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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)
July 18, 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))

Securities registered pursuant to Section 12(b) of the Act: 
Title of each class
 
Trading Symbol
 
Name of each exchange on which registered
Common Stock, $0.001 Par Value
 
EWBC
 
The Nasdaq Global Select Market

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 July 18, 2019, East West Bancorp, Inc. (the “Company”) announced, via press release, its financial results for the quarter ended June 30, 2019 (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 July 18, 2019, the Company will hold a conference call to discuss its financial results for the quarter ended June 30, 2019, 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 July 18, 2019.
99.2           Presentation Materials, dated July 18, 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: July 18, 2019
By:
/s/ Irene H. Oh
 
 
 
Irene H. Oh
 
 
Executive Vice President and Chief Financial Officer



3



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit


 
Exhibit 99.1
 
 
398790790_ewbclogoa13.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


EAST WEST BANCORP REPORTS NET INCOME FOR SECOND QUARTER 2019
OF $150 MILLION AND DILUTED EARNINGS PER SHARE OF $1.03;
RECORD OPERATING REVENUE OF $420 MILLION


Pasadena, California July 18, 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 second quarter of 2019. For the second quarter of 2019, net income was $150.4 million or $1.03 per diluted share. Second quarter 2019 return on average assets was 1.45% and return on average equity was 12.9%.

“Total loans grew $871 million, or 11% annualized, to a record $33.7 billion as of June 30, 2019 from $32.9 billion as of March 31, 2019. Loan growth was well-diversified across our major lending portfolios,” stated Dominic Ng, Chairman and Chief Executive Officer of East West. “Total deposits grew $204 million, or 2% annualized, to a record $36.5 billion from $36.3 billion as of March 31, 2019. A highlight was robust growth in noninterest-bearing demand deposits.”

“East West achieved record total operating1 revenue of $420 million in the second quarter of 2019, an increase of 4% from $405 million in the first quarter of 2019, and an increase of 8% from $390 million in the second quarter of 2018. Quarter-over-quarter, net interest income grew by 1% and we also saw substantial noninterest income growth of 25%. Year-over-year, net interest income grew by 8% and noninterest income grew by 9%,” continued Ng.

“The growth in revenue combined with strong operating expense control drove improvement in our operating efficiency and an expansion of our pre-tax, pre-provision profitability. Our pre-tax, pre-provision profitability ratio2 was 2.51% in the second quarter of 2019, expanding by 8 basis points linked quarter. Additionally, nonperforming assets, net charge-offs and the provision for credit losses all decreased.”

“Despite macro-economic and geopolitical volatility, East West continues to execute, delivering attractive growth and profitability, demonstrating the strength of our differentiated strategy and the value proposition that we provide for our customers. We are pleased with the solid results of the second quarter and look forward to continued strong performance in the second half of 2019,” concluded Ng.







 
 
 
 
1 Operating revenue consists of net interest income before provision for credit losses and noninterest income, excluding non-operating items.
2 See reconciliation of GAAP to non-GAAP financial measures in Table 14.

1



HIGHLIGHTS OF RESULTS

Second Quarter Earnings Second quarter 2019 net income was $150.4 million and diluted earnings per share (“EPS”) were $1.03, compared to first quarter 2019 net income of $164.0 million and diluted EPS of $1.12. During the second quarter, the Company recorded $30.1 million of additional income tax expense to reverse previously claimed tax credits, equivalent to $0.21 per share. Adjusted3 second quarter net income was $180.5 million and adjusted3 diluted EPS were $1.24, both up by 7% from adjusted3 first quarter net income of $168.9 million and adjusted3 first quarter diluted EPS of $1.16.

Net Interest Income and Net Interest Margin Second quarter 2019 net interest income (“NII”) was $367.3 million, a quarterly increase of $4.9 million or 1%, and a year-over-year increase of $25.6 million or 8%. Second quarter 2019 net interest margin (“NIM”) was 3.73%, compared to 3.79% in the previous quarter. Net interest income growth in the second quarter primarily reflects loan growth, partially offset by the change in the NIM.

Record Loans Total loans of $33.7 billion as of June 30, 2019 were up $871.0 million, or 11% linked quarter annualized, from $32.9 billion as of March 31, 2019. Growth was well-diversified across commercial and industrial loans, commercial real estate and single family residential mortgage portfolios. Total loans grew by $3.5 billion, or 12% year-over-year.

Record Deposits Total deposits of $36.5 billion as of June 30, 2019 were up $203.6 million, or 2% linked quarter annualized, from $36.3 billion as of March 31, 2019. Growth in time, noninterest-bearing demand and savings deposits was partially offset by declines in interest-bearing checking and money market balances. Total deposits grew by $3.7 billion, or 11% year-over-year.

