Exhibit 99.1
East West Bancorp, Inc.
135 N. Los Robles Ave., 7th Fl.
Pasadena, CA 91101
Tel. 626.768.6800
Fax 626.817.8838
FOR FURTHER INFORMATION AT THE COMPANY:
Irene Oh
Chief Financial Officer
(626) 768-6360
EAST WEST BANCORP REPORTS NET INCOME FOR SECOND QUARTER 2012 OF
$70.6 MILLION, UP 17% FROM PRIOR YEAR, AND EARNINGS PER SHARE OF
$0.47, UP 21% FROM PRIOR YEAR
Pasadena, CA – July 18, 2012 – East West Bancorp, Inc. (Nasdaq: EWBC), parent company of East West Bank, the financial bridge between the United States and Greater China, today reported financial results for the second quarter of 2012. For the second quarter of 2012, net income was $70.6 million or $0.47 per dilutive share. East West increased second quarter net income by $10.0 million or 17% and increased earnings per dilutive share $0.08 or 21% from the prior year period.
“Net income for East West for the second quarter of 2012 totaled $70.6 million or $0.47 per share, an increase in earnings per share of 21% compared to the prior year period,” stated Dominic Ng, Chairman and Chief Executive Officer of East West. “East West’s strong financial results for the second quarter are the result of our ability to drive growth and generate strong operating performance quarter after quarter. During the second quarter of 2012, we continued to focus on growing both noncovered loans and low-cost core deposits, and reducing credit costs. Since March 31, 2012, we grew our noncovered commercial and trade finance loans by $180.0 million or 6%, and increased core deposits by $476.9 million or 5% to $11.0 billion.”
Ng continued, “The increase in East West’s profitability is due to our success in growing key loan and deposit portfolios, combined with reduced credit costs and strong expense management. During the second quarter of 2012, the provision for loan losses decreased to $15.5 million and net charge-offs totaled $11.7 million, a decrease of 42% and 63%, respectively, from prior year. Nonperforming assets continued to decline, decreasing to $155.7 million or 0.72% of total assets as of June 30, 2012. Further, the efficiency ratio also improved during the second quarter, decreasing from 44% in the first quarter of 2012 to 42%.”
“East West continues to outperform peers and the industry, despite the challenging operating environment. We believe that our strong results quarter after quarter demonstrate that our
differentiating focus as the premier financial bridge between East and West, provides us with exceptional opportunities to win new customers and strengthen relationships with existing customers. We are pleased with our operating results for the second quarter of 2012 and are excited about future opportunities to grow our business, increase earnings and return strong value to our shareholders,” concluded Ng.
Quarterly Results Summary
|
| For the three months ended, |
| |||||||
Dollars in millions, except per share |
| June 30, 2012 |
| March 31, 2012 |
| June 30, 2011 |
| |||
Net income |
| $ | 70.56 |
| $ | 68.08 |
| $ | 60.53 |
|
Net income available to common shareholders |
| $ | 68.84 |
| $ | 66.37 |
| $ | 58.81 |
|
Earnings per share (diluted) |
| 0.47 |
| 0.45 |
| 0.39 |
| |||
|
|
|
|
|
|
|
| |||
Return on average assets |
| 1.32% |
| 1.26% |
| 1.12% |
| |||
Return on average common equity |
| 12.46% |
| 12.01% |
| 11.06% |
| |||
|
|
|
|
|
|
|
| |||
Net interest margin, adjusted (1) |
| 4.01% |
| 4.21% |
| 4.03% |
| |||
Cost of deposits |
| 0.45% |
| 0.47% |
| 0.70% |
| |||
Efficiency ratio |
| 41.54% |
| 44.07% |
| 43.95% |
|
Second Quarter 2012 Highlights
· Strong Second Quarter Earnings – For the second quarter of 2012, net income was $70.6 million or $0.47 per dilutive share. Net income grew 4% or $2.5 million from the first quarter of 2012 and 17% or $10.0 million from the second quarter of 2011. Earnings per dilutive share grew 4% or $0.02 from the first quarter of 2012 and 21% or $0.08 from the second quarter of 2011.
· Repurchase of 2.2 Million Shares of Common Stock – During the second quarter of 2012, we repurchased 2.2 million shares of our common stock at a weighted average price of $21.95 per share.
· Strong Loan Growth – Quarter to date, noncovered loans, excluding loans held for sale, grew $296.8 million or 3%. This growth was largely due to increases in commercial and trade finance loans, and single family loans, which grew $180.0 million or 6% and $64.8 million or 3%, respectively from March 31, 2012.
· Strong Core Deposit Growth – Core deposits increased $476.9 million or 5% to a record $11.0 billion or 64% of total deposits. Total deposits remained unchanged at $17.3 billion, as we continued our strategy to reduce reliance on higher cost time deposits.
· Cost of Funds Down 4 bps from Q1 2012 and Down 29 bps from Q2 2011 – The cost of funds improved 4 basis points from the first quarter of 2012 and 29 basis points from the second quarter of 2011 to 0.71% for the second quarter of 2012. Our cost of deposits improved 2 basis points from the first quarter of 2012 and 25 basis points from the second quarter of 2011 to 0.45% for the second quarter of 2012.
· Efficiency Ratio Improves to 41.54% – For the second quarter of 2012, the efficiency ratio improved to 41.54% from 44.07% in the first quarter of 2012 and 43.95% in the second quarter of 2011.
· Nonperforming Assets Down to 0.72% of Total Assets – Nonperforming assets decreased to $155.7 million, or 0.72% of total assets at June 30, 2012, an $11.5 million or 7% decrease from March 31, 2012 and a $25.5 million or 14% decrease from June 30, 2011.
Management Guidance
The Company is providing guidance for the third quarter and full year of 2012. Management currently estimates that fully diluted earnings per share for the full year of 2012 will range from $1.84 to $1.86, an increase of 15% to 16% from the full year of 2011. Also, this updated guidance for the full year of 2012 is an increase of approximately $0.05 per dilutive share from our previously released guidance.
Management currently estimates that fully diluted earnings per share for the third quarter of 2012 will range from $0.45 to $0.47 per dilutive share. This EPS guidance for the third quarter of 2012 is based on the following assumptions:
· Stable balance sheet
· A stable interest rate environment and an adjusted net interest margin of approximately 4.00%1
· Provision for loan losses of approximately $12 to $15 million for the quarter
· Total noninterest expense of approximately $100 million for the quarter, net of amounts to be reimbursed by the FDIC
· Effective tax rate of approximately 35%
Balance Sheet Summary
At June 30, 2012, total assets equaled $21.5 billion compared to $21.7 billion at March 31, 2012. Average earning assets decreased slightly during the second quarter of 2012, down $14.1 million compared to the prior quarter. The small decrease in total assets and average earning assets during the second quarter was primarily attributable to a decrease in investment securities of $833.0 million, due to sales, calls and maturities, offset by purchases. As of June 30, 2012, excess cash from these activities had not yet been reinvested, resulting in an increase in cash and cash equivalents of $793.8 million.
Total loans receivable at June 30, 2012 equaled $14.3 billion, compared to $14.5 billion as of March 31, 2012. During the second quarter noncovered loan balances excluding loans held for sale, grew $296.8 million or 3%. This growth was largely due to increases in commercial and trade finance loans, and single family loans, which grew $180.0 million or 6% and $64.8 million or 3%, respectively.
Covered Loans
Covered loans totaled $3.4 billion as of June 30, 2012, a decrease of $267.1 million or 7% from March 31, 2012. The decrease in the covered loan portfolio was primarily due to payoffs and paydown activity, as well as charge-offs.
The covered loan portfolio is comprised of loans acquired from the FDIC-assisted acquisitions of United Commercial Bank (UCB) and Washington First International Bank (WFIB) which are covered under loss share agreements with the FDIC. During the second quarter of 2012, we recorded a net decrease in the FDIC indemnification asset and receivable included in noninterest (loss)/income of ($40.3) million, largely due to continued improved credit performance of the UCB portfolio as compared to our original estimate.
Deposits and Borrowings
At June 30, 2012, total deposits equaled $17.3 billion, unchanged from March 31, 2012. In the second quarter of 2012, we continued to execute our strategy to grow low-cost, commercial deposits while reducing our reliance on higher cost time deposits. Core deposits increased to a record $11.0 billion at June 30, 2012, or an increase of $476.9 million or 5% from March 31, 2012. Time deposits decreased by $473.6 million or 7% from March 31, 2012 to $6.3 billion at June 30, 2012.
During the second quarter of 2012, the Company prepaid $30.0 million of FHLB advances carrying an effective interest rate of 2.43%, incurring a prepayment penalty of $2.3 million, which is included in noninterest expense.
