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East West Bancorp Inc.'s shares surged early Friday following news that the Pasadena, Calif., company had a record-breaking 2011 and plans to double its dividend.
January 20
Fueled by loan growth and an increase in noninterest income, first-quarter profits at East West Bancorp (EWBC) of Pasadena, Calif., rose 22%, to $66.4 million, from a year earlier.
The $21.7 billion-asset company said Tuesday that total loans receivable increased almost 6%, to $14.5 billion. Commercial loans totaled $3.2 billion, up 48% year over year, and single-family loans rose 62% to about $2 billion. The company's net interest income climbed 10% to $200.8 million, year over year.
East West also reported that credit quality improved as its net chargeoffs declined 70%, to $10.3 million, year over year. The company's provision for loan losses fell 32%, to $18.1 million, from a year earlier.
Noninterest income totaled $21.7 million, up roughly 97% from a year earlier, as total fees and other operating income rose 14% to $21.6 million. This was partially offset as noninterest expense climbed more than 7% to $114.8 million.
At 45 cents, East West's earnings per share met estimates of analysts polled by Thomson Reuters.
