EWBC - Earnings call transcript Q2 2022

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Operator

Good day, and welcome to the East West Bancorp Second Quarter 2022 Earnings Call. All participants will be in a 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 Julianna Balicka. ahead. go Please

Julianna Balicka

other on Good and us Sarah. you West thank everyone, Officer. and like call, and within Act the the With you, for regarding Dominic would may due today the management forward-looking Thank course our We Oh, Ng, may review a or morning, during our the performance Company that statements joining Chairman Litigation me XXXX. of of of or to projections the second safe the statements Executive results forward-looking the to East caution conference number differ financial financial future for call the Reform are Officer; you, Chief uncertainties. of These quarter and Private this Securities of Irene events from results make to materially actual Bancorp Financial of of Chief risks XXXX. harbor of provision meaning the

description that our ended annual filings XXXX. Form a and XX, including with Commission, of our For for the Exchange XX-K risk the to the detailed could Company's report results, refer factors December more Securities please operating year affect on

numbers numbers. this X-K bank's measures. referenced of pertain to for call the adjusted today filed In some filings, including addition, to GAAP Please financial non-GAAP the the to Form refer on regulatory our reconciliation of

part webcast we call, the the that referencing as a available be Relations of will course the During on of the site. deck is and Investor slide

will the over on also available today's a in is will turn replay call format call I Investor website. reminder, our be Dominic. being and recorded to Relations As now

Dominic Ng

everyone, call. on will we second reported Good review quarter XXXX. our earnings begin I our us million of results net of our morning, for and joining for per Julianna. morning, for you, financial $XXX $X.XX This of income and share the of the of thank X presentation. Slide you Thank earnings

of million. of quarter including of million the grew income annualized $XXX quarter, share XX% per XXXX. earnings grew $XXX Total XX% for first interest Our annualized, net linked revenue record

Our XXXX income strong of annualized. controlled combined management, expense pre-provision quarter XX% pre-tax, second linked quarter growth, growth with revenue drove adjusted

returns XX% average tangible our Our average industry-leading. X.X% equity. XX% and profitability equity line are on We on on ratios assets, All average bottom expanded. returned

quarter second the West results business which East outperformance. demonstrate geared model, The for of strength is

and Our is this quarter rate quarter-over-quarter. balance growth for not of also points basis interest reflected expansion only revenue sheet rising interest net positioned well but margin loan XX growth

real major industrial mortgage. is and quarter of portfolios Our commercial commercial well loan across loan diversified estate, and second and our portfolio was residential growth broad-based

Our deposit of base and spans consumer, corporate second X% quarter. small deposits linked annualized and for XX% non-interest-bearing commercial accounts. deposits increased average average the quarter business, and Quarter-over-quarter, demand totaled

our deposits it We our diversification and growth supports because because strong prudent it high risk balance have to navigate credit support sheet and liquidity. The our a environment Slide summary our loans well capital important, a just different sheet. of is positioned Economic across helps not resilient and and confidence balance too. with X conservative is cycles of help importantly, but are management economic it navigate well through we customers changing, good presents culture.

As $XX.X of high reached total of XXXX, a June XX, billion. loans record

pace range our were year-to-date Based the linked billion with does previously. half. annualized. grew rate of average full growth updating quarter to $XX.X for our XX% the second our the All loans and year a outlook else XX% of Second outlook in quarter we XX% imply compared on loan of the from half up loan year first the results, XX% to a equal, XX%, are of slower to growth

and and the future Bank. about liquidity borrowers' West of healthy, are we are pipelines financial current East optimistic our position very strong, are Our

commercial impacting rates, due to interest rising may moderate and half of slow, growth. Also, may residential C&I XXXX and loan macroeconomic inflationary, However, of in chain first in high an of growth environment estate the mortgage supply real pace the volume other transaction pressures.

