A $12,000 monthly dividend paycheck means $144,000 a year in gross portfolio income. That is roughly double the $68,391 per capita disposable income the BEA reported for Q1 2026, and it sits well above what most households spend. The number you keep depends on two variables: the yield tier you build around and the tax character of those securities.
The Capital Required at Each Yield Tier The equation is simple: $144,000 divided by yield equals capital required. The tradeoffs are not.
Conservative tier (3% to 4% yield). At 3.5%, hitting $144,000 requires roughly $4.11 million invested. This is the dividend-growth zone: regulated utilities, broad dividend ETFs, and large-cap payers with rising distributions. Alliant Energy (NASDAQ:LNT | LNT Price Prediction) is a fair example. Its $0.535 quarterly dividend equates to a 2.8% yield, and the payout has climbed from $0.4025 in 2021 to $0.535 in 2026. East West Bancorp (NASDAQ:EWBC) sits in a similar bucket after its 33% dividend hike to $0.80 quarterly in early 2026. Distributions from both are qualified dividends.
Moderate tier (5% to 7% yield). At 6%, capital required drops to $2.4 million. This range covers midstream MLPs, preferred shares, and higher-payout equity funds. Plains All American (NASDAQ:PAA) illustrates the MLP end: an annualized $1.595 distribution at a 6.6% yield, with distributions rising from $1.07 in 2023 to $1.67 annualized in 2026. Bank OZK preferred (NASDAQ:OZKAP) shows the preferred-share profile: a fixed $0.28906 quarterly payment unchanged since 2023.
Aggressive tier (8% to 14% yield). At 12%, $1.2 million throws off $144,000. This is where mortgage REITs, BDCs, and leveraged option-income funds live. AGNC Investment (NASDAQ:AGNC) pays a $0.12 monthly dividend, an annualized 13.4% yield. That payout was cut from $0.16 in 2020, and prior rates ran higher. The high current yield does the heavy lifting on capital required. Principal stability does not come with it.
What Actually Lands in Your Bank Account Under 2026 rules for married filing jointly, the 22% bracket starts at $100,800 and the 24% bracket at $211,400, with a $32,200 standard deduction. That places $144,000 of ordinary dividend income in the 22% federal marginal bracket.
The character of the dividend dictates the actual bite:
Qualified dividends (LNT, EWBC common): taxed at the 15% long-term capital gains rate. Federal tax on $144,000 of purely qualified dividends runs roughly $17,000 after the standard deduction, leaving about $127,000. REIT dividends (AGNC): taxed as ordinary income. Effective federal tax lands closer to $18,000 to $22,000 depending on other income, so net roughly $122,000 to $126,000. MLP distributions (PAA): largely return of capital, tax-deferred at the federal level, with K-1 reporting and depreciation recapture on sale. Preferred stock (OZKAP): often non-qualified, taxed as ordinary income. State tax is the swing factor. A qualified-dividend portfolio in Florida or Texas keeps close to $127,000. That same portfolio in California, with a top state rate above 13%, delivers closer to $105,000. An ordinary-income mREIT portfolio in a high-tax state can slip under $95,000 net on the same $144,000 gross.
The Compounding Trap Most Income Hunters Fall Into The 12% mREIT solves the capital problem and creates a different one. AGNC’s $0.12 monthly rate has held flat since April 2020, and the prior rate was higher. Flat or declining distributions on eroding principal is spending down the asset dressed up as income.
Compare that to EWBC lifting its payout from $0.275 quarterly in 2020 to $0.80 in 2026. A 3% starting yield growing at that pace pushes past a static 12% yield on total income within roughly nine to ten years, and the underlying shares typically appreciate rather than bleed. With Core PCE at 130.08 and still climbing, an income stream that does not grow loses ground in real terms every year.
Three Moves Worth Making This Week Pull your last two years of actual spending as the baseline, rather than relying on your gross salary. Many households targeting a $144,000 replacement need closer to $110,000 once payroll taxes, 401(k) contributions, and mortgage principal drop out. Sort your existing dividend holdings by tax character. Qualified, REIT, MLP, and preferred each land differently on your 1040. Given the 10-year Treasury near 4.6% and the 3.75% fed funds upper bound, tax-inefficient positions in a taxable account carry a real opportunity cost against Treasuries. Model a blended portfolio: roughly 60% conservative dividend growth, 30% moderate hybrid, 10% aggressive. That mix typically clears a 5% blended yield, needs about $2.9 million, and keeps enough growth to defend purchasing power over a 20-year retirement. Contact [email protected] for any questions or corrections.
The average public school teacher with 20-plus years of experience often earns in the $75,000 to $95,000 range, and $85,000 is a common target for a 55-year-old educator planning the switch from paycheck to portfolio. Replacing that gross number through investment income depends on one variable: yield. The capital required swings by more than a million dollars depending on where on the risk spectrum the portfolio sits.
With the 10-year Treasury near 5% and the Fed funds upper bound near 4%, dividend equities have to work harder to justify their risk. Here is how the math actually plays out across three yield tiers.
The Conservative Tier: 3% to 4% Yield At 3.5%, replacing $85,000 requires $2,428,571. At 4%, it drops to $2,125,000. This is dividend growth territory: broad dividend ETFs, utility ETFs, dividend aristocrat funds, and blue-chip regulated utilities.
Alliant Energy (NASDAQ:LNT | LNT Price Prediction) is the archetype. The regulated utility raised its quarterly payout from $0.5075 to $0.535 this year, pushing the annualized forward dividend to $2.14. Shares trade near $74, so the current yield sits near 2.8%, with a 23 PE and steady rate-base growth from data center demand in Iowa and Wisconsin.
Casey’s General Stores (NASDAQ:CASY) shows the compounding side. The convenience store chain just raised its quarterly dividend from $0.57 to $0.65, and shares are up 64% over the past year. The yield is under 1%, but the payout has risen from $0.24 quarterly in 2016 to $0.65 today. That trajectory is the entire point of the low-yield tier.
The Moderate Tier: 5% to 7% Yield At 6%, the required nest egg is $1,416,667. At 7%, it drops to $1,214,286. This tier draws from covered call ETFs (DIVO, SPYI, JEPQ, GPIQ), preferred share funds, REIT ETFs, and higher-payout regional banks.
East West Bancorp (NASDAQ:EWBC) sits on the growth edge of this tier. The bank hiked its quarterly dividend from $0.60 to $0.80 this year, delivered $9.87 in trailing EPS at a 13 PE, and posted quarterly earnings growth of 17% year over year. Layering covered calls on positions like EWBC or CASY can push blended yield toward the 6% to 8% range, though the strategy caps upside when shares run.
The Aggressive Tier: 8% to 14% Yield At 10%, $850,000 covers the salary. At 12%, $708,333 does. Mortgage REITs, business development companies, high-yield bond funds, and leveraged covered call funds populate this range.
AGNC Investment (NASDAQ:AGNC) illustrates both the appeal and the trap. The monthly distribution is $0.12 per share, or $1.44 annualized, on a stock trading near $11. That is a headline yield above 13%. But AGNC has cut the payout three times since 2016, including a 25% reduction in 2020, and the historical progression from $1.40 quarterly in 2010 to $0.12 monthly today tells the story of principal erosion.
The Compounding Insight A portfolio yielding 3.5% that grows its dividend 8% annually roughly doubles income in nine years. Casey’s did exactly this: the quarterly payout roughly tripled from 2016 to 2026. A 12% mREIT yield with no growth stays flat at best and shrinks at worst. For a 55-year-old with a decade until Medicare, the tier choice is really a choice between growing income and static income.
Silicon Motion (NASDAQ:SIMO) demonstrates the opposite pole. The NAND controller maker pays $2.00 annually against a $278 share price: a sub-1% yield. Its 299% one-year gain is a growth story, not an income vehicle.
Three Moves for the Teacher Subtract the teacher pension and projected Social Security from $85,000. Many state pensions replace 40% to 60% of final salary, which can cut the gap the portfolio needs to fill by half or more. Model the tax bite tier by tier. Qualified dividends from LNT or EWBC are taxed at long-term capital gains rates, while covered call ETF distributions and mREIT payouts often flow through as ordinary income. Compare 10-year total return between a dividend growth fund and a high-yield covered call fund. With CPI at 332.6 in June 2026, only growing income keeps real purchasing power intact. Contact [email protected] for any questions or corrections.
