East West Bancorp, Inc. (NASDAQ:EWBC) Q3 2024 Earnings Conference Call October 22, 2024 5:00 PM ET

Company Participants

Adrienne Atkinson - Director, Investor Relations
Dominic Ng - Chairman and CEO
Christopher Del Moral-Niles - Chief Financial Officer
Irene Oh - Chief Risk Officer

Conference Call Participants

Manan Gosalia - Morgan Stanley
Dave Rochester - Compass Point
Jared Shaw - Barclays
Ebrahim Poonawala - Bank of America
Timur Braziler - Wells Fargo
Matthew Clark - Piper Sandler
Chris McGratty - KBW
Ben Gerlinger - Citi
Samuel Varga - UBS
Andrew Terrell - Stephens

Operator

Good afternoon. And welcome to the East West Bancorp Third Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions]

Please note this event is being recorded. I would now like to turn the conference over to Adrienne Atkinson, Director of Investor Relations. Please go ahead.

Adrienne Atkinson

Thank you, Operator. Good afternoon. And thank you everyone for joining us to review East West Bancorp’s third quarter 2024 financial results. With me are Dominic Ng, Chairman and Chief Executive Officer; Christopher Del Moral-Niles, Chief Financial Officer; and Irene Oh, Chief Risk Officer.

This call is being recorded and will be available for replay on our Investor Relations website. The slide deck referenced during this call is available on our Investor Relations site.

Management may make projections or other forward-looking statements which may differ materially from the actual results due to a number of risks and uncertainties. Management may discuss non-GAAP financial measures. For a more detailed description of the risk factors and a reconciliation of GAAP to non-GAAP financial measures, please refer to our filings with the Securities and Exchange Commission, including the Form 8-K filed today.

I will now turn the call over to Dominic.

Dominic Ng

Thank you, Adrienne. Good afternoon. And thank you for joining us for our third quarter earnings call. I’m pleased to report another strong quarter of balanced growth in support of our customers.

Third quarter 2024 net income was $299 million or $2.14 per diluted share. We grew average loans by 1% quarter-over-quarter and further diversified our loan portfolio by emphasizing residential and C&I lending. We grew average deposits by 3% quarter-over-quarter through continued growth of granular customer deposits and relationships.

Net interest income grew by $20 million or 4% from second quarter, primarily driven by increased income from loans. We also lowered the cost of average interest-bearing deposits in the quarter. The average cost of time, money market and savings deposits, each declined from the second quarter.