EX-99.1 2 v154985_ex99-1.htm
Exihibit 99.1
 
FOR FURTHER INFORMATION AT THE COMPANY:

Tom Tolda
Chief Financial Officer
(626) 768-6788


EAST WEST BANCORP REPORTS SECOND QUARTER 2009 RESULTS;
NONACCRUAL LOANS DOWN 35% TO 1.90% OF TOTAL LOANS; TOTAL DELINQUENT LOANS DOWN 39%;
NET INTEREST MARGIN INCREASED 24 BASIS POINTS

Pasadena, CA – July 15, 2009 – East West Bancorp, Inc. (Nasdaq: EWBC), parent company of East West Bank, today reported financial results for the second quarter of 2009 with a net loss of $92.1 million. The net loss was primarily driven by a $151.4 million provision for loan losses and $37.4 million other than temporary impairment on investment securities.

“Despite the strong economic headwinds we continue to face in this prolonged recessionary climate, East West made substantial progress in the second quarter 2009.  Most significantly, we successfully completed a comprehensive stress test on our loan and investment portfolios, reduced nonaccrual loans by 35% to 1.90% of total loans and reduced total delinquent loans by 39% during the quarter.  Our continued aggressive stance in dealing with problem loans resulted in $133.9 million in net chargeoffs for the quarter, and we took a $37.4 million write-down on our trust preferred securities.  However, even with the ongoing economic challenges, we ended the quarter with record assets, record deposits, and strong levels of both capital and allowance for loan losses,” stated Dominic Ng, Chairman, President and Chief Executive Officer of East West.

“With our recent actions that have increased tangible common equity by $148.4 million, we believe that we have more than enough capital to withstand this prolonged downturn in the economy and will continue to work aggressively to reduce problem assets.  While we are working through the current credit challenges, we are also looking ahead to future opportunities for growth and expansion,” concluded Ng.



Second Quarter 2009 Highlights

·
Nonaccrual Loans Down 35% – Total nonaccrual loans decreased by 35% or $85.8 million to $162.2 million as of June 30, 2009.  Nonaccrual loans were 1.90% of total loans as of quarter-end.

·
Total Delinquent Loans Down 39% – Total loans delinquent 30 or more days decreased by 39% or $188.0 million as of June 30, 2009. Loan delinquencies fell across all categories – 30 to 59 day delinquent loans decreased 69% or $130.9 million, 60 to 89 day delinquent loans decreased 22% or $25.8 million, and 90+ days delinquent loans decreased 18% or $31.3 million, quarter over quarter.

·
Increase in Net Interest Margin – Net interest income for the second quarter increased to $88.3 million, an 11% or $8.6 million increase over first quarter of 2009. The net interest margin for the quarter increased to 2.98%, up 24 basis points from the first quarter of 2009.

·
Allowance for Loan Losses Strengthened – Total allowance for loan losses increased to $223.7 million, representing 2.62% of outstanding loans compared to 2.42% of outstanding loans in the previous quarter. We continued to increase the allowance for loan losses, recording provision for loan losses of $151.4 million and total net charge-offs of $133.9 million for the quarter. The allowance for loan losses to nonaccrual loans ratio was 138% as of June 30, 2009 compared to 79% as of March 31, 2009.

·
Strong Deposit Growth – Total deposits grew to a record $8.7 billion as of June 30, 2009, up $204.8 million quarter over quarter. The strong increase in deposits was the result of a $203.4 million increase in core deposits quarter over quarter. Year over year, we have grown deposits by more than $1.1 billion through the introduction of new retail and commercial deposit products, while lowering the cost of deposits. The cost of deposits declined 34 basis points in the second quarter to 1.47%.

·
Strong Core Operating Earnings Growth – Core operating earnings, excluding the impact of provision for loan losses and nonrecurring FDIC assessments and investment security and REO expense, totaled $56.0 million for the second quarter, a 14% increase from first quarter. Core operating earnings are a non-GAAP financial measure. See reconciliation of the GAAP financial measure to this non-GAAP financial measure in the tables attached.

·
Capital Strengthened – On July 1, 2009, East West announced that it had entered into binding agreements with three shareholders of the Company’s Non-Cumulative Perpetual Convertible Preferred Stock, Series A (the “Series A Preferred Stock”) to exchange 8,127,990 shares of the Company’s common stock for 90,311 shares of the Series A Preferred Stock, or a total increase to tangible common equity of $90.3 million.  Additionally, on July 14, 2009, in private placement transactions, two customers of East West purchased a total of 5,000,000 newly issued shares of the Company’s common stock at a price of $5.50 per share, for an additional increase to equity of $27.5 million.
 
2

 
Reduction of Problem Assets

Throughout the course of 2008 and the first half of 2009, we have actively reduced exposure to land and construction loans. Since December 31, 2007, we reduced total exposure to land and construction loans by nearly 50%. The overall credit risk on the $479.8 million in land loans and $945.1 million in construction loans has been reduced substantially. The quality of many of these loans has improved as borrowers brought additional capital and collateral to the projects. In other situations which were not as flexible, we sold a significant number of loans to new borrowers with stronger credit profiles. Construction projects are well along to completion, further reducing inherent risk of unfinished projects. During the second quarter, we sold $55.8 million in OREO and $166.3 million in loans - a total of $222.1 million. Year to date, we sold $79.8 million in OREO and $183.5 million in loans – a total of $263.3 million.

Total nonperforming assets as of June 30, 2009 were $278.9 million or 2.19% of total assets, compared to $303.8 million or 2.42% of total assets at March 31, 2009 and $263.9 million or 2.12% of total assets at December 31, 2008. The decrease in nonperforming assets was largely due to a decrease in nonaccrual loans of $85.8 million, partially offset by an increase in A/B notes of $77.2 million described in more detail in the paragraph below. Nonaccrual loans decreased during the quarter due to the sale of problem loans, fewer migrations into nonaccrual loans and the payoff and resolution of problem loans. Nonperforming assets as of June 30, 2009 included nonaccrual loans totaling $162.2 million, other real estate owned totaling $27.2 million and total loans modified or restructured totaling $89.5 million.

