank's relationship-driven business model, which has enabled continued growth in residential mortgage and commercial real estate lending. The Lunar New Year CD campaign was also a resounding success, with further optimization of pricing this quarter leading to increased customer acquisition. Additionally, the company reported another record quarter for fee income, up 8% driven by strong customer activity across various products.
The bank's asset quality has remained solid, with credit performing as expected. Net charge-offs totaled $15 million, or 12 basis points, while the non-performing asset ratio decreased by 2 basis points to 24 basis points at quarter-end. In response to increased economic uncertainty, East West Bancorp bolstered its allowance levels, bringing total loan loss provisions to 1.35%.
Ng took a moment to discuss the current economic environment, highlighting that tariffs are not new to East West or their clients. Many customers had diversified their supply chains as far back as 2017 and accelerated those efforts during the COVID-19 pandemic. This forward-thinking approach has allowed them to stay ahead of the curve, with Ng confident in the bank's ability to navigate any challenges.
The company's Chief Financial Officer, Christopher Del Moral-Niles, provided more details on the first quarter financial performance. Loan growth was solid, with over $0.5 billion added to the balance sheet in Q1. Residential mortgage demand remained durable, despite elevated rates, and commercial real estate balances grew modestly. The bank also saw steady mortgage depreciation activity in Q1 and has a strong pipeline going into the second quarter.
East West Bancorp's diversified balance sheet, combined with top-tier profitability and operating efficiency, positions the company to take advantage of any opportunities ahead. Ng confidently stated that East West entered the second quarter with a solid foundation, including a granular consumer and commercial banking network, and ample capital levels, allowing them to care for customers in any environment.
Del Moral-Niles echoed this sentiment, stating that the bank is well-positioned to capitalize on opportunities ahead. The company's strong loan growth and fee income performance have made it a leader in the regional banking space, with investors taking note of its impressive quarterly results. With a solid foundation and forward-thinking approach, East West Bancorp appears poised for continued success.
