East West Bancorp Inc (EWBC) 2025 Q2 法說會逐字稿

Good afternoon. Welcome to the East West Bancorp's second-quarter 2025 earnings conference call.

午安.歡迎參加 East West Bancorp 2025 年第二季財報電話會議。

(Operator Instructions) Please note this event is being recorded.

（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the conference over to Adrienne Atkinson, Director of Investor Relations. Please go ahead.

現在，我想將會議交給投資者關係總監 Adrienne Atkinson。請繼續。

Thank you, operator. Good afternoon and thank you, everyone, for joining us to review East West Bancorp's second-quarter 2025 financial results.

謝謝您，接線生。下午好，感謝大家與我們一起回顧 East West Bancorp 2025 年第二季的財務表現。

With me are Dominic Ng, Chairman and Chief Executive Officer; Chris Del Moral-Niles, Chief Financial Officer; and Irene Oh, Chief Risk Officer.

與我一起的還有董事長兼執行長 Dominic Ng、財務長 Chris Del Moral-Niles 和首席風險長 Irene Oh。

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.

本次電話會議正在錄音中，可在我們的投資人關係網站上重播。本次電話會議中引用的幻燈片可在我們的投資者關係網站上找到。

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

管理階層可能會做出預測或其他前瞻性陳述，由於存在許多風險和不確定性，這些預測或其他前瞻性陳述可能與實際結果有重大差異。管理階層可能會討論非公認會計準則財務指標。有關風險因素的更詳細描述以及 GAAP 與非 GAAP 財務指標的對照，請參閱我們向美國證券交易委員會提交的文件，包括今天提交的 8-K 表格。

I will now turn the call over to Dominic.

現在我將把電話轉給多明尼克。

Thank you, Adrienne. Good afternoon and thank you for joining us for our second-quarter earnings call.

謝謝你，艾德麗安。下午好，感謝您參加我們的第二季財報電話會議。

I'm pleased to report strong second-quarter results. We continued to grow the bank and reported record quarterly revenue and net interest income. Both loan and deposit growth were solid, with average growth up 2% quarter over quarter in each.

我很高興地報告第二季的強勁業績。我們繼續發展銀行業務，並報告了創紀錄的季度收入和淨利息收入。貸款和存款成長穩健，平均季增 2%。

Our relationship-driven model continued to support consumer and commercial growth on both sides of the balance sheet. This growth and another quarter of solid fee income fueled a 16.7% adjusted return on tangible common equity and a 1.6% return on average assets.

我們的關係驅動模式繼續支持資產負債表兩側的消費者和商業成長。這一成長加上另一個季度的穩定費用收入推動了有形普通股權益的調整後回報率達到 16.7%，平均資產回報率達到 1.6%。

Asset quality has remained resilient and credit is performing as expected. Both criticized and non-performing loans decreased from the end of first quarter.

資產品質維持彈性，信貸表現符合預期。批評貸款和不良貸款較第一季末均有所減少。

We continue to focus on using our capital to support customers and capitalize on any market opportunities that arise. With approximately 10% tangible common equity, we are operating from a position of strength.

我們將繼續專注於利用我們的資本來支持客戶並利用出現的任何市場機會。憑藉約 10% 的有形普通股權益，我們擁有雄厚的實力。

Lastly, I'm pleased to announce that East West Bank has, once again been, been ranked by Bank Director magazine as the number 1 performing bank above $50 billion in assets. This is the third consecutive year we have earned a top spot. It's our fourth title in the past five years. This achievement is a testament to the steady execution of our associates and our ongoing customer focus.

最後，我很高興地宣布，華美銀行再次被《銀行董事》雜誌評為資產超過 500 億美元的表現最佳的銀行。這是我們連續第三年奪得榜首。這是我們過去五年來的第四個冠軍。這項成就證明了我們員工的穩健執行力和我們持續的以客戶為中心。

I will now turn the call over to Chris to provide more details on our second-quarter financial performance. Chris?

現在我將把電話轉給克里斯，讓他提供有關我們第二季財務表現的更多細節。克里斯？

Thank you, Dominic. Let me start with a recap on our deposits.

謝謝你，多米尼克。首先讓我回顧一下我們的存款狀況。

As Dominic mentioned, total average deposits grew 2% quarter over quarter, while end-of-period deposits grew 3%. We were particularly encouraged by the strong growth in non-interest bearing deposits this quarter. We also saw growth in interest-bearing checking, money market, and time deposit balances, rounding out another great deposit-led quarter.

正如 Dominic 所提到的，平均存款總額較上季成長 2%，而期末存款則成長 3%。本季無息存款的強勁成長令我們感到特別鼓舞。我們還看到有利息的支票、貨幣市場和定期存款餘額有所增長，從而完成了另一個以存款為主導的良好季度。

We saw notable growth in our Commercial Deposit segment, complemented by continued growth in our Consumer and Business Banking balances, underscoring the value of our strong customer relationships across the board. We continue to expect [that] each customer deposits will fund our loan growth this year.

我們的商業存款業務取得了顯著成長，同時消費者和商業銀行餘額也持續成長，凸顯了我們與客戶之間牢固關係的價值。我們繼續預計，每位客戶的存款都將為今年的貸款成長提供資金。

Turning to loans on slide 5, our average loan balances were up $940 million quarter to quarter. C&I lending was the largest contributor, with new originations coming from a broad range of industries; while utilization remained broadly stable over quarter. Three weeks into this quarter, our pipelines remain active. We expect to continue growing C&I throughout this quarter.

談到幻燈片 5 上的貸款，我們的平均貸款餘額環比增加了 9.4 億美元。商業和工業貸款是最大的貢獻者，新貸款來自各行各業；而利用率在本季基本保持穩定。本季度已過去三週，我們的管道仍然活躍。我們預計本季 C&I 將繼續成長。

Demand for residential mortgage products also proved relatively durable. At current rates, we continue to see a strong pipeline into Q3. We would expect residential mortgage to contribute a similar or higher volume to the balance sheet in Q3. We also grew our commercial real estate balances modestly this quarter, as we continue to support our longstanding CRE clients.

