Delaware
|
95-4703316
|
(State or Other Jurisdiction of Incorporation or Organization)
|
(IRS Employer Identification Number)
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR240.13e-(c))
|
(d) Exhibits | ||
99.1 | Press Release, dated January 21, 2015, issued by East West Bancorp, Inc. |
EAST WEST BANCORP, INC.
|
|||
By:
|
/s/ Irene H. Oh
|
||
Irene H. Oh
|
|||
Executive Vice President and Chief Financial | |||
Officer |
Exhibit Number
|
|
Description
|
99.1
|
Press Release, dated January 21, 2015, issued by East West Bancorp, Inc.
|
East West Bancorp, Inc.
135 N. Los Robles Ave., 7th Fl.
Pasadena, CA 91101
Tel. 626.768.6000
Fax 626.817.8838
|
NEWS RELEASE |
|
·
|
Record Earnings – For the full year 2014, net income totaled a record $342.5 million, an increase of $47.4 million or 16% from $295.0 million in 2013. For the full year 2014, earnings per diluted share available to common stockholders totaled $2.38, an increase of $0.28 or 13% from $2.10 in 2013.
|
·
|
MetroCorp Bancshares – During the year, East West successfully acquired and completed the integration of MetroCorp Bancshares (“MetroCorp”), a $1.6 billion bank headquartered in Houston, Texas. With the MetroCorp acquisition, East West substantially increased its presence in Houston and entered the markets of Dallas and San Diego.
|
·
|
Strong Loan Growth – Total loans receivable (including covered and non-covered loans) increased to a record $21.8 billion as of December 31, 2014, an increase of $3.7 billion or 20% from December 31, 2013. The MetroCorp acquisition earlier in the year added $1.2 billion of loans that were largely comprised of commercial real estate loans. Excluding the impact of the MetroCorp acquisition, the year over year loan growth was $2.5 billion or 14%, largely driven by growth in commercial and industrial loans.
|
·
|
Strong Deposit Growth – Total deposits increased to a record $24.0 billion as of December 31, 2014, an increase of $3.6 billion or 18% from December 31, 2013. Excluding the impact of the $1.3 billion in deposits added from the MetroCorp acquisition in early 2014, the year over year deposit growth was $2.3 billion or 11%, largely driven by growth in core deposits.
|
·
|
Strong Capital Levels – Capital levels for East West remain high. As of December 31, 2014, East West’s Tier 1 risk-based capital and total risk-based ratios were 11.0% and 12.6%, respectively, compared to the well capitalized requirements of 6% and 10%, respectively.
|
·
|
Improvement in Nonperforming Assets – Nonperforming assets as of December 31, 2014 totaled $128.7 million or 0.45% of total assets, an improvement of $1.9 million or eight basis points from $130.6 million or 0.53% as of December 31, 2013.
|
($ in millions, except per share)
|
Quarter Ended
|
|||||||||||
December 31, 2014
|
September 30, 2014
|
December 31, 2013
|
||||||||||
Net income
|
$ | 93.00 | $ | 88.76 | $ | 75.78 | ||||||
Earnings per share (diluted)
|
$ | 0.65 | $ | 0.62 | $ | 0.55 | ||||||
Tangible equity (1) per common share
|
$ | 16.26 | $ | 15.76 | $ | 14.37 | ||||||
Return on average assets
|
1.27 | % | 1.25 | % | 1.21 | % | ||||||
Return on average common equity
|
12.95 | % | 12.80 | % | 12.65 | % | ||||||
Net interest income, adjusted (1)
|
$ | 231.52 | $ | 225.36 | $ | 198.24 | ||||||
Net interest margin, adjusted (1)
|
3.39 | % | 3.41 | % | 3.41 | % | ||||||
Cost of deposits
|
0.28 | % | 0.29 | % | 0.31 | % | ||||||
Efficiency ratio (1)
|
42.13 | % | 51.42 | % | 47.30 | % |
·
|
Strong Fourth Quarter Earnings – For the fourth quarter of 2014, net income increased to $93.0 million or $0.65 per diluted share. Net income increased $4.2 million or 5% from the third quarter of 2014 and $17.2 million or 23% from the fourth quarter of 2013. Earnings per diluted share increased $0.03 or 5% from the third quarter of 2014 and increased $0.10 or 18% from the fourth quarter of 2013.
|
·
|
Strong Loan Growth – Total loans receivable (including covered and non-covered loans) increased to a record $21.8 billion as of December 31, 2014, an increase of $541.6 million or 3% from September 30, 2014. This increase was largely due to increases in non-covered loans comprised of $554.4 million in commercial and industrial loans, $170.3 million in single family loans and $148.3 million in commercial real estate loans, partially offset by decreases in loans held for sale of $193.7 million and covered loans of $162.6 million.
|
·
|
Solid Deposit Growth – Total deposits as of December 31, 2014 were a record $24.0 billion, an increase of $196.5 million or 1% from September 30, 2014. This increase was primarily due to increases in interest-bearing checking deposits which grew $235.6 million or 10% and noninterest-bearing demand deposits which grew $110.6 million or 2%, partially offset by a decrease in money market deposit accounts by $173.6 million or 3%.
|
|
·
|
Federal funds target rate increases by 25 basis points at the end of the third quarter of 2015
|
|
·
|
A net interest margin ranging from 3.35% to 3.40%
|
|
·
|
Loan growth of approximately 8.00%
|
|
·
|
Provision for loan losses of approximately $30 to $40 million
|
|
·
|
Noninterest expense of approximately $540 to $560 million
|
|
·
|
An effective tax rate of 28.50%
|
Quarter Ended
|
||||||||||||
($ in thousands)
|
December 31, 2014
|
September 30, 2014
|
December 31, 2013
|
|||||||||
Branch fees
|
$ | 9,386 | $ | 9,515 | $ | 8,140 | ||||||
Letters of credit fees and foreign exchange income
|
11,229 | 10,298 | 9,746 | |||||||||
Ancillary loan fees
|
2,749 | 2,874 | 2,557 | |||||||||
Other operating income
|
12,229 | 12,949 | 12,474 | |||||||||
Total fees & other operating income
|
$ | 35,593 | $ | 35,636 | $ | 32,917 |
($ in thousands)
|
Quarter Ended
|
|||||||||||
December 31, 2014
|
September 30, 2014
|
December 31, 2013
|
||||||||||
Total noninterest expense
|
$ | 135,246 | $ | 176,979 | $ | 124,384 | ||||||
Less:
|
||||||||||||
Changes in amounts (payable to) reimbursable by the FDIC on covered assets (80% of actual expense amount)*
|
(3,358 | ) | (1,502 | ) | 1,331 | |||||||
Integration and merger related expenses
|
253 | — | 881 | |||||||||
Noninterest expense excluding changes in amounts (payable to) reimbursable by the FDIC and integration and merger related expenses (1)
|
$ | 138,351 | $ | 178,481 | $ | 122,172 |
* |
Pursuant to the shared-loss agreements, the FDIC reimburses the Company 80% of eligible losses with respect to covered assets. The FDIC also shares in 80% of the recoveries or gains with respect to covered assets. During the three months ended December 31, 2014 and September 30, 2014, the Company recorded changes in net payable to the FDIC of $3.4 million and $1.5 million, respectively. The Company recorded changes in net receivable from the FDIC of $1.3 million for the three months ended December 31, 2013.