Nonperforming Assets Trend
(in millions)
 
Quarter Ended
 
   
December 31, 2008
   
March 31, 2009
   
June 30, 2009
 
Nonaccrual loans
  $ 214.6     $ 248.0     $ 162.2  
Modified or restructured loans
    11.0       17.2       12.3  
A/B notes
    -       -       77.2  
Total modified or restuctured loans
    11.0       17.2       89.5  
REO
    38.3       38.6       27.2  
Total nonperforming assets
  $ 263.9     $ 303.8     $ 278.9  
                         
Nonperforming assets to total assets
    2.12 %     2.42 %     2.19 %
Nonaccrual loans to total loans
    2.60 %     3.08 %     1.90 %
Allowance for loan losses to nonaccrual loans
    83 %     79 %     138 %

Modified or Restructured Loans - A/B Notes

As of June 30, 2009, total modified or restructured loans were $89.5 million. This included $77.2 million of performing, accrual loans at market interest rates that were structured as A/B notes. In these A/B notes, the original loan was restructured into two notes where the A note represents the portion of the original loan which allows for an acceptable loan-to-value and debt coverage on the collateral and is expected to be collected in full. The B note represents the portion of the original loan which was the shortfall in value and was fully charged off. The A/B notes balance of $77.2 million as of June 30, 2009 is comprised of the A note balances only. The A notes are performing loans at market interest rates with adequate collateral and cash flow, but are required to be disclosed as troubled debt restructurings in the year in which they are restructured. We anticipate that these loans will no longer be considered troubled debt restructurings or nonperforming assets under generally accepted accounting principles in the year 2010.
 
3

 
We have primarily utilized the A/B note restructures in two situations. First, $41.6 million or 54% of the restructures were for loans that were originally residential construction projects where the borrowers have made the decision to wait to sell the properties and rent them out until the market recovers. In these situations, we ordered new appraisals, valued the projects as rental properties and charged off any shortfalls in value as the B note. The resulting A notes are all current and have actual debt coverage and loan-to-value ratios that meet our underwriting guidelines. Second, $20.9 million or 27% of the restructures were to help preserve homeownership and keep responsible homeowners in their homes after steep declines in values have put them underwater.
 
These modifications were performed consistent with our own internal policies to assist homeowners and borrowers to keep their homes and businesses. Although these loans are reported as troubled debt restructurings in the current year, we believe that based on the underlying collateral and payment performance history, that we will receive full payment on these notes.

Reduction of Delinquent Loans

Total loan delinquencies as of June 30, 2009 decreased by $188.0 million or 39% from prior quarter. Loan delinquency fell across all delinquency categories and loan types. In particular, loans delinquent 30 to 59 days decreased 69% or $130.9 million, to $59.1 million. Delinquent loans decreased during the quarter due to the sale of problem loans, fewer migrations into delinquency categories and the payoff and resolution of delinquent loans.

Delinquent Loans Trend
(in millions)
 
Quarter Ended
 
   
December 31, 2008
   
March 31, 2009
   
June 30, 2009
 
Loans delinquent 30-59 days
  $ 75.4     $ 189.9     $ 59.1  
Loans delinquent 60-89 days
    69.5       115.9       90.1  
Loans delinquent 90+ days
    182.1       178.8       147.4  
Total delinquent loans
  $ 327.0     $ 484.6     $ 296.6  
Total loans receivable
  $ 8,249.5     $ 8,064.3     $ 8,529.0  
Delinquent loans to total loans ratio
    3.96 %     6.01 %     3.48 %

During the second quarter, we recorded $151.4 million provision for loan losses, increasing the allowance for loan losses at June 30, 2009 to $223.7 million or 2.62% of outstanding loans. This compares to $195.5 million or 2.42% of outstanding loans at March 31, 2009.  For the second quarter of 2009, East West had net charge-offs of $133.9 million, largely resulting from land and construction loans. East West continues to record substantial provision for loan losses to ensure an adequate allowance for loan losses commensurate with the risk profile inherent in the loan portfolio.
 
4

 
Capital Adequacy and Results of East West Stress Test

Capital Strength
(Dollars in millions)
 
6/30/09
Ratio
   
Well Capitalized Regulatory Requirement
   
Total Excess Above Well Capitalized Requirement
 
                   
Tier 1 leverage capital ratio
    10.38 %     5.00 %   $ 664.5  
Tier 1 risk-based capital ratio
    12.25 %     6.00 %   $ 654.2  
Total risk-based capital ratio
    14.28 %     10.00 %   $ 447.4  

East West has always been committed to maintaining strong capital levels and has been well capitalized throughout this economic cycle. As of the end of the second quarter, East West significantly exceeded well capitalized requirements under all regulatory guidelines.

In this challenging economic environment, we recognize the importance of building capital and preparing for an even more severely stressed economic cycle. During the second quarter, management followed the tenets of the Supervisory Capital Assessment Program (SCAP) and applied the “more adverse” stress test guidelines to our loan and investment portfolios. East West was not one of the banks subject to the SCAP stress test; however, management believed that it was prudent risk management to conduct a similar test on our loan and investment portfolios. The loss assumptions we used in our stress test were similar to the indicative loss rates disclosed in the SCAP white paper.

Based on the result of our stress test, East West would remain more than well capitalized under all regulatory guidelines. The stress test simulates an economic downturn scenario that is more severe than what we are currently experiencing. Our stress test indicated that with additional tangible common equity of $101 million, we would have sufficient tangible common equity to maintain a 4.00% tangible common equity to risk-weighted assets ratio, even in a more severe economic environment.

Management took immediate actions to increase tangible common equity. In May 2009, we desecuritized our private label MBS securitizations, increasing tangible common equity by $30.6 million.  In late June, we entered into agreements to exchange 90,311 shares of Series A Preferred Stock into common stock, increasing tangible common equity by an additional $90.3 million. Further, East West entered into private placement transactions on July 14, 2009 to sell 5,000,000 shares of common stock at a price of $5.50 per share. Through these transactions, which have all been executed as of today, tangible common equity has increased by a total of $148.4 million, $47.4 million in excess of our desired additional tangible common equity goal.
 
5

 
June 30, 2009 Pro Forma Capital Ratios After Completion of Private Preferred Stock Exchanges and Private Placement Common Stock Issuance

   
6/30/2009 Pro Forma Capital Ratios
 
   
Actual Ratios
 
+
After Impact of $90.3 Million Preferred Stock Exchanges (1)
 
+
After Impact of $27.5 Million Private Placement Common Stock Issuance (2)
 
Tier 1 leverage capital ratio
    10.38 %     10.38 %     10.59 %
Tier 1 risk-based capital ratio
    12.25 %     12.25 %     12.50 %
Total risk-based capital ratio
    14.28 %     14.28 %     14.52 %
TCE/Risk-weighted assets
    6.16 %     7.00 %     7.25 %
_________
(1)
The agreements for the exchanges of preferred stock totaling $90.3 million were entered into on June 29th and June 30th of 2009 but did not settle until after June 30, 2009. The impact to tangible common equity was not reflected until after the settlement dates, which occurred in early July 2009.
(2)
The $27.5 million private placement common stock issuance was executed on July 14, 2009 and settled on July 15, 2009.

