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East West Bancorp Reports Net Income for First Quarter of 2024 of $285 Million and Diluted Earnings Per Share of $2.03

East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, reported its financial results for the first quarter of 2024. First quarter 2024 net income was $285 million, or $2.03 per diluted share. Excluding a $10 million pre-tax Federal Deposit Insurance Corporation (“FDIC”) Special Assessment-related charge (the “FDIC charge”)1, adjusted diluted earnings per share2 for the quarter were $2.08, up 3% from the fourth quarter of 2023. Total deposits reached a record $58.6 billion as of March 31, 2024. Return on average common equity was 16%, return on average tangible common equity3 was 18%, and book value per share grew 13% year-over-year.

“This quarter we grew deposits by $2.5 billion to a new record level and optimized funding to support prudent asset growth,” said Dominic Ng, Chairman and Chief Executive Officer. “East West grew adjusted diluted earnings per share 3% and tangible book value per share3 2% quarter-over-quarter. With continued confidence in our earnings generation, stable credit quality, and capital strength, we were pleased to repurchase 1.2 million shares of common stock,” continued Ng. “Through the strength of our diversified business model, conservatively managed balance sheet, and industry-leading profitability, East West remains well-positioned to outperform the industry in 2024 and beyond.”

FINANCIAL HIGHLIGHTS

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Quarter-over-Quarter Change

($ in millions, except per share data)

 

March 31,

2024

 

December 31,

2023

 

$

 

%

 

 

 

 

 

 

 

 

 

Revenue

 

$644

 

$655

 

$(11)

 

(2)%

Pre-tax, Pre-provision Income4

 

397

 

364

 

33

 

9

Net Income

 

285

 

239

 

46

 

19

Diluted Earnings per Share

 

$2.03

 

$1.69

 

$0.34

 

20%

Adjusted Diluted Earnings per Share2

 

$2.08

 

$2.02

 

$0.06

 

3%

Book Value per Share

 

$50.48

 

$49.64

 

$0.84

 

2%

Tangible Book Value per Share3

 

$47.09

 

$46.27

 

$0.82

 

2%

Return on Average Common Equity

 

16.40%

 

14.16%

 

224 bps

 

Return on Average Tangible Common Equity3

 

17.60%

 

15.26%

 

234 bps

 

Total Assets

 

$70,876

 

$69,613

 

$1,263

 

2%

 

 

 

 

 

 

 

 

 

1

In November 2023, the FDIC approved a final rule to implement a special deposit insurance assessment to recover estimated losses to the Deposit Insurance Fund arising from the protection of uninsured depositors following the receiverships of failed institutions in the spring of 2023. In February 2024, the FDIC increased the estimated losses by $4.1 billion to $20.4 billion. As losses to the DIF are estimates, the FDIC may periodically adjust the amount, resulting in longer or shorter assessment periods, and/or additional special assessments.

2

Adjusted diluted earnings per share is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP measures in Table 12.

3

Return on average tangible common equity and tangible book value per share are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 11.

4

Pre-tax, pre-provision income is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP financial measures in Table 10.

BALANCE SHEET

  • Assets – Total assets were $70.9 billion as of March 31, 2024, an increase of $1.3 billion from $69.6 billion as of December 31, 2023, primarily reflecting a $2.2 billion increase in AFS debt securities mainly funded by a $2.5 billion increase in deposits; partly offset by decreases in cash and cash equivalents, assets purchased under resale agreements, and other items. Year-over-year, total assets grew $3.6 billion, or 5%, from $67.2 billion as of March 31, 2023.



    First quarter 2024 average interest-earning assets of $68.1 billion were up $2.6 billion, or 4%, from $65.5 billion in the fourth quarter of 2023, reflecting increases of $1.4 billion in average cash and deposits with banks, $0.7 billion in average loans outstanding, and $0.6 billion in average AFS debt securities holdings.

  • Loans – Total loans were $52.0 billion as of March 31, 2024, a decrease of $0.2 billion from $52.2 billion as of December 31, 2023. Year-over-year, total loans were up $3.1 billion, or 6%, from $48.9 billion as of March 31, 2023.



    First quarter 2024 average loans of $51.9 billion grew $0.7 billion, or 1%, from the fourth quarter of 2023. The increase was driven by growth across our single-family residential and C&I loan portfolios.

  • Deposits – Total deposits were $58.6 billion as of March 31, 2024, an increase of $2.5 billion, or 4%, from $56.1 billion as of December 31, 2023, primarily reflecting an increase in customer deposits related to a successful branch-based CD campaign for the Lunar New Year. Noninterest-bearing deposits made up 25% of our total deposits as of March 31, 2024, down from 28% as of December 31, 2023. Year-over-year, total deposits increased $3.8 billion from $54.7 billion as of March 31, 2023.



    First quarter 2024 average deposits of $57.4 billion increased $2.0 billion from the fourth quarter of 2023, with growth in average time, money market, and interest-bearing checking deposits offset by declines in other categories.