Key Takeaways EWBC beat Q2 earnings estimates as net interest income and fee income increased y/y.EWBC reported higher loans and deposits to record levels, while lower provisions supported results.EWBC posted stronger capital and profitability ratios, though expenses increased y/y. East West Bancorp, Inc.’s (EWBC - Free Report) second-quarter 2026 earnings per share of $2.63 beat the Zacks Consensus Estimate of $2.61. Moreover, the bottom line increased 17.4% from the prior-year quarter’s level.
The results were primarily aided by an increase in net interest income (NII) and non-interest income alongside lower provisions. Also, loan and deposit balances increased sequentially in the quarter to record levels. However, higher non-interest expenses acted as a spoilsport.
Net income was $363.7 million, up from $310.3 million in the prior-year quarter.
EWBC’s Revenues & Expenses IncreaseQuarterly net revenues were $791.1 million, up 12.5% year over year. Moreover, the top line beat the Zacks Consensus Estimate of $785.9 million.
NII amounted to $684.7 million, which increased 11% year over year. Further, the net interest margin (NIM) expanded eight basis points (bps) to 3.43%. We expected NII and NIM to be $697 million and 3.49%, respectively.
Total non-interest income was $106.5 million, up 23.6% year over year. The rise was driven by an increase in almost all fee income components, except for customer derivative income. In the reported quarter, the company recorded other investment losses against a gain in the year-ago quarter. We estimated non-interest income to be $87.4 million.
Non-interest expenses totaled $290.6 million, up 13.5% from the prior-year quarter’s level. The rise was due to an increase in all cost components except deposit account expense. Our estimate for the same was $284.3 million.
The efficiency ratio was 36.73%, up from 36.41% in the prior-year quarter. A rise in the efficiency ratio indicates a deterioration in profitability.
As of June 30, 2026, net loans held for investment (HFI) were a record $58.1 billion, reflecting a 1.5% rise sequentially. Further, total deposits rose 1.7% from the previous quarter to a record $70.1 billion.
East West Bancorp’s Credit Quality: A Mixed BagAnnualized quarterly net charge-offs were 0.19% of average loans HFI, up eight bps from the prior-year quarter’s level. Non-performing assets totaled $247 million, up 43.9% from the prior-year quarter.
However, provision for credit losses was $33 million, down from $45 million in the prior-year quarter. Our estimate for the same was $36 million.
EWBC’s Capital & Profitability Ratios ImproveAs of June 30, 2026, the common equity Tier 1 (CET1) capital ratio was 15.44%, up from 14.51% as of June 30, 2025. The total risk-based capital ratio was 16.75%, up from 15.82% a year ago.
Return on average assets was 1.75%, up from 1.62% in the prior-year quarter. Return on average tangible equity was 16.88%, up from 16.39%.
East West Bancorp’s Share Repurchase UpdateIn the reported quarter, East West Bancorp did not repurchase any shares.
Our View on EWBCEast West Bancorp is well-poised for organic growth with robust loan improvement, solid deposit balances and diversified fee income streams. However, a rise in expenses and a weak asset quality amid the tough operating backdrop are likely to hurt the bottom line.
Currently, EWBC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other BanksCommerce Bancshares Inc.’s (CBSH - Free Report) second-quarter 2026 earnings of $1.10 per share surpassed the Zacks Consensus Estimate of $1.04. The bottom line reflected a rise of 1% from the prior-year quarter.
CBSH’s results primarily benefited from higher NII and a rise in non-interest income. The sequential rise in loan balances acted as a tailwind. However, higher expenses and provisions hurt CBSH’s results to some extent.
F.N.B. Corporation (FNB - Free Report) reported second-quarter 2026 earnings of 42 cents per share, which matched the Zacks Consensus Estimate. The bottom line jumped 16.7% year over year.
FNB’s results primarily benefited from higher NII, a rise in non-interest income and lower provisions. Higher average loans and deposits were other positives. However, higher non-interest expenses hurt the results to some extent.
California Public Employees Retirement System increased its position in shares of East West Bancorp, Inc. (NASDAQ:EWBC – Free Report) by 8.0% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 279,413 shares of the financial services provider’s stock after buying an additional 20,588 shares during the quarter. California Public Employees Retirement System owned about 0.20% of East West Bancorp worth $29,830,000 as of its most recent SEC filing.
A number of other hedge funds have also recently added to or reduced their stakes in EWBC. Oak Thistle LLC purchased a new stake in East West Bancorp in the 4th quarter valued at $1,530,000. Mach 1 Financial Group LLC acquired a new position in East West Bancorp in the fourth quarter valued at $1,044,000. Northwestern Mutual Wealth Management Co. increased its stake in East West Bancorp by 84,090.3% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 5,311,566 shares of the financial services provider’s stock valued at $596,967,000 after purchasing an additional 5,305,257 shares during the period. Geode Capital Management LLC raised its holdings in shares of East West Bancorp by 1.0% in the fourth quarter. Geode Capital Management LLC now owns 2,825,161 shares of the financial services provider’s stock valued at $319,523,000 after buying an additional 27,402 shares during the last quarter. Finally, SG Americas Securities LLC raised its holdings in shares of East West Bancorp by 141.2% in the fourth quarter. SG Americas Securities LLC now owns 128,368 shares of the financial services provider’s stock valued at $14,427,000 after buying an additional 75,147 shares during the last quarter. Hedge funds and other institutional investors own 89.53% of the company’s stock.
East West Bancorp Stock Down 0.4% Shares of NASDAQ:EWBC opened at $133.40 on Wednesday. East West Bancorp, Inc. has a fifty-two week low of $92.67 and a fifty-two week high of $136.24. The company has a quick ratio of 0.88, a current ratio of 0.88 and a debt-to-equity ratio of 0.34. The firm’s 50-day simple moving average is $127.49 and its 200-day simple moving average is $119.21. The company has a market cap of $18.28 billion, a price-to-earnings ratio of 13.33, a PEG ratio of 1.54 and a beta of 0.94.
East West Bancorp (NASDAQ:EWBC – Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $2.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.61 by $0.02. The firm had revenue of $791.14 million during the quarter, compared to analysts’ expectations of $784.47 million. East West Bancorp had a net margin of 29.59% and a return on equity of 16.00%. During the same period in the prior year, the company posted $2.24 earnings per share. As a group, equities research analysts predict that East West Bancorp, Inc. will post 10.56 earnings per share for the current year.
Insiders Place Their Bets In related news, Vice Chairman Douglas Paul Krause sold 10,000 shares of the company’s stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $123.50, for a total transaction of $1,235,000.00. Following the transaction, the insider owned 46,974 shares of the company’s stock, valued at $5,801,289. This represents a 17.55% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Irene H. Oh sold 11,211 shares of the firm’s stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $129.00, for a total value of $1,446,219.00. Following the completion of the sale, the insider directly owned 85,998 shares of the company’s stock, valued at approximately $11,093,742. This trade represents a 11.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 54,311 shares of company stock worth $6,784,711. Company insiders own 0.94% of the company’s stock.
Key Headlines Impacting East West Bancorp Here are the key news stories impacting East West Bancorp this week:
Positive Sentiment: East West Bancorp reported Q2 2026 EPS of $2.63, ahead of the $2.61 consensus estimate, and earnings rose from $2.24 a year ago. East West Bancorp earnings report and conference call link Positive Sentiment: The company said net income reached $364 million and total revenue hit a record, signaling strong operating performance. East West Bancorp Q2 2026 results press release Positive Sentiment: Loans and deposits both reached new records at $59.0 billion and $70.1 billion, respectively, showing continued business expansion and funding strength. East West Bancorp Q2 2026 results press release Positive Sentiment: Profitability remained solid, with return on average common equity of 16.0% and book value per share up 13% year over year. East West Bancorp Q2 2026 results press release Neutral Sentiment: Several recap articles and the earnings call transcript focused on the same core message: East West Bancorp beat expectations and delivered record revenue, reinforcing the upbeat reaction. East West Bancorp Q2 2026 earnings call transcript Wall Street Analysts Forecast Growth A number of research firms recently issued reports on EWBC. Truist Financial raised their price target on East West Bancorp from $128.00 to $136.00 and gave the stock a “hold” rating in a report on Friday, July 10th. Cantor Fitzgerald upped their price objective on East West Bancorp from $137.00 to $150.00 and gave the company an “overweight” rating in a research note on Wednesday, July 15th. TD Cowen increased their price objective on East West Bancorp from $137.00 to $143.00 and gave the stock a “buy” rating in a research report on Thursday, April 23rd. Wall Street Zen downgraded East West Bancorp from a “hold” rating to a “sell” rating in a research note on Saturday, July 4th. Finally, Citigroup boosted their target price on East West Bancorp from $145.00 to $154.00 and gave the company a “buy” rating in a report on Thursday, June 25th. Ten investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, East West Bancorp currently has a consensus rating of “Moderate Buy” and a consensus target price of $138.31.
