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Section 1: 8-K (8-K)

Document
false0001069157 0001069157 2019-10-17 2019-10-17




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)
October 17, 2019

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

Delaware
(State or other jurisdiction of incorporation)

000-24939
(Commission File Number)

95-4703316
(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(s)
 
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 October 17, 2019, East West Bancorp, Inc. (the “Company”) announced, via press release, its financial results for the quarter ended September 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 October 17, 2019, the Company will hold a conference call to discuss its financial results for the quarter ended September 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 or the Securities Act, except as otherwise expressly stated in such filing.

Item 9.01. Financial Statements and Exhibits
 
(d) Exhibits
Press Release, dated October 17,2019.
 
 
 
Presentation Materials, dated October 17, 2019.
 
 
 
104
Cover Page Interactive Data (formatted as Inline XBRL). Filed herewith.
 
 
 
 
 
 
 
 



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: October 17, 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
 
 
400421319_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 THIRD QUARTER 2019
OF $171 MILLION AND DILUTED EARNINGS PER SHARE OF $1.17;
RECORD OPERATING REVENUE OF $421 MILLION


Pasadena, California October 17, 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 third quarter of 2019. For the third quarter of 2019, net income was $171.4 million or $1.17 per diluted share, both up by 14% compared to the second quarter of 2019. Third quarter 2019 return on average assets was 1.58% and return on average equity was 14.1%.

“For the third quarter of 2019, East West achieved both record total operating1 revenue of $421 million and record net interest income of $370 million,” stated Dominic Ng, Chairman and Chief Executive Officer of East West. “In a challenging environment of declining interest rates, we achieved a quarter-over-quarter increase in net interest income through balance sheet growth combined with a decrease in the cost of deposits. For the third quarter of 2019, the average cost of deposits decreased by six basis points to 1.05%, compared to 1.11% in the second quarter of 2019.”

“Total loans grew $291 million, or 3% annualized, to a record $34.0 billion as of September 30, 2019 from $33.7 billion as of June 30, 2019. Year-to-date, total loans grew 7% annualized. Total deposits grew $182 million, or 2% annualized, to a record $36.7 billion as of September 30, 2019 from $36.5 billion as of June 30, 2019. Year-to-date, total deposits grew 5% annualized.”

“We maintained strong expense discipline, resulting in a modest decline in noninterest expenses quarter-over-quarter,” continued Ng. “However, the provision for credit losses increased to $38 million for the third quarter, and our pre-tax income declined by 7.5% from the second quarter of 2019. Nevertheless, net income grew 14% quarter-over-quarter as we benefitted from a linked-quarter reduction in the income tax expense.”

“Overall, our third quarter 2019 return on assets was 1.58% and return on equity was 14.1%. We continue to deliver strong returns, in line with our long-term track record of generating attractive profitability,” concluded Ng.










 
 
 
 
1 Operating revenue consists of net interest income before provision for credit losses and noninterest income, excluding non-operating items.

1



HIGHLIGHTS OF RESULTS

Third Quarter Earnings Third quarter 2019 net income was $171.4 million, up by 14% compared to second quarter 2019 net income of $150.4 million, but 5% lower than second quarter adjusted2 net income of $180.5 million. Third quarter 2019 diluted earnings per share (“EPS”) were $1.17, up by 14% compared to second quarter 2019 diluted EPS of $1.03, but 5% lower than second quarter adjusted2 EPS of $1.24.

Net Interest Income and Net Interest Margin Third quarter 2019 net interest income (“NII”) was $369.8 million, a quarterly increase of $2.5 million or 1%, and a year-over-year increase of $21.1 million or 6%. Third quarter 2019 net interest margin (“NIM”) was 3.59%, a 14 basis point contraction from 3.73% in the previous quarter. Quarter-over-quarter, the average loan yield contracted by 17 basis points, and the average cost of deposits decreased by six basis points.

Record Loans Total loans of $34.0 billion as of September 30, 2019 were up $291.0 million, or 3% linked quarter annualized, from $33.7 billion as of June 30, 2019. Total loans grew $2.8 billion, or 9% year-over-year. Average loans of $33.7 billion grew $679.9 million quarter-over-quarter, or 8% linked quarter annualized. Average loan growth during the quarter was well-diversified across commercial and consumer loan portfolios.

Record Deposits Total deposits of $36.7 billion as of September 30, 2019 were up $182.0 million, or 2% linked quarter annualized, from $36.5 billion as of June 30, 2019. Total deposits grew $3.0 billion, or 9% year-over-year. Average deposits of $36.5 billion grew $1.2 billion quarter-over-quarter, or 13% linked quarter annualized. Average deposit growth during the quarter was well balanced across money market, noninterest-bearing demand and time deposits, partially offset by a decrease in interest-bearing checking accounts.