|
($ in millions)
|
||||||||||||
December 31, 2014
|
Well Capitalized Regulatory
Requirement
|
Total Excess Above
Well Capitalized Requirement
|
||||||||||
Tier 1 leverage capital ratio
|
8.4 | % | 5.0 | % | $ | 980 | ||||||
Tier 1 risk-based capital ratio
|
11.0 | % | 6.0 | % | 1,090 | |||||||
Total risk-based capital ratio
|
12.6 | % | 10.0 | % | 560 | |||||||
Tangible equity to tangible assets ratio (1)
|
8.3 | % | N/A | N/A | ||||||||
Tangible equity to risk-weighted assets ratio (1)
|
10.6 | % | N/A | N/A |
EAST WEST BANCORP, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands, except per share amounts)
|
(unaudited)
|
December 31, 2014
|
September 30, 2014
|
December 31, 2013
|
||||||||||
Assets
|
||||||||||||
Cash and cash equivalents
|
$ | 1,039,885 | $ | 1,115,753 | $ | 895,820 | ||||||
Short-term investments
|
338,714 | 336,419 | 257,473 | |||||||||
Securities purchased under resale agreements
|
1,225,000 | 1,475,000 | 1,300,000 | |||||||||
Investment securities
|
2,626,365 | 2,592,667 | 2,733,797 | |||||||||
Non-covered loans (net of allowance for loan
|
||||||||||||
losses of $258,174, $249,268 and $241,930)
|
20,040,031 | 19,336,766 | 15,617,685 | |||||||||
Covered loans (net of allowance for loan losses of $3,505, $3,910
|
||||||||||||
and $7,745)
|
1,474,189 | 1,636,399 | 2,187,898 | |||||||||
Total loans receivable, net
|
21,514,220 | 20,973,165 | 17,805,583 | |||||||||
Federal Home Loan Bank and Federal Reserve Bank stock
|
85,690 | 89,015 | 110,663 | |||||||||
FDIC indemnification asset, net
|
— | — | 74,708 | |||||||||
Other real estate owned, net
|
27,612 | 33,337 | 18,900 | |||||||||
Other real estate owned covered, net
|
4,499 | 7,433 | 21,373 | |||||||||
Premiums on deposits acquired, net
|
45,309 | 47,792 | 46,920 | |||||||||
Goodwill
|
469,433 | 458,467 | 337,438 | |||||||||
Other assets
|
1,361,322 | 1,352,082 | 1,127,393 | |||||||||
Total assets
|
$ | 28,738,049 | $ | 28,481,130 | $ | 24,730,068 | ||||||
Liabilities and Stockholders' Equity
|
||||||||||||
Deposits
|
$ | 24,008,774 | $ | 23,812,264 | $ | 20,412,918 | ||||||
Federal Home Loan Bank advances
|
317,241 | 316,699 | 315,092 | |||||||||
Securities sold under repurchase agreements
|
795,000 | 805,106 | 995,000 | |||||||||
Long-term debt
|
225,848 | 230,790 | 226,868 | |||||||||
Payable to FDIC, net
|
96,106 | 64,460 | — | |||||||||
Accrued expenses and other liabilities
|
444,512 | 483,718 | 415,965 | |||||||||
Total liabilities
|
25,887,481 | 25,713,037 | 22,365,843 | |||||||||
Stockholders' equity
|
2,850,568 | 2,768,093 | 2,364,225 | |||||||||
Total liabilities and stockholders' equity
|
$ | 28,738,049 | $ | 28,481,130 | $ | 24,730,068 | ||||||
Book value per common share
|
$ | 19.85 | $ | 19.30 | $ | 17.18 | ||||||
Tangible equity (1) per common share
|
$ | 16.26 | $ | 15.76 | $ | 14.37 | ||||||
Number of common shares at period-end
|
143,582 | 143,405 | 137,631 |
(1)
|
See reconciliation of the GAAP financial measure to the non-GAAP financial measure in the tables that follow. |
EAST WEST BANCORP, INC.
|
TOTAL LOANS AND DEPOSIT DETAIL
|
(In thousands)
|
(unaudited)
|
As of December 31, 2014
|
Non-covered
|
Covered
|
Total loans receivable
|
|||||||||
Loans receivable
|
||||||||||||
Real estate - single family
|
$ | 3,642,978 | $ | 224,995 | $ | 3,867,973 | ||||||
Real estate - multifamily
|
1,177,690 | 275,356 | 1,453,046 | |||||||||
Real estate - commercial
|
5,611,485 | 645,984 | 6,257,469 | |||||||||
Real estate - land and construction
|
522,561 | 34,246 | 556,807 | |||||||||
Commercial
|
7,838,094 | 240,037 | 8,078,131 | |||||||||
Consumer
|
1,456,643 | 57,076 | 1,513,719 | |||||||||
Total loans receivable (1), excluding loans held for sale
|
20,249,451 | 1,477,694 | 21,727,145 | |||||||||
Loans held for sale
|
45,950 | — | 45,950 | |||||||||
Total loans receivable
|
20,295,401 | 1,477,694 | 21,773,095 | |||||||||
Unearned fees, premiums and discounts
|
2,804 | — | 2,804 | |||||||||
Allowance for loan losses
|
(258,174 | ) | (3,505 | ) | (261,679 | ) | ||||||
Net loans receivable
|
$ | 20,040,031 | $ | 1,474,189 | $ | 21,514,220 | ||||||
December 31, 2014
|
September 30, 2014
|
December 31, 2013
|
||||||||||
Loans receivable
|
||||||||||||
Real estate - single family
|
$ | 3,642,978 | $ | 3,472,725 | $ | 3,192,875 | ||||||
Real estate - multifamily
|
1,177,690 | 1,176,570 | 992,434 | |||||||||
Real estate - commercial
|
5,611,485 | 5,463,209 | 4,301,030 | |||||||||
Real estate - land and construction
|
522,561 | 486,141 | 284,047 | |||||||||
Commercial
|
7,838,094 | 7,283,658 | 5,360,193 | |||||||||
Consumer
|
1,456,643 | 1,469,253 | 1,547,738 | |||||||||
Total non-covered loans receivable (1), excluding loans held for sale
|
20,249,451 | 19,351,556 | 15,678,317 | |||||||||
Loans held for sale
|
45,950 | 239,649 | 204,970 | |||||||||
Covered loans, net of discount (1)
|
1,477,694 | 1,640,309 | 2,195,643 | |||||||||
Total loans receivable
|
21,773,095 | 21,231,514 | 18,078,930 | |||||||||
Unearned fees, premiums and discounts
|
2,804 | (5,171 | ) | (23,672 | ) | |||||||
Allowance for loan losses on non-covered loans
|
(258,174 | ) | (249,268 | ) | (241,930 | ) | ||||||
Allowance for loan losses on covered loans
|
(3,505 | ) | (3,910 | ) | (7,745 | ) | ||||||
Net loans receivable
|
$ | 21,514,220 | $ | 20,973,165 | $ | 17,805,583 | ||||||
Deposits
|
||||||||||||
Noninterest-bearing demand
|
$ | 7,381,030 | $ | 7,270,385 | $ | 5,821,899 | ||||||
Interest-bearing checking
|
2,545,618 | 2,309,983 | 1,749,479 | |||||||||
Money market
|
6,318,120 | 6,491,736 | 5,653,412 | |||||||||
Savings
|
1,651,267 | 1,604,290 | 1,363,780 | |||||||||
Total core deposits
|
17,896,035 | 17,676,394 | 14,588,570 | |||||||||
Time deposits
|
6,112,739 | 6,135,870 | 5,824,348 | |||||||||
Total deposits
|
$ | 24,008,774 | $ | 23,812,264 | $ | 20,412,918 |
(1) |
Includes loans net of ASC 310-30 discount.