the second X% our June prudent average and wanted deposits deposits current were billion our XX, in growth. $XX.X as quarter Total economic of be to expectations second XXXX, were billion. total quarter in Given conservative uncertainty, in $XX.X Average annualized we and deposits quarter. linked grew the

we Slide in X. to of million Earlier common stock million Turning quarter, shares. the repurchased X.X or $XXX

strong. can exhibit capital on this are you healthy see the in our and As ratios slide,

third provides a capacity of which ratio Tier of a capital had of West tangible Board X quarterly XXXX. Company's East $X.XX common XX, with equity August X.X% total record common and common ratio XX, growth. As future equity to ratio meaningful for June stockholders on the common on X, payable for XXXX, of of quarter of dividend XX.X% us we The to declared in dividend Directors XX%, August is XXXX XXXX, of a has stock.

outstanding were and as sequentially $XX.X XXXX, annualized XX, Moving of loan Total of of X. as June Slide XX% commitments onto of billion with a XX, an $XX XX, discussion billion loans were portfolio our of XX% from C&I March June XXXX. beginning increase C&I annualized.

turn were specialized which and and the rate Our as and in $XX.X equity XX. X of real were well XX% recent and details our loans. private geographically, show X commercial diversified commercial and terms loans XX, in stable similar well geography including quarter-over-quarter C&I loan-to-value of real June geographically, XX%. Total our from at consist quarters, and by Overall, XXXX, second of billion commitments. March entertainment diversified estate type robust by was our Both property I our net diversified broad-based estate line credit. up would quarter loan. of is and industrial In annualized mortgages portfolio, XX% residential focus, equity Irene are in Irene? outstanding growth teams, loans position geographies detailed growth XX% over Slides type by equity to lending will the single-family March property call portfolios in loan was $XX.X across a verticals well lien residential commitments our segments the of and C&I regarding utilization quarter, discussion mortgage more our XX, that estate and for multifamily as provide highlight mortgage asset of growing of which with X, billion and consists statement. strongest home loans XX. grew totaled first quality our second income commercial to now a real June Slide of we growth from of details XXXX, and of I analyzed lines in credit home

Irene Oh

to our million to the by with and I'll ratio Quarter-over-quarter, as REO down from as XX basis by decreased criticized be allowance of June June were C&I assets basis and asset non-performing XX, to loans modestly Dominic. our zero metrics quality of to components points strong. loans. Slides Thank XX. $XX loan increased Other X March continues decreased of you, loans assets to and of for and XX. to Total as improved of largely of XX XX. portfolio Early-stage quarter-over-quarter down assets non-performing quality of foreclosed on delinquency loans losses our CRE asset start $XX point X.X% X%, X.X% total assets from down and The million.

for we to points loans basis X of During booked X basis charge-offs recoveries compared net or $X loans of million net points the of of annualized annualized average average the second quarter. first quarter,

C&I loans. were in second The quarter primarily recoveries

reflects as of $XXX allowance portfolio the quarter-over-quarter growth. The as million XX change allowance mix XX. largely of of as X.XX% Our March to XX compared in loans second the as of or X.XX% the quarter of loan well June loan totaled June as

anticipated slide to now a During the moving the income second summarizes discuss provision of quarter in was first the $XX investments losses and note, Of on we million And items $XX slide. This the the quarter. for because statement, of what had recorded $X timing. second million we is million line I'll of quarter. more following our tax lower million credit the statement of compared which credit of in in $XX.X first a quarter, details for on income compared XX. than key This other amortization to Page the discussion with previously

expense credit now. $XX amortization million the fourth the expect be in approximately and the quarter and of other $XX investment in million third to quarter We tax

full expense for XXXX first expense months $X Year-to-date, income million XXXX. tax was that was XX%, income the expected effective XXXX year. including We investments $XX quarter of expect with for half million of be compared tax credit approximately the the quarter will tax impact year rate the of currently six the in of rate XX%. Second tax the the first of tax effective second

drivers average balance we of on starting key net Now, interest the view Slides the net with and through income XX margin sheet. our XX, interest

compared average of the growth quarter. loans all across quarter categories earning with XX% shift second The XX% $XX.X drove favorable mix made quarter-over-quarter. grew average billion strong earning annualized. up or billion the of average loans assets assets XX% average $X.X in a by loan In prior quarter, in Second

