East West Bancorp (EWBC) in Pasadena, Calif., reported double-digit earnings growth in the second quarter increase in its second-quarter earned a profit in the second quarter loan growth following the MetroCorp acquisition earlier this year.
The $27.6 billion-asset company reported a second-quarter profit of $84 million, up 13% from the same period last year. Earnings per share of 58 cents met the average estimate of analysts polled by Bloomberg.
Total loans increased 26%, to $20.5 billion, as the company had more originations in every category particularly in commercial, commercial real estate and consumer loans.
The company experienced a noninterest loss in the second quarter that was 21% more than its loss last year, to $14.9 million. The most recent l loss included a $57.6 million indemnification asset from the Federal Deposit Insurance Corp., comprised of loans inherited when it acquired the failed United Commercial Bank in 2009.
Noninterest expenses totaled $127.9 million in the second quarter, up 35% from a year earlier. The increase was due to higher compensation, employee benefits costs and other expenses related to its January acquisition of Houston-based MetroCorp.