PASADENA, Calif.--(BUSINESS WIRE)--
East West Bancorp, Inc. (Nasdaq: EWBC), parent company of East
West Bank, one of the nation's premier community banks, today reported
financial results for the first quarter 2008. Fully diluted earnings
per share for the first quarter decreased 88% to $0.08 from $0.68 in
the prior year period. First quarter results included a $55.0 million
provision for loan losses.
"Due to the unprecedented decline in the real estate market and
economic downturn which has impacted the entire financial industry,
East West experienced increased charge-off levels from recent historic
lows. As a result, we recorded total provision for loan losses of
$55.0 million, which led to the decrease in net income to $5.0 million
for the first quarter of 2008," stated Dominic Ng, Chairman, President
and Chief Executive Officer of East West. "This additional provision
has increased the allowance for loan losses and unfunded commitments
to total loans ratio to 1.46%, a substantial increase from 1.13% at
year-end 2007. We believe we are taking the appropriate measures to
strengthen our balance sheet during this challenging period for the
entire banking industry.
"Overall, East West is in a sound financial position - core
profitability, net interest margin, capital levels and our deposit
base are all solid. Even now, during this challenging credit
environment, East West's asset quality is still very strong compared
to its peers. The proactive and aggressive measures we are taking
today to bolster reserves and minimize credit losses demonstrate our
decisive, timely and prudent response to current market conditions,
which I believe will ultimately position the Bank for future renewed
growth and increased profitability."
First Quarter Summary
-- Diluted earnings per share of $0.08, down 88% from first
quarter 2007
-- Net income of $5.0 million, down 88% from first quarter 2007
-- Net interest income of $99.6 million, up 1% from first quarter
2007
-- Net interest margin of 3.63%
-- Return on equity of 1.74%
-- Total nonperforming assets were 0.63% of total assets
-- Net loan chargeoffs of $25.4 million
Financial Summary
First quarter net income was $5.0 million, down 88% from $42.1
million reported in the prior year period. Diluted earnings per share
for the first quarter totaled $0.08, down 88% from $0.68 in the prior
year period. Return on average equity for the quarter totaled 1.74%,
while return on average assets for the quarter totaled 0.17%. Pretax
income for the first quarter totaled $7.6 million, an 89% or $61.1
million decrease over the year ago figure.
Management Guidance
Due to the current economic conditions and turbulence surrounding
the entire financial market, the Company will not be providing
earnings per share guidance for the full year 2008 at this point in
time. Management expects that the net interest margin will range from
3.40% to 3.50%, reflecting the full impact of the current declining
interest rate environment. Additionally, we anticipate that
noninterest expense will decrease moderately from first quarter 2008
as we continue to carefully monitor all expenditures.
Management believes the Company's core profitability remains very
strong. The first quarter of 2008 was the eighth consecutive quarter
that pretax income before provision for loan losses exceeded $60.0
million. Management is confident that the Company will continue to be
profitable, even during this challenging time for the entire financial
industry. However, we currently believe it is unrealistic to provide
meaningful guidance as to the level of earnings given the uncertainty
surrounding the economy and real estate market and the potential
impact this will have to the Company. The Company intends to resume
providing guidance updates once these market uncertainties have
stabilized.
Balance Sheet Summary
At March 31, 2008, total assets were $11.8 billion compared to
$11.9 billion at December 31, 2007. Gross loans at March 31, 2008
totaled $8.8 billion compared to $8.8 billion at year-end 2007. As
part of our efforts to reduce leveraging in our balance sheet, we sold
a total of $144.2 million in loans at above par pricing during the
first quarter, primarily from our commercial real estate portfolio. As
is customary for the Bank, all loans were sold with servicing rights
retained to enable us to maintain relationships with our customers.
Selling loans with servicing rights retained allows us to effectively
reduce our loan to deposit ratio, while still allowing us to provide
excellent service to our customers, and provides us with new
opportunities for growth and the ability to earn servicing fee income.