  • Borrowings – Total borrowings and long-term debt were $3.6 billion as of March 31, 2024, a decrease of $1.1 billion, or 24%, from $4.7 billion as of December 31, 2023. The decrease was driven by the payoff of $4.5 billion in Bank Term Funding Program borrowings and a $117 million decrease in long-term debt and finance lease liabilities due to the redemption of East West Capital Trust securities, partially offset by a $3.5 billion increase in Federal Home Loan Bank advances.

  • Capital – As of March 31, 2024, stockholders’ equity was $7.0 billion, up 1% quarter-over-quarter. The stockholders’ equity to asset ratio was 9.91% as of March 31, 2024, compared with 9.98% as of December 31, 2023.



    Book value per share was $50.48 as of March 31, 2024, up 2% quarter-over-quarter and 13% year-over-year. As of March 31, 2024, tangible book value per share5 was $47.09, up 2% quarter-over-quarter and 14% year-over-year. The tangible common equity ratio5 was 9.31%, compared with 9.37% as of December 31, 2023.



    All of East West’s regulatory capital ratios are well in excess of regulatory requirements for well-capitalized institutions, and well above regional bank averages. The common equity tier 1 (“CET1”) capital ratio increased to 13.53%, and the total risk-based capital ratio increased by eight basis points to 14.84%, as of March 31, 2024.

OPERATING RESULTS

First Quarter Earnings – First quarter 2024 net income was $285 million, and diluted earnings per share (“EPS”) were $2.03. Excluding $10 million pre-tax for the FDIC charge in the first quarter of 2024 and a $70 million pre-tax FDIC charge and $3 million of losses on an AFS debt security in the fourth quarter of 2023, adjusted net income6 was $292 million and adjusted diluted earnings per share were $2.08, up 2% and 3% quarter-over-quarter, respectively.

5

 

Tangible book value per share and the tangible common equity ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 11.

6

 

Adjusted net income is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP measures in Table 12.

First Quarter 2024 Compared to Fourth Quarter 2023

Net Interest Income and Net Interest Margin

Net interest income totaled $565 million in the first quarter, a decrease of 2% from $575 million in the fourth quarter of 2023. Net interest margin (“NIM”) was 3.34%, a 14 basis point decline from the fourth quarter.

  • NIM declined primarily due to a higher cost of interest-bearing deposits and continued deposit mix shift, partly offset by higher asset yields and balances.
  • The average loan yield was 6.71%, up 10 basis points from the fourth quarter. The average interest-earning asset yield was 6.04%, up four basis points from the fourth quarter.
  • The average cost of funds was 2.97%, up 23 basis points from the fourth quarter. The average cost of deposits was 2.84%, up 24 basis points from the fourth quarter.

Noninterest Income

Noninterest income totaled $79 million in the first quarter, a decrease of $1 million, or 1%, from $80 million in the fourth quarter. Mark-to-market and credit valuation adjustments on customer and other derivatives was a gain of $1 million in the first quarter, compared with a loss of $7 million in the fourth quarter. Other investment income increased $1 million quarter-over-quarter.

  • Fee income7 of $71 million was down $2 million, or 3%, from $73 million in the fourth quarter.
  • Deposit fees, lending fees, and wealth management fees each increased by approximately $1 million quarter-over-quarter.
  • The above increases were offset by a $3 million decrease in customer derivative revenue, reflecting lower customer activity.
  • Foreign exchange income decreased $2 million in the first quarter, primarily reflecting an unfavorable change in mark-to-market adjustments on FX positions.

Noninterest Expense

Noninterest expense totaled $247 million in the first quarter, a decrease of $44 million, or 15% from $290 million in the fourth quarter, which includes $10 million and $70 million, respectively, for the FDIC charge. First quarter noninterest expense consisted of $223 million of adjusted noninterest expense8, and $13 million in amortization expenses related to tax credit and other investments.

  • Adjusted noninterest expense of $223 million increased nearly $8 million, or 4%, from $215 million in the fourth quarter. This was driven primarily by a seasonal first quarter $11 million increase in compensation and employee benefits, reflecting higher payroll taxes and an increase in compensation, partly offset by a $5 million decrease in other operating expense, primarily reflecting lower legal expense and realized credit card fraud losses in the first quarter.
  • Amortization of tax credit and other investments was $13 million in the first quarter, up $9 million from the fourth quarter. The increase was due to the sale of a tax credit investment and the timing of certain renewable energy tax credit investments that were not placed into service in the fourth quarter.
  • The efficiency ratio was 38.3% in the first quarter, compared with 44.4% in the fourth quarter and the adjusted efficiency ratio8 was 34.7% in the first quarter, compared with 33.1% in the fourth quarter.