|
EAST WEST BANCORP, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
(In thousands, except per share amounts)
|
(unaudited)
|
Quarter Ended
|
||||||||||||
December 31, 2014
|
September 30, 2014
|
December 31, 2013
|
||||||||||
Interest and dividend income
|
$ | 287,135 | $ | 285,948 | $ | 293,203 | ||||||
Interest expense
|
(27,647 | ) | (28,974 | ) | (28,195 | ) | ||||||
Net interest income before provision for loan losses
|
259,488 | 256,974 | 265,008 | |||||||||
Provision for loan losses on non-covered loans
|
(19,671 | ) | (7,556 | ) | (6,286 | ) | ||||||
Reversal of (provision for) loan losses on covered loans
|
671 | (7,669 | ) | 820 | ||||||||
Net interest income after provision for loan losses
|
240,488 | 241,749 | 259,542 | |||||||||
Noninterest income (loss)
|
7,805 | 10,342 | (36,594 | ) | ||||||||
Noninterest expense
|
(135,246 | ) | (176,979 | ) | (124,384 | ) | ||||||
Income before taxes
|
113,047 | 75,112 | 98,564 | |||||||||
Income tax (provision) benefit
|
(20,049 | ) | 13,644 | (22,782 | ) | |||||||
Net income
|
$ | 92,998 | $ | 88,756 | $ | 75,782 | ||||||
Earnings per share available to common stockholders
|
||||||||||||
- Basic
|
$ | 0.65 | $ | 0.62 | $ | 0.55 | ||||||
- Diluted
|
$ | 0.65 | $ | 0.62 | $ | 0.55 | ||||||
Weighted average number of shares outstanding
|
||||||||||||
- Basic
|
143,432 | 143,210 | 137,157 | |||||||||
- Diluted
|
144,116 | 143,810 | 137,688 | |||||||||
Quarter Ended
|
||||||||||||
December 31, 2014
|
September 30, 2014
|
December 31, 2013
|
||||||||||
Noninterest income (loss):
|
||||||||||||
Branch fees
|
$ | 9,386 | $ | 9,515 | $ | 8,140 | ||||||
Changes in FDIC indemnification asset and receivable/payable
|
(50,578 | ) | (39,647 | ) | (74,325 | ) | ||||||
Net gains on sales of loans
|
18,417 | 7,726 | 4,065 | |||||||||
Letters of credit fees and foreign exchange income
|
11,229 | 10,298 | 9,746 | |||||||||
Net gains on sales of investment securities
|
4,248 | 2,514 | 83 | |||||||||
Ancillary loan fees
|
2,749 | 2,874 | 2,557 | |||||||||
Dividend and other investment income
|
125 | 4,113 | 666 | |||||||||
Other operating income
|
12,229 | 12,949 | 12,474 | |||||||||
Total noninterest income (loss)
|
$ | 7,805 | $ | 10,342 | $ | (36,594 | ) | |||||
Noninterest expense:
|
||||||||||||
Compensation and employee benefits
|
$ | 59,369 | $ | 58,111 | $ | 46,667 | ||||||
Occupancy and equipment expense
|
15,588 | 15,842 | 14,430 | |||||||||
Loan related expenses
|
834 | 1,127 | 2,611 | |||||||||
Other real estate owned (income) expense
|
(4,286 | ) | (1,422 | ) | 887 | |||||||
Deposit insurance premiums and regulatory assessments
|
5,161 | 5,247 | 4,702 | |||||||||
Legal expense
|
7,615 | 32,500 | 12,806 | |||||||||
Amortization of premiums on deposits acquired
|
2,483 | 2,597 | 2,234 | |||||||||
Data processing
|
2,537 | 2,211 | 2,299 | |||||||||
Consulting expense
|
2,152 | 2,982 | 3,725 | |||||||||
Amortization of investments in affordable housing
|
||||||||||||
partnerships and other tax credit investments
|
19,909 | 36,936 | 13,228 | |||||||||
Other operating expense
|
23,884 | 20,848 | 20,795 | |||||||||
Total noninterest expense
|
$ | 135,246 | $ | 176,979 | $ | 124,384 |
EAST WEST BANCORP, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
(In thousands, except per share amounts)
|
(unaudited)
|
Year Ended
|
||||||||
December 31, 2014
|
December 31, 2013
|
|||||||
Interest and dividend income
|
$ | 1,153,698 | $ | 1,068,685 | ||||
Interest expense
|
(112,820 | ) | (112,492 | ) | ||||
Net interest income before provision for loan losses
|
1,040,878 | 956,193 | ||||||
Provision for loan losses on non-covered loans
|
(44,125 | ) | (18,336 | ) | ||||
Provision for loan losses on covered loans
|
(5,033 | ) | (4,028 | ) | ||||
Net interest income after provision for loan losses
|
991,720 | 933,829 | ||||||
Noninterest loss
|
(11,714 | ) | (92,468 | ) | ||||
Noninterest expense
|
(564,551 | ) | (415,511 | ) | ||||
Income before taxes
|
415,455 | 425,850 | ||||||
Provision for income taxes
|
(72,972 | ) | (130,805 | ) | ||||
Net income
|
342,483 | 295,045 | ||||||
Preferred stock dividend
|
— | (3,428 | ) | |||||
Net income available to common stockholders
|
$ | 342,483 | $ | 291,617 | ||||
Earnings per share available to common stockholders
|
||||||||
- Basic
|
$ | 2.39 | $ | 2.11 | ||||
- Diluted
|
$ | 2.38 | $ | 2.10 | ||||
Weighted average number of shares outstanding
|
||||||||
- Basic
|
142,952 | 137,342 | ||||||
- Diluted
|
143,563 | 139,574 | ||||||
Year Ended
|
||||||||
December 31, 2014
|
December 31, 2013
|
|||||||
Noninterest income (loss):
|
||||||||
Branch fees
|
$ | 37,866 | $ | 32,036 | ||||
Changes in FDIC indemnification asset and receivable/payable
|
(201,417 | ) | (228,585 | ) | ||||
Net gains on sales of loans
|
39,132 | 7,750 | ||||||
Letters of credit fees and foreign exchange income
|
37,323 | 34,774 | ||||||
Net gains on sales of investment securities
|
10,851 | 12,089 | ||||||
Ancillary loan fees
|
10,616 | 9,368 | ||||||
Dividend and other investment income
|
5,464 | 993 | ||||||
Other operating income
|
48,451 | 39,107 | ||||||
Total noninterest loss
|
$ | (11,714 | ) | $ | (92,468 | ) | ||
Noninterest expense:
|
||||||||
Compensation and employee benefits
|
$ | 231,838 | $ | 175,906 | ||||
Occupancy and equipment expense
|
63,815 | 56,641 | ||||||
Loan related expenses
|
3,438 | 12,520 | ||||||
Other real estate owned income
|
(3,591 | ) | (1,128 | ) | ||||
Deposit insurance premiums and regulatory assessments
|
21,922 | 16,550 | ||||||
Legal expense
|
53,018 | 31,718 | ||||||
Amortization of premiums on deposits acquired
|
10,204 | 9,365 | ||||||
Data processing
|
15,888 | 9,095 | ||||||
Consulting expense
|
8,511 | 6,446 | ||||||
Amortization of investments in affordable housing
|
||||||||
partnerships and other tax credit investments
|
75,660 | 27,268 | ||||||
Other operating expense
|
83,848 | 71,130 | ||||||
Total noninterest expense
|
$ | 564,551 | $ | 415,511 |
EAST WEST BANCORP, INC.