Second Quarter 2012 Operating Results
Net Interest Income
Net interest income, adjusted for the net impact of covered loan dispositions, totaled $194.7 million for the second quarter of 2012, a decrease of $9.5 million from $204.2 million in the prior quarter. 1 The core net interest margin, excluding the net impact to interest income of $38.5 million resulting from covered loan activity and amortization of the FDIC indemnification asset, totaled 4.01% for the second quarter of 2012. This compares to a core net interest margin, excluding the net impact to interest income of $14.7 million resulting from covered loan activity and amortization of the FDIC indemnification asset, of 4.21% for the first quarter of 2012. 1
The decrease in the core net interest margin in the second quarter of 2012 compared to the first quarter of 2012 is primarily due to the larger impact of covered loan dispositions and amortization activity in the second quarter and the continued downward repricing of the investment securities and loan portfolios. The extended low interest rate environment continues to be a challenge for East West and the rest of the banking industry. East West continues to look for opportunities to minimize our cost of funds and maximize our asset yields, while also ensuring prudent interest rate risk management. In the second quarter of 2012, East West prepaid $30.0 million of FHLB advances at an average effective cost of 2.43%.
The cost of funds decreased 4 basis points from 0.75% in the first quarter of 2012 to 0.71% in the second quarter of 2012.
The reduction in the cost of funds and interest expense is primarily due to management’s ongoing actions to reduce high-cost time deposits and grow core deposits. During the second quarter, the Company reduced both the balance of time deposits by 7% and also the average cost of time deposits, which decreased from 0.88% in the first quarter of 2012 to 0.84% in the second quarter of 2012. In addition, the Company increased core deposit balances by 5%, quarter over quarter. These combined actions resulted in an overall reduction in the cost of deposits of 2 basis points to 0.45% for the second quarter of 2012 from 0.47% in the prior quarter.
Management expects to maintain a relatively stable net interest margin and expects the adjusted net interest margin to be approximately 4.00% for the third quarter of 2012.
Noninterest (Loss)/Income & Expense
The Company reported total noninterest (loss) for the second quarter of 2012 of ($11.7) million, a decrease from noninterest income of $21.7 million in the first quarter of 2012 and $12.5 million in the second quarter of 2011. The decrease in noninterest income from the prior quarter and prior year is primarily attributable to an increase in the net reduction of the FDIC indemnification asset and FDIC receivable.
Branch fees, letter of credit and foreign exchange income, ancillary loan fees and other operating income increased and totaled $22.2 million in the second quarter of 2012, as compared to $21.6 million in the first quarter of 2012 and $22.1 million in the second quarter of 2011. In addition, included in noninterest (loss) for the second quarter of 2012 were net gains on sales of loans of $6.4 million, and net gains on sales of investment securities of $71 thousand. A summary of fees and other income for the second quarter of 2012, compared to the first quarter of 2012 and second quarter of 2011, is detailed below:
|
|
|
| Quarter Ended |
|
|
| % Change |
| |||
($ in thousands) |
| June 30, 2012 |
| March 31, 2012 |
| June 30, 2011 |
| (Yr/Yr) |
| |||
|
|
|
|
|
|
|
|
|
| |||
Branch fees |
| $ | 8,641 |
| $ | 8,294 |
| $ | 9,078 |
| -5% |
|
Letters of credit fees and foreign exchange income |
| 5,101 |
| 6,071 |
| 6,216 |
| -18% |
| |||
Ancillary loan fees |
| 2,188 |
| 2,008 |
| 2,055 |
| 6% |
| |||
Other operating income |
| 6,277 |
| 5,186 |
| 4,771 |
| 32% |
| |||
Total fees & other operating income |
| $ | 22,207 |
| $ | 21,559 |
| $ | 22,120 |
| 0% |
|
Noninterest expense totaled $101.6 million for the second quarter of 2012, a decrease of $13.2 million from the first quarter of 2012 and $16.0 million from the second quarter of 2011.
Noninterest expense, excluding amounts to be reimbursed by the FDIC on covered assets and prepayment penalties for FHLB advances, totaled $96.6 million for the second quarter of 2012. 1 A summary of noninterest expense for the second quarter 2012, compared to the first quarter of 2012 and second quarter of 2011, is detailed below:
|
|
|
| Quarter Ended |
|
|
| |||
($ in thousands) |
| June 30, 2012 |
| March 31, 2012 |
| June 30, 2011 |
| |||
Total noninterest expense: |
| $ | 101,608 |
| $ | 114,763 |
| $ | 117,597 |
|
Amounts to be reimbursed by the FDIC on covered assets (80% of actual expense amount) |
| 2,683 |
| 12,122 |
| 13,574 |
| |||
Prepayment penalties for FHLB advances |
| 2,336 |
| 1,321 |
| 4,433 |
| |||
Noninterest expense excluding reimbursable amounts and prepayment penalties for FHLB advances |
| $ | 96,589 |
| $ | 101,320 |
| $ | 99,590 |
|
Total noninterest expense for the second quarter, excluding amounts to be reimbursed by the FDIC on covered assets and prepayment penalties for FHLB advances, decreased $4.7 million or 5% from the first quarter of 2012 to $96.6 million. The decrease in noninterest expense, excluding amounts to be reimbursed by the FDIC on covered assets and prepayment penalties for FHLB advances, was primarily due to a reduction in compensation and employee benefits. Compensation and employee benefits decreased $3.5 million or 8% from the first quarter of 2012 primarily due to a decrease in payroll taxes and an increase in the offset to compensation expense from deferred loan costs due to an increase in origination volume.
Credit cycle costs, which include other real estate owned expense, loan related expense, and legal expense decreased $9.7 million or 43% from the first quarter 2012, totaling $12.8 million for the second quarter, as compared to $22.5 million for the first quarter 2012 and $25.7 million for the second quarter of 2011. Of the total credit cycle costs incurred in the second quarter, $3.4 million is related to covered loans and other real estate owned for which we expect that 80% or $2.7 million is reimbursable by the FDIC.
Management anticipates that for the third quarter of 2012, noninterest expense will total approximately $100.0 million, net of amounts reimbursable from the FDIC.
The effective tax rate for the second quarter was 32.4% as compared to 36.8% in the prior quarter. The decrease in the effective tax rate for the second quarter of 2012 compared to the first quarter of 2012 was primarily due to a $3.0 million benefit from a settlement with the California Franchise Tax Board. The effective tax rate is reduced from the statutory tax rate primarily due to the utilization of tax credits related to affordable housing investments. The expected effective tax rate for the remainder of 2012 is approximately 35%.
Credit Quality
During the second quarter of 2012, the provision for loan losses and nonperforming assets were lower than the previous quarter and the prior year as a result of continued credit quality improvement. The provision for loan losses was $15.5 million for the second quarter of 2012, a decrease of 14% or $2.6 million from the prior quarter, and a decrease of 42% or $11.0 million as compared to the second quarter of 2011. Additionally, nonaccrual loans excluding covered loans, decreased to $112.4 million or 0.78% of total loans as of June 30, 2012.
Gross charge-offs totaled $14.8 million and recoveries totaled $3.1 million for the second quarter of 2012. Total net charge-offs increased slightly to $11.7 million for the second quarter of 2012, from $10.3 million in the first quarter of 2012 due to the high level of recoveries during the first quarter of 2012. East West continues to maintain a strong allowance for noncovered loan losses at $219.5 million or 2.03% of noncovered loans receivable at June 30, 2012.
This compares to an allowance for noncovered loan losses of $214.3 million or 2.04% of noncovered loans at March 31, 2012 and $213.8 million or 2.29% of noncovered loans at June 30, 2011.
The total nonperforming assets, excluding covered assets, to total assets ratio was under 1.00% for the eleventh consecutive quarter with nonperforming assets of $155.7 million or 0.72% of total assets at June 30, 2012.
Capital Strength
(Dollars in millions)
|
| June 30, 2012 |
| Well Capitalized |
| Total Excess Above |
| |
|
|
|
|
|
|
|
| |
Tier 1 leverage capital ratio |
| 9.7% |
| 5.00% |
| $ | 988 |
|
Tier 1 risk-based capital ratio |
| 15.7% |
| 6.00% |
| 1,264 |
| |
Total risk-based capital ratio |
| 17.3% |
| 10.00% |
| 952 |
| |
Tangible common equity to tangible assets ratio |
| 8.6% |
| N/A |
| N/A |
| |
Tangible common equity to risk weighted assets ratio |
| 13.9% |
| N/A |
| N/A |
| |
Our capital ratios remain very strong. As of June 30, 2012, our Tier 1 leverage capital ratio totaled 9.7%, our Tier 1 risk-based capital ratio totaled 15.7% and our total risk-based capital ratio totaled 17.3%. East West exceeds well capitalized requirements for all regulatory guidelines by more than $900 million. The Company is focused on active capital management and is committed to maintaining strong capital levels that exceed regulatory requirements while also supporting balance sheet growth and providing a strong return to our shareholders. During the second quarter of 2012, the Company repurchased 2.2 million shares of common stock at an average price of $21.95 per share, or $49.0 million in total cost. Under the repurchase program authorized by East West’s Board of Directors earlier in the year, management has the authority to repurchase up to a total of $200.0 million of the Company’s common stock. As of June 30, 2012, the Company had repurchased a total of 6.8 million shares of common stock under the repurchase program at a total cost of $149.9 million.