事實證明，住宅抵押貸款產品的需求也相對持久。按照目前的速度，我們將繼續看到第三季的強勁成長動能。我們預計住宅抵押貸款在第三季對資產負債表的貢獻將達到相似或更高的水平。由於我們繼續為長期的商業房地產客戶提供支持，本季度我們的商業房地產餘額也略有增長。

Slide 6 covers our net interest income trends. We grew dollar net interest income to $617 million, up $17 million from Q1. Looking back to the start of the cutting cycle, we have decreased interest-bearing deposit costs by 67 basis points, successfully exceeding our 50% data guidance shared in prior quarters. We continue to expect dollar and interest income growth as we progress throughout the year.

幻燈片 6 涵蓋了我們的淨利息收入趨勢。我們的美元淨利息收入成長至 6.17 億美元，比第一季增加 1,700 萬美元。回顧降息週期的開始，我們已將計息存款成本降低了 67 個基點，成功超過了前幾季分享的 50% 的數據指引。隨著全年的進展，我們預計美元和利息收入將繼續成長。

Moving on to fees on slide 7, we note that total non-interest income was $86 million in the second quarter; and fee income was $81 million, the third highest quarter for fees in East West's history. While these fees weren't as strong as the first quarter, which was a new record for us, we note that for the six months ended June 30, total fee income has grown 14% as compared to the first six months of last year. This sustained execution on fee income levels reflects our ongoing focus on the products, services, and capabilities that will further diversify our revenue over time.

繼續討論幻燈片 7 上的費用，我們注意到第二季非利息總收入為 8,600 萬美元；費用收入為 8,100 萬美元，這是 East West 歷史上費用收入第三高的季度。雖然這些費用不如第一季那麼強勁，但這對我們來說是一個新紀錄，但我們注意到，截至 6 月 30 日的六個月內，總費用收入與去年上半年相比增長了 14%。費用收入水準的持續執行反映了我們對產品、服務和能力的持續關注，這些產品、服務和能力將隨著時間的推移進一步實現收入多樣化。

Turning to expenses on slide 8, East West continued to deliver industry-leading efficiency while investing for its future growth. The Q2 efficiency ratio was 36.4%. Total operating non-interest expense was $230 million for the second quarter. We continue to expect expenses will come in line with our guidance for the full year.

談到第 8 張投影片上的支出，East West 在投資未來成長的同時繼續提供業界領先的效率。Q2效率比為36.4%。第二季總營運非利息支出為 2.3 億美元。我們仍然預計全年支出將符合我們的預期。

Regarding income tax expense, we note that second-quarter income tax expense was $92 million, with an effective tax rate of 22.9%. Second-quarter income tax expense included $6 million of one-time expense related to California's adoption of a single single sales factor apportionment method, which became effective on June 30. We continue to expect our full-year effective tax rate to be approximately 23%. However, subsequent quarters will likely be under that and closer to 22%.

關於所得稅費用，我們注意到第二季所得稅費用為 9,200 萬美元，有效稅率為 22.9%。第二季所得稅費用包括與加州採用單一銷售因素分攤方法相關的 600 萬美元一次性費用，該方法於 6 月 30 日生效。我們繼續預計全年有效稅率約為 23%。然而，隨後幾季的增幅可能會低於這一水平，接近 22%。

Now, let me hand the call over to Irene for some comments on credit and capital.

現在，讓我把電話交給艾琳，請她對信貸和資本發表一些評論。

Thank you, Chris. Good afternoon to all on the call.

謝謝你，克里斯。各位來賓下午好。

As you can see on slide 9, our asset quality metrics continue to broadly outperform the industry, with criticized non-accrual loans and non-performing asset metrics all improving.

正如您在幻燈片 9 上看到的，我們的資產品質指標繼續遠遠優於行業，受到批評的不良貸款和不良資產指標均有所改善。

Non-approving assets decreased by 2 basis points quarter over quarter to 22 basis points of total assets as of June 30, 2025. The criticized loans ratio decreased during the quarter by 14 basis points to 2.15% of loans. The special mention ratio decreased 10 basis points quarter to quarter to 81 basis points of total loans, while the classified loans ratios decreased 4 basis points to 1.34%.

截至 2025 年 6 月 30 日，未核准資產佔總資產比率較上季下降 2 個基點至 22 個基點。本季度，受批評貸款比例下降了 14 個基點，至貸款總額的 2.15%。關注類貸款比率按季下降 10 個基點至貸款總額 81 個基點，特定分類貸款比率則下降 4 個基點至 1.34%。

We record a net charge-off of 11 basis points in the second quarter or $15 million compared to 12 basis points in the first quarter or also $15 million. We recorded a lower provision for credit losses of $45 million in the second quarter compared with $49 million for the first quarter.

我們在第二季度記錄了 11 個基點或 1500 萬美元的淨沖銷，而第一季則為 12 個基點或 1500 萬美元。我們第二季的信貸損失準備金為 4,500 萬美元，低於第一季的 4,900 萬美元。

We remain vigilant and proactive in managing our credit risks. According to slide 10, the allowance for credit losses increased $25 million to $760 million or 1.38% of total loans as of June 30, 2025, considering the changes to the economic outlook. We believe we are adequately reserved for the content of our loan portfolio, given the current outlook.

我們始終保持警惕並積極主動地管理我們的信用風險。根據投影片 10，考慮到經濟前景的變化，截至 2025 年 6 月 30 日，信貸損失準備金增加了 2,500 萬美元，達到 7.6 億美元，佔貸款總額的 1.38%。鑑於目前的前景，我們相信，我們對貸款組合的內容有足夠的保留。

Turning to slide 11, as Dominic mentioned, our strong capital levels allow us to operate from a position of strength and support our customers with confidence. All of East West's regulatory capital ratios remain well in excess of regulatory requirements for well-capitalized institutions and well above regional and national bank peers.