International and Green Initiatives

In the second quarter we launched many initiatives that will provide future growth opportunities. During the quarter, we obtained approval to open a Representative Office in Taipei. East West’s growing physical presence in Asia includes a full service branch in Hong Kong and Representative Offices in Beijing and Shanghai. With our increasing presence in Asia, we will be better able to facilitate our customers’ lending and overall banking needs. Additionally, during the quarter, we successfully launched a global foreign exchange initiative and built a foreign exchange trading platform to further expand our international banking services. East West has also embraced “Green” initiatives and has partnered with organizations including the Los Angeles Lakers, Southern California Edison and Sempra Energy to support programs that foster conservation and efficient energy usage. These partnerships have raised our visibility on our “Green” initiatives and resulted in many new lending and deposit relationships.

Strong Deposit Growth

Total deposits as of June 30, 2009 increased to a record $8.7 billion, up $204.8 million or 10% annualized from $8.5 billion at March 31, 2009. The increase in deposits resulted from a strong increase in core deposits of $203.4 million or 21% annualized quarter over quarter.  We have successfully grown core deposits by introducing new deposit products, attracting new customers and expanding existing customer relationships. We continue to see strong growth in our retail banking division and have substantially increased small business accounts. Noninterest-bearing demand deposits totaled $1.3 billion as of June 30, 2009, or approximately 15% of total deposits.

With the success of increasing core deposits, the cost of deposits has decreased considerably. The cost of deposits for the second quarter decreased to 1.47%, a 34 basis point decrease from the first quarter of 2009.

6

 
Second Quarter 2009 Operating Results

Net interest income for the second quarter totaled $88.3 million, an 11% increase over first quarter of 2009. The net interest margin for the second quarter was 2.98%, a 24 basis point increase from 2.74% in the prior quarter. We believe that the margin will continue to strengthen throughout the remainder of 2009, benefiting from growing core deposits, increasing yields on loans and investment securities, pay-downs of higher cost term FHLB borrowings and ongoing downward repricing of maturing higher cost time deposits.

Currently, we estimate that the net interest margin will approximate 3.10% to 3.15% for the third quarter of 2009 and 3.20% to 3.25% for the fourth quarter of 2009.

Excluding the non-cash charge for impairment of investment securities and gains on sales of investment securities, noninterest income for the second quarter totaled $9.6 million, compared to $10.5 million in the first quarter of 2009. See reconciliation of the GAAP financial measure to this non-GAAP financial measure in the tables attached. In the second quarter of 2009, we recorded $37.4 million write-downs on investment securities for other-than-temporary impairment on bank pooled trust preferred securities. As of June 30, 2009, the book value of the pooled trust preferred securities was $84.9 million, 3% of the total $2.8 billion of investment securities and less than 1% of $12.7 billion in total assets.

Noninterest expense totaled $57.9 million for the second quarter 2009, an increase of $6.5 million from the first quarter of 2009. The increase in noninterest expense quarter over quarter was primarily due to a $5.7 million special deposit insurance assessment by the FDIC and OREO expenses which were $1.7 million greater than in the first quarter. The remaining noninterest expenses decreased $845 thousand or 2% quarter over quarter. See reconciliation of the GAAP financial measure to this non-GAAP financial measure in the tables attached. We will continue to manage down all operating costs for the remainder of 2009; however, further cost containment may be offset by higher FDIC assessments and OREO expenses.

Extraordinary Item

In the month of May, we desecuritized three private label mortgage-backed securitizations which had $330.7 million in single family loans and $304.9 million in multi-family loans as underlying assets. As a result of these transactions, the investment securities on our balance sheet were replaced by the underlying loans totaling $635.6 million and we recorded an extraordinary loss, net of tax, of $5.4 million. This extraordinary item was the result of recording an allowance for loan losses for these single family and multifamily loans.

7

 
Induced Conversion of Series A Preferred Stock

The agreements we entered into on June 29 and June 30, 2009 to exchange 90,311 shares of Series A Preferred Stock into common stock are considered to be an induced conversion. For these induced conversions, consideration paid to holders above the carrying amount of the preferred stock on our balance sheet of $14.8 million in July was accounted for as a preferred dividend in the second quarter of 2009, as we had entered into binding agreements before the end of the second quarter.

Dividend Payout

East West Bancorp’s Board of Directors has declared third quarter dividends on the common stock and remaining Series A Preferred Stock. The common stock cash dividend of $0.01 is payable on or about August 26, 2009 to shareholders of record on August 12, 2009. The dividend on the Series A Preferred Stock of $20.00 per share is payable on August 1, 2009 to shareholders of record on July 15, 2009. We will continue to review the dividend policy quarterly in light of the current economic environment.

About East West

East West Bancorp is a publicly owned company with $12.7 billion in assets and is traded on the Nasdaq Global Select Market under the symbol “EWBC”. The Company’s wholly owned subsidiary, East West Bank, is the second largest independent commercial bank headquartered in Southern California with 71 branch locations. East West Bank serves the community with 69 branch locations across Southern and Northern California and a branch location in Houston, Texas. East West Bank has three international locations in Greater China, including a full-service branch in Hong Kong and representative offices in Beijing and Shanghai. For more information on East West Bancorp, visit the Company’s website at www.eastwestbank.com.

Forward-Looking Statements

This release may contain forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and accordingly, the cautionary statements contained in East West Bancorp’s Annual Report on Form 10-K for the year ended Dec. 31, 2008 (See Item I -- Business, and Item 7 -- Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations), and other filings with the Securities and Exchange Commission are incorporated herein by reference. These factors include, but are not limited to: the effect of interest rate and currency exchange fluctuations; competition in the financial services market for both deposits and loans; EWBC’s ability to efficiently incorporate acquisitions into its operations; the ability of borrowers to perform as required under the terms of their loans; effect of additional provisions for loan losses; effect of any goodwill impairment, the ability of EWBC and its subsidiaries to increase its customer base; the effect of regulatory and legislative action, including California tax legislation and an announcement by the state’s Franchise Tax Board regarding the taxation of Registered Investment Companies; and regional and general economic conditions.  Actual results and performance in future periods may be materially different from any future results or performance suggested by the forward-looking statements in this release. Such forward-looking statements speak only as of the date of this release. East West expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in the Bank’s expectations of results or any change in event.
 