Dividend Payout
East West’s Board of Directors has declared third quarter dividends on the common stock and Series A Preferred Stock. The common stock cash dividend of $0.10 is payable on or about August 24, 2012 to shareholders of record on August 10, 2012. The dividend on the Series A Preferred Stock of $20.00 per share is payable on August 1, 2012 to shareholders of record on July 15, 2012.
Conference Call
East West will host a conference call to discuss second quarter 2012 earnings with the public on Thursday, July 19, 2012 at 8:30 a.m. PDT/ 11:30 a.m. EDT. The public and investment community are invited to listen as management discusses second quarter results and operating developments. The following dial-in information is provided for participation in the conference call: Call within the US – (877) 317-6789; Call within Canada – (866) 605-3852; International call – (412) 317-6789.
A listen-only live broadcast of the call also will be available on the investor relations page of the Company’s website at www.eastwestbank.com.
About East West
East West Bancorp is a publicly owned company with $21.5 billion in assets 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 125 locations worldwide, including in the United States markets of California, New York, Georgia, Massachusetts, Texas and Washington. In Greater China, East West’s presence includes a full service branch in Hong Kong and representative offices in Beijing, Shenzhen and Taipei. Through a wholly-owned subsidiary bank, East West’s presence in Greater China also includes full service branches in Shanghai and Shantou and a representative office in Guangzhou. For more information on East West Bancorp, visit the Company’s website at www.eastwestbank.com.
Forward-Looking Statements
Certain matters set forth herein (including any exhibits hereto) constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results. 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 include, but are not limited to, local, regional, national and international economic, political or industry conditions and events and the impact they may have on us and our customers; our ability to attract deposits and other sources of liquidity; continued deterioration in values of real estate in California and other states where our bank makes loans, both residential and commercial; our ability to manage the loan portfolios acquired from FDIC-assisted acquisitions within the limits of the loss protection provided by the FDIC; changes in the financial performance and/or condition of our borrowers; changes in the level of nonperforming assets, reserve requirements, and charge-offs; the effect of changes in laws, regulations, and accounting standards, and related costs of these changes; inflation, interest rate, securities market and monetary fluctuations; changes in the competitive environment among financial and bank holding companies and other financial service providers; changes in our organization, management; the adequacy of our enterprise risk management framework; the ability to manage our growth and the effect of acquisitions we may make and the integration of acquired businesses and branching efforts; our success at managing the risks involved in the foregoing items and other factors set forth in the Company’s public reports including its Annual Report on Form 10-K for the year ended December 31, 2011, and particularly the discussion of risk factors within that document.
1 See reconciliation of the GAAP financial measure to the non-GAAP financial measure in the tables attached.
EAST WEST BANCORP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(unaudited)
|
|
| June 30, 2012 |
|
|
| March 31, 2012 |
|
|
| June 30, 2011 |
| |||
Assets |
|
|
|
|
|
|
|
|
|
|
|
| |||
Cash and cash equivalents |
|
| $ | 2,459,614 |
|
|
| $ | 1,665,854 |
|
|
| $ | 1,598,498 |
|
Short-term investments |
|
| 254,714 |
|
|
| 177,576 |
|
|
| 85,479 |
| |||
Securities purchased under resale agreements |
|
| 675,000 |
|
|
| 650,000 |
|
|
| 812,281 |
| |||
Investment securities |
|
| 1,873,739 |
|
|
| 2,706,720 |
|
|
| 3,206,108 |
| |||
Loans receivable, excluding covered loans (net of allowance for loan losses of $219,454, $214,253 and $213,825) |
|
| 10,693,466 |
|
|
| 10,545,656 |
|
|
| 9,428,015 |
| |||
Covered loans, net |
|
| 3,416,613 |
|
|
| 3,683,698 |
|
|
| 4,356,595 |
| |||
Total loans receivable, net |
|
| 14,110,079 |
|
|
| 14,229,354 |
|
|
| 13,784,610 |
| |||
Federal Home Loan Bank and Federal Reserve Bank stock |
|
| 171,971 |
|
|
| 178,144 |
|
|
| 197,187 |
| |||
FDIC indemnification asset |
|
| 409,287 |
|
|
| 457,265 |
|
|
| 637,535 |
| |||
Other real estate owned, net |
|
| 43,222 |
|
|
| 46,343 |
|
|
| 16,464 |
| |||
Other real estate owned covered, net |
|
| 35,577 |
|
|
| 55,586 |
|
|
| 123,050 |
| |||
Premiums on deposits acquired, net |
|
| 61,480 |
|
|
| 64,317 |
|
|
| 73,182 |
| |||
Goodwill |
|
| 337,438 |
|
|
| 337,438 |
|
|
| 337,438 |
| |||
Other assets |
|
| 1,093,613 |
|
|
| 1,181,185 |
|
|
| 1,000,876 |
| |||
Total assets |
|
| $ | 21,525,734 |
|
|
| $ | 21,749,782 |
|
|
| $ | 21,872,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
| |||
Deposits |
|
| $ | 17,341,872 |
|
|
| $ | 17,338,569 |
|
|
| $ | 17,135,753 |
|
Federal Home Loan Bank advances |
|
| 362,885 |
|
|
| 394,719 |
|
|
| 532,951 |
| |||
Securities sold under repurchase agreements |
|
| 995,000 |
|
|
| 995,000 |
|
|
| 1,052,615 |
| |||
Long-term debt |
|
| 212,178 |
|
|
| 212,178 |
|
|
| 225,261 |
| |||
Other borrowings |
|
| - |
|
|
| - |
|
|
| 29,924 |
| |||
Accrued expenses and other liabilities |
|
| 318,859 |
|
|
| 526,019 |
|
|
| 666,872 |
| |||
Total liabilities |
|
| 19,230,794 |
|
|
| 19,466,485 |
|
|
| 19,643,376 |
| |||
Stockholders’ equity |
|
| 2,294,940 |
|
|
| 2,283,297 |
|
|
| 2,229,332 |
| |||
Total liabilities and stockholders’ equity |
|
| $ | 21,525,734 |
|
|
| $ | 21,749,782 |
|
|
| $ | 21,872,708 |
|
Book value per common share |
|
| $ | 15.51 |
|
|
| $ | 15.19 |
|
|
| $ | 14.43 |
|
Number of common shares at period end |
|
| 142,646 |
|
|
| 144,871 |
|
|
| 148,751 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ending Balances |
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
| June 30, 2012 |
|
|
| March 31, 2012 |
|
|
| June 30, 2011 |
| |||
Loans receivable |
|
|
|
|
|
|
|
|
|
|
|
| |||
Real estate - single family |
|
| $ | 2,017,877 |
|
|
| $ | 1,953,123 |
|
|
| $ | 1,286,235 |
|
Real estate - multifamily |
|
| 912,941 |
|
|
| 916,753 |
|
|
| 950,981 |
| |||
Real estate - commercial |
|
| 3,444,957 |
|
|
| 3,454,641 |
|
|
| 3,408,560 |
| |||
Real estate - land and construction |
|
| 299,740 |
|
|
| 322,233 |
|
|
| 420,069 |
| |||
Commercial |
|
| 3,418,636 |
|
|
| 3,238,605 |
|
|
| 2,684,472 |
| |||
Consumer |
|
| 700,719 |
|
|
| 612,758 |
|
|
| 588,940 |
| |||
Total noncovered loans receivable, excluding loans held for sale |
|
| 10,794,870 |
|
|
| 10,498,113 |
|
|
| 9,339,257 |
| |||
Loans held for sale |
|
| 137,812 |
|
|
| 280,830 |
|
|
| 326,841 |
| |||
Covered loans, net |
|
| 3,416,613 |
|
|
| 3,683,698 |
|
|
| 4,356,595 |
| |||
Total loans receivable |
|
| 14,349,295 |
|
|
| 14,462,641 |
|
|
| 14,022,693 |
| |||
Unearned fees, premiums and discounts |
|
| (19,762 | ) |
|
| (19,034 | ) |
|
| (24,258 | ) | |||
Allowance for loan losses on noncovered loans |
|
| (219,454 | ) |
|
| (214,253 | ) |
|
| (213,825 | ) | |||
Net loans receivable |
|
| $ | 14,110,079 |
|
|
| $ | 14,229,354 |
|
|