翻到第 11 張投影片，正如 Dominic 所提到的，我們強大的資本水準使我們能夠以實力為基礎開展營運並滿懷信心地為客戶服務。所有 East West 銀行的監理資本比率均遠高於資本充足機構的監理要求，且遠高於地區和國家銀行同業。

East West's common equity Tier 1 capital ratio rose nearly 20 basis points to a robust 14.5%, while the tangible common equity ratio rose to 10%. These capital ratios place us amongst the best capitalized banks in the industry.

East West 銀行的普通股一級資本比率上升近 20 個基點，達到強勁的 14.5%，而有形普通股比率則上升至 10%。這些資本比率使我們成為業界資本最雄厚的銀行之一。

In the second quarter, East West repurchased approximately 26,000 shares of common stock for approximately $2 million. We currently have $241 million of repurchase authorization that remains available for future buybacks.

第二季度，East West 以約 200 萬美元回購了約 26,000 股普通股。我們目前擁有 2.41 億美元的回購授權，可供未來回購。

East West's third-quarter 2025 dividends will be payable on August 15, 2025, to stockholders of record on August 4, 2025.

East West 2025 年第三季的股利將於 2025 年 8 月 15 日支付給 2025 年 8 月 4 日登記在冊的股東。

I will now turn it back to Chris to share our outlook. Chris?

現在我將把話題轉回給克里斯，讓他分享我們的觀點。克里斯？

Thank you, Irene.

謝謝你，艾琳。

We are making a few updates to our full-year outlook this time. We are assuming forward curves as of quarter end and we continue to expect full-year end-of-period loan growth will fall in the range of 4% to 6%. However, regarding net interest income and revenue trends, we see both trending above 7% for the full year.

這次我們對全年展望做了一些更新。我們假設截至季度末的遠期曲線，並繼續預期全年期末貸款成長率將在 4% 至 6% 之間。然而，就淨利息收入和收入趨勢而言，我們預計全年兩者均將超過 7%。

We're also adjusting our outlook on net charge-offs. We now expect full-year net charge-offs to fall in the range between 15 basis points and 25 basis points.

我們也在調整對淨沖銷的展望。我們現在預計全年淨沖銷額將在 15 個基點至 25 個基點之間。

As I mentioned earlier, we continue to expect our full-year tax rate to be about 23%. We continue to expect that amortization of our tax credits and CRA investment expense will fall in the range of $70 million to $80 million.

正如我之前提到的，我們仍然預計全年稅率約為 23%。我們繼續預計，我們的稅收抵免和 CRA 投資費用的攤銷將在 7,000 萬至 8,000 萬美元之間。

With that, let me turn the call over (technical difficulty) the line for questions. Operator?

說完這些，讓我把電話轉交給（技術難題）提問者。操作員？

We will now begin the question-and-answer session.

我們現在開始問答環節。

(Operator Instructions)

（操作員指示）

Casey Haire, Autonomous.

凱西‧海爾 (Casey Haire)，《自治》。

First question will just be on the margin. You guys are doing a great job holding the line on loan yields; and then, obviously, the deposit [beta] pushing above 60%. Just wondering your ability to sustain both of them, going forward.

第一個問題只是邊緣問題。你們在控制貸款收益率方面做得很好；然後，顯然，存款收益率也突破了 60%。我只是想知道你今後是否有能力維持他們兩個的運作。

Yeah. I think we're looking at deposit cost optimization on a continuous basis. In fact, that'll probably be a continued focus for us here in Q3, whether or not we get a rate cut or not in September. We think there's an opportunity for us to do some more work on that front. We'll continue to manage that.

是的。我認為我們正在持續關注存款成本優化。事實上，無論 9 月是否降息，這都可能是我們在第三季持續關注的重點。我們認為我們有機會在這方面做更多的工作。我們將繼續管理這一點。

Obviously, we lowered our total deposit costs a few basis points this quarter. We remain focused and diligent on that.

顯然，本季我們將總存款成本降低了幾個基點。我們將繼續專注於此並勤奮努力。

On the asset repricing side, I think we continue to expect --I think there's always a bit of a day count effect from the first to the second quarter in mortgages and mortgage-backed securities but beyond that, I think we continue to expect that those fixed rate asset classes will have an opportunity to reprice positively.

在資產重新定價方面，我認為我們繼續預期——我認為從第一季到第二季度，抵押貸款和抵押貸款支持證券總是會受到一些日數計算的影響，但除此之外，我認為我們繼續預期這些固定利率資產類別將有機會進行積極的重新定價。

So we're optimistic that we'll be able to maintain the margin within a range of (inaudible) through the third quarter. Obviously, we'll see how and when rate cuts come after that.

因此，我們樂觀地認為，我們將能夠在第三季將利潤率維持在（聽不清楚）的範圍內。顯然，我們將拭​​目以待此後降息的方式和時間。

Got you. Okay. And then, just wanted to touch on credit. You guys did build the reserve -- led by C&I looks like -- despite favorable migration; and you took your charge-off guide down. Just maybe a little color on what's going on there. What are you seeing in C&I? Or did you just change the waitings-around? Just a little color on the reserve build.

明白了。好的。然後，我只想談談信用。儘管移民情況良好，但你們還是建立了儲備——看起來是由 C&I 領導的；並且你們撤下了沖銷指南。也許只是對那裡發生的事情有一點了解。您在 C&I 中看到了什麼？還是你只是改變了等待的方式？儲備建築上只有一點顏色。

Hi. This is Irene. I'll answer that.

你好。這是艾琳。我會回答這個問題。

It wasn't anything specific that we saw within the C&I book. I'll just comment that it really has to do with the CECL model and the economic outlook and forecast.

我們在 C&I 書中沒有看到任何具體內容。我只想評論說，這確實與 CECL 模型以及經濟前景和預測有關。

Manan Gosalia, Morgan Stanley.

馬南‧戈薩利亞，摩根士丹利。

Can you talk about the impact of the recent legislative changes in the renewable energy tax credits business?

您能談談最近的立法變化對再生能源稅收抵免業務的影響嗎？

Sure. We're taking a look at the renewable energy investments that we make, as well as the lending that we do. Obviously, that will have implications for the go-forward. However, as we looked at all the projects we had already committed to and all the ones that were in flight, they seem to fall in under the exemption or under the period of grace until the new rules kick in.