8

 
EAST WEST BANCORP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(unaudited)
 
   
June 30, 2009
   
March 31, 2009
   
December 31, 2008
 
Assets
                 
Cash and cash equivalents
  $ 573,114     $ 541,066     $ 878,853  
Short-term investments
    554,293       329,288       228,441  
Securities purchased under resale agreements
    75,000       50,000       50,000  
Investment securities held-to-maturity, at amortized cost
    794,840       734,799       122,317  
Investment securities available-for-sale, at fair value
    1,381,810       1,994,403       2,040,194  
Loans receivable (net of allowance for loan losses
                       
of $223,700, $195,450 and $178,027)
    8,289,229       7,865,925       8,069,377  
Other real estate owned, net
    27,188       38,634       38,302  
Premiums on deposits acquired, net
    18,973       20,065       21,190  
Goodwill
    337,438       337,438       337,438  
Other assets
    667,630       652,906       636,704  
Total assets
  $ 12,719,515     $ 12,564,524     $ 12,422,816  
                         
Liabilities and Stockholders' Equity
                       
Deposits
  $ 8,658,818     $ 8,454,059     $ 8,141,959  
Federal funds purchased
    22       22       28,022  
Federal Home Loan Bank advances
    1,173,238       1,233,269       1,353,307  
Securities sold under repurchase agreements
    1,020,080       998,061       998,430  
Notes payable
    11,578       14,597       16,506  
Long-term debt
    235,570       235,570       235,570  
Accrued expenses and other liabilities
    143,441       93,753       98,256  
Total liabilities
    11,242,747       11,029,331       10,872,050  
Stockholders' equity
    1,476,768       1,535,193       1,550,766  
Total liabilities and stockholders' equity
  $ 12,719,515     $ 12,564,524     $ 12,422,816  
Book value per common share
  $ 15.65     $ 16.60     $ 16.92  
Number of common shares at period end
    64,032       63,958       63,746  
                         
Ending Balances
                       
   
June 30, 2009
   
March 31, 2009
   
December 31, 2008
 
Loans receivable
                       
Real estate - single family
  $ 883,447     $ 517,844     $ 491,315  
Real estate - multifamily
    1,017,803       689,728       677,989  
Real estate - commercial
    3,510,248       3,510,749       3,472,000  
Real estate - land
    479,808       544,892       576,564  
Real estate - construction
    945,107       1,154,782       1,260,724  
Commercial
    1,143,526       1,128,903       1,210,260  
Trade finance
    269,150       292,816       343,959  
Consumer
    279,872       224,601       216,642  
Total gross loans receivable
    8,528,961       8,064,315       8,249,453  
Unearned fees, premiums and discounts
    (16,032 )     (2,940 )     (2,049 )
Allowance for loan losses
    (223,700 )     (195,450 )     (178,027 )
Net loans receivable
  $ 8,289,229     $ 7,865,925     $ 8,069,377  
                         
Deposits
                       
Noninterest-bearing demand
  $ 1,326,952     $ 1,297,151     $ 1,292,997  
Interest-bearing checking
    338,696       352,334       363,285  
Money market
    1,999,464       1,806,985       1,323,402  
Savings
    405,837       411,104       420,133  
Total core deposits
    4,070,949       3,867,574       3,399,817  
Time deposits less than $100,000
    1,121,648       1,211,480       1,521,988  
Time deposits $100,000 or greater
    3,466,221       3,375,005       3,220,154  
Total time deposits
    4,587,869       4,586,485       4,742,142  
Total deposits
  $ 8,658,818     $ 8,454,059     $ 8,141,959  
 
9

 
EAST WEST BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(unaudited)
 
   
Quarter Ended
 
   
June 30, 2009
   
March 31, 2009
   
June 30, 2008
 
                   
Interest and dividend income
  $ 146,333     $ 144,923     $ 167,905  
Interest expense
    (58,073 )     (65,242 )     (75,729 )
Net interest income before provision for loan losses
    88,260       79,681       92,176  
Provision for loan losses
    (151,422 )     (78,000 )     (85,000 )
Net interest (loss) income after provision for loan losses
    (63,162 )     1,681       7,176  
Noninterest (loss) income
    (26,199 )     13,794       3,438  
Noninterest expense
    (57,912 )     (51,406 )     (55,655 )
Loss before benefit for income taxes
    (147,273 )     (35,931 )     (45,041 )
Benefit for income taxes
    60,548       13,465       19,154  
Loss before extraordinary item
  $ (86,725 )   $ (22,466 )   $ (25,887 )
Extraordinary item, net of tax
    (5,366 )     -       -  
Net loss after extraordinary item
  $ (92,091 )   $ (22,466 )   $ (25,887 )
Preferred stock dividend, inducement, and amortization of preferred stock discount
    (23,623 )     (8,743 )     -  
Net loss available to common stockholders
  $ (115,714 )   $ (31,209 )   $ (25,887 )
Net loss per share, basic
  $ (1.83 )   $ (0.50 )   $ (0.41 )
Net loss per share, diluted
  $ (1.83 )   $ (0.50 )   $ (0.41 )
Shares used to compute per share net loss:
                       
- Basic
    63,105       62,998       62,599  
- Diluted
    63,105       62,998       62,599  
 
 
   
Quarter Ended
 
   
June 30, 2009
   
March 31, 2009
   
June 30, 2008
 
Noninterest (loss) income:
                 
Impairment loss on investment securities
  $ (37,447 )   $ (200 )   $ (9,945 )
Branch fees
    4,991       4,793       4,339  
Letters of credit fees and commissions
    1,930       1,854       2,476  
Net gain on sale of investment securities
    1,680       3,521       3,433  
Ancillary loan fees
    1,356       2,229       984  
Net gain on sale of loans
    3       8       273  
Other operating income
    1,288       1,589       1,878  
Total noninterest (loss) income
  $ (26,199 )   $ 13,794     $ 3,438  
                         
Noninterest expense:
                       
Compensation and employee benefits
  $ 16,509     $ 17,108     $ 25,790  
Deposit insurance premiums and regulatory assessments
    9,568       3,325       2,321  
Other real estate owned expense
    8,682       7,031       508  
Occupancy and equipment expense
    6,297       7,391       6,539  
Legal expense
    1,755       1,778       1,135  
Amortization of investments in affordable housing partnerships
    1,652       1,760       1,920  
Data processing
    1,141       1,142       1,135  
Amortization and impairment writedowns of premiums on deposits acquired
    1,092       1,125       1,827  
Consulting expense
    672       448       1,669  
Other operating expense
    10,544       10,298       12,811  
Total noninterest expense
  $ 57,912     $ 51,406     $ 55,655  
 
10

 
EAST WEST BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(unaudited)
 
   
Year To Date
       
   
June 30, 2009
   
June 30, 2008
   
% Change
 
                   
Interest and dividend income
  $ 291,256     $ 355,089       (18 )
Interest expense
    (123,315 )     (163,294 )     (24 )
Net interest income before provision for loan losses
    167,941       191,795       (12 )
Provision for loan losses
    (229,422 )     (140,000 )     64  
Net interest (loss) income after provision for loan losses
    (61,481 )     51,795       (219 )
Noninterest (loss) income
    (12,405 )     19,351       (164 )
Noninterest expense
    (109,318 )     (108,545 )     1  
Loss before benefit for income taxes
    (183,204 )     (37,399 )     390  
Benefit for income taxes
    74,013       16,556       347  
Net loss before extraordinary items
  $ (109,191 )   $ (20,843 )     424  
Extraordinary item, net of tax
  $ (5,366 )   $ -    
NA
 
Net loss after extraordinary item
  $ (114,557 )   $ (20,843 )     450  
Preferred stock dividend, inducement, and amortization of preferred stock discount
    (32,366 )     -    
NA
 