Asset Quality Metrics The allowance for loan losses was $345.6 million, or 1.02% of loans held-for-investment (“HFI”) as of September 30, 2019; the comparable ratios were 0.98% as of June 30, 2019, and 0.99% as of September 30, 2018. Non-purchased credit impaired (“Non-PCI”) nonperforming assets were $134.5 million, or 0.31% of total assets as of September 30, 2019; the comparable ratios were 0.28% as of June 30, 2019, and 0.29% as of September 30, 2018. For the third quarter of 2019, the provision for credit losses was $38.3 million; net charge-offs were $22.5 million, or annualized 0.26% of average loans HFI.

Capital Levels Capital levels for East West were strong. As of September 30, 2019, stockholders’ equity was $4.9 billion, or $33.54 per share. Tangible equity3 per common share was $30.22 as of September 30, 2019, an increase of 4% linked quarter and 17% year-over-year.

As of September 30, 2019, the tangible equity to tangible assets ratio3 was 10.3%, the common equity tier 1 (“CET1”) capital ratio was 12.8%, and the total risk-based capital ratio was 14.2%.



















 
 
 
 
2 See reconciliation of GAAP to non-GAAP financial measures in Table 13.
3 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)
 
September 30,
2019
 
June 30,
2019
 
September 30,
2018
Net income
 
$
171.4

 
$
150.4

 
$
171.3

Adjusted net income (1)
 
$
171.4

 
$
180.5

 
$
171.3

Earnings per share (diluted)
 
$
1.17

 
$
1.03

 
$
1.17

Adjusted earnings per share (diluted) (1)
 
$
1.17

 
$
1.24

 
$
1.17

Book value per common share
 
$
33.54

 
$
32.53

 
$
29.29

Tangible equity (1) per common share
 
$
30.22

 
$
29.20

 
$
25.91

Tangible equity to tangible assets ratio (1)
 
10.28
%
 
10.02
%
 
9.74
%
Return on average assets (2)
 
1.58
%
 
1.45
%
 
1.76
%
Return on average equity (2)
 
14.1
%
 
12.9
%
 
16.2
%
Return on average tangible equity (1)(2)
 
15.7
%
 
14.5
%
 
18.5
%
Adjusted return on average assets (1)(2)
 
1.58
%
 
1.74
%
 
1.76
%
Adjusted return on average equity (1)(2)
 
14.1
%
 
15.5
%
 
16.2
%
Adjusted return on average tangible equity (1)(2)
 
15.7
%
 
17.4
%
 
18.5
%
Adjusted pre-tax, pre-provision profitability ratio (1)(2)
 
2.42
%
 
2.51
%
 
2.44
%
Net interest income
 
$
369.8

 
$
367.3

 
$
348.7

Adjusted net interest income (1)
 
$
367.3

 
$
365.6

 
$
345.9

Net interest margin (2)
 
3.59
%
 
3.73
%
 
3.76
%
Adjusted net interest margin (1)(2)
 
3.56
%
 
3.71
%
 
3.72
%
Average loan yield (2)
 
5.11
%
 
5.28
%
 
5.02
%
Adjusted average loan yield (1)(2)
 
5.08
%
 
5.26
%
 
4.97
%
Average cost of deposits (2)
 
1.05
%
 
1.11
%
 
0.78
%
Efficiency ratio
 
41.9
%
 
42.3
%
 
45.5
%
Adjusted efficiency ratio (1)
 
37.7
%
 
38.0
%
 
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 its full year 2018 results. The components are as follows:

End of Period Loans: increase by approximately 7% year-over-year.

Net Interest Income (excluding ASC 310-30 discount accretion income): increase by approximately 6% year-over-year.

Net Interest Margin (excluding the impact of ASC 310-30 discount accretion): between 3.60% and 3.65%.

Noninterest Expense (excluding amortization of tax credit investments & core deposit intangibles): increase by approximately 3% year-over-year.

Provision for Credit Losses: approximately $100 million.

Tax Items: projecting full year effective tax rate of approximately 20%, including the impact of a $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: 25-basis point cut to the fed funds rate in October 2019.








3



OPERATING RESULTS SUMMARY

Third Quarter 2019 Compared to Second Quarter 2019

Net Interest Income and Net Interest Margin
Net interest income totaled $369.8 million, a 1% increase from $367.3 million. Net interest margin of 3.59% contracted by 14 basis points from 3.73%.
Average loans of $33.7 billion grew $679.9 million, or 8% linked quarter annualized.
 