Asset Quality Metrics The allowance for loan losses was $330.6 million, or 0.98% of loans held-for-investment (“HFI”), as of June 30, 2019, compared to 0.97% of loans HFI as of March 31, 2019, and 1.00% of loans HFI as of June 30, 2018. For the second quarter of 2019, net charge-offs were $7.6 million, or annualized 0.09% of average loans HFI, a decrease from annualized net charge-offs of 0.18% of average loans HFI for the first quarter of 2019 and 0.14% for the year-ago quarter. Non-purchased credit impaired (“Non-PCI”) nonperforming assets were $119.3 million, or 0.28% of total assets, as of June 30, 2019, compared to 0.33% of total assets as of March 31, 2019, and 0.27% of total assets as of June 30, 2018.

Capital Levels Capital levels for East West continue to be strong. As of June 30, 2019, stockholders’ equity was $4.7 billion, or $32.53 per share. Tangible equity4 per common share was $29.20 as of June 30, 2019, an increase of 3% linked quarter and 17% year-over-year. As of June 30, 2019, the tangible equity to tangible assets ratio4 was 10.0%, the common equity tier 1 (“CET1”) capital ratio was 12.5%, and the total risk-based capital ratio was 13.9%.





















 
 
 
 
3 See reconciliation of GAAP to non-GAAP financial measures in Table 13.
4 See reconciliation of GAAP to non-GAAP financial measures in Table 16.

2



QUARTERLY RESULTS SUMMARY
 
 
 
Quarter Ended
($ in millions, except per share data and ratios)
 
June 30,
2019
 
March 31,
2019
 
June 30,
2018
Net income
 
$
150.4

 
$
164.0

 
$
172.3

Adjusted net income (1)
 
$
180.5

 
$
168.9

 
$
172.3

Earnings per share (diluted)
 
$
1.03

 
$
1.12

 
$
1.18

Adjusted earnings per share (diluted) (1)
 
$
1.24

 
$
1.16

 
$
1.18

Book value per common share
 
$
32.53

 
$
31.56

 
$
28.39

Tangible equity (1) per common share
 
$
29.20

 
$
28.21

 
$
25.01

Tangible equity to tangible assets ratio (1)
 
10.02
%
 
9.87
%
 
9.65
%
Return on average assets (2)
 
1.45
%
 
1.63
%
 
1.84
%
Return on average equity (2)
 
12.9
%
 
14.7
%
 
17.0
%
Return on average tangible equity (1)(2)
 
14.5
%
 
16.5
%
 
19.5
%
Adjusted return on average assets (1)(2)
 
1.74
%
 
1.68
%
 
1.84
%
Adjusted return on average equity (1)(2)
 
15.5
%
 
15.1
%
 
17.0
%
Adjusted return on average tangible equity (1)(2)
 
17.4
%
 
17.0
%
 
19.5
%
Adjusted pre-tax, pre-provision profitability ratio (1)(2)
 
2.51
%
 
2.43
%
 
2.50
%
Net interest income
 
$
367.3

 
$
362.5

 
$
341.7

Adjusted net interest income (1)
 
$
365.6

 
$
360.3

 
$
335.4

Net interest margin (2)
 
3.73
%
 
3.79
%
 
3.83
%
Adjusted net interest margin (1)(2)
 
3.71
%
 
3.77
%
 
3.76
%
Average loan yield (2)
 
5.28
%
 
5.30
%
 
4.95
%
Adjusted average loan yield (1)(2)
 
5.26
%
 
5.27
%
 
4.86
%
Cost of deposits (2)
 
1.11
%
 
1.07
%
 
0.64
%
Efficiency ratio
 
42.3
%
 
46.2
%
 
45.5
%
Adjusted efficiency ratio (1)
 
38.0
%
 
39.8
%
 
39.9
%
 
(1)
See reconciliation of GAAP to non-GAAP financial measures in Tables 13, 14, 15 and 16.
(2)
Annualized.
 
MANAGEMENT OUTLOOK FOR 2019

The Company has updated its outlook for the expected full year 2019 results, compared to our full year 2018 results. The components are as follows:

End of Period Loans: increase by approximately 10%.

Net Interest Income (excluding ASC 310-30 discount accretion income): increase at a percentage rate in the high single-digits.

Net Interest Margin (excluding the impact of ASC 310-30 discount accretion): between 3.60% and 3.70%.

Noninterest Expense (excluding amortization of tax credit investments & core deposit intangibles): 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 20%, including the impact of the $30.1 million reversal of previously claimed tax credits in the second quarter of 2019, or approximately 15% excluding the tax credit reversal.

Interest Rates: Two 25-basis point cuts to the fed funds rate, in July and October of 2019.








3



OPERATING RESULTS SUMMARY

Second Quarter 2019 Compared to First Quarter 2019

Net Interest Income and Net Interest Margin
Net interest income totaled $367.3 million, a 1% increase from $362.5 million. Net interest margin of 3.73% contracted by six basis points from 3.79%.

Excluding the impact of ASC 310-30 discount accretion, adjusted5 NII of $365.6 million also increased by 1%, and adjusted5 NIM of 3.71% also decreased by six basis points. ASC 310-30 discount accretion income was $1.7 million, a decrease from $2.2 million last quarter.