TAX RELATED ITEMS

First quarter 2024 income tax expense was $87 million, and the effective tax rate was 23.4%, compared with income tax expense of $88 million and 27.0% for the fourth quarter of 2023. The lower effective tax rate in the first quarter was primarily due to the sale of a tax credit investment in the fourth quarter and the timing of certain renewable energy tax credit investments that are expected to be placed into service in 2024.

7

Fee income includes deposit account and lending fees, foreign exchange income, wealth management fees, and customer derivative revenue. Refer to Table 3 for additional fee and noninterest income information.

8

Adjusted noninterest expense and adjusted efficiency ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 10.

ASSET QUALITY

As of March 31, 2024, the credit quality of our loan portfolio remained solid.

  • The criticized loans ratio increased 43 basis points quarter-over-quarter to 2.30% of loans held-for-investment (“HFI”) as of March 31, 2024, compared with 1.87% as of December 31, 2023. Criticized loans increased $217 million quarter-over-quarter to $1.2 billion as of March 31, 2024. The special mention loans ratio increased 28 basis points quarter-over-quarter to 1.05% of loans HFI as of March 31, 2024, compared with 0.77% as of December 31, 2023, and the classified loans ratio increased 15 basis points to 1.25%.
  • Nonperforming assets increased $51 million to $165 million as of March 31, 2024, from $114 million as of December 31, 2023. The nonperforming assets ratio was 0.23% of total assets as of March 31, 2024, compared with 0.16% of total assets as of December 31, 2023. The quarter-over-quarter change reflects increases across commercial real estate, consumer, and C&I asset types.
  • First quarter 2023 net charge-offs were $23 million, or annualized 0.17% of average loans HFI, compared with $20 million, or annualized 0.15% of average loans HFI, for the fourth quarter of 2023.
  • The allowance for loan losses increased to $670 million, or 1.29% of loans HFI, as of March 31, 2024, compared with $669 million, or 1.28% of loans HFI, as of December 31, 2023.
  • First quarter 2024 provision for credit losses was $25 million, compared with $37 million in the fourth quarter of 2023.

CAPITAL STRENGTH

Capital levels for East West remained strong as of March 31, 2024. The following table presents capital metrics as of March 31, 2024, December 31, 2023 and March 31, 2023.

 

EWBC Capital

 

 

($ in millions)

 

March 31, 2024 (a)

 

December 31, 2023 (a)

 

March 31, 2023 (a)

Risk-Weighted Assets (“RWA”) (b)

 

$53,448

 

$53,663

 

$50,229

Risk-based capital ratios:

 

 

 

 

 

 

CET1 capital ratio

 

13.53%

 

13.31%

 

13.06%

Tier 1 capital ratio

 

13.53%

 

13.31%

 

13.06%

Total capital ratio

 

14.84%

 

14.76%

 

14.50%

Leverage ratio

 

10.05%

 

10.21%

 

10.02%

Tangible common equity ratio (c)

 

9.31%

 

9.37%

 

8.74%

 

(a)

The Company has elected to use the 2020 Current Expected Credit Losses (CECL) transition provision in the calculation of its March 31, 2024, December 31, 2023 and March 31, 2023 regulatory capital ratios. The Company’s March 31, 2024 regulatory capital ratios and RWA are preliminary.

(b)

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.

(c)

Tangible common equity ratio is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP measures in Table 11.

DIVIDEND PAYOUT AND CAPITAL ACTIONS

East West’s Board of Directors has declared second quarter 2024 dividends for the Company’s common stock. The common stock cash dividend of $0.55 per share is payable on May 17, 2024, to stockholders of record as of May 3, 2024.

East West repurchased 1.2 million shares of common stock during the first quarter of 2024 for approximately $82 million. $89 million of East West’s share repurchase authorization remains available.

Conference Call

East West will host a conference call to discuss first quarter 2024 earnings with the public on Tuesday, April 23, 2024, at 2:00 p.m. PT/5:00 p.m. ET. The public and investment community are invited to listen as management discusses first quarter 2024 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, a listen-only live broadcast of the call, and information to access a replay one hour after the call will all be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.

About East West

East West provides financial services that help customers reach further and connect to new opportunities. East West Bancorp, Inc. is a public company (Nasdaq: “EWBC”) with total assets of $70.9 billion as of March 31, 2024. The Company’s wholly-owned subsidiary, East West Bank, is the largest independent bank headquartered in Southern California, and operates 120 locations in the United States and Asia. The Bank’s markets in the United States include California, Georgia, Illinois, Massachusetts, Nevada, New York, Texas, and Washington. For more information on East West, visit www.eastwestbank.com.

