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Section 1: 8-K (8-K)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
  
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported)
January 24, 2019

EAST WEST BANCORP, INC.
(Exact name of registrant as specified in its charter)



Delaware
 
000-24939
 
95-4703316
(State or other jurisdiction of incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No.)
 
135 N Los Robles Ave., 7th Floor, Pasadena, California 91101
(Address of principal executive offices) (Zip code)
 
(626) 768-6000
(Registrant’s telephone number, including area code)
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨                                 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨






1






Item 2.02. Results of Operations and Financial Condition
 
On January 24, 2019, East West Bancorp, Inc. (the “Company”) announced, via press release, its financial results for the quarter and full year ended December 31, 2018 (the “Press Release”). The Press Release is available on the Company’s website. The Press Release is “furnished” as Exhibit 99.1 to this Current Report on Form 8-K pursuant to General Instruction B.2 of Form 8-K and the information provided in Item 2.02 of this report, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities under that Section. The information provided in Item 2.02 of this report, including Exhibit 99.1, shall not be deemed incorporated by reference into any filings the Company has made or may make under the Securities Act of 1933 (the “Securities Act”) or the Exchange Act, except as otherwise expressly stated in such filing.

Item 7.01. Regulation FD Disclosure

On January 24, 2019, the Company will hold a conference call to discuss its financial results for the quarter and full year ended December 31, 2018, including the Press Release and other matters relating to the Company. The Company has also made available on its website presentation materials containing certain historical and forward-looking information relating to the Company (the “Presentation Materials”). The Presentation Materials are furnished as Exhibit 99.2 and are incorporated by reference in this Item 7.01. All information in Exhibit 99.2 is presented as of the particular date or dates referenced therein, and the Company does not undertake any obligation to, and disclaims any duty to, update any of the information provided. The information provided in Item 7.01 of this report, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that Section, nor shall the information or Exhibit 99.2 be deemed incorporated by reference in any filings the Company has made or may make under the Exchange Act, except as otherwise expressly stated in such filing.

Item 9.01. Financial Statements and Exhibits
 
(d) Exhibits
 
99.1           Press Release, dated January 24, 2019.
99.2           Presentation Materials, dated January 24, 2019.

 



2






SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 

 
 
EAST WEST BANCORP, INC.
 
 
Date: January 24, 2019
By:
/s/ Irene H. Oh
 
 
 
Irene H. Oh
 
 
Executive Vice President and Chief Financial Officer


3






EXHIBIT INDEX
 
Exhibit
Number
 
Description
99.1
 
Press Release, dated January 24, 2019.
99.2
 
Presentation Materials, dated January 24, 2019.


4



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit


 
Exhibit 99.1
 
 
396471344_ewbclogoa07.jpg
East West Bancorp, Inc.
135 N. Los Robles Ave., 7th Fl.
Pasadena, CA 91101
Tel. 626.768.6000
NEWS RELEASE
 
 
 
 
 
 
FOR INVESTOR INQUIRIES, CONTACT:
Irene Oh
Julianna Balicka
Chief Financial Officer
Director of Strategy and Corporate Development
T: (626) 768-6360
T: (626) 768-6985
E: irene.oh@eastwestbank.com
E: julianna.balicka@eastwestbank.com


EAST WEST BANCORP REPORTS RECORD NET INCOME FOR FULL YEAR 2018
OF $704 MILLION AND DILUTED EARNINGS PER SHARE OF $4.81,
BOTH UP BY 39% FROM THE PRIOR YEAR


Pasadena, California January 24, 2019 East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, the financial bridge between the United States and Greater China, today reported its financial results for the fourth quarter and full year of 2018. For the fourth quarter of 2018, net income was $173.0 million or $1.18 per diluted share. For the full year 2018, net income was $703.7 million or $4.81 per diluted share.

“Total loans reached a record $32.4 billion as of December 31, 2018, growing $3.3 billion, or 11% year-over-year,” stated Dominic Ng, Chairman and Chief Executive Officer of East West. “Total deposits grew $3.2 billion, or 10% year-over-year, to a record $35.4 billion as of December 31, 2018.”

“In 2018, East West achieved record earnings for a ninth consecutive year. Our total revenue of $1.6 billion grew by 11%, and our net interest margin of 3.78% expanded by 30 basis points year-over-year,” continued Ng. “In addition, revenue growth outpaced expense increases, improving our operating efficiency. In 2018, we earned a return on average assets of 1.83% and a return on average equity of 17.0%. I would like to thank our 3,150 associates for their dedication and diligence in delivering another year of strong financial performance.”

“We look forward to the new year with confidence. With our presence in the U.S. and Greater China, we have built cross-border banking expertise that differentiates us from other banks. Our associates go beyond banking to provide clients with knowledge and understanding essential to conducting business in both markets. We believe this positioning will serve us well in 2019 and beyond,” concluded Ng.












 
 
 
 

1



HIGHLIGHTS OF RESULTS

Full Year and Fourth Quarter Earnings Full year 2018 net income of $703.7 million and diluted earnings per share (“EPS”) of $4.81 both grew by 39% compared to full year 2017 net income of $505.6 million and diluted EPS of $3.47. Fourth quarter 2018 net income of $173.0 million and diluted EPS of $1.18 both grew by 104% from fourth quarter 2017 net earnings of $84.9 million and diluted EPS of $0.58.