Read Our Latest Research Report on EWBC
East West Bancorp Company Profile (Free Report)
East West Bancorp, Inc is a bank holding company and the parent of East West Bank, one of the largest independent banks headquartered in Southern California. As a full-service commercial bank, it provides a broad range of financial products and services to business and individual customers, including commercial and residential real estate lending, working capital lines of credit, trade finance, and deposit and treasury management services. The company caters to both large and middle-market businesses, leveraging its expertise to serve clients engaged in cross-border trade and investment between the United States and Greater China.
Founded in Los Angeles in the early 1970s, East West Bank has grown steadily through organic expansion and strategic branch openings.
See Also Five stocks we like better than East West Bancorp Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible
Receive News & Ratings for East West Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for East West Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINECalifornia Public Employees Retirement System Has $28.16 Million Holdings in RBC Bearings Incorporated $RBC
NEXT HEADLINE »California Public Employees Retirement System Has $27.94 Million Stock Position in SoFi Technologies, Inc. $SOFI
East West Bancorp, Inc. (EWBC) Q2 2026 Earnings Call July 21, 2026 5:00 PM EDT
Company Participants
Adrienne Atkinson - Director of Investor Relations
Dominic Ng - Chairman, President & CEO
Christopher Del Moral-Niles - Executive VP & CFO
Irene Oh - Executive VP & Chief Risk Officer
Conference Call Participants
Jared David Shaw - Barclays Bank PLC, Research Division
David Rochester - Cantor Fitzgerald & Co., Research Division
David Smith - Truist Securities, Inc., Research Division
Manan Gosalia - Morgan Stanley, Research Division
David Chiaverini - Jefferies LLC, Research Division
Timur Braziler - UBS Investment Bank, Research Division
Ebrahim Poonawala - BofA Securities, Research Division
Christopher McGratty - Keefe, Bruyette, & Woods, Inc., Research Division
Matthew Clark - Piper Sandler & Co., Research Division
Sun Young Lee - TD Cowen, Research Division
Bernard Von Gizycki - Deutsche Bank AG, Research Division
Presentation
Operator
Good day, and welcome to East West Bancorp's Second Quarter 2026 Earnings 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
Director of Investor Relations
Thank you, operator. Good afternoon, and thank you, everyone, for joining us to review East West Bancorp's Second Quarter 2026 Financial Results. With me are Dominic Ng, Chairman and Chief Executive Officer; Chris 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
East West Bancorp (EWBC - Free Report) came out with quarterly earnings of $2.63 per share, beating the Zacks Consensus Estimate of $2.61 per share. This compares to earnings of $2.28 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +0.77%. A quarter ago, it was expected that this bank holding company would post earnings of $2.46 per share when it actually produced earnings of $2.57, delivering a surprise of +4.47%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
East West Bancorp, which belongs to the Zacks Banks - West industry, posted revenues of $791.14 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.66%. This compares to year-ago revenues of $703.25 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
East West Bancorp shares have added about 19.2% since the beginning of the year versus the S&P 500's gain of 8.7%.
What's Next for East West Bancorp?While East West Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for East West Bancorp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.66 on $802.4 million in revenues for the coming quarter and $10.56 on $3.18 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Central Pacific Financial (CPF - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on July 24.
This operator of Central Pacific Bank is expected to post quarterly earnings of $0.78 per share in its upcoming report, which represents a year-over-year change of +16.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Central Pacific Financial's revenues are expected to be $75.8 million, up 4.1% from the year-ago quarter.
For the quarter ended June 2026, East West Bancorp (EWBC - Free Report) reported revenue of $791.14 million, up 12.5% over the same period last year. EPS came in at $2.63, compared to $2.28 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $785.94 million, representing a surprise of +0.66%. The company delivered an EPS surprise of +0.77%, with the consensus EPS estimate being $2.61.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how East West Bancorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net interest margin: 3.4% compared to the 3.5% average estimate based on four analysts.Efficiency ratio: 36.7% versus the four-analyst average estimate of 35.4%.Average Balance - Total interest-earning assets: $80.09 billion compared to the $79.83 billion average estimate based on three analysts.Annualized quarterly net charge-offs to average loans HFI: 0.2% compared to the 0.2% average estimate based on three analysts.Total nonperforming assets: $246.96 million compared to the $221.84 million average estimate based on two analysts.Leverage ratio: 11% versus the two-analyst average estimate of 11%.Tier 1 capital ratio: 15.4% versus the two-analyst average estimate of 15.2%.Total capital ratio: 16.8% compared to the 16.5% average estimate based on two analysts.Total nonaccrual loans: $204.96 million compared to the $186.16 million average estimate based on two analysts.Total Noninterest Income: $106.49 million versus the four-analyst average estimate of $98.34 million.Net Interest Income: $684.65 million versus the four-analyst average estimate of $687.82 million.Commercial and consumer deposit-related fees: $31.62 million compared to the $30.01 million average estimate based on three analysts.View all Key Company Metrics for East West Bancorp here>>>
Shares of East West Bancorp have returned +3.7% over the past month versus the Zacks S&P 500 composite's -0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
MarketBeat Week in Review – 04/06 - 04/10 East West Bancorp NASDAQ: EWBC reported record second-quarter 2026 revenue, net interest income and non-interest income, supported by new highs in loans and deposits, executives said on the company’s earnings call.
Chairman and Chief Executive Officer Dominic Ng said end-of-period deposits grew 8% year over year, with strength across all deposit product categories. He said demand deposits accounted for more than two-thirds of the quarter’s total increase, while non-interest-bearing deposits rose 19% from a year earlier.
Get East West Bancorp alerts:
East West Bancorp: Confronting the Risks With Record Results “A continued focus on providing solutions to our customers helped drive” the growth in non-interest-bearing deposits, Ng said.
End-of-period loans increased 7% year over year, with growth in residential mortgage and commercial-and-industrial lending helping further diversify the loan portfolio, Ng said. He added that credit quality remained strong, with non-performing assets, criticized loans and net charge-off levels “broadly stable.”
Deposits Shift Toward Core Demand Accounts Chief Financial Officer Chris Del Moral-Niles said end-of-period deposits rose by $1.2 billion across more than 700,000 customer accounts during the quarter. Demand deposits increased $875 million, representing most of the growth. Average demand deposit accounts were up 15% year over year.
Del Moral-Niles attributed the increase to small business checking campaigns and positive flows from tariff refunds across hundreds of accounts. He said East West’s demand deposit mix rose to 26% of total deposits as the company emphasized core relationship growth and moved away from certificates of deposit, wholesale deposits and public funds deposits.
That shift helped support the net interest margin and control deposit costs, he said. Period-end deposit costs declined by six basis points in the quarter. Over the past year, interest-bearing deposit costs fell 49 basis points against a backdrop of 75 basis points of cuts in the federal funds target rate.
During the question-and-answer session, Del Moral-Niles estimated that roughly $200 million to $250 million of period-end balances reflected net excess tariff-related inflows. He said most of that amount had already moved out after quarter-end, though additional tariff deposits were still expected under refund programs into August.
Asked about upcoming CD maturities, Del Moral-Niles said $13 billion of CDs would roll off in the third quarter. He said the bank was proactively pricing at 3.60% for six-month CDs and 3.75% for 12-month CDs, while continuing to evaluate pricing as the quarter progresses.
Loan Growth Led by Residential Mortgage and C&I East West reported more than $300 million of net growth in residential mortgage loans during the quarter. Del Moral-Niles said the company maintained a conservative underwriting approach, with an average portfolio loan-to-value ratio of 52% in its residential mortgage book.
C&I loan balances also increased by more than $300 million in the second quarter. Del Moral-Niles cited growth in lending to financial services, equipment finance and lessors, and manufacturers and wholesalers. Non-depository financial institution balances rose by only $24 million, reflecting expected paydowns in private equity loans and consumer credit portfolios.
Overall, C&I loans were up 11% year over year, representing more than $2 billion of net growth over that period. Given 7% loan growth in the first half of 2026 and the pipeline heading into the third quarter, East West raised its full-year end-of-period loan growth guidance to a range of 6% to 8%.
In response to an analyst question, Del Moral-Niles said the bank remains focused on moving toward a portfolio mix of roughly one-third C&I, one-third residential mortgage and one-third commercial real estate over time. He said C&I represented 34% of total loans, while commercial real estate stood at 37%, above the company’s long-term vision but still a portfolio with which management is “very comfortable.”