Average loans of $33.0 billion grew by $566.6 million, or 7% linked quarter annualized. Growth was well-diversified across all our major commercial and consumer loan portfolios.

Average deposits of $35.3 billion grew by $403.0 million, or 5% linked quarter annualized. Growth was primarily in time and noninterest-bearing demand deposits, partially offset by a decline in money market balances.

The yield on loans contracted by two basis points to 5.28% from 5.30%. Excluding the impact of ASC 310-30 discount accretion, the adjusted5 yield on loans contracted by one basis point to 5.26% from 5.27%, reflecting an unchanged fed funds rate and the decline in Libor rates.

The cost of deposits increased by four basis points to 1.11% from 1.07% linked quarter. This is a deceleration from the linked quarter cost of deposits increases in the first quarter of 2019 and in the second quarter of 2018, which were 17 basis points and 15 basis points, respectively.

Noninterest Income
Noninterest income totaled $52.8 million, a 25% increase from $42.1 million.

The linked quarter increase in noninterest income was primarily attributable to interest rate contracts and other derivative income, which increased by $7.2 million, reflecting strong customer demand for interest rate swaps in response to the inverted yield curve.

Additionally, foreign exchange income increased by $2.3 million, reflecting revaluations of foreign currency-denominated balance sheet items, and lending fees increased by $1.4 million.

Noninterest Expense
Noninterest expense totaled $177.7 million, a 5% decrease from $186.9 million. Second quarter noninterest expense consisted of $159.8 million of adjusted6 noninterest expense, $16.7 million in amortization of tax credit and other investments, and $1.2 million in amortization of core deposit intangibles.

Adjusted noninterest expense of $159.8 million decreased by $1.1 million, or 1%, from $160.8 million. The linked quarter change primarily reflected a decrease in compensation and employee benefits expense.

The adjusted6 efficiency ratio was 38.0% in the second quarter, compared to 39.8% in the previous quarter.

















 
 
 
 
5  See reconciliation of GAAP to non-GAAP financial measures in Table 15.
6  See reconciliation of GAAP to non-GAAP financial measures in Table 14.

4



TAX RELATED ITEMS

Second quarter 2019 income tax expense was $72.8 million and the effective tax rate was 33%. Included in the second quarter 2019 income tax expense was a $30.1 million reversal of certain previously claimed tax credits related to DC Solar. Adjusted, tax expense was $42.7 million7 and the effective tax rate was 19%7 in the second quarter of 2019. This compares to a tax expense of $31.1 million and an effective tax rate of 16% in the first quarter of 2019.

For the full year 2019, the Company projects that its effective tax rate will be approximately 20%, including the impact of the $30.1 million tax credit reversal in the second quarter of 2019, or approximately 15% excluding the tax credit reversal.

CREDIT QUALITY

The allowance for loan losses totaled $330.6 million, or 0.98% of loans HFI, as of June 30, 2019, compared to $317.9 million, or 0.97% of loans HFI, as of March 31, 2019, and $301.6 million, or 1.00% of loans HFI, as of June 30, 2018.

The provision for credit losses recorded for the second quarter of 2019 was $19.2 million, compared to $22.6 million for the first quarter of 2019, and $15.5 million for the year-ago quarter.

Net charge-offs for the current quarter were $7.6 million, or annualized 0.09% of average loans HFI. This is a decrease from net charge-offs of $14.4 million, or annualized 0.18% of average loans HFI, for the first quarter of 2019, and net charge-offs of $10.6 million, or annualized 0.14% of average loans HFI, for the second quarter of 2018.

Non-PCI nonperforming assets were $119.3 million, or 0.28% of total assets, as of June 30, 2019, compared to $138.0 million, or 0.33% of total assets, as of March 31, 2019, and $103.5 million, or 0.27% of total assets, as of June 30, 2018.

CAPITAL STRENGTH

Capital levels for East West continue to be strong. The following table presents the regulatory capital ratios for the quarters ended June 30, 2019, March 31, 2019, and June 30, 2018.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EWBC Regulatory Capital Metrics
 
Basel III
($ in millions)
 
June 30,
2019 (a)
 
March 31,
2019
 
June 30,
2018
 
Minimum
Capital
Ratio
 
Well
Capitalized
Ratio
 
Minimum
Capital Ratio +
Conservation Buffer
(b)
 
 
 
 
 
 
 
 
 
 
 
 
 
CET1 capital ratio
 
12.5
%
 
12.4
%
 
12.2
%
 
4.5
%
 
6.5
%
 
7.0
%
Tier 1 risk-based capital ratio
 
12.5
%
 
12.4
%
 
12.2
%
 
6.0
%
 
8.0
%
 
8.5
%
Total risk-based capital ratio
 
13.9
%
 
13.9
%
 
13.7
%
 
8.0
%
 
10.0
%
 
10.5
%
Tier 1 leverage capital ratio
 
10.4
%
 
10.2
%
 
10.0
%
 
4.0
%
 
5.0
%
 
4.0
%
Risk-Weighted Assets (“RWA”) (c)
 
$
34,161

 
$
33,162

 
$
30,415

 
N/A

 
N/A

 
N/A

 
 
 
 
 
 
 

 
 

 
 

 
 
 
 
N/A Not applicable.
(a)
The Company’s June 30, 2019 regulatory capital ratios and RWA are preliminary.
(b)
An additional 2.5% capital conservation buffer above the minimum capital ratios is required in order to avoid limitations on distributions, including dividend payments and certain discretionary bonus payments to executive officers.
(c)
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.














