Exhibit 12.1
EAST WEST BANCORP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year Ending December 31, | ||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||
($ in thousands) | ||||||||||||||||||||
Including Interest on Deposits | ||||||||||||||||||||
Income before income taxes (1) | $ | 578,721 | $ | 447,023 | $ | 447,146 | $ | 441,288 | $ | 394,567 | ||||||||||
Fixed charges | 111,590 | 121,562 | 126,170 | 151,123 | 195,746 | |||||||||||||||
690,311 | 568,585 | 573,316 | 592,411 | 590,313 | ||||||||||||||||
Fixed charges: | ||||||||||||||||||||
Interest Expense | 103,376 | 112,820 | 112,492 | 132,168 | 177,422 | |||||||||||||||
Estimate of interest within rental expense | 8,214 | 8,742 | 8,731 | 8,594 | 7,605 | |||||||||||||||
Total fixed charges | 111,590 | 121,562 | 121,223 | 140,762 | 185,027 | |||||||||||||||
Preferred Dividends | — | — | 4,947 | 10,361 | 10,719 | |||||||||||||||
Total fixed charges and preferred dividends | 111,590 | 121,562 | 126,170 | 151,123 | 195,746 | |||||||||||||||
Ratio of Earnings to Fixed Charges | 6.19 | 4.68 | 4.73 | 4.21 | 3.19 | |||||||||||||||
Ratio of Earnings to Fixed Charges and Preferred Dividends | 6.19 | 4.68 | 4.54 | 3.92 | 3.02 | |||||||||||||||
Excluding interest on deposits | ||||||||||||||||||||
Income before income taxes (1) | $ | 578,721 | $ | 447,023 | $ | 447,146 | $ | 441,288 | $ | 394,567 | ||||||||||
Fixed charges | 38,085 | 56,076 | 62,674 | 75,228 | 88,636 | |||||||||||||||
616,806 | 503,099 | 509,820 | 516,516 | 483,203 | ||||||||||||||||
Fixed charges: | ||||||||||||||||||||
Interest Expense | 103,376 | 112,820 | 112,492 | 132,168 | 177,422 | |||||||||||||||
Less: Interest on deposits | 73,505 | 65,486 | 63,496 | 75,895 | 107,110 | |||||||||||||||
Estimate of interest within rental expense | 8,214 | 8,742 | 8,731 | 8,594 | 7,605 | |||||||||||||||
Total fixed charges | 38,085 | 56,076 | 57,727 | 64,867 | 77,917 | |||||||||||||||
Preferred Dividends | — | — | 4,947 | 10,361 | 10,719 | |||||||||||||||
Total fixed charges and preferred dividends | 38,085 | 56,076 | 62,674 | 75,228 | 88,636 | |||||||||||||||
Ratio of Earnings to Fixed Charges | 16.20 | 8.97 | 8.83 | 7.96 | 6.20 | |||||||||||||||
Ratio of Earnings to Fixed Charges and Preferred Dividends | 16.20 | 8.97 | 8.13 | 6.87 | 5.45 | |||||||||||||||
(1) | Prior periods were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company’s investments in qualified affordable housing projects ASU 2014-01. Please see Note 9 — Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net to the Consolidated Financial Statements for additional information. |