SweetValueLab
Write for us

East West Bancorp — bank health check

EWBC
RegionalAssets $83.5B4-quarter TTM
Close · Oct 16, 2026126.88P/E 12.2 · yield 2.4%
P/TBV2.00×TBVPS 63.36
Line · r 10%1.92×range 1.68–2.25×
+4% premiumP/TBV ÷ line − 1
Fed funds · last FOMC3.75–4.00%Sep 16, 2026 · +25bp
UST 3m · 2y · 10y · Oct 16, 20264.26 · 4.74 · 5.0910y−2y +0.35 · 10y−3m +0.83
KBE · YTD+4.8%1D +0.1% · 1Y +15.5% · 5Y +15%
KRE · YTD+7.7%1D +0.1% · 1Y +20.1% · 5Y −1%
SPY · YTD+11.9%1D −1.1% · 1Y +15.5% · 5Y +71%
Prices as ofOct 16, 2026Financials TTM through Sep 30, 2026

Valuation range

the line at three costs of equity
r 11% · 1.68×r 9% · 2.25×now 2.00×
0.0×1.0×2.0×3.0×4.0×

At r = 10% the line gives 1.92× for a 16.5% ROTCE; the market pays 2.00×, a 4% premium to the line.

Where it has traded

quarter-end P/TBV · 20 quarters · Sep 30, 2021 → Jun 30, 2026
0.50×1.00×1.50×2.00×2.50×2021202220232024202520262021-09-30 · 2.12× (close 77.54 · TBVPS 36.50)2021-12-31 · 2.10× (close 78.68 · TBVPS 37.48)2022-03-31 · 2.16× (close 79.02 · TBVPS 36.57)2022-06-30 · 1.79× (close 64.80 · TBVPS 36.13)2022-09-30 · 1.84× (close 67.14 · TBVPS 36.58)2022-12-31 · 1.70× (close 65.90 · TBVPS 38.83)2023-03-31 · 1.35× (close 55.50 · TBVPS 41.18)2023-06-30 · 1.25× (close 52.79 · TBVPS 42.26)2023-09-30 · 1.22× (close 52.71 · TBVPS 43.14)2023-12-31 · 1.57× (close 71.95 · TBVPS 45.86)2024-03-31 · 1.69× (close 79.11 · TBVPS 46.75)2024-06-30 · 1.52× (close 73.23 · TBVPS 48.28)2024-09-30 · 1.61× (close 82.74 · TBVPS 51.44)2024-12-31 · 1.85× (close 95.76 · TBVPS 51.88)2025-03-31 · 1.68× (close 89.76 · TBVPS 53.58)2025-06-30 · 1.81× (close 100.98 · TBVPS 55.74)2025-09-30 · 1.82× (close 106.45 · TBVPS 58.36)2025-12-31 · 1.85× (close 112.39 · TBVPS 60.63)2026-03-31 · 1.74× (close 106.76 · TBVPS 61.43)2026-06-30 · 2.04× (close 129.09 · TBVPS 63.36)p75 1.85×med 1.77×p25 1.60×now 2.00×
Five-year median 1.77×, middle half 1.60–1.85×, range 1.22–2.16×. Now 2.00×: +13% above its own median, higher than 80% of those quarters.Each quarter priced at its own TBVPS · the band is the 25th–75th percentile

Where the money goes

TTM through Jun 30, 2026 · $B
01234Interest income: 4.3 $B4.3InterestincomeInterest expense: −1.6 $B−1.6InterestexpenseNII: 2.7 $B2.7NIINon-interest income: 0.4 $B0.4Non-interestincomeNet revenue: 3.1 $B3.1NetrevenueOperating expenses: −1.1 $B−1.1OperatingexpensesProvision: −0.1 $B−0.1ProvisionPre-tax: 1.9 $B1.9Pre-taxTax: −0.4 $B−0.4TaxNet income: 1.4 $B1.4Netincome
assets $83.5B ÷ TCE $8.8B = 9.5× leverage · ROA 1.73% × 9.5 = ROTCE 16.5%

Revenue mix

NII vs. non-interest income · Regional peers (10)
EWBC88 / 12
Tier average74 / 26

Efficiency 35.1% vs. tier 65.3% · ROTCE 16.5% vs. 13.5% · credit cost 4.4% vs. 4.4% · AOCI/TCE −4.7% vs. −11.8%.

Quarter by quarter

8 quarters · Sep 30, 2024 → Jun 30, 2026 · a gap is a dropped quarter
NII, $B0.7
Provision, $B0.03
Efficiency36.0%
AOCI / TCE−4.7%