NOTE 25—PARENT COMPANY FINANCIAL STATEMENTS

The financial information of East West Bancorp, Inc. as of December 31, 2013 and 2012 and for the years ended December 31, 2013, 2012 and 2011 are as follows:

BALANCE SHEETS

	December 31,
	2013			2012
	(In thousands)
ASSETS
Cash and cash equivalents	$	79,934		$	64,489
Investment securities available-for-sale	69,796			—
Investment in subsidiaries	2,400,937			2,450,058
Other investments	21,371			3,083
Other assets	37,037			5,122
TOTAL	$	2,609,075		$	2,522,752
LIABILITIES AND STOCKHOLDERS’ EQUITY
Long-term debt	$	226,868		$	137,178
Other liabilities	17,982			3,452
Total liabilities	244,850			140,630
STOCKHOLDERS’ EQUITY
Preferred stock (par value $0.001 per share)
Authorized — 5,000,000 shares
Issued — 200,000 shares in Series A, non-cumulative convertible preferred stock in 2013 and 2012
Outstanding — No shares as of December 31, 2013 and 85,710 shares in 2012	—			83,027
Common stock (par value $0.001 per share)
Authorized — 200,000,000 shares
Issued — 163,098,008 shares in 2013 and 157,160,193 shares in 2012
Outstanding — 137,630,896 shares in 2013 and 140,294,092 shares in 2012	163			157
Additional paid in capital	1,571,670			1,464,739
Retained earnings	1,360,130			1,151,828
Treasury stock, at cost — 25,467,112 shares in 2013 and 16,866,101 shares in 2012	(537,279		)	(322,298		)
Accumulated other comprehensive (loss) income, net of tax	(30,459		)	4,669
Total stockholders’ equity	2,364,225			2,382,122
TOTAL	$	2,609,075		$	2,522,752

STATEMENTS OF INCOME

	Year Ended December 31,
	2013			2012			2011
	(In thousands)
Dividends from subsidiaries	$	319,085		$	324,094		$	72,129
Other income	821			2			372
Total income	319,906			324,096			72,501
Interest expense	3,436			3,092			4,734
Compensation and net occupancy reimbursement to subsidiary	3,662			2,573			2,537
Other expense	12,677			1,309			2,339
Total expense	19,775			6,974			9,610
Income before income taxes and equity in undistributed income of subsidiaries	300,131			317,122			62,891
Income tax benefit	22,885			2,892			3,830
Equity in undistributed (loss) income of subsidiaries	(27,971		)	(38,364		)	178,513
Net income	$	295,045		$	281,650		$	245,234

STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2013			2012			2011
	(In thousands)
Cash flows from operating activities:
Net income	$	295,045		$	281,650		$	245,234
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed (income) of subsidiaries	(291,659		)	(285,636		)	(250,513		)
Depreciation and amortization	8,806			445			1,034
Prepayment penalty on other borrowings	—			—			526
Stock compensation costs	—			—			1,767
Gain on sale of other investments	(161		)	—			—
Tax benefit from stock plans	(5,522		)	(462		)	(717		)
Net change in other assets	293,153			322,361			73,797
Net change in other liabilities	(13,011		)	(259		)	(3,709		)
Net cash provided by operating activities	286,651			318,099			67,419
Cash flows from investing activities:
Purchases of:
Investment securities available-for-sale	(69,986		)	—			—
Proceeds from:
Redemption of certificates of deposit	—			—			198
Net cash (used in) provided by investing activities	(69,986		)	—			198
Cash flows from financing activities:
Payment for:
Repayment of long-term debt	(10,310		)	—			(23,918		)
Repurchase of vested shares due to employee tax liability	(13,833		)	(3,012		)	(649		)
Cash dividends on preferred stock	(3,428		)	(6,857		)	(6,857		)
Cash dividends on common stock	(82,862		)	(57,361		)	(23,822		)
Repurchase of common stock warrants	—			—			(14,500		)
Repurchase of shares of treasury stock pursuant to the Stock Repurchase Plan	(199,992		)	(199,950		)	—
Proceeds from:
Increase in long-term borrowings	100,000			—			—
Issuance of common stock pursuant to various stock plans and agreements	3,683			3,821			5,726
Tax benefit from stock plans	5,522			462			717
Net cash used in financing activities	(201,220		)	(262,897		)	(63,303		)
Net increase in cash and cash equivalents	15,445			55,202			4,314
Cash and cash equivalents, beginning of year	64,489			9,287			4,973
Cash and cash equivalents, end of year	$	79,934		$	64,489		$	9,287
Supplemental Cash Flow Information:
Cash paid during the year for:
Interest	$	3,292		$	3,112		$	5,167
Noncash financing activities:
Conversion of preferred stock to common stock	83,027			—			31
Issuance of common stock to Board of Directors	630			570			520