Net Interest Income Growth and Net Interest Margin Expansion Fourth quarter 2018 net interest income was $369.4 million, a quarterly increase of $20.7 million or 6%, and a year-over-year increase of $49.7 million or 16%. Fourth quarter 2018 net interest margin (“NIM”) of 3.79% expanded by three basis points linked quarter and 22 basis points year-over-year. Net interest income growth primarily reflected loan yield expansion and loan growth, partially offset by the increase in the cost of funds.

Record Loans Total loans of $32.4 billion as of December 31, 2018 were up $1.2 billion or 15% linked quarter annualized, from $31.2 billion as of September 30, 2018. The largest increase in loans this quarter was in commercial and industrial loans, followed by single-family mortgages. Total loans grew by $3.3 billion or 11% year-over-year.

Record Deposits Total deposits of $35.4 billion as of December 31, 2018 were up $1.8 billion or 21% linked quarter annualized, from $33.6 billion as of September 30, 2018. The sequential quarter growth in deposits was broad-based, including growth of $583 million, or 21% linked quarter annualized, in noninterest-bearing demand accounts. Total deposits grew by $3.2 billion or 10% year-over-year.

Asset Quality Metrics The allowance for loan losses was $311.3 million, or 0.96% of loans held-for-investment (“HFI”), as of December 31, 2018, compared to $310.0 million, or 0.99% of loans HFI, as of September 30, 2018. For the fourth quarter of 2018, annualized net charge-offs were 0.20% of average loans HFI, compared to annualized net charge-offs of 0.05% of average loans HFI for the previous quarter. Non-purchased credit impaired (“Non-PCI”) nonperforming assets decreased to $93.0 million, or 0.23% of total assets, as of December 31, 2018, from $114.6 million, or 0.29% of total assets, as of September 30, 2018.

Capital Levels Capital levels for East West continue to be strong. As of December 31, 2018, stockholders’ equity was $4.4 billion, or $30.52 per share. Tangible equity1 per common share was $27.15 as of December 31, 2018, an increase of 5% linked quarter and 17% year-over-year. As of December 31, 2018, the tangible equity to tangible assets ratio1 was 9.71%, the common equity tier 1 (“CET1”) capital ratio was 12.2%, and the total risk-based capital ratio was 13.7%.























 
 
 
 
1 See reconciliation of GAAP to non-GAAP financial measures in Table 15.

2



QUARTERLY RESULTS SUMMARY
 
 
 
Quarter Ended
($ in millions, except per share data)
 
December 31,
2018
 
September 30,
2018
 
December 31,
2017
Net income
 
$
173.0

 
$
171.3

 
$
84.9

Adjusted net income (1)
 
$
173.0

 
$
171.3

 
$
126.6

Earnings per share (diluted)
 
$
1.18

 
$
1.17

 
$
0.58

Adjusted earnings per share (diluted) (1)
 
$
1.18

 
$
1.17

 
$
0.87

Book value per common share
 
$
30.52

 
$
29.29

 
$
26.58

Tangible equity (1) per common share
 
$
27.15

 
$
25.91

 
$
23.13

Tangible equity to tangible assets ratio (1)
 
9.71
%
 
9.73
%
 
9.12
%
Return on average assets (2)
 
1.69
%
 
1.76
%
 
0.90
%
Return on average equity (2)
 
15.8
%
 
16.2
%
 
8.7
%
Return on average tangible equity (1)(2)
 
18.0
%
 
18.5
%
 
10.2
%
Adjusted return on average assets (1)(2)
 
1.69
%
 
1.76
%
 
1.35
%
Adjusted return on average equity (1)(2)
 
15.8
%
 
16.2
%
 
13.0
%
Adjusted return on average tangible equity (1)(2)
 
18.0
%
 
18.5
%
 
15.1
%
Adjusted pre-tax, pre-provision profitability ratio (1)(2)
 
2.50
%
 
2.44
%
 
2.27
%
Net interest income
 
$
369.4

 
$
348.7

 
$
319.7

Net interest margin (2)
 
3.79
%
 
3.76
%
 
3.57
%
Cost of deposits (2)
 
0.90
%
 
0.78
%
 
0.43
%
Efficiency ratio
 
45.8
%
 
45.5
%
 
48.0
%
Adjusted efficiency ratio (1)
 
37.9
%
 
39.9
%
 
41.6
%
 
(1)
See reconciliation of GAAP to non-GAAP financial measures in Tables 12, 13, and 15.
(2)
Annualized.

MANAGEMENT OUTLOOK FOR 2019

Our current outlook for the expected full year 2019 results, compared to our full year 2018 results, is as follows:

End of Period Loans: increase by approximately 10%.

Net Interest Income (excluding the impact of ASC 310-30 discount accretion): increase at a percentage rate in the low double-digits.

Net Interest Margin (excluding the impact of ASC 310-30 discount accretion): between 3.75% and 3.80%.

Noninterest Expense (excluding tax credit amortization & deposit premium amortization): increase at a percentage rate in the mid-single-digits.

Provision for Credit Losses: in the range of $80 million to $90 million.

Tax Items: projecting full year effective tax rate of approximately 15%, including the impact of tax credit investments, which reduce our tax liability from statutory rates.

Interest Rates: No additional fed funds rate increases in the year 2019.