| $ | 13,784,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Deposits |
|
|
|
|
|
|
|
|
|
|
|
| |||
Noninterest-bearing demand |
|
| $ | 3,828,116 |
|
|
| $ | 3,690,131 |
|
|
| $ | 3,151,660 |
|
Interest-bearing checking |
|
| 1,044,439 |
|
|
| 967,772 |
|
|
| 792,330 |
| |||
Money market |
|
| 4,913,524 |
|
|
| 4,668,156 |
|
|
| 4,311,583 |
| |||
Savings |
|
| 1,254,072 |
|
|
| 1,237,190 |
|
|
| 1,099,065 |
| |||
Total core deposits |
|
| 11,040,151 |
|
|
| 10,563,249 |
|
|
| 9,354,638 |
| |||
Time deposits |
|
| 6,301,721 |
|
|
| 6,775,320 |
|
|
| 7,781,115 |
| |||
Total deposits |
|
| $ | 17,341,872 |
|
|
| $ | 17,338,569 |
|
|
| $ | 17,135,753 |
|
EAST WEST BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(unaudited)
|
|
|
|
|
|
| Quarter Ended |
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
| June 30, 2012 |
|
|
| March 31, 2012 |
|
|
| June 30, 2011 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Interest and dividend income |
|
| $ | 266,362 |
|
|
| $ | 254,050 |
|
|
| $ | 274,468 |
|
Interest expense |
|
| (33,205 | ) |
|
| (35,132 | ) |
|
| (47,132 | ) | |||
Net interest income before provision for loan losses |
|
| 233,157 |
|
|
| 218,918 |
|
|
| 227,336 |
| |||
Provision for loan losses |
|
| (15,500 | ) |
|
| (18,100 | ) |
|
| (26,500 | ) | |||
Net interest income after provision for loan losses |
|
| 217,657 |
|
|
| 200,818 |
|
|
| 200,836 |
| |||
Noninterest (loss) income |
|
| (11,655 | ) |
|
| 21,740 |
|
|
| 12,491 |
| |||
Noninterest expense |
|
| (101,608 | ) |
|
| (114,763 | ) |
|
| (117,597 | ) | |||
Income before provision for income taxes |
|
| 104,394 |
|
|
| 107,795 |
|
|
| 95,730 |
| |||
Provision for income taxes |
|
| 33,837 |
|
|
| 39,712 |
|
|
| 35,205 |
| |||
Net income |
|
| 70,557 |
|
|
| 68,083 |
|
|
| 60,525 |
| |||
Preferred stock dividend |
|
| (1,714 | ) |
|
| (1,714 | ) |
|
| (1,714 | ) | |||
Net income available to common stockholders |
|
| $ | 68,843 |
|
|
| $ | 66,369 |
|
|
| $ | 58,811 |
|
Net income per share, basic |
|
| $ | 0.48 |
|
|
| $ | 0.46 |
|
|
| $ | 0.40 |
|
Net income per share, diluted |
|
| $ | 0.47 |
|
|
| $ | 0.45 |
|
|
| $ | 0.39 |
|
Shares used to compute per share net income: |
|
|
|
|
|
|
|
|
|
|
|
| |||
- Basic |
|
| 142,107 |
|
|
| 145,347 |
|
|
| 147,011 |
| |||
- Diluted |
|
| 147,786 |
|
|
| 151,996 |
|
|
| 153,347 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
| Quarter Ended |
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
| June 30, 2012 |
|
|
| March 31, 2012 |
|
|
| June 30, 2011 |
| |||
Noninterest (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
| |||
Branch fees |
|
| $ | 8,641 |
|
|
| $ | 8,294 |
|
|
| $ | 9,078 |
|
Decrease in FDIC indemnification asset and FDIC receivable |
|
| (40,345 | ) |
|
| (5,418 | ) |
|
| (18,806 | ) | |||
Net gain on sales of loans |
|
| 6,375 |
|
|
| 5,179 |
|
|
| 5,891 |
| |||
Letters of credit fees and foreign exchange income |
|
| 5,101 |
|
|
| 6,071 |
|
|
| 6,216 |
| |||
Net gain on sales of investment securities |
|
| 71 |
|
|
| 483 |
|
|
| 1,117 |
| |||
Net gain on sale of fixed assets |
|
| 37 |
|
|
| 36 |
|
|
| 2,169 |
| |||
Impairment loss on investment securities |
|
| - |
|
|
| (99 | ) |
|
| - |
| |||
Ancillary loan fees |
|
| 2,188 |
|
|
| 2,008 |
|
|
| 2,055 |
| |||
Other operating income |
|
| 6,277 |
|
|
| 5,186 |
|
|
| 4,771 |
| |||
Total noninterest (loss) income: |
|
| $ | (11,655 | ) |
|
| $ | 21,740 |
|
|
| $ | 12,491 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
| |||
Compensation and employee benefits |
|
| $ | 42,863 |
|
|
| $ | 46,409 |
|
|
| $ | 40,870 |
|
Occupancy and equipment expense |
|
| 13,057 |
|
|
| 13,518 |
|
|
| 12,175 |
| |||
Loan related expenses |
|
| 4,175 |
|
|
| 4,481 |
|
|
| 4,284 |
| |||
Other real estate owned expense |
|
| 4,486 |
|
|
| 10,865 |
|
|
| 14,585 |
| |||
Deposit insurance premiums and regulatory assessments |
|
| 3,323 |
|
|
| 3,992 |
|
|
| 6,833 |
| |||
Prepayment penalties for FHLB advances |
|
| 2,336 |
|
|
| 1,321 |
|
|
| 4,433 |
| |||
Legal expense |
|
| 4,150 |
|
|
| 7,173 |
|
|
| 6,791 |
| |||
Amortization of premiums on deposits acquired |
|
| 2,838 |
|
|
| 2,873 |
|
|
| 3,151 |
| |||
Data processing |
|
| 2,197 |
|
|
| 2,464 |
|
|
| 2,100 |
| |||
Consulting expense |
|
| 1,568 |
|
|
| 1,467 |
|
|
| 2,378 |
| |||
Amortization of investments in affordable housing partnerships |
|
| 4,425 |
|
|
| 4,466 |
|
|
| 4,598 |
| |||
Other operating expense |
|
| 16,190 |
|
|
| 15,734 |
|
|
| 15,399 |
| |||
Total noninterest expense |
|
| $ | 101,608 |
|
|
| $ | 114,763 |
|
|
| $ | 117,597 |
|
EAST WEST BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(unaudited)
|
|
|
|
|
|
|
|
|
|
| Year To Date |
| |||||
|
|
|
|
|
|
| ||
|
| June 30, 2012 |
| June 30, 2011 | ||||
|
|
|
|
|
|
|
|
|
Interest and dividend income |
| $ | 520,412 |
|
| $ | 528,803 |
|
Interest expense |
| (68,337 | ) |
| (92,633 | ) | ||
Net interest income before provision for loan losses |
| 452,075 |
|
| 436,170 |
| ||
Provision for loan losses |
| (33,600 | ) |
| (53,006 | ) | ||
Net interest income after provision for loan losses |
| 418,475 |
|
| 383,164 |
| ||
Noninterest income |
| 10,085 |
|
| 23,532 |
| ||
Noninterest expense |
| (216,371 | ) |
| (224,386 | ) | ||
Income before provision for income taxes |
| 212,189 |
|
| 182,310 |
| ||
Provision for income taxes |
| 73,549 |
|
| 65,714 |
| ||
Net income |
| 138,640 |
|
| 116,596 |
| ||
Preferred stock dividend |
| (3,428 | ) |
| (3,429 | ) | ||
Net income available to common stockholders |
| $ | 135,212 |
|
| $ | 113,167 |
|
Net income per share, basic |
| $ | 0.93 |
|
| $ | 0.77 |
|
Net income per share, diluted |
| $ | 0.92 |
|
| $ | 0.76 |
|
Shares used to compute per share net income: |
|
|
|
|
|
| ||
- Basic |
| 143,727 |
|
| 146,937 |
| ||
- Diluted |
| 149,414 |
|
| 153,349 |
|
|
| Year To Date |
| |||||
|
|
|
|
|
|
| ||
|
| June 30, 2012 |
|
| June 30, 2011 |
| ||
Noninterest income: |
|
|
|
|
|
| ||
Branch fees |
| $ | 16,935 |
|
| $ | 16,832 |
|
Decrease in FDIC indemnification asset and FDIC receivable |
| (45,763 | ) |
| (36,249 | ) | ||
Net gain on sales of loans |
| 11,554 |
|
| 13,301 |
| ||
Letters of credit fees and foreign exchange income |
| 11,172 |
|
| 11,186 |
| ||
Net gain on sales of investment securities |
| 554 |
|
| 3,632 |
| ||
Net gain on sale of fixed assets |
| 73 |
|
| 2,206 |
| ||
Impairment loss on investment securities |
| (99 | ) |
| (464 | ) | ||
Ancillary loan fees |
| 4,196 |
|
| 4,046 |
| ||
Other operating income |
| 11,463 |
|
| 9,042 |
| ||
Total noninterest income |
| $ | 10,085 |
|
| $ | 23,532 |
|
|
|
|
|
|
|
| ||
Noninterest expense: |
|
|
|
|
|
| ||
Compensation and employee benefits |
| $ | 89,272 |
|
| $ | 79,140 |
|
Occupancy and equipment expense |
| 26,575 |
|
| 24,773 |
| ||
Loan related expenses |
| 8,656 |
|
| 7,383 |
| ||
Other real estate owned expense |
| 15,351 |
|
| 25,249 |
| ||
Deposit insurance premiums and regulatory assessments |
| 7,315 |
|
| 14,024 |
| ||
Prepayment penalties for FHLB advances |
| 3,657 |
|
| 8,455 |
| ||
Legal expense |
| 11,323 |
|
| 10,892 |
| ||
Amortization of premiums on deposits acquired |
| 5,711 |
|
| 6,336 |
| ||
Data processing |
| 4,661 |
|
| 4,703 |
| ||
Consulting expense |
| 3,035 |
|
| 4,004 |
| ||
Amortization of investments in affordable housing partnerships |
| 8,891 |
|
| 9,123 |
| ||
Other operating expense |
| 31,924 |
|
| 30,304 |
| ||
Total noninterest expense |
| $ | 216,371 |
|
| $ | 224,386 |
|
EAST WEST BANCORP, INC.