Average earning assets for the first quarter of 2008 equaled $11.1
billion, 9% higher than the first quarter of 2007. The growth in
average earning assets was driven by a 10% or $777.9 million increase
in average loans to $9.0 billion and a 12% or $189.9 million increase
in investment securities. The yield on average earning assets for the
quarter was 6.81%, a decrease of 66 basis points from the year ago
quarter and a decrease of 56 basis points from the previous quarter.
The yield on average loans receivable for the quarter was 6.96%, a
decrease of 88 basis points from the year ago quarter and a decrease
of 63 basis points from the previous quarter.
Total deposits at March 31, 2008 were $7.6 billion, a 4% or $272.9
million increase over total deposits of $7.3 billion at December 31,
2007. Core deposits at March 31, 2008 totaled $3.4 billion or a 1%
decrease over year-end 2007.
Average total deposits for the first quarter were $7.3 billion, or
3% above the figure for the prior year period, while average core
deposits totaled $3.4 billion, or 1% greater than the year ago figure.
The average cost of deposits for the first quarter of 2008 was 2.86%,
a 51 basis point decrease from the year ago quarter and a 29 basis
point decrease from the previous quarter. The average cost of funds
for the first quarter equaled 3.35%, a 35 basis point decrease from
the prior year and a 28 basis point decrease from the prior quarter.
First Quarter Operating Results
Net interest income for the first quarter totaled $99.6 million,
1% greater than the first quarter of 2007 and 7%, or $7.0 million
lower on a sequential quarter basis. The net interest margin for the
quarter totaled 3.63%, compared to 3.95% in the prior year period and
3.91% in the prior quarter. The net interest margin was impacted by
the steep 200 basis point decrease in the federal funds target rate
during the quarter. During the first quarter, we paid down FHLB
advances by $155.0 million or 9%. The Company intends to continue to
use excess cash to reduce FHLB advances and other borrowings for the
remainder of 2008.
East West recorded $55.0 million in provision for loan losses
during the first quarter of 2008. In comparison, East West did not
record a provision for loan losses during the first quarter of 2007
and recorded $9.0 million in the fourth quarter of 2007. The
substantial increase in the provision for loan losses and the
allowance for loan losses was due to higher net charge-offs on problem
loans, increased loan delinquencies and downgrades in loan
classifications to more adverse risk ratings.
Noninterest income for the first quarter totaled $15.9 million,
27% or $3.4 million higher than the first quarter of 2007 and 14% or
$1.9 million greater than the fourth quarter of 2007. Core noninterest
income, excluding the impact of gains on sales of investment
securities, loans and other assets, totaled $10.6 million for the
quarter, 11% higher than the prior year figure and 6% lower than the
sequential quarter. The increase in core noninterest income from the
prior year is largely due to increased branch fees and letters of
credit fees and commissions stemming from the growth of the Company.
Noninterest expense totaled $52.9 million for the first quarter of
2008, 25% or $10.6 million higher than a year ago and 1% or $623
thousand higher than the previous quarter. The increase from prior
year is related to higher compensation and occupancy costs resulting
primarily from the acquisition of Desert Community Bank in August 2007
and higher legal expenses, included in other operating expenses. We
currently expect that noninterest expense for the remainder of 2008
will decrease moderately from first quarter 2008 as we continue to
carefully monitor all expenditures.
East West generated a 41.93% efficiency ratio for the first
quarter of 2008, compared to 35.57% a year ago. The efficiency ratio
increased in the first quarter relative to our performance in prior
quarters. However, the overall efficiency for the Company is still
substantially better than both our direct peers and the overall
banking industry.
The effective tax rate for the first quarter was 34.00% compared
to 38.80% in the prior year period. The decrease in the effective tax
rate was due to lower net income before income tax offset by tax
credits that remained at consistent levels.
Asset Quality
The higher provision for loan losses, net of $25.4 million in net
chargeoffs, increased the allowance for loan losses to $117.1 million,
a 32% or $28.7 million increase from year-end 2007. Total
nonperforming assets as of March 31, 2008 totaled $74.5 million or
0.63% of total assets, compared to $67.5 million, or 0.57% of total
assets at December 31, 2007. Nonperforming assets as of March 31, 2008
included other real estate owned totaling $14.9 million and loans
modified or restructured totaling $1.7 million. We foreclosed on five
properties during the first quarter, three residential construction
projects with a carrying value of $12.2 million and two single family
loans with a carrying value of $1.1 million.
