East West Bancorp, Inc. (Nasdaq: EWBC), parent of East West Bank, reported full-year and fourth-quarter 2025 financial results. Full-year net income reached $1.3 billion, or $9.52 per diluted share. Fourth-quarter net income was $356 million, or $2.55 per diluted share.
Strong Annual Performance
Full-year returns on average assets hit 1.70%. Returns on average common equity were 16.0%. Book value per share grew 15.9% year-over-year. Revenue set a record at $2.9 billion, up 12% from 2024. Pre-tax, pre-provision income rose 14% to $1.9 billion. Dominic Ng, Chairman and CEO, highlighted record revenue, net interest income, fees, and earnings per share.
Balance Sheet Expansion
Total assets grew to $80.4 billion as of December 31, 2025, up 1% from Q3 and 6% year-over-year. Loans hit a record $56.9 billion, increasing 2% from Q3 and 6% from 2024. Average loans rose 1% to $55.6 billion in Q4. Deposits reached $67.1 billion, up 1% from Q3 and 6% year-over-year. Noninterest-bearing deposits comprised 25% of total deposits.
Capital and Shareholder Returns
Stockholders’ equity increased 4% to $8.9 billion. The equity-to-assets ratio was 11.06%. Book value per share rose 4% to $64.68. Tangible book value per share grew 4% to $61.27. Regulatory capital ratios exceeded well-capitalized requirements. The board declared a quarterly dividend of $0.80 per share, up 33% from $0.60. The payout is due February 17, 2026, to shareholders of record February 2. The company repurchased 10,000 shares for $1 million in Q4, and $215 million remains authorized for repurchases.
Q4 Operating Highlights
Net interest income was $658 million, down 3% from Q3 due to prior quarter’s discount accretion. Net interest margin stood at 3.41%, down 12 basis points. Average loan yield was 6.20%. Cost of funds fell 21 basis points to 2.37%. Noninterest income held at $100 million. Fee income dipped to $87 million. Operating noninterest expense dropped 9% to $244 million. Efficiency ratio improved to 34.5%.
Resilient Credit Quality
Net charge-offs fell to $12 million, or 0.08% annualized of average loans held-for-investment. Full-year charge-offs were 0.11%. Criticized loans ratio declined to 2.01%. Allowance for loan losses rose to $810 million, or 1.42% of loans. Nonperforming assets were 0.26% of total assets. Provision for credit losses was $30 million.
Ng noted resilient credit trends, deposit growth, and a 17% return on tangible common equity. The company emphasized prudent growth and risk management.