Average interest-earning assets of $40.9 billion grew $1.5 billion, or 15% linked quarter annualized. Growth came primarily from an increase in the average interest-bearing cash and deposits with banks of $695.6 million and the aforementioned increase in average loans.
 
Average deposits of $36.5 billion grew $1.2 billion, or 13% linked quarter annualized.
 
The average yield on loans contracted by 17 basis points to 5.11% from 5.28%, reflecting the decline in Libor rates and two 25-basis point reductions in the fed funds rate during the current quarter. The yield on average interest-earning assets contracted by 21 basis points to 4.62% from 4.83%.
 
The average cost of deposits decreased by six basis points to 1.05% from 1.11%, and the average cost of interest-bearing deposits decreased by eight basis points to 1.49% from 1.57%.


Noninterest Income
Noninterest income totaled $51.5 million, a 2% decrease from $52.8 million.
The $2.0 million increase in net gains on sales of loans primarily reflected an increase in the volume of SBA loans sold. Wealth management fees increased $1.0 million, reflecting an increase in customer activity.
 
The $2.0 million decrease in interest rate contracts and other derivative income primarily reflected the quarter-over-quarter change in the credit valuation adjustment, which was driven by the decline in long-term interest rates during the third quarter of 2019. Customer driven interest rate contract revenue was $11.1 million during the third quarter, compared to $11.8 million in the second quarter.


Noninterest Expense
Noninterest expense totaled $176.6 million, a 1% decrease from $177.7 million.
Third quarter noninterest expense consisted of $158.6 million of adjusted4 noninterest expense, $16.8 million in amortization of tax credit and other investments, and $1.1 million in amortization of core deposit intangibles.
 
Adjusted noninterest expense of $158.6 million decreased by approximately $1.2 million, or 1%, from $159.8 million. The largest linked-quarter decrease was in compensation and employee benefits expense.
 
The adjusted4 efficiency ratio was 37.7% in the third quarter, an improvement of 37 basis points compared to 38.0% in the previous quarter.

















 
 
 
 
4  See reconciliation of GAAP to non-GAAP financial measures in Table 14.

4



TAX RELATED ITEMS

Third quarter 2019 income tax expense was $35.0 million and the effective tax rate was 17%. This compares to a tax expense of $72.8 million and an effective tax rate of 33% in the second quarter of 2019. 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 million5 and the effective tax rate was 19%5 in the second quarter of 2019.

For the full year 2019, the Company projects that its effective tax rate will be approximately 20%, including the impact of a $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 $345.6 million, or 1.02% of loans HFI, as of September 30, 2019, compared to $330.6 million, or 0.98% of loans HFI, as of June 30, 2019, and $310.0 million, or 0.99% of loans HFI, as of September 30, 2018.
Non-PCI nonperforming assets were $134.5 million, or 0.31% of total assets, as of September 30, 2019, compared to $119.3 million, or 0.28% of total assets, as of June 30, 2019, and $114.6 million, or 0.29% of total assets, as of September 30, 2018.
 
Net charge-offs for the third quarter of 2019 were $22.5 million, or annualized 0.26% of average loans HFI; the charge-offs in the quarter largely stemmed from three commercial loans. Year-to-date, net charge-offs were $44.5 million, or annualized 0.18% of average loans HFI. This compares to annualized quarterly and year-to-date net charge-offs to average loans HFI of 0.05% and 0.11%, respectively, for the period ended September 30, 2018.
 
The provision for credit losses recorded for the third quarter of 2019 was $38.3 million, compared to $19.2 million for the second quarter of 2019, and $10.5 million for the third quarter of 2018. Provision for credit losses was $80.1 million and $46.3 million for the nine month period ended September 30, 2019 and 2018, respectively.



CAPITAL STRENGTH

Capital levels for East West are strong. The following table presents the regulatory capital ratios for the quarters ended September 30, 2019, June 30, 2019, and September 30, 2018.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EWBC Regulatory Capital Metrics
 
Basel III
($ in millions)
 
September 30,
2019 (a)
 
June 30,
2019
 
September 30,
2018
 
Minimum
Capital
Ratio
 
Well
Capitalized
Ratio
 
Minimum
Capital Ratio +
Conservation Buffer
(b)
 
 
 
 
 
 
 
 
 
 
 
 
 
CET1 capital ratio
 
12.8
%
 
12.5
%
 
12.3
%
 
4.5
%
 
6.5
%
 
7.0
%
Tier 1 risk-based capital ratio
 
12.8
%
 
12.5
%
 
12.3
%
 
6.0
%
 
8.0
%
 
8.5
%
Total risk-based capital ratio
 
14.2
%
 
13.9
%
 
13.8
%
 
8.0
%
 
10.0
%
 
10.5
%
Tier 1 leverage capital ratio
 
10.3
%
 
10.4
%
 
10.0
%
 
4.0
%
 
5.0
%
 
4.0
%
Risk-Weighted Assets (“RWA”) (c)
 
$
34,424

 
$
34,154

 
$
31,210

 
N/A

 
N/A

 
N/A

 
 
 
 
 
 
 

 
 

 
 

 
 
 
 
N/A Not applicable.
(a)
The Company’s September 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.