Net Interest Income Guidance Raised Quarterly net interest income rose to a record $685 million. East West’s net interest margin was 3.43%, down in line with the effect of one fewer day in the quarter but up eight basis points from a year earlier.
Del Moral-Niles said the company now expects full-year net interest income growth of 7% to 9%, up from its prior guidance of 6% to 8%. The updated outlook assumes a flat federal funds rate through the end of the year.
Asked about margin trends in a flat rate environment, Del Moral-Niles said management expects the margin to remain “relatively stable.” He acknowledged some pressure on loan yields from mix and prior-quarter one-time items but said the company expects to drive stronger net interest income through balance sheet growth.
On rate sensitivity, Del Moral-Niles said East West is “modestly asset sensitive.” He said a 25-basis-point rate hike or cut would likely affect net interest income by about $2 million per month, with roughly a 45-day lag.
Fee Income and Expenses Quarterly fee income increased 19% year over year to $96 million. Del Moral-Niles said total fee income declined by $3 million from the first quarter, largely reflecting record wealth management results in the prior period and a slight decline in some derivatives activity.
Loan- and deposit-related fees rose 14% year over year. Del Moral-Niles said East West remains on track to deliver double-digit year-over-year fee income growth in 2026. He also highlighted wealth management as a growth area, noting during the Q&A that wealth management fees were up 71% year over year for the first six months of the year, according to the company’s press release tables.
Total operating non-interest expenses were $268 million in the second quarter. Compensation and benefits costs were flat sequentially, and Del Moral-Niles said those costs are expected to moderate in the second half of the year. He cited deferred compensation expenses and changes related to vacation pay as factors affecting the quarter’s compensation line.
East West reported a second-quarter efficiency ratio of 36.7%, consistent with prior periods, and an operating non-interest expense to average asset ratio of 1.29%. The company narrowed its full-year expense growth guidance to 8% to 9% versus last year.
Credit and Capital Remain Strong Chief Risk Officer Irene Oh said asset quality metrics remained broadly stable. Non-performing assets rose slightly by three basis points quarter over quarter to 29 basis points as of June 30, 2026. Net charge-offs were 19 basis points, or $27 million, compared with nine basis points, or $12 million, in the first quarter.
East West reaffirmed its full-year net charge-off guidance of 15 to 25 basis points. The company recorded a provision for credit losses of $33 million, compared with $36 million in the first quarter. The allowance for credit losses increased $6 million to $842 million, or 1.43% of total loans, reflecting loan growth and portfolio mix shift.
Oh said all regulatory capital ratios remained well above requirements for well-capitalized institutions. East West’s common equity Tier 1 capital ratio was 15.4%, and its tangible common equity ratio was 10.4%. The company had $117 million of repurchase authorization remaining and distributed about $111 million to shareholders through quarterly dividends.
Ng closed the call by thanking employees and said the company remains focused on creating long-term value.
About East West Bancorp (NASDAQ:EWBC)East West Bancorp, Inc is a bank holding company and the parent of East West Bank, one of the largest independent banks headquartered in Southern California. As a full-service commercial bank, it provides a broad range of financial products and services to business and individual customers, including commercial and residential real estate lending, working capital lines of credit, trade finance, and deposit and treasury management services. The company caters to both large and middle-market businesses, leveraging its expertise to serve clients engaged in cross-border trade and investment between the United States and Greater China.
Founded in Los Angeles in the early 1970s, East West Bank has grown steadily through organic expansion and strategic branch openings.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in East West Bancorp Right Now?Before you consider East West Bancorp, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and East West Bancorp wasn't on the list.
While East West Bancorp currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
With the proliferation of data centers and electric vehicles, the electric grid will only get more strained. Download this report to learn how energy stocks can play a role in your portfolio as the global demand for energy continues to grow.
East West Bancorp, Inc. is upgraded to a very soft Buy as fundamentals and profitability improve, outpacing the S&P 500 since last review. EWBC demonstrates robust balance sheet growth, expanding deposits, loans, and securities, with net interest margin rising to 3.49% in Q1 2026. Asset and credit quality remain strong, with return on assets at 1.79%, return on equity at 16.04%, and non-performing assets at only 0.26%.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
East West Bancorp (EWBC - Free Report) is headquartered in Pasadena, and is in the Finance sector. The stock has seen a price change of 21.13% since the start of the year. The bank holding company is currently shelling out a dividend of $0.80 per share, with a dividend yield of 2.35%. This compares to the Banks - West industry's yield of 2.53% and the S&P 500's yield of 1.32%.
Looking at dividend growth, the company's current annualized dividend of $3.20 is up 33.3% from last year. Over the last 5 years, East West Bancorp has increased its dividend 5 times on a year-over-year basis for an average annual increase of 18.17%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. East West Bancorp's current payout ratio is 32%, meaning it paid out 32% of its trailing 12-month EPS as dividend.
EWBC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $10.56 per share, which represents a year-over-year growth rate of 11.28%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, EWBC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
The upcoming report from East West Bancorp (EWBC - Free Report) is expected to reveal quarterly earnings of $2.61 per share, indicating an increase of 14.5% compared to the year-ago period. Analysts forecast revenues of $785.94 million, representing an increase of 11.8% year over year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
In light of this perspective, let's dive into the average estimates of certain East West Bancorp metrics that are commonly tracked and forecasted by Wall Street analysts.
The collective assessment of analysts points to an estimated 'Net interest margin' of 3.5%. Compared to the present estimate, the company reported 3.4% in the same quarter last year.
Analysts predict that the 'Efficiency ratio' will reach 35.4%. The estimate is in contrast to the year-ago figure of 36.4%.
It is projected by analysts that the 'Average Balance - Total interest-earning assets' will reach $79.83 billion. The estimate is in contrast to the year-ago figure of $73.90 billion.
The combined assessment of analysts suggests that 'Total nonperforming assets' will likely reach $221.84 million. Compared to the current estimate, the company reported $171.68 million in the same quarter of the previous year.
The consensus among analysts is that 'Leverage ratio' will reach 11.0%. Compared to the current estimate, the company reported 10.6% in the same quarter of the previous year.
Analysts expect 'Tier 1 capital ratio' to come in at 15.2%. The estimate is in contrast to the year-ago figure of 14.5%.
Analysts' assessment points toward 'Total capital ratio' reaching 16.5%. Compared to the current estimate, the company reported 15.8% in the same quarter of the previous year.
Analysts forecast 'Total nonaccrual loans' to reach $186.16 million. Compared to the current estimate, the company reported $139.45 million in the same quarter of the previous year.
The consensus estimate for 'Total Noninterest Income' stands at $98.34 million. Compared to the present estimate, the company reported $86.18 million in the same quarter last year.
According to the collective judgment of analysts, 'Net Interest Income' should come in at $687.82 million. The estimate compares to the year-ago value of $617.07 million.
The average prediction of analysts places 'Commercial and consumer deposit-related fees' at $30.01 million. The estimate is in contrast to the year-ago figure of $26.87 million.
Based on the collective assessment of analysts, 'Lending fees' should arrive at $26.23 million. Compared to the current estimate, the company reported $25.59 million in the same quarter of the previous year.
View all Key Company Metrics for East West Bancorp here>>>
Over the past month, East West Bancorp shares have recorded returns of +4.1% versus the Zacks S&P 500 composite's +0.5% change. Based on its Zacks Rank #3 (Hold), EWBC will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
The market expects East West Bancorp (EWBC - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 21. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis bank holding company is expected to post quarterly earnings of $2.61 per share in its upcoming report, which represents a year-over-year change of +14.5%.
Revenues are expected to be $785.94 million, up 11.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.09% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for East West Bancorp?For East West Bancorp, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.35%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that East West Bancorp will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that East West Bancorp would post earnings of $2.46 per share when it actually produced earnings of $2.57, delivering a surprise of +4.47%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
East West Bancorp doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAnother stock from the Zacks Banks - West industry, Zions (ZION - Free Report) , is soon expected to post earnings of $1.57 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -0.6%. Revenues for the quarter are expected to be $879.16 million, up 3.3% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Zions has been revised 0.8% up to the current level. Nevertheless, the company now has an Earnings ESP of +0.53%, reflecting a higher Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that Zions will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in Pasadena, East West Bancorp (EWBC - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 14.86%. The bank holding company is currently shelling out a dividend of $0.80 per share, with a dividend yield of 2.48%. This compares to the Banks - West industry's yield of 2.53% and the S&P 500's yield of 1.41%.