SELECTED FINANCIAL INFORMATION
(In thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Average Balances |
| Quarter Ended |
| |||||||
|
|
|
| |||||||
|
| June 30, 2012 |
| March 31, 2012 |
| June 30, 2011 |
| |||
Loans receivable |
|
|
|
|
|
|
| |||
Real estate - single family |
| $ | 1,991,863 |
| $ | 1,878,028 |
| $ | 1,231,774 |
|
Real estate - multifamily |
| 914,223 |
| 931,252 |
| 950,687 |
| |||
Real estate - commercial |
| 3,458,288 |
| 3,482,459 |
| 3,393,361 |
| |||
Real estate - land and construction |
| 313,992 |
| 349,953 |
| 457,337 |
| |||
Commercial |
| 3,278,965 |
| 3,180,433 |
| 2,450,510 |
| |||
Consumer |
| 785,341 |
| 858,087 |
| 935,081 |
| |||
Total loans receivable, excluding covered loans |
| 10,742,672 |
| 10,680,212 |
| 9,418,750 |
| |||
Covered loans |
| 3,572,300 |
| 3,853,488 |
| 4,487,610 |
| |||
Total loans receivable |
| 14,314,972 |
| 14,533,700 |
| 13,906,360 |
| |||
Investment securities |
| 2,487,725 |
| 2,962,521 |
| 3,220,795 |
| |||
Earning assets |
| 19,508,910 |
| 19,523,046 |
| 19,402,968 |
| |||
Total assets |
| 21,527,394 |
| 21,690,453 |
| 21,574,103 |
| |||
|
|
|
|
|
|
|
| |||
Deposits |
|
|
|
|
|
|
| |||
Noninterest-bearing demand |
| $ | 3,724,399 |
| $ | 3,546,201 |
| $ | 2,935,704 |
|
Interest-bearing checking |
| 978,085 |
| 962,967 |
| 793,349 |
| |||
Money market |
| 4,831,665 |
| 4,665,731 |
| 4,374,404 |
| |||
Savings |
| 1,232,663 |
| 1,183,325 |
| 1,034,486 |
| |||
Total core deposits |
| 10,766,812 |
| 10,358,224 |
| 9,137,943 |
| |||
Time deposits |
| 6,474,566 |
| 6,845,350 |
| 7,653,112 |
| |||
Total deposits |
| 17,241,378 |
| 17,203,574 |
| 16,791,055 |
| |||
Interest-bearing liabilities |
| 15,118,148 |
| 15,317,075 |
| 15,913,856 |
| |||
Stockholders’ equity |
| 2,305,942 |
| 2,305,716 |
| 2,210,603 |
|
Selected Ratios |
| Quarter Ended |
| ||||
|
|
|
|
|
|
|
|
|
| June 30, 2012 |
| March 31, 2012 |
| June 30, 2011 |
|
For The Period |
|
|
|
|
|
|
|
Return on average assets |
| 1.32% |
| 1.26% |
| 1.12% |
|
Return on average common equity |
| 12.46% |
| 12.01% |
| 11.06% |
|
Interest rate spread |
| 4.61% |
| 4.31% |
| 4.48% |
|
Net interest margin |
| 4.81% |
| 4.51% |
| 4.70% |
|
Yield on earning assets |
| 5.49% |
| 5.23% |
| 5.67% |
|
Cost of deposits |
| 0.45% |
| 0.47% |
| 0.70% |
|
Cost of funds |
| 0.71% |
| 0.75% |
| 1.00% |
|
Noninterest expense/average assets (1) |
| 1.72% |
| 1.97% |
| 1.95% |
|
Efficiency ratio (2) |
| 41.54% |
| 44.07% |
| 43.95% |
|
(1) Excludes the amortization of intangibles, amortization of premiums on deposits acquired, amortization of investments in affordable housing partnerships and prepayment penalties for FHLB advances.
(2) Represents noninterest expense, excluding the amortization of intangibles, amortization of premiums on deposits acquired, amortization of investments in affordable housing partnerships and prepayment penalties for FHLB advances, divided by the aggregate of net interest income before provision for loan losses and noninterest income, excluding items that are non-recurring in nature.
EAST WEST BANCORP, INC.
SELECTED FINANCIAL INFORMATION
(In thousands)
(unaudited)
Average Balances |
| Year To Date |
| ||||
|
|
|
| ||||
|
| June 30, 2012 |
| June 30, 2011 |
| ||
Loans receivable |
|
|
|
|
| ||
Real estate - single family |
| $ | 1,934,946 |
| $ | 1,196,749 |
|
Real estate - multifamily |
| 922,737 |
| 956,198 |
| ||
Real estate - commercial |
| 3,470,374 |
| 3,386,315 |
| ||
Real estate - land and construction |
| 331,972 |
| 482,812 |
| ||
Commercial |
| 3,229,699 |
| 2,254,733 |
| ||
Consumer |
| 821,714 |
| 994,975 |
| ||
Total loans receivable, excluding covered loans |
| 10,711,442 |
| 9,271,782 |
| ||
Covered loans |
| 3,712,894 |
| 4,591,211 |
| ||
Total loans receivable |
| 14,424,336 |
| 13,862,993 |
| ||
Investment securities |
| 2,725,123 |
| 3,020,860 |
| ||
Earning assets |
| 19,515,978 |
| 19,067,921 |
| ||
Total assets |
| 21,608,923 |
| 21,232,913 |
| ||
|
|
|
|
|
| ||
Deposits |
|
|
|
|
| ||
Noninterest-bearing demand |
| $ | 3,635,300 |
| $ | 2,828,933 |
|
Interest-bearing checking |
| 970,526 |
| 782,547 |
| ||
Money market |
| 4,748,698 |
| 4,374,322 |
| ||
Savings |
| 1,207,994 |
| 1,003,074 |
| ||
Total core deposits |
| 10,562,518 |
| 8,988,876 |
| ||
Time deposits |
| 6,659,958 |
| 7,397,717 |
| ||
Total deposits |
| 17,222,476 |
| 16,386,593 |
| ||
Interest-bearing liabilities |
| 15,217,611 |
| 15,756,652 |
| ||
Stockholders’ equity |
| 2,305,829 |
| 2,178,624 |
|
Selected Ratios |
| Year To Date | ||
|
|
| ||
|
| June 30, 2012 |
| June 30, 2011 |
For The Period |
|
|
|
|
Return on average assets |
| 1.29% |
| 1.10% |
Return on average common equity |
| 12.23% |
| 10.80% |
Interest rate spread |
| 4.46% |
| 4.40% |
Net interest margin |
| 4.66% |
| 4.61% |
Yield on earning assets |
| 5.36% |
| 5.59% |
Cost of deposits |
| 0.46% |
| 0.68% |
Cost of funds |
| 0.73% |
| 1.01% |
Noninterest expense/average assets (1) |
| 1.84% |
| 1.89% |
Efficiency ratio (2) |
| 42.86% |
| 43.57% |
(1) | Excludes the amortization of intangibles, amortization of premiums on deposits acquired, amortization of investments in affordable housing partnerships and prepayment penalties for FHLB advances. |
|
|
(2) | Represents noninterest expense, excluding the amortization of intangibles, amortization of premiums on deposits acquired, amortization of investments in affordable housing partnerships and prepayment penalties for FHLB advances, divided by the aggregate of net interest income before provision for loan losses and noninterest income, excluding items that are non-recurring in nature. |
EAST WEST BANCORP, INC.