 
 
 
 
5  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 fourth quarter 2019 dividends for the Company’s common stock. The common stock cash dividend of $0.275 per share is payable on November 15, 2019 to shareholders of record on November 1, 2019.


Conference Call

East West will host a conference call to discuss third quarter 2019 earnings with the public on Thursday, October 17, 2019 at 8:30 a.m. PT/11:30 a.m. ET. The public and investment community are invited to listen as management discusses third 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 October 17, 2019 at 11:30 a.m. Pacific Time through November 17, 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: 10135114.


About East West

East West Bancorp, Inc. is a publicly owned company with total assets of $43.3 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, 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; 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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2019
% or Basis Point Change
 
 
 
September 30, 2019
 
June 30, 2019
 
September 30, 2018
 
Qtr-o-Qtr
 
Yr-o-Yr
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
475,291

 
$
425,949

 
$
408,049

 
11.6
 %
 
16.5
%
 
 
Interest-bearing cash with banks
 
2,566,990

 
3,195,665

 
1,810,738

 
(19.7
)
 
41.8

 
 
Cash and cash equivalents
 
3,042,281

 
3,621,614

 
2,218,787

 
(16.0
)
 
37.1

 
 
Interest-bearing deposits with banks
 
160,423

 
150,273

 
400,900

 
6.8

 
(60.0
)
 
 
Securities purchased under resale agreements (“resale agreements”) (1)
 
860,000

 
1,010,000

 
1,035,000

 
(14.9
)
 
(16.9
)
 
 
Available-for-sale (“AFS”) investment securities
 
3,284,034

 
2,592,913

 
2,676,510

 
26.7

 
22.7

 
 
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stock
 
78,334

 
78,093

 
73,729

 
0.3

 
6.2

 
 
Loans held-for-sale (“HFS”)
 
294

 
3,879

 
3,114

 
(92.4
)
 
(90.6
)
 
 
Loans held-for-investment ("HFI") (net of allowance for loan losses of $345,576, $330,625 and $310,041)
 
33,679,400

 
33,399,752

 
30,900,144

 
0.8

 
9.0

 
 
Investments in qualified affordable housing partnerships, net
 
190,000

 
198,466

 
148,097

 
(4.3
)
 
28.3

 
 
Investments in tax credit and other investments, net
 
211,603

 
210,387

 
232,194

 
0.6

 
(8.9
)
 
 
Goodwill
 
465,697

 
465,697

 
465,547

 

 
0.0

 
 
Operating lease right-of-use assets
 
103,894

 
109,032

 

 
(4.7
)
 
100.0

 
 
Other assets
 
1,198,699

 
1,052,252

 
888,691

 
13.9

 
34.9

 
 
Total assets
 
$
43,274,659


$
42,892,358


$
39,042,713

 
0.9
%
 
10.8
%
 
 
 
 
 
 
 
 
 
 


 


 
Liabilities and Stockholders’ Equity
 
 

 
 

 
 

 


 


 
 
Deposits
 
$
36,659,526

 
$
36,477,542

 
$
33,629,124

 
0.5
%
 
9.0
%
 
 
Short-term borrowings
 
47,689

 
19,972

 
56,411

 
138.8

 
(15.5
)
 
 
FHLB advances
 
745,494

 
745,074

 
325,596

 
0.1

 
129.0

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

 
50,000

 
50,000

 

 

 
 
Long-term debt and finance lease liabilities
 
152,390

 
152,506

 
156,770

 
(0.1
)
 
(2.8
)
 
 
Operating lease liabilities
 
112,142

 
117,448

 

 
(4.5
)
 
100.0

 
 
Accrued expenses and other liabilities
 
624,754

 
595,223

 
579,962

 
5.0

 
7.7

 
 
Total liabilities
 
38,391,995

 
38,157,765

 
34,797,863

 
0.6

 
10.3

 
 
Stockholders’ equity
 
4,882,664

 
4,734,593

 
4,244,850

 
3.1

 
15.0

 
 
