– моментальные уведомления о рынке акций
– моментальные уведомления о рынке акций
PASADENA, Calif.--(BUSINESS WIRE)--East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, today reported its financial results for the first quarter of 2022. For the first quarter of 2022, net income was $237.7 million, or $1.66 per diluted share, up 37% linked quarter annualized and up 16% year-over-year.
“East West had an excellent start to the year. Financial results for the first quarter of 2022 were very strong, with an acceleration of loan and revenue growth, and a 14 basis point expansion in the net interest margin to 2.87%,” stated Dominic Ng, Chairman and Chief Executive Officer of East West. “Quarter-over-quarter, our adjusted pre-tax, pre-provision income1 of $320.3 million grew by 28% annualized. Our first quarter 2022 return on assets of 1.56% expanded by 17 basis points, and our return on equity of 16.5% expanded by 157 basis points sequentially.”
“Total loans reached a record $43.5 billion as of March 31, 2022. Excluding the impact of the Paycheck Protection Program loans, total loans grew by $2.0 billion, or 20% linked quarter annualized, led by commercial loan growth. Total deposits grew to a record $54.9 billion as of March 31, 2022, an increase of $1.6 billion or 12% linked quarter annualized, driven by strong growth in noninterest-bearing demand deposits. Demand deposits made up 45% of our deposits as of March 31, 2022, up from 38% a year ago,” continued Ng.
“The strength of East West’s business model and our ability to execute are reflected in our financial achievements for the first quarter. Our loan portfolio is well-diversified, our pipelines are robust, our asset quality continues to be strong, and our balance sheet is well-positioned for a rising interest rate environment. We are optimistic about our outlook and expect to continue to deliver strong growth and earnings in 2022 and beyond,” concluded Ng.
FINANCIAL HIGHLIGHTS
|
Three Months Ended |
|
Qtr-o-Qtr Change |
|
Yr-o-Yr Change |
|||||||
($ in millions) |
March 31, 2022 |
|
$ |
|
% Ann. |
|
$ |
|
% |
|||
Total Loans (incl. PPP) |
$ 43,491 |
|
$ 1,797 |
17 |
% |
|
$ 3,903 |
10 |
% |
|||
Total Loans (excl. PPP) |
43,173 |
|
2,013 |
20 |
|
|
5,657 |
15 |
|
|||
Total Deposits |
54,938 |
|
1,588 |
12 |
|
|
5,391 |
11 |
|
|||
Total Revenue |
$ 495 |
|
$ 18 |
15 |
% |
|
$ 69 |
16 |
% |
|||
Adj. Pre-tax Pre-provision Income1 |
320 |
|
21 |
28 |
|
|
59 |
22 |
|
|||
Net Income |
238 |
|
20 |
37 |
|
|
33 |
16 |
|
|||
1 See reconciliation of GAAP to non-GAAP financial measures in Table 10. |
2 See reconciliation of GAAP to non-GAAP financial measures in Table 11. |
OPERATING RESULTS
First Quarter Earnings – First quarter 2022 net income was $237.7 million, or $1.66 per diluted share, an increase of 9%, or 37% annualized, from $217.8 million, or $1.52 per diluted share, for the fourth quarter of 2021, and an increase of 16% from $205.0 million, or $1.44 per diluted share, for the first quarter of 2021.
First Quarter 2022 Compared to Fourth Quarter 2021
Net Interest Income and Net Interest Margin
Net interest income (“NII”) totaled $415.6 million, an increase of 10% annualized from $405.7 million. Net interest margin (“NIM”) of 2.87% increased by 14 basis points from 2.73%.
Noninterest Income
Noninterest income totaled $79.7 million in the first quarter, an increase of $8.3 million, or 12%, from $71.5 million in the fourth quarter. Customer-driven fee income and net gains on sales of loans were $65.0 million, an increase of 3% linked quarter, or 11% annualized, from $63.3 million in the fourth quarter.
Interest rate contracts (“IRC”) and other derivative income was $11.1 million in the first quarter, compared with $1.9 million in the fourth quarter. The $9.2 million quarter-over-quarter increase was largely due to a favorable change in the credit valuation adjustment, as well as higher customer-driven IRC revenue.
Noninterest Expense
Noninterest expense totaled $189.5 million in the first quarter, compared with $210.1 million in the fourth quarter. First quarter noninterest expense consisted of $175.0 million of adjusted noninterest expense3, $13.9 million in amortization of tax credit and other investments, and $0.5 million in amortization of core deposit intangibles.
TAX RELATED ITEMS
First quarter 2022 income tax expense was $60.3 million and the effective tax rate was 20.2%, compared with income tax expense of $59.3 million and an effective tax rate of 21.4% for the fourth quarter of 2021.
The asset quality of the loan portfolio continues to be strong.
3 See reconciliation of GAAP to non-GAAP financial measures in Table 10. |
CAPITAL STRENGTH
Capital levels for East West are strong. The following table presents the regulatory capital metrics as of March 31, 2022, December 31, 2021, and March 31, 2021.
EWBC Risk-Based Capital Ratios
($ in millions) |
|
March 31, 2022 (a) |
|
December 31, 2021 (a) |
|
March 31, 2021 (a) |
|
||||||
CET1 capital ratio |
|
|
12.6 |
% |
|
|
12.8 |
% |
|
|
12.7 |
% |
|
Tier 1 capital ratio |
|
|
12.6 |
% |
|
|
12.8 |
% |
|
|
12.7 |
% |
|
Total capital ratio |
|
|
13.9 |
% |
|
|
14.1 |
% |
|
|
14.3 |
% |
|
Leverage ratio |
|
|
9.3 |
% |
|
|
9.0 |
% |
|
|
9.1 |
% |
|
Risk-Weighted Assets (“RWA”) (b) |
|
$ |
45,405 |
|
|
$ |
43,585 |
|
|
$ |
39,572 |
|
|
(a) |
The Company has elected to use the 2020 CECL transition provision in the calculation of its March 31, 2022, December 31, 2021, and March 31, 2021 regulatory capital ratios. The Company’s March 31, 2022 regulatory capital ratios and RWA are preliminary. |
|
(b) |
Under regulatory guidelines, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories based on the nature of the obligor, or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar value in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total RWA. |
DIVIDEND PAYOUT AND CAPITAL ACTIONS
East West’s Board of Directors has declared second quarter 2022 dividends for the Company’s common stock. The common stock cash dividend of $0.40 per share is payable on May 16, 2022, to stockholders of record on May 2, 2022.
On March 3, 2020, East West’s Board of Directors authorized the repurchase of up to $500 million of East West’s common stock, of which $354 million remains available. East West did not repurchase any shares during the first quarter of 2022, and has not repurchased any shares since the first quarter of 2020, under this authorization.
Conference Call
East West will host a conference call to discuss first quarter 2022 earnings with the public on Thursday, April 21, 2022, at 8:30 a.m. PT/11:30 a.m. ET. The public and investment community are invited to listen as management discusses first quarter 2022 results and operating developments.
About East West
East West Bancorp, Inc. is a public company with total assets of $62.2 billion and is traded on the Nasdaq Global Select Market under the symbol “EWBC”. The Company’s wholly-owned subsidiary, East West Bank, is the largest independent bank headquartered in Southern California, operating over 120 locations in the United States and in China. The Company’s markets in the United States include California, Georgia, Illinois, Massachusetts, Nevada, New York, Texas and Washington. In China, East West’s presence includes full-service branches in Hong Kong, Shanghai, Shantou and Shenzhen, and representative offices in Beijing, Chongqing, Guangzhou, and Xiamen. For more information on East West, visit the Company’s website at www.eastwestbank.com.
Forward-Looking Statements
Certain matters set forth herein (including any exhibits hereto) contain forward-looking statements that are intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. In addition, the Company may make forward-looking statements in other documents that it files with, or furnishes to, the U.S. Securities and Exchange Commission (“SEC”) and management may make forward-looking statements to analysts, investors, media members and others. Forward-looking statements are those that do not relate to historical facts, and that are based on current expectations, estimates and projections about the Company’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. These statements may relate to the Company’s financial condition, results of operations, plans, objectives, future performance and/or business and usually can be identified by the use of forward-looking language, such as “anticipates,” “assumes,” “believes,” “can,” “continues,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends to,” “likely,” “may,” “might,” “objective,” “plans,” “potential,” “projects,” “remains,” “should,” “target,” “trend,” “will,” “would,” or similar expressions, and the negative thereof. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including, but not limited to, those described in the documents incorporated by reference. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company.
There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such differences, include, but are not limited to: changes in the global economy, including an economic slowdown, or market disruption, level of inflation, interest rate environment, housing prices, employment levels, rate of growth and general business conditions; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit; changes in local, regional and global business, economic and political conditions and geopolitical events; the economic, financial, reputational and other impacts of the ongoing COVID-19 global pandemic including variants thereof and any other pandemic, epidemic or health-related crisis, as well as a deterioration of asset quality and an increase in credit losses due to the COVID-19 global pandemic; changes in laws or the regulatory environment including regulatory reform initiatives and policies of the U.S. Department of Treasury, the Federal Reserve, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the SEC, the Consumer Financial Protection Bureau, and the California Department of Financial Protection and Innovation; the changes and effects thereof in trade, monetary and fiscal policies and laws, including the ongoing economic and political disputes between the U.S. and the People’s Republic of China and the monetary policies of the Federal Reserve; changes in the commercial and consumer real estate markets; changes in consumer or commercial spending, savings and borrowing habits, and patterns and behaviors; fluctuations in the Company’s stock price; impact from potential changes to income tax laws and regulations, federal spending and economic stimulus programs; the Company’s ability to compete effectively against financial institutions in its banking markets and other entities, including as a result of emerging technologies; the soundness of other financial institutions; success and timing of the Company’s business strategies; the Company’s ability to retain key officers and employees; impact on the Company’s funding costs, net interest income and net interest margin from changes in key variable market interest rates, competition, regulatory requirements and the Company’s product mix; changes in the Company’s costs of operation, compliance and expansion; the Company’s ability to adopt and successfully integrate new technologies into its business in a strategic manner; impact of the benchmark interest rate reform in the U.S. including the transition away from USD London Interbank Offered Rate to alternative reference rates; impact of communications or technology disruption, failure in, or breach of, the Company’s operational or security systems or infrastructure, or those of third party vendors with which the Company does business, including as a result of cyber-attacks; and other similar matters which could result in, among other things, confidential and/or proprietary information being disclosed or misused and materially impact the Company’s ability to provide services to its clients; adequacy of the Company’s risk management framework, disclosure controls and procedures and internal control over financial reporting; future credit quality and performance, including the Company’s expectations regarding future credit losses and allowance levels; impact of adverse changes to the Company’s credit ratings from major credit rating agencies; impact of adverse judgments or settlements in litigation; impact on the Company’s operations due to political developments, pandemics, wars, civil unrest, terrorism or other hostilities that may disrupt or increase volatility in securities or otherwise affect business and economic conditions; heightened regulatory and governmental oversight and scrutiny of the Company’s business practices, including dealings with consumers; impact of reputational risk from negative publicity, fines, penalties and other negative consequences from regulatory violations, legal actions and the Company’s interactions with business partners, counterparties, service providers and other third parties; impact of regulatory enforcement actions; changes in accounting standards as may be required by the Financial Accounting Standards Board or other regulatory agencies and their impact on critical accounting policies and assumptions; the Company’s capital requirements and its ability to generate capital internally or raise capital on favorable terms; impact on the Company’s liquidity due to changes in the Company’s ability to receive dividends from its subsidiaries; any future strategic acquisitions or divestitures; changes in the equity and debt securities markets; fluctuations in foreign currency exchange rates; impact of increased focus on social, environmental and sustainability matters, which may affect the Company’s operations as well as those of its customers and the economy more broadly; significant turbulence or disruption in the capital or financial markets, which could result in, among other things, a reduction in the availability of funding or increases in funding costs, declines in asset values and/or recognition of allowance for credit losses on securities held in the Company’s debt securities portfolio; and impact of climate change, natural or man-made disasters or calamities, such as wildfires, droughts and earthquakes, all of which are particularly common in California, or other events that may directly or indirectly result in a negative impact on the Company’s financial performance.
For a more detailed discussion of some of the factors that might cause such differences, see the Company’s 2021 Form 10-K under the heading Item 1A. Risk Factors and the information set forth under Item 1A. Risk Factors in the Company’s Quarterly Reports on Form 10-Q. The Company does not undertake, and specifically disclaims any obligation to update or revise any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.
