2017
EAST WEST BANCORP
ANNUAL REPORT
w
($ in millions, except per share data)
2013
2014
2015
2016
2017
SUMMARY OF OPERATIONS
Net interest income
Net income
Diluted earnings per share
Dividends per share
AT PERIOD END
Total assets
Total loans
Total deposits
Stockholders' equity
FINANCIAL RATIOS
Net interest margin
Return on assets
Return on equity
$
$
$
$
$
$
$
$
956
293
2.09
0.60
24,732
18,055
20,413
2,366
4.38%
1.24%
12.5%
$
$
$
$
$
$
$
$
1,041
346
2.41
0.72
28,744
21,776
24,009
2,856
4.03%
1.25%
12.7%
$
$
$
$
$
$
$
$
950
385
2.66
0.80
32,351
23,676
27,476
3,123
3.35%
1.27%
12.7%
$
$
$
$
$
$
$
$
1,033
432
2.97
0.80
34,789
25,526
29,891
3,428
3.30%
1.30%
13.1%
$
$
$
$
$
$
$
$
1,185
506
3.47
0.80
37,150
29,054
32,220
3,842
3.48%
1.41%
13.7%
December 31,
2012
2013
2014
2015
2016
2017
EWBC
KRX
S&P 500
$100
$166
$188
$205
$256
$311
$100
$147
$150
$159
$221
$225
$100
$132
$151
$153
$171
$208
DECEMBER 31,
2017
2016
($ in millions, except per share data)
YEAR ENDED DECEMBER 31,
2017
2016
($ in millions, except shares)
ASSETS
Cash and cash equivalents
Interest-bearing deposits with banks
Securities purchased under resale agreements ("resale agreements")
Investment securities
Loans held-for-sale
Loans held-for-investment (net of allowance for loan losses of $287 million in 2017 and $261 million in 2016)
Investments in qualified affordable housing partnerships, net
Investments in tax credit and other investments, net
Premises and equipment
Goodwill
Branch assets held-for-sale
Other assets
Total assets
LIABILITIES
Deposits:
Noninterest-bearing
Interest-bearing
Total deposits
Branch liability held-for-sale
Short-term borrowings
Federal Home Loan Bank ("FHLB") advances
Securities sold under repurchase agreements ("repurchase agreements")
Long-term debt
Accrued expenses and other liabilities
Total liabilities
STOCKHOLDERS' EQUITY
$
$
$
2,175
398
1,050
3,090
0.085
28,689
163
225
121
469
91
679
37,150
10,887
20,728
31,615
605
—
324
50
172
543
33,308
$
$
$
1,879
323
2,000
3,553
23
25,243
184
173
160
469
—
782
34,789
10,184
19,707
29,891
—
60
322
350
186
552
31,361
Common stock, $0.001 par value, 200,000,000 shares authorized; 165,214,770 and 164,604,072 shares issued
in 2017 and 2016, respectively)
Additional paid-in capital
Retained earnings
Treasury stock, at cost - 20,671,710 shares in 2017 and 20,436,621 shares in 2016
Accumulated other comprehensive loss, net of tax
Total stockholders' equity
0.165
0.164
1,755
2,576
(452)
(38)
3,842
1,727
2,188
(439)
(48)
3,428
Total liabilities and stockholders' equity
$
37,150
$
34,789
INTEREST AND DIVIDEND INCOME
Loans receivable, including fees
Investment securities
Resale agreements
Restricted equity securities
Interest-bearing cash and deposits with banks
Total interest and dividend income
INTEREST EXPENSE
Deposits
Federal funds purchased and other short-term borrowings
FHLB advances
Repurchase agreements
Long-term debt
Total interest expense
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES
Provision for credit losses
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
NONINTEREST INCOME
Branch fees
Letters of credit fees and foreign exchange income
Ancillary loan fees and other income
Wealth management fees
Derivative fees and other income
Net gains on sales of loans
Net gains on sales of available-for-sale investment securities
Net gains on sales of fixed assets
Net gain on sale of business
Other fees and operating income
Total noninterest income
NONINTEREST EXPENSE
Compensation and employee benefits
Occupancy and equipment expense
Deposit insurance premiums and regulatory assessments
Legal expense
Data processing
Consulting expense
Deposit related expense
Computer software expense
Other operating expense
Amortization of tax credit and other investments
Amortization of core deposit intangibles
Total noninterest expense
INCOME BEFORE INCOME TAXES
Income tax expense
NET INCOME
EARNINGS PER SHARE
Basic
Diluted
$
$
$
$
1,198
59
32
3
33
1,325
116
1
8
9
5
140
1,185
46
1,139
42
43
23
15
18
9
8
77
4
19
258
335
65
24
1 1
12
15
10
18
77
88
7
662
735
229
506
3.50
3.47
$
$
$
$
1,035
53
31
3
15
1,137
84
1
6
9
5
105
1,033
27
1,005
41
46
19
13
17
6
10
3
—
27
183
300
61
23
3
12
23
10
13
79
83
8
616
572
141
432
3.00
2.97
CORPORATE HEADQUARTERS
135 N. Los Robles Avenue
Pasadena, CA 91101
626.768.6000
www.eastwestbank.com