Stockholders' Equity and Earnings Per Share

6 Months Ended

Jun. 30, 2019

Stockholders' Equity and Earnings Per Share [Abstract]

Stockholders' Equity and Earnings Per Share

Stockholders’ Equity and Earnings Per Share

Warrant — The Company acquired MetroCorp Bancshares, Inc., on January 17, 2014. Prior to the acquisition, MetroCorp Bancshares, Inc. had outstanding warrants to purchase 771,429 shares of its common stock. Upon the acquisition, the rights of the warrant holders were converted into the rights to acquire 230,282 shares of East West’s common stock until January 16, 2019. All warrants were exercised on January 7, 2019.

Earnings Per Share — Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period, plus any incremental dilutive common share equivalents calculated for warrants and RSUs outstanding using the treasury stock method.

The following table presents the EPS calculations for the three and six months ended June 30, 2019 and 2018:

($ and shares in thousands, except per share data)	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Basic:
Net income	$	150,380	$	172,349	$	314,404	$	359,381
Basic weighted-average number of shares outstanding	145,546		144,899		145,402		144,782
Basic EPS	$	1.03	$	1.19	$	2.16	$	2.48
Diluted:
Net income	$	150,380	$	172,349	$	314,404	$	359,381
Basic weighted-average number of shares outstanding	145,546		144,899		145,402		144,782
Diluted potential common shares (1)	506		1,192		614		1,264
Diluted weighted-average number of shares outstanding (1)	146,052		146,091		146,016		146,046
Diluted EPS	$	1.03	$	1.18	$	2.15	$	2.46

(1) Includes dilutive shares from RSUs for the three and six months ended June 30, 2019, and from RSUs and warrants for the three and six months ended June 30, 2018.

For the three and six months ended June 30, 2019, 584 thousand and 239 thousand weighted-average shares of anti-dilutive RSUs, respectively, were excluded from the diluted EPS computation. In comparison, 4,012 and 3,807 weighted-average shares of anti-dilutive RSUs, respectively, were excluded from the diluted EPS computation for the three and six months ended June 30, 2018.