EAST WEST BANCORP, INC. AND SUBSIDIARIES |
|
|||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEET |
|
|||||||||||||||||||
($ and shares in thousands, except per share data) |
|
|||||||||||||||||||
(unaudited) |
|
|||||||||||||||||||
Table 1 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
March 31, 2022
|
|
||||||||||
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
Qtr-o-Qtr |
|
Yr-o-Yr |
|
||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Cash and due from banks |
|
$ |
571,571 |
|
|
$ |
527,317 |
|
|
$ |
582,270 |
|
|
8.4 |
% |
|
(1.8 |
)% |
|
|
Interest-bearing cash with banks |
|
|
3,277,129 |
|
|
|
3,385,618 |
|
|
|
4,036,863 |
|
|
(3.2 |
) |
|
(18.8 |
) |
|
|
Cash and cash equivalents |
|
|
3,848,700 |
|
|
|
3,912,935 |
|
|
|
4,619,133 |
|
|
(1.6 |
) |
|
(16.7 |
) |
|
|
Interest-bearing deposits with banks |
|
|
816,125 |
|
|
|
736,492 |
|
|
|
741,923 |
|
|
10.8 |
|
|
10.0 |
|
|
|
Assets purchased under resale agreements (“resale agreements”) |
|
|
1,956,822 |
|
|
|
2,353,503 |
|
|
|
2,160,038 |
|
|
(16.9 |
) |
|
(9.4 |
) |
|
|
Available-for-sale (“AFS”) debt securities (amortized cost of $7,091,581, $10,087,179 and $7,904,546) |
|
|
6,729,431 |
|
|
|
9,965,353 |
|
|
|
7,789,213 |
|
|
(32.5 |
) |
|
(13.6 |
) |
|
|
Held-to-maturity (“HTM”) debt securities, at amortized cost (fair value of $2,815,968 in 2022) |
|
|
2,997,702 |
|
|
|
— |
|
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
|
|
Loans held-for-sale (“HFS”) |
|
|
631 |
|
|
|
635 |
|
|
|
— |
|
|
(0.6 |
) |
|
100.0 |
|
|
|
Loans held-for-investment (''HFI'') (net of allowance for loan losses of $545,685, $541,579 and $607,506) |
|
|
42,944,997 |
|
|
|
41,152,202 |
|
|
|
38,981,242 |
|
|
4.4 |
|
|
10.2 |
|
|
|
Investments in qualified affordable housing partnerships, tax credit and other investments, net |
|
|
607,985 |
|
|
|
628,263 |
|
|
|
646,300 |
|
|
(3.2 |
) |
|
(5.9 |
) |
|
|
Goodwill |
|
|
465,697 |
|
|
|
465,697 |
|
|
|
465,697 |
|
|
— |
|
|
— |
|
|
|
Operating lease right-of-use assets |
|
|
102,491 |
|
|
|
98,632 |
|
|
|
94,483 |
|
|
3.9 |
|
|
8.5 |
|
|
|
Other assets |
|
|
1,770,875 |
|
|
|
1,556,989 |
|
|
|
1,376,117 |
|
|
13.7 |
|
|
28.7 |
|
|
|
Total assets |
|
$ |
62,241,456 |
|
|
$ |
60,870,701 |
|
|
$ |
56,874,146 |
|
|
2.3 |
% |
|
9.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Deposits |
|
$ |
54,938,361 |
|
|
$ |
53,350,532 |
|
|
$ |
49,547,136 |
|
|
3.0 |
% |
|
10.9 |
% |
|
|
FHLB advances |
|
|
74,619 |
|
|
|
249,331 |
|
|
|
653,035 |
|
|
(70.1 |
) |
|
(88.6 |
) |
|
|
Assets sold under repurchase agreements (“repurchase agreements”) |
|
|
300,000 |
|
|
|
300,000 |
|
|
|
300,000 |
|
|
— |
|
|
— |
|
|
|
Long-term debt and finance lease liabilities |
|
|
152,227 |
|
|
|
151,997 |
|
|
|
152,195 |
|
|
0.2 |
|
|
0.0 |
|
|
|
Operating lease liabilities |
|
|
109,656 |
|
|
|
105,534 |
|
|
|
101,828 |
|
|
3.9 |
|
|
7.7 |
|
|
|
Accrued expenses and other liabilities |
|
|
963,137 |
|
|
|
876,089 |
|
|
|
834,925 |
|
|
9.9 |
|
|
15.4 |
|
|
|
Total liabilities |
|
|
56,538,000 |
|
|
|
55,033,483 |
|
|
|
51,589,119 |
|
|
2.7 |
|
|
9.6 |
|
|
|
Stockholders’ equity |
|
|
5,703,456 |
|
|
|
5,837,218 |
|
|
|
5,285,027 |
|
|
(2.3 |
) |
|
7.9 |
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
62,241,456 |
|
|
$ |
60,870,701 |
|
|
$ |
56,874,146 |
|
|
2.3 |
% |
|
9.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Book value per common share |
|
$ |
40.09 |
|
|
$ |
41.13 |
|
|
$ |
37.26 |
|
|
(2.5 |
) % |
|
7.6 |
% |
|
|
Tangible equity (1) per common share |
|
$ |
36.76 |
|
|
$ |
37.79 |
|
|
$ |
33.90 |
|
|
(2.7 |
) |
|
8.4 |
|
|
|
Number of common shares at period-end |
|
|
142,257 |
|
|
|
141,908 |
|
|
|
141,843 |
|
|
0.2 |
|
|
0.3 |
|
|
|
Tangible equity to tangible assets ratio (1) |
|
|
8.47 |
% |
|
|
8.88 |
% |
|
|
8.53 |
% |
|
(41 |
) |
bps |
(6 |
)bps |
|
|
|
|
|
|
|
|
||||||||||||||
(1) |
See reconciliation of GAAP to non-GAAP financial measures in Table 11. |
EAST WEST BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||||
TOTAL LOANS AND DEPOSITS DETAIL |
|||||||||||||||||||
($ in thousands) |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
Table 2 |
|||||||||||||||||||
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
March 31, 2022
|
||||||||||
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
Qtr-o-Qtr |
|
Yr-o-Yr |
||||||||
Loans: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial: |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Commercial and industrial (“C&I”) (1) |
|
$ |
14,838,134 |
|
|
$ |
14,150,608 |
|
|
$ |
14,081,110 |
|
|
4.9 |
% |
|
5.4 |
% |
|
Commercial real estate (“CRE”): |
|
|
|
|
|
|
|
|
|
|
||||||||
|
CRE |
|
|
12,636,787 |
|
|
|
12,155,047 |
|
|
|
11,563,034 |
|
|
4.0 |
|
|
9.3 |
|
|
Multifamily residential |
|
|
3,894,463 |
|
|
|
3,675,605 |
|
|
|
3,066,515 |
|
|
6.0 |
|
|
27.0 |
|
|
Construction and land |
|
|
443,836 |
|
|
|
346,486 |
|
|
|
459,254 |
|
|
28.1 |
|
|
(3.4 |
) |
|
Total CRE |
|
|
16,975,086 |
|
|
|
16,177,138 |
|
|
|
15,088,803 |
|
|
4.9 |
|
|
12.5 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Residential mortgage: |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Single-family residential |
|
|
9,283,429 |
|
|
|
9,093,702 |
|
|
|
8,524,287 |
|
|
2.1 |
|
|
8.9 |
|
|
Home equity lines of credit (“HELOCs”) |
|
|
2,266,634 |
|
|
|
2,144,821 |
|
|
|
1,749,172 |
|
|
5.7 |
|
|
29.6 |
|
|
Total residential mortgage |
|
|
11,550,063 |
|
|
|
11,238,523 |
|
|
|
10,273,459 |
|
|
2.8 |
|
|
12.4 |
|
|
Other consumer |
|
|
127,399 |
|
|
|
127,512 |
|
|
|
145,376 |
|
|
(0.1 |
) |
|
(12.4 |
) |
Total loans HFI (2) |
|
|
43,490,682 |
|
|
|
41,693,781 |
|
|
|
39,588,748 |
|
|
4.3 |
|
|
9.9 |
|
|
Loans HFS |
|
|
631 |
|
|
|
635 |
|
|
|
— |
|
|
(0.6 |
) |
|
100.0 |
|
|
|
Total loans (1)(2) |
|
|
43,491,313 |
|
|
|
41,694,416 |
|
|
|
39,588,748 |
|
|
4.3 |
|
|
9.9 |
|
Allowance for loan losses |
|
|
(545,685 |
) |
|
|
(541,579 |
) |
|
|
(607,506 |
) |
|
0.8 |
|
|
(10.2 |
) |
|
|
Net loans (2) |
|
$ |
42,945,628 |
|
|
$ |
41,152,837 |
|
|
$ |
38,981,242 |
|
|
4.4 |
|
|
10.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Noninterest-bearing demand |
|
$ |
24,927,768 |
|
|
$ |
22,845,464 |
|
|
$ |
18,919,298 |
|
|
9.1 |
% |
|
31.8 |
% |
|
Interest-bearing checking |
|
|
6,774,826 |
|
|
|
6,524,721 |
|
|
|
7,005,693 |
|
|
3.8 |
|
|
(3.3 |
) |
|
Money market |
|
|
12,108,432 |
|
|
|
13,130,300 |
|
|
|
12,218,957 |
|
|
(7.8 |
) |
|
(0.9 |
) |
|
Savings |
|
|
2,897,248 |
|
|
|
2,888,065 |
|
|
|
2,604,355 |
|
|
0.3 |
|
|
11.2 |
|
|
Time deposits |
|
|
8,230,087 |
|
|
|
7,961,982 |
|
|
|
8,798,833 |
|
|
3.4 |
|
|
(6.5 |
) |
|
Total deposits |
|
$ |
54,938,361 |
|
|
$ |
53,350,532 |
|
|
$ |
49,547,136 |
|
|
3.0 |
% |
|
10.9 |
% |
|
|||||||||||||||||||
(1) |
Includes $318.1 million, $534.2 million and $2.07 billion of Paycheck Protection Program (“PPP”) loans as of March 31, 2022, December 31, 2021 and March 31, 2021, respectively. Excluding PPP loans, total loans were $43.17 billion, $41.16 billion and $37.52 billion as of March 31, 2022, December 31, 2021 and March 31, 2021, respectively. |
|
(2) |
Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(42.7) million, $(50.7) million and $(76.9) million as of March 31, 2022, December 31, 2021 and March 31, 2021, respectively. |
EAST WEST BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF INCOME |
|||||||||||||||||
($ and shares in thousands, except per share data) |
|||||||||||||||||
(unaudited) |
|||||||||||||||||
Table 3 |
|||||||||||||||||
|
|
||||||||||||||||
|
|
|
Three Months Ended |
|
March 31, 2022
|
||||||||||||
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
Qtr-o-Qtr |
|
Yr-o-Yr |
||||||
Interest and dividend income (1) |
|
$ |
432,029 |
|
$ |
422,708 |
|
|
$ |
381,386 |
|
2.2 |
% |
|
13.3 |
% |
|
Interest expense |
|
|
16,416 |
|
|
17,011 |
|
|
|
27,691 |
|
(3.5 |
) |
|
(40.7 |
) |
|
Net interest income before provision for (reversal of) credit losses |
|
|
415,613 |
|
|
405,697 |
|
|
|
353,695 |
|
2.4 |
|
|
17.5 |
|
|
Provision for (reversal of) credit losses |
|
|
8,000 |
|
|
(10,000 |
) |
|
|
— |
|
(180.0 |
) |
|
100.0 |
|
|
Net interest income after provision for (reversal of) credit losses |
|
|
407,613 |
|
|
415,697 |
|
|
|
353,695 |
|
(1.9 |
) |
|
15.2 |
|
|
Noninterest income |
|
|
79,743 |
|
|
71,489 |
|
|
|
72,866 |
|
11.5 |
|
|
9.4 |
|
|
Noninterest expense |
|
|
189,450 |
|
|
210,105 |
|
|
|
191,077 |
|
(9.8 |
) |
|
(0.9 |
) |
|
Income before income taxes |
|
|
297,906 |
|
|
277,081 |
|
|
|
235,484 |
|
7.5 |
|
|
26.5 |
|
|
Income tax expense |
|
|
60,254 |
|
|
59,285 |
|
|
|
30,490 |
|
1.6 |
|
|
97.6 |
|
|
Net income |
|
$ |
237,652 |
|
$ |
217,796 |
|
|
$ |
204,994 |
|
9.1 |
% |
|
15.9 |
% |
|
Earnings per share (“EPS”) |
|
|
|
|
|
|
|
|
|
|
|||||||
- Basic |
|
$ |
1.67 |
|
$ |
1.53 |
|
|
$ |
1.45 |
|
9.0 |
% |
|
15.6 |
% |
|
- Diluted |
|
$ |
1.66 |
|
$ |
1.52 |
|
|
$ |
1.44 |
|
9.2 |
|
|
15.6 |
|
|
Weighted-average number of shares outstanding |
|
|
|
|
|
|
|
|
|
|
|||||||
- Basic |
|
|
142,025 |
|
|
141,907 |
|
|
|
141,646 |
|
0.1 |
% |
|
0.3 |
% |
|
- Diluted |
|
|
143,223 |
|
|
143,323 |
|
|
|
142,844 |
|
(0.1 |
) |
|
0.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Three Months Ended |
|
March 31, 2022
|
||||||||||||
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
Qtr-o-Qtr |
|
Yr-o-Yr |
||||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Lending fees |
|
$ |
19,438 |
|
$ |
20,739 |
|
|
$ |
18,357 |
|
(6.3 |
) % |
|
5.9 |
% |
|
Deposit account fees |
|
|
20,315 |
|
|
20,028 |
|
|
|
15,383 |
|
1.4 |
|
|
32.1 |
|
|
Interest rate contracts and other derivative income |
|
|
11,133 |
|
|
1,932 |
|
|
|
16,997 |
|
476.2 |
|
|
(34.5 |
) |
|
Foreign exchange income |
|
|
12,699 |
|
|
13,343 |
|
|
|
9,526 |
|
(4.8 |
) |
|
33.3 |
|
|
Wealth management fees |
|
|
6,052 |
|
|
5,291 |
|
|
|
6,911 |
|
14.4 |
|
|
(12.4 |
) |
|
Net gains on sales of loans |
|
|
2,922 |
|
|
2,308 |
|
|
|
1,781 |
|
26.6 |
|
|
64.1 |
|
|
Gains on sales of AFS debt securities |
|
|
1,278 |
|
|
390 |
|
|
|
192 |
|
227.7 |
|
|
565.6 |
|
|
Other investment income |
|
|
1,627 |
|
|
2,982 |
|
|
|
925 |
|
(45.4 |
) |
|
75.9 |
|
|
Other income |
|
|
4,279 |
|
|
4,476 |
|
|
|
2,794 |
|
(4.4 |
) |
|
53.1 |
|
Total noninterest income |
|
$ |
79,743 |
|
$ |
71,489 |
|
|
$ |
72,866 |
|
11.5 |
% |
|
9.4 |
% |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Compensation and employee benefits |
|
$ |
116,269 |
|
$ |
114,743 |
|
|
$ |
107,808 |
|
1.3 |
% |
|
7.8 |
% |
|
Occupancy and equipment expense |
|
|
15,464 |
|
|
15,846 |
|
|
|
15,922 |
|
(2.4 |
) |
|
(2.9 |
) |
|
Deposit insurance premiums and regulatory assessments |
|
|
4,717 |
|
|
4,772 |
|
|
|
3,876 |
|
(1.2 |
) |
|
21.7 |
|
|
Deposit account expense |
|
|
4,693 |
|
|
4,307 |
|
|
|
3,892 |
|
9.0 |
|
|
20.6 |
|
|
Data processing |
|
|
3,665 |
|
|
4,175 |
|
|
|
4,478 |
|
(12.2 |
) |
|
(18.2 |
) |
|
Computer software expense |
|
|
7,294 |
|
|
7,494 |
|
|
|
7,159 |
|
(2.7 |
) |
|
1.9 |
|
|
Consulting expense |
|
|
1,833 |
|
|
1,539 |
|
|
|
1,475 |
|
19.1 |
|
|
24.3 |
|
|
Legal expense |
|
|
718 |
|
|
2,175 |
|
|
|
1,502 |
|
(67.0 |
) |
|
(52.2 |
) |
|
Other operating expense |
|
|
20,897 |
|
|
23,254 |
|
|
|
19,607 |
|
(10.1 |
) |
|
6.6 |
|
|
Amortization of tax credit and other investments |
|
|
13,900 |
|
|
31,800 |
|
|
|
25,358 |
|
(56.3 |
) |
|
(45.2 |
) |
Total noninterest expense |
|
$ |
189,450 |
|
$ |
210,105 |
|
|
$ |
191,077 |
|
(9.8 |
) % |
|
(0.9 |
) % |
|
|
|||||||||||||||||
(1) |
Includes $5.2 million, $9.6 million and $15.0 million of interest income related to PPP loans for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021, respectively. |
EAST WEST BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||||
SELECTED AVERAGE BALANCES |
||||||||||||||||
($ in thousands) |
||||||||||||||||
(unaudited) |
||||||||||||||||
Table 4 |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended |
|
March 31, 2022 % Change |
||||||||||||
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
Qtr-o-Qtr |
|
Yr-o-Yr |
|||||
Loans: |
|
|
|
|
|
|
|
|
|
|
||||||
Commercial: |
|
|
|
|
|
|
|
|
|
|
||||||
|
C&I (1) |
|
$ |
14,271,902 |
|
$ |
13,592,203 |
|
$ |
13,693,869 |
|
5.0 |
% |
|
4.2 |
% |
|
CRE: |
|
|
|
|
|
|
|
|
|
|
|||||
|
CRE |
|
|
12,279,365 |
|
|
11,954,535 |
|
|
11,325,679 |
|
2.7 |
|
|
8.4 |
|
|
Multifamily residential |
|
|
3,749,571 |
|
|
3,434,274 |
|
|
3,042,079 |
|
9.2 |
|
|
23.3 |
|
|
Construction and land |
|
|
392,923 |
|
|
340,940 |
|
|
549,337 |
|
15.2 |
|
|
(28.5 |
) |
|
Total CRE |
|
|
16,421,859 |
|
|
15,729,749 |
|
|
14,917,095 |
|
4.4 |
|
|
10.1 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
||||||
|
Residential mortgage: |
|
|
|
|
|
|
|
|