Looking at dividend growth, the company's current annualized dividend of $3.20 is up 33.3% from last year. Over the last 5 years, East West Bancorp has increased its dividend 5 times on a year-over-year basis for an average annual increase of 18.17%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. East West Bancorp's current payout ratio is 32%, meaning it paid out 32% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, EWBC expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $10.59 per share, which represents a year-over-year growth rate of 11.59%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, EWBC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
East West Bancorp (EWBC - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for East West Bancorp is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For East West Bancorp, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for East West BancorpThis bank holding company is expected to earn $10.61 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for East West Bancorp. Over the past three months, the Zacks Consensus Estimate for the company has increased 2.9%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of East West Bancorp to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at East West Bancorp (EWBC - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. East West Bancorp currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if EWBC is a promising momentum pick, let's examine some Momentum Style elements to see if this bank holding company holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For EWBC, shares are up 5.31% over the past week while the Zacks Banks - West industry is up 4.06% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 3.1% compares favorably with the industry's 2.62% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of East West Bancorp have increased 19.49% over the past quarter, and have gained 35.47% in the last year. In comparison, the S&P 500 has only moved 13.47% and 26.67%, respectively.
Investors should also take note of EWBC's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now EWBC is averaging 929,892 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with EWBC.
Over the past two months, 9 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost EWBC's consensus estimate, increasing from $10.25 to $10.61 in the past 60 days. Looking at the next fiscal year, 8 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that EWBC is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep East West Bancorp on your short list.
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Headquartered in Pasadena, East West Bancorp (EWBC - Free Report) is a Finance stock that has seen a price change of 18.01% so far this year. The bank holding company is currently shelling out a dividend of $0.80 per share, with a dividend yield of 2.41%. This compares to the Banks - West industry's yield of 2.66% and the S&P 500's yield of 1.41%.
Looking at dividend growth, the company's current annualized dividend of $3.20 is up 33.3% from last year. Over the last 5 years, East West Bancorp has increased its dividend 5 times on a year-over-year basis for an average annual increase of 18.17%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. East West Bancorp's current payout ratio is 32%, meaning it paid out 32% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for EWBC for this fiscal year. The Zacks Consensus Estimate for 2026 is $10.61 per share, representing a year-over-year earnings growth rate of 11.80%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that EWBC is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
East West Bancorp NASDAQ: EWBC finds itself in an unusual position. It’s a high-performing regional bank trading at a discount.
East West Bancorp Today
EWBC
East West Bancorp
$130.18 +2.09 (+1.63%)
As of 06/11/2026 04:00 PM Eastern
52-Week Range$90.79▼
$130.54Dividend Yield2.46%
P/E Ratio13.00
Price Target$133.69
The bank has record earnings, strong growth, high returns on equity, and a recently raised dividend.
What helps support those strengths, however, also comes with risks.
Get East West Bancorp alerts:
Heavy exposure to California commercial real estate, sensitivity to interest rates, and geopolitical ties to U.S.-China relations are causes for uncertainty.
Yet the numbers are compelling. And if the economy and nations cooperate, East West Bancorp could be just the type of niche investment that adds growth and income to an attractive banking portfolio.
EWBC Delivers Record ResultsThere’s little doubt the risks have yet to slow the bank down. Based in Pasadena, California, EWBC wrapped up 2025 with record results. Net income climbed to $1.3 billion last year with diluted earnings per share of $9.52. Both results were all-time highs and represented roughly 14% growth from 2024. Total revenue reached $2.93 billion, a 12% year-over-year increase. Its net interest margin came in at 3.41%, also up from the prior year.
The bank's return on average common equity hit 16%, and tangible book value per share grew 17%. Even through the fourth quarter, the bank kept up its pace, earning $356 million, and beating analysts’ estimates by 4 cents at a reported $2.52 per share.
The balance sheet tells a similar story. Total assets reached $80.4 billion at year-end, with $56.9 billion in loans and $67.1 billion in deposits, each up about 6% from the prior year. And net charge-offs for the year were considerably lower.
With those results, the board approved a 33% increase in the quarterly dividend, raising it to 80 cents per share, or $3.20 annually. At recent prices, that works out to a yield close to 3%.
East West Bancorp Stock Forecast Today12-Month Stock Price Forecast:
$133.69
2.70% Upside
Moderate Buy
Based on 15 Analyst Ratings
Current Price$130.18High Forecast$145.00Average Forecast$133.69Low Forecast$123.00East West Bancorp Stock Forecast Details
Valuation Suggests Upside With Strong ResultsDespite those results, EWBC trades at just above 12 times trailing earnings, an attractive discount to other regional banks that deliver considerably lower earnings.
With double-digit EPS growth and returns on equity above 15%, the share price may represent a timely opportunity.
Wall Street broadly agrees. The 16 analysts covering the stock assign it a consensus Moderate Buy rating, with 11 Buys and five Holds. The average 12-month price target sits around $127.36, implying roughly 10% upside from current levels, with the highest target at $142.
Asia-Focused Model Creates Unique RisksBut there may be some headwind to much stock appreciation. Some concerns about the bank may stem from its unique position. Founded in 1973 to serve the Chinese American community, EWBC has built a franchise that few regional banks can match. Heavily focused on customers with economic and cultural ties to Asia, the bank has built a powerful brand serving cross-border business within Asian-American communities.
East West also holds a commercial banking license in China through its subsidiary, East West Bank (China) Ltd., making it unique among U.S.-based regional banks. That license allows the bank to operate branches, make loans, and accept deposits in China, in addition to maintaining locations in Hong Kong and Singapore. As of year-end, the bank's Hong Kong and China subsidiary branches accounted for about roughly 6%, or $4.7 billion, in assets and roughly 4% of 2025 revenue.
Although representing a relatively small direct slice of its business, its Asian operations help facilitate transactions on both sides of the Pacific. If U.S.-China relations break down, the impact on EWBC could be significant.
Commercial Real Estate Remains a Key ConcernThe company also faces concerns about the mix of its lending. While its U.S. markets span California, Georgia, Illinois, Massachusetts, Nevada, New York, Texas, and Washington, the bank’s particular focus is Southern California, where it is heavily concentrated in commercial real estate lending.
With $21.3 billion in commercial real estate loans, California accounts for more than two-thirds of the portfolio. In all, half of the portfolio is in Southern California, where a significant downturn could pressure both loan quality and new lending.
Investment Depends on Balancing Growth and RiskStill, if management continues to compound earnings, credit stays clean, and the bank’s performance ratios stay strong, EWBC's discount to peers could attract some attention—assuming, that is, commercial real estate and U.S.-China relations cooperate.
For investors willing to live with that bit of uncertainty in exchange for above-average growth and a rising dividend, East West Bancorp makes a strong case for a place in a diversified portfolio in the financial sector.
Should You Invest $1,000 in East West Bancorp Right Now?Before you consider East West Bancorp, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and East West Bancorp wasn't on the list.
While East West Bancorp currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Click the link to see MarketBeat's list of seven stocks and why their long-term outlooks are very promising.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in Pasadena, East West Bancorp (EWBC - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 3.86%. Currently paying a dividend of $0.80 per share, the company has a dividend yield of 2.74%. In comparison, the Banks - West industry's yield is 2.95%, while the S&P 500's yield is 1.4%.
Looking at dividend growth, the company's current annualized dividend of $3.20 is up 33.3% from last year. Over the last 5 years, East West Bancorp has increased its dividend 5 times on a year-over-year basis for an average annual increase of 18.17%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. East West Bancorp's current payout ratio is 25%, meaning it paid out 25% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for EWBC for this fiscal year. The Zacks Consensus Estimate for 2026 is $10.25 per share, which represents a year-over-year growth rate of 8.01%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, EWBC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Massachusetts Financial Services Co. MA trimmed its position in East West Bancorp, Inc. (NASDAQ:EWBC – Free Report) by 16.5% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,819,376 shares of the financial services provider’s stock after selling 358,595 shares during the period. Massachusetts Financial Services Co. MA owned approximately 1.32% of East West Bancorp worth $204,480,000 at the end of the most recent quarter.
Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Foster Dykema Cabot & Partners LLC bought a new stake in East West Bancorp in the 3rd quarter valued at about $26,000. Kelleher Financial Advisors bought a new stake in East West Bancorp in the 3rd quarter valued at about $31,000. Grove Bank & Trust increased its position in East West Bancorp by 82.6% in the 3rd quarter. Grove Bank & Trust now owns 336 shares of the financial services provider’s stock valued at $36,000 after buying an additional 152 shares in the last quarter. Mather Group LLC. bought a new stake in East West Bancorp in the 3rd quarter valued at about $38,000. Finally, Wilmington Savings Fund Society FSB increased its position in East West Bancorp by 44.7% in the 3rd quarter. Wilmington Savings Fund Society FSB now owns 366 shares of the financial services provider’s stock valued at $39,000 after buying an additional 113 shares in the last quarter. 89.53% of the stock is owned by institutional investors.