Net loss available to common stockholders
  $ (146,923 )   $ (20,843 )     605  
Net loss per share, basic
  $ (2.33 )   $ (0.33 )     606  
Net loss per share, diluted
  $ (2.33 )   $ (0.33 )     606  
Shares used to compute per share net loss:
                       
- Basic
    63,052       62,542       1  
- Diluted
    63,052       62,542       1  
 
 
   
Year To Date
         
   
June 30, 2009
   
June 30, 2008
   
% Change
 
Noninterest (loss) income:
                       
Impairment loss on investment securities
  $ (37,647 )   $ (9,945 )     279  
Branch fees
    9,784       8,440       16  
Net gain on sale of investment securities
    5,201       7,767       (33 )
Letters of credit fees and commissions
    3,784       5,153       (27 )
Ancillary loan fees
    3,585       2,125       69  
Net gain on sale of loans
    11       2,128       (99 )
Other operating income
    2,877       3,683       (22 )
Total noninterest (loss) income
  $ (12,405 )   $ 19,351       (164 )
                         
Noninterest expense:
                       
Compensation and employee benefits
  $ 33,617     $ 49,058       (31 )
Other real estate owned expense
    15,713       1,397       1,025  
Occupancy and equipment expense
    13,688       13,547       1  
Deposit insurance premiums and regulatory assessments
    12,893       3,513       267  
Legal expense
    3,533       3,035       16  
Amortization of investments in affordable housing partnerships
    3,412       3,635       (6 )
Data processing
    2,283       2,331       (2 )
Amortization and impairment writedowns of premiums on deposits acquired
    2,217       4,564       (51 )
Consulting expense
    1,120       2,534       (56 )
Other operating expense
    20,842       24,931       (16 )
Total noninterest expense
  $ 109,318     $ 108,545       1  
 
11

 
EAST WEST BANCORP, INC.
GAAP TO NON-GAAP RECONCILIATION
(In thousands)
(Unaudited)
 
   
Quarter Ended
 
   
June 30, 2009
   
March 31, 2009
 
             
Loss before benefit for income taxes
  $ (147,273 )   $ (35,931 )
Add:
               
Provision for loan losses
    151,422       78,000  
Impairment loss on investment securities
    37,447       200  
FDIC special assessment
    5,700       -  
Other real estate owned expense
    8,682       7,031  
Core operating earnings (non-GAAP)
  $ 55,978     $ 49,300  
                 
                 
                 
Noninterest (loss) income
  $ (26,199 )   $ 13,794  
Add:
               
Impairment loss on investment securities
    37,447       200  
Net gain on sale of investment securities
    (1,680 )     (3,521 )
Noninterest income (non-GAAP)
  $ 9,568     $ 10,473  
                 
Noninterest expense
  $ 57,912     $ 51,406  
Add:
               
Other real estate owned expense
    (8,682 )     (7,031 )
FDIC special assessment
    (5,700 )     -  
Core noninterest expense (non-GAAP)
  $ 43,530     $ 44,375  
 
12

 
EAST WEST BANCORP, INC.
SELECTED FINANCIAL INFORMATION
(In thousands)
(unaudited)
 
Average Balances
 
Quarter Ended
 
   
June 30, 2009
   
March 31, 2009
   
June 30, 2008
 
Loans receivable
                 
Real estate - single family
  $ 686,073     $ 506,753     $ 458,021  
Real estate - multifamily
    823,890       692,885       731,042  
Real estate - commercial
    3,516,257       3,465,505       3,494,118  
Real estate - land
    523,799       582,649       649,392  
Real estate - construction
    1,072,319       1,232,235       1,566,562  
Commercial
    1,112,869       1,179,183       1,227,891  
Trade finance
    274,388       309,586       448,471  
Consumer
    235,255       228,377       197,531  
Total loans receivable
    8,244,850       8,197,173       8,773,028  
Investment securities held-to-maturity
    792,209       422,493       -  
Investment securities available-for-sale
    1,820,789       2,280,766       1,990,262  
Earning assets
    11,909,122       11,802,045       11,125,104  
Total assets
    12,619,022       12,498,249       11,771,136  
                         
Deposits
                       
Noninterest-bearing demand
  $ 1,300,676     $ 1,238,551     $ 1,405,040  
Interest-bearing checking
    356,756       361,569       412,422  
Money market
    1,822,470       1,487,178       1,103,522  
Savings
    415,828       410,232       468,541  
Total core deposits
    3,895,730       3,497,530       3,389,525  
Time deposits less than $100,000
    1,162,205       1,332,944       964,196  
Time deposits $100,000 or greater
    3,386,730       3,482,074       3,148,739  
Total time deposits
    4,548,935       4,815,018       4,112,935  
Total deposits
    8,444,665       8,312,548       7,502,460  
Interest-bearing liabilities
    9,664,662       9,595,665       9,005,974  
Stockholders' equity
    1,530,253       1,540,948       1,221,285  
 
 
Selected Ratios
 
Quarter Ended
 
   
June 30, 2009
   
March 31, 2009
   
June 30, 2008
 
For The Period
                       
Return on average assets
    -2.92 %     -0.72 %     -0.88 %
Return on average common equity
    -43.81 %     -11.69 %     -8.48 %
Interest rate spread (3)
    2.52 %     2.22 %     2.70 %
Net interest margin (3)
    2.98 %     2.74 %     3.33 %
Yield on earning assets (3)
    4.93 %     4.98 %     6.07 %
Cost of deposits
    1.47 %     1.81 %     2.33 %
Cost of funds
    2.12 %     2.44 %     2.92 %
Noninterest expense/average assets (1)
    1.75 %     1.55 %     1.74 %
Efficiency ratio (4)
    55.12 %     51.80 %     48.62 %
Net chargeoffs to average loans (2)
    6.50 %     2.91 %     1.59 %
Gross loan chargeoffs
  $ 137,411     $ 60,140     $ 35,209  
Loan recoveries
  $ (3,535 )   $ (571 )   $ (366 )
Net loan chargeoffs
  $ 133,876     $ 59,569     $ 34,843  
 
(1)
Excludes the amortization of intangibles, amortization and impairment writedowns of premiums on deposits acquired, impairment writedown on goodwill, and amortization of investments in affordable housing partnerships.
(2)
Annualized.
(3)
Yields on certain securities have been adjusted upward to a "fully taxable equivalent" basis in order to reflect the effect of income which is exempt from federal income taxation at the current statutory tax rate.
(4)
Represents noninterest expense, excluding the amortization of intangibles, amortization and impairment writedowns of premiums on deposits acquired, impairment writedown on goodwill, and investments in affordable housing partnerships, divided by the  aggregate of net interest income before provision for loan losses and noninterest income, excluding impairment writedowns on investment securities.
 