$XXX.X $XX.X savings market CDs, quarter Growth partially million average or X% average by deposits, and accounts in decrease checking quarter billion demand by was Second a interest-bearing money of deposits average accounts. linked annualized. offset non-interest-bearing grew in

observed investments. we quarter, excess their customers for This funds acquisitions utilizing and

demand the quarter. Importantly, XX% quarter XX% of deposits made average year and which the growth average in second first in in XX% deposits, up quarter-over-quarter we ago with saw in our compared the quarter

XX. to Turning Slide

by $XXX points growing net linked Second interest million annualized. margin the of The expanded West net highest history quarter income income X.XX% quarterly interest in XXXX of was XX% interest quarter the basis by net East quarter-over-quarter. of XX

mix NIM points of expansion in chart basis plus waterfall the basis was increased favorable the the basis slide, higher NIM XX funds. quarter points, impact earning This reflects compression on the by margin the from from of points. expanded by by see the can second which asset you higher and interest XX this partially cost loan X net offset As yields, which interest-bearing earning of shift asset the

quarter The adjustments, quarter. average comprised basis of loan points contributed the yield average Turning yield yield second average plus loan of to points XXX, -- the Slide XXX increase an quarter-over-quarter. to in basis XX The average an coupon second overall yield the yield was XX XX. which loan

also June of loan the periods. coupon slide, three our for end yields was the As the major loans spot this In each rate we present for quarter last spot XX, on XXX. portfolio coupon

least to of see at rising or XX% our can on the re-price impact linked portfolio XX% XX% monthly. to and Note of rates rate loan LIBOR linked You as loans is interest each In prime the of rates. re-price. total, loan rate, these SOFR variable loans including portfolio positive

XX. Slide to Turning

quarter basis Our second average for X the quarter. cost points deposits was points, first XX from basis the of up

XX rising interest strong In deposits same our basis comparison, position the loans XX% a of rate as of target demand portfolio, cycle to the our has the levels spot over the deposits of started the points benefits rates by ratio of basis increase an cumulative and second translates year-to-date increase and relative XX spot cycle. XXX June to We coupon point rate from rate bolster funds been asset East loan Our supporting XX sheet basis historically on total through quarter. Fed loan our high period. liquidity XX% on beta beta XX basis XX% points. the This increased points West year-to-date. for was revenue growth average cumulative strength variable rate of in the a of characteristics These with balance a strong Bank, sensitivity, in the loan-to-deposit as

Slide income of from to on Customer-driven essentially first on million X% and on first income second sales $XX fee million $XX in down XX. quarter Total the the and Moving year-over-year. million, $XX were gains non-interest up unchanged in quarter income the from was net loans fee quarter.

XX. Slide to Moving on

amortization and seasonally expense was sequentially Second quarter or in intangible expense a tax investments lower up adjusted second the quarter. non-interest amortization, credits quarter, million non-interest X% from excluding million, million deposit $XXX $XXX and first was core $X of other

was the of expense year review compared ratio strong first the outlook in XX% XX. XXXX Slide ongoing for second updated The management. growth efficiency And that, XX% adjusted our I'll reflects on revenue disciplined quarter. with with our This quarter and now full

For XXXX year-to-date growth, our year-over-year to the XXXX to expect reflecting full we performance. full results, excluding XX% year loan XX%, compared PPP, currently year approximately of

XX% in increase our PPP, our previous interest an ranging XX% of previous outlook XX% from loan Our range net net from growth. XX%, of XX% updated Year-over-year, is growth this to income an from growth, is outlook to interest the income increase excluding to of outlook XX%.