Forward-Looking Statements

Certain matters set forth herein (including any exhibits hereto) contain “forward-looking statements” that are intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. East West Bancorp, Inc. (referred to herein on an unconsolidated basis as “East West” and on a consolidated basis as the “Company,” “we,” “us,” “our” or “EWBC”) may make forward-looking statements in other documents that it files with, or furnishes to, the United States (“U.S.”) Securities and Exchange Commission (“SEC”) and management may make forward-looking statements to analysts, investors, media members and others. Forward-looking statements are those that do not relate to historical facts and that are based on current assumptions, beliefs, estimates, expectations and projections, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Forward-looking statements may relate to various matters, including the Company’s financial condition, results of operations, plans, objectives, future performance, business or industry, and usually can be identified by the use of forward-looking words, such as “anticipates,” “assumes,” “believes,” “can,” “continues,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “likely,” “may,” “might,” “objective,” “plans,” “potential,” “projects,” “remains,” “should,” “target,” “trend,” “will,” “would,” or similar expressions or variations thereof, and the negative thereof, but these terms are not the exclusive means of identifying such statements. You should not place undue reliance on forward-looking statements, as they are subject to risks and uncertainties, including, but not limited to, those described below. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make.

There are various important factors that could cause future results to differ materially from historical performance and any forward-looking statements. Factors that might cause such differences, include, but are not limited to: changes in the global economy, including an economic slowdown, capital or financial market disruption, supply chain disruption, level of inflation, interest rate environment, residential and commercial property prices, employment levels, rate of growth and general business conditions, which could result in, among other things, reduced demand for loans, reduced availability of funding or increased funding costs, declines in asset values and/or recognition of allowance for credit losses; changes in local, regional and global business, economic and political conditions and geopolitical events, such as political unrest, wars and acts of terrorism; the soundness of other financial institutions and the impacts related to or resulting from bank failures and other economic and industry volatility, including potential increased regulatory requirements, FDIC insurance premiums and assessments, losses in the value of our investment portfolio, deposit withdrawals, or other adverse consequences of negative market perceptions of the banking industry or us; changes in laws or the regulatory environment, including regulatory reform initiatives and policies of the U.S. Department of the Treasury, the Board of Governors of the Federal Reserve System (“Federal Reserve”), the FDIC, the SEC, the Consumer Financial Protection Bureau (“CFPB”), the California Department of Financial Protection and Innovation — Division of Financial Institutions, the People’s Bank of China, China’s National Administration of Financial Regulation, the Hong Kong Monetary Authority, the Hong Kong Securities and Futures Commission, and the Monetary Authority of Singapore; changes and effects thereof in trade, monetary and fiscal policies and laws, including the ongoing trade, economic and political disputes between the U.S. and the People’s Republic of China and the monetary policies of the Federal Reserve; changes in the commercial and consumer real estate markets; changes in consumer or commercial spending, savings and borrowing habits, and patterns and behaviors; the impact from changes to income tax laws and regulations, federal spending and economic stimulus programs; the impact of any future U.S. federal government shutdown and uncertainty regarding the U.S. federal government’s debt limit and credit rating; the Company’s ability to compete effectively against financial institutions and other entities, including as a result of emerging technologies; the success and timing of the Company’s business strategies; the Company’s ability to retain key officers and employees; the impact on the Company’s funding costs, net interest income and net interest margin from changes in key variable market interest rates, competition, regulatory requirements and the Company’s product mix; changes in the Company’s costs of operation, compliance and expansion; the Company’s ability to adopt and successfully integrate new initiatives or technologies into its business in a strategic manner; the impact of communications or technology disruption, failure in, or breach of, the Company’s operational or security systems or infrastructure, or those of third party vendors with which the Company does business, including as a result of cyber-attacks, and other similar matters which could result in, among other things, confidential proprietary, or personally identifiable information being disclosed or misused, and materially impact the Company’s ability to provide services to its clients; the adequacy of the Company’s risk management framework, disclosure controls and procedures and internal control over financial reporting; future credit quality and performance, including the Company’s expectations regarding future credit losses and allowance levels; the impact of adverse changes to the Company’s credit ratings from major credit rating agencies; the impact of adverse judgments or settlements in litigation and other proceedings; the impact of political developments, pandemics, wars, civil unrest, terrorism or other hostilities that may disrupt or increase volatility in securities or otherwise affect business and economic conditions on the Company and its customers; heightened regulatory and governmental oversight and scrutiny of the Company’s business practices, including dealings with consumers; the impact of reputational risk from negative publicity, fines, penalties and other negative consequences from regulatory violations, legal actions and the Company’s interactions with business partners, counterparties, service providers and other third parties; the impact of regulatory investigations, regulatory agreements, supervisory criticisms, and enforcement actions; changes in accounting standards as may be required by the Financial Accounting Standards Board (“FASB”) or other regulatory agencies and their impact on the Company’s critical accounting policies and assumptions; the Company’s capital requirements and its ability to generate capital internally or raise capital on favorable terms; the impact on the Company’s liquidity due to changes in the Company’s ability to receive dividends from its subsidiaries; any strategic acquisitions or divestitures and the introduction of new or expanded products and services; changes in the equity and debt securities markets; fluctuations in the Company’s stock price; fluctuations in foreign currency exchange rates; the impact of increased focus on social, environmental and sustainability matters, which may affect the operations of the Company and its customers and the economy more broadly; and the impact of climate change, natural or man-made disasters or calamities, such as wildfires, droughts, hurricanes, flooding and earthquakes or other events that may directly or indirectly result in a negative impact on the financial performance of the Company and its customers.