當然。我們正在審視我們所做的可再生能源投資以及我們所做的貸款。顯然，這將對未來產生影響。然而，當我們審視所有已承諾的項目和正在進行的項目時，它們似乎都屬於豁免範圍或寬限期，直到新規則生效。

So as we sit here today, all of the existing investments and all our existing loan commitments are unimpacted. We're rethinking about some of our go-forward tax credit investment strategies, as we look down the road.

因此，當我們今天坐在這裡時，所有現有的投資和所有現有的貸款承諾都不受影響。展望未來，我們正在重新考慮一些未來的稅收抵免投資策略。

Presumably, that means that, all else equal, the tax rate would go up? Are there any offsets to that that we should be thinking about for next year?

想必這意味著，在其他條件相同的情況下，稅率將會上升？明年我們是否應該考慮採取一些抵銷措施？

I think the good news is there's an army of consultants that have lots of ideas for us so I think we're thinking through lots of them. I don't know that I would write off our ability to find something to offset those changes in the long run.

我認為好消息是，有大量的顧問為我們提供了許多想法，所以我認為我們正在仔細考慮其中的許多想法。我不知道我是否會否定我們找到某些東西來長期抵消這些變化的能力。

Got it. Thank you.

知道了。謝謝。

Ebrahim Poonawala, Bank of America.

美國銀行的 Ebrahim Poonawala。

Were you trying to finish something, Chris?

你想完成某件事嗎，克里斯？

No. Go ahead. Go ahead.

不。前進。前進。

Okay. Just going back to one on the NII side, the 7%-plus guidance, it implies no growth relative to where we've been in the first half or the second quarter. I'm just wondering, if we don't get rate cuts and you hit your loan growth outlook, shouldn't we assume NII generally to drift higher and track loan growth? Is that the right way to think about direction and pace of NII growth, relative to loan growth?

好的。回到 NII 方面，7% 以上的指導，意味著相對於上半年或第二季而言沒有成長。我只是想知道，如果我們不降息，而你的貸款成長預期也達到了，我們是否應該假設 NII 總體上會走高並追蹤貸款成長？相對於貸款成長，這是思考 NII 成長方向和速度的正確方法嗎？

Yeah. Let me use the framework that you put forward. Yes, we are fundamentally asset-sensitive. So yes, fewer rate cuts is better for us. And so the extent that rate cuts are slower, come later or of a lesser magnitude, we will do better.

是的。讓我使用你提出的框架。是的，我們從根本上對資產很敏感。所以，是的，降息次數越少對我們越好。因此，降息速度越慢、降息時間越晚或降息幅度越小，我們的表現就會越好。

You're also correct: it's a function of loan growth and asset growth. Thankfully, we've had great deposit growth that's allowed us to continue to fund profitable loan growth. To the extent that continues at a good pace, that could be better. And so those are the two key factors that could lead that to be better.

您也說對了：它是貸款成長和資產成長的函數。值得慶幸的是，我們的存款大幅成長，這使我們能夠繼續為盈利的貸款成長提供資金。如果這種情況繼續保持良好的發展速度，情況可能會更好。因此，這兩個關鍵因素可能會使情況變得更好。

I think, Ebrahim, I would say it may be slightly differently as well: I think we came out assuming, this year, that our NII growth would be in line with our overall asset or loan growth, specifically in that 4% to 6% range. We raised that estimate when we went not from 4% to 6% but the 6%-plus back in June. I think we're reraising today, as we go to 7%-plus. And to the extent rates are higher for longer or loan growth comes in better, there's still upside to that.

我認為，易卜拉欣，我會說情況可能也略有不同：我認為我們今年的假設是，我們的 NII 增長將與我們的整體資產或貸款增長保持一致，具體來說是在 4% 到 6% 的範圍內。當我們在 6 月將通膨率從 4% 提高到 6% 以上時，我們就提高了這個估計值。我認為我們今天會再次升息，利率將達到 7% 以上。如果利率長期維持在高點或貸款成長表現較好，那麼仍有上行空間。

Obviously, as Dominic would remind me, part of my task is to make sure we're putting our best foot forward and doing the best we can. And so we'll continue doing that every day.

顯然，正如多明尼克提醒我的那樣，我的任務之一就是確保我們盡最大努力，做到最好。因此，我們每天都會繼續這樣做。

Understood. Maybe just a separate question, it feels like, industry-wide, there's some momentum on loan growth. Obviously, your loan growth guidance implies a pick-up in the back half.

明白了。也許這只是一個單獨的問題，感覺整個行業都有一些貸款成長的勢頭。顯然，您的貸款成長指引暗示下半年將出現回升。

But maybe Dominic, talk to us about just client sentiment around pace of investment picking up. I think there's some seasonality to lending for East West in the second half.

但也許多明尼克，可以和我們談談客戶對投資速度加快的看法。我認為下半年東西方的貸款有一定的季節性。

And are we through the worst of, like, the tariff noise in terms of the clients navigating that? Or are there more structural changes that are happening this time, which was different than what happened in 2018, '19?

就客戶應對關稅噪音而言，我們是否已經度過了最糟糕的時期？或者這次是否發生了更多結構性變化，與 2018 年、2019 年發生的變化不同？

I think the client sentiments are definitely getting better. Not that they love it, just for that the fact is that I think they are more comfortable with the fact that there will be tariffs. However, I think they have more certainty now than in the beginning of the year, when everyone was confused about exactly what would happen.

我認為客戶情緒肯定會變得更好。並不是說他們喜歡這樣，只是因為我認為他們更願意接受徵收關稅的事實。然而，我認為他們現在比年初更加確定了，當時每個人都對究竟會發生什麼感到困惑。

I think that at this point, while there will be tariff, there also will be a pass-through to consumers to a certain extent.

我認為，目前雖然會有關稅，但也會在一定程度上轉嫁給消費者。

And we also noticed that, as I indicated at the last call, quite a few imports were exempted from the tariff. So there are many, many products out there that are exempted.