|
SELECTED FINANCIAL INFORMATION
|
(In thousands)
|
(unaudited)
|
Average Balances
|
Quarter Ended
|
|||||||||||
December 31, 2014
|
September 30, 2014
|
December 31, 2013
|
||||||||||
Non-covered loans
|
||||||||||||
Real estate - single family
|
$ | 3,549,312 | $ | 3,392,077 | $ | 3,141,472 | ||||||
Real estate - multifamily
|
1,173,926 | 1,157,088 | 989,789 | |||||||||
Real estate - commercial
|
5,515,047 | 5,378,361 | 4,183,311 | |||||||||
Real estate - land and construction
|
493,624 | 473,225 | 259,497 | |||||||||
Commercial
|
7,503,953 | 6,892,203 | 5,014,530 | |||||||||
Consumer
|
1,504,588 | 1,710,258 | 1,691,334 | |||||||||
Total non-covered loans
|
19,740,450 | 19,003,212 | 15,279,933 | |||||||||
Covered loans
|
1,562,483 | 1,711,498 | 2,262,218 | |||||||||
Total loans receivable
|
21,302,933 | 20,714,710 | 17,542,151 | |||||||||
Investment securities
|
2,592,325 | 2,504,603 | 2,937,089 | |||||||||
Interest-earning assets
|
27,057,843 | 26,241,447 | 23,082,437 | |||||||||
Total assets
|
29,019,702 | 28,091,499 | 24,762,814 | |||||||||
Deposits
|
||||||||||||
Noninterest-bearing demand
|
$ | 7,636,630 | $ | 7,008,748 | $ | 5,922,881 | ||||||
Interest-bearing checking
|
2,446,895 | 2,285,227 | 1,656,002 | |||||||||
Money market
|
6,395,838 | 6,066,941 | 5,417,034 | |||||||||
Savings
|
1,668,101 | 1,808,212 | 1,651,067 | |||||||||
Total core deposits
|
18,147,464 | 17,169,128 | 14,646,984 | |||||||||
Time deposits
|
6,151,558 | 6,172,866 | 5,870,512 | |||||||||
Total deposits
|
24,299,022 | 23,341,994 | 20,517,496 | |||||||||
Interest-bearing liabilities
|
18,015,306 | 17,891,095 | 16,116,152 | |||||||||
Stockholders' equity
|
2,850,178 | 2,750,509 | 2,376,013 | |||||||||
Selected Ratios
|
Quarter Ended
|
|||||||||||
December 31, 2014
|
September 30, 2014
|
December 31, 2013
|
||||||||||
For The Period
|
||||||||||||
Return on average assets
|
1.27 | % | 1.25 | % | 1.21 | % | ||||||
Return on average common equity
|
12.95 | % | 12.80 | % | 12.65 | % | ||||||
Interest rate spread
|
3.60 | % | 3.68 | % | 4.35 | % | ||||||
Net interest margin
|
3.80 | % | 3.89 | % | 4.55 | % | ||||||
Yield on earning assets
|
4.21 | % | 4.32 | % | 5.04 | % | ||||||
Cost of deposits
|
0.28 | % | 0.29 | % | 0.31 | % | ||||||
Cost of funds
|
0.43 | % | 0.46 | % | 0.51 | % | ||||||
Noninterest expense(1)(3)/average assets
|
1.54 | % | 1.94 | % | 1.73 | % | ||||||
Efficiency ratio (2)(3)
|
42.13 | % | 51.42 | % | 47.30 | % |
(1) |
Noninterest expense excludes the amortization of premiums on deposits acquired, amortization of investments in affordable housing partnerships and other tax credit investments, and integration and merger related expenses (where applicable).
|
(2) |
Represents noninterest expense, excluding the amortization of premiums on deposits acquired, amortization of investments in affordable housing partnerships and other tax credit investments, and integration and merger related expenses (where applicable), divided by the aggregate of net interest income before provision for loan losses and noninterest income (loss).
|
(3) |
See reconciliation of the GAAP financial measure to the non-GAAP financial measure in the tables that follow.
|
EAST WEST BANCORP, INC.
|
SELECTED FINANCIAL INFORMATION
|
(In thousands)
|
(unaudited)
|
Average Balances
|
Year Ended
|
|||||||
December 31, 2014
|
December 31, 2013
|
|||||||
Non-covered loans
|
||||||||
Real estate - single family
|
$ | 3,362,225 | $ | 2,655,761 | ||||
Real estate - multifamily
|
1,127,496 | 942,430 | ||||||
Real estate - commercial
|
5,267,986 | 3,926,050 | ||||||
Real estate - land and construction
|
439,942 | 241,779 | ||||||
Commercial
|
6,641,305 | 4,628,713 | ||||||
Consumer
|
1,703,522 | 1,340,026 | ||||||
Total non-covered loans
|
18,542,476 | 13,734,759 | ||||||
Covered loans
|
1,809,342 | 2,541,238 | ||||||
Total loans receivable
|
20,351,818 | 16,275,997 | ||||||
Investment securities
|
2,540,228 | 2,729,019 | ||||||
Interest-earning assets
|
25,798,578 | 21,827,657 | ||||||
Total assets
|
27,651,797 | 23,560,692 | ||||||
Deposits
|
||||||||
Noninterest-bearing demand
|
$ | 6,834,871 | $ | 5,179,687 | ||||
Interest-bearing checking
|
2,179,428 | 1,487,844 | ||||||
Money market
|
5,958,461 | 5,217,666 | ||||||
Savings
|
1,748,465 | 1,546,188 | ||||||
Total core deposits
|
16,721,225 | 13,431,385 | ||||||
Time deposits
|
6,218,745 | 5,964,017 | ||||||
Total deposits
|
22,939,970 | 19,395,402 | ||||||
Interest-bearing liabilities
|
17,648,639 | 15,693,427 | ||||||
Stockholders' equity
|
2,717,000 | 2,344,307 | ||||||
Selected Ratios
|
Year Ended
|
|||||||
December 31, 2014
|
December 31, 2013
|
|||||||
For The Period
|
||||||||
Return on average assets
|
1.24 | % | 1.25 | % | ||||
Return on average common equity
|
12.61 | % | 12.59 | % | ||||
Interest rate spread
|
3.83 | % | 4.18 | % | ||||
Net interest margin
|
4.03 | % | 4.38 | % | ||||
Yield on earning assets
|
4.47 | % | 4.90 | % | ||||
Cost of deposits
|
0.29 | % | 0.33 | % | ||||
Cost of funds
|
0.46 | % | 0.54 | % | ||||
Noninterest expense(1)(3)/average assets
|
1.69 | % | 1.60 | % | ||||
Efficiency ratio (2)(3)
|
45.28 | % | 43.76 | % |
(1) |
Noninterest expense excludes the amortization of premiums on deposits acquired, amortization of investments in affordable housing partnerships and other tax credit investments, and integration and merger related expenses (where applicable).