For a more detailed discussion of some of the factors that might cause such differences, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024 (the “Company’s 2023 Form 10-K”) under the heading Item 1A. Risk Factors. You should treat forward-looking statements as speaking only as of the date they are made and based only on information then actually known to the Company. The Company does not undertake, and specifically disclaims any obligation to update or revise any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

($ and shares in thousands, except per share data)

(unaudited)

Table 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2024

% or Basis Point Change

 

 

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

 

Qtr-o-Qtr

 

Yr-o-Yr

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

4,210,801

 

 

$

4,614,984

 

 

$

5,934,194

 

 

(8.8

)%

 

(29.0

)%

 

 

Interest-bearing deposits with banks

 

 

24,593

 

 

 

10,498

 

 

 

10,249

 

 

134.3

 

 

140.0

 

 

 

Assets purchased under resale agreements (“resale agreements”)

 

 

485,000

 

 

 

785,000

 

 

 

654,288

 

 

(38.2

)

 

(25.9

)

 

 

Available-for-sale (“AFS”) debt securities (amortized cost of $9,131,953, $6,916,491 and $7,072,240)

 

 

8,400,468

 

 

 

6,188,337

 

 

 

6,300,868

 

 

35.7

 

 

33.3

 

 

 

Held-to-maturity (“HTM”) debt securities, at amortized cost (fair value of $2,414,478, $2,453,971 and $2,502,674)

 

 

2,948,642

 

 

 

2,956,040

 

 

 

2,993,421

 

 

(0.3

)

 

(1.5

)

 

 

Loans held-for-sale (“HFS”)

 

 

13,280

 

 

 

116

 

 

 

6,861

 

 

NM

 

 

93.6

 

 

 

Loans held-for-investment (“HFI”) (net of allowance for loan losses of $670,280, $668,743 and $619,893)

 

 

51,322,224

 

 

 

51,542,039

 

 

 

48,298,155

 

 

(0.4

)

 

6.3

 

 

 

Affordable housing partnerships, tax credit and Community Reinvestment Act investments, net

 

 

933,187

 

 

 

905,036

 

 

 

741,354

 

 

3.1

 

 

25.9

 

 

 

Goodwill

 

 

465,697

 

 

 

465,697

 

 

 

465,697

 

 

 

 

 

 

 

Operating lease right-of-use assets

 

 

87,535

 

 

 

94,024

 

 

 

103,114

 

 

(6.9

)

 

(15.1

)

 

 

Other assets

 

 

1,984,243

 

 

 

2,051,113

 

 

 

1,736,697

 

 

(3.3

)

 

14.3

 

 

 

Total assets

 

$

70,875,670

 

 

$

69,612,884

 

 

$

67,244,898

 

 

1.8

%

 

5.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

58,560,624

 

 

$

56,092,438

 

 

$

54,737,402

 

 

4.4

%

 

7.0

%

 

 

Short-term borrowings

 

 

19,173

 

 

 

 

 

 

 

 

100.0

 

 

100.0

 

 

 

Bank Term Funding Program (“BTFP”) borrowings

 

 

 

 

 

4,500,000

 

 

 

4,500,000

 

 

(100.0

)

 

(100.0

)

 

 

Federal Home Loan Bank (“FHLB”) advances

 

 

3,500,000

 

 

 

 

 

 

 

 

100.0

 

 

100.0

 

 

 

Long-term debt and finance lease liabilities

 

 

36,428

 

 

 

153,011

 

 

 

152,467

 

 

(76.2

)

 

(76.1

)

 

 

Operating lease liabilities

 

 

95,643

 

 

 

102,353

 

 

 

112,676

 

 

(6.6

)

 

(15.1

)

 

 

Accrued expenses and other liabilities

 

 

1,640,570

 

 

 

1,814,248

 

 

 

1,433,022

 

 

(9.6

)

 

14.5

 

 

 

Total liabilities

 

 

63,852,438

 

 

 

62,662,050

 

 

 

60,935,567

 

 

1.9

 

 

4.8

 

 

 

Stockholders’ equity

 

 

7,023,232

 

 

 

6,950,834

 

 

 

6,309,331

 

 

1.0

 

 

11.3

 

 

 

Total liabilities and stockholders’ equity

 

$

70,875,670

 

 

$

69,612,884

 

 

$

67,244,898

 

 

1.8

%

 

5.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

50.48

 

 

$

49.64

 

 

$

44.62

 

 

1.7

%

 

13.1

%

 

 

Tangible book value (1) per share

 

$

47.09

 

 

$

46.27

 

 

$

41.28

 

 

1.8

 

 

14.1

 

 

 

Number of common shares at period-end

 

 

139,121

 

 

 

140,027

 

 

 

141,396

 

 

(0.6

)

 

(1.6

)

 

 

Total stockholders’ equity to assets ratio

 

 

9.91

%

 

 

9.98

%

 

 

9.38

%

 

(7

)

bps

53

 

bps

 

Tangible common equity (“TCE”) ratio (1)

 

 

9.31

%

 

 

9.37

%

 

 

8.74

%

 

(6

)

bps

57

 

bps

 

 

 

 

 

 

 

NM - Not meaningful.