For the first quarter of 2008, East West had net chargeoffs of
$25.4 million, comprised of $25.6 million in gross chargeoffs and $200
thousand in recoveries. This compares to net chargeoffs of $156
thousand for the first quarter of 2007 and $5.2 million for the fourth
quarter of 2007. Of the total gross chargeoffs of $25.6 million for
the quarter, 39% or $10.0 million resulted from one commercial loan
which was completely written off. Additionally, $10.9 million or 70%
of the remaining $15.4 million in chargeoffs resulted from four
residential construction and land loans located in the Inland Empire.
The allowance for loan losses at March 31, 2008 increased to
$117.1 million or 1.32% of total loans and 202% of nonaccrual loans,
compared to $88.4 million or 1.00% of total loans and 138% of
nonaccrual loans at December 31, 2007. At March 31, 2008, the
allowance for unfunded loan commitments increased to $12.3 million,
compared to $11.4 million at December 31, 2007. At March 31, 2008, the
allowance loan losses and unfunded loan commitments increased to
$129.4 million, compared to $99.8 million at December 31, 2007. The
allowance for unfunded loan commitments is included in accrued
expenses and other liabilities on the balance sheet. The Company's
methodology for calculating the allowance for loan losses includes
factors such as historical loss trends, asset classification,
delinquency, credit concentrations and overall economic conditions.
Based on management's evaluation and analysis of portfolio credit
quality and prevailing economic conditions, we believe these reserves
are adequate for losses inherent in the loan portfolio both on and
off-balance sheet as of March 31, 2008.
Capitalization
East West continues to remain well capitalized under all
regulatory guidelines. At March 31, 2008, our Tier I risk-based
capital ratio was 8.78%, total risk-based capital ratio was 10.59% and
Tier I leverage ratio was 8.58%. Total stockholders' equity as of
March 31, 2008 was $1.1 billion, representing a book value of $17.42
per share.
About East West
East West Bancorp is a publicly owned company, with $11.8 billion
in assets, whose stock 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 72 branch locations. East
West Bank serves the community with 70 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, 2007 (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 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.
EAST WEST BANCORP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(unaudited)
March 31, December 31,
2008 2007 % Change
------------ ------------ ---------
Assets
Cash and cash equivalents $ 265,019 $ 160,347 65
Securities purchased under resale
agreements 50,000 150,000 (67)
Investment securities available-
for-sale 1,748,266 1,887,136 (7)
Loans receivable (net of
allowance for loan losses
of $117,120 and $88,407) 8,726,556 8,750,921 (0)
Premiums on deposits acquired,
net 25,722 28,459 (10)
Goodwill 337,576 335,366 1
Other assets 607,071 539,983 12
------------ ------------
Total assets $11,760,210 $11,852,212 (1)
============ ============
Liabilities and Stockholders'
Equity
Deposits $ 7,551,837 $ 7,278,914 4
Federal funds purchased 77,502 222,275 (65)
Federal Home Loan Bank advances 1,653,411 1,808,419 (9)
Securities sold under repurchase
agreements 999,911 1,001,955 (0)
Notes payable 17,527 16,242 8
Accrued expenses and other
liabilities 120,668 117,014 3
Long-term debt 235,570 235,570 0
------------ ------------
Total liabilities 10,656,426 10,680,389 (0)
Stockholders' equity 1,103,784 1,171,823 (6)
------------ ------------
Total liabilities and
stockholders' equity $11,760,210 $11,852,212 (1)
============ ============
Book value per share $ 17.42 $ 18.56 (6)
Number of shares at period end 63,356 63,137 0
Ending Balances
March 31, December 31,
2008 2007 % Change
------------ ------------ ---------
Loans receivable
Real estate - single family $ 444,193 $ 433,337 3
Real estate - multifamily 698,867 690,941 1
Real estate - commercial 4,225,141 4,183,473 1
Real estate - construction 1,574,449 1,547,082 2
Commercial 1,251,974 1,314,068 (5)