我們還注意到，正如我在上次電話會議上指出的那樣，相當多的進口商品被免除了關稅。因此，有很多產品都獲得了豁免。

So then, like, each and every one of these business, they have different nuances there. Some of them are able to pass-through to the consumer. Some of them actually are exempted. But by and large, I would say, the vast majority of customers are feeling more comfortable.

那麼，就像這些業務中的每一個一樣，它們都有不同的細微差別。其中一些能夠傳遞給消費者。其中一些實際上是被豁免的。但總的來說，我想說，絕大多數顧客都覺得更舒服了。

I do want to highlight that our East West Bank customers tend to be much more experienced and sophisticated in terms of dealing with tariffs because we got them going, back in 2017. And so they've been having quite a bit of experience of dealing with the situation. Many of them, even prior to the current administration, have already started, like, working on different strategy. So they tend to be much more adept and agile to deal with the situation.

我想強調的是，我們的華美銀行客戶在處理關稅方面往往更有經驗、更老練，因為我們早在 2017 年就已經開始為他們提供服務了。因此，他們在處理這種情況方面擁有相當多的經驗。他們中的許多人，甚至在本屆政府之前，就已經開始製定不同的策略了。因此他們往往更熟練、更敏捷地處理這種情況。

So all in all, I would say that from that standpoint for East West Bank, we will be fine.

總而言之，我想說，從華美銀行的角度來看，我們會沒事的。

The other thing I wanted to point out is that in terms of our loan portfolio, we have such a diversified loan portfolio with different industries, different product types. The import/export business today is actually quite a small part of our business because we have just diversified our overall portfolio so much.

我想指出的另一件事是，就我們的貸款組合而言，我們擁有多元化的貸款組合，涵蓋不同的行業、不同的產品類型。今天的進出口業務實際上只是我們業務的一小部分，因為我們剛剛實現了整體投資組合的多樣化。

So the fact is, with or without tariff, the impact to our P&L is somewhat more minimal than it used to be. And so at this stage, I would say, right now, things are looking better. The issue is that there is still uncertainty out there in the market.

所以事實是，無論有沒有關稅，對我們的損益的影響都比以前小。因此，我想說，目前，情況看起來正在好轉。問題是市場仍然存在不確定性。

On one hand, the good news is that the tax reform is done and overall, it's more, relatively speaking, good for business. However, the tariff is still touch-and-go here and there. While it appears to be coming to more certainty, things can change minute by minute.

一方面，好消息是稅改已經完成，整體而言，這對企業來說相對有利。然而，關稅仍處於不穩定狀態。儘管看起來越來越確定，但事情卻每分鐘都在改變。

We are watching it closely. Been there, done that. But we are pretty confident about how to manage it.

我們正在密切關注此事。去過那裡，做過那事。但我們對於如何管理它非常有信心。

Jared Shaw, Barclays.

巴克萊銀行的賈里德·肖。

Maybe just on the deposit side, when we look at the trends this quarter, it looks like average cost was higher than both end-of-period for first quarter and second quarter. Can you just walk us through how that's moving and your thoughts on how that's going to move through the rest of the year?

也許只是在存款方面，當我們查看本季的趨勢時，看起來平均成本高於第一季和第二季的期末。您能否向我們介紹一下事情的進展以及您對今年剩餘時間的進展有何看法？

Sorry, Jared. If I look at table 6 -- press release -- average total deposit costs were down 2 basis points, total interest-bearing deposit costs were down 3 basis points. So on a quarter-over-quarter basis, I think we're moving in the right direction.

抱歉，賈里德。如果我看表 6——新聞稿——平均總存款成本下降了 2 個基點，總計息存款成本下降了 3 個基點。因此，與上一季相比，我認為我們正朝著正確的方向前進。

And if I'm looking at page 6 in our deck, I would note that the end-of-period interest-bearing deposit costs were down to 3.25%, which is a low point here, relative to last quarter or prior period.

如果我查看我們的簡報的第 6 頁，我會注意到期末計息存款成本下降至 3.25%，相對於上一季或前一時期而言，這是一個低點。

So I think we're moving the deposit costs down.

所以我認為我們正在降低存款成本。

Okay. And the pace of that you feel like is -- that you'll be able to be consistent with that as we move forward, given the forward curve?

好的。而您認為，隨著我們不斷前進，考慮到未來的曲線，您是否能夠保持這種步伐？

Well, I think if you look at page 6, that might be a good graph. I think I've described this in prior conversations. We have had the benefit that we have a good amount of CDs. The CDs essentially price in the forward-curve expectations. And so we actually get to lower the deposit costs as we approach future rate cuts.

嗯，我認為如果你看第 6 頁，那可能是一個很好的圖表。我想我在之前的談話中已經描述過這一點。我們的優勢在於我們擁有大量的 CD。CD 的價格基本上反映了遠期曲線預期。因此，隨著未來利率的降低，我們實際上可以降低存款成本。

And so when you look at the step-down that occurred late last year, that's because there were several cuts that occurred late last year. And as we look at the slower pacing -- the drag -- the line is becoming gradually less steep with each step, it reflects the slower pacing of Fed cuts that we've seen.

因此，當您看到去年年底發生的降幅時，那是因為去年年底發生了幾次削減。當我們看到較慢的步伐——阻力——這條線隨著每一步逐漸變得不那麼陡峭時，它反映了我們所看到的聯準會降息步伐較慢。

So this year, we're expecting potentially some rate cuts later in the year. To the extent we get something in September, you'll see a step down there, certainly at September period end. To the extent we see further down in Q4, we'll see a little bit more in Q4.

因此，我們預計今年稍後可能會出現一些降息。就我們在九月的進展而言，你會看到情況有所下降，尤其是在九月底。就我們預計第四季進一步下滑的程度而言，我們將在第四季度看到更多下滑。

It probably won't be as steep as last year's when we saw 100 basis points. But it will be a good move in the right direction.

它可能不會像去年那麼高，當時我們看到了 100 個基點。但這將是朝著正確方向邁出的良好一步。

Okay. And then, just as a follow-up, on the core expenses, to get to the guidance, it really implies a step-up in the second half of the year. Where are those investments coming from? How much of that is tied to potentially the $100 billion threshold? And if we see that adjusted, would that impact the expense outlook?

