East West Bancorp Inc. reported 5 percent growth in second quarter profit Wednesday, as Los Angeles County’s second-largest locally based bank continued to increase its production of higher quality loans.
After the markets closed, the Pasadena parent of East West Bank reported net income of $74 million (52 cents a share), compared with $72 million (50 cents) in the same period a year earlier.
Adjusted net interest income rose 4 percent to $192 million. East West recorded a loss in non-interest income of $12.4 million. The company recorded a provision for loan losses of non-covered loans of $8.3 million, half of what it took a year ago.
Total loans receivable rose 6 percent to $16.3 billion, which the company attributed to
growth in its non-covered loan portfolio. Covered loans fell 9 percent to $2.5 billion. The covered loan portfolio includes troubled loans that East West acquired from its FDIC-assisted acquisitions of United Commercial Bank and Washington First International Bank, which are covered under loss-share agreements with the bank regulator.
Shares earlier closed up 41 cents, or 1.4 percent, to $28.94 on the Nasdaq.