credit tax expected approximately Fed year-end. of expense reach as assumptions interest underpinning well curve funds with investment the of excluding of growth as increase Our non-interest year-over-year, funds Fed by XX% XXX outlook income from previous June rate sheet, increases loan reflects XX, on Adjusted our balance to impact anticipated rate the our an growth, is outlook X% of forward our asset-sensitive as amortization for approximately expense interest to X%. growth updated

expect for to currently credit is to outlook for full we that range year. be previous XXXX, the losses up from provision in of range provision million. the for million For $XX the million our This credit of will million losses $XX in $XX $XX for

full This a call tax we will our service. previous approximately $XX tax be We third be compared that, the tax of to XX%. rate is back million. the year due tax our quarter lower an Dominic The effective credit investments closing placed as forecast. will that credit There variability remarks. outlook, With Finally, previous expense amortization compared for to the will XX%. now investment in expect quarterly pretax that I'll in be effective amount timing currently turn into rate of for expect credit now reflects change with investment the and our to outlook with tax which income XX% XXXX rate of higher is tax

Dominic Ng

In year and half shareholders of in positioned first forward delivering We're of we to you, XXXX. current financial Irene. a had the to navigate results Thank half the environment. the have well look strong closing, great our second to

sensitive. balance sheet is Our asset

We ample liquidity strong and capital. have

credit Our likewise is strong. quality

banking our and call to thank customers, open Our services results. I focused will efforts them and providing excellent now to their on wish the Operator? for associates are up questions. to superior I

Operator

you. Thank

begin Our Lynch. with Ebrahim Bank from Instructions] will the first comes We session. question Poonawala of [Operator Merrill Please America ahead. go now question-and-answer

Ebrahim Poonawala

things wanting question the actually conservative the you of out you maybe to around guidance given and you Is outlook. I borrow -- about mentioned just slow obviously be all four just half. growth guess activity customer first out loan some Dominic, slowdown last being that to assumes appetite or weeks, seen two in the laid have to down? over back your to begin

Dominic Ng

like, from there's knows of think to XX while one no is I to X months mainly and now, let's what perspective a the be say, our is economy prediction really here from going there. lot that,

interest side, we not be is what mortgages, year. not? of that that single-family in with to even Our rising, refinancing rate as we know active are like they and naturally, there And C&I this purchasing the this Would or at position families don't skills still cetera. going on one et Christmas is many the going going stage. No terms for be to to CRE, expect on consumers friends -- be knows would

higher, doing while we West there stage, slow but deferring it appears for well, this that the rising only the think -- to these me that maybe then And Bank that from a is so investment And may rates that because refinancing side, not East prudent major it's activities happening, acquisition to at also perspective of will would us down. logically, our are be expect slowdown customers really maybe to will be an when from are C&I future.

in So, negative do fine, go a that into as just that way. we that it just a overall sure projection that case an is lower just look to direction doing at are perspective in our we from to guide our customers wanted make while economy

Ebrahim Poonawala

I to NII Irene. us question on about fine the as Got assumption you, Give And one to exit $XXX a quarter just it. relative think closer guess guidance? to NII to million outlook, NII XX% we your $XXX point for beta on assuming fourth million. your implies growth deposit year-over-year your put And

to that make about sure we're correctly. Just want thinking

Irene Oh

Yes.

I up. where think to close pretty is number your Ebrahim, think I we'll end

really, betas, able the the to the entire East costs. industry, I On think deposit West lag been deposit for and we've

overall, operating had be that cycle. of than much percent have, increase our cycle the all realistically, members. that amount we're With pricing lifetime last of for rate expect beta we done we I'm out amount strong deposit of a we the at is strong the this the what do Frontline, have, the very our accounts I challenging. better kind deposits that this to we year-to-date. realistically, shout very comfortable beta will year. rest of very deposit the So of that to our said, But I or of point, the what think we've with that team of through want give in DDA proud to variable total

Operator

King comes question Next ahead. go Please Brandon from Truist. with

Brandon King

was wondering quarter. growth. I I there thought are and wanted also, of China in growth first it the loan growth slow what ground slow there? second was you pretty past year to half you're expectations your seeing the what know in into I on the and that's if the assuming