3



OPERATING RESULTS SUMMARY

Fourth Quarter 2018 Compared to Third Quarter 2018

Net Interest Income and Net Interest Margin
Net interest income totaled $369.4 million, a 6% increase from $348.7 million. Net interest margin increased by three basis points to 3.79% from 3.76%.
Excluding the impact of ASC 310-30 discount accretion, adjusted2 net interest income of $363.6 million increased by 5% and adjusted2 NIM of 3.73% increased by one basis point. ASC 310-30 discount accretion income was $5.8 million, an increase from $2.9 million last quarter.
Average loans of $31.5 billion grew by $1.0 billion, or 13% linked quarter annualized.
Average deposits of $35.0 billion grew by $1.7 billion, or 21% linked quarter annualized.
The yield on loans expanded by 20 basis points to 5.22% from 5.02%.
The yield on interest-earning assets expanded by 14 basis points to 4.69% from 4.55%.
The cost of deposits increased by 12 basis points to 0.90% from 0.78%.
The cost of funds increased by 12 basis points to 0.98% from 0.86%.

Noninterest Income
Noninterest income totaled $41.7 million, a decrease of $4.8 million or 10% from $46.5 million. Excluding the impact of all gains on sales, total fees and other operating income of $38.9 million in the fourth quarter of 2018 decreased by 7% from $41.9 million.
Increase in letters of credit fees and foreign exchange income reflected a greater volume of customer transactions.
Decrease in derivative fees and other income reflected a lower volume of customer transactions.

The following table presents total fees and other operating income for the three months ended December 31, 2018, September 30, 2018 and December 31, 2017.
($ in thousands)
 
Quarter Ended
 
December 31, 2018
 
September 30, 2018
 
December 31, 2017
Branch fees
 
$
9,512

 
$
9,777

 
$
10,287

Letters of credit fees and foreign exchange income
 
16,358

 
14,649

 
9,974

Ancillary loan fees and other income
 
5,835

 
6,795

 
6,457

Wealth management fees
 
2,796

 
3,535

 
2,797

Derivative fees and other income
 
1,125

 
4,595

 
4,737

Other fees and operating income
 
3,318

 
2,569

 
4,144

Total fees and other operating income
 
$
38,944

 
$
41,920

 
$
38,396

 
 
 
 
 
 
 

Noninterest Expense
Noninterest expense of $188.1 million included $155.9 million of adjusted3 noninterest expense, $31.0 million in amortization of tax credit and other investments, and $1.3 million in amortization of core deposit intangibles.
Noninterest expense of $188.1 million increased by $8.3 million, or 5%, linked quarter, primarily reflecting an increase in the amortization of tax credit and other investments. Adjusted noninterest expense of $155.9 million decreased by $1.8 million, or 1%, linked quarter.
The adjusted efficiency ratio3 was 37.9% in the fourth quarter, improving from 39.9% in the prior quarter.








 
 
 
 
2 See reconciliation of GAAP to non-GAAP financial measures in Table 14.
3 See reconciliation of GAAP to non-GAAP financial measures in Table 13.




4



TAX RELATED ITEMS

The Company’s full year 2018 effective tax rate was 14%, resulting in tax expense of $115.0 million, compared to an effective tax rate of 31% and tax expense of $229.5 million for the full year 2017.
Tax expense in the fourth quarter of 2018 was $32.0 million, compared to a tax expense of $33.6 million in the third quarter of 2018. The effective tax rate for both the third and fourth quarters of 2018 was 16%.
For the full year 2019, the Company expects to continue to invest in tax credits and projects an effective tax rate of approximately 15%.

CREDIT QUALITY

The allowance for loan losses totaled $311.3 million, or 0.96% of loans HFI, as of December 31, 2018, compared to $310.0 million, or 0.99% of loans HFI, as of September 30, 2018, and $287.1 million, or 0.99% of loans HFI, as of December 31, 2017.
The provision for credit losses recorded for the current quarter was $18.0 million, compared to $10.5 million for the third quarter of 2018, and $15.5 million for the fourth quarter of 2017.
Net charge-offs for the current quarter were $16.0 million, or annualized 0.20% of average loans HFI. This compares to net charge-offs of $3.7 million, or annualized 0.05% of average loans HFI, for the third quarter of 2018, and net charge-offs of $16.0 million, or annualized 0.22% of average loans HFI, for the fourth quarter of 2017.
For the full year of 2018, the net charge-off ratio was 0.13% of average loans HFI, compared to 0.08% of average loans HFI for the full year of 2017.
Non-PCI nonperforming assets of $93.0 million, or 0.23% of total assets, as of December 31, 2018, improved from $114.6 million, or 0.29% of total assets, as of September 30, 2018, and $115.1 million, or 0.31% of total assets, as of December 31, 2017.

CAPITAL STRENGTH

Capital levels for East West continue to be strong. The following table presents the regulatory capital ratios for the quarters ended December 31, 2018, September 30, 2018, and December 31, 2017.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EWBC Regulatory Capital Metrics
 
Basel III
($ in millions)
 
December 31, 2018 (a)
 
September 30,
2018
 
December 31,
2017
 
Minimum
Regulatory
Requirements
 
Well
Capitalized
Regulatory
Requirements
 
Fully Phased-
in Minimum
Regulatory
Requirements
 
 
 
 
 
 
 
 
 
 
 
 
 
CET1 capital ratio
 
12.2
%
 
12.3
%
 
11.4
%
 
4.5
%
 
6.5
%
 
7.0
%
Tier 1 risk-based capital ratio
 
12.2
%
 
12.3
%
 
11.4
%
 
6.0
%
 
8.0
%
 
8.5
%
Total risk-based capital ratio
 
13.7
%
 
13.8
%
 
12.9
%
 
8.0
%
 
10.0
%
 
10.5
%
Tier 1 leverage capital ratio
 
9.9
%
 
10.0
%
 
9.2
%
 
4.0
%
 
5.0
%
 
4.0
%
Risk-Weighted Assets (“RWA”) (b)
 
$
32,515

 
$
31,210

 
$
29,669

 
N/A

 
N/A

 
N/A

 
 
 
 
 
 
 

 
 

 
 

 
 
 
 
N/A Not applicable.
(a)
The Company’s December 31, 2018 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.