|
(2) |
Represents noninterest expense, excluding the amortization of premiums on deposits acquired, amortization of investments in affordable housing partnerships and other tax credit investments, and integration and merger related expenses (where applicable), divided by the aggregate of net interest income before provision for loan losses and noninterest income (loss).
|
(3) |
See reconciliation of the GAAP financial measure to the non-GAAP financial measure in the tables that follow.
|
EAST WEST BANCORP, INC.
|
QUARTER TO DATE AVERAGE BALANCES, YIELDS AND RATES PAID
|
(In thousands)
|
(unaudited)
|
Quarter Ended
|
||||||||||||||||||||||||
December 31, 2014
|
December 31, 2013
|
|||||||||||||||||||||||
Average
|
Average
|
|||||||||||||||||||||||
Volume
|
Interest
|
Yield (1)
|
Volume
|
Interest
|
Yield (1)
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Due from banks and short-term investments
|
$ | 1,678,398 | $ | 5,753 | 1.36 | % | $ | 1,086,195 | $ | 4,496 | 1.64 | % | ||||||||||||
Securities purchased under resale agreements
|
1,396,739 | 5,567 | 1.58 | % | 1,400,000 | 5,104 | 1.45 | % | ||||||||||||||||
Investment securities available-for-sale
|
2,592,325 | 8,554 | 1.31 | % | 2,937,089 | 13,003 | 1.76 | % | ||||||||||||||||
Non-covered loans
|
19,740,450 | 208,706 | 4.19 | % | 15,279,933 | 161,118 | 4.18 | % | ||||||||||||||||
Covered loans
|
1,562,483 | 57,186 | 14.52 | % | 2,262,218 | 107,722 | 18.89 | % | ||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stock
|
87,448 | 1,369 | 6.21 | % | 117,002 | 1,760 | 5.97 | % | ||||||||||||||||
Total interest-earning assets
|
27,057,843 | 287,135 | 4.21 | % | 23,082,437 | 293,203 | 5.04 | % | ||||||||||||||||
Noninterest-earning assets:
|
||||||||||||||||||||||||
Cash and cash equivalents
|
358,982 | 336,365 | ||||||||||||||||||||||
Allowance for loan losses
|
(256,928 | ) | (246,518 | ) | ||||||||||||||||||||
Other assets
|
1,859,805 | 1,590,530 | ||||||||||||||||||||||
Total assets
|
$ | 29,019,702 | $ | 24,762,814 | ||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Checking accounts
|
$ | 2,446,895 | $ | 1,734 | 0.28 | % | $ | 1,656,002 | $ | 960 | 0.23 | % | ||||||||||||
Money market accounts
|
6,395,838 | 4,267 | 0.26 | % | 5,417,034 | 3,704 | 0.27 | % | ||||||||||||||||
Savings deposits
|
1,668,101 | 796 | 0.19 | % | 1,651,067 | 720 | 0.17 | % | ||||||||||||||||
Time deposits
|
6,151,558 | 10,080 | 0.65 | % | 5,870,512 | 10,421 | 0.70 | % | ||||||||||||||||
Federal funds purchased and other short-term borrowings
|
310 | — | — | 619 | — | — | ||||||||||||||||||
Federal Home Loan Bank advances
|
316,886 | 1,029 | 1.29 | % | 322,351 | 1,038 | 1.28 | % | ||||||||||||||||
Securities sold under repurchase agreements
|
804,961 | 8,550 | 4.21 | % | 995,000 | 10,312 | 4.11 | % | ||||||||||||||||
Long-term debt
|
230,757 | 1,191 | 2.05 | % | 203,567 | 1,040 | 2.03 | % | ||||||||||||||||
Total interest-bearing liabilities
|
18,015,306 | 27,647 | 0.61 | % | 16,116,152 | 28,195 | 0.69 | % | ||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Demand deposits
|
7,636,630 | 5,922,881 | ||||||||||||||||||||||
Other liabilities
|
517,588 | 347,768 | ||||||||||||||||||||||
Stockholders' equity
|
2,850,178 | 2,376,013 | ||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$ | 29,019,702 | $ | 24,762,814 | ||||||||||||||||||||
Interest rate spread
|
3.60 | % | 4.35 | % | ||||||||||||||||||||
Net interest income and net interest margin
|
$ | 259,488 | 3.80 | % | $ | 265,008 | 4.55 | % | ||||||||||||||||
Net interest income and net interest margin, adjusted (2)(3)
|
$ | 231,523 | 3.39 | % | $ | 198,239 | 3.41 | % |
(1) |
Annualized.
|
(2) |
Amounts considering the net impact of covered loan activity and amortization of the FDIC indemnification asset of $28.0 million and $66.8 million for the three months ended December 31, 2014 and 2013, respectively.
|
(3) |
See reconciliation of the GAAP financial measure to the non-GAAP financial measure in the tables that follow.
|
EAST WEST BANCORP, INC.