Total liabilities and stockholders’ equity
 
$
43,274,659

 
$
42,892,358

 
$
39,042,713

 
0.9
%
 
10.8
%
 
 
 
 
 
 
 
 
 
 


 


 
 
Book value per common share
 
$
33.54

 
$
32.53

 
$
29.29

 
3.1
%
 
14.5
%
 
 
Tangible equity (2) per common share
 
$
30.22

 
$
29.20

 
$
25.91

 
3.5

 
16.6

 
 
Number of common shares at period-end
 
145,568

 
145,547

 
144,929

 
0.0

 
0.4

 
 
Tangible equity to tangible assets ratio (2)
 
10.28
%
 
10.02
%
 
9.74
%
 
26

bps
54

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 September 30, 2019, June 30, 2019 and September 30, 2018, $400.0 million out of $450.0 million of gross repurchase agreements were eligible for netting against gross resale agreements.
(2)
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
 
 
 
 
 
 
 
 
 
 
September 30, 2019
% Change
 
 
 
September 30, 2019
 
June 30, 2019
 
September 30, 2018
 
Qtr-o-Qtr
 
Yr-o-Yr
Loans:
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial (“C&I”)
 
$
12,301,002

 
$
12,402,967

 
$
11,517,054

 
(0.8
)%
 
6.8
%
 
Commercial real estate (“CRE”)
 
9,749,583

 
9,663,624

 
9,078,933

 
0.9

 
7.4

 
Multifamily residential
 
2,589,203

 
2,577,154

 
2,273,957

 
0.5

 
13.9

 
Construction and land
 
719,900

 
674,798

 
605,033

 
6.7

 
19.0

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Single-family residential
 
6,811,014

 
6,494,882

 
5,684,587

 
4.9

 
19.8

 
Home equity lines of credit (“HELOCs”)
 
1,540,121

 
1,575,150

 
1,717,440

 
(2.2
)
 
(10.3
)
 
Other consumer
 
314,153

 
341,802

 
333,181

 
(8.1
)
 
(5.7
)
 
Total loans HFI (1)(2)
 
34,024,976


33,730,377


31,210,185

 
0.9

 
9.0

Loans HFS
 
294

 
3,879

 
3,114

 
(92.4
)
 
(90.6
)
 
Total loans (1)(2)
 
34,025,270

 
33,734,256

 
31,213,299

 
0.9

 
9.0

Allowance for loan losses
 
(345,576
)
 
(330,625
)
 
(310,041
)
 
4.5

 
11.5

 
Net loans (1)(2)
 
$
33,679,694

 
$
33,403,631

 
$
30,903,258

 
0.8
%
 
9.0
%
 
 
 
 
 
 
 
 
 
 
 


Deposits:
 
 

 
 

 
 

 
 
 


 
Noninterest-bearing demand
 
$
10,806,937

 
$
10,599,088

 
$
10,794,370

 
2.0
%
 
0.1
%
 
Interest-bearing checking
 
4,837,391

 
5,083,675

 
4,383,672

 
(4.8
)
 
10.4

 
Money market
 
8,400,353

 
8,009,325

 
7,608,191

 
4.9

 
10.4

 
Savings
 
2,094,638

 
2,188,738

 
2,142,105

 
(4.3
)
 
(2.2
)
 
Total core deposits
 
26,139,319

 
25,880,826

 
24,928,338

 
1.0

 
4.9

 
Time deposits
 
10,520,207

 
10,596,716

 
8,700,786

 
(0.7
)
 
20.9

 
Total deposits
 
$
36,659,526

 
$
36,477,542


$
33,629,124

 
0.5
%
 
9.0
%
 
(1)
Includes $(39.8) million, $(43.8) million and $(42.4) million as of September 30, 2019, June 30, 2019 and September 30, 2018, respectively, of net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts.
(2)
Includes ASC 310-30 discount of $16.7 million, $18.9 million and $24.5 million as of September 30, 2019, June 30, 2019 and September 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
 
September 30, 2019
% Change
 
 
 
September 30, 2019
 
June 30, 2019
 
September 30, 2018
 
Qtr-o-Qtr
 
Yr-o-Yr
Interest and dividend income
 
$
476,912

 
$
474,844

 
$
422,185

 
0.4
%
 
13.0
%
Interest expense
 
107,105

 
107,518

 
73,465

 
(0.4
)
 
45.8

Net interest income before provision for credit losses
 
369,807

 
367,326

 
348,720

 
0.7

 
6.0

Provision for credit losses
 
38,284

 
19,245

 
10,542

 
98.9

 
263.2

Net interest income after provision for credit losses
 
331,523

 
348,081

 
338,178

 
(4.8
)
 