QUARTER TO DATE AVERAGE BALANCES, YIELDS AND RATES PAID
(In thousands)
(unaudited)
|
| Quarter Ended |
| ||||||||||||||
|
| June 30, 2012 |
| June 30, 2011 |
| ||||||||||||
|
| Average |
|
|
|
|
| Average |
|
|
|
|
| ||||
|
| Volume |
| Interest |
| Yield (1) |
| Volume |
| Interest |
| Yield (1) |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Due from banks and short-term investments |
| $ | 1,504,325 |
| $ | 5,774 |
| 1.54% |
| $ | 1,006,402 |
| $ | 4,500 |
| 1.79 | % |
Securities purchased under resale agreements |
| 1,026,923 |
| 4,758 |
| 1.86% |
| 1,068,975 |
| 5,109 |
| 1.92 | % | ||||
Investment securities available-for-sale |
| 2,487,725 |
| 16,913 |
| 2.73% |
| 3,220,795 |
| 23,253 |
| 2.90 | % | ||||
Loans receivable |
| 10,742,672 |
| 125,526 |
| 4.70% |
| 9,418,750 |
| 119,739 |
| 5.10 | % | ||||
Loans receivable - covered |
| 3,572,300 |
| 112,510 |
| 12.67% |
| 4,487,610 |
| 121,034 |
| 10.82 | % | ||||
Federal Home Loan Bank and Federal Reserve Bank stock |
| 174,965 |
| 881 |
| 2.02% |
| 200,437 |
| 833 |
| 1.67 | % | ||||
Total interest-earning assets |
| 19,508,910 |
| 266,362 |
| 5.49% |
| 19,402,969 |
| 274,468 |
| 5.67 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Cash and cash equivalents |
| 234,918 |
|
|
|
|
| 270,259 |
|
|
|
|
| ||||
Allowance for loan losses |
| (226,112 | ) |
|
|
|
| (228,587 | ) |
|
|
|
| ||||
Other assets |
| 2,009,678 |
|
|
|
|
| 2,129,462 |
|
|
|
|
| ||||
Total assets |
| $ | 21,527,394 |
|
|
|
|
| $ | 21,574,103 |
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Checking accounts |
| 978,085 |
| 725 |
| 0.30% |
| 793,349 |
| 699 |
| 0.35 | % | ||||
Money market accounts |
| 4,831,665 |
| 4,243 |
| 0.35% |
| 4,374,404 |
| 5,848 |
| 0.54 | % | ||||
Savings deposits |
| 1,232,663 |
| 647 |
| 0.21% |
| 1,034,486 |
| 933 |
| 0.36 | % | ||||
Time deposits |
| 6,474,566 |
| 13,562 |
| 0.84% |
| 7,653,112 |
| 21,650 |
| 1.13 | % | ||||
Federal funds purchased |
| 9 |
| - |
| - |
| - |
| - |
| - |
| ||||
Federal Home Loan Bank advances |
| 393,982 |
| 1,353 |
| 1.38% |
| 738,094 |
| 3,956 |
| 2.15 | % | ||||
Securities sold under repurchase agreements |
| 995,000 |
| 11,591 |
| 4.69% |
| 1,064,096 |
| 12,116 |
| 4.57 | % | ||||
Long-term debt |
| 212,178 |
| 1,084 |
| 2.05% |
| 235,343 |
| 1,787 |
| 3.05 | % | ||||
Other borrowings |
| - |
| - |
| - |
| 20,972 |
| 143 |
| 2.73 | % | ||||
Total interest-bearing liabilities |
| 15,118,148 |
| 33,205 |
| 0.88% |
| 15,913,856 |
| 47,132 |
| 1.19 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Demand deposits |
| 3,724,399 |
|
|
|
|
| 2,935,704 |
|
|
|
|
| ||||
Other liabilities |
| 378,905 |
|
|
|
|
| 513,940 |
|
|
|
|
| ||||
Stockholders’ equity |
| 2,305,942 |
|
|
|
|
| 2,210,603 |
|
|
|
|
| ||||
Total liabilities and stockholders’ equity |
| $ | 21,527,394 |
|
|
|
|
| $ | 21,574,103 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest rate spread |
|
|
|
|
| 4.61% |
|
|
|
|
| 4.48 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net interest income and net interest margin |
|
|
| $ | 233,157 |
| 4.81% |
|
|
| $ | 227,336 |
| 4.70 | % | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net interest income and net interest margin, adjusted (2) |
|
|
| $ | 194,653 |
| 4.01% |
|
|
| $ | 194,955 |
| 4.03 | % | ||
(1) | Annualized. |
|
|
(2) | Amounts exclude the net impact of covered loan dispositions and amortization of the FDIC indemnification asset of $38.5 million and $32.4 million for the three months ended June 30, 2012 and 2011, respectively. |
EAST WEST BANCORP, INC.
YEAR TO DATE AVERAGE BALANCES, YIELDS AND RATES PAID
(In thousands)
(unaudited)
|
| Year To Date |
| ||||||||||||||
|
| June 30, 2012 |
| June 30, 2011 |
| ||||||||||||
|
| Average |
|
|
|
|
| Average |
|
|
|
|
| ||||
|
| Volume |
| Interest |
| Yield (1) |
| Volume |
| Interest |
| Yield (1) |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Due from banks and short-term investments |
| $ | 1,276,498 |
| $ | 12,306 |
| 1.94% |
| $ | 995,055 |
| $ | 7,240 |
| 1.47 | % |
Securities purchased under resale agreements |
| 910,857 |
| 9,072 |
| 2.00% |
| 984,020 |
| 9,379 |
| 1.92 | % | ||||
Investment securities available-for-sale |
| 2,725,123 |
| 38,145 |
| 2.81% |
| 3,020,860 |
| 42,110 |
| 2.81 | % | ||||
Loans receivable |
| 10,711,442 |
| 251,201 |
| 4.72% |
| 9,271,782 |
| 234,650 |
| 5.10 | % | ||||
Loans receivable - covered |
| 3,712,894 |
| 207,874 |
| 11.26% |
| 4,591,211 |
| 233,649 |
| 10.26 | % | ||||
Federal Home Loan Bank and Federal Reserve Bank stock |
| 179,164 |
| 1,814 |
| 2.04% |
| 204,992 |
| 1,775 |
| 1.75 | % | ||||
Total interest-earning assets |
| 19,515,978 |
| 520,412 |
| 5.36% |
| 19,067,920 |
| 528,803 |
| 5.59 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Cash and cash equivalents |
| 252,896 |
|
|
|
|
| 277,214 |
|
|
|
|
| ||||
Allowance for loan losses |
| (224,646 | ) |
|
|
|
| (232,371 | ) |
|
|
|
| ||||
Other assets |
| 2,064,695 |
|
|
|
|
| 2,120,150 |
|
|
|
|
| ||||
Total assets |
| $ | 21,608,923 |
|
|
|
|
| $ | 21,232,913 |
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Checking accounts |
| 970,526 |
| 1,413 |
| 0.29% |
| 782,547 |
| 1,347 |
| 0.35 | % | ||||
Money market accounts |
| 4,748,698 |
| 8,244 |
| 0.35% |
| 4,374,322 |
| 11,823 |
| 0.55 | % | ||||
Savings deposits |
| 1,207,994 |
| 1,229 |
| 0.20% |
| 1,003,074 |
| 1,665 |
| 0.33 | % | ||||
Time deposits |
| 6,659,958 |
| 28,455 |
| 0.86% |
| 7,397,717 |
| 40,277 |
| 1.10 | % | ||||
Federal funds purchased |
| 4,470 |
| 2 |
| 0.11% |
| - |
| - |
| - |
| ||||
Federal Home Loan Bank advances |
| 412,879 |
| 3,495 |
| 1.70% |
| 875,290 |
| 9,733 |
| 2.24 | % | ||||
Securities sold under repurchase agreements |
| 1,000,908 |
| 23,313 |
| 4.68% |
| 1,072,124 |
| 24,133 |
| 4.54 | % | ||||
Long-term debt |
| 212,178 |
| 2,186 |
| 2.07% |
| 235,456 |
| 3,359 |
| 2.88 | % | ||||
Other borrowings |
| - |
| - |
| - |
| 16,122 |
| 296 |
| 3.70 | % | ||||
Total interest-bearing liabilities |
| 15,217,611 |
| 68,337 |
| 0.90% |
| 15,756,652 |
| 92,633 |
| 1.19 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Demand deposits |
| 3,635,300 |
|
|
|
|
| 2,828,933 |
|
|
|
|
| ||||
Other liabilities |
| 450,183 |
|
|
|
|
| 468,704 |
|
|
|
|
| ||||
Stockholders’ equity |
| 2,305,829 |
|
|
|
|
| 2,178,624 |
|
|
|
|
| ||||
Total liabilities and stockholders’ equity |
| $ | 21,608,923 |
|
|
|
|
| $ | 21,232,913 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest rate spread |
|
|
|
|
| 4.46% |
|
|
|
|
| 4.40 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net interest income and net interest margin |
|
|
| $ | 452,075 |
| 4.66% |
|
|
| $ | 436,170 |
| 4.61 | % | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net interest income and net interest margin, adjusted (2) |
|
|
| $ | 398,862 |
| 4.11% |
|
|
| $ | 376,864 |
| 3.99 | % | ||
(1) | Annualized. |
|
|
(2) | Amounts exclude the net impact of covered loan dispositions and amortization of the FDIC indemnification asset of $53.2 million and $59.3 million for the six months ended June 30, 2012 and 2011, respectively. |
EAST WEST BANCORP, INC.