|
YEAR TO DATE AVERAGE BALANCES, YIELDS AND RATES PAID
|
(In thousands)
|
(unaudited)
|
Year To Date
|
||||||||||||||||||||||||
December 31, 2014
|
December 31, 2013
|
|||||||||||||||||||||||
Average
|
Average
|
|||||||||||||||||||||||
Volume
|
Interest
|
Yield
|
Volume
|
Interest
|
Yield
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Due from banks and short-term investments
|
$ | 1,469,200 | $ | 23,214 | 1.58 | % | $ | 1,184,709 | $ | 17,340 | 1.46 | % | ||||||||||||
Securities purchased under resale agreements
|
1,340,411 | 20,323 | 1.52 | % | 1,503,014 | 21,236 | 1.41 | % | ||||||||||||||||
Investment securities available-for-sale
|
2,540,228 | 44,684 | 1.76 | % | 2,729,019 | 43,846 | 1.61 | % | ||||||||||||||||
Non-covered loans
|
18,542,476 | 782,135 | 4.22 | % | 13,734,759 | 584,164 | 4.25 | % | ||||||||||||||||
Covered loans
|
1,809,342 | 277,070 | 15.31 | % | 2,541,238 | 395,230 | 15.55 | % | ||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stock
|
96,921 | 6,272 | 6.47 | % | 134,918 | 6,869 | 5.09 | % | ||||||||||||||||
Total interest-earning assets
|
25,798,578 | 1,153,698 | 4.47 | % | 21,827,657 | 1,068,685 | 4.90 | % | ||||||||||||||||
Noninterest-earning assets:
|
||||||||||||||||||||||||
Cash and cash equivalents
|
322,581 | 306,551 | ||||||||||||||||||||||
Allowance for loan losses
|
(254,616 | ) | (241,049 | ) | ||||||||||||||||||||
Other assets
|
1,785,254 | 1,667,533 | ||||||||||||||||||||||
Total assets
|
$ | 27,651,797 | $ | 23,560,692 | ||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Checking accounts
|
$ | 2,179,428 | $ | 5,431 | 0.25 | % | $ | 1,487,844 | $ | 3,556 | 0.24 | % | ||||||||||||
Money market accounts
|
5,958,461 | 16,001 | 0.27 | % | 5,217,666 | 15,019 | 0.29 | % | ||||||||||||||||
Savings deposits
|
1,748,465 | 2,971 | 0.17 | % | 1,546,188 | 2,961 | 0.19 | % | ||||||||||||||||
Time deposits
|
6,218,745 | 41,083 | 0.66 | % | 5,964,017 | 41,960 | 0.70 | % | ||||||||||||||||
Federal funds purchased and other short-term borrowings
|
888 | — | — | 330 | 6 | 1.82 | % | |||||||||||||||||
Federal Home Loan Bank advances
|
349,767 | 4,116 | 1.18 | % | 315,867 | 4,173 | 1.32 | % | ||||||||||||||||
Securities sold under repurchase agreements
|
955,147 | 38,395 | 4.02 | % | 995,000 | 41,381 | 4.16 | % | ||||||||||||||||
Long-term debt
|
237,738 | 4,823 | 2.03 | % | 166,515 | 3,436 | 2.06 | % | ||||||||||||||||
Total interest-bearing liabilities
|
17,648,639 | 112,820 | 0.64 | % | 15,693,427 | 112,492 | 0.72 | % | ||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Demand deposits
|
6,834,871 | 5,179,687 | ||||||||||||||||||||||
Other liabilities
|
451,287 | 343,271 | ||||||||||||||||||||||
Stockholders' equity
|
2,717,000 | 2,344,307 | ||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$ | 27,651,797 | $ | 23,560,692 | ||||||||||||||||||||
Interest rate spread
|
3.83 | % | 4.18 | % | ||||||||||||||||||||
Net interest income and net interest margin
|
$ | 1,040,878 | 4.03 | % | $ | 956,193 | 4.38 | % | ||||||||||||||||
Net interest income and net interest margin, adjusted (1)(2)
|
$ | 884,200 | 3.43 | % | $ | 767,388 | 3.52 | % |
(1) |
Amounts considering the net impact of covered loan activity and amortization of the FDIC indemnification asset of $156.7 million and $188.8 million for the years ended December 31, 2014 and 2013, respectively.
|
(2) |
See reconciliation of the GAAP financial measure to the non-GAAP financial measure in the tables that follow.
|
EAST WEST BANCORP, INC.
|
QUARTERLY ALLOWANCE FOR LOAN LOSSES
|
(In thousands)
|
(unaudited)
|
Quarter Ended
|
||||||||||||||||||||
12/31/2014
|
9/30/2014
|
6/30/2014
|
3/31/2014
|
12/31/2013
|
||||||||||||||||
NON-COVERED LOANS
|
||||||||||||||||||||
Allowance for non-covered loans, beginning of period
|
$ | 249,268 | $ | 246,468 | $ | 245,618 | $ | 241,930 | $ | 234,236 | ||||||||||
(Reversal of) provision for unfunded loan commitments and letters of credit
|
(1,154 | ) | 623 | (829 | ) | (215 | ) | 140 | ||||||||||||
Provision for loan losses on non-covered loans
|
19,671 | 7,556 | 8,944 | 7,954 | 6,286 | |||||||||||||||
Net Charge-offs (Recoveries):
|
||||||||||||||||||||
Residential
|
(1,364 | ) | (87 | ) | (2 | ) | 146 | 797 | ||||||||||||
Commercial real estate (1)
|
(205 | ) | 1,263 | 763 | (509 | ) | (2,158 | ) | ||||||||||||
Commercial
|
5,965 | 4,072 | 6,506 | 4,414 | (1,072 | ) | ||||||||||||||
Consumer
|
5,215 | 131 | (2 | ) | — | 1,165 | ||||||||||||||
Total net charge-offs (recoveries)
|
9,611 | 5,379 | 7,265 | 4,051 | (1,268 | ) | ||||||||||||||
Allowance for non-covered loans, end of period (2)
|
$ | 258,174 | $ | 249,268 | $ | 246,468 | $ | 245,618 | $ | 241,930 | ||||||||||
COVERED LOANS
|
||||||||||||||||||||
Allowance for covered loans not accounted under ASC 310-30, beginning of period (3)
|
$ | 3,486 | $ | 3,692 | $ | 4,316 | $ | 5,476 | $ | 6,328 | ||||||||||
(Reversal of) provision for loan losses on covered loans not accounted under ASC 310-30
|
(671 | ) | 8,433 | 70 | (954 | ) | (752 | ) | ||||||||||||
Total net (recoveries)charge-offs
|
(266 | ) | 8,639 | 694 | 206 | 100 | ||||||||||||||
Allowance for covered loans not accounted under ASC 310-30, end of period (3)
|
$ | 3,081 | $ | 3,486 | $ | 3,692 | $ | 4,316 | $ | 5,476 | ||||||||||
Allowance for covered loans accounted under ASC 310-30, beginning of period (4)
|
$ | 424 | $ | 1,188 | $ | 2,202 | $ | 2,269 | $ | 2,337 | ||||||||||
Reversal of loan losses on covered loans accounted under ASC 310-30
|
— | (764 | ) | (1,014 | ) | (67 | ) | (68 | ) | |||||||||||
Allowance for covered loans accounted under ASC 310-30, end of period (4)
|
$ | 424 | $ | 424 | $ | 1,188 | $ | 2,202 | $ | 2,269 | ||||||||||
Total allowance for covered loans, end of period
|
$ | 3,505 | $ | 3,910 | $ | 4,880 | $ | 6,518 | $ | 7,745 | ||||||||||
UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT
|
||||||||||||||||||||
Allowance balance, beginning of period
|
$ | 11,558 | $ | 12,326 | $ | 11,497 | $ | 11,282 | $ | 11,469 | ||||||||||
Provision for (reversal of) unfunded loan commitments and letters of credit
|
1,154 | (623 | ) | 829 | 215 | (140 | ) | |||||||||||||
Total charge-offs (recoveries)
|
— | 145 | — | — | (47 | ) | ||||||||||||||
Allowance balance, end of period
|
$ | 12,712 | $ | 11,558 | $ | 12,326 | $ | 11,497 | $ | 11,282 | ||||||||||
GRAND TOTAL, END OF PERIOD
|
$ | 274,391 | $ | 264,736 | $ | 263,674 | $ | 263,633 | $ | 260,957 |
(1) |
Includes a charge-off of $523 thousand related to a non-covered loan accounted for under ASC 310-30 for the three months ended June 30, 2014.