|
|
|||||
|
Single-family residential |
|
|
9,111,188 |
|
|
9,031,677 |
|
|
8,315,052 |
|
0.9 |
|
|
9.6 |
|
|
HELOCs |
|
|
2,183,080 |
|
|
2,052,383 |
|
|
1,666,233 |
|
6.4 |
|
|
31.0 |
|
|
Total residential mortgage |
|
|
11,294,268 |
|
|
11,084,060 |
|
|
9,981,285 |
|
1.9 |
|
|
13.2 |
|
|
Other consumer |
|
|
124,389 |
|
|
126,557 |
|
|
137,058 |
|
(1.7 |
) |
|
(9.2 |
) |
|
Total loans (2) |
|
$ |
42,112,418 |
|
$ |
40,532,569 |
|
$ |
38,729,307 |
|
3.9 |
% |
|
8.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest-earning assets |
|
$ |
58,692,366 |
|
$ |
58,944,082 |
|
$ |
52,852,045 |
|
(0.4 |
)% |
|
11.1 |
% |
|
Total assets |
|
$ |
61,758,048 |
|
$ |
62,183,137 |
|
$ |
55,594,283 |
|
(0.7 |
)% |
|
11.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
||||||
|
Noninterest-bearing demand |
|
$ |
23,432,746 |
|
$ |
24,019,333 |
|
$ |
18,093,696 |
|
(2.4 |
)% |
|
29.5 |
% |
|
Interest-bearing checking |
|
|
6,648,065 |
|
|
6,462,471 |
|
|
6,393,034 |
|
2.9 |
|
|
4.0 |
|
|
Money market |
|
|
12,913,336 |
|
|
12,920,174 |
|
|
11,573,847 |
|
(0.1 |
) |
|
11.6 |
|
|
Savings |
|
|
2,930,309 |
|
|
2,841,352 |
|
|
2,674,476 |
|
3.1 |
|
|
9.6 |
|
|
Time deposits |
|
|
8,100,890 |
|
|
8,072,917 |
|
|
9,112,662 |
|
0.3 |
|
|
(11.1 |
) |
|
Total deposits |
|
$ |
54,025,346 |
|
$ |
54,316,247 |
|
$ |
47,847,715 |
|
(0.5 |
)% |
|
12.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest-bearing liabilities |
|
$ |
31,218,479 |
|
$ |
31,011,536 |
|
$ |
30,863,568 |
|
0.7 |
% |
|
1.1 |
% |
|
Stockholders’ equity |
|
$ |
5,842,615 |
|
$ |
5,786,237 |
|
$ |
5,338,098 |
|
1.0 |
% |
|
9.5 |
% |
|
|
||||||||||||||||
(1) |
Average balances of PPP loans were $410.6 million, $677.2 million and $1.93 billion for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021, respectively. |
|
(2) |
Includes loans HFS. |
EAST WEST BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||||||
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES |
|||||||||||||||||||||
($ in thousands) |
|||||||||||||||||||||
(unaudited) |
|||||||||||||||||||||
Table 5 |
|||||||||||||||||||||
|
|||||||||||||||||||||
|
|
|
Three Months Ended |
||||||||||||||||||
|
|
|
March 31, 2022 |
|
December 31, 2021 |
||||||||||||||||
|
|
|
Average |
|
|
|
Average |
|
Average |
|
|
|
Average |
||||||||
|
|
|
Balance |
|
Interest |
|
Yield/Rate (1) |
|
Balance |
|
Interest |
|
Yield/Rate (1) |
||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Interest-bearing cash and deposits with banks |
|
$ |
4,466,012 |
|
|
$ |
3,260 |
|
0.30 |
% |
|
$ |
6,050,870 |
|
|
$ |
3,750 |
|
0.25 |
% |
|
Resale agreements |
|
|
2,097,998 |
|
|
|
8,383 |
|
1.62 |
% |
|
|
2,440,636 |
|
|
|
9,162 |
|
1.49 |
% |
|
AFS debt securities |
|
|
7,969,795 |
|
|
|
34,469 |
|
1.75 |
% |
|
|
9,842,691 |
|
|
|
42,367 |
|
1.71 |
% |
|
HTM debt securities |
|
|
1,968,568 |
|
|
|
8,198 |
|
1.69 |
% |
|
|
— |
|
|
|
— |
|
— |
% |
|
Loans (2) |
|
|
42,112,418 |
|
|
|
377,110 |
|
3.63 |
% |
|
|
40,532,569 |
|
|
|
366,936 |
|
3.59 |
% |
|
FHLB and FRB stock |
|
|
77,575 |
|
|
|
609 |
|
3.18 |
% |
|
|
77,316 |
|
|
|
493 |
|
2.53 |
% |
|
Total interest-earning assets |
|
|
58,692,366 |
|
|
|
432,029 |
|
2.99 |
% |
|
|
58,944,082 |
|
|
|
422,708 |
|
2.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Cash and due from banks |
|
|
641,882 |
|
|
|
|
|
|
|
652,126 |
|
|
|
|
|
||||
|
Allowance for loan losses |
|
|
(543,345 |
) |
|
|
|
|
|
|
(558,645 |
) |
|
|
|
|
||||
|
Other assets |
|
|
2,967,145 |
|
|
|
|
|
|
|
3,145,574 |
|
|
|
|
|
||||
|
Total assets |
|
$ |
61,758,048 |
|
|
|
|
|
|
$ |
62,183,137 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Checking deposits |
|
$ |
6,648,065 |
|
|
$ |
1,402 |
|
0.09 |
% |
|
$ |
6,462,471 |
|
|
$ |
1,846 |
|
0.11 |
% |
|
Money market deposits |
|
|
12,913,336 |
|
|
|
3,203 |
|
0.10 |
% |
|
|
12,920,174 |
|
|
|
3,172 |
|
0.10 |
% |
|
Savings deposits |
|
|
2,930,309 |
|
|
|
1,704 |
|
0.24 |
% |
|
|
2,841,352 |
|
|
|
1,734 |
|
0.24 |
% |
|
Time deposits |
|
|
8,100,890 |
|
|
|
6,680 |
|
0.33 |
% |
|
|
8,072,917 |
|
|
|
6,617 |
|
0.33 |
% |
|
Federal funds purchased and other short-term borrowings |
|
|
1,866 |
|
|
|
9 |
|
1.96 |
% |
|
|
730 |
|
|
|
— |
|
— |
% |
|
FHLB advances |
|
|
160,018 |
|
|
|
578 |
|
1.46 |
% |
|
|
249,048 |
|
|
|
856 |
|
1.36 |
% |
|
Repurchase agreements |
|
|
311,984 |
|
|
|
2,016 |
|
2.62 |
% |
|
|
313,075 |
|
|
|
2,018 |
|
2.56 |
% |
|
Long-term debt and finance lease liabilities |
|
|
152,011 |
|
|
|
824 |
|
2.20 |
% |
|
|
151,769 |
|
|
|
768 |
|
2.01 |
% |
|
Total interest-bearing liabilities |
|
|
31,218,479 |
|
|
|
16,416 |
|
0.21 |
% |
|
|
31,011,536 |
|
|
|
17,011 |
|
0.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Noninterest-bearing liabilities and stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Demand deposits |
|
|
23,432,746 |
|
|
|
|
|
|
|
24,019,333 |
|
|
|
|
|
||||
|
Accrued expenses and other liabilities |
|
|
1,264,208 |
|
|
|
|
|
|
|
1,366,031 |
|
|
|
|
|
||||
|
Stockholders’ equity |
|
|
5,842,615 |
|
|
|
|
|
|
|
5,786,237 |
|
|
|
|
|
||||
|
Total liabilities and stockholders’ equity |
|
$ |
61,758,048 |
|
|
|
|
|
|
$ |
62,183,137 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate spread |
|
|
|
|
|
2.78 |
% |
|
|
|
|
|
2.63 |
% |
|||||||
Net interest income and net interest margin |
|
|
|
$ |
415,613 |
|
2.87 |
% |
|
|
|
$ |
405,697 |
|
2.73 |
% |
|||||
|
|||||||||||||||||||||
(1) |
Annualized. |
|
(2) |
Includes loans HFS. Average balances of PPP loans were $410.6 million and $677.2 million for the three months ended March 31, 2022 and December 31, 2021, respectively. |
EAST WEST BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||||||
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES |
|||||||||||||||||||||
($ in thousands) |
|||||||||||||||||||||
(unaudited) |
|||||||||||||||||||||
Table 6 |
|||||||||||||||||||||
|
|||||||||||||||||||||
|
|
Three Months Ended |
|||||||||||||||||||
|
March 31, 2022 |
|
March 31, 2021 |
||||||||||||||||||
|
Average |
|
|
|
Average |
|
Average |
|
|
|
Average |
||||||||||
|
Balance |
|
Interest |
|
Yield/Rate (1) |
|
Balance |
|
Interest |
|
Yield/Rate (1) |
||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Interest-bearing cash and deposits with banks |
|
$ |
4,466,012 |
|
|
$ |
3,260 |
|
0.30 |
% |
|
$ |
6,117,799 |
|
|
$ |
3,632 |
|
0.24 |
% |
|
Resale agreements |
|
|
2,097,998 |
|
|
|
8,383 |
|
1.62 |
% |
|
|
1,461,900 |
|
|
|
6,099 |
|
1.69 |
% |
|
AFS debt securities |
|
|
7,969,795 |
|
|
|
34,469 |
|
1.75 |
% |
|
|
6,459,875 |
|
|
|
29,100 |
|
1.83 |
% |
|
HTM debt securities |
|
|
1,968,568 |
|
|
|
8,198 |
|
1.69 |
% |
|
|
— |
|
|
|
— |
|
— |
% |
|
Loans (2) |
|
|
42,112,418 |
|
|
|
377,110 |
|
3.63 |
% |
|
|
38,729,307 |
|
|
|
342,008 |
|
3.58 |
% |
|
FHLB and FRB stock |
|
|
77,575 |
|
|
|
609 |
|
3.18 |
% |
|
|
83,164 |
|
|
|
547 |
|
2.67 |
% |
|
Total interest-earning assets |
|
|
58,692,366 |
|
|
|
432,029 |
|
2.99 |
% |
|
|
52,852,045 |
|
|
|
381,386 |
|
2.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Cash and due from banks |
|
|
641,882 |
|
|
|
|
|
|
|
580,277 |
|
|
|
|
|
||||
|
Allowance for loan losses |
|
|
(543,345 |
) |
|
|
|
|
|
|
(618,589 |
) |
|
|
|
|
||||
|
Other assets |
|
|
2,967,145 |
|
|
|
|
|
|
|
2,780,550 |
|
|
|
|
|
||||
|
Total assets |
|
$ |
61,758,048 |
|
|
|
|
|
|
$ |
55,594,283 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Checking deposits |
|
$ |
6,648,065 |
|
|
$ |
1,402 |
|
0.09 |
% |
|
$ |
6,393,034 |
|
|
$ |
4,214 |
|
0.27 |
% |
|
Money market deposits |
|
|
12,913,336 |
|
|
|
3,203 |
|
0.10 |
% |
|
|
11,573,847 |
|
|
|
4,711 |
|
0.17 |
% |
|
Savings deposits |
|
|
2,930,309 |
|
|
|
1,704 |
|
0.24 |
% |
|
|
2,674,476 |
|
|
|
1,741 |
|
0.26 |
% |
|
Time deposits |
|
|
8,100,890 |
|
|
|
6,680 |
|
0.33 |
% |
|
|
9,112,662 |
|
|
|
11,156 |
|
0.50 |
% |
|
Federal funds purchased and other short-term borrowings |
|
|
1,866 |
|
|
|
9 |
|
1.96 |
% |
|
|
4,703 |
|
|
|
42 |
|
3.62 |
% |
|
FHLB advances |
|
|
160,018 |
|
|
|
578 |
|
1.46 |
% |
|
|
652,758 |
|
|
|
3,069 |
|
1.91 |
% |
|
Repurchase agreements |
|
|
311,984 |
|
|
|
2,016 |
|
2.62 |
% |
|
|
300,000 |
|
|
|
1,978 |
|
2.67 |
% |
|
Long-term debt and finance lease liabilities |
|
|
152,011 |
|
|
|
824 |
|
2.20 |
% |
|
|
152,088 |
|
|
|
780 |
|
2.08 |
% |
|
Total interest-bearing liabilities |
|
|
31,218,479 |
|
|
|
16,416 |
|
0.21 |
% |
|
|
30,863,568 |
|
|
|
27,691 |
|
0.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Noninterest-bearing liabilities and stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Demand deposits |
|
|
23,432,746 |
|
|
|
|
|
|
|
18,093,696 |
|
|
|
|
|
||||
|
Accrued expenses and other liabilities |
|
|
1,264,208 |
|
|
|
|
|
|
|
1,298,921 |
|
|
|
|
|
||||
|
Stockholders’ equity |
|
|
5,842,615 |
|
|
|
|
|
|
|
5,338,098 |
|
|
|
|
|
||||
|
Total liabilities and stockholders’ equity |
|
$ |
61,758,048 |
|
|
|
|
|
|
$ |
55,594,283 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate spread |
|
|
|
|
|
2.78 |
% |
|
|
|
|
|
2.57 |
% |
|||||||
Net interest income and net interest margin |
|
|
|
$ |
415,613 |
|
2.87 |
% |
|
|
|
$ |
353,695 |
|
2.71 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(1) |
Annualized. |
|
(2) |
Includes loans HFS. Average balances of PPP loans were $410.6 million and $1.93 billion for the three months ended March 31, 2022 and 2021, respectively. |
EAST WEST BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||
SELECTED RATIOS |
|||||||||||||||
(unaudited) |
|||||||||||||||
Table 7 |
|||||||||||||||
|
|||||||||||||||
|
|
Three Months Ended (1) |
|
March 31, 2022 Basis Point Change |
|||||||||||
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
Qtr-o-Qtr |
Yr-o-Yr |
|||||
|
Return on average assets |
|
1.56 |
% |
|
1.39 |
% |
|
1.50 |
% |
|
17 |
bps |
6 |
bps |
|
Return on average equity |
|
16.50 |
% |
|
14.93 |
% |
|
15.57 |
% |
|
157 |
|
93 |
|
|
Return on average tangible equity (2) |
|
18.00 |
% |
|
16.32 |
% |
|
17.17 |
% |
|
168 |
|
83 |
|
|
Interest rate spread |
|
2.78 |
% |
|
2.63 |
% |
|
2.57 |
% |
|
15 |
|
21 |
|
|
Net interest margin |
|
2.87 |
% |
|
2.73 |
% |
|
2.71 |
% |
|
14 |
|
16 |
|
|
Average loan yield |
|
3.63 |
% |
|
3.59 |
% |
|
3.58 |
% |
|
4 |
|
5 |
|
|
Yield on average interest-earning assets |
|
2.99 |
% |
|
2.85 |
% |
|
2.93 |
% |
|
14 |
|
6 |
|
|
Average cost of interest-bearing deposits |
|
0.17 |
% |
|
0.18 |
% |
|
0.30 |
% |
|
(1 |
) |
(13 |
) |
|
Average cost of deposits |
|
0.10 |
% |
|
0.10 |
% |
|
0.18 |
% |
|
— |
|
(8 |
) |
|
Average cost of funds |
|
0.12 |
% |
|
0.12 |
% |
|
0.23 |
% |
|
— |
|
(11 |
) |
|
Adjusted pre-tax, pre-provision profitability ratio (3) |
|
2.10 |
% |
|
1.91 |
% |
|
1.91 |
% |
|
19 |
|
19 |
|
|
Adjusted noninterest expense/average assets (3) |
|
1.15 |
% |
|
1.13 |
% |
|
1.20 |
% |
|
2 |
|
(5 |
) |
|
Efficiency ratio |
|
38.25 |
% |
|
44.03 |
% |
|
44.79 |
% |
|
(578 |
) |
(654 |
) |
|
Adjusted efficiency ratio (3) |
|
35.34 |
% |
|
37.24 |
% |
|
38.68 |
% |
|
(190 |
)bps |
(334 |
)bps |
|
|
|
|
|
|
|
|
|
|
|
|||||
(1) |
Annualized except for efficiency ratio. |
|
(2) |
See reconciliation of GAAP to non-GAAP financial measures in Table 11. |
|
(3) |
See reconciliation of GAAP to non-GAAP financial measures in Table 10. |
EAST WEST BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE SHEET CREDIT EXPOSURES |
||||||||||||||||||||
($ in thousands) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
Table 8 |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
|
Three Months Ended March 31, 2022 |
|||||||||||||||||
|
|
|
Commercial |
|
Consumer |
|
|
|||||||||||||
|
|
|
C&I |
|
Total CRE |
|
Total Residential Mortgage |
|
Other Consumer |
|
Total |
|||||||||
Allowance for loan losses, December 31, 2021 |
|
|
$ |
338,252 |
|
|
$ |
180,808 |
|
|
$ |
20,595 |
|
$ |
1,924 |
|
|
$ |
541,579 |
|
Provision for credit losses on loans |
(a) |
|
|
9,262 |
|
|
|
1,658 |
|
|
|
1,225 |
|
|
107 |
|
|
|
12,252 |
|
Gross charge-offs |
|
|
|
(11,188 |
) |
|
|
(399 |
) |
|
|
— |
|
|
(46 |
) |
|
|
(11,633 |
) |
Gross recoveries |
|
|
|
3,002 |
|
|
|
229 |
|
|
|
138 |
|
|
— |
|
|
|
3,369 |
|
Total net (charge-offs) recoveries |
|
|
|
(8,186 |
) |
|
|
(170 |
) |
|
|
138 |
|
|
(46 |
) |
|
|
(8,264 |
) |
Foreign currency translation adjustment |
|
|
|
118 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
118 |
|
Allowance for loan losses, March 31, 2022 |
|
|
$ |
339,446 |
|
|
$ |
182,296 |
|
|
$ |
21,958 |
|
$ |
1,985 |
|
|
$ |
545,685 |
|
|
||||||||||||||||||||
|
|||||||||||||||||||||
|
|
|
Three Months Ended December 31, 2021 |
||||||||||||||||||
|
|
|
Commercial |
|
Consumer |
|
|
||||||||||||||
|
|
|
C&I |
|
Total CRE |
|
Total Residential Mortgage |
|
Other Consumer |