QUARTERLY ALLOWANCE FOR LOAN LOSSES RECAP
(In thousands)
(unaudited)
|
|
|
| Quarter Ended |
|
|
| |||
|
| 6/30/2012 |
| 3/31/2012 |
| 6/30/2011 |
| |||
LOANS |
|
|
|
|
|
|
| |||
Allowance balance, beginning of period |
| $ | 222,521 |
| $ | 216,523 |
| $ | 226,161 |
|
Allowance for unfunded loan commitments and letters of credit |
| 274 |
| (1,778 | ) | (487 | ) | |||
Provision for loan losses |
| 15,500 |
| 18,100 |
| 26,500 |
| |||
|
|
|
|
|
|
|
| |||
Net Charge-offs: |
|
|
|
|
|
|
| |||
Real estate - single family |
| 273 |
| 1,295 |
| 1,120 |
| |||
Real estate - multifamily |
| 1,021 |
| 795 |
| 1,081 |
| |||
Real estate - commercial |
| 2,179 |
| 4,342 |
| 2,164 |
| |||
Real estate - land and construction |
| 665 |
| 3,590 |
| 18,143 |
| |||
Commercial |
| 6,624 |
| 222 |
| 8,844 |
| |||
Consumer |
| 906 |
| 80 |
| 266 |
| |||
Total net charge-offs |
| 11,668 |
| 10,324 |
| 31,618 |
| |||
Allowance balance, end of period (3) |
| $ | 226,627 |
| $ | 222,521 |
| $ | 220,556 |
|
|
|
|
|
|
|
|
| |||
UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT: |
|
|
|
|
|
|
| |||
Allowance balance, beginning of period |
| $ | 12,778 |
| $ | 11,000 |
| $ | 10,710 |
|
Provision for unfunded loan commitments and letters of credit |
| (274 | ) | 1,778 |
| 487 |
| |||
Allowance balance, end of period |
| $ | 12,504 |
| $ | 12,778 |
| $ | 11,197 |
|
GRAND TOTAL, END OF PERIOD |
| $ | 239,131 |
| $ | 235,299 |
| $ | 231,753 |
|
|
|
|
|
|
|
|
| |||
Nonperforming assets to total assets (1) |
| 0.72% |
| 0.77% |
| 0.83% |
| |||
Allowance for loan losses on non-covered loans to total gross non-covered loans held for investment at end of period |
| 2.03% |
| 2.04% |
| 2.29% |
| |||
Allowance for loan losses on non-covered loans and unfunded loan commitments to total gross non-covered loans held for investment at end of period |
| 2.15% |
| 2.16% |
| 2.41% |
| |||
|
|
|
|
|
|
|
| |||
Allowance on non-covered loans to non-covered nonaccrual loans at end of period |
| 195.18% |
| 177.36% |
| 129.80% |
| |||
Nonaccrual loans to total loans (2) |
| 0.78% |
| 0.83% |
| 1.17% |
|
(1) | Nonperforming assets excludes covered loans and covered REOs. Total assets includes covered assets. |
(2) | Nonaccrual loans excludes covered loans. Total loans includes covered loans. |
(3) | Included in the allowance is $7.2 million, $8.3 million, and $6.7 million related to covered loans as of June 30, 2012, March 31, 2012 and June 30, 2011, respectively. This allowance is related to drawdowns on commitments that were in existence as of the acquisition dates and therefore, are covered under the loss share agreements with the FDIC. Allowance on these subsequent drawdowns is accounted for as part of the general allowance. |
EAST WEST BANCORP, INC.
TOTAL NON-PERFORMING ASSETS, EXCLUDING COVERED ASSETS
(In thousands)
(unaudited)
AS OF JUNE 30, 2012
|
|
| Total Nonaccrual Loans |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
|
| 90+ Days |
|
|
| Under 90+ Days |
|
|
| Total |
|
|
| REO Assets |
|
|
| Total |
| |||||
Loan Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Real estate - single family |
|
| $ | 6,405 |
|
|
| $ | 1,350 |
|
|
| $ | 7,755 |
|
|
| $ | 5,055 |
|
|
| $ | 12,810 |
|
Real estate - multifamily |
|
| 9,278 |
|
|
| 11,129 |
|
|
| 20,407 |
|
|
| 117 |
|
|
| 20,524 |
| |||||
Real estate - commercial |
|
| 22,751 |
|
|
| 2,092 |
|
|
| 24,843 |
|
|
| 24,906 |
|
|
| 49,749 |
| |||||
Real estate - land and construction |
|
| 32,390 |
|
|
| 669 |
|
|
| 33,059 |
|
|
| 12,759 |
|
|
| 45,818 |
| |||||
Commercial |
|
| 17,072 |
|
|
| 6,000 |
|
|
| 23,072 |
|
|
| 53 |
|
|
| 23,125 |
| |||||
Consumer |
|
| 3,298 |
|
|
| - |
|
|
| 3,298 |
|
|
| 332 |
|
|
| 3,630 |
| |||||
Total |
|
| $ | 91,194 |
|
|
| $ | 21,240 |
|
|
| $ | 112,434 |
|
|
| $ | 43,222 |
|
|
| $ | 155,656 |
|
AS OF MARCH 31, 2012
|
|
| Total Nonaccrual Loans |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
|
| 90+ Days |
|
|
| Under 90+ Days |
|
|
| Total |
|
|
| REO Assets |
|
|
| Total |
| |||||
Loan Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Real estate - single family |
|
| $ | 3,735 |
|
|
| $ | - |
|
|
| $ | 3,735 |
|
|
| $ | 6,591 |
|
|
| $ | 10,326 |
|
Real estate - multifamily |
|
| 8,067 |
|
|
| 10,399 |
|
|
| 18,466 |
|
|
| 2,766 |
|
|
| 21,232 |
| |||||
Real estate - commercial |
|
| 39,605 |
|
|
| 3,449 |
|
|
| 43,054 |
|
|
| 23,190 |
|
|
| 66,244 |
| |||||
Real estate - land and construction |
|
| 38,909 |
|
|
| 530 |
|
|
| 39,439 |
|
|
| 13,084 |
|
|
| 52,523 |
| |||||
Commercial |
|
| 8,848 |
|
|
| 4,082 |
|
|
| 12,930 |
|
|
| 297 |
|
|
| 13,227 |
| |||||
Consumer |
|
| 3,174 |
|
|
| - |
|
|
| 3,174 |
|
|
| 415 |
|
|
| 3,589 |
| |||||
Total |
|
| $ | 102,338 |
|
|
| $ | 18,460 |
|
|
| $ | 120,798 |
|
|
| $ | 46,343 |
|
|
| $ | 167,141 |
|
AS OF JUNE 30, 2011
|
|
| Total Nonaccrual Loans |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
|
| 90+ Days |
|
|
| Under 90+ Days |
|
|
| Total |
|
|
| REO Assets |
|
|
| Total |
| |||||
Loan Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Real estate - single family |
|
| $ | 13,326 |
|
|
| $ | - |
|
|
| $ | 13,326 |
|
|
| $ | 1,384 |
|
|
| $ | 14,710 |
|
Real estate - multifamily |
|
| 11,174 |
|
|
| 3,708 |
|
|
| 14,882 |
|
|
| 833 |
|
|
| 15,715 |
| |||||
Real estate - commercial |
|
| 38,677 |
|
|
| 3,432 |
|
|
| 42,109 |
|
|
| 4,789 |
|
|
| 46,898 |
| |||||
Real estate - land and construction |
|
| 48,157 |
|
|
| 21,013 |
|
|
| 69,170 |
|
|
| 9,007 |
|
|
| 78,177 |
| |||||
Commercial |
|
| 19,078 |
|
|
| 5,091 |
|
|
| 24,169 |
|
|
| 358 |
|
|
| 24,527 |
| |||||
Consumer |
|
| 1,077 |
|
|
| - |
|
|
| 1,077 |
|
|
| 93 |
|
|
| 1,170 |
| |||||
Total |
|
| $ | 131,489 |
|
|
| $ | 33,244 |
|
|
| $ | 164,733 |
|
|
| $ | 16,464 |
|
|
| $ | 181,197 |
|
EAST WEST BANCORP, INC.