Dominic Ng

I Brendan, hearing your difficulty that have some it? what is Is question. --

Irene Oh

the of The growth year. second loan half

Dominic Ng

the China in first branch well, the China. year well in and About lockdown our Oh, our also Kong in Yes, quarantine headline the we Kong. Hong -- then all these the and of from Hong sure. news operation sure, done saw media half because has requirements operation Shanghai extraordinarily about

And of region up through them either up tremendous and being locked that in like at locked them home some so our very, while went of personally, associates working fact office able most And the difficulty very and few actually over business going clients. they came time, were take to only the in our through of good throughout get for not this they months. two a is the care

In and loans deposits. grew even fact, they

doing So But obviously, well. balance is really they overall, sheet. only were of China X% our

care, and technology, but our not and very material So a to grow respect, and have it's obviously, done general private in going very, manufacturing, financial equity, consumer media, impact pleased what cetera. energy, entertainment, et they to very, with digital that continue that to they goods, I'm health clean covers diverse overall performance, C&I very from business have

job at brought in. doing customers and addition to in well. that, customers So continue our their diversify they focus they And to very are really a high-quality have that done good very have

started U.S. place. the As you tariffs years can last several the putting see, now since for in

perform China, believe really that kind big of credit of like we our pristine. This expertise is did business not and because cross-border to any banking in We asset understanding and loan is quality bridge a they issues, strategy, our difference. continue have well. Our in China make our portfolio the

whether we the China really place or West, XX-plus the business, be in U.S. business for unique do expertise States U.S., United the of important that able that to they're to East between China we that in in business the doing the services Within have offer with proposition and the service are them, offer and value and unique doing that banks U.S. a allow percent the us cross-border Chinese business business, to banking in offer. don't relevant business,

that the able high-quality and substantially with. we respect, banking that exactly customers have to we're to in less we choose competition, So want do

So very we're everything with how pleased going now. very, is right

today, our associates office Kong So China and doing as of Hong and all obviously, normal. business in to back as are the

them be do second good of continue expect year. to we So to able for to the the work half

Brandon King

of of a Okay. as more the adjusted far the what And mean big kind kind the to a or the know there? particularly of XX% plan picture some I where efficiency is ratio. as positive what investments, there accelerate next is year seen lot you because was in operating ratio you've then the [indiscernible] I reached decision potentially And as now ratio picture a below, you and efficiency for efficiency business of question messages.

Irene Oh

Yes.

goes of our to to right? the support have make business. remain With the numerator don't have we Brandon, said, we calculation we think think end efficiency the denominator. the This investments normally. Dominic West, the through is we disciplined that spending, that to ratio we're East necessary I time trying on to for and ratio, Obviously, continued where on a

is Our of cross-border in as side products, see we're kind growth side, on particularly Also, as also, with well. the the bank. digital consumer that this the you asset-sensitive on we cash outstanding environment, talked management about, Dominic have

try that. we obviously, But increasing, we efficiency to revenue support adjusted just business. our the to need investments ratio, guide make that ratio with efficiency to to the don't is we just but recap, to So related

Dominic Ng

like Yes. of card Efficiency of are ratio return is efficiency a these report number, numbers. ratio, on equity, card kind return assets, report

in said, that we it well, to position. So proud at be looked and

what focused input on. we're expansion, balance the expenses like according margin growth, However, sheet also for. sure to to trying measuring growth, are quality, deposit interest much growing making more in and work we what such call really That's asset loan as the

Irene Oh

maybe add us. just ROA I'll and matter card that the numbers ROE of for more report

Operator

Our Instructions] Please KBW. McGratty comes ahead. [Operator next question go with from Chris

Chris McGratty

of buyback markets, uncertainty surprised just quarter. the prospective How the macro? use to the in rest the Dominic, we see in stock the about positive, the buyback, also the of think valuation, given do but

Dominic Ng

Okay.