5



DIVIDEND PAYOUT AND CAPITAL ACTIONS

East West’s Board of Directors has declared first quarter 2019 dividends for the Company’s common stock. The common stock cash dividend of $0.23 per share is payable on February 15, 2019 to shareholders of record on February 4, 2019.


Conference Call

East West will host a conference call to discuss fourth quarter and full year 2018 earnings with the public on Thursday, January 24, 2019 at 8:30 a.m. PT/11:30 a.m. ET. The public and investment community are invited to listen as management discusses fourth quarter and full year 2018 results and operating developments.
The following dial-in information is provided for participation in the conference call: calls within the U.S. (877) 506-6399; calls within Canada (855) 669-9657; international calls (412) 902-6699.
A presentation to accompany the earnings call will be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.
A listen-only live broadcast of the call will also be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.
A replay of the conference call will be available on January 24, 2019 at 11:30 a.m. Pacific Time through February 24, 2019. The replay numbers are: within the U.S. (877) 344-7529; within Canada (855) 669-9658; International calls (412) 317-0088; and the replay access code is: 10127117.








































6



About East West

East West Bancorp, Inc. is a publicly owned company with total assets of $41.0 billion and is traded on the Nasdaq Global Select Market under the symbol “EWBC”. The Company’s wholly-owned subsidiary, East West Bank, is one of the largest independent banks headquartered in California. East West is a premier bank focused exclusively on the United States and Greater China markets and operates over 130 locations worldwide, including in the United States markets of California, Georgia, Massachusetts, Nevada, New York, Texas and Washington. In Greater China, East West’s presence includes full service branches in Hong Kong, Shanghai, Shantou and Shenzhen, and representative offices in Beijing, Chongqing, Guangzhou, Taipei 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) constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to our current business plans and expectations regarding future operating results. Forward-looking statements may include, but are not limited to, the use of forward-looking language, such as “likely result in,” “expects,” “anticipates,” “estimates,” “forecasts,” “projects,” “intends to,” “assumes,” or may include other similar words or phrases, such as “believes,” “plans,” “trend,” “objective,” “continues,” “remains,” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” “may,” “might,” “can,” or similar verbs, and the negative thereof. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to, our ability to compete effectively against other financial institutions in our banking markets; success and timing of our business strategies; our ability to retain key officers and employees; impact on our funding costs, net interest income and net interest margin due to changes in key variable market interest rates, competition, regulatory requirements and our product mix; changes in our costs of operation, compliance and expansion; our ability to adopt and successfully integrate new technologies into our business in a strategic manner; impact of failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do 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; adequacy of our risk management framework, disclosure controls and procedures and internal control over financial reporting; future credit quality and performance, including our expectations regarding future credit losses and allowance levels; impact of adverse changes to our credit ratings from the major credit rating agencies; impact of adverse judgments or settlements in litigation; changes in the commercial and consumer real estate markets; changes in consumer spending and savings habits; changes in the United States (“U.S.”) economy, including inflation, deflation, employment levels, rate of growth and general business conditions; changes in government interest rate policies; impact of benchmark interest rate reform in the U.S. that resulted in the Secured Overnight Financing Rate selected as the preferred alternative reference rate to the London Interbank Offered Rate; impact of political developments, wars or other hostilities that may disrupt or increase volatility in securities or otherwise affect economic conditions; changes in laws or the regulatory environment including regulatory reform initiatives and policies of the U.S. Department of Treasury, the Board of Governors of the Federal Reserve Board System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the U.S. Securities and Exchange Commission, the Consumer Financial Protection Bureau and the California Department of Business Oversight Division of Financial Institutions; impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on our business, business practices, cost of operations and executive compensation; heightened regulatory and governmental oversight and scrutiny of our business practices, including dealings with consumers; impact of reputational risk from negative publicity, fines and penalties and other negative consequences from regulatory violations and legal actions and from our 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; changes in income tax laws and regulations and the impact of the Tax Cuts and Jobs Act; impact of other potential federal tax changes and spending cuts; our capital requirements and our ability to generate capital internally or raise capital on favorable terms; changes in our ability to receive dividends from our subsidiaries; any future strategic acquisitions or divestitures; continuing consolidation in the financial services industry; changes in the equity and debt securities markets; fluctuations of our stock price; fluctuations in foreign currency exchange rates; a recurrence of 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 increased funding costs, reduced investor demand for mortgage loans and declines in asset values and/or recognition of other-than-temporary impairment on securities held in our available-for-sale investment securities portfolio; changes in the economy of and monetary policy in the People’s Republic of China; impact of natural or man-made disasters or calamities or conflicts or other events that may directly or indirectly result in a negative impact on our financial performance; and other factors set forth in our public reports including its Annual Report on Form 10-K for the year ended December 31, 2017, and particularly the discussion of risk factors within that document. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, our results could differ materially from those expressed in, implied or projected by such forward-looking statements. We assume no obligation to update or revise such forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

7



EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
($ and shares in thousands, except per share data)
(unaudited)
Table 1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
% Change
 
 
 