Insiders Place Their Bets In other news, Director Molly Campbell sold 1,800 shares of the business’s stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $122.81, for a total value of $221,058.00. Following the transaction, the director owned 5,756 shares in the company, valued at $706,894.36. The trade was a 23.82% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Dominic Ng sold 50,000 shares of the business’s stock in a transaction that occurred on Wednesday, February 4th. The stock was sold at an average price of $117.82, for a total value of $5,891,000.00. Following the completion of the transaction, the chief executive officer owned 808,331 shares in the company, valued at $95,237,558.42. The trade was a 5.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 60,221 shares of company stock worth $7,139,287 over the last 90 days. 1.04% of the stock is currently owned by corporate insiders.
Analyst Ratings Changes EWBC has been the subject of a number of research analyst reports. Deutsche Bank Aktiengesellschaft initiated coverage on East West Bancorp in a research report on Tuesday, December 16th. They issued a “buy” rating and a $133.00 target price for the company. TD Cowen decreased their target price on East West Bancorp from $141.00 to $140.00 and set a “buy” rating for the company in a research report on Monday, January 26th. Weiss Ratings reiterated a “buy (b-)” rating on shares of East West Bancorp in a research note on Monday, December 29th. Zacks Research downgraded East West Bancorp from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, December 24th. Finally, Keefe, Bruyette & Woods lifted their price target on East West Bancorp from $131.00 to $135.00 and gave the company an “outperform” rating in a research note on Friday, January 23rd. Eleven analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $127.36.
Check Out Our Latest Stock Analysis on East West Bancorp
East West Bancorp Price Performance EWBC stock opened at $115.55 on Monday. The company has a market capitalization of $15.83 billion, a P/E ratio of 12.14, a price-to-earnings-growth ratio of 1.52 and a beta of 0.90. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.89 and a current ratio of 0.89. East West Bancorp, Inc. has a 52-week low of $69.02 and a 52-week high of $123.82. The business has a 50-day simple moving average of $111.84 and a two-hundred day simple moving average of $109.60.
East West Bancorp (NASDAQ:EWBC – Get Free Report) last released its quarterly earnings results on Thursday, January 22nd. The financial services provider reported $2.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.48 by $0.04. The business had revenue of $753.79 million during the quarter, compared to the consensus estimate of $745.04 million. East West Bancorp had a return on equity of 15.72% and a net margin of 28.36%.During the same quarter in the previous year, the business earned $2.10 EPS. Research analysts expect that East West Bancorp, Inc. will post 8.85 EPS for the current fiscal year.
East West Bancorp Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Tuesday, February 17th. Stockholders of record on Monday, February 2nd were paid a $0.80 dividend. This represents a $3.20 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date was Monday, February 2nd. This is a boost from East West Bancorp’s previous quarterly dividend of $0.60. East West Bancorp’s dividend payout ratio (DPR) is presently 33.61%.
About East West Bancorp (Free Report)
East West Bancorp, Inc is a bank holding company and the parent of East West Bank, one of the largest independent banks headquartered in Southern California. As a full-service commercial bank, it provides a broad range of financial products and services to business and individual customers, including commercial and residential real estate lending, working capital lines of credit, trade finance, and deposit and treasury management services. The company caters to both large and middle-market businesses, leveraging its expertise to serve clients engaged in cross-border trade and investment between the United States and Greater China.
Founded in Los Angeles in the early 1970s, East West Bank has grown steadily through organic expansion and strategic branch openings.
See Also Five stocks we like better than East West Bancorp
Receive News & Ratings for East West Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for East West Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEMassachusetts Financial Services Co. MA Has $178.59 Million Holdings in Mohawk Industries, Inc. $MHK
NEXT HEADLINE »Brixmor Property Group Inc. $BRX Shares Sold by Massachusetts Financial Services Co. MA
East West Bancorp (EWBC - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on April 21, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis bank holding company is expected to post quarterly earnings of $2.46 per share in its upcoming report, which represents a year-over-year change of +17.7%.
Revenues are expected to be $754.58 million, up 9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.31% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for East West Bancorp?For East West Bancorp, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.44%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that East West Bancorp will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that East West Bancorp would post earnings of $2.48 per share when it actually produced earnings of $2.52, delivering a surprise of +1.61%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
East West Bancorp appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Banks - West industry, Bank of Hawaii (BOH - Free Report) , is soon expected to post earnings of $1.33 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of +37.1%. This quarter's revenue is expected to be $192.33 million, up 13.2% from the year-ago quarter.
The consensus EPS estimate for Bank of Hawaii has remained unchanged over the last 30 days. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Bank of Hawaii will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering East West Bancorp (EWBC - Free Report) , which belongs to the Zacks Banks - West industry.
This bank holding company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 6.55%.
For the last reported quarter, East West Bancorp came out with earnings of $2.52 per share versus the Zacks Consensus Estimate of $2.48 per share, representing a surprise of 1.61%. For the previous quarter, the company was expected to post earnings of $2.35 per share and it actually produced earnings of $2.62 per share, delivering a surprise of 11.49%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for East West Bancorp lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
East West Bancorp currently has an Earnings ESP of +0.44%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on April 21, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Malaga Financial (OTCMKTS:MLGF – Get Free Report) and East West Bancorp (NASDAQ:EWBC – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.
Dividends Malaga Financial pays an annual dividend of $1.00 per share and has a dividend yield of 4.7%. East West Bancorp pays an annual dividend of $3.20 per share and has a dividend yield of 2.7%. Malaga Financial pays out 45.9% of its earnings in the form of a dividend. East West Bancorp pays out 33.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. East West Bancorp has raised its dividend for 8 consecutive years.
Volatility and Risk Malaga Financial has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500. Comparatively, East West Bancorp has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.
Profitability This table compares Malaga Financial and East West Bancorp’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Malaga Financial N/A N/A N/A East West Bancorp 28.36% 15.72% 1.68% Analyst Recommendations This is a summary of current recommendations for Malaga Financial and East West Bancorp, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Malaga Financial 0 0 0 0 0.00 East West Bancorp 0 5 11 0 2.69 East West Bancorp has a consensus price target of $127.36, indicating a potential upside of 8.54%. Given East West Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe East West Bancorp is more favorable than Malaga Financial.
Insider and Institutional Ownership 1.2% of Malaga Financial shares are held by institutional investors. Comparatively, 89.5% of East West Bancorp shares are held by institutional investors. 1.0% of East West Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings This table compares Malaga Financial and East West Bancorp”s revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Malaga Financial N/A N/A $21.55 million $2.18 9.84 East West Bancorp $4.67 billion 3.44 $1.33 billion $9.52 12.33 East West Bancorp has higher revenue and earnings than Malaga Financial. Malaga Financial is trading at a lower price-to-earnings ratio than East West Bancorp, indicating that it is currently the more affordable of the two stocks.
Summary East West Bancorp beats Malaga Financial on 15 of the 16 factors compared between the two stocks.
About Malaga Financial (Get Free Report)
Malaga Financial Corporation operates as the holding company for Malaga Bank that provides various community banking products and services to personal and business customers. It offers checking, savings, NOW, and money market accounts, certificates of deposits, business banking, consumer, and demand deposits. The company also provides commercial real estate, single and multi-family residential mortgage, consumer, 14-unit investment property, construction, personal, and business loans; home equity lines of credit; and certificates of deposit. In addition, it offers coupon redemption, direct deposit, overdraft lines of credit, telephone transfers, U.S. savings bond redemption, and wire transfer services; and ATM and VISA debit cards, bank by mail, medallion signature guarantee, night depository, notary, safe deposit boxes, and trust deed note collection services. Further, the company provides online banking services, including bill payer, e-statements, and mobile banking services. The company was incorporated in 2002 and is headquartered in Palos Verdes Estates, California.
About East West Bancorp (Get Free Report)
East West Bancorp, Inc. operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to businesses and individuals in the United States. The company operates through three segments: Consumer and Business Banking, Commercial Banking, and Other. It accepts various deposit products, such as personal and business checking and savings accounts, money market, and time deposits. The company’s loan products include mortgage and home equity, commercial and residential real estate, working capital lines of credit, construction finance, trade finance, letters of credit, commercial business, affordable housing loans, asset-based lending, asset-backed finance, project finance, loan syndication, and equipment financing, as well as financing services for clients to facilitate their business transactions between the United States and Asia. It also provides various wealth management, treasury management, foreign exchange, and interest rate and commodity risk hedging services; and mobile and online banking services. The company was founded in 1973 and is headquartered in Pasadena, California.