(1)

 

Tangible book value and the TCE ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 11.

 

EAST WEST BANCORP, INC. AND SUBSIDIARIES

TOTAL LOANS AND DEPOSITS DETAIL

($ in thousands)

(unaudited)

Table 2

 

 

 

 

 

 

 

 

 

 

March 31, 2024

% Change

 

 

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

 

Qtr-o-Qtr

 

Yr-o-Yr

Loans:

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial (“C&I”)

 

$

16,350,191

 

$

16,581,079

 

$

15,641,840

 

(1.4

)

 

4.5

 

 

Commercial real estate (“CRE”):

 

 

 

 

 

 

 

 

 

 

 

CRE

 

 

14,609,655

 

 

 

14,777,081

 

 

 

14,019,136

 

 

(1.1

)

 

4.2

 

 

Multifamily residential

 

 

5,010,245

 

 

 

5,023,163

 

 

 

4,682,280

 

 

(0.3

)

 

7.0

 

 

Construction and land

 

 

673,939

 

 

 

663,868

 

 

 

731,394

 

 

1.5

 

 

(7.9

)

 

Total CRE

 

 

20,293,839

 

 

 

20,464,112

 

 

 

19,432,810

 

 

(0.8

)

 

4.4

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage:

 

 

 

 

 

 

 

 

 

 

 

Single-family residential

 

 

13,563,738

 

 

 

13,383,060

 

 

 

11,786,998

 

 

1.4

 

 

15.1

 

 

Home equity lines of credit (“HELOCs”)

 

 

1,731,233

 

 

 

1,722,204

 

 

 

1,988,881

 

 

0.5

 

 

(13.0

)

 

Total residential mortgage

 

 

15,294,971

 

 

 

15,105,264

 

 

 

13,775,879

 

 

1.3

 

 

11.0

 

 

Other consumer

 

 

53,503

 

 

 

60,327

 

 

 

67,519

 

 

(11.3

)

 

(20.8

)

Total loans HFI (1)

 

 

51,992,504

 

 

 

52,210,782

 

 

 

48,918,048

 

 

(0.4

)

 

6.3

 

Loans HFS

 

 

13,280

 

 

 

116

 

 

 

6,861

 

 

NM

 

 

93.6

 

 

Total loans (1)

 

 

52,005,784

 

 

 

52,210,898

 

 

 

48,924,909

 

 

(0.4

)

 

6.3

 

Allowance for loan losses

 

 

(670,280

)

 

 

(668,743

)

 

 

(619,893

)

 

0.2

 

 

8.1

 

 

Net loans (1)

 

$

51,335,504

 

 

$

51,542,155

 

 

$

48,305,016

 

 

(0.4

)%

 

6.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

14,798,927

 

 

$

15,539,872

 

 

$

18,327,320

 

 

(4.8

)%

 

(19.3

)%

 

Interest-bearing checking

 

 

7,570,427

 

 

 

7,558,908

 

 

 

8,742,580

 

 

0.2

 

 

(13.4

)

 

Money market

 

 

13,585,597

 

 

 

13,108,727

 

 

 

9,293,114

 

 

3.6

 

 

46.2

 

 

Savings

 

 

1,834,393

 

 

 

1,841,467

 

 

 

2,280,562

 

 

(0.4

)

 

(19.6

)

 

Time deposits

 

 

20,771,280

 

 

 

18,043,464

 

 

 

16,093,826

 

 

15.1

 

 

29.1

 

 

Total deposits

 

$

58,560,624

 

 

$

56,092,438

 

 

$

54,737,402

 

 

4.4

%

 

7.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Deposits by type:

 

 

 

 

 

 

 

 

 

 

 

Commercial and business banking

 

$

32,690,771

 

 

$

32,109,643

 

 

$

30,041,135

 

 

1.8

%

 

8.8

%

 

Consumer and private banking

 

 

20,543,473

 

 

 

18,861,092

 

 

 

18,021,116

 

 

8.9

 

 

14.0

 

 

Greater China (2)

 

 

3,282,218

 

 

 

3,172,222

 

 

 

3,008,457

 

 

3.5

 

 

9.1

 

 

Wholesale

 

 

2,044,162

 

 

 

1,949,481

 

 

 

3,666,694

 

 

4.9

 

 

(44.3

)

 

Total deposits

 

$

58,560,624

 

 

$

56,092,438

 

 

$

54,737,402

 

 

4.4

%

 

7.0

%

 

NM - Not meaningful.

