Pasadena-based East West Bancorp Inc. saw a rise in its per share price today despite Tuesday’s report of a worse-than-expected first quarter loss of over $31 million.
The bank, which is the second largest locally-owned bank in Los Angeles county, cut its quarterly dividend and also reportedly raised its provision for loan losses.
Chief Executive Dominic said in a statement that management believes “that our strong core profitability, along with strong capital, liquidity and allowance for loan losses will serve as a foundation for strong earnings and growth when the market turns.”
East West’s first quarter net loss of $31.2 million (-50 cents per share) compares with net income of $5.04 million (8 cents) a year ago.
Provision for loan losses for the quarter increased 41 percent to $78 million. Net loan charge offs were 2.91 percent, compared to 1.13 percent a year ago.
Net interest income for the quarter fell 20 percent to $79.7 million, and non-interest income for the quarter dropped13 percent to $13.8 million. The bank grew core deposits 14 percent to $8.5 billion.