Receive News & Ratings for Malaga Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Malaga Financial and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEAnalyzing Hilton Worldwide (HLT) & Its Competitors
NEXT HEADLINE »Contrasting Nexentis Technologies (NASDAQ:NXTS) & Scheid Vineyards (OTCMKTS:SVIN)
Wall Street analysts expect East West Bancorp (EWBC - Free Report) to post quarterly earnings of $2.46 per share in its upcoming report, which indicates a year-over-year increase of 17.7%. Revenues are expected to be $754.58 million, up 9% from the year-ago quarter.
Over the last 30 days, there has been an upward revision of 0.3% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
In light of this perspective, let's dive into the average estimates of certain East West Bancorp metrics that are commonly tracked and forecasted by Wall Street analysts.
The collective assessment of analysts points to an estimated 'Net interest margin' of 3.4%. Compared to the present estimate, the company reported 3.4% in the same quarter last year.
Analysts expect 'Efficiency ratio' to come in at 35.7%. Compared to the present estimate, the company reported 36.4% in the same quarter last year.
According to the collective judgment of analysts, 'Average Balance - Total interest-earning assets' should come in at $78.03 billion. The estimate is in contrast to the year-ago figure of $72.69 billion.
The combined assessment of analysts suggests that 'Total nonperforming assets' will likely reach $218.42 million. Compared to the current estimate, the company reported $182.20 million in the same quarter of the previous year.
Analysts' assessment points toward 'Leverage ratio' reaching 11.0%. Compared to the current estimate, the company reported 10.5% in the same quarter of the previous year.
The consensus estimate for 'Tier 1 capital ratio' stands at 15.2%. The estimate is in contrast to the year-ago figure of 14.3%.
The average prediction of analysts places 'Total capital ratio' at 16.5%. The estimate compares to the year-ago value of 15.6%.
Analysts forecast 'Total nonaccrual loans' to reach $176.26 million. The estimate is in contrast to the year-ago figure of $153.20 million.
Analysts predict that the 'Total Noninterest Income' will reach $96.80 million. Compared to the current estimate, the company reported $92.10 million in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Net Interest Income' should arrive at $657.73 million. The estimate is in contrast to the year-ago figure of $600.20 million.
The consensus among analysts is that 'Lending fees' will reach $27.84 million. The estimate compares to the year-ago value of $26.23 million.
It is projected by analysts that the 'Foreign exchange income' will reach $14.81 million. The estimate is in contrast to the year-ago figure of $15.84 million.
View all Key Company Metrics for East West Bancorp here>>>
East West Bancorp shares have witnessed a change of +12.8% in the past month, in contrast to the Zacks S&P 500 composite's +6% move. With a Zacks Rank #3 (Hold), EWBC is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
PASADENA, Calif.--(BUSINESS WIRE)--East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, reported first quarter 2026 net income of $358 million, or $2.57 per diluted share. Total loans and deposits both reached new records as of March 31, 2026, at $58.1 billion and $68.9 billion, respectively. Return on average assets was 1.79%, return on average common equity was 16.0%, and book value per share grew 14% year-over-year. “East West reported reco.
East West Bancorp (EWBC - Free Report) came out with quarterly earnings of $2.57 per share, beating the Zacks Consensus Estimate of $2.46 per share. This compares to earnings of $2.09 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.55%. A quarter ago, it was expected that this bank holding company would post earnings of $2.48 per share when it actually produced earnings of $2.52, delivering a surprise of +1.61%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
East West Bancorp, which belongs to the Zacks Banks - West industry, posted revenues of $773.75 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.54%. This compares to year-ago revenues of $692.3 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
East West Bancorp shares have added about 6% since the beginning of the year versus the S&P 500's gain of 3.9%.
What's Next for East West Bancorp?While East West Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for East West Bancorp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.53 on $770.95 million in revenues for the coming quarter and $10.25 on $3.11 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Columbia Banking (COLB - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on April 23.
This bank holding company is expected to post quarterly earnings of $0.68 per share in its upcoming report, which represents a year-over-year change of +1.5%. The consensus EPS estimate for the quarter has been revised 0.7% higher over the last 30 days to the current level.
Columbia Banking's revenues are expected to be $673.09 million, up 37% from the year-ago quarter.
For the quarter ended March 2026, East West Bancorp (EWBC - Free Report) reported revenue of $773.75 million, up 11.8% over the same period last year. EPS came in at $2.57, compared to $2.09 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $754.58 million, representing a surprise of +2.54%. The company delivered an EPS surprise of +4.55%, with the consensus EPS estimate being $2.46.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how East West Bancorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net interest margin: 3.5% versus 3.4% estimated by four analysts on average.Efficiency ratio: 36.2% compared to the 35.7% average estimate based on four analysts.Average Balance - Total interest-earning assets: $77.97 billion versus $78.03 billion estimated by three analysts on average.Annualized quarterly net charge-offs to average loans HFI: 0.1% versus the three-analyst average estimate of 0.2%.Total nonperforming assets: $216.32 million versus $218.42 million estimated by two analysts on average.Leverage ratio: 11% compared to the 11% average estimate based on two analysts.Tier 1 capital ratio: 15.1% compared to the 15.2% average estimate based on two analysts.Total capital ratio: 16.5% compared to the 16.5% average estimate based on two analysts.Total nonaccrual loans: $180.65 million versus the two-analyst average estimate of $176.26 million.Total Noninterest Income: $102.56 million compared to the $96.8 million average estimate based on four analysts.Net Interest Income: $671.19 million versus the four-analyst average estimate of $657.73 million.Commercial and consumer deposit-related fees: $30.62 million versus $29.23 million estimated by three analysts on average.View all Key Company Metrics for East West Bancorp here>>>
Shares of East West Bancorp have returned +13.5% over the past month versus the Zacks S&P 500 composite's +9.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways EWBC Q1 EPS of $2.57 beat estimates and rose 22.9% YoY on higher NII, fee income, and lower provisions.EWBC's revenues grew 11.7% as NII climbed 11.8% and margin expanded, with non-interest income also rising.EWBC witnessed loan and deposit growth, but higher expenses and mixed asset quality trends remained concerns. East West Bancorp, Inc.’s (EWBC - Free Report) first-quarter 2026 earnings per share (EPS) of $2.57 beat the Zacks Consensus Estimate of $2.46. Moreover, the bottom line increased 22.9% from the prior-year quarter’s level.
The results were primarily aided by an increase in net interest income (NII) and non-interest income alongside lower provisions. Also, loan and deposit balances increased sequentially in the quarter. However, higher non-interest expenses acted as a spoilsport.
Net income available to common shareholders was $357.8 million, up from $290.2 million in the prior-year quarter.
EWBC’s Revenues & Expenses IncreaseQuarterly net revenues were $773.7 million, up 11.7% year over year. Moreover, the top line beat the Zacks Consensus Estimate of $754.5 million.
Quarterly NII amounted to $671.2 million, which increased 11.8% year over year. Further, net interest margin (NIM) expanded 14 basis points (bps) to 3.49%. We expected NII and NIM to be $661 million and 3.39%, respectively.
Total non-interest income was $102.5 million, up 11.4% year over year. An increase in all components, except lending and loan servicing fees income, foreign exchange income and customer derivative income, drove the improvement. We estimated non-interest income to be $89.6 million.
Non-interest expenses totaled $280.3 million, up 11.2% from the prior-year quarter’s level. The rise was due to an increase in all components except deposit account expense and deposit insurance premiums and regulatory assessment charges. Our estimate for the same was $268.6 million.
The efficiency ratio was 36.23%, down from 36.42% in the prior-year quarter. A fall in the efficiency ratio indicates an improvement in profitability.
As of March 31, 2026, net loans held for investment (HFI) were $57.3 billion, reflecting a 2.1% rise sequentially. Further, total deposits rose 2.7% to $68.9 billion.
East West Bancorp’s Credit Quality: A Mixed BagAnnualized quarterly net charge-offs were 0.09% of average loans HFI, down 3 bps from the prior-year quarter’s level.
The provision for credit losses was $36 million, down from $49 million in the prior-year quarter. Our estimate for the same was $45.4 million.