 
 
 
 
7  See reconciliation of GAAP to non-GAAP financial measures in Table 12.

5



DIVIDEND PAYOUT AND CAPITAL ACTIONS

East West’s Board of Directors has declared third quarter 2019 dividends for the Company’s common stock. The common stock cash dividend of $0.275 per share is payable on August 15, 2019 to shareholders of record on August 1, 2019.


Conference Call

East West will host a conference call to discuss second quarter 2019 earnings with the public on Thursday, July 18, 2019 at 8:30 a.m. PT/11:30 a.m. ET. The public and investment community are invited to listen as management discusses second quarter 2019 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 July 18, 2019 at 11:30 a.m. Pacific Time through August 18, 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: 10132709.


About East West

East West Bancorp, Inc. is a publicly owned company with total assets of $42.9 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.

6



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, the changes and effects thereof in trade, monetary and fiscal policies and laws, including the ongoing trade dispute between the U.S. and the People’s Republic of China; 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 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; government intervention in the financial system, including 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 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 of 2017; 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 in 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 increases in funding costs, a reduction in 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; 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, 2018, 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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2019
% or Basis Point Change
 
 
 
June 30, 2019
 
March 31, 2019
 
June 30, 2018
 
Qtr-o-Qtr
 
Yr-o-Yr
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
425,949

 
$
462,254

 
$
415,653

 
(7.9
)%
 
2.5
%
 
 
Interest-bearing cash with banks
 
3,195,665

 
3,323,071

 
1,881,818

 
(3.8
)
 
69.8

 
 
Cash and cash equivalents
 
3,621,614

 
3,785,325

 
2,297,471

 
(4.3
)
 
57.6

 
 
Interest-bearing deposits with banks
 
150,273

 
134,000

 
360,900

 
12.1

 
(58.4
)
 
 
Securities purchased under resale agreements (“resale agreements”) (1)
 
1,010,000

 
1,035,000

 
975,000

 
(2.4
)
 
3.6

 
 
Available-for-sale (“AFS”) investment securities
 
2,592,913

 
2,640,158

 
2,707,444

 
(1.8
)
 
(4.2
)
 
 
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stock
 
78,093

 
74,736

 
73,524

 
4.5

 
6.2

 
 
Loans held-for-sale (“HFS”)
 
3,879

 

 
14,658

 
100.0

 
(73.5
)
 
 
Loans held-for-investment (net of allowance for loan losses of $330,625, $317,894 and $301,550)
 
33,399,752

 
32,545,392

 
29,928,829

 
2.6

 
11.6

 
 
Investments in qualified affordable housing partnerships, net
 
198,466

 
197,470

 
152,556

 
0.5

 
30.1

 
 
Investments in tax credit and other investments, net
 
210,387

 
217,445

 
242,595

 
(3.2
)
 
(13.3
)
 
 
Goodwill
 
465,697

 
465,697

 
465,547

 

 
0.0

 
 
Operating lease right-of-use assets (2)
 
109,032

 
104,289

 

 
4.5

 
100.0

 
 
Other assets
 
1,052,252

 
891,921

 
824,672

 
18.0

 
27.6

 
 
Total assets
 
$
42,892,358


$
42,091,433


$
38,043,196

 
1.9
%
 
12.7
%
 
 
 
 
 
 
 
 
 
 


 


 
Liabilities and Stockholders’ Equity
 
 

 
 

 
 

 


 


 
 
Deposits
 
$
36,477,542

 
$
36,273,972

 
$
32,776,132

 
0.6
%
 
11.3
%
 
 
Short-term borrowings
 
19,972

 
39,550

 
58,523

 
(49.5
)
 
(65.9
)
 
 
FHLB advances
 
745,074

 
344,657

 
325,020

 
116.2

 
129.2

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

 
50,000

 
50,000

 

 

 
 
Long-term debt and finance lease liabilities
 
152,506

 
152,433

 
161,704

 
0.0

 
(5.7
)
 
 
Operating lease liabilities (2)
 
117,448

 
112,843

 

 
4.1

 
100.0

 
 
Accrued expenses and other liabilities
 
595,223

 
526,048

 
557,533

 
13.1

 
6.8

 
 
Total liabilities
 
38,157,765

 
37,499,503

 
33,928,912

 
1.8

 
12.5

 
 
Stockholders’ equity (2)
 
4,734,593

 
4,591,930

 
4,114,284

 
3.1

 
15.1

 
 