Trade finance 459,687 491,690 (7)
Consumer 194,890 184,518 6
------------ ------------
Total gross loans receivable 8,849,201 8,845,109 0
Unearned fees, premiums and
discounts (5,525) (5,781) (4)
Allowance for loan losses (117,120) (88,407) 32
------------ ------------
Net loans receivable $ 8,726,556 $ 8,750,921 (0)
Deposits
Noninterest-bearing demand $ 1,454,383 $ 1,431,730 2
Interest-bearing checking 414,193 472,943 (12)
Money market 1,102,834 1,090,949 1
Savings 464,418 477,779 (3)
------------ ------------
Total core deposits 3,435,828 3,473,401 (1)
Time deposits less than $100,000 960,379 926,459 4
Time deposits $100,000 or greater 3,155,630 2,879,054 10
------------ ------------
Total time deposits 4,116,009 3,805,513 8
------------ ------------
Total deposits $ 7,551,837 $ 7,278,914 4
EAST WEST BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(unaudited)
Quarter Ended March 31, %
2008 2007 Change
------------- --------- ------
Interest and dividend income $187,184 $186,177 1
Interest expense (87,565) (87,574) (0)
------------- ---------
Net interest income before provision
for loan losses 99,619 98,603 1
Provision for loan losses (55,000) - NA
------------- ---------
Net interest income after provision
for loan losses 44,619 98,603 (55)
Noninterest income 15,925 12,495 27
Noninterest expense (52,902) (42,318) 25
------------- ---------
Income before provision for income
taxes 7,642 68,780 (89)
Provision for income taxes (2,598) (26,684) (90)
------------- ---------
Net income $ 5,044 $ 42,096 (88)
Net income per share, basic $ 0.08 $ 0.69 (88)
Net income per share, diluted $ 0.08 $ 0.68 (88)
Shares used to compute per share net
income:
- Basic 62,485 60,649 3
- Diluted 62,949 61,700 2
Quarter Ended March 31, %
2008 2007 Change
------------- --------- ------
Noninterest income:
Net gain on sales of investment
securities available-for-sale $ 4,334 $ 1,528 184
Branch fees 4,101 3,427 20
Letters of credit fees and commissions 2,677 2,353 14
Ancillary loan fees 1,141 1,280 (11)
Net gain on sale of loans 949 - NA
Income from secondary market
activities 906 938 (3)
Net gain on disposal of fixed assets - NA
Net gain on sale of real estate owned - 1,344 NA
Other operating income 1,817 1,625 12
------------- ---------
Total noninterest income $ 15,925 $ 12,495 27
Noninterest expense:
Compensation and employee benefits $ 23,268 $ 20,782 12
Occupancy and equipment expense 7,008 5,881 19
Amortization and impairment writedowns
of premiums on deposits acquired 2,737 1,532 79
Amortization of investments in
affordable housing partnerships 1,715 1,268 35
Data processing 1,196 982 22
Deposit insurance premiums and
regulatory assessments 1,192 347 244
Other operating expense 15,786 11,526 37
------------- ---------
Total noninterest expense $ 52,902 $ 42,318 25
EAST WEST BANCORP, INC.
SELECTED FINANCIAL INFORMATION
(In thousands)
(unaudited)
Average Balances Quarter Ended March 31, %
2008 2007 Change
----------- ----------- ------
Loans receivable
Real estate - single family $ 444,153 $ 379,300 17
Real estate - multifamily 698,529 1,411,528 (51)
Real estate - commercial 4,293,394 3,735,513 15
Real estate - construction 1,584,065 1,197,985 32
Commercial 1,282,814 998,849 28
Trade finance 465,311 294,141 58
Consumer 187,028 160,062 17
----------- -----------
Total loans receivable 8,955,294 8,177,378 10
Investment securities available-for-
sale 1,839,070 1,649,189 12
Earning assets 11,050,836 10,116,300 9
Total assets 11,788,755 10,759,034 10
Deposits
Noninterest-bearing demand $ 1,359,837 $ 1,244,697 9
Interest-bearing checking 437,804 415,759 5
Money market 1,094,698 1,315,539 (17)
Savings 471,437 364,592 29
----------- -----------
Total core deposits 3,363,776 3,340,587 1
Time deposits less than $100,000 938,282 991,517 (5)
Time deposits $100,000 or greater 3,027,580 2,761,135 10
----------- -----------
Total time deposits 3,965,862 3,752,652 6
----------- -----------
Total deposits 7,329,638 7,093,239 3
Interest-bearing liabilities 9,119,556 8,349,439 9
Stockholders' equity 1,157,027 1,021,705 13
EAST WEST BANCORP, INC.