Non-performing assets totaled $216.3 million, up from $182.2 million in the prior-year quarter.
EWBC’s Capital & Profitability Ratios ImproveAs of March 31, 2026, the common equity Tier 1 (CET1) capital ratio was 15.13%, up from 14.32% as of March 31, 2025. The total risk-based capital ratio was 16.45%, up from 15.63% a year ago.
Return on average assets was 1.79%, up from 1.56% in the prior-year quarter. Return on average tangible equity was 16.92%, up from 15.92%.
East West Bancorp’s Share Repurchase UpdateIn the reported quarter, East West Bancorp repurchased approximately 938,000 shares for $98 million. As of March 31, 2026, $117 million of authorization remained available for repurchase.
Our View on EWBCEast West Bancorp is well-poised for organic growth with decent loan improvement, solid deposit balances and diversified fee income streams. However, a rise in expenses and a weak asset quality amid a tough operating backdrop are likely to hurt the bottom line.
Currently, EWBC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other BanksBOK Financial Corporation's (BOKF - Free Report) first-quarter 2026 earnings of $2.58 per share surpassed the Zacks Consensus Estimate of $2.30. The bottom line jumped 38.7% from the prior-year quarter.
BOKF’s results benefited from higher net interest income and total fees and commissions. An increase in loans was another positive. However, the rise in operating expenses was a major undermining factor.
WaFd, Inc.’s (WAFD - Free Report) second-quarter fiscal 2026 (ended March 31) adjusted earnings of 83 cents per share beat the Zacks Consensus Estimate of 74 cents. The bottom line also jumped 27.7% year over year.
WAFD’s results reflected higher net interest income and non-interest income. However, elevated expenses and provisions were the undermining factors. A decline in loans and deposits was another headwind.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
East West Bancorp (EWBC - Free Report) is headquartered in Pasadena, and is in the Finance sector. The stock has seen a price change of 9.15% since the start of the year. The bank holding company is paying out a dividend of $0.80 per share at the moment, with a dividend yield of 2.61% compared to the Banks - West industry's yield of 2.8% and the S&P 500's yield of 1.39%.
Looking at dividend growth, the company's current annualized dividend of $3.20 is up 33.3% from last year. Over the last 5 years, East West Bancorp has increased its dividend 5 times on a year-over-year basis for an average annual increase of 18.17%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. East West Bancorp's current payout ratio is 32%, meaning it paid out 32% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, EWBC expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $10.46 per share, representing a year-over-year earnings growth rate of 10.22%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, EWBC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
East West Bancorp demonstrates strong profitability, disciplined risk control, and sector-leading efficiency, confirmed by robust 2026 Q1 results. EWBC's niche as a US–Greater China financial bridge drives revenue growth but exposes it to geopolitical and macroeconomic risks. Valuation is rich, with a P/E of 12.5x and P/B of 1.9x, reflecting premium pricing and minimal safety margin.
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in Pasadena, East West Bancorp (EWBC - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 7.58%. The bank holding company is currently shelling out a dividend of $0.80 per share, with a dividend yield of 2.65%. This compares to the Banks - West industry's yield of 2.66% and the S&P 500's yield of 1.42%.
Looking at dividend growth, the company's current annualized dividend of $3.20 is up 33.3% from last year. Over the last 5 years, East West Bancorp has increased its dividend 5 times on a year-over-year basis for an average annual increase of 18.17%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. East West Bancorp's current payout ratio is 32%, meaning it paid out 32% of its trailing 12-month EPS as dividend.
EWBC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $10.61 per share, representing a year-over-year earnings growth rate of 11.80%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, EWBC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: East West Bancorp (EWBC - Free Report) Headquartered in Pasadena, CA, East West Bancorp is the bank holding company for East West Bank. Incorporated in 1998, the company serves as a financial bridge between the United States and China by providing various consumer as well as commercial banking services to the Asian-American community.
EWBC is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Finance stock. EWBC has a Momentum Style Score of A, and shares are up 1.5% over the past four weeks.
Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.30 to $10.61 per share. EWBC also boasts an average earnings surprise of +5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, EWBC should be on investors' short list.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
East West Bancorp (EWBC - Free Report) is headquartered in Pasadena, and is in the Finance sector. The stock has seen a price change of 9.48% since the start of the year. Currently paying a dividend of $0.80 per share, the company has a dividend yield of 2.6%. In comparison, the Banks - West industry's yield is 2.69%, while the S&P 500's yield is 1.44%.
Looking at dividend growth, the company's current annualized dividend of $3.20 is up 33.3% from last year. Over the last 5 years, East West Bancorp has increased its dividend 5 times on a year-over-year basis for an average annual increase of 18.17%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. East West Bancorp's current payout ratio is 32%, meaning it paid out 32% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, EWBC expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $10.61 per share, which represents a year-over-year growth rate of 11.80%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, EWBC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Investors choosing between iShares MSCI Europe Financials ETF (EUFN +3.50%) and State Street SPDR S&P Regional Banking ETF (KRE +0.99%) might weigh the former's higher yield and international exposure against the latter's lower cost and domestic focus.
Both funds target the financial sector but offer vastly different geographical and sub-industry tilts. While the iShares MSCI Europe Financials ETF provides access to large-cap European institutions, the State Street SPDR S&P Regional Banking ETF focuses on the mid- and small-cap banks that power the U.S. economy. With assets under management (AUM) exceeding $3.5 billion for each fund, both products offer substantial scale for investors seeking targeted sector exposure, although they respond to very different macroeconomic drivers.
Snapshot (cost & size)MetricKREEUFNIssuerSPDRiSharesExpense ratio0.35%0.48%1-yr return (as of June 3, 2026)21.30%23.10%Dividend yield2.30%3.50%Beta0.850.79AUM$3.9 billion$3.6 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The iShares fund carries a higher 0.49% expense ratio compared to the 0.35% fee for the State Street fund. However, income-focused investors may find the iShares fund more appealing, as it offers a more generous payout with a distribution yield that is 1.26 percentage points higher than its domestic counterpart.
Performance & risk comparisonMetricKREEUFNMax drawdown (5 yr)(52.70%)(35.20%)Growth of $1,000 over 5 years (total return)$1,099$2,235
NASDAQ: EUFNiShares Trust - iShares Msci Europe Financials ETF
Today's Change
(
3.50
%) $
1.30
Current Price
$
38.39
What's insideThe iShares MSCI Europe Financials ETF, launched in 2010, concentrates its assets in developed European markets and currently holds 84 positions. Its largest positions include HSBC (LSE:HSBA.L) at 9.63%, Banco Santander (BME:SAN.MC) at 5.35%, and Allianz (XETRA:ALV.DE) at 5.00%. The portfolio is nearly entirely focused on financial services at 97.00%, with small allocations to technology and cash at 1.00% each. Over the trailing 12 months, it has paid $1.33 per share in dividends.
In contrast, the State Street SPDR S&P Regional Banking ETF tracks a modified equal-weighted index of 147 holdings and was launched in 2006. Its top holdings include Popular (BPOP +1.70%) at 1.62%, UMB Financial (UMBF +0.42%) at 1.60%, and East West Bancorp (EWBC +1.63%) at 1.59%. This domestic fund is 100.00% invested in financial services and maintains a much more granular exposure than its European counterpart, targeting large, mid, and small-cap stocks. It has paid $1.57 per share over the trailing 12 months.
For more guidance on ETF investing, check out the full guide at this link.
NYSEMKT: KRESPDR Series Trust - State Street SPDR S&P Regional Banking ETF
Today's Change
(
0.99
%) $
0.71
Current Price
$
72.35
What this means for investors Both KRE and EUFN charge more than most broad market index funds, and that is worth understanding before investing in either. Specialized sector ETFs, like these focused on a single industry or international market, cost more to operate than simple index trackers. They require more targeted construction, more frequent rebalancing, and in EUFN's case, the added complexity of currency management and international market access. You’re paying a premium for that precision.
Here is where things get interesting. These two funds may share a category label, but they are operating in entirely separate financial universes. KRE focuses entirely on U.S. regional banks, which are the Main Street lenders whose fortunes rise and fall with local economies, interest rates, and domestic credit conditions. EUFN is investing in European banks, insurers, and financial services companies operating under entirely different central banks and economic drivers.
European financials have delivered the stronger recent performance, and EUFN's higher yield adds further appeal for income-focused investors. KRE gives you a straightforward domestic recovery bet on U.S. regional banks in a deregulation-friendly environment at a lower cost. Regardless of which you choose, these funds are narrow, specialized bets. Use them to complement a diversified portfolio rather than anchor one.