13

 
EAST WEST BANCORP, INC.
SELECTED FINANCIAL INFORMATION
(In thousands)
(unaudited)
 
Average Balances
 
Year To Date June 30,
   
%
 
   
2009
   
2008
   
Change
 
Loans receivable
                 
Real estate - single family
  $ 596,913     $ 451,081       32  
Real estate - multifamily
    758,744       714,792       6  
Real estate - commercial
    3,491,166       3,557,946       (2 )
Real estate - land
    552,917       660,495       (16 )
Real estate - construction
    1,151,836       1,575,306       (27 )
Commercial
    1,145,842       1,255,352       (9 )
Trade finance
    291,890       456,891       (36 )
Consumer
    231,835       192,279       21  
Total loans receivable
    8,221,143       8,864,142       (7 )
Investment securities held-to-maturity
    608,372       -    
NA
 
Investment securities available-for-sale
    2,050,106       1,914,642       7  
Earning assets
    11,856,477       11,087,927       7  
Total assets
    12,557,996       11,780,012       7  
                         
Deposits
                       
Noninterest-bearing demand
  $ 1,270,716     $ 1,399,920       (9 )
Interest-bearing checking
    358,492       407,631       (12 )
Money market
    1,655,476       1,099,111       51  
Savings
    413,046       469,989       (12 )
Total core deposits
    3,697,730       3,376,651       10  
Time deposits less than $100,000
    1,247,101       951,241       31  
Time deposits $100,000 or greater
    3,434,140       3,088,157       11  
Total time deposits
    4,681,241       4,039,398       16  
Total deposits
    8,378,971       7,416,049       13  
Interest-bearing liabilities
    9,629,422       9,045,283       6  
Stockholders' equity
    1,535,532       1,189,223       29  
 
 
Selected Ratios
 
Year To Date June 30,
   
%
 
   
2009
   
2008
   
Change
 
For The Period
                       
Return on average assets
    -1.82 %     -0.35 %     420  
Return on average common equity
    -27.66 %     -3.51 %     689  
Interest rate spread (3)
    2.38 %     2.82 %     (16 )
Net interest margin (3)
    2.86 %     3.48 %     (18 )
Yield on earning assets (3)
    4.96 %     6.44 %     (23 )
Cost of deposits
    1.64 %     2.59 %     (37 )
Cost of funds
    2.28 %     3.14 %     (27 )
Noninterest expense/average assets (1)
    1.65 %     1.69 %     (2 )
Efficiency ratio (4)
    53.51 %     45.12 %     19  
Net chargeoffs to average loans (2)
    4.71 %     1.36 %     246  
Gross loan chargeoffs
  $ 197,551     $ 60,792       225  
Loan recoveries
  $ (4,106 )   $ (566 )     625  
Net loan chargeoffs
  $ 193,445     $ 60,226       221  
                         
Period End
                       
Tier 1 risk-based capital ratio
    12.25 %     11.04 %     11  
Total risk-based capital ratio
    14.28 %     13.01 %     10  
Tier 1 leverage capital ratio
    10.38 %     10.01 %     4  
 
(1)
Excludes the amortization of intangibles, amortization and impairment writedowns of premiums on deposits acquired, impairment writedown on goodwill, and amortization of investments in affordable housing partnerships.
(2)
Annualized.
(3)
Yields on certain securities have been adjusted upward to a "fully taxable equivalent" basis in order to reflect the effect of income which is exempt from federal income taxation at the current statutory tax rate.
(4)
Represents noninterest expense, excluding the amortization of intangibles, amortization and impairment writedowns of premiums on deposits acquired, impairment writedown on goodwill, and investments in affordable housing partnerships, divided by the aggregate of net interest income before provision for loan losses and noninterest income, excluding impairment writedowns on investment securities.
 
14

 
EAST WEST BANCORP, INC.
QUARTER TO DATE AVERAGE BALANCES, YIELDS AND RATES PAID
(In thousands)
(unaudited)
 
   
Quarter Ended
 
   
June 30, 2009
   
March 31, 2009
 
   
Average
               
Average
             
   
Volume
   
Interest
   
Yield (1)
   
Volume
   
Interest
   
Yield (1)
 
                                     
ASSETS
                                   
Interest-earning assets:
                                   
Short-term investments
  $ 876,386     $ 2,509       1.15 %   $ 731,573     $ 2,976       1.65 %
Securities purchased under resale agreements (term)
    51,374       1,292       9.95 %     50,000       1,250       10.00 %
Investment securities held-to-maturity
                                               
Taxable
    769,432       11,883       6.18 %     405,851       6,695       6.60 %
Tax-exempt (2)
    22,777       374       6.57 %     16,642       277       6.66 %
Investment securities available-for-sale
    1,820,789       18,183       4.01 %     2,280,766       22,493       4.00 %
Loans receivable
    8,244,850       111,669       5.43 %     8,197,173       110,816       5.48 %
Federal Home Loan Bank and Federal Reserve
                                         
Bank stocks
    123,514       545       1.76 %     120,040       506       1.69 %
Total interest-earning assets
    11,909,122       146,455       4.93 %     11,802,045       145,013       4.98 %
                                                 
Noninterest-earning assets:
                                               
Cash and due from banks
    113,853                       122,899                  
Allowance for loan losses
    (198,802 )                     (186,058 )                
Other assets
    794,849                       759,363                  
Total assets
  $ 12,619,022                     $ 12,498,249                  
                                                 
                                                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                                         
Interest-bearing liabilities:
                                               
Checking accounts
    356,756       324       0.36 %     361,569       393       0.44 %
Money market accounts
    1,822,470       6,140       1.35 %     1,487,178       5,694       1.55 %
Savings deposits
    415,828       659       0.64 %     410,232       702       0.69 %
Time deposits less than $100,000
    1,162,205       6,947       2.40 %     1,332,944       9,618       2.93 %
Time deposits $100,000 or greater
    3,386,730       16,820       1.99 %     3,482,074       20,666       2.41 %
Federal funds purchased
    4,849       3       0.24 %     2,445       3       0.49 %
Federal Home Loan Bank advances
    1,273,640       13,142       4.14 %     1,285,070       13,877       4.38 %
Securities sold under repurchase agreements
    1,006,614       12,004       4.72 %     998,583       11,872       4.76 %
Long-term debt
    235,570       2,034       3.42 %     235,570       2,417       4.10 %
Total interest-bearing liabilities
    9,664,662       58,073       2.41 %     9,595,665       65,242       2.76 %
                                                 
Noninterest-bearing liabilities:
                                               
Demand deposits
    1,300,676                       1,238,551                  
Other liabilities
    123,431                       123,085                  
Stockholders' equity
    1,530,253                       1,540,948                  
Total liabilities and stockholders' equity
  $ 12,619,022                     $ 12,498,249                  
                                                 
Interest rate spread
                    2.52 %                     2.22 %
                                                 
Net interest income and net yield
                                               
on interest-earning assets (2)
          $ 88,382       2.98 %           $ 79,771       2.74 %
 
(1)
Annualized
(2)
Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.
 
