Exhibit 12.1
EAST WEST BANCORP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31, | ||||||||||||||||||||
($ in thousands) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Including interest on deposits | ||||||||||||||||||||
Income before income taxes | $ | 735,100 | $ | 572,188 | $ | 578,721 | $ | 447,023 | $ | 447,146 | ||||||||||
Fixed charges and preferred dividends | 149,962 | 112,873 | 111,590 | 121,562 | 126,170 | |||||||||||||||
Total earnings | $ | 885,062 | $ | 685,061 | $ | 690,311 | $ | 568,585 | $ | 573,316 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense | $ | 140,050 | $ | 104,843 | $ | 103,376 | $ | 112,820 | $ | 112,492 | ||||||||||
1/3 of net rental expense (1) | 9,912 | 8,030 | 8,214 | 8,742 | 8,731 | |||||||||||||||
Total fixed charges | $ | 149,962 | $ | 112,873 | $ | 111,590 | $ | 121,562 | $ | 121,223 | ||||||||||
Preferred dividends | — | — | — | — | 4,947 | |||||||||||||||
Total fixed charges and preferred dividends | $ | 149,962 | $ | 112,873 | $ | 111,590 | $ | 121,562 | $ | 126,170 | ||||||||||
Ratio of earnings to fixed charges | 5.90 | 6.07 | 6.19 | 4.68 | 4.73 | |||||||||||||||
Ratio of earnings to fixed charges and preferred dividends | 5.90 | 6.07 | 6.19 | 4.68 | 4.54 | |||||||||||||||
Excluding interest on deposits | ||||||||||||||||||||
Income before income taxes | $ | 735,100 | $ | 572,188 | $ | 578,721 | $ | 447,023 | $ | 447,146 | ||||||||||
Fixed charges and preferred dividends | 33,571 | 28,649 | 38,085 | 56,076 | 62,674 | |||||||||||||||
Total earnings | $ | 768,671 | $ | 600,837 | $ | 616,806 | $ | 503,099 | $ | 509,820 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense | $ | 140,050 | $ | 104,843 | $ | 103,376 | $ | 112,820 | $ | 112,492 | ||||||||||
Less: Interest on deposits | (116,391 | ) | (84,224 | ) | (73,505 | ) | (65,486 | ) | (63,496 | ) | ||||||||||
1/3 of net rental expense (1) | 9,912 | 8,030 | 8,214 | 8,742 | 8,731 | |||||||||||||||
Total fixed charges | $ | 33,571 | $ | 28,649 | $ | 38,085 | $ | 56,076 | $ | 57,727 | ||||||||||
Preferred dividends | — | — | — | — | 4,947 | |||||||||||||||
Total fixed charges and preferred dividends | $ | 33,571 | $ | 28,649 | $ | 38,085 | $ | 56,076 | $ | 62,674 | ||||||||||
Ratio of earnings to fixed charges | 22.90 | 20.97 | 16.20 | 8.97 | 8.83 | |||||||||||||||
Ratio of earnings to fixed charges and preferred dividends | 22.90 | 20.97 | 16.20 | 8.97 | 8.13 | |||||||||||||||
(1) | The proportion deemed representative of the interest factor. |