好的。然後，作為後續行動，關於核心支出，為了獲得指導，這確實意味著下半年的提升。這些投資來自哪裡？其中有多少與潛在的 1000 億美元門檻有關？如果我們看到調整，這會影響費用前景嗎？

I think what we've tried to communicate is that we are being very programmatic about finding the right people to bring in and hire and help us build the bank so that it's going to be as robust and resilient as it needs to be as we continue to grow in size. To a certain extent, while the $100 billion is a real number today, the reality is there's depth and strength and resiliency to our total management functions that are going to require additional investments.

我認為我們試圖傳達的是，我們正在非常有計劃地尋找合適的人才來引進和僱用並幫助我們建立銀行，以便隨著我們規模的不斷擴大，銀行能夠保持其所需的穩健性和彈性。從某種程度上來說，雖然 1000 億美元在今天是一個真實的數字，但現實是，我們的整體管理職能具有深度、強度和彈性，需要額外的投資。

And so when you look at our expense guidance, it fully reflects our expectation that we're going to continue to round out the team, continue to build our cyber capabilities, continue to build our online and mobile strengthening, continue to build our fraud capabilities, as well as all the things you need to do for regulatory, as well as develop new tools and solutions for our customers.

因此，當您查看我們的費用指導時，它完全反映了我們的期望，即我們將繼續完善團隊，繼續建立我們的網路能力，繼續建立我們的線上和行動能力，繼續建立我們的詐欺能力，以及您需要為監管所做的所有事情，以及為我們的客戶開發新的工具和解決方案。

And so all of that growth is still in process and in motion. I expect you will see increasing line items. Because most of our expenditures is in comp and benefits, you'll see that continue to grow as we grow through the year and into the years ahead.

因此，所有這些增長仍在進行中。我預計你會看到項目數量增加。因為我們的大部分支出都用於補償和福利，所以你會看到，隨著我們今年以及未來幾年的發展，這些支出將繼續增長。

We're focused on hiring to help us build the bank we want to be. We're focused on then supporting those hires with the right systems and solutions to be as strong a bank as we can be. All in a very East-West efficient manner, of course. But our costs are going to go up.

我們專注於招募人才來幫助我們打造我們想要成為的銀行。我們專注於透過正確的系統和解決方案為這些員工提供支持，以使我們成為盡可能強大的銀行。當然，一切都以一種非常有效率的東西方方式進行。但我們的成本將會上升。

Timur Braziler, Wells Fargo.

富國銀行的 Timur Braziler。

I appreciate your comments around SFR for the third quarter. I'm just wondering maybe looking out a little bit, some of the noise regarding the Trump presidency, do you think that line item is at risk in the longer term with just some of the migration trends? Or is it isolated enough or insulated enough, I should say, that that growth rate really shouldn't change all that much?

我很感謝您對第三季 SFR 的評論。我只是想知道，也許稍微看一下有關川普總統任期的一些噪音，您是否認為從長遠來看，僅由於一些移民趨勢，該計畫就會面臨風險？或者我應該說，它是否足夠孤立或足夠隔離，以至於成長率實際上不應該發生太大的變化？

I think Irene pointed out to me a little over a year ago, shortly after I joined, that the American dream is alive and well, despite where rates are at, despite where sentiment is around anything else. And so the reality is we see ourselves providing a solution that supports that dream of American homeownership. And that demand for the clients we serve is not slacking at all.

我想艾琳在一年多前，也就是我加入後不久就向我指出，無論利率水平如何，無論人們對其他事物的情緒如何，美國夢依然存在。因此，事實上，我們認為自己正在提供一種解決方案，支持美國人擁有住房的夢想。而我們服務的客戶的需求也絲毫沒有減弱。

Okay. And then, maybe another question just around some of the tariff uncertainty. Your ability to sustain fee income here has been pretty impressive over these last few quarters. I'm just wondering, did you get any sense if there's a pull-forward that occurred earlier in the quarter or any type of broader cross-border trade disruption within your fee income lines? Or is this a good steady state to base future assumptions off of?

好的。然後，也許還有一個問題與關稅的不確定性有關。在過去的幾個季度中，你們維持費用收入的能力相當令人印象深刻。我只是想知道，您是否意識到本季早些時候是否出現了提前現象，或者您的費用收入線中是否存在任何類型的更廣泛的跨境貿易中斷？或者這是否是一個可以作為未來假設依據的良好穩定狀態？

If I look at the graph that's out there on the fee income on page 7 in the deck, three of the quarters have come in at a pretty solid $81-ish million, three of the last four quarters. So I'd say that's a pretty good run rate for us.

如果我看一下第 7 頁的費用收入圖表，就會發現其中三個季度的費用收入相當可觀，達到 8,100 萬美元左右，過去四個季度中有三個季度的費用收入達到這個水準。所以我認為這對我們來說是一個相當不錯的運行率。

The reality is where we gave up fees was a little bit on the derivatives, FX side of things, which are a little more transactional; and some of the wealth stuff that was one-time in nature. But our other fees are relatively steady and just steadily building.

事實上，我們放棄的費用只是衍生性商品、外匯的費用，這些費用更具交易性；還有一些本質上是一次性的財富費用。但我們的其他費用相對穩定，並且穩定成長。

And so we continue to expect that to be a pretty steady contributor.

因此，我們繼續期望這將是一個相當穩定的貢獻者。

Gary Tenner, D.A. Davidson.

坦納 (Gary Tenner)、地方檢察官戴維森 (D.A. Davidson)。

A lot of my questions were asked. But I just wanted to follow up on the buyback. Chris, you had some comments on that in your prepared remarks, I think.

我問了很多問題。但我只是想跟進回購事宜。克里斯，我想你在準備好的演講中對此發表了一些評論。

The amount of buyback in the second quarter, pretty light in terms of shares. I'm wondering how much of that was simply being cautious in the wake of the tariff announcements because obviously, there was an opportunity to be repurchasing shares quite a bit lower than where the stock is trading now.

