EX-12.1 3 ewbc12110k12312017.htm EXHIBIT 12.1 Exhibit


Exhibit 12.1

EAST WEST BANCORP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES



 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
($ in thousands)
 
2017
 
2016
 
2015
 
2014
 
2013
 
 
 
Including interest on deposits
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
735,100

 
$
572,188

 
$
578,721

 
$
447,023

 
$
447,146

Fixed charges and preferred dividends
 
149,962

 
112,873

 
111,590

 
121,562

 
126,170

Total earnings
 
$
885,062

 
$
685,061

 
$
690,311

 
$
568,585

 
$
573,316

 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
140,050

 
$
104,843

 
$
103,376

 
$
112,820

 
$
112,492

1/3 of net rental expense (1)
 
9,912

 
8,030

 
8,214

 
8,742

 
8,731

Total fixed charges
 
$
149,962

 
$
112,873

 
$
111,590

 
$
121,562

 
$
121,223

Preferred dividends
 
—

 
—

 
—

 
—

 
4,947

Total fixed charges and preferred dividends
 
$
149,962

 
$
112,873

 
$
111,590

 
$
121,562

 
$
126,170

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
5.90

 
6.07

 
6.19

 
4.68

 
4.73

Ratio of earnings to fixed charges and preferred dividends
 
5.90

 
6.07

 
6.19

 
4.68

 
4.54

 
 
 
 
 
 
 
 
 
 
 
Excluding interest on deposits
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
735,100

 
$
572,188

 
$
578,721

 
$
447,023

 
$
447,146

Fixed charges and preferred dividends
 
33,571

 
28,649

 
38,085

 
56,076

 
62,674

Total earnings
 
$
768,671

 
$
600,837

 
$
616,806

 
$
503,099

 
$
509,820

 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
140,050

 
$
104,843

 
$
103,376

 
$
112,820

 
$
112,492

Less: Interest on deposits
 
(116,391
)
 
(84,224
)
 
(73,505
)
 
(65,486
)
 
(63,496
)
1/3 of net rental expense (1)
 
9,912

 
8,030

 
8,214

 
8,742

 
8,731

Total fixed charges
 
$
33,571

 
$
28,649

 
$
38,085

 
$
56,076

 
$
57,727

Preferred dividends
 
—

 
—

 
—

 
—

 
4,947

Total fixed charges and preferred dividends
 
$
33,571

 
$
28,649

 
$
38,085

 
$
56,076

 
$
62,674

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
22.90

 
20.97

 
16.20

 
8.97

 
8.83

Ratio of earnings to fixed charges and preferred dividends
 
22.90

 
20.97

 
16.20

 
8.97

 
8.13

 
 
 
 
 
 
 
 
 
 
 
(1)
The proportion deemed representative of the interest factor.