(2.0
)
Noninterest income
 
51,474

 
52,759

 
46,502

 
(2.4
)
 
10.7

Noninterest expense
 
176,630

 
177,663

 
179,815

 
(0.6
)
 
(1.8
)
Income before income taxes
 
206,367

 
223,177

 
204,865

 
(7.5
)
 
0.7

Income tax expense
 
34,951

 
72,797

 
33,563

 
(52.0
)
 
4.1

Net income
 
$
171,416

 
$
150,380

 
$
171,302

 
14.0
%
 
0.1
%
Earnings per share (“EPS”)
 
 

 
 

 
 

 


 


- Basic
 
$
1.18

 
$
1.03

 
$
1.18

 
14.0
 %
 
(0.4
)%
- Diluted
 
$
1.17

 
$
1.03

 
$
1.17

 
13.9

 
0.1

Weighted average number of shares outstanding
 
 
 
 
 
 
 


 


- Basic
 
145,559

 
145,546

 
144,921

 
0.0
%
 
0.4
%
- Diluted
 
146,120

 
146,052

 
146,173

 
0.0

 
0.0

 
 
 
 
 
 
 
 
 


 


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

 
 

 
 

 


 


 
Lending fees
 
$
14,846

 
$
16,242

 
$
15,367

 
(8.6
)%
 
(3.4
)%
 
Deposit account fees
 
9,918

 
9,788

 
9,777

 
1.3

 
1.4

 
Foreign exchange income
 
8,065

 
7,286

 
6,077

 
10.7

 
32.7

 
Wealth management fees
 
4,841

 
3,800

 
3,535

 
27.4

 
36.9

 
Interest rate contracts and other derivative income
 
8,423

 
10,398

 
4,595

 
(19.0
)
 
83.3

 
Net gains on sales of loans
 
2,037

 
15

 
1,145

 
NM

 
77.9

 
Net gains on sales of AFS investment securities
 
58

 
1,447

 
35

 
(96.0
)
 
65.7

 
Net gains on sales of fixed assets
 
48

 

 
3,402

 
100.0

 
(98.6
)
 
Other income
 
3,238

 
3,783

 
2,569

 
(14.4
)
 
26.0

Total noninterest income
 
$
51,474

 
$
52,759

 
$
46,502

 
(2.4
)%
 
10.7
%
Noninterest expense:
 
 

 
 

 
 

 


 


 
Compensation and employee benefits
 
$
97,819

 
$
100,531

 
$
96,733

 
(2.7
)%
 
1.1
%
 
Occupancy and equipment expense
 
17,912

 
17,362

 
17,292

 
3.2

 
3.6

 
Deposit insurance premiums and regulatory assessments
 
3,550

 
2,919

 
6,013

 
21.6

 
(41.0
)
 
Legal expense
 
1,720

 
2,355

 
1,544

 
(27.0
)
 
11.4

 
Data processing
 
3,328

 
3,460

 
3,289

 
(3.8
)
 
1.2

 
Consulting expense
 
2,559

 
2,069

 
2,683

 
23.7

 
(4.6
)
 
Deposit related expense
 
3,584

 
3,338

 
2,600

 
7.4

 
37.8

 
Computer software expense
 
6,556

 
6,211

 
5,478

 
5.6

 
19.7

 
Other operating expense
 
22,769

 
22,679

 
23,394

 
0.4

 
(2.7
)
 
Amortization of tax credit and other investments
 
16,833

 
16,739

 
20,789

 
0.6

 
(19.0
)
Total noninterest expense
 
$
176,630

 
$
177,663

 
$
179,815

 
(0.6
)%
 
(1.8
)%
 
NM - Not meaningful.

10



EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
($ and shares in thousands, except per share data)
(unaudited)
Table 4
 
 
 
 
Nine Months Ended
 
September 30, 2019
% Change
 
 
 
September 30, 2019
 
September 30, 2018
 
Yr-o-Yr
Interest and dividend income
 
$
1,415,067

 
$
1,194,369

 
18.5
%
Interest expense
 
315,473

 
177,277

 
78.0

Net interest income before provision for credit losses
 
1,099,594

 
1,017,092

 
8.1

Provision for credit losses
 
80,108

 
46,296

 
73.0

Net interest income after provision for credit losses
 
1,019,486

 
970,796

 
5.0

Noninterest income
 
146,364

 
169,214

 
(13.5
)
Noninterest expense
 
541,215

 
526,369

 
2.8

Income before income taxes
 
624,635

 
613,641

 
1.8

Income tax expense
 
138,815

 
82,958

 
67.3

Net income
 
$
485,820

 
$
530,683

 
(8.5
)%
EPS
 
 