15

 
EAST WEST BANCORP, INC.
YEAR TO DATE AVERAGE BALANCES, YIELDS AND RATES PAID
(In thousands)
(unaudited)
 
   
Year To Date June 30,
 
   
2009
   
2008
 
   
Average
               
Average
             
   
Volume
   
Interest
   
Yield (1)
   
Volume
   
Interest
   
Yield (1)
 
                                     
ASSETS
                                   
Interest-earning assets:
                                   
Short-term investments (2)
  $ 804,379     $ 5,485       1.38 %   $ 135,373     $ 1,589       2.35 %
Securities purchased under resale agreements (term)
    50,691       2,542       9.97 %     57,143       3,817       13.40 %
Investment securities held-to-maturity
                                               
Taxable
    588,646       18,578       6.31 %     -       -       -  
Tax-exempt (3)
    19,726       651       6.60 %     -       -       -  
Investment securities available-for-sale (4)
    2,050,106       40,676       4.00 %     1,914,642       53,499       5.60 %
Loans receivable
    8,221,143       222,485       5.46 %     8,864,142       293,431       6.64 %
Federal Home Loan Bank and Federal Reserve
                                               
Bank stocks
    121,786       1,051       1.73 %     116,627       3,472       5.97 %
Total interest-earning assets
    11,856,477       291,468       4.96 %     11,087,927       355,808       6.44 %
                                                 
Noninterest-earning assets:
                                               
Cash and due from banks
    118,351                       137,057                  
Allowance for loan losses
    (192,465 )                     (113,098 )                
Other assets
    775,633                       668,126                  
Total assets
  $ 12,557,996                     $ 11,780,012                  
                                                 
                                                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                                         
Interest-bearing liabilities:
                                               
Checking accounts
    358,492       717       0.40 %     407,631       2,048       1.01 %
Money market accounts
    1,655,476       11,834       1.44 %     1,099,111       14,582       2.66 %
Savings deposits
    413,046       1,361       0.66 %     469,989       2,412       1.03 %
Time deposits less than $100,000
    1,247,101       16,565       2.68 %     951,241       16,401       3.46 %
Time deposits $100,000 or greater
    3,434,140       37,486       2.20 %     3,088,157       60,346       3.92 %
Federal funds purchased
    3,653       6       0.33 %     129,405       1,746       2.71 %
Federal Home Loan Bank advances
    1,279,323       27,019       4.26 %     1,663,188       37,223       4.49 %
Securities sold under repurchase agreements
    1,002,621       23,876       4.74 %     1,000,991       21,819       4.37 %
Long-term debt
    235,570       4,451       3.76 %     235,570       6,717       5.72 %
Total interest-bearing liabilities
    9,629,422       123,315       2.58 %     9,045,283       163,294       3.62 %
                                                 
Noninterest-bearing liabilities:
                                               
Demand deposits
    1,270,716                       1,399,920                  
Other liabilities
    122,326                       145,586                  
Stockholders' equity
    1,535,532                       1,189,223                  
Total liabilities and stockholders' equity
  $ 12,557,996                     $ 11,780,012                  
                                                 
Interest rate spread
                    2.38 %                     2.82 %
                                                 
Net interest income and net yield
                                               
on interest-earning assets (3)
          $ 168,153       2.86 %           $ 192,514       3.48 %
 
(1)
Annualized
(2)
Year to date June 30, 2008, includes short-term securities purchased under resale agreements.
(3)
Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.
(4)
Year to date June 30, 2008, amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.
 
16

 
EAST WEST BANCORP, INC.
QUARTERLY ALLOWANCE FOR LOAN LOSSES RECAP
(In thousands)
(unaudited)
 
   
Quarter Ended
 
   
6/30/2009
   
3/31/2009
   
12/31/2008
   
9/30/2008
   
6/30/2008
 
LOANS
                             
Allowance balance, beginning of period
  $ 195,450     $ 178,027     $ 177,155     $ 168,413     $ 117,120  
Allowance for unfunded loan commitments and letters of credit
    1,442       (1,008 )     (625 )     5,437       1,136  
Provision for loan losses
    151,423       78,000       43,000       43,000       85,000  
Impact of desecuritization
    9,262       -       -       -       -  
                                         
Net Charge-offs:
                                       
Real estate - single family
    14,058       3,832       1,756       1,022       632  
Real estate - multifamily
    2,256       1,624       524       1,006       436  
Real estate - commercial
    12,472       2,790       750       663       (3 )
Real estate - land
    33,183       12,523       9,039       19,128       16,337  
Real estate - residential construction
    30,634       16,347       17,127       13,557       15,726  
Real estate - commercial construction
    28,602       1,977       -       -       -  
Commercial
    11,577       18,146       8,054       3,474       640  
Trade finance
    774       1,032       4,026       750       922  
Consumer
    320       1,298       227       95       153  
Total net charge-offs
    133,876       59,569       41,503       39,695       34,843  
Allowance balance, end of period
  $ 223,700     $ 195,450     $ 178,027     $ 177,155     $ 168,413  
                                         
UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT:
                         
Allowance balance, beginning of period
  $ 7,349     $ 6,341     $ 5,716     $ 11,153     $ 12,289  
Provision for unfunded loan commitments and letters of credit
    (1,442 )     1,008       625       (5,437 )     (1,136 )
Allowance balance, end of period
  $ 5,907     $ 7,349     $ 6,341     $ 5,716     $ 11,153  
GRAND TOTAL, END OF PERIOD
  $ 229,607     $ 202,799     $ 184,368     $ 182,871     $ 179,566  
                                         
Nonperforming assets to total assets
    2.19 %     2.42 %     2.12 %     1.71 %     1.64 %
Allowance for loan losses to total gross loans at end of period
    2.62 %     2.42 %     2.16 %     2.14 %     1.95 %
Allowance for loan losses and unfunded loan commitments to total gross loans at end of period
    2.69 %     2.51 %     2.23 %     2.21 %     2.07 %
Allowance to nonaccrual loans at end of period
    137.94 %     78.81 %     82.95 %     99.92 %     98.59 %
Nonaccrual loans to total loans
    1.90 %     3.08 %     2.60 %     2.14 %     1.97 %
 
17

 
EAST WEST BANCORP, INC
TOTAL NON-PERFORMING ASSETS AS OF JUNE 30, 2009
(in thousands)
(unaudited)
 
     
Total Nonaccrual Loans
         
Total Modified or
Restructured Loans
                   
   
90+ Days Delinquent
   
Under
90+ Days Delinquent
   
Total Nonaccrual
Loans (1)
   