(1)

 

Includes $63 million, $71 million and $75 million of net deferred loan fees and net unamortized premiums as of March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

(2)

 

Includes deposits booked at the Bank’s Hong Kong branch and foreign subsidiary, East West Bank (China) Limited.

 

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

 

March 31, 2024

% Change

 

 

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

 

Qtr-o-Qtr

 

Yr-o-Yr

Interest and dividend income

 

$

1,023,617

 

 

$

990,378

 

 

$

835,506

 

 

3.4

%

 

22.5

%

Interest expense

 

 

458,478

 

 

 

415,544

 

 

 

235,645

 

 

10.3

 

 

94.6

 

Net interest income before provision for credit losses

 

 

565,139

 

 

 

574,834

 

 

 

599,861

 

 

(1.7

)

 

(5.8

)

Provision for credit losses

 

 

25,000

 

 

 

37,000

 

 

 

20,000

 

 

(32.4

)

 

25.0

 

Net interest income after provision for credit losses

 

 

540,139

 

 

 

537,834

 

 

 

579,861

 

 

0.4

 

 

(6.9

)

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

Deposit account fees

 

 

24,139

 

 

 

22,996

 

 

 

21,703

 

 

5.0

%

 

11.2

%

 

Lending fees

 

 

22,925

 

 

 

22,077

 

 

 

20,586

 

 

3.8

 

 

11.4

 

 

Foreign exchange income

 

 

12,278

 

 

 

14,236

 

 

 

12,660

 

 

(13.8

)

 

(3.0

)

 

Wealth management fees

 

 

8,592

 

 

 

7,735

 

 

 

6,304

 

 

11.1

 

 

36.3

 

 

Customer derivative revenue

 

 

3,137

 

 

 

6,296

 

 

 

5,046

 

 

(50.2

)

 

(37.8

)

 

Total fee income

 

71,071

 

 

 

73,341

 

 

 

66,299

 

 

(3.1

)

 

7.2

 

 

Mark-to-market and credit valuation adjustments

 

 

613

 

 

 

(7,241

)

 

 

(2,482

)

 

NM

 

 

NM

 

 

Net (losses) gains on sales of loans

 

 

(41

)

 

 

3,675

 

 

 

(22

)

 

NM

 

 

(86.4

)

 

Net gains (losses) on AFS debt securities

 

 

49

 

 

 

3,138

 

 

 

(10,000

)

 

(98.4

)

 

NM

 

 

Other investment income

 

 

2,815

 

 

 

1,673

 

 

 

1,921

 

 

68.3

 

 

46.5

 

 

Other income

 

 

4,481

 

 

 

5,318

 

 

 

4,262

 

 

(15.7

)

 

5.1

 

Total noninterest income

 

 

78,988

 

 

 

79,903

 

 

 

59,978

 

 

(1.1

)%

 

31.7

%

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

 

141,812

 

 

 

130,794

 

 

 

129,654

 

 

8.4

%

 

9.4

%

 

Occupancy and equipment expense

 

 

15,230

 

 

 

15,735

 

 

 

15,587

 

 

(3.2

)

 

(2.3

)

 

Deposit insurance premiums and regulatory assessments

 

 

19,649

 

 

 

78,553

 

 

 

7,910

 

 

(75.0

)

 

148.4

 

 

Deposit account expense

 

 

12,188

 

 

 

11,390

 

 

 

9,609

 

 

7.0

 

 

26.8

 

 

Computer software and data processing expenses

 

 

11,344

 

 

 

11,315

 

 

 

10,707

 

 

0.3

 

 

5.9

 

 

Other operating expense (1)

 

 

33,445

 

 

 

38,130

 

 

 

34,870

 

 

(12.3

)

 

(4.1

)

 

Amortization of tax credit and other investments

 

 

13,207

 

 

 

4,581

 

 

 

10,110

 

 

188.3

 

 

30.6

 

Total noninterest expense

 

 

246,875

 

 

 

290,498

 

 

 

218,447

 

 

(15.0

)%

 

13.0

%

Income before income taxes

 

 

372,252

 

 

 

327,239

 

 

 

421,392

 

 

13.8

 

 

(11.7

)

Income tax expense

 

 

87,177

 

 

 

88,286

 

 

 

98,953

 

 

(1.3

)

 

(11.9

)

Net income

 

$

285,075

 

 

$

238,953

 

 

$

322,439

 

 

19.3

%

 

(11.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share (“EPS”)

 

 

 

 

 

 

 

 

 

 

- Basic

 

$

2.04

 

 

$

1.70

 

 

$

2.28

 

 

20.3

%

 

(10.5

)%

- Diluted

 

$

2.03

 

 

$

1.69

 

 

$

2.27

 

 

20.3

 

 

(10.5

)

Weighted-average number of shares outstanding

 

 

 

 

 

 

 

 

 

 

- Basic

 

 

139,409

 

 

 

140,595

 

 

 

141,112

 

 

(0.8

)%

 

(1.2

)%

- Diluted

 

 

140,261

 

 

 

141,409

 

 

 

141,913

 

 

(0.8

)

 

(1.2

)

 

NM - Not meaningful.