|
Total |
||||||||||
Allowance for loan losses, September 30, 2021 |
|
|
$ |
342,142 |
|
|
$ |
192,260 |
|
|
$ |
21,684 |
|
|
$ |
4,318 |
|
|
$ |
560,404 |
|
Provision for (reversal of) credit losses on loans |
(a) |
|
|
2,397 |
|
|
|
(9,416 |
) |
|
|
(1,519 |
) |
|
|
(940 |
) |
|
|
(9,478 |
) |
Gross charge-offs |
|
|
|
(12,328 |
) |
|
|
(2,872 |
) |
|
|
— |
|
|
|
(1,454 |
) |
|
|
(16,654 |
) |
Gross recoveries |
|
|
|
5,605 |
|
|
|
836 |
|
|
|
430 |
|
|
|
— |
|
|
|
6,871 |
|
Total net (charge-offs) recoveries |
|
|
|
(6,723 |
) |
|
|
(2,036 |
) |
|
|
430 |
|
|
|
(1,454 |
) |
|
|
(9,783 |
) |
Foreign currency translation adjustment |
|
|
|
436 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
436 |
|
Allowance for loan losses, December 31, 2021 |
|
|
$ |
338,252 |
|
|
$ |
180,808 |
|
|
$ |
20,595 |
|
|
$ |
1,924 |
|
|
$ |
541,579 |
|
|
|||||||||||||||||||||
|
|
|
Three Months Ended March 31, 2021 |
||||||||||||||||||
|
|
|
Commercial |
|
Consumer |
|
|
||||||||||||||
|
|
|
C&I |
|
Total CRE |
|
Total Residential Mortgage |
|
Other Consumer |
|
Total |
||||||||||
Allowance for loan losses, December 31, 2020 |
|
|
$ |
398,040 |
|
|
$ |
201,603 |
|
|
$ |
18,210 |
|
|
$ |
2,130 |
|
|
$ |
619,983 |
|
Provision for (reversal of) credit losses on loans |
(a) |
|
|
3,839 |
|
|
|
(3,076 |
) |
|
|
398 |
|
|
|
(113 |
) |
|
|
1,048 |
|
Gross charge-offs |
|
|
|
(8,436 |
) |
|
|
(7,283 |
) |
|
|
(179 |
) |
|
|
(1 |
) |
|
|
(15,899 |
) |
Gross recoveries |
|
|
|
760 |
|
|
|
1,651 |
|
|
|
80 |
|
|
|
2 |
|
|
|
2,493 |
|
Total net (charge-offs) recoveries |
|
|
|
(7,676 |
) |
|
|
(5,632 |
) |
|
|
(99 |
) |
|
|
1 |
|
|
|
(13,406 |
) |
Foreign currency translation adjustment |
|
|
|
(119 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(119 |
) |
Allowance for loan losses, March 31, 2021 |
|
|
$ |
394,084 |
|
|
$ |
192,895 |
|
|
$ |
18,509 |
|
|
$ |
2,018 |
|
|
$ |
607,506 |
|
|
|||||||||||||||||||||
EAST WEST BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||
ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE SHEET CREDIT EXPOSURES |
|||||||||||||
($ in thousands) |
|||||||||||||
(unaudited) |
|||||||||||||
Table 8 (continued) |
|||||||||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
Three Months Ended |
||||||||||
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
||||||
Unfunded Credit Facilities |
|
|
|
|
|
|
|
||||||
Allowance for unfunded credit commitments, beginning of period (1) |
|
|
$ |
27,514 |
|
|
$ |
28,036 |
|
|
$ |
33,577 |
|
Reversal of credit losses on unfunded credit commitments |
(b) |
|
|
(4,252 |
) |
|
|
(522 |
) |
|
|
(1,048 |
) |
Allowance for unfunded credit commitments, end of period (1) |
|
|
$ |
23,262 |
|
|
$ |
27,514 |
|
|
$ |
32,529 |
|
|
|
|
|
|
|
|
|
||||||
Provision for (reversal of) credit losses |
(a)+(b) |
|
$ |
8,000 |
|
|
$ |
(10,000 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
||||||
(1) |
Included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. |
|
EAST WEST BANCORP, INC. AND SUBSIDIARIES |
||||||||||||
|
CRITICIZED LOANS, NONPERFORMING ASSETS AND CREDIT QUALITY RATIOS |
||||||||||||
|
($ in thousands) |
||||||||||||
|
(unaudited) |
||||||||||||
Table 9 |
|||||||||||||
|
|||||||||||||
Criticized Loans |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|||||||
Special mention loans |
|
$ |
402,704 |
|
|
$ |
384,694 |
|
|
$ |
504,226 |
|
|
Classified loans |
|
|
430,633 |
|
|
|
448,362 |
|
|
|
712,693 |
|
|
Total criticized loans |
|
$ |
833,337 |
|
|
$ |
833,056 |
|
|
$ |
1,216,919 |
|
|
|
|||||||||||||
|
|||||||||||||
|
|||||||||||||
Nonperforming Assets |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|||||||
Nonaccrual loans: |
|
|
|
|
|
|
|||||||
Commercial: |
|
|
|
|
|
|
|||||||
|
C&I |
|
$ |
51,773 |
|
|
$ |
59,023 |
|
|
$ |
125,536 |
|
|
Total CRE |
|
|
9,827 |
|
|
|
9,942 |
|
|
|
74,727 |
|
Consumer: |
|
|
|
|
|
|
|||||||
|
Total residential mortgage |
|
|
23,197 |
|
|
|
24,164 |
|
|
|
29,173 |
|
|
Other consumer |
|
|
37 |
|
|
|
52 |
|
|
|
2,526 |
|
|
Total nonaccrual loans |
|
|
84,834 |
|
|
|
93,181 |
|
|
|
231,962 |
|
Other real estate owned, net |
|
|
— |
|
|
|
363 |
|
|
|
15,824 |
|
|
Other nonperforming assets |
|
|
9,548 |
|
|
|
9,938 |
|
|
|
10,360 |
|
|
|
Total nonperforming assets |
|
$ |
94,382 |
|
|
$ |
103,482 |
|
|
$ |
258,146 |
|
|
|||||||||||||
|
|||||||||||||
|
|||||||||||||
Credit Quality Ratios |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|||||||
Annualized quarterly net charge-offs to average loans HFI |
|
|
0.08 |
% |
|
|
0.10 |
% |
|
|
0.14 |
% |
|
Special mention loans to loans HFI |
|
|
0.93 |
% |
|
|
0.92 |
% |
|
|
1.27 |
% |
|
Classified loans to loans HFI |
|
|
0.99 |
% |
|
|
1.08 |
% |
|
|
1.80 |
% |
|
Criticized loans to loans HFI |
|
|
1.92 |
% |
|
|
2.00 |
% |
|
|
3.07 |
% |
|
Nonperforming assets to total assets |
|
|
0.15 |
% |
|
|
0.17 |
% |
|
|
0.45 |
% |
|
Nonaccrual loans to loans HFI |
|
|
0.20 |
% |
|
|
0.22 |
% |
|
|
0.59 |
% |
|
Allowance for loan losses to loans HFI |
|
|
1.25 |
% |
|
|
1.30 |
% |
|
|
1.53 |
% |
|
|
|||||||||||||
EAST WEST BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||
GAAP TO NON-GAAP RECONCILIATION |
||||||||||||||
($ in thousands) |
||||||||||||||
(unaudited) |
||||||||||||||
Table 10 |
||||||||||||||
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Adjusted efficiency ratio represents adjusted noninterest expense divided by revenue. Adjusted pre-tax, pre-provision profitability ratio represents revenue less adjusted noninterest expense, divided by average total assets. Adjusted noninterest expense excludes the amortization of tax credit and other investments, the amortization of core deposit intangibles and the extinguishment cost on repurchase agreements. Management believes that the measures and ratios presented below provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods. |
||||||||||||||
|
||||||||||||||
|
|
|
|
Three Months Ended |
||||||||||
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
||||||
Net interest income before provision for (reversal of) credit losses |
|
(a) |
|
$ |
415,613 |
|
|
$ |
405,697 |
|
|
$ |
353,695 |
|
Total noninterest income |
|
|
|
|
79,743 |
|
|
|
71,489 |
|
|
|
72,866 |
|
Total revenue |
|
(b) |
|
$ |
495,356 |
|
|
$ |
477,186 |
|
|
$ |
426,561 |
|
|
|
|
|
|
|
|
|
|
||||||
Total noninterest expense |
|
(c) |
|
$ |
189,450 |
|
|
$ |
210,105 |
|
|
$ |
191,077 |
|
Less: Amortization of tax credit and other investments |
|
|
|
|
(13,900 |
) |
|
|
(31,800 |
) |
|
|
(25,358 |
) |
Amortization of core deposit intangibles |
|
|
|
|
(511 |
) |
|
|
(602 |
) |
|
|
(732 |
) |
Adjusted noninterest expense |
|
(d) |
|
$ |
175,039 |
|
|
$ |
177,703 |
|
|
$ |
164,987 |
|
Efficiency ratio |
|
(c)/(b) |
|
|
38.25 |
% |
|
|
44.03 |
% |
|
|
44.79 |
% |
Adjusted efficiency ratio |
|
(d)/(b) |
|
|
35.34 |
% |
|
|
37.24 |
% |
|
|
38.68 |
% |
Adjusted pre-tax, pre-provision income |
|
(b)-(d) = (e) |
|
$ |
320,317 |
|
|
$ |
299,483 |
|
|
$ |
261,574 |
|
Average total assets |
|
(f) |
|
$ |
61,758,048 |
|
|
$ |
62,183,137 |
|
|
$ |
55,594,283 |
|
Adjusted pre-tax, pre-provision profitability ratio (1) |
|
(e)/(f) |
|
|
2.10 |
% |
|
|
1.91 |
% |
|
|
1.91 |
% |
Adjusted noninterest expense/average assets (1) |
|
(d)/(f) |
|
|
1.15 |
% |
|
|
1.13 |
% |
|
|
1.20 |
% |
|
||||||||||||||
(1) |
Annualized. |
EAST WEST BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||
GAAP TO NON-GAAP RECONCILIATION |
||||||||||||||
($ in thousands) |
||||||||||||||
(unaudited) |
||||||||||||||
Table 11 |
|
|
|
|
|
|
|
|
||||||
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible equity and tangible equity to tangible assets ratio are non-GAAP financial measures. Tangible equity and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion. |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
||||||
Stockholders’ equity |
|
(a) |
|
$ |
5,703,456 |
|
|
$ |
5,837,218 |
|
|
$ |
5,285,027 |
|
Less: Goodwill |
|
|
|
|
(465,697 |
) |
|
|
(465,697 |
) |
|
|
(465,697 |
) |
Other intangible assets (1) |
|
|
|
|
(9,044 |
) |
|
|
(9,334 |
) |
|
|
(11,151 |
) |
Tangible equity |
|
(b) |
|
$ |
5,228,715 |
|
|
$ |
5,362,187 |
|
|
$ |
4,808,179 |
|
|
|
|
|
|
|
|
|
|
||||||
Total assets |
|
(c) |
|
$ |
62,241,456 |
|
|
$ |
60,870,701 |
|
|
$ |
56,874,146 |
|
Less: Goodwill |
|
|
|
|
(465,697 |
) |
|
|
(465,697 |
) |
|
|
(465,697 |
) |
Other intangible assets (1) |
|
|
|
|
(9,044 |
) |
|
|
(9,334 |
) |
|
|
(11,151 |
) |
Tangible assets |
|
(d) |
|
$ |
61,766,715 |
|
|
$ |
60,395,670 |
|
|
$ |
56,397,298 |
|
Total stockholders’ equity to total assets ratio |
|
(a)/(c) |
|
|
9.16 |
% |
|
|
9.59 |
% |
|
|
9.29 |
% |
Tangible equity to tangible assets ratio |
|
(b)/(d) |
|
|
8.47 |
% |
|
|
8.88 |
% |
|
|
8.53 |
% |
|
|
|
|
|
|
|
|
|
||||||
Adjusted return on average tangible equity represents tangible net income divided by average tangible equity. Tangible net income excludes the after-tax impacts of the amortization of core deposit intangibles and mortgage servicing assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion. |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
Three Months Ended |
||||||||||
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
||||||
Net income |
|
|
|
$ |
237,652 |
|
|
$ |
217,796 |
|
|
$ |
204,994 |
|
Add: Amortization of core deposit intangibles |
|
|
|
|
511 |
|
|
|
602 |
|
|
|
732 |
|
Amortization of mortgage servicing assets |
|
|
|
|
392 |
|
|
|
415 |
|
|
|
414 |
|
Tax effect of amortization adjustments (2) |
|
|
|
|
(260 |
) |
|
|
(293 |
) |
|
|
(325 |
) |
Tangible net income |
|
(e) |
|
$ |
238,295 |
|
|
$ |
218,520 |
|
|
$ |
205,815 |
|
|
|
|
|
|
|
|
|
|
||||||
Average stockholders’ equity |
|
|
|
$ |
5,842,615 |
|
|
$ |
5,786,237 |
|
|
$ |
5,338,098 |
|
Less: Average goodwill |
|
|
|
|
(465,697 |
) |
|
|
(465,697 |
) |
|
|
(465,697 |
) |
Average other intangible assets (1) |
|
|
|
|
(9,207 |
) |
|
|
(9,611 |
) |
|
|
(11,594 |
) |
Average tangible equity |
|
(f) |
|
$ |
5,367,711 |
|
|
$ |
5,310,929 |
|
|
$ |
4,860,807 |
|
Adjusted return on average tangible equity (3) |
|
(e)/(f) |
|
|
18.00 |
% |
|
|
16.32 |
% |
|
|
17.17 |
% |
|
|
|
|
|
|
|
|
|
||||||
(1) |
Includes core deposit intangibles and mortgage servicing assets. |
|
(2) |
Applied statutory tax rate of 28.77% for the three months ended March 31, 2022 and December 31, 2021, and 28.37% for the three months ended March 31, 2021. |
|
(3) |
Annualized. |
ПАСАДЕНА, Калифорния.-- (BUSINESS WIRE)--East West Bancorp, Inc. (“East West” или “Компания”) (Nasdaq: EWBC), материнская компания East West Bank, сегодня отчиталась о своих финансовых результатах за первый квартал 2022 года. За первый квартал 2022 года чистая прибыль составила 237,7 млн долларов, или 1,66 доллара на разводненную акцию, что на 37% больше по сравнению с предыдущим кварталом в годовом исчислении и на 16% больше по сравнению с аналогичным периодом прошлого года.
“У Ист-Уэста было отличное начало года. Финансовые результаты за первый квартал 2022 года были очень высокими, с ускорением роста кредитов и доходов, а также увеличением чистой процентной маржи на 14 базисных пунктов до 2,87%”, - заявил Доминик Нг, председатель и главный исполнительный директор East West. “По сравнению с предыдущим кварталом наш скорректированный доход до налогообложения и резервов1 в размере 320,3 млн долларов вырос на 28% в годовом исчислении. Наша рентабельность активов за первый квартал 2022 года в размере 1,56% увеличилась на 17 базисных пунктов, а рентабельность собственного капитала в размере 16,5% последовательно увеличилась на 157 базисных пунктов”.
“По состоянию на 31 марта 2022 года общий объем кредитов достиг рекордных 43,5 миллиарда долларов. Без учета влияния кредитов по Программе защиты зарплаты общий объем кредитов вырос на 2,0 миллиарда долларов, или на 20% в годовом исчислении за квартал, что обусловлено ростом коммерческих кредитов. Общий объем депозитов вырос до рекордных 54,9 миллиарда долларов по состоянию на 31 марта 2022 года, увеличившись на 1,6 миллиарда долларов или на 12% в годовом исчислении за квартал, что обусловлено сильным ростом беспроцентных депозитов до востребования. Депозиты до востребования составляли 45% наших депозитов по состоянию на 31 марта 2022 года, по сравнению с 38% год назад”, - продолжил Нг.
“Сила бизнес-модели East West и наша способность работать нашли отражение в наших финансовых достижениях за первый квартал. Наш кредитный портфель хорошо диверсифицирован, наши трубопроводы надежны, качество наших активов остается высоким, а наш баланс хорошо приспособлен к растущим процентным ставкам. Мы оптимистично оцениваем наши перспективы и ожидаем продолжения устойчивого роста и прибыли в 2022 году и далее”, - заключил Нг.