SELECTED FINANCIAL INFORMATION
(In thousands)
(unaudited)
Selected Ratios Quarter Ended March 31, %
2008 2007 Change
---------- ------------ -------
For The Period
Return on average assets 0.17% 1.57% (89)
Return on average equity 1.74% 16.48% (89)
Interest rate spread (3) 2.96% 3.22% (8)
Net interest margin (3) 3.63% 3.95% (8)
Yield on earning assets (3) 6.81% 7.47% (9)
Cost of deposits 2.86% 3.37% (15)
Cost of funds 3.35% 3.70% (9)
Noninterest expense/average assets
(1) 1.64% 1.47% 12
Efficiency ratio (1) 41.93% 35.57% 18
Net chargeoffs to average loans (2) 1.13% 0.01% 14,758
Gross loan chargeoffs $25,583 $ 191 13,294
Loan recoveries $ (200) $ (35) 471
---------- ------------
Net loan chargeoffs $25,383 $ 156 16,171
---------- ------------
Period End
Tier 1 risk-based capital ratio 8.78% 9.80% (10)
Total risk-based capital ratio 10.59% 11.26% (6)
Tier 1 leverage capital ratio 8.58% 8.54% 0
Nonperforming assets to total assets 0.63% 0.15% 322
Nonaccrual loans to total loans 0.65% 0.19% 244
Allowance for loan losses to total
loans 1.32% 0.95% 39
Allowance for loan losses and
unfunded loan commitments to total
loans 1.46% 1.12% 31
Allowance for loan losses to
nonaccrual loans 202.41% 508.09% (60)
March 31, December 31,
2008 2007
---------- ------------
Nonperforming Assets Summary
Nonaccrual Loans $57,863 $63,882 (9)
Modified or Restructured Loans 1,711 2,081 (18)
Real Estate Owned 14,893 1,500 893
---------- ------------
Total Nonperforming Assets $74,467 $67,463 10
(1) Excludes the amortization of intangibles and 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.
EAST WEST BANCORP, INC.
SELECTED FINANCIAL INFORMATION
(In thousands)
(unaudited)
Delinquent Loans By
Loan Categories
Loan Type Total
30-59 Days 60-89 Days 90+ Days Delinquent
Delinquent Delinquent Delinquent Loans
----------- ----------- ----------- -----------
March 31, 2008
Real estate - single
family $11,351 $ 4,033 $ 4,036 $ 19,420
Real estate -
multifamily 10,836 419 11,260 22,515
Real estate -
commercial 12,871 9,268 11,105 33,244
Real estate -
construction 10,600 34,811 25,258 70,669
C&I and trade finance 4,094 2,773 1,095 7,962
Consumer 374 301 198 873
----------- ----------- ----------- -----------
Total Delinquent
Loans $50,126 $51,605 $52,952 $154,683
December 31, 2007
Real estate - single
family 4,039 1,806 4,506 10,351
Real estate -
multifamily 7,464 2,860 9,644 19,968
Real estate -
commercial 10,648 4,649 15,484 30,781
Real estate -
construction 15,313 204 31,722 47,239
C&I and trade finance 4,134 11,409 1,048 16,591
Consumer 452 455 939 1,846
----------- ----------- ----------- -----------
Total Delinquent
Loans $42,050 $21,383 $63,343 $126,776
EAST WEST BANCORP, INC.