December 31, 2018
 
September 30, 2018
 
December 31, 2017
 
Qtr-o-Qtr
 
Yr-o-Yr
Assets
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
516,291

 
$
408,049

 
$
457,181

 
26.5
%
 
12.9
%
 
Interest-bearing cash with banks
 
2,485,086

 
1,810,738

 
1,717,411

 
37.2

 
44.7

 
Cash and cash equivalents
 
3,001,377

 
2,218,787

 
2,174,592

 
35.3

 
38.0

 
Interest-bearing deposits with banks
 
371,000

 
400,900

 
398,422

 
(7.5
)
 
(6.9
)
 
Securities purchased under resale agreements (“resale agreements”) (1)
 
1,035,000

 
1,035,000

 
1,050,000

 

 
(1.4
)
 
Investment securities
 
2,741,847

 
2,676,510

 
3,016,752

 
2.4

 
(9.1
)
 
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stock
 
74,069

 
73,729

 
73,521

 
0.5

 
0.7

 
Loans held-for-sale (“HFS”)
 
275

 
3,114

 
85

 
(91.2
)
 
223.5

 
Loans held-for-investment (net of allowance for loan losses of $311,322, $310,041 and $287,128)
 
32,073,867

 
30,900,144

 
28,688,590

 
3.8

 
11.8

 
Investments in qualified affordable housing partnerships, net
 
184,873

 
148,097

 
162,824

 
24.8

 
13.5

 
Investments in tax credit and other investments, net
 
231,635

 
232,194

 
224,551

 
(0.2
)
 
3.2

 
Goodwill
 
465,547

 
465,547

 
469,433

 

 
(0.8
)
 
Branch assets HFS (2)
 

 

 
91,318

 

 
(100.0
)
 
Other assets
 
862,866

 
919,084

 
800,161

 
(6.1
)
 
7.8

 
Total assets
 
$
41,042,356


$
39,073,106


$
37,150,249

 
5.0
%
 
10.5
%
 
 
 
 
 
 
 
 
 


 


Liabilities and Stockholders’ Equity
 
 

 
 

 
 

 


 


 
Deposits
 
$
35,439,628

 
$
33,629,124

 
$
31,615,063

 
5.4
%
 
12.1
%
 
Deposits HFS (2)
 

 

 
605,111

 

 
(100.0
)
 
Short-term borrowings
 
57,638

 
56,411

 

 
2.2

 
100.0

 
FHLB advances
 
326,172

 
325,596

 
323,891

 
0.2

 
0.7

 
Securities sold under repurchase agreements (“repurchase agreements”) (1)
 
50,000

 
50,000

 
50,000

 

 

 
Long-term debt
 
146,835

 
156,770

 
171,577

 
(6.3
)
 
(14.4
)
 
Accrued expenses and other liabilities
 
598,109

 
610,355

 
542,656

 
(2.0
)
 
10.2

 
Total liabilities
 
36,618,382

 
34,828,256

 
33,308,298

 
5.1

 
9.9

 
Stockholders’ equity
 
4,423,974

 
4,244,850

 
3,841,951

 
4.2

 
15.1

 
Total liabilities and stockholders’ equity
 
$
41,042,356

 
$
39,073,106

 
$
37,150,249

 
5.0
%
 
10.5
%
 
 
 
 
 
 
 
 
 


 


 
Book value per common share
 
$
30.52

 
$
29.29

 
$
26.58

 
4.2
%
 
14.8
%
 
Tangible equity (3) per common share
 
$
27.15

 
$
25.91

 
$
23.13

 
4.8

 
17.4

 
Tangible equity to tangible assets ratio (3)
 
9.71
%
 
9.73
%
 
9.12
%
 
(0.3
)
 
6.4

 
Number of common shares at period-end
 
144,961

 
144,929

 
144,543

 
0.0

 
0.3

 
 
 
 
 
 
(1)
Resale and repurchase agreements have been reported net, pursuant to Accounting Standards Codification (“ASC”) 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. As of each of December 31, 2018, September 30, 2018 and December 31, 2017, $400.0 million out of $450.0 million of gross repurchase agreements were eligible for netting against gross resale agreements.
(2)
Represents the DCB branch assets and deposits that were classified as HFS as of December 31, 2017. Branch assets HFS were primarily comprised of loans.
(3)
See reconciliation of GAAP to non-GAAP financial measures in Table 15.

8



EAST WEST BANCORP, INC. AND SUBSIDIARIES
TOTAL LOANS AND DEPOSITS DETAIL
($ in thousands)
(unaudited)
Table 2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
% Change
 
 
 
December 31, 2018
 
September 30, 2018
 
December 31, 2017
 
Qtr-o-Qtr
 
Yr-o-Yr
Loans:
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial (“C&I”)
 
$
12,056,970

 
$
11,517,054

 
$
10,697,231

 
4.7
%
 
12.7
%
 
Commercial real estate (“CRE”)
 
9,449,835

 
9,262,327

 
8,936,897

 
2.0

 
5.7

 
Multifamily residential
 
2,281,032

 
2,090,563

 
1,916,176

 
9.1

 
19.0

 
Construction and land
 
538,794

 
605,033

 
659,697

 
(10.9
)
 
(18.3
)
Consumer:
 
 
 
 
 
 
 
 
 
 
 
Single-family residential
 
6,036,454

 
5,684,587

 
4,646,289

 
6.2

 
29.9

 
Home equity lines of credit (“HELOCs”)
 
1,690,834

 
1,717,440

 
1,782,924

 
(1.5
)
 
(5.2
)
 
