Many California regional banks report profit as economy improves
Dominic Ng, East West’s chairman and chief executive, in file photo.
Megabanks aren’t the only financial firms to meet or beat expectations this earnings season.
Many California regional banks are reporting stronger earnings and putting new loans on their books, thanks to the improving economy and progress in dealing with fallout from the financial bust.
East West Bancorp, the largest Chinese-American bank, said after the markets closed Wednesday that it earned $74 million during the second quarter, up 5% from $70.5 million a year earlier. Per-share earnings for the Pasadena bank rose 11% to 52 cents, beating Wall Street expectations by a penny.
Dominic Ng, East West’s chairman and chief executive, said the bank’s loan portfolio totaled $16.3 billion as of June 30, an increase of 6%, or $921 million, for the quarter. The bank revised its guidance for full-year 2013 earnings per share upward by a nickel, saying it expected a profit of $2.04 to $2.09 a share.
L.A.’s Cathay General Bancorp, also focused on ethnic Chinese customers and reporting late in the day, earned $29.9 million, the same as a year earlier. Per-share earnings rose to 35 cents from 33 cents, meeting Wall Street expectations.
Cathay Chairman and CEO Dunson Cheng said loan growth of $330 million during the quarter included increases in business lending and mortgages on housing and commercial properties.
CVB Financial Corp., the Ontario parent of Citizens Business Bank, also reported financial results after trading closed, saying it earned $24.5 million, up 4% from $23.6 million a year earlier. Per-share earnings of 23 cents beat Wall Street estimates of 21 cents.
San Francisco’s First Republic Bank, a private banking specialist that went public in 2010 and has branches in well-to-do areas across Southern California, said early Wednesday that its profit jumped 16% to $113.7 million, or 77 cents a share.
That was far above the average analyst projection of 63 cents reported by Zachs Investment Research. The bank’s shares rose 5% to $41.80, a record high.
City National Corp. of Los Angeles, also focused on private banking for wealthy individuals, is scheduled to report its financial results Thursday. SVB Financial Group in Santa Clara, the parent of Silicon Valley Bank, is slated to report results Monday.
Major banks that have beaten analysts’ second-quarter forecasts include Wells Fargo & Co., Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc. and Goldman Sachs Group Inc.