 
 

 


- Basic
 
$
3.34

 
$
3.66

 
(8.8
)%
- Diluted
 
$
3.33

 
$
3.63

 
(8.4
)
Weighted average number of shares outstanding
 
 
 
 
 


- Basic
 
145,455

 
144,829

 
0.4
%
- Diluted
 
146,088

 
146,158

 
0.0

 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
 
September 30, 2019
% Change
 
 
 
September 30, 2019
 
September 30, 2018
 
Yr-o-Yr
Noninterest income:
 
 

 
 

 
 
 
Lending fees
 
$
45,884

 
$
44,072

 
4.1
%
 
Deposit account fees
 
29,347

 
30,347

 
(3.3
)
 
Foreign exchange income
 
20,366

 
14,069

 
44.8

 
Wealth management fees
 
12,453

 
10,989

 
13.3

 
Interest rate contracts and other derivative income
 
22,037

 
17,855

 
23.4

 
Net gains on sales of loans
 
2,967

 
5,081

 
(41.6
)
 
Net gains on sales of AFS investment securities
 
3,066

 
2,374

 
29.1

 
Net gains on sales of fixed assets
 
48

 
5,602

 
(99.1
)
 
Net gain on sale of business
 

 
31,470

 
(100.0
)
 
Other income
 
10,196

 
7,355

 
38.6

Total noninterest income
 
$
146,364


$
169,214

 
(13.5
)%
Noninterest expense:
 
 

 
 

 


 
Compensation and employee benefits
 
$
300,649

 
$
285,832

 
5.2
%
 
Occupancy and equipment expense
 
52,592

 
50,879

 
3.4

 
Deposit insurance premiums and regulatory assessments
 
9,557

 
18,118

 
(47.3
)
 
Legal expense
 
6,300

 
6,636

 
(5.1
)
 
Data processing
 
9,945

 
10,017

 
(0.7
)
 
Consulting expense
 
6,687

 
10,155

 
(34.2
)
 
Deposit related expense
 
10,426

 
8,201

 
27.1

 
Computer software expense
 
18,845

 
16,081

 
17.2

 
Other operating expense
 
67,737

 
61,780

 
9.6

 
Amortization of tax credit and other investments
 
58,477

 
58,670

 
(0.3
)
Total noninterest expense
 
$
541,215

 
$
526,369

 
2.8
%
 
 

11



EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED AVERAGE BALANCES
($ in thousands)
(unaudited)
Table 5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
September 30, 2019
% Change
 
Nine Months Ended
 
September 30, 2019
% Change
 
 
 
September 30,
2019
 
June 30,
2019
 
September 30,
2018
 
Qtr-o-Qtr
 
Yr-o-Yr
 
September 30,
2019
 
September 30,
2018
 
Yr-o-Yr
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
C&I
 
$
12,203,341

 
$
12,003,277

 
$
11,127,338

 
1.7
%
 
9.7
%
 
$
12,018,802

 
$
10,863,851

 
10.6
%
 
CRE
 
9,685,092

 
9,501,566

 
8,952,483

 
1.9

 
8.2

 
9,522,238

 
8,880,668

 
7.2

 
Multifamily residential
 
2,561,648

 
2,510,271

 
2,238,757

 
2.0

 
14.4

 
2,523,962

 
2,170,583

 
16.3

 
Construction and land
 
694,665

 
675,967

 
622,272

 
2.8

 
11.6

 
652,096

 
649,150

 
0.5

Consumer:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Single-family residential
 
6,636,227

 
6,373,715

 
5,495,824

 
4.1

 
20.8

 
6,388,939

 
5,126,073

 
24.6

 
HELOCs
 
1,557,358

 
1,607,311

 
1,741,890

 
(3.1
)
 
(10.6
)
 
1,605,279

 
1,769,253

 
(9.3
)
 
Other consumer
 
322,951

 
309,267

 
319,473

 
4.4

 
1.1

 
312,397

 
330,703

 
(5.5
)
 
Total loans (1)(2)
 
$
33,661,282

 
$
32,981,374

 
$
30,498,037

 
2.1
%
 
10.4
%
 
$
33,023,713

 
$
29,790,281

 
10.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets
 
$
40,919,386

 
$
39,461,101

 
$
36,822,293

 
3.7
%
 
11.1
%
 
$
39,716,462

 
$
36,039,382

 
10.2
%
Total assets
 
$
43,136,273

 
$
41,545,441

 
$
38,659,262

 
3.8
%
 
11.6
%
 
$
41,815,490

 
$
37,874,434

 
10.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 

 
 