GAAP TO NON-GAAP RECONCILIATION
(In thousands)
(unaudited)
The tangible common equity to risk weighted assets and tangible common equity to tangible assets ratios are non-GAAP disclosures. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance to provide additional disclosure. As the use of tangible common equity to tangible assets ratio is more prevalent in the banking industry and with banking regulators and analysts, we have included the tangible common equity to risk-weighted assets and tangible common equity to tangible assets ratios.
|
|
| As of |
| |
|
|
| June 30, 2012 |
| |
Stockholders’ equity |
|
| $ | 2,294,940 | |
Less: |
|
|
|
| |
Preferred equity |
|
| (83,027) | ||
Goodwill and other intangible assets |
|
| (404,304) | ||
Tangible common equity |
|
| $ | 1,807,609 | |
|
|
|
|
| |
Risk-weighted assets |
|
| 13,031,656 | ||
|
|
|
|
| |
Tangible common equity to risk-weighted assets ratio |
|
| 13.9% | ||
|
|
|
|
| |
|
|
| As of |
| |
|
|
| June 30, 2012 |
| |
Total assets |
|
| $ | 21,525,734 | |
Less: |
|
|
| ||
Goodwill and other intangible assets |
|
| (404,304) | ||
Tangible assets |
|
| $ | 21,121,430 | |
|
|
|
| ||
Tangible common equity to tangible assets ratio |
|
| 8.6% | ||
EAST WEST BANCORP, INC.
GAAP TO NON-GAAP RECONCILIATION
(In thousands)
(unaudited)
Operating noninterest expense is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance to provide additional disclosure. These are noninterest expense line items that are non-core in nature. Operating noninterest expense excludes such non-core noninterest expense line items. The Company believes that presenting operating noninterest expense provides more clarity to the users of financial statements regarding the core noninterest expense amounts.
|
|
|
|
|
|
| Quarter Ended |
|
|
|
|
| |||
|
|
| June 30, 2012 |
|
|
| March 31, 2012 |
|
|
| June 30, 2011 |
| |||
Total noninterest expense: |
|
| $ | 101,608 |
|
|
| $ | 114,763 |
|
|
| $ | 117,597 |
|
Amounts to be reimbursed by the FDIC on covered assets (80% of actual expense amount) |
|
| 2,683 |
|
|
| 12,122 |
|
|
| 13,574 |
| |||
Prepayment penalties for FHLB advances |
|
| 2,336 |
|
|
| 1,321 |
|
|
| 4,433 |
| |||
Noninterest expense excluding reimbursable amounts and prepayment penalties for FHLB advances |
|
| $ | 96,589 |
|
|
| $ | 101,320 |
|
|
| $ | 99,590 |
|
EAST WEST BANCORP, INC.
GAAP TO NON-GAAP RECONCILIATION
(In thousands)
(unaudited)
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance to provide additional disclosure. The net interest income on covered loans includes amounts that are non-core in nature. As such, the Company believes that presenting the net interest income on covered loans excluding such non-core items provides additional clarity to the users of financial statements regarding the covered loan yield, comparability to prior periods and the ongoing performance of the Company.
|
| Quarter Ended June 30, 2012 | ||||||||
|
| Average Volume |
| Interest |
|
| Yield (1) | |||
Loans receivable - covered |
|
| $ | 3,572,300 |
| $ | 112,510 |
|
| 12.67% |
Less net impact of covered loan dispositions and amortization of |
|
|
|
|
|
|
|
| ||
the FDIC indemnification asset |
|
|
|
| (38,504 | ) |
|
| ||
Covered loans excluding net impact of covered loan dispositions and |
|
|
|
|
|
|
|
| ||
amortization of the FDIC indemnification asset |
|
|
|
| $ | 74,006 |
|
| 8.33% | |
|
| Quarter Ended March 31, 2012 | ||||||||
|
|
| Average Volume |
| Interest |
|
| Yield (1) | ||
Loans receivable - covered |
|
| $ | 3,853,488 |
| $ | 95,364 |
|
| 9.95% |
Less net impact of covered loan dispositions and amortization of |
|
|
|
|
|
|
|
| ||
the FDIC indemnification asset |
|
|
|
| (14,709 | ) |
|
| ||
Covered loans excluding net impact of covered loan dispositions and |
|
|
|
|
|
|
|
| ||
amortization of the FDIC indemnification asset |
|
|
|
| $ | 80,655 |
|
| 8.42% | |
(1) Annualized.
EAST WEST BANCORP, INC.
GAAP TO NON-GAAP RECONCILIATION
(In thousands)
(unaudited)
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance to provide additional disclosure. The net interest margin includes amounts that are non-core in nature. As such, the Company believes that presenting the net interest income and net interest margin excluding such non-core items provides additional clarity to the users of financial statements regarding the core net interest income and net interest margin, comparability to prior periods and the ongoing performance of the Company.
|
| Quarter Ended June 30, 2012 | ||||||||
|
|
| Average Volume |
| Interest |
|
| Yield (1) | ||
Total interest-earning assets |
|
| $ | 19,508,910 |
| $ | 266,362 |
|
| 5.49% |
Net interest income and net interest margin |
|
|
|
| 233,157 |
|
| 4.81% | ||
Less net impact of covered loan dispositions and amortization of |
|
|
|
|
|
|
|
| ||
the FDIC indemnification asset |
|
|
|
| (38,504 | ) |
|
| ||
Net interest income and net interest margin, excluding |
|
|
|
|
|
|
|
| ||
net impact of covered loan dispositions and amortization of the |
|
|
|
|
|
|
|
| ||
FDIC indemnification asset |
|
|
|
| $ | 194,653 |
|
| 4.01% | |
|
| Quarter Ended March 31, 2012 | ||||||||
|
|
| Average Volume |
| Interest |
|
| Yield (1) | ||
Total interest-earning assets |
|
| $ | 19,523,046 |
| $ | 254,050 |
|
| 5.23% |
Net interest income and net interest margin |
|
|
|
| 218,918 |
|
| 4.51% | ||
Less net impact of covered loan dispositions and amortization of |
|
|
|
|
|
|
|
| ||
the FDIC indemnification asset |
|
|
|
| (14,709 | ) |
|
| ||
Net interest income and net interest margin, excluding |
|
|
|
|
|
|
|
| ||
net impact of covered loan dispositions and amortization of the |
|
|
|
|
|
|
|
| ||
FDIC indemnification asset |
|
|
|
| $ | 204,209 |
|
| 4.21% | |
|
| Quarter Ended June 30, 2011 | ||||||||
|
|
| Average Volume |
| Interest |
|
| Yield (1) | ||
Total interest-earning assets |
|
| $ | 19,402,969 |
| $ | 274,468 |
|
| 5.67% |
Net interest income and net interest margin |
|
|
|
| 227,336 |
|
| 4.70% | ||
Less net impact of covered loan dispositions and amortization of |
|
|
|
|
|
|
|
| ||
the FDIC indemnification asset |
|
|
|
| (32,381 | ) |
|
| ||
Net interest income and net interest margin, excluding |
|
|
|
|
|
|
|
| ||
net impact of covered loan dispositions and amortization of the |
|
|
|
|
|
|
|
| ||
FDIC indemnification asset |
|
|
|
| $ | 194,955 |
|
| 4.03% | |
(1) Annualized.
EAST WEST BANCORP, INC.
GAAP TO NON-GAAP RECONCILIATION
(In thousands)
(unaudited)
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance to provide additional disclosure. The net interest margin includes amounts that are non-core in nature. As such, the Company believes that presenting the net interest income and net interest margin excluding such non-core items provides additional clarity to the users of financial statements regarding the core net interest income and net interest margin, comparability to prior periods and the ongoing performance of the Company.
|
| Year to Date June 30, 2012 | ||||||||
|
|
| Average Volume |
| Interest |
|
| Yield | ||
Total interest-earning assets |
|
| $ | 19,515,978 |
| $ | 520,412 |
|
| 5.36% |
Net interest income and net interest margin |
|
|
|
| 452,075 |
|
| 4.66% | ||
Less net impact of covered loan dispositions and amortization of |
|
|
|
|
|
|
|
| ||
the FDIC indemnification asset |
|
|
|
| (53,213 | ) |
|
| ||
Net interest income and net interest margin, excluding |
|
|
|
|
|
|
|
| ||
net impact of covered loan dispositions and amortization of the |
|
|
|
|
|
|
|
| ||
FDIC indemnification asset |
|
|
|
| $ | 398,862 |
|
| 4.11% | |
|
| Year to Date June 30, 2011 | ||||||||
|
|
| Average Volume |
| Interest |
|
| Yield | ||
Total interest-earning assets |
|
| $ | 19,067,920 |
| $ | 528,803 |
|
| 5.59% |
Net interest income and net interest margin |
|
|
|
| 436,170 |
|
| 4.61% | ||
Less net impact of covered loan dispositions and amortization of |
|
|
|
|
|
|
|
| ||
the FDIC indemnification asset |
|
|
|
| (59,306 | ) |
|
| ||
Net interest income and net interest margin, excluding |
|
|
|
|
|
|
|
| ||
net impact of covered loan dispositions and amortization of the |
|
|
|
|
|
|
|
| ||
FDIC indemnification asset |
|
|
|
| $ | 376,864 |
|
| 3.99% | |