Other consumer
 
331,270

 
333,181

 
336,504

 
(0.6
)
 
(1.6
)
 
Total loans held-for-investment (1)(2)
 
32,385,189


31,210,185


28,975,718

 
3.8

 
11.8

Loans HFS (3)
 
275

 
3,114

 
78,217

 
(91.2
)
 
(99.6
)
 
Total loans (1)(2)
 
32,385,464

 
31,213,299

 
29,053,935

 
3.8

 
11.5

Allowance for loan losses
 
(311,322
)
 
(310,041
)
 
(287,128
)
 
0.4

 
8.4

 
Net loans (1)(2)
 
$
32,074,142

 
$
30,903,258

 
$
28,766,807

 
3.8
%
 
11.5
%
 
 
 
 
 
 
 
 
 
 
 


Deposits:
 
 

 
 

 
 

 
 
 


 
Noninterest-bearing demand
 
$
11,377,009

 
$
10,794,370

 
$
10,887,306

 
5.4
%
 
4.5
%
 
Interest-bearing checking
 
4,584,447

 
4,383,672

 
4,419,089

 
4.6

 
3.7

 
Money market
 
8,262,677

 
7,608,191

 
8,359,425

 
8.6

 
(1.2
)
 
Savings
 
2,146,429

 
2,142,105

 
2,308,494

 
0.2

 
(7.0
)
 
Total core deposits
 
26,370,562

 
24,928,338

 
25,974,314

 
5.8

 
1.5

 
Time deposits
 
9,069,066

 
8,700,786

 
5,640,749

 
4.2

 
60.8

Deposits HFS
 

 

 
605,111

 

 
(100.0
)
 
Total deposits
 
$
35,439,628

 
$
33,629,124


$
32,220,174

 
5.4
%
 
10.0
%
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Includes $(48.9) million, $(42.4) million and $(34.0) million as of December 31, 2018, September 30, 2018 and December 31, 2017, respectively, of net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts.
(2)
Includes ASC 310-30 discount of $22.2 million, $24.5 million and $35.3 million as of December 31, 2018, September 30, 2018 and December 31, 2017, respectively.
(3)
Includes $78.1 million of loans HFS in branch assets as of December 31, 2017.


9



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
 
December 31, 2018
% Change
 
 
 
December 31, 2018
 
September 30, 2018
 
December 31, 2017
 
Qtr-o-Qtr
 
Yr-o-Yr
Interest and dividend income
 
$
457,334

 
$
422,185

 
$
359,765

 
8.3
%
 
27.1
%
Interest expense
 
87,918

 
73,465

 
40,064

 
19.7

 
119.4

Net interest income before provision for credit losses
 
369,416

 
348,720

 
319,701

 
5.9

 
15.6

Provision for credit losses
 
17,959

 
10,542

 
15,517

 
70.4

 
15.7

Net interest income after provision for credit losses
 
351,457

 
338,178

 
304,184

 
3.9

 
15.5

Noninterest income
 
41,695

 
46,502

 
45,206

 
(10.3
)
 
(7.8
)
Noninterest expense
 
188,097

 
179,815

 
175,263

 
4.6

 
7.3

Income before income taxes
 
205,055

 
204,865

 
174,127

 
0.1

 
17.8

Income tax expense
 
32,037

 
33,563

 
89,229

 
(4.5
)
 
(64.1
)
Net income
 
$
173,018

 
$
171,302

 
$
84,898

 
1.0
%
 
103.8
%
Earnings per share (“EPS”)
 
 

 
 

 
 

 


 


- Basic
 
$
1.19

 
$
1.18

 
$
0.59

 
1.0
%
 
103.2
%
- Diluted
 
$
1.18

 
$
1.17

 
$
0.58

 
1.0

 
103.7

Weighted average number of shares outstanding
 
 
 
 
 
 
 


 


- Basic
 
144,960

 
144,921

 
144,542

 
0.0
%
 
0.3
%
- Diluted
 
146,133

 
146,173

 
146,030

 
0.0

 
0.1

 
 
 
 
 
 
 
 
 


 


 
 
 
Three Months Ended
 
December 31, 2018
% Change
 
 
 
December 31, 2018
 
September 30, 2018
 
December 31, 2017
 
Qtr-o-Qtr
 
Yr-o-Yr
Noninterest income:
 
 

 
 

 
 

 


 


 
Branch fees
 
$
9,512

 
$
9,777

 
$
10,287

 
(2.7
)%
 
(7.5
)%
 
Letters of credit fees and foreign exchange income
 
16,358

 
14,649

 
9,974

 
11.7

 
64.0

 
Ancillary loan fees and other income
 
5,835

 
6,795

 
6,457

 
(14.1
)
 
(9.6
)
 
Wealth management fees
 
2,796

 
3,535

 
2,797

 
(20.9
)
 
0.0

 
Derivative fees and other income
 
1,125

 
4,595

 
4,737

 
(75.5
)
 
(76.3
)
 
Net gains on sales of loans
 
1,509

 
1,145

 
2,210

 
31.8

 
(31.7
)
 
Net gains on sales of available-for-sale investment securities
 
161

 
35

 
1,304

 
360.0

 
(87.7
)
 
Net gains on sales of fixed assets
 
1,081

 
3,402

 
3,296

 
(68.2
)
 
(67.2
)
 
Other fees and operating income
 
3,318

 
2,569

 
4,144

 
29.2

 
(19.9
)
Total noninterest income
 
$
41,695

 
$
46,502

 
$
45,206

 
(10.3
)%
 
(7.8
)%
Noninterest expense:
 