Total liabilities and stockholders’ equity
 
$
42,892,358

 
$
42,091,433

 
$
38,043,196

 
1.9
%
 
12.7
%
 
 
 
 
 
 
 
 
 
 


 


 
 
Book value per common share
 
$
32.53

 
$
31.56

 
$
28.39

 
3.1
%
 
14.6
%
 
 
Tangible equity (3) per common share
 
$
29.20

 
$
28.21

 
$
25.01

 
3.5

 
16.8

 
 
Number of common shares at period-end
 
145,547

 
145,501

 
144,905

 
0.0

 
0.4

 
 
Tangible equity to tangible assets ratio (3)
 
10.02
%
 
9.87
%
 
9.65
%
 
15

bps
37

bps
 
 
 
 
 
 
 
(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 June 30, 2019, March 31, 2019 and June 30, 2018, $400.0 million out of $450.0 million of gross repurchase agreements were eligible for netting against gross resale agreements.
(2)
The Company’s adoption of ASU 2016-02, Leases (Topic 842) in the first quarter of 2019 resulted in the recognition of $104.3 million and $112.8 million increase in right-of-use assets and associated lease liabilities, respectively, arising from operating leases in which the Company is the lessee. We adopted this guidance using the alternative transition method, which allows the adoption of the accounting standard prospectively without adjusting comparative prior period financial information and also recognized a cumulative effect adjustment of approximately $14.7 million that increased retained earnings related to deferred gains on our prior sale-leaseback transactions.
(3)
See reconciliation of GAAP to non-GAAP financial measures in Table 16.

8



EAST WEST BANCORP, INC. AND SUBSIDIARIES
TOTAL LOANS AND DEPOSITS DETAIL
($ in thousands)
(unaudited)
Table 2
 
 
 
 
 
 
 
 
 
 
June 30, 2019
% Change
 
 
 
June 30, 2019
 
March 31, 2019
 
June 30, 2018
 
Qtr-o-Qtr
 
Yr-o-Yr
Loans:
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial (“C&I”)
 
$
12,402,967

 
$
12,040,806

 
$
11,059,019

 
3.0
%
 
12.2
%
 
Commercial real estate (“CRE”)
 
9,868,433

 
9,636,338

 
9,054,567

 
2.4

 
9.0

 
Multifamily residential
 
2,372,345

 
2,270,590

 
2,032,522

 
4.5

 
16.7

 
Construction and land
 
674,798

 
647,380

 
623,837

 
4.2

 
8.2

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Single-family residential
 
6,494,882

 
6,309,331

 
5,316,895

 
2.9

 
22.2

 
Home equity lines of credit (“HELOCs”)
 
1,575,150

 
1,626,222

 
1,769,511

 
(3.1
)
 
(11.0
)
 
Other consumer
 
341,802

 
332,619

 
374,028

 
2.8

 
(8.6
)
 
Total loans held-for-investment (1)(2)
 
33,730,377


32,863,286


30,230,379

 
2.6

 
11.6

Loans HFS
 
3,879

 

 
14,658

 
100.0

 
(73.5
)
 
Total loans (1)(2)
 
33,734,256

 
32,863,286

 
30,245,037

 
2.7

 
11.5

Allowance for loan losses
 
(330,625
)
 
(317,894
)
 
(301,550
)
 
4.0

 
9.6

 
Net loans (1)(2)
 
$
33,403,631

 
$
32,545,392

 
$
29,943,487

 
2.6
%
 
11.6
%
 
 
 
 
 
 
 
 
 
 
 


Deposits:
 
 

 
 

 
 

 
 
 


 
Noninterest-bearing demand
 
$
10,599,088

 
$
10,011,533

 
$
10,739,333

 
5.9
%
 
(1.3
)%
 
Interest-bearing checking
 
5,083,675

 
6,123,681

 
4,323,698

 
(17.0
)
 
17.6

 
Money market
 
8,009,325

 
8,243,003

 
7,634,850

 
(2.8
)
 
4.9

 
Savings
 
2,188,738

 
2,049,086

 
2,218,228

 
6.8

 
(1.3
)
 
Total core deposits
 
25,880,826

 
26,427,303

 
24,916,109

 
(2.1
)
 
3.9

 
Time deposits
 
10,596,716

 
9,846,669

 
7,860,023

 
7.6

 
34.8

 
Total deposits
 
$
36,477,542

 
$
36,273,972


$
32,776,132

 
0.6
%
 
11.3
%
 
(1)
Includes $(43.8) million, $(46.0) million and $(40.4) million as of June 30, 2019, March 31, 2019 and June 30, 2018, respectively, of net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts.
(2)
Includes ASC 310-30 discount of $18.9 million, $20.4 million and $26.8 million as of June 30, 2019, March 31, 2019 and June 30, 2018, respectively.