основные финансовые показатели
|
Three Months Ended |
|
Qtr-o-Qtr Change |
|
Yr-o-Yr Change |
|||||||
($ in millions) |
March 31, 2022 |
|
$ |
|
% Ann. |
|
$ |
|
% |
|||
Total Loans (incl. PPP) |
$ 43,491 |
|
$ 1,797 |
17 |
% |
|
$ 3,903 |
10 |
% |
|||
Total Loans (excl. PPP) |
43,173 |
|
2,013 |
20 |
|
|
5,657 |
15 |
|
|||
Total Deposits |
54,938 |
|
1,588 |
12 |
|
|
5,391 |
11 |
|
|||
Total Revenue |
$ 495 |
|
$ 18 |
15 |
% |
|
$ 69 |
16 |
% |
|||
Adj. Pre-tax Pre-provision Income1 |
320 |
|
21 |
28 |
|
|
59 |
22 |
|
|||
Net Income |
238 |
|
20 |
37 |
|
|
33 |
16 |
|
|||
1 See reconciliation of GAAP to non-GAAP financial measures in Table 10. |
2 See reconciliation of GAAP to non-GAAP financial measures in Table 11. |
операционные результаты
Прибыль за первый квартал – Чистая прибыль за первый квартал 2022 года составила $237,7 млн, или $1,66 на разводненную акцию, увеличившись на 9%, или на 37% в годовом исчислении, с $217,8 млн, или $1,52 на разводненную акцию, за четвертый квартал 2021 года, и увеличившись на 16% с $205,0 млн, или 1,44 доллара на разводненную акцию, за первый квартал 2021 года.
Первый квартал 2022 года по сравнению с четвертым кварталом 2021 года
Чистый Процентный доход и Чистая Процентная Маржа
Чистый процентный доход (“NII”) составил 415,6 млн долларов, увеличившись на 10% в годовом исчислении с 405,7 млн долларов. Чистая процентная маржа (“NIM”) в размере 2,87% увеличилась на 14 базисных пунктов с 2,73%.
Незаинтересованный Доход
Непроцентный доход в первом квартале составил 79,7 млн долларов, увеличившись на 8,3 млн долларов, или на 12%, по сравнению с 71,5 млн долларов в четвертом квартале. Комиссионный доход от клиентов и чистая прибыль от продажи кредитов составили 65,0 млн долларов США, увеличившись на 3% за квартал, или на 11% в годовом исчислении, по сравнению с 63,3 млн долларов США в четвертом квартале.
Доход от процентных контрактов (“IRC”) и других производных финансовых инструментов в первом квартале составил 11,1 миллиона долларов по сравнению с 1,9 миллиона долларов в четвертом квартале. Увеличение на 9,2 миллиона долларов по сравнению с предыдущим кварталом было в значительной степени обусловлено благоприятным изменением корректировки оценки кредитоспособности, а также более высоким доходом от IRC, ориентированным на клиентов.
Незаинтересованные Расходы
Непроцентные расходы в первом квартале составили 189,5 млн долларов по сравнению с 210,1 млн долларов в четвертом квартале. Непроцентные расходы за первый квартал составили 175,0 млн. долл. США скорректированных непроцентных расходов3, 13,9 млн. долл. США на амортизацию налоговых льгот и других инвестиций и 0,5 млн. долл. США на амортизацию основных депозитных нематериальных активов.
статьи, связанные с налогообложением
Расходы по налогу на прибыль в первом квартале 2022 года составили 60,3 миллиона долларов, а эффективная налоговая ставка составила 20,2%, по сравнению с расходами по налогу на прибыль в размере 59,3 миллиона долларов и эффективной налоговой ставкой 21,4% за четвертый квартал 2021 года.
Качество активов кредитного портфеля продолжает оставаться высоким.
3 See reconciliation of GAAP to non-GAAP financial measures in Table 10. |
сила капитала
Уровни капитала для East West высоки. В следующей таблице представлены показатели регулятивного капитала по состоянию на 31 марта 2022 года, 31 декабря 2021 года и 31 марта 2021 года.
Коэффициенты Капитала EWBC, основанные на риске
($ in millions) |
|
March 31, 2022 (a) |
|
December 31, 2021 (a) |
|
March 31, 2021 (a) |
|
||||||
CET1 capital ratio |
|
|
12.6 |
% |
|
|
12.8 |
% |
|
|
12.7 |
% |
|
Tier 1 capital ratio |
|
|
12.6 |
% |
|
|
12.8 |
% |
|
|
12.7 |
% |
|
Total capital ratio |
|
|
13.9 |
% |
|
|
14.1 |
% |
|
|
14.3 |
% |
|
Leverage ratio |
|
|
9.3 |
% |
|
|
9.0 |
% |
|
|
9.1 |
% |
|
Risk-Weighted Assets (“RWA”) (b) |
|
$ |
45,405 |
|
|
$ |
43,585 |
|
|
$ |
39,572 |
|
|
(a) |
The Company has elected to use the 2020 CECL transition provision in the calculation of its March 31, 2022, December 31, 2021, and March 31, 2021 regulatory capital ratios. The Company’s March 31, 2022 regulatory capital ratios and RWA are preliminary. |
|
(b) |
Under regulatory guidelines, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories based on the nature of the obligor, or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar value in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total RWA. |
выплата дивидендов и капитальные вложения
Совет директоров East West объявил дивиденды по обыкновенным акциям Компании за второй квартал 2022 года. Дивиденды по обыкновенным акциям в размере 0,40 доллара США на акцию выплачиваются 16 мая 2022 года акционерам record 2 мая 2022 года.
3 марта 2020 года Совет директоров East West санкционировал выкуп обыкновенных акций East West на сумму до 500 миллионов долларов, из которых 354 миллиона долларов остаются доступными. East West не выкупала никаких акций в течение первого квартала 2022 года и не выкупала никаких акций с первого квартала 2020 года в соответствии с этим разрешением.
Конференц-связь
East West проведет телефонную конференцию для обсуждения с общественностью доходов за первый квартал 2022 года в четверг, 21 апреля 2022 года, в 8:30 утра по Гринвичу / 11:30 утра по восточному времени. Общественности и инвестиционному сообществу предлагается послушать, как руководство обсуждает результаты первого квартала 2022 года и операционные изменения.
О Востоке и Западе
East West Bancorp, Inc. является публичной компанией с общим объемом активов в 62,2 миллиарда долларов и торгуется на Nasdaq Global Select Market под символом “EWBC”. Дочерняя компания компании, East West Bank, является крупнейшим независимым банком со штаб-квартирой в Южной Калифорнии и имеет более 120 филиалов в Соединенных Штатах и Китае. Рынки сбыта Компании в Соединенных Штатах включают Калифорнию, Джорджию, Иллинойс, Массачусетс, Неваду, Нью-Йорк, Техас и Вашингтон. В Китае присутствие East West включает филиалы с полным спектром услуг в Гонконге, Шанхае, Шаньтоу и Шэньчжэне, а также представительства в Пекине, Чунцине, Гуанчжоу и Сямыне. Для получения дополнительной информации о East West посетите веб-сайт компании по адресу www.eastwestbank.com .
Прогнозные заявления
Некоторые вопросы, изложенные в настоящем документе (включая любые представленные здесь материалы), содержат заявления прогнозного характера, которые должны быть охвачены безопасной гаванью для таких заявлений, предусмотренной Законом о реформе судебных разбирательств по частным ценным бумагам 1995 года. Кроме того, Компания может делать прогнозные заявления в других документах, которые она подает или предоставляет Комиссии по ценным бумагам и биржам США (“SEC”), а руководство может делать прогнозные заявления аналитикам, инвесторам, представителям СМИ и другим лицам. Прогнозные заявления - это заявления, которые не связаны с историческими фактами и основаны на текущих ожиданиях, оценках и прогнозах относительно отрасли Компании, убеждениях руководства и определенных допущениях, сделанных руководством, многие из которых по своей природе являются неопределенными и неподконтрольными Компании. Эти заявления могут относиться к финансовому состоянию Компании, результатам деятельности, планам, целям, будущей деятельности и /или бизнесу и обычно могут быть идентифицированы с помощью прогнозных формулировок, таких как “ожидает”, “предполагает”, “полагает”, “может”, “продолжает,”может”, “оценки”, “ожидает”, “прогнозы”, “цель”, “намеревается”, “вероятно”, “может”, “может”, “цель”, “планы”, “потенциал”, “проекты”, “остается”, “должен, ”цель“, ”тенденция“, ”будет“, ”будет“ или аналогичные выражения, а также их отрицание. Вы не должны чрезмерно полагаться на эти заявления, поскольку они подвержены рискам и неопределенностям, включая, но не ограничиваясь ими, те, которые описаны в документах, включенных в качестве ссылки. При рассмотрении этих прогнозных заявлений вы должны иметь в виду эти риски и неопределенности, а также любые предостерегающие заявления, которые может сделать Компания. Более того, вы должны рассматривать эти заявления как высказанные только на дату их составления и основанные только на информации, которая на тот момент была фактически известна Компании.
Существует ряд важных факторов, которые могут привести к тому, что будущие результаты будут существенно отличаться от исторических показателей и этих прогнозных заявлений. Факторы, которые могут вызвать подобные различия, включают, но не ограничиваются следующим: изменениями в мировой экономике, в том числе замедление экономического роста, или дестабилизация рынка, уровня инфляции, процентных ставок, цен на жилье, уровня занятости, темпов роста и деловой активности; влияние федерального правительства выключение и неопределенность в отношении федерального правительства лимитом задолженности; изменения в локальных, региональных и глобальных деловых, экономических и политических условий и геополитических событий; экономические, финансовые, репутационные и другие последствия постоянного COVID-19 глобальной пандемией в том числе его вариантов и любые другие пандемии, эпидемии или связанные со здоровьем кризиса, а также ухудшение качества активов и увеличением кредитных потерь из-за COVID-19 глобальной пандемией; изменения в законодательстве или нормативной среды, в том числе регуляторных инициатив в области реформ и политики Министерство финансов США, Федеральной резервной системы, Федеральная корпорация страхования депозитов, управление контролера денежного обращения, ТРЦ, в защите прав потребителей финансовых услуг бюро, и Калифорнийского департамента финансовой защиты и инновационной деятельности; изменения и последствия в торговой, денежно-кредитной и налогово-бюджетной политики и законодательства, в том числе осуществляемых экономических и политических разногласий между США и Китайской Народной Республики и денежно-кредитной политики Федеральной резервной системы; изменения в коммерческих и потребительских рынков недвижимости; изменения в потребительских или коммерческих расходов, сбережений и заимствований привычки, шаблоны и стили; колебания цены акций компании; влияние потенциальных изменений в налоговые законы и правила, расходы федерального бюджета и экономическому стимулированию программ; способность компании эффективно конкурировать против финансовых учреждений в банковской рынков и другими организациями, в том числе в результате возникающих технологий; обоснованность другие финансовые учреждения; успешное и сроках компании по бизнес-стратегии; способность компании удерживать ключевых должностных лиц и сотрудников; воздействие на финансирование расходов, чистого процентного дохода и чистой процентной маржи от изменения ключевых переменных рыночных процентных ставок, конкуренции, нормативным требованиям и ассортимента продукции; изменения в компании, затраты по эксплуатации, соблюдение и расширение; способность компании принимать и успешно внедрять новые технологии в свой бизнес для решения стратегических задач; влияние процентной ставки реформы в США, в том числе переход от доллара Лондонская межбанковская ставка на альтернативные базовые ставки; влияние коммуникаций или технологические проблемы, неисправности или нарушения, компания систем безопасности или инфраструктуры компании, или сторонними поставщиками, с которыми компания ведет бизнес, в том числе в результате кибер-атаки; и другие подобные вопросы, которые могут привести, в числе прочего, конфиденциальную и/или служебную информацию, раскрытие или неправильно и существенно повлиять на способность компании оказывать своим клиентам услуги; адекватность компании по управлению рисками, раскрытия информации, процедур и методов контроля и внутреннего контроля за подготовкой финансовой отчетности; будущие кредитные качество и производительность, в том числе компании по ожиданий в отношении будущих кредитных убытков, и резерва уровнях; влияние неблагоприятных изменений в компанию кредитный рейтинг от ведущих рейтинговых агентств; воздействие неблагоприятных судебных решений или поселения в судебных процессах; влияет на деятельность компании в связи с политическими событиями, эпидемии, войны, общественные беспорядки, терроризм или другие действия, которые могут нарушить или усиливать волатильность ценных бумаг или иначе влияет на бизнес и экономические условия; повышенная регулирования и государственного надзора и контроля бизнес-практики, в том числе в отношениях с потребителями; влияние репутационных рисков от негативной огласки, штрафы, штрафных санкций и других негативных последствий от нарушения нормативных, правовых действий и взаимодействий с бизнес-партнерами, контрагентами, поставщиками услуг и другими третьими сторонами; влияния санкций со стороны регулирующих органов действия; изменения в стандартах бухгалтерского учета, которые могут потребоваться Совет по стандартам финансовой отчетности или другим регулирующим органам и их влияние на данные бухгалтерского учета и предположениях, капитал компании требованиям и его способности генерировать капитал из внутренних или привлекать капитал на выгодных условиях; влияние на ликвидности предприятия в связи с изменениями в компании, возможность получения дивидендов от ДЗО; будущих стратегических приобретений или выбытий; изменения в капитале и долговых ценных бумаг на рынках; колебания валютных курсов; влияние повышенное внимание на социальной, экологической устойчивости и вопросы, которые могут повлиять на деятельность компании, а также своим потребителям и экономике в целом; значительные потрясения или нарушения в столице или финансовых рынков, что может привести, помимо прочего, снижение доступности финансирования в сторону уменьшения или увеличения стоимости фондирования, снижение стоимости активов и/или учету резервов под кредитные убытки по ценным бумагам, проводимых в компании долговые ценные бумаги; а также воздействие изменения климата, природных или техногенных катастроф или стихийных бедствий, таких как лесные пожары, засухи и землетрясения, которые особенно распространены в Калифорнии, или другие события, которые могут прямо или косвенно повлечь за собой негативное влияние на финансовые показатели компании.
Для более подробного обсуждения некоторых факторов, которые могут вызвать такие различия, см. Форму 10-K Компании 2021 года под заголовком Пункт 1A. Факторы риска и информация, изложенные в пункте 1А. Факторы риска в ежеквартальных отчетах Компании по форме 10-Q. Компания не берет на себя и, в частности, отказывается от каких-либо обязательств по обновлению или пересмотру любых прогнозных заявлений, чтобы отразить наступление событий или обстоятельств после даты таких заявлений, за исключением случаев, предусмотренных законом.