 

 
 

 
 

 


 


 
Compensation and employee benefits
 
$
93,790

 
$
96,733

 
$
90,361

 
(3.0
)%
 
3.8
%
 
Occupancy and equipment expense
 
18,017

 
17,292

 
17,092

 
4.2

 
5.4

 
Deposit insurance premiums and regulatory assessments
 
3,093

 
6,013

 
6,351

 
(48.6
)
 
(51.3
)
 
Legal expense
 
2,145

 
1,544

 
2,514

 
38.9

 
(14.7
)
 
Data processing
 
3,160

 
3,289

 
3,084

 
(3.9
)
 
2.5

 
Consulting expense
 
1,424

 
2,683

 
4,147

 
(46.9
)
 
(65.7
)
 
Deposit related expense
 
3,043

 
2,600

 
2,655

 
17.0

 
14.6

 
Computer software expense
 
6,205

 
5,478

 
4,360

 
13.3

 
42.3

 
Other operating expense
 
26,262

 
23,394

 
22,808

 
12.3

 
15.1

 
Amortization of tax credit and other investments
 
30,958

 
20,789

 
21,891

 
48.9

 
41.4

Total noninterest expense
 
$
188,097

 
$
179,815

 
$
175,263

 
4.6
%
 
7.3
%
 
 
 
 
 
 
 
 
 
 
 
 


10



EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
($ and shares in thousands, except per share data)
(unaudited)
Table 4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
 
December 31, 2018
% Change
 
 
 
December 31, 2018
 
December 31, 2017
 
Yr-o-Yr
Interest and dividend income
 
$
1,651,703

 
$
1,325,119

 
24.6
%
Interest expense
 
265,195

 
140,050

 
89.4

Net interest income before provision for credit losses
 
1,386,508

 
1,185,069

 
17.0

Provision for credit losses
 
64,255

 
46,266

 
38.9

Net interest income after provision for credit losses
 
1,322,253

 
1,138,803

 
16.1

Noninterest income
 
210,909

 
257,748

 
(18.2
)
Noninterest expense
 
714,466

 
661,451

 
8.0

Income before income taxes
 
818,696

 
735,100

 
11.4

Income tax expense
 
114,995

 
229,476

 
(49.9
)
Net income
 
$
703,701

 
$
505,624

 
39.2
%
EPS
 
 

 
 

 


- Basic
 
$
4.86

 
$
3.50

 
38.8
%
- Diluted
 
$
4.81

 
$
3.47

 
38.9

Weighted average number of shares outstanding
 
 
 
 
 


- Basic
 
144,862

 
144,444

 
0.3
%
- Diluted
 
146,169

 
145,913

 
0.2

 
 
 
 
 
 
 
 
 
 
 
Year Ended
 
December 31, 2018
% Change
 
 
 
December 31, 2018
 
December 31, 2017
 
Yr-o-Yr
Noninterest income:
 
 

 
 

 
 
 
Branch fees
 
$
39,859

 
$
40,925

 
(2.6
)%
 
Letters of credit fees and foreign exchange income
 
56,282

 
44,344

 
26.9

 
Ancillary loan fees and other income
 
24,052

 
23,333

 
3.1

 
Wealth management fees
 
13,785

 
13,974

 
(1.4
)
 
Derivative fees and other income
 
18,980

 
17,671

 
7.4

 
Net gains on sales of loans
 
6,590

 
8,870

 
(25.7
)
 
Net gains on sales of available-for-sale investment securities
 
2,535

 
8,037

 
(68.5
)
 
Net gains on sales of fixed assets
 
6,683

 
77,388

 
(91.4
)
 
Net gain on sale of business
 
31,470

 
3,807

 
NM

 
Other fees and operating income
 
10,673

 
19,399

 
(45.0
)
Total noninterest income
 
$
210,909


$
257,748

 
(18.2
)%
Noninterest expense:
 
 

 
 

 


 
Compensation and employee benefits
 
$
379,622

 
$
335,291

 
13.2
%
 
Occupancy and equipment expense
 
68,896

 
64,921

 
6.1

 
Deposit insurance premiums and regulatory assessments
 
21,211

 
23,735

 
(10.6
)
 
Legal expense
 
8,781

 
11,444

 
(23.3
)
 
Data processing
 
13,177

 
12,093

 
9.0

 
Consulting expense
 
11,579

 
14,922

 
(22.4
)
 
Deposit related expense
 
11,244

 
9,938

 
13.1

 
Computer software expense
 
22,286

 
18,183

 
22.6

 
Other operating expense
 
88,042

 
82,974

 
6.1

 
Amortization of tax credit and other investments
 
89,628

 
87,950

 
1.9

Total noninterest expense
 
$
714,466

 
$
661,451

 
8.0
%
 
 
 
 
 
 
 
 
NM Not Meaningful

11



EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED AVERAGE BALANCES
($ in thousands)
(unaudited)
Table 5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
December 31, 2018
% Change
 
Year Ended
 
December 31, 2018
% Change
 
 
 
December 31,
2018
 
September 30,
2018
 
December 31,
2017
 
Qtr-o-Qtr
 
Yr-o-Yr
 
December 31,
2018
 
December 31,
2017
 
Yr-o-Yr
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
C&I
 
$
11,554,737

 
$
11,127,338

 
$
10,518,121

 
3.8
%
 
9.9
%
 
$
11,037,992

 
$
10,180,582

 
8.4
%
 
CRE
 
9,363,625

 
9,134,784

 
8,917,681

 
2.5

 
5.0

 
9,136,783

 
8,485,323

 
7.7

 
Multifamily residential
 
2,162,877

 
2,056,456

 
1,909,933

 
5.2

 
13.2

 
2,034,258

 
1,785,210

 
14.0

 
Construction and land
 
582,311

 
622,272

 
674,337

 
(6.4
)
 