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
 
June 30, 2019
% Change
 
 
 
June 30, 2019
 
March 31, 2019
 
June 30, 2018
 
Qtr-o-Qtr
 
Yr-o-Yr
Interest and dividend income
 
$
474,844

 
$
463,311

 
$
400,311

 
2.5
%
 
18.6
%
Interest expense
 
107,518

 
100,850

 
58,632

 
6.6

 
83.4

Net interest income before provision for credit losses
 
367,326

 
362,461

 
341,679

 
1.3

 
7.5

Provision for credit losses
 
19,245

 
22,579

 
15,536

 
(14.8
)
 
23.9

Net interest income after provision for credit losses
 
348,081

 
339,882

 
326,143

 
2.4

 
6.7

Noninterest income
 
52,759

 
42,131

 
48,268

 
25.2

 
9.3

Noninterest expense
 
177,663

 
186,922

 
177,419

 
(5.0
)
 
0.1

Income before income taxes
 
223,177

 
195,091

 
196,992

 
14.4

 
13.3

Income tax expense
 
72,797

 
31,067

 
24,643

 
134.3

 
195.4

Net income
 
$
150,380

 
$
164,024

 
$
172,349

 
(8.3
)%
 
(12.7
)%
Earnings per share (“EPS”)
 
 

 
 

 
 

 


 


- Basic
 
$
1.03

 
$
1.13

 
$
1.19

 
(8.5
)%
 
(13.1
)%
- Diluted
 
$
1.03

 
$
1.12

 
$
1.18

 
(8.4
)
 
(12.7
)
Weighted average number of shares outstanding
 
 
 
 
 
 
 


 


- Basic
 
145,546

 
145,256

 
144,899

 
0.2
%
 
0.4
%
- Diluted
 
146,052

 
145,921

 
146,091

 
0.1

 
0.0

 
 
 
 
 
 
 
 
 


 


 
 
 
Three Months Ended
 
June 30, 2019
% Change
 
 
 
June 30, 2019
 
March 31, 2019
 
June 30, 2018
 
Qtr-o-Qtr
 
Yr-o-Yr
Noninterest income:
 
 

 
 

 
 

 


 


 
Lending fees
 
$
16,242

 
$
14,796

 
$
14,692

 
9.8
%
 
10.5
%
 
Deposit account fees
 
9,788

 
9,641

 
10,140

 
1.5

 
(3.5
)
 
Foreign exchange income
 
7,286

 
5,015

 
6,822

 
45.3

 
6.8

 
Wealth management fees
 
3,800

 
3,812

 
4,501

 
(0.3
)
 
(15.6
)
 
Interest rate contracts and other derivative income
 
10,398

 
3,216

 
6,570

 
223.3

 
58.3

 
Net gains on sales of loans
 
15

 
915

 
2,354

 
(98.4
)
 
(99.4
)
 
Net gains on sales of AFS investment securities
 
1,447

 
1,561

 
210

 
(7.3
)
 
589.0

 
Other income
 
3,783

 
3,175

 
2,979

 
19.1

 
27.0

Total noninterest income
 
$
52,759

 
$
42,131

 
$
48,268

 
25.2
%
 
9.3
%
Noninterest expense:
 
 

 
 

 
 

 


 


 
Compensation and employee benefits
 
$
100,531

 
$
102,299

 
$
93,865

 
(1.7
)%
 
7.1
%
 
Occupancy and equipment expense
 
17,362

 
17,318

 
16,707

 
0.3

 
3.9

 
Deposit insurance premiums and regulatory assessments
 
2,919

 
3,088

 
5,832

 
(5.5
)
 
(49.9
)
 
Legal expense
 
2,355

 
2,225

 
2,837

 
5.8

 
(17.0
)
 
Data processing
 
3,460

 
3,157

 
3,327

 
9.6

 
4.0

 
Consulting expense
 
2,069

 
2,059

 
5,120

 
0.5

 
(59.6
)
 
Deposit related expense
 
3,338

 
3,504

 
2,922

 
(4.7
)
 
14.2

 
Computer software expense
 
6,211

 
6,078

 
5,549

 
2.2

 
11.9

 
Other operating expense
 
22,679

 
22,289

 
20,779

 
1.7

 
9.1

 
Amortization of tax credit and other investments
 
16,739

 
24,905

 
20,481

 
(32.8
)
 
(18.3
)
Total noninterest expense
 
$
177,663

 
$
186,922

 
$
177,419

 
(5.0
)%
 
0.1
%
 

10



EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
($ and shares in thousands, except per share data)
(unaudited)
Table 4
 
 
 
 
Six Months Ended
 
June 30, 2019
% Change
 
 
 
June 30, 2019
 
June 30, 2018
 
Yr-o-Yr
Interest and dividend income
 
$
938,155

 
$
772,184

 
21.5
%
Interest expense
 
208,368

 
103,812

 
100.7

Net interest income before provision for credit losses
 
729,787

 
668,372

 
9.2

Provision for credit losses
 
41,824

 
35,754

 
17.0

Net interest income after provision for credit losses
 
687,963

 
632,618

 
8.7

Noninterest income
 
94,890

 
122,712

 
(22.7
)
Noninterest expense
 
364,585

 
346,554

 
5.2

Income before income taxes
 
418,268

 
408,776

 
2.3

Income tax expense
 
103,864

 
49,395

 
110.3

Net income
 
$
314,404

 
$
359,381

 
(12.5
)%
EPS
 
 