QUARTER TO DATE AVERAGE BALANCES, YIELDS AND RATES PAID
(In thousands)
(unaudited)
Quarter Ended March 31,
---------------------------------
2008
---------------------------------
Average
Volume Interest Yield (1)
---------------------------------
ASSETS
------------------------------------
Interest-earning assets:
Short-term investments (2) $ 76,540 $ 538 2.82%
Securities purchased under resale
agreements (3) 64,286 2,553 15.93%
Investment securities
Taxable 1,771,591 26,004 5.89%
Tax-exempt (4) 67,479 1,441 8.54%
Loans receivable 8,955,294 155,434 6.96%
Federal Home Loan Bank and Federal
Reserve
Bank stocks 115,646 1,609 5.58%
---------------------------------
Total interest-earning assets 11,050,836 187,579 6.81%
---------------------------------
Noninterest-earning assets:
Cash and due from banks 150,469
Allowance for loan losses (89,958)
Other assets 677,408
------------
Total assets $11,788,755
============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Interest-bearing liabilities:
Checking accounts 437,804 1,367 1.25%
Money market accounts 1,094,698 8,464 3.10%
Savings deposits 471,437 1,454 1.24%
Time deposits less than $100,000 938,282 8,841 3.78%
Time deposits $100,000 or greater 3,027,580 32,127 4.26%
Federal funds purchased 165,686 1,378 3.34%
Federal Home Loan Bank advances 1,747,313 19,682 4.52%
Securities sold under repurchase
agreements 1,001,186 10,529 4.22%
Long-term debt 235,570 3,723 6.34%
---------------------------------
Total interest-bearing liabilities 9,119,556 87,565 3.85%
---------------------------------
Noninterest-bearing liabilities:
Demand deposits 1,359,837
Other liabilities 152,335
Stockholders' equity 1,157,027
------------
Total liabilities and
stockholders' equity $11,788,755
============
Interest rate spread 2.96%
Net interest income and net yield
on interest-earning assets (4) $100,014 3.63%
========
Quarter Ended March 31,
--------------------------------
2007
--------------------------------
Average
Volume Interest Yield (1)
--------------------------------
ASSETS
-------------------------------------
Interest-earning assets:
Short-term investments (2) $ 7,710 $ 100 5.26%
Securities purchased under resale
agreements (3) 195,574 3,786 7.85%
Investment securities
Taxable 1,640,374 22,779 5.63%
Tax-exempt (4) 8,815 165 7.49%
Loans receivable 8,177,378 158,163 7.84%
Federal Home Loan Bank and Federal
Reserve
Bank stocks 86,449 1,228 5.76%
--------------------------------
Total interest-earning assets 10,116,300 186,221 7.47%
--------------------------------
Noninterest-earning assets:
Cash and due from banks 147,486
Allowance for loan losses (78,190)
Other assets 573,438
-------------
Total assets $10,759,034
=============
LIABILITIES AND STOCKHOLDERS' EQUITY
-------------------------------------
Interest-bearing liabilities:
Checking accounts 415,759 1,722 1.68%
Money market accounts 1,315,539 13,575 4.18%
Savings deposits 364,592 624 0.69%
Time deposits less than $100,000 991,517 9,551 3.91%
Time deposits $100,000 or greater 2,761,135 33,490 4.92%
Federal funds purchased 148,185 1,970 5.39%
Federal Home Loan Bank advances 1,193,231 14,866 5.05%
Securities sold under repurchase
agreements 975,000 8,394 3.49%
Long-term debt 184,481 3,382 7.43%
--------------------------------
Total interest-bearing liabilities 8,349,439 87,574 4.25%
--------------------------------
Noninterest-bearing liabilities:
Demand deposits 1,244,697
Other liabilities 143,193
Stockholders' equity 1,021,705
-------------
Total liabilities and
stockholders' equity $10,759,034
=============
Interest rate spread 3.22%
Net interest income and net yield
on interest-earning assets (4) $ 98,647 3.95%
========
(1) Annualized.
(2) Includes short-term securities purchased under resale agreements.
(3) The terms for the purchase of securities under resale agreements
range from ten to fifteen years.
(4) Amounts calculated on a fully taxable equivalent basis using the
current statutory federal tax rate.
Source: East West Bancorp, Inc.
Contact: East West Bancorp, Inc.
Julia Gouw, Chief Financial Officer, (626) 768-6898