(13.6
)
 
632,303

 
669,073

 
(5.5
)
Consumer:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Single-family residential
 
5,854,551

 
5,495,824

 
4,498,180

 
6.5

 
30.2

 
5,309,689

 
4,013,542

 
32.3

 
HELOCs
 
1,709,022

 
1,741,890

 
1,783,762

 
(1.9
)
 
(4.2
)
 
1,754,071

 
1,780,377

 
(1.5
)
 
Other consumer
 
307,752

 
319,473

 
344,447

 
(3.7
)
 
(10.7
)
 
324,918

 
338,649

 
(4.1
)
 
Total loans (1)(2)
 
$
31,534,875

 
$
30,498,037

 
$
28,646,461

 
3.4
%
 
10.1
%
 
$
30,230,014

 
$
27,252,756

 
10.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment securities
 
$
2,777,381

 
$
2,727,219

 
$
2,925,817

 
1.8
 %
 
(5.1
)%
 
$
2,773,152

 
$
3,026,693

 
(8.4
)%
Interest-earning assets
 
$
38,688,647

 
$
36,822,293

 
$
35,491,424

 
5.1
%
 
9.0
%
 
$
36,707,142

 
$
34,034,065

 
7.9
%
Total assets
 
$
40,525,188

 
$
38,659,262

 
$
37,262,618

 
4.8
%
 
8.8
%
 
$
38,542,569

 
$
35,787,613

 
7.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 

 
 

 
 

 
 
 
 
 
 

 
 

 
 
 
Noninterest-bearing demand
 
$
11,447,345

 
$
10,639,554

 
$
11,531,181

 
7.6
%
 
(0.7
)%
 
$
11,089,537

 
$
10,627,718

 
4.3
%
 
Interest-bearing checking
 
4,449,541

 
4,515,256

 
4,313,732

 
(1.5
)
 
3.1

 
4,477,793

 
3,951,930

 
13.3

 
Money market
 
8,180,426

 
7,613,030

 
8,198,133

 
7.5

 
(0.2
)
 
7,985,526

 
8,026,347

 
(0.5
)
 
Savings
 
2,124,697

 
2,194,792

 
2,472,207

 
(3.2
)
 
(14.1
)
 
2,245,644

 
2,369,398

 
(5.2
)
 
Total core deposits
 
26,202,009

 
24,962,632

 
26,515,253

 
5.0

 
(1.2
)
 
25,798,500

 
24,975,393

 
3.3

 
Time deposits
 
8,783,068

 
8,277,129

 
5,735,014

 
6.1

 
53.1

 
7,431,749

 
5,838,382

 
27.3

 
Total deposits
 
$
34,985,077

 
$
33,239,761

 
$
32,250,267

(3) 
5.3
%
 
8.5
%
 
$
33,230,249

(3) 
$
30,813,775

(3) 
7.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities
 
$
24,122,509

 
$
23,190,465

 
$
21,280,348

 
4.0
%
 
13.4
%
 
$
22,709,554

 
$
20,930,965

 
8.5
%
Stockholders’ equity
 
$
4,335,110

 
$
4,197,675

 
$
3,856,802

 
3.3
%
 
12.4
%
 
$
4,130,822

 
$
3,687,213

 
12.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Includes ASC 310-30 discount of $23.8 million, $25.9 million and $37.7 million for the three months ended December 31, 2018, September 30, 2018 and December 31, 2017, respectively, and $28.4 million and $43.3 million for the years ended December 31, 2018 and 2017, respectively.
(2)
Includes loans HFS.
(3)
Includes deposits HFS.

12



EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 6
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
December 31, 2018
 
September 30, 2018
 
 
 
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
 
$
3,267,484

 
$
18,791

 
2.28
%
 
$
2,521,002

 
$
13,353

 
2.10
%
 
Resale agreements (2)
 
1,035,000

 
7,819

 
3.00
%
 
1,002,500

 
7,393

 
2.93
%
 
Investment securities
 
2,777,381

 
15,216

 
2.17
%
 
2,727,219

 
15,180

 
2.21
%
 
Loans (3)
 
31,534,875

 
414,517

 
5.22
%
 
30,498,037

 
385,538

 
5.02
%
 
FHLB and FRB stock
 
73,907

 
991

 
5.32
%
 
73,535

 
721

 
3.89
%
 
Total interest-earning assets
 
38,688,647

 
457,334

 
4.69
%
 
36,822,293

 
422,185

 
4.55
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-earning assets:
 
 

 
 

 
 

 
 

 
 

 
 

 
Cash and due from banks
 
482,767

 
 
 
 
 
424,350

 
 

 
 

 
Allowance for loan losses
 
(314,019
)
 
 
 
 
 
(301,557
)
 
 

 
 

 
Other assets
 
1,667,793

 
 
 
 
 
1,714,176

 
 

 
 

 
Total assets
 
$
40,525,188

 
 

 
 

 
$
38,659,262

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders’ Equity
 
 
 
 

 
 

 
 

 
 

 
 

Interest-bearing liabilities:
 
 

 
 

 
 

 
 

 
 

 
 

 
Checking de