 
 

 


- Basic
 
$
2.16

 
$
2.48

 
(12.9
)%
- Diluted
 
$
2.15

 
$
2.46

 
(12.5
)
Weighted average number of shares outstanding
 
 
 
 
 


- Basic
 
145,402

 
144,782

 
0.4
%
- Diluted
 
146,016

 
146,046

 
0.0

 
 
 
 
 
 
 
 
 
 
 
Six Months Ended
 
June 30, 2019
% Change
 
 
 
June 30, 2019
 
June 30, 2018
 
Yr-o-Yr
Noninterest income:
 
 

 
 

 
 
 
Lending fees
 
$
31,038

 
$
28,705

 
8.1
%
 
Deposit account fees
 
19,429

 
20,570

 
(5.5
)
 
Foreign exchange income
 
12,301

 
7,992

 
53.9

 
Wealth management fees
 
7,612

 
7,454

 
2.1

 
Interest rate contracts and other derivative income
 
13,614

 
13,260

 
2.7

 
Net gains on sales of loans
 
930

 
3,936

 
(76.4
)
 
Net gains on sales of AFS investment securities
 
3,008

 
2,339

 
28.6

 
Net gain on sale of business
 

 
31,470

 
(100.0
)
 
Other income
 
6,958

 
6,986

 
(0.4
)
Total noninterest income
 
$
94,890


$
122,712

 
(22.7
)%
Noninterest expense:
 
 

 
 

 


 
Compensation and employee benefits
 
$
202,830

 
$
189,099

 
7.3
%
 
Occupancy and equipment expense
 
34,680

 
33,587

 
3.3

 
Deposit insurance premiums and regulatory assessments
 
6,007

 
12,105

 
(50.4
)
 
Legal expense
 
4,580

 
5,092

 
(10.1
)
 
Data processing
 
6,617

 
6,728

 
(1.6
)
 
Consulting expense
 
4,128

 
7,472

 
(44.8
)
 
Deposit related expense
 
6,842

 
5,601

 
22.2

 
Computer software expense
 
12,289

 
10,603

 
15.9

 
Other operating expense
 
44,968

 
38,386

 
17.1

 
Amortization of tax credit and other investments
 
41,644

 
37,881

 
9.9

Total noninterest expense
 
$
364,585

 
$
346,554

 
5.2
%
 
 

11



EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED AVERAGE BALANCES
($ in thousands)
(unaudited)
Table 5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
June 30, 2019
% Change
 
Six Months Ended
 
June 30, 2019
% Change
 
 
 
June 30,
2019
 
March 31, 2019
 
June 30,
2018
 
Qtr-o-Qtr
 
Yr-o-Yr
 
June 30,
2019
 
June 30,
2018
 
Yr-o-Yr
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
C&I
 
$
12,003,277

 
$
11,845,860

 
$
10,747,074

 
1.3
%
 
11.7
%
 
$
11,925,003

 
$
10,729,924

 
11.1
%
 
CRE
 
9,700,208

 
9,568,571

 
9,038,228

 
1.4

 
7.3

 
9,634,753

 
9,022,498

 
6.8

 
Multifamily residential
 
2,311,629

 
2,307,374

 
1,970,538

 
0.2

 
17.3

 
2,309,513

 
1,957,599

 
18.0

 
Construction and land
 
675,967

 
584,445

 
667,997

 
15.7

 
1.2

 
630,459

 
662,811

 
(4.9
)
Consumer:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Single-family residential
 
6,373,715

 
6,151,550

 
5,103,008

 
3.6

 
24.9

 
6,263,246

 
4,938,134

 
26.8

 
HELOCs
 
1,607,311

 
1,652,211

 
1,787,036

 
(2.7
)
 
(10.1
)
 
1,629,637

 
1,783,160

 
(8.6
)
 
Other consumer
 
309,267

 
304,774

 
332,885

 
1.5

 
(7.1
)
 
307,033

 
336,411

 
(8.7
)
 
Total loans (1)(2)
 
$
32,981,374

 
$
32,414,785

 
$
29,646,766

 
1.7
%
 
11.2
%
 
$
32,699,644

 
$
29,430,537

 
11.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AFS investment securities
 
$
2,551,383

 
$
2,642,299

 
$
2,735,023

 
(3.4
)%
 
(6.7
)%
 
$
2,596,590

 
$
2,794,350

 
(7.1
)%
Interest-earning assets
 
$
39,461,101

 
$
38,745,004

 
$
35,767,808

 
1.8
%
 
10.3
%
 
$
39,105,030

 
$
35,641,438

 
9.7
%
Total assets
 
$
41,545,441

 
$
40,738,404

 
$
37,568,895

 
2.0
%
 
10.6
%
 
$
41,144,152

 
$
37,475,515

 
9.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 

 
 

