Stockholders' Equity and Earnings Per Share

9 Months Ended

Sep. 30, 2020

Stockholders' Equity and Earnings Per Share [Abstract]

Stockholders' Equity and Earnings Per Share

Stockholders’ Equity and Earnings Per Share

The following table presents the basic and diluted EPS calculations for the three and nine months ended September 30, 2020 and 2019. For more information on the calculation of EPS, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Earnings Per Share to the Consolidated Financial Statements of the Company’s 2019 Form 10-K.

($ and shares in thousands, except per share data)	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Basic:
Net income	$	159,537	$	171,416	$	403,713	$	485,820
Basic weighted-average number of shares outstanding	141,498		145,559		142,595		145,455
Basic EPS	$	1.13	$	1.18	$	2.83	$	3.34
Diluted:
Net income	$	159,537	$	171,416	$	403,713	$	485,820
Basic weighted-average number of shares outstanding (1)	141,498		145,559		142,595		145,455
Diluted potential common shares (2)	545		561		487		633
Diluted weighted-average number of shares outstanding (1)(2)	142,043		146,120		143,082		146,088
Diluted EPS	$	1.12	$	1.17	$	2.82	$	3.33

(1)The Company acquired MetroCorp Bancshares, Inc. (“MetroCorp”) on January 17, 2014. Prior to the acquisition, MetroCorp 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.

(2)Includes dilutive shares from RSUs for the three and nine months ended September 30, 2020 and 2019.

For the three and nine months ended September 30, 2020, 124 thousand and 123 thousand weighted-average shares of anti-dilutive RSUs, respectively, were excluded from the diluted EPS computation. In comparison, 564 thousand and 277 thousand weighted-average shares of anti-dilutive RSUs, respectively, were excluded from the diluted EPS computation for the three and nine months ended September 30, 2019.

Stock Repurchase Program — On March 3, 2020, the Company’s Board of Directors authorized a stock repurchase program to buy back up to $500.0 million of the Company’s common stock. For the three months ended September 30, 2020, there were no share repurchases. For the nine months ended September 30, 2020, the Company repurchased 4,471,682 shares at an average price of $32.64 per share and a total cost of $146.0 million. The Company did not repurchase any shares during the three and nine months ended September 30, 2019.