East West Bancorp, INC. AND SUBSIDIARIES |
|
|||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEET |
|
|||||||||||||||||||
($ and shares in thousands, except per share data) |
|
|||||||||||||||||||
(unaudited) |
|
|||||||||||||||||||
Table 1 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
March 31, 2022
|
|
||||||||||
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
Qtr-o-Qtr |
|
Yr-o-Yr |
|
||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Cash and due from banks |
|
$ |
571,571 |
|
|
$ |
527,317 |
|
|
$ |
582,270 |
|
|
8.4 |
% |
|
(1.8 |
)% |
|
|
Interest-bearing cash with banks |
|
|
3,277,129 |
|
|
|
3,385,618 |
|
|
|
4,036,863 |
|
|
(3.2 |
) |
|
(18.8 |
) |
|
|
Cash and cash equivalents |
|
|
3,848,700 |
|
|
|
3,912,935 |
|
|
|
4,619,133 |
|
|
(1.6 |
) |
|
(16.7 |
) |
|
|
Interest-bearing deposits with banks |
|
|
816,125 |
|
|
|
736,492 |
|
|
|
741,923 |
|
|
10.8 |
|
|
10.0 |
|
|
|
Assets purchased under resale agreements (“resale agreements”) |
|
|
1,956,822 |
|
|
|
2,353,503 |
|
|
|
2,160,038 |
|
|
(16.9 |
) |
|
(9.4 |
) |
|
|
Available-for-sale (“AFS”) debt securities (amortized cost of $7,091,581, $10,087,179 and $7,904,546) |
|
|
6,729,431 |
|
|
|
9,965,353 |
|
|
|
7,789,213 |
|
|
(32.5 |
) |
|
(13.6 |
) |
|
|
Held-to-maturity (“HTM”) debt securities, at amortized cost (fair value of $2,815,968 in 2022) |
|
|
2,997,702 |
|
|
|
— |
|
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
|
|
Loans held-for-sale (“HFS”) |
|
|
631 |
|
|
|
635 |
|
|
|
— |
|
|
(0.6 |
) |
|
100.0 |
|
|
|
Loans held-for-investment (''HFI'') (net of allowance for loan losses of $545,685, $541,579 and $607,506) |
|
|
42,944,997 |
|
|
|
41,152,202 |
|
|
|
38,981,242 |
|
|
4.4 |
|
|
10.2 |
|
|
|
Investments in qualified affordable housing partnerships, tax credit and other investments, net |
|
|
607,985 |
|
|
|
628,263 |
|
|
|
646,300 |
|
|
(3.2 |
) |
|
(5.9 |
) |
|
|
Goodwill |
|
|
465,697 |
|
|
|
465,697 |
|
|
|
465,697 |
|
|
— |
|
|
— |
|
|
|
Operating lease right-of-use assets |
|
|
102,491 |
|
|
|
98,632 |
|
|
|
94,483 |
|
|
3.9 |
|
|
8.5 |
|
|
|
Other assets |
|
|
1,770,875 |
|
|
|
1,556,989 |
|
|
|
1,376,117 |
|
|
13.7 |
|
|
28.7 |
|
|
|
Total assets |
|
$ |
62,241,456 |
|
|
$ |
60,870,701 |
|
|
$ |
56,874,146 |
|
|
2.3 |
% |
|
9.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Deposits |
|
$ |
54,938,361 |
|
|
$ |
53,350,532 |
|
|
$ |
49,547,136 |
|
|
3.0 |
% |
|
10.9 |
% |
|
|
FHLB advances |
|
|
74,619 |
|
|
|
249,331 |
|
|
|
653,035 |
|
|
(70.1 |
) |
|
(88.6 |
) |
|
|
Assets sold under repurchase agreements (“repurchase agreements”) |
|
|
300,000 |
|
|
|
300,000 |
|
|
|
300,000 |
|
|
— |
|
|
— |
|
|
|
Long-term debt and finance lease liabilities |
|
|
152,227 |
|
|
|
151,997 |
|
|
|
152,195 |
|
|
0.2 |
|
|
0.0 |
|
|
|
Operating lease liabilities |
|
|
109,656 |
|
|
|
105,534 |
|
|
|
101,828 |
|
|
3.9 |
|
|
7.7 |
|
|
|
Accrued expenses and other liabilities |
|
|
963,137 |
|
|
|
876,089 |
|
|
|
834,925 |
|
|
9.9 |
|
|
15.4 |
|
|
|
Total liabilities |
|
|
56,538,000 |
|
|
|
55,033,483 |
|
|
|
51,589,119 |
|
|
2.7 |
|
|
9.6 |
|
|
|
Stockholders’ equity |
|
|
5,703,456 |
|
|
|
5,837,218 |
|
|
|
5,285,027 |
|
|
(2.3 |
) |
|
7.9 |
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
62,241,456 |
|
|
$ |
60,870,701 |
|
|
$ |
56,874,146 |
|
|
2.3 |
% |
|
9.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Book value per common share |
|
$ |
40.09 |
|
|
$ |
41.13 |
|
|
$ |
37.26 |
|
|
(2.5 |
) % |
|
7.6 |
% |
|
|
Tangible equity (1) per common share |
|
$ |
36.76 |
|
|
$ |
37.79 |
|
|
$ |
33.90 |
|
|
(2.7 |
) |
|
8.4 |
|
|
|
Number of common shares at period-end |
|
|
142,257 |
|
|
|
141,908 |
|
|
|
141,843 |
|
|
0.2 |
|
|
0.3 |
|
|
|
Tangible equity to tangible assets ratio (1) |
|
|
8.47 |
% |
|
|
8.88 |
% |
|
|
8.53 |
% |
|
(41 |
) |
bps |
(6 |
)bps |
|
|
|
|
|
|
|
|
||||||||||||||
(1) |
See reconciliation of GAAP to non-GAAP financial measures in Table 11. |
East West Bancorp, INC. AND SUBSIDIARIES |
|||||||||||||||||||
TOTAL LOANS AND DEPOSITS DETAIL |
|||||||||||||||||||
($ in thousands) |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
Table 2 |
|||||||||||||||||||
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
March 31, 2022
|
||||||||||
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
Qtr-o-Qtr |
|
Yr-o-Yr |
||||||||
Loans: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial: |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Commercial and industrial (“C&I”) (1) |
|
$ |
14,838,134 |
|
|
$ |
14,150,608 |
|
|
$ |
14,081,110 |
|
|
4.9 |
% |
|
5.4 |
% |
|
Commercial real estate (“CRE”): |
|
|
|
|
|
|
|
|
|
|
||||||||
|
CRE |
|
|
12,636,787 |
|
|
|
12,155,047 |
|
|
|
11,563,034 |
|
|
4.0 |
|
|
9.3 |
|
|
Multifamily residential |
|
|
3,894,463 |
|
|
|
3,675,605 |
|
|
|
3,066,515 |
|
|
6.0 |
|
|
27.0 |
|
|
Construction and land |
|
|
443,836 |
|
|
|
346,486 |
|
|
|
459,254 |
|
|
28.1 |
|
|
(3.4 |
) |
|
Total CRE |
|
|
16,975,086 |
|
|
|
16,177,138 |
|
|
|
15,088,803 |
|
|
4.9 |
|
|
12.5 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Residential mortgage: |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Single-family residential |
|
|
9,283,429 |
|
|
|
9,093,702 |
|
|
|
8,524,287 |
|
|
2.1 |
|
|
8.9 |
|
|
Home equity lines of credit (“HELOCs”) |
|
|
2,266,634 |
|
|
|
2,144,821 |
|
|
|
1,749,172 |
|
|
5.7 |
|
|
29.6 |
|
|
Total residential mortgage |
|
|
11,550,063 |
|
|
|
11,238,523 |
|
|
|
10,273,459 |
|
|
2.8 |
|
|
12.4 |
|
|
Other consumer |
|
|
127,399 |
|
|
|
127,512 |
|
|
|
145,376 |
|
|
(0.1 |
) |
|
(12.4 |
) |
Total loans HFI (2) |
|
|
43,490,682 |
|
|
|
41,693,781 |
|
|
|
39,588,748 |
|
|
4.3 |
|
|
9.9 |
|
|
Loans HFS |
|
|
631 |
|
|
|
635 |
|
|
|
— |
|
|
(0.6 |
) |
|
100.0 |
|
|
|
Total loans (1)(2) |
|
|
43,491,313 |
|
|
|
41,694,416 |
|
|
|
39,588,748 |
|
|
4.3 |
|
|
9.9 |
|
Allowance for loan losses |
|
|
(545,685 |
) |
|
|
(541,579 |
) |
|
|
(607,506 |
) |
|
0.8 |
|
|
(10.2 |
) |
|
|
Net loans (2) |
|
$ |
42,945,628 |
|
|
$ |
41,152,837 |
|
|
$ |
38,981,242 |
|
|
4.4 |
|
|
10.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Noninterest-bearing demand |
|
$ |
24,927,768 |
|
|
$ |
22,845,464 |
|
|
$ |
18,919,298 |
|
|
9.1 |
% |
|
31.8 |
% |
|
Interest-bearing checking |
|
|
6,774,826 |
|
|
|
6,524,721 |
|
|
|
7,005,693 |
|
|
3.8 |
|
|
(3.3 |
) |
|
Money market |
|
|
12,108,432 |
|
|
|
13,130,300 |
|
|
|
12,218,957 |
|
|
(7.8 |
) |
|
(0.9 |
) |
|
Savings |
|
|
2,897,248 |
|
|
|
2,888,065 |
|
|
|
2,604,355 |
|
|
0.3 |
|
|
11.2 |
|
|
Time deposits |
|
|
8,230,087 |
|
|
|
7,961,982 |
|
|
|
8,798,833 |
|
|
3.4 |
|
|
(6.5 |
) |
|
Total deposits |
|
$ |
54,938,361 |
|
|
$ |
53,350,532 |
|
|
$ |
49,547,136 |
|
|
3.0 |
% |
|
10.9 |
% |
|
|||||||||||||||||||
(1) |
Includes $318.1 million, $534.2 million and $2.07 billion of Paycheck Protection Program (“PPP”) loans as of March 31, 2022, December 31, 2021 and March 31, 2021, respectively. Excluding PPP loans, total loans were $43.17 billion, $41.16 billion and $37.52 billion as of March 31, 2022, December 31, 2021 and March 31, 2021, respectively. |
|
(2) |
Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(42.7) million, $(50.7) million and $(76.9) million as of March 31, 2022, December 31, 2021 and March 31, 2021, respectively. |
East West Bancorp, INC. AND SUBSIDIARIES |
|||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF INCOME |
|||||||||||||||||
($ and shares in thousands, except per share data) |
|||||||||||||||||
(unaudited) |
|||||||||||||||||
Table 3 |
|||||||||||||||||
|
|
||||||||||||||||
|
|
|
Three Months Ended |
|
March 31, 2022
|
||||||||||||
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
Qtr-o-Qtr |
|
Yr-o-Yr |
||||||
Interest and dividend income (1) |
|
$ |
432,029 |
|
$ |
422,708 |
|
|
$ |
381,386 |
|
2.2 |
% |
|
13.3 |
% |
|
Interest expense |
|
|
16,416 |
|
|
17,011 |
|
|
|
27,691 |
|
(3.5 |
) |
|
(40.7 |
) |
|
Net interest income before provision for (reversal of) credit losses |
|
|
415,613 |
|
|
405,697 |
|
|
|
353,695 |
|
2.4 |
|
|
17.5 |
|
|
Provision for (reversal of) credit losses |
|
|
8,000 |
|
|
(10,000 |
) |
|
|
— |
|
(180.0 |
) |
|
100.0 |
|
|
Net interest income after provision for (reversal of) credit losses |
|
|
407,613 |
|
|
415,697 |
|
|
|
353,695 |
|
(1.9 |
) |
|
15.2 |
|
|
Noninterest income |
|
|
79,743 |
|
|
71,489 |
|
|
|
72,866 |
|
11.5 |
|
|
9.4 |
|
|
Noninterest expense |
|
|
189,450 |
|
|
210,105 |
|
|
|
191,077 |
|
(9.8 |
) |
|
(0.9 |
) |
|
Income before income taxes |
|
|
297,906 |
|
|
277,081 |
|
|
|
235,484 |
|
7.5 |
|
|
26.5 |
|
|
Income tax expense |
|
|
60,254 |
|
|
59,285 |
|
|
|
30,490 |
|
1.6 |
|
|
97.6 |
|
|
Net income |
|
$ |
237,652 |
|
$ |
217,796 |
|
|
$ |
204,994 |
|
9.1 |
% |
|
15.9 |
% |
|
Earnings per share (“EPS”) |
|
|
|
|
|
|
|
|
|
|
|||||||
- Basic |
|
$ |
1.67 |
|
$ |
1.53 |
|
|
$ |
1.45 |
|
9.0 |
% |
|
15.6 |
% |
|
- Diluted |
|
$ |
1.66 |
|
$ |
1.52 |
|
|
$ |
1.44 |
|
9.2 |
|
|
15.6 |
|
|
Weighted-average number of shares outstanding |
|
|
|
|
|
|
|
|
|
|
|||||||
- Basic |
|
|
142,025 |
|
|
141,907 |
|
|
|
141,646 |
|
0.1 |
% |
|
0.3 |
% |
|
- Diluted |
|
|
143,223 |
|
|
143,323 |
|
|
|
142,844 |
|
(0.1 |
) |
|
0.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Three Months Ended |
|
March 31, 2022
|
||||||||||||
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
Qtr-o-Qtr |
|
Yr-o-Yr |
||||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Lending fees |
|
$ |
19,438 |
|
$ |
20,739 |
|
|
$ |
18,357 |
|
(6.3 |
) % |
|
5.9 |
% |
|
Deposit account fees |
|
|
20,315 |
|
|
20,028 |
|
|
|
15,383 |
|
1.4 |
|
|
32.1 |
|
|
Interest rate contracts and other derivative income |
|
|
11,133 |
|
|
1,932 |
|
|
|
16,997 |
|
476.2 |
|
|
(34.5 |
) |
|
Foreign exchange income |
|
|
12,699 |
|
|
13,343 |
|
|
|
9,526 |
|
(4.8 |
) |
|
33.3 |
|
|
Wealth management fees |
|
|
6,052 |
|
|
5,291 |
|
|
|
6,911 |
|
14.4 |
|
|
(12.4 |
) |
|
Net gains on sales of loans |
|
|
2,922 |
|
|
2,308 |
|
|
|
1,781 |
|
26.6 |
|
|
64.1 |
|
|
Gains on sales of AFS debt securities |
|
|
1,278 |
|
|
390 |
|
|
|
192 |
|
227.7 |
|
|
565.6 |
|
|
Other investment income |
|
|
1,627 |
|
|
2,982 |
|
|
|
925 |
|
(45.4 |
) |
|
75.9 |
|
|
Other income |
|
|
4,279 |
|
|
4,476 |
|
|
|
2,794 |
|
(4.4 |
) |
|
53.1 |
|
Total noninterest income |
|
$ |
79,743 |
|
$ |
71,489 |
|
|
$ |
72,866 |
|
11.5 |
% |
|
9.4 |
% |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Compensation and employee benefits |
|
$ |
116,269 |
|
$ |
114,743 |
|
|
$ |
107,808 |
|
1.3 |
% |
|
7.8 |
% |
|
Occupancy and equipment expense |
|
|
15,464 |
|
|
15,846 |
|
|
|
15,922 |
|
(2.4 |
) |
|
(2.9 |
) |
|
Deposit insurance premiums and regulatory assessments |
|
|
4,717 |
|
|
4,772 |
|
|
|
3,876 |
|
(1.2 |
) |
|
21.7 |
|
|
Deposit account expense |
|
|
4,693 |
|
|
4,307 |
|
|
|
3,892 |
|
9.0 |
|
|
20.6 |
|
|
Data processing |
|
|
3,665 |
|
|
4,175 |
|
|
|
4,478 |
|
(12.2 |
) |
|
(18.2 |
) |
|
Computer software expense |
|
|
7,294 |
|
|
7,494 |
|
|
|
7,159 |
|
(2.7 |
) |
|
1.9 |
|
|
Consulting expense |
|
|
1,833 |
|
|
1,539 |
|
|
|
1,475 |
|
19.1 |
|
|
24.3 |
|
|
Legal expense |
|
|
718 |
|
|
2,175 |
|
|
|
1,502 |
|
(67.0 |
) |
|
(52.2 |
) |
|
Other operating expense |
|
|
20,897 |
|
|
23,254 |
|
|
|
19,607 |
|
(10.1 |
) |
|
6.6 |
|
|
Amortization of tax credit and other investments |
|
|
13,900 |
|
|
31,800 |
|
|
|
25,358 |
|
(56.3 |
) |
|
(45.2 |
) |
Total noninterest expense |
|
$ |
189,450 |
|
$ |
210,105 |
|
|
$ |
191,077 |
|
(9.8 |
) % |
|
(0.9 |
) % |
|
|
|||||||||||||||||
(1) |
Includes $5.2 million, $9.6 million and $15.0 million of interest income related to PPP loans for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021, respectively. |
East West Bancorp, INC. AND SUBSIDIARIES |
||||||||||||||||
SELECTED AVERAGE BALANCES |
||||||||||||||||
($ in thousands) |
||||||||||||||||
(unaudited) |
||||||||||||||||
Table 4 |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended |
|
March 31, 2022 % Change |
||||||||||||
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
Qtr-o-Qtr |
|
Yr-o-Yr |
|||||
Loans: |
|
|
|
|
|
|
|
|
|
|
||||||
Commercial: |
|
|
|
|
|
|
|
|
|
|
||||||
|
C&I (1) |
|
$ |
14,271,902 |
|
$ |
13,592,203 |
|
$ |
13,693,869 |
|
5.0 |
% |
|
4.2 |
% |
|
CRE: |
|
|
|
|
|
|
|
|
|
|
|||||
|
CRE |
|
|
12,279,365 |
|
|
11,954,535 |
|
|
11,325,679 |
|
2.7 |
|
|
8.4 |
|
|
Multifamily residential |
|
|
3,749,571 |
|
|
3,434,274 |
|
|
3,042,079 |
|
9.2 |
|
|
23.3 |
|
|
Construction and land |
|
|
392,923 |
|
|
340,940 |
|
|
549,337 |
|
15.2 |
|
|
(28.5 |
) |
|
Total CRE |
|
|
16,421,859 |
|
|
15,729,749 |
|
|
14,917,095 |
|
4.4 |
|
|
10.1 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
||||||
|
Residential mortgage: |
|
|
|
|
|
|
|
|
|
|
|||||
|
Single-family residential |
|
|
9,111,188 |
|
|
9,031,677 |
|
|
8,315,052 |
|
0.9 |
|
|
9.6 |
|
|
HELOCs |
|
|
2,183,080 |
|
|
2,052,383 |
|
|
1,666,233 |
|
6.4 |
|
|
31.0 |
|
|
Total residential mortgage |
|
|
11,294,268 |
|
|
11,084,060 |
|
|
9,981,285 |
|
1.9 |
|
|
13.2 |
|
|
Other consumer |
|
|
124,389 |
|
|
126,557 |
|
|
137,058 |
|
(1.7 |
) |
|
(9.2 |
) |
|
Total loans (2) |
|
$ |
42,112,418 |
|
$ |
40,532,569 |
|
$ |
38,729,307 |
|
3.9 |
% |
|
8.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest-earning assets |
|
$ |
58,692,366 |
|
$ |
58,944,082 |
|
$ |
52,852,045 |
|
(0.4 |
)% |
|
11.1 |
% |
|
Total assets |
|
$ |
61,758,048 |
|
$ |
62,183,137 |
|
$ |
55,594,283 |
|
(0.7 |
)% |
|
11.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
||||||
|
Noninterest-bearing demand |
|
$ |
23,432,746 |
|
$ |
24,019,333 |
|
$ |
18,093,696 |
|
(2.4 |
)% |
|
29.5 |
% |
|
Interest-bearing checking |
|
|
6,648,065 |
|
|
6,462,471 |
|
|
6,393,034 |
|
2.9 |
|
|
4.0 |
|
|
Money market |
|
|
12,913,336 |
|
|
12,920,174 |
|
|
11,573,847 |
|
(0.1 |
) |
|
11.6 |
|
|
Savings |
|
|
2,930,309 |
|
|
2,841,352 |
|
|
2,674,476 |
|
3.1 |
|
|
9.6 |
|
|
Time deposits |
|
|
8,100,890 |
|
|
8,072,917 |
|
|
9,112,662 |
|
0.3 |
|
|
(11.1 |
) |
|
Total deposits |
|
$ |
54,025,346 |
|
$ |
54,316,247 |
|
$ |
47,847,715 |
|
(0.5 |
)% |
|
12.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest-bearing liabilities |
|
$ |
31,218,479 |
|
$ |
31,011,536 |
|
$ |
30,863,568 |
|
0.7 |
% |
|
1.1 |
% |
|
Stockholders’ equity |
|
$ |
5,842,615 |
|
$ |
5,786,237 |
|
$ |
5,338,098 |
|
1.0 |
% |
|
9.5 |
% |
|
|
||||||||||||||||
(1) |
Average balances of PPP loans were $410.6 million, $677.2 million and $1.93 billion for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021, respectively. |
|
(2) |
Includes loans HFS. |
East West Bancorp, INC. AND SUBSIDIARIES |
|||||||||||||||||||||
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES |
|||||||||||||||||||||
($ in thousands) |
|||||||||||||||||||||
(unaudited) |
|||||||||||||||||||||
Table 5 |
|||||||||||||||||||||
|
|||||||||||||||||||||
|
|
|
Three Months Ended |
||||||||||||||||||
|
|
|
March 31, 2022 |
|
December 31, 2021 |
||||||||||||||||
|
|
|
Average |
|
|
|
Average |
|
Average |
|
|
|
Average |
||||||||
|
|
|
Balance |
|
Interest |
|
Yield/Rate (1) |
|
Balance |
|
Interest |
|
Yield/Rate (1) |
||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Interest-bearing cash and deposits with banks |
|
$ |
4,466,012 |
|
|
$ |
3,260 |
|
0.30 |
% |
|
$ |
6,050,870 |
|
|
$ |
3,750 |
|
0.25 |
% |
|
Resale agreements |
|
|
2,097,998 |
|
|
|
8,383 |
|
1.62 |
% |
|
|
2,440,636 |
|
|
|
9,162 |
|
1.49 |
% |
|
AFS debt securities |
|
|
7,969,795 |
|
|
|
34,469 |
|
1.75 |
% |
|
|
9,842,691 |
|
|
|
42,367 |
|
1.71 |
% |
|
HTM debt securities |
|
|
1,968,568 |
|
|
|
8,198 |
|
1.69 |
% |
|
|
— |
|
|
|
— |
|
— |
% |
|
Loans (2) |
|
|
42,112,418 |
|
|
|
377,110 |
|
3.63 |
% |
|
|
40,532,569 |
|
|
|
366,936 |
|
3.59 |
% |
|
FHLB and FRB stock |
|
|
77,575 |
|
|
|
609 |
|
3.18 |
% |
|
|
77,316 |
|
|
|
493 |
|
2.53 |
% |
|
Total interest-earning assets |
|
|
58,692,366 |
|
|
|
432,029 |
|
2.99 |
% |
|
|
58,944,082 |
|
|
|
422,708 |
|
2.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Cash and due from banks |
|
|
641,882 |
|
|
|
|
|
|
|
652,126 |
|
|
|
|
|
||||
|
Allowance for loan losses |
|
|
(543,345 |
) |
|
|
|
|
|
|
(558,645 |
) |
|
|
|
|
||||
|
Other assets |
|
|
2,967,145 |
|
|
|
|
|
|
|
3,145,574 |
|
|
|
|
|
||||
|
Total assets |
|
$ |
61,758,048 |
|
|
|
|
|
|
$ |
62,183,137 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Checking deposits |
|
$ |
6,648,065 |
|
|
$ |
1,402 |
|
0.09 |
% |
|
$ |
6,462,471 |
|
|
$ |
1,846 |
|
0.11 |
% |
|
Money market deposits |
|
|
12,913,336 |
|
|
|
3,203 |
|
0.10 |
% |
|
|
12,920,174 |
|
|
|
3,172 |
|
0.10 |
% |
|
Savings deposits |
|
|
2,930,309 |
|
|
|
1,704 |
|
0.24 |
% |
|
|
2,841,352 |
|
|
|
1,734 |
|
0.24 |
% |
|
Time deposits |
|
|
8,100,890 |
|
|
|
6,680 |
|
0.33 |
% |
|
|
8,072,917 |
|
|
|
6,617 |
|
0.33 |
% |
|
Federal funds purchased and other short-term borrowings |
|
|
1,866 |
|
|
|
9 |
|
1.96 |
% |
|
|
730 |
|
|
|
— |
|
— |
% |
|
FHLB advances |
|
|
160,018 |
|
|
|
578 |
|
1.46 |
% |
|
|
249,048 |
|
|
|
856 |
|
1.36 |
% |
|
Repurchase agreements |
|
|
311,984 |
|
|
|
2,016 |
|
2.62 |
% |
|
|
313,075 |
|
|
|
2,018 |
|
2.56 |
% |
|
Long-term debt and finance lease liabilities |
|
|
152,011 |
|
|
|
824 |
|
2.20 |
% |
|
|
151,769 |
|
|
|
768 |
|
2.01 |
% |
|
Total interest-bearing liabilities |
|
|
31,218,479 |
|
|
|
16,416 |
|
0.21 |
% |
|
|
31,011,536 |
|
|
|
17,011 |
|
0.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Noninterest-bearing liabilities and stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Demand deposits |
|
|
23,432,746 |
|
|
|
|
|
|
|
24,019,333 |
|
|
|
|
|
||||
|
Accrued expenses and other liabilities |
|
|
1,264,208 |
|
|
|
|
|
|
|
1,366,031 |
|
|
|
|
|
||||
|
Stockholders’ equity |
|
|
5,842,615 |
|
|
|
|
|
|
|
5,786,237 |
|
|
|
|
|
||||
|
Total liabilities and stockholders’ equity |
|
$ |
61,758,048 |
|
|
|
|
|
|
$ |
62,183,137 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate spread |
|
|
|
|
|
2.78 |
% |
|
|
|
|
|
2.63 |
% |
|||||||
Net interest income and net interest margin |
|
|
|
$ |
415,613 |
|
2.87 |
% |
|
|
|
$ |
405,697 |
|
2.73 |
% |
|||||
|
|||||||||||||||||||||
(1) |
Annualized. |
|
(2) |
Includes loans HFS. Average balances of PPP loans were $410.6 million and $677.2 million for the three months ended March 31, 2022 and December 31, 2021, respectively. |
East West Bancorp, INC. AND SUBSIDIARIES |
|||||||||||||||||||||
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES |
|||||||||||||||||||||
($ in thousands) |
|||||||||||||||||||||
(unaudited) |
|||||||||||||||||||||
Table 6 |
|||||||||||||||||||||
|
|||||||||||||||||||||
|
|
Three Months Ended |
|||||||||||||||||||
|
March 31, 2022 |
|
March 31, 2021 |
||||||||||||||||||
|
Average |
|
|
|
Average |
|
Average |
|
|
|
Average |
||||||||||
|
Balance |
|
Interest |
|
Yield/Rate (1) |
|
Balance |
|
Interest |
|
Yield/Rate (1) |
||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Interest-bearing cash and deposits with banks |
|
$ |
4,466,012 |
|
|
$ |
3,260 |
|
0.30 |
% |
|
$ |
6,117,799 |
|
|
$ |
3,632 |
|
0.24 |
% |
|
Resale agreements |
|
|
2,097,998 |
|
|
|
8,383 |
|
1.62 |
% |
|
|
1,461,900 |
|
|
|
6,099 |
|
1.69 |
% |
|
AFS debt securities |
|
|
7,969,795 |
|
|
|
34,469 |
|
1.75 |
% |
|
|
6,459,875 |
|
|
|
29,100 |
|
1.83 |
% |
|
HTM debt securities |
|
|
1,968,568 |
|
|
|
8,198 |
|
1.69 |
% |
|
|
— |
|
|
|
— |
|
— |
% |
|
Loans (2) |
|
|
42,112,418 |
|
|
|
377,110 |
|
3.63 |
% |
|
|
38,729,307 |
|
|
|
342,008 |
|
3.58 |
% |
|
FHLB and FRB stock |
|
|
77,575 |
|
|
|
609 |
|
3.18 |
% |
|
|
83,164 |
|
|
|
547 |
|
2.67 |
% |
|
Total interest-earning assets |
|
|
58,692,366 |
|
|
|
432,029 |
|
2.99 |
% |
|
|
52,852,045 |
|
|
|
381,386 |
|
2.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Cash and due from banks |
|
|
641,882 |
|
|
|
|
|
|
|
580,277 |
|
|
|
|
|
||||
|
Allowance for loan losses |
|
|
(543,345 |
) |
|
|
|
|
|
|
(618,589 |
) |
|
|
|
|
||||
|
Other assets |
|
|
2,967,145 |
|
|
|
|
|
|
|
2,780,550 |
|
|
|
|
|
||||
|
Total assets |
|
$ |
61,758,048 |
|
|
|
|
|
|
$ |
55,594,283 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Checking deposits |
|
$ |
6,648,065 |
|
|
$ |
1,402 |
|
0.09 |
% |
|
$ |
6,393,034 |
|
|
$ |
4,214 |
|
0.27 |
% |
|
Money market deposits |
|
|
12,913,336 |
|
|
|
3,203 |
|
0.10 |
% |
|
|
11,573,847 |
|
|
|
4,711 |
|
0.17 |
% |
|
Savings deposits |
|
|
2,930,309 |
|
|
|
1,704 |
|
0.24 |
% |
|
|
2,674,476 |
|
|
|
1,741 |
|
0.26 |
% |
|
Time deposits |
|
|
8,100,890 |
|
|
|
6,680 |
|
0.33 |
% |
|
|
9,112,662 |
|
|
|
11,156 |
|
0.50 |
% |
|
Federal funds purchased and other short-term borrowings |
|
|
1,866 |
|
|
|
9 |
|
1.96 |
% |
|
|
4,703 |
|
|
|
42 |
|
3.62 |
% |
|
FHLB advances |
|
|
160,018 |
|
|
|
578 |
|
1.46 |
% |
|
|
652,758 |
|
|
|
3,069 |
|
1.91 |
% |
|
Repurchase agreements |
|
|
311,984 |
|
|
|
2,016 |
|
2.62 |
% |
|
|
300,000 |
|
|
|
1,978 |
|
2.67 |
% |
|
Long-term debt and finance lease liabilities |
|
|
152,011 |
|
|
|
824 |
|
2.20 |
% |
|
|
152,088 |
|
|
|
780 |
|
2.08 |
% |
|
Total interest-bearing liabilities |
|
|
31,218,479 |
|
|
|
16,416 |
|
0.21 |
% |
|
|
30,863,568 |
|
|
|
27,691 |
|
0.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Noninterest-bearing liabilities and stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Demand deposits |
|
|
23,432,746 |
|
|
|
|
|
|
|
18,093,696 |
|
|
|
|
|
||||
|
Accrued expenses and other liabilities |
|
|
1,264,208 |
|
|
|
|
|
|
|
1,298,921 |
|
|
|
|
|
||||
|
Stockholders’ equity |
|
|
5,842,615 |
|
|
|
|
|
|
|
5,338,098 |
|
|
|
|
|
||||
|
Total liabilities and stockholders’ equity |
|
$ |
61,758,048 |
|
|
|
|
|
|
$ |
55,594,283 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate spread |
|
|
|
|
|
2.78 |
% |
|
|
|
|
|
2.57 |
% |
|||||||
Net interest income and net interest margin |
|
|
|
$ |
415,613 |
|
2.87 |
% |
|
|
|
$ |
353,695 |
|
2.71 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(1) |
Annualized. |
|
(2) |
Includes loans HFS. Average balances of PPP loans were $410.6 million and $1.93 billion for the three months ended March 31, 2022 and 2021, respectively. |
East West Bancorp, INC. AND SUBSIDIARIES |
|||||||||||||||
SELECTED RATIOS |
|||||||||||||||
(unaudited) |
|||||||||||||||
Table 7 |
|||||||||||||||
|
|||||||||||||||
|
|
Three Months Ended (1) |
|
March 31, 2022 Basis Point Change |
|||||||||||
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
Qtr-o-Qtr |
Yr-o-Yr |
|||||
|
Return on average assets |
|
1.56 |
% |
|
1.39 |
% |
|
1.50 |
% |
|
17 |
bps |
6 |
bps |
|
Return on average equity |
|
16.50 |
% |
|
14.93 |
% |
|
15.57 |
% |
|
157 |
|
93 |
|
|
Return on average tangible equity (2) |
|
18.00 |
% |
|
16.32 |
% |
|
17.17 |
% |
|
168 |
|
83 |
|
|
Interest rate spread |
|
2.78 |
% |
|
2.63 |
% |
|
2.57 |
% |
|
15 |
|
21 |
|
|
Net interest margin |
|
2.87 |
% |
|
2.73 |
% |
|
2.71 |
% |
|
14 |
|
16 |
|
|
Average loan yield |
|
3.63 |
% |
|
3.59 |
% |
|
3.58 |
% |
|
4 |
|
5 |
|
|
Yield on average interest-earning assets |
|
2.99 |
% |
|
2.85 |
% |
|
2.93 |
% |
|
14 |
|
6 |
|
|
Average cost of interest-bearing deposits |
|
0.17 |
% |
|
0.18 |
% |
|
0.30 |
% |
|
(1 |
) |
(13 |
) |
|
Average cost of deposits |
|
0.10 |
% |
|
0.10 |
% |
|
0.18 |
% |
|
— |
|
(8 |
) |
|
Average cost of funds |
|
0.12 |
% |
|
0.12 |
% |
|
0.23 |
% |
|
— |
|
(11 |
) |
|
Adjusted pre-tax, pre-provision profitability ratio (3) |
|
2.10 |
% |
|
1.91 |
% |
|
1.91 |
% |
|
19 |
|
19 |
|
|
Adjusted noninterest expense/average assets (3) |
|
1.15 |
% |
|
1.13 |
% |
|
1.20 |
% |
|
2 |
|
(5 |
) |
|
Efficiency ratio |
|
38.25 |
% |
|
44.03 |
% |
|
44.79 |
% |
|
(578 |
) |
(654 |
) |
|
Adjusted efficiency ratio (3) |
|
35.34 |
% |
|
37.24 |
% |
|
38.68 |
% |
|
(190 |
)bps |
(334 |
)bps |
|
|
|
|
|
|
|
|
|
|
|
|||||
(1) |
Annualized except for efficiency ratio. |
|
(2) |
See reconciliation of GAAP to non-GAAP financial measures in Table 11. |
|
(3) |