 
 

 
 
 
 
 
 

 
 

 
 
 
Noninterest-bearing demand
 
$
10,712,612

 
$
10,237,868

 
$
10,639,554

 
4.6
%
 
0.7
 %
 
$
10,342,966

 
$
10,968,958

 
(5.7
)%
 
Interest-bearing checking
 
4,947,511

 
5,221,110

 
4,515,256

 
(5.2
)
 
9.6

 
5,145,308

 
4,487,314

 
14.7

 
Money market
 
8,344,993

 
7,856,055

 
7,613,030

 
6.2

 
9.6

 
8,094,933

 
7,919,845

 
2.2

 
Savings
 
2,154,592

 
2,106,626

 
2,194,792

 
2.3

 
(1.8
)
 
2,117,773

 
2,286,402

 
(7.4
)
 
Total core deposits
 
26,159,708

 
25,421,659

 
24,962,632

 
2.9

 
4.8

 
25,700,980

 
25,662,519

 
0.1

 
Time deposits
 
10,337,990

 
9,904,726

 
8,277,129

 
4.4

 
24.9

 
9,887,274

 
6,976,359

 
41.7

 
Total deposits
 
$
36,497,698

 
$
35,326,385

 
$
33,239,761

 
3.3
%
 
9.8
%
 
$
35,588,254

 
$
32,638,878

 
9.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities
 
$
26,773,253

 
$
25,860,541

 
$
23,190,465

 
3.5
%
 
15.4
%
 
$
26,033,713

 
$
22,233,394

 
17.1
%
Stockholders’ equity
 
$
4,838,281

 
$
4,684,348

 
$
4,197,675

 
3.3
%
 
15.3
%
 
$
4,687,746

 
$
4,061,977

 
15.4
%
 
(1)
Includes ASC 310-30 discount of $18.2 million, $19.9 million and $25.9 million for the three months ended September 30, 2019, June 30, 2019 and September 30, 2018, respectively, and $19.9 million and $29.9 million for the nine months ended September 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
 
 
 
September 30, 2019
 
June 30, 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
 
$
3,547,626

 
$
19,772

 
2.21
%
 
$
2,852,060

 
$
16,861

 
2.37
%
 
Resale agreements (2)
 
981,196

 
6,881

 
2.78
%
 
999,835

 
7,343

 
2.95
%
 
AFS investment securities
 
2,651,069

 
15,945

 
2.39
%
 
2,551,383

 
15,685

 
2.47
%
 
Loans (3)
 
33,661,282

 
433,658

 
5.11
%
 
32,981,374

 
434,450

 
5.28
%
 
FHLB and FRB stock
 
78,213

 
656

 
3.33
%
 
76,449

 
505

 
2.65
%
 
Total interest-earning assets
 
40,919,386

 
476,912

 
4.62
%
 
39,461,101

 
474,844

 
4.83
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-earning assets:
 
 

 
 

 
 

 
 

 
 

 
 

 
Cash and due from banks
 
441,898

 
 
 
 
 
439,449

 
 

 
 

 
Allowance for loan losses
 
(328,523
)
 
 
 
 
 
(321,335
)
 
 

 
 

 
Other assets
 
2,103,512

 
 
 
 
 
1,966,226

 
 

 
 

 
Total assets
 
$
43,136,273

 
 

 
 

 
$
41,545,441

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders’ Equity
 
 
 
 

 
 

 
 

 
 

 
 

Interest-bearing liabilities:
 
 

 
 

 
 

 
 

 
 

 
 

 
Checking deposits
 
$
4,947,511

 
$
14,488

 
1.16
%
 
$
5,221,110

 
$
15,836

 
1.22
%
 
Money market deposits
 
8,344,993

 
26,943

 
1.28
%
 
7,856,055

 
28,681

 
1.46
%
 
Savings deposits
 
2,154,592

 
2,656

 
0.49
%
 
2,106,626

 
2,477

 
0.47
%
 
Time deposits
 
10,337,990

 
52,733

 
2.02
%
 
9,904,726

 
50,970

 
2.06
%
 
Federal funds purchased and other short-term borrowings
 
40,433

 
382

 
3.75
%
 
35,575

 
361

 
4.07
%
 
FHLB advances
 
745,263

 
5,021

 
2.67
%
 
533,841

 
4,011

 
3.01
%
 
Repurchase agreements (2)
 
50,000

 
3,239

 
25.70
%
 
50,000

 
3,469

 
27.83
%
 
Long-term debt and finance lease liabilities
 
152,471

 
1,643