-- it we bank than is On that the strike. opportunistic. are well, are more friendly, see right prudent And always conservative we we before When time do that relatively, and the but I we and right buyback, the but in said I shareholders do the think, place, other banks.

so that's second the we And in quarter. what did

that earnings Here's we now time that opportunity have and a the what but thing when We obviously, economists forward well, based I of going we looking it's And philosophy capital Bank do arises, or capital, to better we to And right interest -- not increase the with like economic that's in feel of rate and is one cetera, meantime, the just do something good go. step we time that continue kind for the looked at consistent on preserving the feel and and way two is will that plenty right in we'll probably forward. we et plenty shareholders. to today of when feel West do that seeing the that East pause and predicting landscape many economy very that wait. like

not. Now buyback reflecting balance if we've is doing we our have almost obviously, four sheet years back in last years, not several few acquisition were what you and the five look doubled most But West one banks East organically, that actively isolated at organically. ago, the to of actually done, was

COVID. to want in into when hurt that the of have So beginning the can did of right plenty we capital growth we buyback knew And obviously, when of capital didn't have we opportunity. have knew we and it engine plenty we that spend the not grow, we

return. And so of our very position is we'll that shareholders' always considerate be

it long-term to wanted look basis. at always we a However, from

buy to back. come not and that's this about conclusion buyback so how And we

Chris McGratty

may and portfolio quarter one executing And A If sure been for market deposits. the of ask common with that the narrow a be just is the think little I'm pocket great going levels. throughout thread on more. deposits the banks there's I to perspective. bit concern all a QX, That's it's could has in I Fed of what us any you. it's over book about with of be says pieces kind think could more what separated you going you've be if looked risk at Fed observations could and much your the the risk. do? share Thank to and might flow what But at actually out it does you how

Dominic Ng

rise the Bank have key very, East with there banking movement do part I is expect sure the East rate. they them a think, one rate many of care But of plenty volatility. unlike of for higher from we and many our we be pay Obviously, need years, not and way, expect I are at that in banks, of a We, banking West very them West deposit don't do deposit. deposit very we do lot banking out retail customers franchise we retail retail there, of that, regional normally bank will lot bank substantial when a side. franchise, volatility to make actually a stable, take strong the

about less to a products of $XXX we close million I last started the ago, we that, that, brought to have In about in a actually, more. grow checking ago, year even business example good year deposit six deposits. One just months, and DDA expect do opportunity is fact, we than a

at of in very able And be it opportunity in see first small look business most their to balances DDA choice. customers. looked overseas of continue putting to at United do investors of continue And West these that, to States. still find grow as activities that to them to money will in addition we I that, East We

So, and commercial forth. from some operating have of good. more to Obviously, the them we volatility feel so due that standpoint, pretty needs have we accounts that

the is more maybe But customers, So, a deposit of have flexibility got higher with much we something to if we to are keep we feel banks. our rate more little we bit we on work of a than room plenty to close that also need rate obviously ones those our it. pay that retain that, today, do because deposit, other eye

Operator

Shaw comes with from Jared Fargo. next Our Wells question go Please ahead.

Jared Shaw

morning. to guess, in the look I it your you Good can deposit scenario like, a Maybe new this loan think just for I When environment? overall look Is in guidance you guess still ratio it? you what's DDA that that, on the side. at Thanks. the, expectation for some growth initiatives. Dominic, sounds deposit maybe up the to And of way Hi. sort and little bit deposit see following balance at NII, of that these right growth from

Irene Oh

We do entire expect grow that deposits will year. for the

think the And quarter, just we have, retail on base the we also that With as quarter-over-quarter, clients, saw not will the you quarter basis, see small had well. balances this as nature. retail on Overall, especially then would the made well. this are have in point-to-point, example, down. as an just second granularity we've I average kind quarter one particular in on only the tax, client business on comment Historically, for are variability, related to deposits well, that the granular payments property broad side. I that side, side the do as Dominic we very the commercial mentioned, a deposits said, and of in on tax

continue go cycle. that something that's through we to the we So help us as think will

Jared Shaw

loan at, is the is guess north assuming, backdrop you'd assume of be we ratio growth XX% that that we if there? with it's could I that comfortable back getting loan-to-deposit But should

