 Dear Reader, Last year I ran for Mayor of New York City. And lost to a 34-year-old Democratic Socialist. Now I'm convinced what's starting in New York will spread across America. Just for starters:
- The new mayor wants to spend $70 million of taxpayer money just to study whether government-run grocery stores are a good idea.
- He's threatening a 9.5% property tax hike on every homeowner in the city.
- And he wants to raise taxes on every corporation and high earner.
This isn't just a New York story. Nearly 40% of Americans now have a "positive" view of socialism. But what nobody's talking about is WHY this is happening... and where it's all headed. I have my MBA from Harvard and spend my time in correspondence with billionaires like Warren Buffett and Bill Ackman. I've spent 30 years on Wall Street. And there's a specific term for what's unfolding in America right now... one that points to an economic event unlike anything we've seen in over 100 years. I'm not running for office again. But if you care about your wealth, your family, and your future, you need to understand what's really coming. I've put together a free analysis explaining exactly what I see, and the specific steps I recommend you take with your money today. I strongly encourage you to check it out here. Regards, Whitney Tilson
Editor, Stansberry Investment Advisory
Former Hedge Fund Manager
Co-Founder, Teach for America
Harvard MBA P.S. What's happening today will reset the financial system in a way most of us can't imagine. If I'm even half right, it's going to have a huge impact on your money and your future. Get the details here...
This Month's Exclusive News
East West Bancorp: Confronting the Risks With Record ResultsAuthored by Peter Frank. Date Posted: 4/10/2026. 
Key Points
- East West Bancorp delivers strong growth, high returns, and rising dividends despite operating risks.
- The stock trades at a discount even as earnings and balance sheet performance remain robust.
- Exposure to commercial real estate and U.S.-China dynamics creates uncertainty that could impact long-term valuation.
- Special Report: Elon’s “Hidden” Company
East West Bancorp (NASDAQ: EWBC) occupies an unusual spot: a high-performing regional bank that trades at a discount. The bank reported record earnings, strong growth, high returns on equity, and a recently increased dividend. What supports those strengths, however, also creates risks.
Heavy exposure to California commercial real estate, sensitivity to interest rates, and geopolitical ties to U.S.-China relations introduce uncertainty. Still, the numbers are compelling. If the economy holds up and geopolitics remain stable, East West Bancorp could be the kind of niche investment that adds both growth and income to a banking portfolio. EWBC Delivers Record ResultsThe risks haven’t slowed the bank. Based in Pasadena, California, EWBC closed out 2025 with record results. Net income climbed to $1.3 billion last year, with diluted earnings per share of $9.52. Both figures were all-time highs and represented about 14% growth over 2024. Total revenue reached $2.93 billion, a 12% year-over-year increase, and net interest margin rose to 3.41%. The bank's return on average common equity reached 16%, and tangible book value per share grew 17%. In the fourth quarter, EWBC earned $356 million and reported $2.52 per share, beating analysts’ estimates by four cents. The balance sheet tells a similar story. Total assets were $80.4 billion at year-end, with $56.9 billion in loans and $67.1 billion in deposits, each up about 6% from the prior year. Net charge-offs for the year were considerably lower. Given those results, the board approved a 33% increase in the quarterly dividend, raising it to $0.80 per share ($3.20 annually). At recent prices, that equates to a yield close to 3%. Valuation Suggests Upside With Strong ResultsDespite the strong performance, EWBC trades at just above 12 times trailing earnings — a discount to many regional peers even though it delivers stronger earnings. With double-digit EPS growth and returns on equity above 15%, the share price may represent a timely opportunity. Wall Street broadly agrees. Among the 16 analysts covering the stock, the consensus rating is Moderate Buy, with 11 Buys and five Holds. The average 12-month price target is about $127.36, implying roughly 10% upside from current levels, with the highest target at $142. Asia-Focused Model Creates Unique RisksHowever, headwinds could limit stock appreciation. Founded in 1973 to serve the Chinese American community, EWBC has built a franchise few regional banks can match. Focused on customers with economic and cultural ties to Asia, the bank is well-positioned to serve cross-border business within Asian-American communities. East West also holds a commercial banking license in China through its subsidiary, East West Bank (China) Ltd., a rarity among U.S.-based regional banks. That license allows the bank to operate branches, make loans, and accept deposits in China, in addition to maintaining locations in Hong Kong and Singapore. As of year-end, the bank's Hong Kong and China subsidiary branches accounted for roughly 6% (about $4.7 billion) of assets and about 4% of 2025 revenue. Although that represents a relatively small direct slice of the business, the Asian operations facilitate transactions on both sides of the Pacific. A deterioration in U.S.-China relations could therefore have a significant impact on EWBC. Commercial Real Estate Remains a Key ConcernThe bank also faces concerns about its loan mix. While EWBC operates across U.S. markets including California, Georgia, Illinois, Massachusetts, Nevada, New York, Texas, and Washington, its primary focus is Southern California, where it is heavily concentrated in commercial real estate lending. With $21.3 billion in commercial real estate loans, California accounts for more than two-thirds of that CRE portfolio. Overall, about half of the bank's total loan portfolio is concentrated in Southern California, where a significant downturn could pressure both loan quality and new lending activity. Investment Depends on Balancing Growth and RiskIf management continues to compound earnings, credit quality remains strong, and performance ratios hold up, EWBC's valuation discount to peers could attract investor attention — assuming commercial real estate markets and U.S.-China relations remain stable. For investors willing to accept that uncertainty in exchange for above-average growth and a rising dividend, East West Bancorp presents a persuasive case for inclusion in a diversified financial sector portfolio.
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