從股票數量來看，第二季的回購量相當少。我想知道，在關稅公告發布後，有多少只是出於謹慎，因為顯然有機會以比現在的股票交易價格低得多的價格回購股票。

Yeah. I think part of that might just be timing, Gary, in the context of, I'll say that we -- the first couple of weeks of the quarter, which were the weeks immediately following Liberation Day, stock took a bit of a swoon.

是的。蓋瑞，我認為部分原因可能只是時機問題，我想說的是，本季的前幾週，也就是解放日之後的幾週，股市有點低迷。

And we generally, since we prepare our financials, don't buy back when we're in possession of our results and we haven't publicly disclosed them. And so there's a bit of a blackout window that we self-imposed, just to be on the right side of any SEC questions later on.

而且，由於我們準備了財務數據，因此當我們掌握結果並且尚未公開披露時，我們通常不會回購。因此，我們自行設定了一個保密期，以便日後能夠正確回答 SEC 提出的問題。

And so we weren't active in that period before the earnings call. But the price action was there. And so when we came back active, we set price expectations, not able to forget that there had been a [7] handle at one point in the quarter. And of course, we never saw that handle again.

因此，在財報電話會議之前的那段時間裡，我們並沒有進行任何活動。但價格走勢就在那裡。因此，當我們恢復活躍時，我們設定了價格預期，不能忘記本季某個時候曾出現過 [7] 個手柄。當然，我們再也沒有見過那個把手。

So I think we just went through the quarter a bit trying to keep up with the market movement and never quite got ahead of it. I think we'll be thoughtful about where we're headed as we look at the back half of the year and continue, obviously, to think that there's an appropriate level of repurchase.

所以我認為我們只是在這個季度努力跟上市場動向，但從未真正領先市場。我認為，當我們展望下半年時，我們會認真考慮我們的發展方向，並且顯然會繼續認為有適當的回購水準。

Obviously, we have the $241 million available to us at the right levels. But we'll continue to deploy it on an opportunistic basis.

顯然，我們擁有適當水準的 2.41 億美元可用資金。但我們將繼續抓住機會部署它。

Matthew Clark, Piper Sandler.

馬修克拉克、派珀桑德勒。

First one for me, just on the macro changes that you made with the CECL model. Can you just speak to some of the assumptions you made and how they changed, just to give us a sense for the conservatism that's built in around C&I, in particular?

對我來說，第一個是關於您使用 CECL 模型所做的宏觀改變。您能否談談您所做的一些假設以及它們是如何變化的，以便讓我們了解特別是在 C&I 周圍建立的保守主義？

I think as Irene mentioned earlier in one of her responses, I think it was macro-driven. And as we think about it, we didn't necessarily change the weighting assumptions about recessionary outlook versus the core outlook.

我認為，正如艾琳之前在回覆中提到的那樣，我認為這是宏觀驅動的。當我們思考這個問題時，我們並不一定會改變衰退前景與核心前景的加權假設。

But the Moody's model itself did have some degradation. And so we factored that degradation into our core and also factored into our other scenarios that we do run. That contributed a good portion of the net change.

但穆迪模型本身確實存在一些退化。因此，我們將這種退化納入我們的核心考慮範圍，並將其納入我們運行的其他場景中。這為淨變化貢獻了很大一部分。

We also took some specific looks at some of the C&I portfolios. Obviously, we're constantly evaluating those and essentially grading and risk rating those. That was also part and parcel.

我們也對一些 C&I 投資組合進行了具體研究。顯然，我們會不斷對其進行評估，並對它們進行評級和風險評估。這也是不可或缺的一部分。

But obviously, part of our risk rating takes into consideration the outlook. And so that's all baked in.

但顯然，我們的風險評級部分考慮了前景。這一切都已經融入其中了。

Irene, would you care to add more to that?

艾琳，你願意補充更多嗎？

No. I think that's a good summary. As a reminder, I think many people use the same Moody's models but we also use multi-scenarios. I wanted to just factor that in as well. So that is part of, maybe, just the conservatism you alluded to.

不。我認為這是一個很好的總結。提醒一下，我認為許多人使用相同的穆迪模型，但我們也使用多種場景。我也想把這一點考慮進去。所以這也許就是您提到的保守主義的一部分。

Okay. Great. And then, on the criticized migration in non-multifamily CRE, can you just speak to what asset classes within non-multifamily CRE drove that and what the line of sight is in that area?

好的。偉大的。然後，關於非多戶型商業地產中受到批評的遷移，您能否談談非多戶型商業地產中的哪些資產類別推動了這一遷移，以及該領域的視線是什麼？

Good question. About half were special mention, half were substandard. It's pretty evenly distributed there, as far as the income-producing CRE.

好問題。大約有一半獲得特別提名，一半不合格。就產生收入的 CRE 而言，那裡的分佈相當均勻。

From an asset class perspective, pretty broad-based as well. There were some loans that we downgraded because of the cash flow short fall that we saw, reductions for some properties that were impacted after the fires. But others, broad-based.

從資產類別的角度來看，其基礎也相當廣泛。由於我們發現現金流短缺，一些貸款被降級，一些受火災影響的房產的貸款也因此減少。但其他的，基礎廣泛。

As we look at these loans, loan by loan, and the underlying collateral, I would say, at this point, I don't see these moving to non-accrual or something that will result in a charge-off at this point in time. But certainly, we're looking at the cash flows very carefully and ensuring that the grading is appropriate as well.

當我們逐一審視這些貸款和相關抵押品時，我想說，目前，我認為這些貸款不會轉為非應計貸款或導致註銷的情況。但當然，我們正在非常仔細地研究現金流並確保評級也是適當的。

Okay. Great. Thank you.

好的。偉大的。謝謝。

Chris McGratty, KBW.

克里斯·麥格拉蒂，KBW。

Chris, a question for you on the balance sheet. Your mid-[80%s] loan-to-deposit ratio, a lot of capital. Is there anything you want to do to the balance sheet over the next several quarters that maybe not have been done yet?