See reconciliation of GAAP to non-GAAP financial measures in Table 10. |
East West Bancorp, INC. AND SUBSIDIARIES |
||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE SHEET CREDIT EXPOSURES |
||||||||||||||||||||
($ in thousands) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
Table 8 |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
|
Three Months Ended March 31, 2022 |
|||||||||||||||||
|
|
|
Commercial |
|
Consumer |
|
|
|||||||||||||
|
|
|
C&I |
|
Total CRE |
|
Total Residential Mortgage |
|
Other Consumer |
|
Total |
|||||||||
Allowance for loan losses, December 31, 2021 |
|
|
$ |
338,252 |
|
|
$ |
180,808 |
|
|
$ |
20,595 |
|
$ |
1,924 |
|
|
$ |
541,579 |
|
Provision for credit losses on loans |
(a) |
|
|
9,262 |
|
|
|
1,658 |
|
|
|
1,225 |
|
|
107 |
|
|
|
12,252 |
|
Gross charge-offs |
|
|
|
(11,188 |
) |
|
|
(399 |
) |
|
|
— |
|
|
(46 |
) |
|
|
(11,633 |
) |
Gross recoveries |
|
|
|
3,002 |
|
|
|
229 |
|
|
|
138 |
|
|
— |
|
|
|
3,369 |
|
Total net (charge-offs) recoveries |
|
|
|
(8,186 |
) |
|
|
(170 |
) |
|
|
138 |
|
|
(46 |
) |
|
|
(8,264 |
) |
Foreign currency translation adjustment |
|
|
|
118 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
118 |
|
Allowance for loan losses, March 31, 2022 |
|
|
$ |
339,446 |
|
|
$ |
182,296 |
|
|
$ |
21,958 |
|
$ |
1,985 |
|
|
$ |
545,685 |
|
|
||||||||||||||||||||
|
|||||||||||||||||||||
|
|
|
Three Months Ended December 31, 2021 |
||||||||||||||||||
|
|
|
Commercial |
|
Consumer |
|
|
||||||||||||||
|
|
|
C&I |
|
Total CRE |
|
Total Residential Mortgage |
|
Other Consumer |
|
Total |
||||||||||
Allowance for loan losses, September 30, 2021 |
|
|
$ |
342,142 |
|
|
$ |
192,260 |
|
|
$ |
21,684 |
|
|
$ |
4,318 |
|
|
$ |
560,404 |
|
Provision for (reversal of) credit losses on loans |
(a) |
|
|
2,397 |
|
|
|
(9,416 |
) |
|
|
(1,519 |
) |
|
|
(940 |
) |
|
|
(9,478 |
) |
Gross charge-offs |
|
|
|
(12,328 |
) |
|
|
(2,872 |
) |
|
|
— |
|
|
|
(1,454 |
) |
|
|
(16,654 |
) |
Gross recoveries |
|
|
|
5,605 |
|
|
|
836 |
|
|
|
430 |
|
|
|
— |
|
|
|
6,871 |
|
Total net (charge-offs) recoveries |
|
|
|
(6,723 |
) |
|
|
(2,036 |
) |
|
|
430 |
|
|
|
(1,454 |
) |
|
|
(9,783 |
) |
Foreign currency translation adjustment |
|
|
|
436 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
436 |
|
Allowance for loan losses, December 31, 2021 |
|
|
$ |
338,252 |
|
|
$ |
180,808 |
|
|
$ |
20,595 |
|
|
$ |
1,924 |
|
|
$ |
541,579 |
|
|
|||||||||||||||||||||
|
|
|
Three Months Ended March 31, 2021 |
||||||||||||||||||
|
|
|
Commercial |
|
Consumer |
|
|
||||||||||||||
|
|
|
C&I |
|
Total CRE |
|
Total Residential Mortgage |
|
Other Consumer |
|
Total |
||||||||||
Allowance for loan losses, December 31, 2020 |
|
|
$ |
398,040 |
|
|
$ |
201,603 |
|
|
$ |
18,210 |
|
|
$ |
2,130 |
|
|
$ |
619,983 |
|
Provision for (reversal of) credit losses on loans |
(a) |
|
|
3,839 |
|
|
|
(3,076 |
) |
|
|
398 |
|
|
|
(113 |
) |
|
|
1,048 |
|
Gross charge-offs |
|
|
|
(8,436 |
) |
|
|
(7,283 |
) |
|
|
(179 |
) |
|
|
(1 |
) |
|
|
(15,899 |
) |
Gross recoveries |
|
|
|
760 |
|
|
|
1,651 |
|
|
|
80 |
|
|
|
2 |
|
|
|
2,493 |
|
Total net (charge-offs) recoveries |
|
|
|
(7,676 |
) |
|
|
(5,632 |
) |
|
|
(99 |
) |
|
|
1 |
|
|
|
(13,406 |
) |
Foreign currency translation adjustment |
|
|
|
(119 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(119 |
) |
Allowance for loan losses, March 31, 2021 |
|
|
$ |
394,084 |
|
|
$ |
192,895 |
|
|
$ |
18,509 |
|
|
$ |
2,018 |
|
|
$ |
607,506 |
|
|
|||||||||||||||||||||
East West Bancorp, INC. AND SUBSIDIARIES |
|||||||||||||
ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE SHEET CREDIT EXPOSURES |
|||||||||||||
($ in thousands) |
|||||||||||||
(unaudited) |
|||||||||||||
Table 8 (continued) |
|||||||||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
Three Months Ended |
||||||||||
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
||||||
Unfunded Credit Facilities |
|
|
|
|
|
|
|
||||||
Allowance for unfunded credit commitments, beginning of period (1) |
|
|
$ |
27,514 |
|
|
$ |
28,036 |
|
|
$ |
33,577 |
|
Reversal of credit losses on unfunded credit commitments |
(b) |
|
|
(4,252 |
) |
|
|
(522 |
) |
|
|
(1,048 |
) |
Allowance for unfunded credit commitments, end of period (1) |
|
|
$ |
23,262 |
|
|
$ |
27,514 |
|
|
$ |
32,529 |
|
|
|
|
|
|
|
|
|
||||||
Provision for (reversal of) credit losses |
(a)+(b) |
|
$ |
8,000 |
|
|
$ |
(10,000 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
||||||
(1) |
Included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. |
|
East West Bancorp, INC. AND SUBSIDIARIES |
||||||||||||
|
CRITICIZED LOANS, NONPERFORMING ASSETS AND CREDIT QUALITY RATIOS |
||||||||||||
|
($ in thousands) |
||||||||||||
|
(unaudited) |
||||||||||||
Table 9 |
|||||||||||||
|
|||||||||||||
Criticized Loans |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|||||||
Special mention loans |
|
$ |
402,704 |
|
|
$ |
384,694 |
|
|
$ |
504,226 |
|
|
Classified loans |
|
|
430,633 |
|
|
|
448,362 |
|
|
|
712,693 |
|
|
Total criticized loans |
|
$ |
833,337 |
|
|
$ |
833,056 |
|
|
$ |
1,216,919 |
|
|
|
|||||||||||||
|
|||||||||||||
|
|||||||||||||
Nonperforming Assets |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|||||||
Nonaccrual loans: |
|
|
|
|
|
|
|||||||
Commercial: |
|
|
|
|
|
|
|||||||
|
C&I |
|
$ |
51,773 |
|
|
$ |
59,023 |
|
|
$ |
125,536 |
|
|
Total CRE |
|
|
9,827 |
|
|
|
9,942 |
|
|
|
74,727 |
|
Consumer: |
|
|
|
|
|
|
|||||||
|
Total residential mortgage |
|
|
23,197 |
|
|
|
24,164 |
|
|
|
29,173 |
|
|
Other consumer |
|
|
37 |
|
|
|
52 |
|
|
|
2,526 |
|
|
Total nonaccrual loans |
|
|
84,834 |
|
|
|
93,181 |
|
|
|
231,962 |
|
Other real estate owned, net |
|
|
— |
|
|
|
363 |
|
|
|
15,824 |
|
|
Other nonperforming assets |
|
|
9,548 |
|
|
|
9,938 |
|
|
|
10,360 |
|
|
|
Total nonperforming assets |
|
$ |
94,382 |
|
|
$ |
103,482 |
|
|
$ |
258,146 |
|
|
|||||||||||||
|
|||||||||||||
|
|||||||||||||
Credit Quality Ratios |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|||||||
Annualized quarterly net charge-offs to average loans HFI |
|
|
0.08 |
% |
|
|
0.10 |
% |
|
|
0.14 |
% |
|
Special mention loans to loans HFI |
|
|
0.93 |
% |
|
|
0.92 |
% |
|
|
1.27 |
% |
|
Classified loans to loans HFI |
|
|
0.99 |
% |
|
|
1.08 |
% |
|
|
1.80 |
% |
|
Criticized loans to loans HFI |
|
|
1.92 |
% |
|
|
2.00 |
% |
|
|
3.07 |
% |
|
Nonperforming assets to total assets |
|
|
0.15 |
% |
|
|
0.17 |
% |
|
|
0.45 |
% |
|
Nonaccrual loans to loans HFI |
|
|
0.20 |
% |
|
|
0.22 |
% |
|
|
0.59 |
% |
|
Allowance for loan losses to loans HFI |
|
|
1.25 |
% |
|
|
1.30 |
% |
|
|
1.53 |
% |
|
|
|||||||||||||
East West Bancorp, INC. AND SUBSIDIARIES |
||||||||||||||
GAAP TO NON-GAAP RECONCILIATION |
||||||||||||||
($ in thousands) |
||||||||||||||
(unaudited) |
||||||||||||||
Table 10 |
||||||||||||||
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Adjusted efficiency ratio represents adjusted noninterest expense divided by revenue. Adjusted pre-tax, pre-provision profitability ratio represents revenue less adjusted noninterest expense, divided by average total assets. Adjusted noninterest expense excludes the amortization of tax credit and other investments, the amortization of core deposit intangibles and the extinguishment cost on repurchase agreements. Management believes that the measures and ratios presented below provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods. |
||||||||||||||
|
||||||||||||||
|
|
|
|
Three Months Ended |
||||||||||
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
||||||
Net interest income before provision for (reversal of) credit losses |
|
(a) |
|
$ |
415,613 |
|
|
$ |
405,697 |
|
|
$ |
353,695 |
|
Total noninterest income |
|
|
|
|
79,743 |
|
|
|
71,489 |
|
|
|
72,866 |
|
Total revenue |
|
(b) |
|
$ |
495,356 |
|
|
$ |
477,186 |
|
|
$ |
426,561 |
|
|
|
|
|
|
|
|
|
|
||||||
Total noninterest expense |
|
(c) |
|
$ |
189,450 |
|
|
$ |
210,105 |
|
|
$ |
191,077 |
|
Less: Amortization of tax credit and other investments |
|
|
|
|
(13,900 |
) |
|
|
(31,800 |
) |
|
|
(25,358 |
) |
Amortization of core deposit intangibles |
|
|
|
|
(511 |
) |
|
|
(602 |
) |
|
|
(732 |
) |
Adjusted noninterest expense |
|
(d) |
|
$ |
175,039 |
|
|
$ |
177,703 |
|
|
$ |
164,987 |
|
Efficiency ratio |
|
(c)/(b) |
|
|
38.25 |
% |
|
|
44.03 |
% |
|
|
44.79 |
% |
Adjusted efficiency ratio |
|
(d)/(b) |
|
|
35.34 |
% |
|
|
37.24 |
% |
|
|
38.68 |
% |
Adjusted pre-tax, pre-provision income |
|
(b)-(d) = (e) |
|
$ |
320,317 |
|
|
$ |
299,483 |
|
|
$ |
261,574 |
|
Average total assets |
|
(f) |
|
$ |
61,758,048 |
|
|
$ |
62,183,137 |
|
|
$ |
55,594,283 |
|
Adjusted pre-tax, pre-provision profitability ratio (1) |
|
(e)/(f) |
|
|
2.10 |
% |
|
|
1.91 |
% |
|
|
1.91 |
% |
Adjusted noninterest expense/average assets (1) |
|
(d)/(f) |
|
|
1.15 |
% |
|
|
1.13 |
% |
|
|
1.20 |
% |
|
||||||||||||||
(1) |
Annualized. |
East West Bancorp, INC. AND SUBSIDIARIES |
||||||||||||||
GAAP TO NON-GAAP RECONCILIATION |
||||||||||||||
($ in thousands) |
||||||||||||||
(unaudited) |
||||||||||||||
Table 11 |
|
|
|
|
|
|
|
|
||||||
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible equity and tangible equity to tangible assets ratio are non-GAAP financial measures. Tangible equity and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion. |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
||||||
Stockholders’ equity |
|
(a) |
|
$ |
5,703,456 |
|
|
$ |
5,837,218 |
|
|
$ |
5,285,027 |
|
Less: Goodwill |
|
|
|
|
(465,697 |
) |
|
|
(465,697 |
) |
|
|
(465,697 |
) |
Other intangible assets (1) |
|
|
|
|
(9,044 |
) |
|
|
(9,334 |
) |
|
|
(11,151 |
) |
Tangible equity |
|
(b) |
|
$ |
5,228,715 |
|
|
$ |
5,362,187 |
|
|
$ |
4,808,179 |
|
|
|
|
|
|
|
|
|
|
||||||
Total assets |
|
(c) |
|
$ |
62,241,456 |
|
|
$ |
60,870,701 |
|
|
$ |
56,874,146 |
|
Less: Goodwill |
|
|
|
|
(465,697 |
) |
|
|
(465,697 |
) |
|
|
(465,697 |
) |
Other intangible assets (1) |
|
|
|
|
(9,044 |
) |
|
|
(9,334 |
) |
|
|
(11,151 |
) |
Tangible assets |
|
(d) |
|
$ |
61,766,715 |
|
|
$ |
60,395,670 |
|
|
$ |
56,397,298 |
|
Total stockholders’ equity to total assets ratio |
|
(a)/(c) |
|
|
9.16 |
% |
|
|
9.59 |
% |
|
|
9.29 |
% |
Tangible equity to tangible assets ratio |
|
(b)/(d) |
|
|
8.47 |
% |
|
|
8.88 |
% |
|
|
8.53 |
% |
|
|
|
|
|
|
|
|
|
||||||
Adjusted return on average tangible equity represents tangible net income divided by average tangible equity. Tangible net income excludes the after-tax impacts of the amortization of core deposit intangibles and mortgage servicing assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion. |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
Three Months Ended |
||||||||||
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
||||||
Net income |
|
|
|
$ |
237,652 |
|
|
$ |
217,796 |
|
|
$ |
204,994 |
|
Add: Amortization of core deposit intangibles |
|
|
|
|
511 |
|
|
|
602 |
|
|
|
732 |
|
Amortization of mortgage servicing assets |
|
|
|
|
392 |
|
|
|
415 |
|
|
|
414 |
|
Tax effect of amortization adjustments (2) |
|
|
|
|
(260 |
) |
|
|
(293 |
) |
|
|
(325 |
) |
Tangible net income |
|
(e) |
|
$ |
238,295 |
|
|
$ |
218,520 |
|
|
$ |
205,815 |
|
|
|
|
|
|
|
|
|
|
||||||
Average stockholders’ equity |
|
|
|
$ |
5,842,615 |
|
|
$ |
5,786,237 |
|
|
$ |
5,338,098 |
|
Less: Average goodwill |
|
|
|
|
(465,697 |
) |
|
|
(465,697 |
) |
|
|
(465,697 |
) |
Average other intangible assets (1) |
|
|
|
|
(9,207 |
) |
|
|
(9,611 |
) |
|
|
(11,594 |
) |
Average tangible equity |
|
(f) |
|
$ |
5,367,711 |
|
|
$ |
5,310,929 |
|
|
$ |
4,860,807 |
|
Adjusted return on average tangible equity (3) |
|
(e)/(f) |
|
|
18.00 |
% |
|
|
16.32 |
% |
|
|
17.17 |
% |
|
|
|
|
|
|
|
|
|
||||||
(1) |
Includes core deposit intangibles and mortgage servicing assets. |
|
(2) |
Applied statutory tax rate of 28.77% for the three months ended March 31, 2022 and December 31, 2021, and 28.37% for the three months ended March 31, 2021. |
|
(3) |
Annualized. |