|
(2) |
Includes an allowance of $290 thousand, $290 thousand, $370 thousand, $0 and $0 related to non-covered loans accounted for under ASC 310-30 as of December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively.
|
(3) |
This allowance is related to subsequent drawdowns on commitments that were in existence as of the acquisition dates of WFIB and UCB and are covered under the shared-loss agreements with the FDIC. Allowance on these subsequent drawdowns is included as part of the allowance for loan losses.
|
(4) |
This allowance is related to loans covered under the shared-loss agreements with the FDIC, accounted for under ASC 310-30.
|
EAST WEST BANCORP, INC.
|
QUARTERLY CREDIT QUALITY ANALYSIS
|
(In thousands)
|
(unaudited)
|
Nonperforming Assets, Excluding Covered Assets
|
||||||||||||
12/31/2014
|
9/30/2014
|
12/31/2013
|
||||||||||
Nonaccrual Loan Type
|
||||||||||||
Real estate - single family
|
$ | 7,830 | $ | 10,738 | $ | 11,218 | ||||||
Real estate - multifamily
|
20,796 | 24,800 | 27,633 | |||||||||
Real estate - commercial
|
38,685 | 48,777 | 36,473 | |||||||||
Real estate - land and construction
|
9,644 | 10,667 | 10,376 | |||||||||
Commercial
|
20,276 | 26,920 | 22,832 | |||||||||
Consumer
|
3,812 | 3,818 | 3,119 | |||||||||
Total non-covered nonaccrual loans
|
101,043 | 125,720 | 111,651 | |||||||||
Other real estate owned, net
|
27,612 | 33,337 | 18,900 | |||||||||
Total nonperforming assets, excluding covered assets
|
$ | 128,655 | $ | 159,057 | $ | 130,551 | ||||||
Nonperforming assets to total assets (1)
|
0.45 | % | 0.56 | % | 0.53 | % | ||||||
Allowance for loan losses on non-covered loans to total gross non-covered
|
||||||||||||
loans held for investment at end of period
|
1.27 | % | 1.29 | % | 1.54 | % | ||||||
Allowance for loan losses on non-covered loans and unfunded loan
|
||||||||||||
commitments to total gross non-covered loans held for investment at end of period
|
1.34 | % | 1.35 | % | 1.62 | % | ||||||
Allowance on non-covered loans to non-covered nonaccrual loans at end of period
|
255.51 | % | 198.27 | % | 216.68 | % | ||||||
Nonaccrual loans to total loans (2)
|
0.46 | % | 0.59 | % | 0.62 | % | ||||||
Net charge-offs (recoveries) on non-covered loans to average total non-covered loans (3)
|
0.19 | % | 0.11 | % | (0.03 | )% |
(1) |
Nonperforming assets exclude covered loans and covered REOs. Total assets include covered assets.
|
(2) |
Nonaccrual loans exclude covered loans. Total loans include covered loans.
|
(3) |
Annualized.
|
EAST WEST BANCORP, INC.
|
GAAP TO NON-GAAP RECONCILIATION
|
(In thousands)
|
(unaudited)
|
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance. The tangible equity to risk-weighted assets and tangible equity to tangible assets ratios are non-GAAP disclosures. Given that the use of such ratios are more prevalent in the banking industry and with banking regulators and analysts, the Company has included the tangible equity to risk-weighted assets and tangible equity to tangible assets ratios.
|
||||
As of
|
||||
December 31, 2014
|
||||
Stockholders' equity
|
$ | 2,850,568 | ||
Less:
|
||||
Goodwill and other intangible assets
|
(515,478 | ) | ||
Tangible equity
|
$ | 2,335,090 | ||
Risk-weighted assets
|
$ | 21,931,484 | ||
Tangible equity to risk-weighted assets ratio
|
10.6 | % | ||
As of
|
||||
December 31, 2014
|
||||
Total assets
|
$ | 28,738,049 | ||
Less:
|
||||
Goodwill and other intangible assets
|
(515,478 | ) | ||
Tangible assets
|
$ | 28,222,571 | ||
Tangible equity to tangible assets ratio
|
8.3 | % |
EAST WEST BANCORP, INC.
|
GAAP TO NON-GAAP RECONCILIATION
|
(In thousands)
|
(unaudited)
|
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance. The efficiency ratio represents noninterest expense, excluding the amortization of premiums on deposits acquired, amortization of investments in affordable housing partnerships and other tax credit investments, and integration and merger related expenses, divided by the aggregate of net interest income before provision for loan losses and noninterest income (loss). The Company believes that presenting the efficiency ratio provides clarity to the users of financial statements regarding the ongoing performance of the Company and allows comparability to prior periods.
|
||||||||||||
Quarter Ended
|
||||||||||||
December 31, 2014
|
September 30, 2014
|
December 31, 2013
|
||||||||||
Total noninterest expense
|
$ | 135,246 | $ | 176,979 | $ | 124,384 | ||||||
Less:
|
||||||||||||
Integration and merger related expenses
|
(253 | ) | — | (881 | ) | |||||||
Amortization of premiums on deposits acquired
|
(2,483 | ) | (2,597 | ) | (2,234 | ) | ||||||
Amortization of investments in affordable housing partnerships and other tax credit investments
|
(19,909 | ) | (36,936 | ) | (13,228 | ) | ||||||
Noninterest expense, as adjusted
|
$ | 112,601 | $ | 137,446 | $ | 108,041 | ||||||
Net interest income before provision for loan losses
|
$ | 259,488 | $ | 256,974 | $ | 265,008 | ||||||
Noninterest income (loss)
|
7,805 | 10,342 | (36,594 | ) | ||||||||
Net interest income and noninterest income (loss)
|
$ | 267,293 | $ | 267,316 | $ | 228,414 | ||||||
Efficiency Ratio
|
42.13 | % | 51.42 | % | 47.30 | % | ||||||
Year Ended
|
||||||||||||
December 31, 2014
|
December 31, 2013
|
|||||||||||
Total noninterest expense
|
$ | 564,551 | $ | 415,511 | ||||||||
Less:
|
||||||||||||
Integration and merger related expenses
|
(12,640 | ) | (881 | ) | ||||||||
Amortization of premiums on deposits acquired
|
(10,204 | ) | (9,365 | ) | ||||||||
Amortization of investments in affordable housing partnerships and other tax credit investments
|
(75,660 | ) | (27,268 | ) | ||||||||
Noninterest expense, as adjusted
|
$ | 466,047 | $ | 377,997 | ||||||||
Net interest income before provision for loan losses
|
$ | 1,040,878 | $ | 956,193 | ||||||||
Noninterest loss
|
(11,714 | ) | (92,468 | ) | ||||||||
Net interest income and noninterest loss
|
$ | 1,029,164 | $ | 863,725 | ||||||||
Efficiency Ratio
|
45.28 | % | 43.76 | % |
EAST WEST BANCORP, INC.