 
 

 
 
 
 
 
 

 
 

 
 
 
Noninterest-bearing demand
 
$
10,237,868

 
$
10,071,370

 
$
10,984,950

 
1.7
%
 
(6.8
)%
 
$
10,155,079

 
$
11,136,389

 
(8.8
)%
 
Interest-bearing checking
 
5,221,110

 
5,270,855

 
4,387,479

 
(0.9
)
 
19.0

 
5,245,845

 
4,473,111

 
17.3

 
Money market
 
7,856,055

 
8,080,848

 
7,880,601

 
(2.8
)
 
(0.3
)
 
7,967,831

 
8,075,796

 
(1.3
)
 
Savings
 
2,106,626

 
2,091,406

 
2,214,793

 
0.7

 
(4.9
)
 
2,099,058

 
2,332,966

 
(10.0
)
 
Total core deposits
 
25,421,659

 
25,514,479

 
25,467,823

 
(0.4
)
 
(0.2
)
 
25,467,813

 
26,018,262

 
(2.1
)
 
Time deposits
 
9,904,726

 
9,408,897

 
6,907,174

 
5.3

 
43.4

 
9,658,181

 
6,315,194

 
52.9

 
Total deposits
 
$
35,326,385

 
$
34,923,376

 
$
32,374,997

 
1.2
%
 
9.1
%
 
$
35,125,994

 
$
32,333,456

 
8.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities
 
$
25,860,541

 
$
25,452,835

 
$
21,938,134

 
1.6
%
 
17.9
%
 
$
25,657,814

 
$
21,746,927

 
18.0
%
Stockholders’ equity
 
$
4,684,348

 
$
4,537,301

 
$
4,062,311

 
3.2
%
 
15.3
%
 
$
4,611,231

 
$
3,993,004

 
15.5
%
 
(1)
Includes ASC 310-30 discount of $19.9 million, $21.6 million and $30.0 million for the three months ended June 30, 2019, March 31, 2019 and June 30, 2018, respectively, and $20.8 million and $32.0 million for the six months ended June 30, 2019 and 2018, respectively.
(2)
Includes loans HFS.

12



EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 6
 
 
 
 
Three Months Ended
 
 
 
June 30, 2019
 
March 31, 2019
 
 
 
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
 
$
2,852,060

 
$
16,861

 
2.37
%
 
$
2,578,686

 
$
15,470

 
2.43
%
 
Resale agreements (2)
 
999,835

 
7,343

 
2.95
%
 
1,035,000

 
7,846

 
3.07
%
 
AFS investment securities
 
2,551,383

 
15,685

 
2.47
%
 
2,642,299

 
15,748

 
2.42
%
 
Loans (3)
 
32,981,374

 
434,450

 
5.28
%
 
32,414,785

 
423,534

 
5.30
%
 
FHLB and FRB stock
 
76,449

 
505

 
2.65
%
 
74,234

 
713

 
3.90
%
 
Total interest-earning assets
 
39,461,101

 
474,844

 
4.83
%
 
38,745,004

 
463,311

 
4.85
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-earning assets:
 
 

 
 

 
 

 
 

 
 

 
 

 
Cash and due from banks
 
439,449

 
 
 
 
 
468,159

 
 

 
 

 
Allowance for loan losses
 
(321,335
)
 
 
 
 
 
(314,446
)
 
 

 
 

 
Other assets
 
1,966,226

 
 
 
 
 
1,839,687

 
 

 
 

 
Total assets
 
$
41,545,441

 
 

 
 

 
$
40,738,404

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders’ Equity
 
 
 
 

 
 

 
 

 
 

 
 

Interest-bearing liabilities:
 
 

 
 

 
 

 
 

 
 

 
 

 
Checking deposits
 
$
5,221,110

 
$
15,836

 
1.22
%
 
$
5,270,855

 
$
14,255

 
1.10
%
 
Money market deposits
 
7,856,055

 
28,681

 
1.46
%
 
8,080,848

 
30,234

 
1.52
%
 
Savings deposits
 
2,106,626

 
2,477

 
0.47
%
 
2,091,406

 
2,227

 
0.43
%
 
Time deposits
 
9,904,726

 
50,970

 
2.06
%
 
9,408,897

 
45,289

 
1.95
%
 
Federal funds purchased and other short-term borrowings
 
35,575

 
361

 
4.07
%
 
60,442

 
616

 
4.13
%
 
FHLB advances
 
533,841

 
4,011

 
3.01
%
 
338,027

 
2,979

 
3.57
%
 
Repurchase agreements (2)
 
50,000

 
3,469

 
27.83
%
 
50,000

 
3,492

 
28.32
%
 
Long-term debt and finance lease liabilities
 
152,608

 
1,713

 
4.50
%
 
152,360

 
1,758

 
4.68
%
 
Total interest-bearing liabilities
 
25,860,541

 
107,518

 
1.67
%
 
25,452,835

 
100,850

 
1.61
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing liabilities and stockholders’ equity: