EWBC - Earnings call transcript Q3 2024

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Operator

Good afternoon, and welcome to the East West Bancorp Third Quarter 2024 Earnings Conference Call. [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

operator. you, Thank thank East and for us joining Good Bancorp's you, Third review West Results. Quarter to afternoon, everyone, XXXX Financial are and Chairman Moral-Niles, and Dominic Officer; Oh, me Irene Officer. Del Officer; Chief Chief Risk Chief Christopher Financial With Executive Ng, and recorded on be available being our is for Relations Investor call will This website. replay

actual Management a may referenced or other projections of during deck available differ slide uncertainties. discuss make from call is Management to on non-GAAP statements, may which results our risks and The financial this Investor number materially the Relations due site. may forward-looking measures.

more of with filed please detailed refer For including Securities factors a measures, GAAP today. filings our Commission. description X-K the and of a Form reconciliation to financial and risk non-GAAP to Exchange the the

to the over will turn I now Dominic. call

Dominic Ng

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

Third grew granular or quarter diversify portfolio XXXX net and of diluted by X% and grew deposits and quarter-over-quarter emphasizing growth loans C&I our relationships. by X% average share. continued through further loan average residential deposits million quarter-over-quarter per $X.XX We by lending. customer income was $XXX We

interest primarily Net from by income of from second million driven X% grew income $XX quarter, loans. increased by

money the and quarter. savings average also quarter. declined interest-bearing time the of cost cost second of market We The deposits lowered deposit in average the from each

approach the execution well management complemented quarter. to by deposit lending, were credit and and was and us consecutive wealth growth revenues in consistent third driven serve in our customer fee relationships, broaden reflecting sheet balance strength These our ability fees, disciplined deepen of notable to Our a quarter record by income. management

nonperforming about our profile. East loans, Nonetheless, managing remain nonaccrual risk we the and vigilant quarter. our credit and risk managing proactively asset ratios are West during improved classified

over for detail XX% for Chris, turn share returns common tangible of return the financial generated equity. substantial to our quarter. performance. per on value I shareholders growth more reported you X% on tangible delivered book and average during have will We We it

Christopher Del Moral-Niles

Thank you, Dominic.

X. remain on quarter-over-quarter. Slide remarkably levels the loans our Residential and going pipeline was QX. loans quarter into to consistent each Turning by strong and for Average mortgage X% grew production period-end

residential expect equity pace. C&I by growth, respect mortgage growth and its at We verticals. entertainment notable With private current was to in continue it our to strength driven

We similar expect growth QX. have C&I to in also

In business, real a of and clients estate, foresee the to healthy long-standing in commercial CRE level we QX. commercial our growth real our with in Across modest only saw we multifamily loan estate QX. growth of during continue rest work overall

X% X. billion, Moving business banking on average a end-of-period with to and deposits $XX.X on deposits and growth by across to grew customers. Slide consumer We commercial record

noninterest-bearing total Our at of XX% mix deposits. stood deposit

liquidity. on-balance our summarizes sheet X Slide

profile quarter, steps of third QX, we billion During duration floating liquidity the our to primarily year-end rate supporting took $X securities billion, in cash earnings. billion billion plus $X enhance a while ] floaters Ginnie [ including equivalents The We at added grew further our $X.X and of $X short at securities. nearly by portfolio securities $XX.X average and billion. Mae stood to net

securities average points increased purchases. from Our QX, reflecting XX the yields basis

quarter. to the of assets the net total and of income end covers XX% rose securities cash average trends. third our Our portfolio at X interest Slide

by increase income net from dollar from driven second interest income Third loans. million, million totaled greater $XXX primarily quarter quarter a the $XX

the XX of the At basis the decline interest Fed of end rate points end X margin was points, the points partially Our the our basis net X.XX%, XXX total quarter, from deposit basis quarter, stood quarter. cuts. third of costs prior from at reflecting second a down

basis end-of-period the points end quarter, XX the prior of at points down basis at XXX third period. total deposit interest-bearing Our from costs stood the

quarter since decline to to continued have costs basis are lower end now and XX still. X approximately deposit points total Additionally,

noninterest support We Slide to sheet ] [ from our summarizes X balance here. growth levels trends. income medicine expect

strength we activity up while strong cash fee by mentioned, The quarter, Dominic significant on management driven achieved wealth focused As a equity and record commercial was and buoyed $XX strong million traction markets. income in of syndication by execution management quarter-over-quarter. growth X% strategies level solutions, was this

now I'll credit turn comments for over capital. to the call on Irene and

Irene Oh

strong. XX the to the quarter-over-quarter. X, Chris, Slide fell and assets all. third assets remain of The to points or a you, Thank XX asset quarter whole and credit good million portfolio ratio increased X XXX. the loan to compared were $XX annualized the quality slightly points second mention annualized in $X points Nonperforming to losses quarter point X while $XX stable basis classified basis to Net total million special of by rose basis points X.XX%, charge-offs trends total remains On to decreased in credit Provision as basis for our from loans afternoon million. basis second quarter. XX

criticized and problem remain level manageable The loans, at and of loans levels. assets absolute low nonperforming

scheduled balances Regarding of outstanding total estate in of are to set year balances as maturities quarter real in outstanding of commercial and mature the XX, the are XX% mature to X% XXXX, fourth XXXX. loan September of XXXX,

risk. the and fourth specifically, of XX% We XXXX. our set proactive in and scheduled vigilant in to remain loans, credit office managing mature outstanding For quarter balances X% mature to are are in

fourth Based and basis continue to know XX points. year to in of quarter today, range to on XX expect what we net be we the full charge-offs

loan quarter appropriately believe our September million on third of portfolio allowance end. XX, X seen the credit point as X.XX%, $XXX the for XXXX. or As losses ended XX, basis reserved We than Slide is period higher at our prior

ratios payable stockholders Tier on dividend X, November while at X.X%. $XX Slide remains East averages. record the quarter well-capitalized currently be bank on XXXX. for stands buybacks. is XXXX, regulatory and capital of above well fourth well million equity at authorization common ratio XX. will that regional in requirements to future remain available institutions ratio have West West's XX.X%, tangible West's to November capital excess East repurchase equity common We for regulatory Turning of XX, East XXXX of X

few share on for back a now full Chris will outlook to Chris? comments I year. turn to our it the

Christopher Del Moral-Niles

Irene. you, Thank

Looking to our as unchanged September XX, outlook. year-end. are curve of from assuming It's updates. Slide These year reiterated our full forward the unchanged we've --

year of growth expect We full range in approximately a end-of-period of quarter. the X% X%. third note, continue grown loan would end we've to X% I through to the And the

to X%. decline interest net X%. We year-to-date, also income to the range X% net full declined expect of year income still interest And our -- has interest in

Operator? With that, I'll now open for additional questions. call the

Operator

Instructions]. [Operator

Manan Stanley. Our first with Morgan is Gosalia from question

Manan Gosalia

more It check deposits than you grew about on yet to wanted for looks loan get growth towards at building it a were to Are that? growth faster again. pace you did a that grow lower we in liquidity? I Or the more able loan-to-deposit flexibility just faster as and deposits working for like you you you launch gives ratio happen talk into that Can rate. rationale funding you and deliberately expect deposit XXXX? the

Dominic Ng

for we Thank think affords flexibility. question. you, it more us Yes, Manan, the

lower we and have pricing from As benefited note, you'll into to actually inflows. quarter net still lowered here during have and QX the continued

wind our as net can help we inflow so take nice that in and profile optimize sales. it's how about been us liability our move And this forward, but think we'll organic

Manan Gosalia

you a then maturing Is And the lower slightly I function it. XQ. know some Got the in rates? have of midpoint guide NII of implies down And swaps that from levels.

us just you the how can quarters? over and expect to next So you trend NIM remind few NII

Dominic Ng

they good feel that would have impact an other, pretty range. think until January do side won't and one of positive I they effect. throughout dynamics. that in but the I the QX February, have the I end the be say the we're at of quarter and come swaps say a we'd off inside And will would really we QX about QX, or didn't I into or say will midpoint the

we've into think $XX that previously runway numbers. of I million north quantified the

Operator

from is Dave Point. with Compass question next Rochester The

David Rochester

XX% it just I TCE updated seems to hard down, wanted quarter. get helpful it's to just But Just some got on capital, rates know keep and like thoughts I this you lower going your that ratio to pace here. without balance hit that really seems and buybacks buybacks continues on kind of It sheet grow strong as a at like to TCE level continues here. we're growth less

there would any be great. So update

Dominic Ng

without XX, to were move Obviously, We AOCI and in to are patient AOCI, the and [ of thankful opportunistic for continue we look be sheet to ] approach to as pickup capital XX-ish for but level we'll that optimize we the there. opportunities ], forward. XX we our in the continue right sort were -- to Sure. balance targeting level that [ that brought we

David Rochester

thought to asset to cash stuff securities Okay. parts. plan liquidity I'll exceed different to with on is those here fixed Great. into book some two management. continue continue growth? to start as or flow take to reduce to here, then And sensitivity? the Will any the Or just deposits And just here? build assuming on the So rate going grow those

First part deposits through that, taking on us we disciplined so. being run to off think pricing and very to I about we'll perfectly may of as we and be some a higher look continue That at QX, deposits, lead fine. our the will are do the cost deposit and move that

balance focused on to optimization. looking the over leverage further driving or not be are sheet, we We will the leverage necessarily very obviously right and

bit put that in We've think strong a fixed thoughtful second floating. been last rates in work and over money to we've of particularly have the month, here, the little themselves. presented backup about put from your question, that. On seen of versus we've work with I benefited floating, fixed, to opportunities and few a part We opportunities the money the

mix we'll So right in putting on portfolio. thoughtful the that be about

have every $XXX will million portfolio quarter. million of We to $XXX churn

that we're positioning. so the reoptimizing constantly and at And portfolio looking

Operator

The Shaw next Barclays. with question Jared from is

Jared David Shaw

Thanks. Yes.

not over the and here? for -- it with to Just but expectation grow and could other What of quarter. last we've referenced terms capital if with you've the in observation of capital is, out business no management the we you buyback in or that else not going seen buyback sticking the it this consecutively past discussion, what see expect where you're of capital, few warehousing in the we're quarters the growth

Christopher Del Moral-Niles

is for and their to there be we needs, loan than and otherwise to desired. first our our growth seen and we've might Obviously, meet customers slower highest relatively priority have

So always that a competitive be priority; would to be Second that -- dividend. growth priority continue but our will

should the and to money diligent work when how to thoughtful before and and in sure putting and appropriate. about buyback, and If lastly, we go, patient some I very Third we'll powder we our if into as inappropriate. thoughtful think continue nonorganic explore given and outlook; where and to dry time is those call time, about that be on we're the that we making And we opportunities be the to the consider make very we'll right next be we'll to from year-end that year approach three approach have first will continue fourth.

Jared David Shaw

All And sort of time like these in maximum see growing there you'd the Okay. or of deposit a your like to money prices? success you favor. new the lot pricing at is you're in on time, the percentage right. get of deposits had on these it then the and side, a happy Is a working offerings here pricing at to door sounds the deposits

Dominic Ng

I I I be today points good at earlier we'd I we customers down think money was in that the X.XX%, on over further that that new note went writing through able in in higher to we're that comfortable at especially this a would during the roll price And rolling year lower he of me we're curve seeing those risk than at opportunity. as with retention with little year, your deposits in the $XXX a looked brought and at the note those review, on we negative them to from the campaign, opportunity idea year, bring would million. at the -- out Lunar the our the

our And essentially so Fed will points fact has dropped basis XXX feed positively. prospectively points, continue the has the by XX despite cut to only already pricing and basis that CD

working was moved now. our I favor timing So the in curve Fed right at and that think the C&C them in down bring our of as early, roll

Operator

Poonawala The is Ebrahim of from next Bank with America. question

Ebrahim Poonawala

and like just been X% has Dominic, following from or -- high elections, feel if out XXXX, maybe looking for once if would C&I East you to at of maybe to standpoint, loan your like is West guess up does progress thoughts, your consolidated loan growth, hear love on client if So it XX%. And I back last. to a Chris that of we growth, since could perspective growth next economy it maybe continues as back I to share get the about kind return single-digit loan year has the over the there we

Dominic Ng

plenty have we perspective, bank's just of the capital mentioned From that about Okay. talked Chris -- earlier. we just

of do we'll for demand. declines And right? sort have how of to right finish think Well, mean, so in not. to it a calling close election seems much the So I what are goes, race, make even know for me like I too see don't now, it rates will the will we a unwise and flexibility we prediction all X because all day or the be media the

standpoint, got of West that with East just position that think position sheet. that take a way is East in I always So and care what that West balance ourselves to business in we a fortress-like our

then But higher condition make then strong and a opportunity investment of it that or will bit accelerate our bit. great capital, and naturally, naturally from to And when customers, fund work of for of will and with. customers demand make difficult customers loans still that some very cushion growth for the will economic is higher the a like and in growth, have in have And loan we then terms slow trying our we little respond we obviously, kind we arises, for rate. call a reason, down muddy to capital

basis think that's it around loan it's customers can in say year, in XX% somewhat holding rate, to our unusual normal see you the utilization XX% East And at plus And year, to the off. quarter. what difference. would this I of drop have happened West we Bank are So and normally this XX I points this growth

would adding loans East whatever out that is despite not to there But customers utilization, what uncertainty that be customers. will find is loan the our to a then we're to we not growth new our because continue concerned strong. Loan noticed reduction that way be these want cause them down about I C&I still if grow in loans and to think draw So

customers. add to continue new We

existing We a goes. to they would XXXX, new whether that drawdown customers, how the in what whatever will do. see I are not, circumstances continue dictate economy of confident they wait to we customers. that have do But then more think add or we'll in terms bit to And

Christopher Del Moral-Niles

And just commitments continue to to that, grow. on seen noting, would we've further I

only X% quarter grew average this and a grew commitments fact, In we end-of-period loans in period where X%.

up we commitments we So point But outstanding made it's year-over-year, echoing X%. that faster grew trends. look than the if Dominic about actually utilization

come us, to have pulled continue the in us to with And put talk our about continued haven't reality on engage is so yet. customers credit to opportunities to place. they to just it continue to They the trigger

it year And so themselves we're could optimistic ahead. us conditions that be a good for the right present

Ebrahim Poonawala

it's That's guess around us Remind there in the where -- look your of When regions are in opportunities helpful. count was or question team I markets any Or hiring China? new year-over-year, of XX, branches And any Slide be Greater on you're offices it or investments. looking United adding States? I at just at terms we other around been XX. in branch just XX, the the

Dominic Ng

some additional So be some appropriate further hasn't deepen we'll current replacements, do have office future. markets. in about and network -- in we do at upgrade done across or been point and not that, pruning any would branches in to that markets. and we've plans has we're rep network, we're at we will branch China. Singapore it but that call new continuously talked not we've additional We time our But to and be entering look that made currently don't contemplating the have but what in our a opening

Ebrahim Poonawala

capital I may heard follow-up, And Chris, correctly Got on priorities. if you I if it.

bank. nonorganic of super You West a did mention think don't East opportunities. acquisitive I as

but make bank. Just elections might there make you. nonbank either know to a are an from the have would impact, standpoint, for sense. I that deals what sense bank also may us talk Thank

Christopher Del Moral-Niles

Last year, significant a an the fairly asset in bank investment made management company.

of kind be to fee-driven think always those are of going I opportunities interest.

think our right light depositories appetite for is I now.

Operator

question next The Timur Fargo. Braziler with is from Wells

Timur Braziler

afternoon. Good

provide some what higher in cost some dollars us can around maybe maybe made Chris, for you deposits to willingness as XQ choose. quantify Just your the deposit comments can please. then, that Maybe statement color time you about you XQ? if churn And walk conversation, let looking on they the just is back some in well, had

Christopher Del Moral-Niles

Sure.

of got quarter, then future and $X billion about that that rest another about the 'XX of CDs the into roll of behind quarter periods. second in roll billion here fourth we've out $X will quarter are So the billion in spread another The $X will in that first 'XX.

accretive in to not happens to special XXX. funds Xs, CD take And everything which has hefty given around frankly we're position, a to pretty it very anything be incrementally move continuing if our put high that we We it not anymore. that's below to so the active Fed cash just dollar we've is are that's we're or anything incremental accretive the what and got currently and doing at being rate,

Timur Braziler

fee where Great. term? at And XQ strong the that wondering last revenue maybe near to some is of $XX the that there frenzy sustainability good $XX looking income, just million, then million quarter anything results. maybe higher rate was just in drove month Is Is here driven run those level. those rate the in user a that of I'm

Christopher Del Moral-Niles

positive number business in Look, volatility the engagement lot the some has cases some efforts of rates great from by but our benefited core management teams. helped sales on trends markets I our with think focused have rate teams has the wealth facilitated a fee

those could conditions change, But the are soften. that real. market So dynamics obviously, if

been both efforts good results that which our the sales we our the last over pleased teams, sales and quarters, quarters. couple to and But it focused record of efforts have nonetheless, here driven ascribe of have we're by would largely

Dominic Ng

obviously, do management, I earnings in the shows would say fees, obviously, rate which all maybe can is grow But out for foreign equity that from it's by market income items do brake situation. want depository the environment. to fee East -- hitting I our growth, situation so private less then And to these see that fee the wealth have line release, something West And cash Bank in environment the with the also do really side on continue and exchange. relatively influenced to banking, management you it income point areas.

loan of lead when And mainly we some the syndication. side, syndication fees from

the continue foreign we are really growth, interest whether growth are that that rate of more offer to to to would those say areas, help core for that continue that management treasury management, of more we in continue East meaningful and have syndication. all expect we exchange banking we'll Bank cash with services that accounts plus that So services this and provide to do we on things like work pleased efforts the these kind operating it's These sophisticated I hedge incremental lead the very their are for lender to or us are important sort be in to order West to future. clients

Timur Braziler

then one one like And wondering drove pretty But commercial the line in XQ. other what nicely actually Irene. it. bit. then a maybe look Got all for reserve build, if that looks that real build? allowance the at declined estate last CRE you up just nonperformers incremental quite It I'm ticked

Irene Oh

there or drivers to those nonaccrual look just allowance as I allowance and factors, Yes. we we're do just for qualitative for at the fair The a would we looking Well, the et coverage loans regionally, quantitative from and first, isn't far there clarify, things want the as substandard shift just of of not mix with loans. necessarily have that at, are amount cetera. up perspective it still

loan, from So related something not just specific one more to broad-based. very necessarily

as something how in is and But But as overall the grading, comfortable real portfolio. to monitoring the portfolio continue as level, just the estate as monitor. overall, that the far overall, the we we're allowance we're portfolio for Pacific loan actively far

Operator

next is Clark Matthew The Sandler. question from with Piper

Matthew Clark

easing remind us or cycle? this Can beta deposit what us on you update assuming you're for

Christopher Del Moral-Niles

Sure. to we over XX% better the have seems for here materialized have would us We've beta, that assumed weeks. to or a date last several which

Matthew Clark

initially, obviously, through Okay, and then but through cycle. the the cycle

Christopher Del Moral-Niles

Yes.

Matthew Clark

to that Okay. your in range might becoming assume you be in as assets? expense sustain Great. this slow? year. Or And of towards reason level X% we growth adjusted going Any just that $XXX of to noninterest billion should kind believe on you X% that then growth march to

Christopher Del Moral-Niles

Board look be for next I to think budgets we go growth-dependent. conversations somewhat here about some have and year, Obviously, with the outlooks at will continue and and that. we'll it

probably we be investments make a would the continue to spend want faster the averages. than bank X% XX% But folks be, would that I off But that will base we lot something. of a longer-term to efficiency to that XX% and expect continue off we growth be that to a rate that slightly a need kind I is than to historical again, less remind ratio or X% will

Operator

is question The next KBW. with from Chris McGratty

Christopher McGratty

it down quarter. QX? for for should feels coming NII back it I guess would NII fourth NII like the up Chris, to in the what to moment, a be I in mean be take flat

Christopher Del Moral-Niles

that pressure. on quarter it there asset us At and to on put points, to yield another us that we're get it, positively we than assuming Look, depends there But function we're [indiscernible]. was going how this are. down, of many with asset curve the rate what not single basis downward think yes. with have XX will growth sensitive something would assuming going that I are better to that's probably end point, supplies we're XX the -- top and We're Fed cuts get offset X,

Christopher McGratty

like quarter So saying? is we growth December what NII fourth of perhaps kind the fashion, support November orderly in in and see 'XX, would that you're

Christopher Del Moral-Niles

Orderly end that, as of in But we we see frame puts of to lower if fall about good where I we January. projected in headed. us on it and see growth pretty very feel as we're outcome. think right that good quarter a were responsive we was And you'll cuts short the for we're deposit modest asset small, at costs that spread managing sort and

Dominic Ng

have harder. We to work

Christopher Del Moral-Niles

to have work harder. We

Christopher McGratty

maybe then just it. And on Got $XXX broadly billion.

I as HQLA. about Can several but know you're years, the how You guys in just how you have the just cost on overall the about you. thinking planning really you've us dent P&L? all-in you're a thinking made got remind

Dominic Ng

right. you're Yes,

but on wait. working but some the that time. one know of will plenty hand, over when. I mean, going when, been we other $XXX that's have It's -- that fact at do over to We we But $XXX be at be we're don't I the towards just We've point, billion. not billion. point,

is to that to just is will our in we build continue rational that position work a the infrastructure at up be to So that needed all way appropriate level.

So well cetera. we a what have executives the our resources, are currently et kind what And of met and of the have senior aware to criteria. they resources both and already or that and we we rule what human need the requirement fill potentially that of also infrastructure in gap technology resources

disciplined So then working very we -- manner before $XXX not we at the was is a are be that the the goal And we like position. ready. likelihood That's some of very just will point, and be we'll ready towards in into turn million.

Operator

Next with question from Gerlinger Citi. Ben is

Benjamin Gerlinger

give rates. CD the X I of X.XX, pipeline balances I XQ, XQ Chris, the only ] Lunar correct if I curious if you willing pig I bit ask reason the was gave is a [ beyond. and it think New have Year. on And to months. little a was wondering, you The for you're was I you, in call the I

was So XQ, kind XQ. it of XQ,

due like of at XQ two is X% the cuts. in kind So

we assuming expectation from the think it I CD XXX in of kind XQ, get Fed? see on basis roughly another a points is to pricing lower reasonable

Christopher Del Moral-Niles

observed QX roughly that think we what point we that I got QX forward, versus Ben, we QX. what XXX have is we in in did savings look in as basis

So curve quarter, that potentially think that's we're we'll today similar the there. next forwards those will the we something see is, rate in. the benefiting fact X look, we shapes see I priced your from into how And as first got yield question cuts roll have out.

in, the quarter curve additional we and says So kind that be, may of cuts yield see again. get probably priced if there's there which the still savings to first we'll

Benjamin Gerlinger

Got you.

Okay.

seeing sure. So think That's it just have kind for about of a the growth have they walked also client the conversations, of banks time [indiscernible]. back for a know XX a then growth lot same clients we a at I on of positive spark a of your terms to are an anything the kind inflection are through of materialized. people couple kind see for it that you talked a of swap [indiscernible]. to you as might been like Is basis specifically and When -- Are positive year, there kind start Are you points calendar pointing most catalyst anything rates? looking just higher? next of point year? in of another

Dominic Ng

I there's not we that Well, really business line clients this I of -- in mean, are mean, no are.

think people all of about a the So it's they sort it's also don't fund this set really like different mixed rate of all and -- but time, bag industries. from

it's view. own So general, their just high. we has months everyone It's as in then today, even still few relatively rate looked at ago. And

industries this conversation whatnot. little a or it bit make from acquisition with do and them is, we for without And different we where different makes maybe buy to that customers it [indiscernible] expect so it substantial investments that difficult

commercial is investors estate a that of folks this would that real And real large, right and distressed estate are then time acquisitions. also now, in not may with a rate -- being right distressed is into lot traditional by it look I really assets the feel say, make necessarily good opportunities. category. at other to where are the not They than

of would how say bit. slowed -- size loans We'll I I that's demand all, of see the -- in whole a the the down lending the overall goes. land banking has the -- all been that, industry, it in so what And just

and XX necessarily even up rate As to a the there would then they cause from x basis, And indication year. long to that do the fact sort as in just do big XX reply believe picking and many to way, is that point drop and but not next they continue will move forward. if continue business make start most of of have cuts to that, likely confidence number message I basis

Operator

from question UBS. with is Next Varga Samuel

Samuel Varga

CD months X Chris, on Were those specials that you the specials? mentioned XXX

Christopher Del Moral-Niles

Yes.

Samuel Varga

gave you to a on kind beta. on made of quarter-to-date costs. then And beta the just deposits. deposit of past I guess Great. Okay. looking get the progress I I XX% X/XX Sort commentary like the on you've on at total

to there make a out in betas? Given up XX% where out? off laid CDs, maturities of is and the on the gradual down the today you of you Or that quarters quarter that cycle between sort more here laid rates one path such you next bigger should that step roll is expect expect we for the mark X the roll towards step a

Christopher Del Moral-Niles

But of the we've very more feels it's proven think seen that guidepost I gradual rate for is we're will in cut that's through will sort but Dominic cycle XX, the of next as a a the achievable now, fairly I with here assuming beta based path. that first Fed, gradual the that XX of just and XX, and said, be couple. think the kind consistent XX% on And be comfortable path. out again, cut, what good

Operator

with next question from The Terrell Andrew Stephens. is

Andrew Terrell

so that Chris, I October, wanted prepared interest-bearing XX-ish you from X for costs just total afternoon. deposit to a in basis remarks. drop couple point in total or Good mentioned, far to is The for interest-bearing? XX was the clarify of points deposits

Christopher Del Moral-Niles

closer XX% total, for Closer to for X% interest to bearing.

Andrew Terrell

it. Got

enough. Easy Okay.

or rolling million swap of is assume the the off, $XX Or prior assumption kind the it curve? And impact positive of is that Okay. rate then the kind just an Does as to cuts? is it today? forward -- from make around

Christopher Del Moral-Niles

the seen number, end So of was we've first the XX. kind That quarter right? of

I think I in closer a have ask you'd cited XX. to number that if August, would me

largely will comes in action come chipped and down the win it bit. roll but And It away it'll a each so at will down with it still push. get Fed the little

Operator

turn would no I back for Dominic like Ng to further remarks. concludes any conference closing our Instructions]. the over session. to [Operator question-and-answer This Showing questions.

Dominic Ng

just want in Thank our thank all call everyone looking and joining for talking you. forward to to to January. I today you late

Operator

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

You may now disconnect.

East West Bancorp (EWBC) 22 Oct 242024 Q3 Earnings call transcript