|
GAAP TO NON-GAAP RECONCILIATION
|
(In thousands)
|
(unaudited)
|
Noninterest expense excluding changes in amounts (payable to) reimbursable by the FDIC and integration and merger related expenses is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance. Changes in amounts (payable to) reimbursable by the FDIC, and integration and merger related expenses are non-core in nature. The Company believes that presenting noninterest expense excluding such non-core items provides clarity to the users of financial statements regarding core noninterest expense amounts.
|
||||||||||||
Quarter Ended
|
||||||||||||
December 31, 2014
|
September 30, 2014
|
December 31, 2013
|
||||||||||
Total noninterest expense
|
$ | 135,246 | $ | 176,979 | $ | 124,384 | ||||||
Less:
|
||||||||||||
Changes in amounts (payable to) reimbursable by the FDIC on covered assets (80% of actual expense amount) (1)
|
(3,358 | ) | (1,502 | ) | 1,331 | |||||||
Integration and merger related expenses
|
253 | — | 881 | |||||||||
Noninterest expense excluding changes in amounts (payable to) reimbursable by the FDIC and integration and merger related expenses
|
$ | 138,351 | $ | 178,481 | $ | 122,172 | ||||||
Year Ended
|
||||||||||||
December 31, 2014
|
December 31, 2013
|
|||||||||||
Total noninterest expense
|
$ | 564,551 | $ | 415,511 | ||||||||
Less:
|
||||||||||||
Changes in amounts (payable to) reimbursable by the FDIC on covered assets (80% of actual expense amount) (1)
|
(4,425 | ) | 6,738 | |||||||||
Integration and merger related expenses
|
12,640 | 881 | ||||||||||
Noninterest expense excluding changes in amounts (payable to) reimbursable by the FDIC and integration and merger related expenses
|
$ | 556,336 | $ | 407,892 |
(1) |
Pursuant to the shared-loss agreements, the FDIC reimburses the Company 80% of eligible losses with respect to covered assets. The FDIC also shares in 80% of the recoveries or gains with respect to covered assets. During the three months ended December 31, 2014 and September 30, 2014, the Company recorded changes in net payable to the FDIC of $3.4 million and $1.5 million, respectively. The Company recorded changes in net receivable from the FDIC of $1.3 million for the three months ended December 31, 2013. During the years ended December 31, 2014 and 2013, the Company recorded changes in net payable to the FDIC of $4.4 million and changes in net receivable from the FDIC of $6.7 million, respectively.
|
EAST WEST BANCORP, INC.
|
GAAP TO NON-GAAP RECONCILIATION
|
(In thousands)
|
(unaudited)
|
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance. The net interest margin includes certain non-core items. The Company believes that presenting core net interest income and core net interest margin that considers non-core items, provides clarity to the users of financial statements regarding the ongoing performance of the Company and allows comparability to prior periods.
|
||||||||||||
Quarter Ended December 31, 2014
|
||||||||||||
Average Volume
|
Interest
|
Yield (1)
|
||||||||||
Total interest-earning assets
|
$ | 27,057,843 | $ | 287,135 | 4.21 | % | ||||||
Net interest income and net interest margin
|
259,488 | 3.80 | % | |||||||||
Less net impact of covered loan activity and amortization of
|
||||||||||||
the FDIC indemnification asset
|
(27,965 | ) | ||||||||||
Adjusted net interest income and net interest margin, considering the
|
||||||||||||
net impact of covered loan activity and amortization of the FDIC indemnification asset
|
$ | 231,523 | 3.39 | % | ||||||||
Quarter Ended September 30, 2014
|
||||||||||||
Average Volume
|
Interest
|
Yield (1)
|
||||||||||
Total interest-earning assets
|
$ | 26,241,447 | $ | 285,948 | 4.32 | % | ||||||
Net interest income and net interest margin
|
256,974 | 3.89 | % | |||||||||
Less net impact of covered loan activity and amortization of
|
||||||||||||
the FDIC indemnification asset
|
(31,613 | ) | ||||||||||
Adjusted net interest income and net interest margin, considering the
|
||||||||||||
net impact of covered loan activity and amortization of the FDIC indemnification asset
|
$ | 225,361 | 3.41 | % | ||||||||
Quarter Ended December 31, 2013
|
||||||||||||
Average Volume
|
Interest
|
Yield (1)
|
||||||||||
Total interest-earning assets
|
$ | 23,082,437 | $ | 293,203 | 5.04 | % | ||||||
Net interest income and net interest margin
|
265,008 | 4.55 | % | |||||||||
Less net impact of covered loan activity and amortization of
|
||||||||||||
the FDIC indemnification asset
|
(66,769 | ) | ||||||||||
Adjusted net interest income and net interest margin, considering the
|
||||||||||||
net impact of covered loan activity and amortization of the FDIC indemnification asset
|
$ | 198,239 | 3.41 | % |
(1) |
Annualized.
|
EAST WEST BANCORP, INC.
|
GAAP TO NON-GAAP RECONCILIATION
|
(In thousands)
|
(unaudited)
|
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance. The net interest margin includes certain non-core items. The Company believes that presenting core net interest income and core net interest margin that considers non-core items, provides clarity to the users of financial statements regarding the ongoing performance of the Company and allows comparability to prior periods.
|
||||||||||||
Year Ended December 31, 2014
|
||||||||||||
Average Volume
|
Interest
|
Yield
|
||||||||||
Total interest-earning assets
|
$ | 25,798,578 | $ | 1,153,698 | 4.47 | % | ||||||
Net interest income and net interest margin
|
1,040,878 | 4.03 | % | |||||||||
Less net impact of covered loan activity and amortization of
|
||||||||||||
the FDIC indemnification asset
|
(156,678 | ) | ||||||||||
Net interest income and net interest margin, considering the
|
||||||||||||
net impact of covered loan activity and amortization of the FDIC indemnification asset
|
$ | 884,200 | 3.43 | % | ||||||||
Year Ended December 31, 2013
|
||||||||||||
Average Volume
|
Interest
|
Yield
|
||||||||||
Total interest-earning assets
|
$ | 21,827,657 | $ | 1,068,685 | 4.90 | % | ||||||
Net interest income and net interest margin
|
956,193 | 4.38 | % | |||||||||
Less net impact of covered loan activity and amortization of
|
||||||||||||
the FDIC indemnification asset
|
(188,805 | ) | ||||||||||
Net interest income and net interest margin, considering the
|
||||||||||||
net impact of covered loan activity and amortization of the FDIC indemnification asset
|
$ | 767,388 | 3.52 | % |