克里斯，我想問你一個關於資產負債表的問題。你的貸存比在 80% 左右，有大量的資本。在接下來的幾個季度裡，您是否想對資產負債表做一些尚未完成的事情？

Well, I think we meet regularly with Irene and Dominic through the ALCO process. We're always trying to optimize the balance sheet.

嗯，我認為我們會透過 ALCO 流程定期與 Irene 和 Dominic 會面。我們一直在努力優化資產負債表。

I think we've made good strides towards that direction. But the reality is we know there's more on the deposits that can be optimized. We know that there's a component of the investment portfolio that could be further optimized.

我認為我們已經朝著這個方向邁出了一大步。但事實上，我們知道存款還有更多可以優化的地方。我們知道投資組合中有一個部分可以進一步優化。

And we continue to think about how we're going to grow the C&I book, in particular, so that's further optimized as a percentage of the total loans.

我們將繼續思考如何增加 C&I 帳簿，以便進一步優化其在總貸款中的百分比。

And so those are all works in progress that we continue to try and push in the right direction each day we come in.

因此，這些都是正在進行的工作，我們每天都會繼續努力，朝著正確的方向前進。

Great. And then, on capital, I hesitate to even ask the question but you've got 10% TCE going to 11% probably; and CET1 to 15%. It's a high-class problem.

偉大的。然後，關於資本，我甚至不願意問這個問題，但你的 TCE 大概是 10% 到 11%；CET1 到 15%。這是一個高級問題。

But is there anything you want to do with your capital beyond what we've talked about over the medium term to build out fee income capabilities, portfolio acquisitions, anything like that?

但是，除了我們在中期內討論的建立費用收入能力、投資組合收購等之外，您還想用您的資本做什麼嗎？

Yeah. I think in the long term, of course. Our first goal, as we've always highlighted, is to deliver top-quartile returns. And so as long as we're delivering 16%, 17%-type quarter-after-quarter returns on tangible capital, we hope shareholders feel we're doing the right thing for them.

是的。我認為從長遠來看，當然如此。正如我們一直強調的那樣，我們的首要目標是實現最高四分位的回報。因此，只要我們能夠實現 16% 或 17% 左右的季度有形資本回報率，我們希望股東能夠感受到我們在為他們做正確的事情。

The second thing, of course, as we've said publicly, we have every intention to continue to build out our fee businesses. We continue to have conversations and ongoing dialogue with different providers about different services that we could offer our customers, about different solutions that we could sell, and about different ways of building out our fee income businesses to continue to grow.

第二件事，當然，正如我們公開所說的，我們完全有意繼續發展我們的收費業務。我們繼續與不同的供應商進行對話和持續的交流，討論我們可以為客戶提供的不同服務、我們可以銷售的不同解決方案，以及建立我們的費用收入業務以繼續增長的不同方式。

We think there's opportunity in many of them. Dominic has encouraged us and directed us to make hires to bolster and grow a variety of those business lines here over the last six months. And we're continuously looking at not only hires but also, potentially purchase solutions and/or even acquired solutions.

我們認為其中很多都蘊藏著機會。在過去的六個月裡，多明尼克鼓勵我們並指導我們招募人才來加強和發展這裡的各種業務線。我們不僅持續專注於招聘，而且還在潛在地購買解決方案和/或甚至收購解決方案。

(Operator Instructions)

（操作員指示）

Andrew Terrell, Stephens.

安德魯·特雷爾，史蒂芬斯。

If I could just go back to some of the loan growth quickly, the single-family and C&I, Chris, your comments sounded pretty optimistic on the third-quarter set-up. I'm curious just on the commercial real estate, any selective slowing of the growth potential in that business that you guys are seeing right now, just to either manage concentrations or maybe based on the competitive environment?

如果我可以快速回顧一些貸款增長情況，單戶住宅和商業與工業，克里斯，你對第三季度的情況的評論聽起來相當樂觀。我很好奇，就商業房地產而言，你們現在是否看到該業務的成長潛力有選擇地放緩，只是為了管理集中度還是基於競爭環境？

Just hoping to unpack maybe a little bit of the CRE business.

只是希望能稍微了解一下 CRE 業務。

Yeah. I think if I look at page 7 of the press release, table 2, you'll see that on a year-over-year basis, we've grown our single-family book by 5%, almost 6%; our C&I book by 5%, almost 6%; and our CRE book by a little less than 2%.

是的。我想，如果我看一下新聞稿第 7 頁的表 2，您就會發現，與去年同期相比，我們的單戶住宅賬面增長了 5%，接近 6%；我們的 C&I 賬面增長了 5%，接近 6%；我們的 CRE 賬面增長了略低於 2%。

And so if I think about, hopefully, the comments that I've been making at the last several quarterly earnings calls and at the last several earnings presentations, it's a focus on continuing to grow the bank overall, with a particular emphasis on growing our C&I and single-family in a balanced manner to get towards the one-third, one-third, one-third balance that Dominic has encouraged the bank to shoot for in the medium to long term.

因此，如果我考慮一下我在過去幾次季度收益電話會議和收益報告中所發表的評論，那就是重點是繼續發展整個銀行，特別強調以平衡的方式發展我們的商業和工業以及單戶住宅，以達到多米尼克鼓勵銀行在中長期內努力實現的三分之一、三分之一、三分之一的平衡。

I think we're continuing to make progress on that quarter after quarter, year after year. And I think this is another good quarter of balanced growth in the way we'd like to see it.

我認為我們正逐季、逐年地取得進展。我認為這是我們所希望看到的另一個平衡成長的良好季度。

Okay. The rest of mine have already been addressed. Thanks for the question.

好的。我的其餘問題已經解決。謝謝你的提問。

Thank you.

謝謝。

This concludes our question-and-answer session.

我們的問答環節到此結束。

I would like to turn the conference back over to Dominic Ng for any closing remarks.

我想將會議交還給 Dominic Ng 做結束語。

Thank you. Once again, I would like to thank everyone for joining our call today. We are looking forward to speaking with you in October. Bye.

謝謝。我再次感謝大家今天參加我們的電話會議。我們期待十月與您交談。再見。

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。