Modified or Restructured Loans
   
A/B Loans
   
Total Modified or Restructured Loans
   
REO Assets
   
Total
Non-Performing Assets
 
Loan Type
                                               
Real estate - single family
  $ 5,181     $ -     $ 5,181     $ 376     $ 14,121     $ 14,497     $ 4,921     $ 24,599  
Real estate - multifamily
    7,938       -       7,938       2,720       46,418       49,138       281       57,357  
Real estate - commercial
    19,786       4,590       24,376       2,178       8,277       10,455       2,887       37,718  
Real estate - land
    35,660       1,656       37,316       -       375       375       13,307       50,998  
Real estate - residential construction
    46,176       -       46,176       -       -       -       4,154       50,330  
Real estate - commercial construction
    20,629       -       20,629       -       8,022       8,022       -       28,651  
Commercial
    8,034       8,067       16,101       7,001       -       7,001       626       23,728  
Trade Finance
    3,706       -       3,706       -       -       -       211       3,917  
Consumer
    339       412       751       -       -       -       801       1,552  
Total
  $ 147,449     $ 14,725     $ 162,174       12,275       77,213       89,488     $ 27,188     $ 278,850  
(1) Total TDR loans included in Nonaccrual loans $5,236.
 
EAST WEST BANCORP, INC
TOTAL NON-PERFORMING ASSETS AS OF MARCH 31, 2009
(in thousands)
(unaudited)
 
   
Total Nonaccrual Loans
                         
   
90+ Days Delinquent
   
Under 90+ Days Delinquent
   
Total
Nonaccrual Loans (1)
   
Modified or Restructured Loans
   
REO Assets
   
Total
Non-
Performing Assets
 
Loan Type
                                   
Real estate - single family
  $ 18,515     $ 634     $ 19,149     $ 2,793     $ 671     $ 22,613  
Real estate - multifamily
    9,863       -       9,863       4,481       887       15,231  
Real estate - commercial
    12,465       42,724       55,189       3,270       4,240       62,699  
Real estate - land
    63,052       6,233       69,285       -       17,934       87,219  
Real estate - residential construction
    28,433       14,196       42,629       -       13,278       55,907  
Real estate - commercial construction
    28,604       -       28,604       -       -       28,604  
Commercial
    16,798       5,000       21,798       6,602       1,236       29,636  
Trade Finance
    177       -       177       -       270       447  
Consumer
    839       482       1,321       -       118       1,439  
Total
  $ 178,746     $ 69,269     $ 248,015     $ 17,146     $ 38,634     $ 303,795  
(1) Total TDR loans included in Nonaccrual loans $2,508.
 
EAST WEST BANCORP, INC
TOTAL NON-PERFORMING ASSETS AS OF DECEMBER 31, 2008
(in thousands)
(unaudited)
 
   
Total Nonaccrual Loans
                         
   
90+ Days Delinquent
   
Under 90+ Days Delinquent
   
Total
Nonaccrual Loans (1)
   
Modified or Restructured Loans
   
REO Assets
   
Total
Non-
Performing Assets
 
Loan Type
                                   
Real estate - single family
  $ 13,519     $ -     $ 13,519     $ 1,201     $ 419     $ 15,139  
Real estate - multifamily
    11,845       -       11,845       3,519       1,136       16,500  
Real estate - commercial
    24,680       -       24,680       2,406       4,882       31,968  
Real estate - land
    66,185       12,892       79,077       -       10,307       89,384  
Real estate - residential construction
    27,052       8,766       35,818       -       21,146       56,964  
Real estate - commercial construction
    30,581       -       30,581       -       -       30,581  
Commercial
    6,570       10,604       17,174       3,866       142       21,182  
Trade Finance
    65       -       65       -       270       335  
Consumer
    1,654       194       1,848       -       -       1,848  
Total
  $ 182,151     $ 32,456     $ 214,607     $ 10,992     $ 38,302     $ 263,901  
(1) Total TDR loans included in Nonaccrual loans $42.
 
18

 
EAST WEST BANCORP, INC
DELINQUENT LOANS BY LOAN CATEGORIES AS OF JUNE 30, 2009
(in thousands)
(unaudited)
 
Loan Type
 
30-59 Days Delinquent
   
60-89 Days Delinquent
   
90+ Days Delinquent
   
Total Delinquent Loans
 
Real estate - single family
  $ 553     $ 6,775     $ 5,181     $ 12,509  
Real estate - multifamily
    1,960       5,618       7,938       15,516  
Real estate - commercial
    33,416       28,341       19,786       81,543  
Real estate - land
    1,570       22,190       35,660       59,420  
Real estate - residential construction
    17,331       6,789       46,176       70,296  
Real estate - commercial construction
    -       -       20,629       20,629  
Commercial
    4,021       19,480       8,034       31,535  
Trade finance
    -       408       3,706       4,114  
Consumer
    244       458       339       1,041  
Total Delinquent Loans
  $ 59,095     $ 90,059     $ 147,449     $ 296,603  
 
EAST WEST BANCORP, INC
DELINQUENT LOANS BY LOAN CATEGORIES AS OF MARCH 31, 2009
(in thousands)
(unaudited)
 
Loan Type
 
30-59 Days Delinquent
   
60-89 Days Delinquent
   
90+ Days Delinquent
   
Total Delinquent Loans
 
Real estate - single family
  $ 31,105     $ 4,226     $ 18,515     $ 53,846  
Real estate - multifamily
    17,310       2,585       9,863       29,758  
Real estate - commercial
    68,964       25,929       12,465       107,358  
Real estate - land
    12,835       8,969       63,052       84,856  
Real estate - residential construction
    31,166       61,286       28,433       120,885  
Real estate - commercial construction
    19,512       4,545       28,604       52,661  
Commercial
    4,317       3,751       16,798       24,866  
Trade finance
    4,123       4,468       177       8,768  
Consumer
    613       110       839       1,562  
Total Delinquent Loans
  $ 189,945     $ 115,869     $ 178,746     $ 484,560  
 
EAST WEST BANCORP, INC
DELINQUENT LOANS BY LOAN CATEGORIES AS OF DECEMBER 31, 2008
(in thousands)
(unaudited)
 
Loan Type
 
30-59 Days Delinquent
   
60-89 Days Delinquent
   
90+ Days Delinquent
   
Total Delinquent Loans
 
Real estate - single family
  $ 16,708     $ 6,237     $ 13,519     $ 36,464  
Real estate - multifamily
    9,372       2,382       11,845       23,599  
Real estate - commercial
    21,036       18,364       24,680       64,080  
Real estate - land
    9,335       19,002       66,185       94,522  
Real estate - residential construction
    13,242       9,379       27,052       49,673  
Real estate - commercial construction
    -       -       30,581       30,581  
Commercial
    3,970       13,918       6,570       24,458  
Trade finance
    374       -       65       439  
Consumer
    1,326       252       1,654       3,232  
Total Delinquent Loans
  $ 75,363     $ 69,534     $ 182,151     $ 327,048  
 
19