Irene Oh

the commented there. is we loan granularity something is before. the XXs, on the High very with that have. deposits growth XXs we're comfortable if low Yes, this particularly We've of with, again,

Dominic Ng

from We XX-plus of have deposit a like pressure room. a at to don't of balances percent plenty due we have loan-to-deposit problem this loan ratio growing because

have of half So, economic because deposits because reason will second expectation and not of can we that we turned and to that very loan to It's that the does we for find good that not a outlook just it. support it pipelines But overall high have if momentum. -- loans we high despite look simply plenty we've the do we book, growth high-quality very we out good got the continue fact good. the

Jared Shaw

as Great. just follow-up a And then as question. my second

increase just revenue better in performance Looking are is new the performance on the drives, franchise? guide expense at better there based the that there initiatives for and there, primarily some comp? incentive Or

Dominic Ng

make incremental major I philosophy of year. in caused major, mean, big volatility West We I and is loaded East investment. a that project every never year, single do always really our one and earnings. mean,

all because inflationary consumer gone up wagers course, to continue we'll in we recently. X.X% simply of out and saw certain the because factors invest. So number price here And came other have miscellaneous are expenses of index there that type

while So, that that slightly. that is expenses, will very our our we expect go it up we we're prudently, managing position feel

up to So that's increase. increase why X% from we're guiding it XX% to X%

Operator

Our comes Davidson. ahead. Clark go from D.A. Wright Please next question with

Clark Wright

Wright growth is loan Tenner Gary This on the Clark question this pertains My in morning. guide. for to

third the is And whether in the the so, the not could growth a pace quarter? half, or quarter I be fourth of the the I drop-off balanced third fourth? drop growth, or off into your guess just mean, building assuming And half pipeline in projections given second first and it surprising assume lower wouldn't maybe between but if the you

Dominic Ng

just projection is do at because Well, this point, I have are just being we -- how less the prudent we it? more put -- again, We or because pipelines.

in Sometimes result funding. not pipeline does

make move which I Our it prudent we and home doing buy will deals looking some too because mortgage the conclusion make a decided are projection or call making, go a up And on down third of there be haven't to our two of their thinking I if the may the to maybe make months that mortgage who I simple second prices transitional expected scenario, Transitional if We high, yet there, lot to we but I residential of buy then be rates is deals the in do to kind of a not the from are Fed a three time. months would kind there enough expect looked it, less anticipating. may there it. may home maybe the then a I'm not be what that, would that good not economic this still deal. the doesn't in It time price that suddenly right we're refi in at just may expect or are answer pretty stay to are shouldn't the a very lot to you people rate at continue doing that like to, now, come high. that when investors, that the again, rates so it now, sense the what great attractive. now interest that very home, rates downside is way a like a things area. expect up I expect people customers because These be come forward. mean, and from yes, much the about decided but And is

So business that would discourage you people type of involved maybe real making investments. estate certain with. In or they're investment make in

our take to you that the end right, people recession, tail distressed just the are recession, about get relationship a what having you and the very the despite which jumping maybe when is advantage the of logic branch this do People are fact we sure, So, that of more -- certainty our not is there having and break that different left deals, our it going get and bringing taking the once to prices looked mind so into just horizon some or in be, out in would new and a through as they a managers out forth. once at there managers naturally. in opportunities more kind would more clients of are we that

So is some that the transitioning strong uncertainty if, see third that path; slowly quarter, a into the and of now fourth just we in that however, we maybe growth. are positive, right kind assuming what expect obviously, for reason, and loan we're we this will changed standpoint, in things for

Operator

conference question-and-answer concludes like would over to turn for back remarks. Ng I This Dominic to closing our any session. the

Dominic Ng

again you you thank and are talking we you. looking Well, October. the forward in Thank all for call, with joining to

Operator

has concluded. conference The today's now attending presentation. you for Thank

disconnect. may You now

East West Bancorp (EWBC) 21 Jul 222022 Q2 Earnings call transcript