(1)

 

Includes $4 million of repurchase agreements’ extinguishment cost for the three months ended March 31, 2023.

 

EAST WEST BANCORP, INC. AND SUBSIDIARIES

SELECTED AVERAGE BALANCES

($ in thousands)

(unaudited)

Table 4

 

 

 

Three Months Ended

 

March 31, 2024

% Change

 

 

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

 

Qtr-o-Qtr

 

Yr-o-Yr

Loans:

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

C&I

 

$

16,251,622

 

$

15,948,678

 

$

15,400,996

 

1.9

%

 

5.5

%

 

CRE:

 

 

 

 

 

 

 

 

 

 

 

CRE

 

 

14,725,440

 

 

 

14,723,027

 

 

 

13,932,758

 

 

0.0

 

 

5.7

 

 

Multifamily residential

 

 

5,033,143

 

 

 

4,939,119

 

 

 

4,600,094

 

 

1.9

 

 

9.4

 

 

Construction and land

 

 

655,002

 

 

 

752,783

 

 

 

675,047

 

 

(13.0

)

 

(3.0

)

 

Total CRE

 

 

20,413,585

 

 

 

20,414,929

 

 

 

19,207,899

 

 

0.0

 

 

6.3

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage:

 

 

 

 

 

 

 

 

 

 

 

Single-family residential

 

 

13,477,057

 

 

 

13,097,056

 

 

 

11,417,477

 

 

2.9

 

 

18.0

 

 

HELOCs

 

 

1,725,287

 

 

 

1,732,348

 

 

 

2,050,778

 

 

(0.4

)

 

(15.9

)

 

Total residential mortgage

 

 

15,202,344

 

 

 

14,829,404

 

 

 

13,468,255

 

 

2.5

 

 

12.9

 

 

Other consumer

 

 

57,289

 

 

 

59,245

 

 

 

72,687

 

 

(3.3

)

 

(21.2

)

 

Total loans (1)

 

$

51,924,840

 

 

$

51,252,256

 

 

$

48,149,837

 

 

1.3

%

 

7.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets

 

$

68,122,045

 

 

$

65,505,724

 

 

$

61,483,533

 

 

4.0

%

 

10.8

%

Total assets

 

$

71,678,396

 

 

$

69,421,959

 

 

$

65,113,604

 

 

3.3

%

 

10.1

%

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

14,954,953

 

 

$

15,884,525

 

 

$

19,709,980

 

 

(5.9

)%

 

(24.1

)%

 

Interest-bearing checking

 

 

7,695,429

 

 

 

7,608,234

 

 

 

6,493,865

 

 

1.1

 

 

18.5

 

 

Money market

 

 

13,636,210

 

 

 

12,824,121

 

 

 

11,260,715

 

 

6.3

 

 

21.1

 

 

Savings

 

 

1,809,568

 

 

 

1,873,276

 

 

 

2,436,587

 

 

(3.4

)

 

(25.7

)

 

Time deposits

 

 

19,346,243

 

 

 

17,216,367

 

 

 

15,052,762

 

 

12.4

 

 

28.5

 

 

Total deposits

 

$

57,442,403

 

 

$

55,406,523

 

 

$

54,953,909

 

 

3.7

%

 

4.5

%

 

(1)

 

Includes loans HFS.

 

 

 

EAST WEST BANCORP, INC. AND SUBSIDIARIES

QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES

($ in thousands)

(unaudited)

Table 5

 

 

 

 

Three Months Ended

 

 

 

March 31, 2024

 

December 31, 2023

 

 

 

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

 

$

5,861,517

 

$

74,382

 

5.10

%

 

$

4,445,115

 

$

56,250

 

5.02

%

 

Resale agreements

 

 

725,659

 

 

 

6,115

 

 

3.39

%

 

 

785,000

 

 

 

7,232

 

 

3.66

%

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

AFS debt securities

 

 

6,566,368

 

 

 

62,858

 

 

3.85

%

 

 

5,985,361

 

 

 

58,926

 

 

3.91

%

 

HTM debt securities

 

 

2,950,686

 

 

 

12,534

 

 

1.71

%

 

 

2,958,294

 

 

 

12,585

 

 

1.69

%

 

Total debt securities

 

 

9,517,054

 

 

 

75,392

 

 

3.19

%

 

 

8,943,655

 

 

 

71,511

 

 

3.17

%

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

C&I

 

 

16,251,622

 

 

 

325,810

 

 

8.06

%

 

 

15,948,678

 

 

 

321,026

 

 

7.99

%

 

CRE

 

 

20,413,584

 

 

 

324,087

 

 

6.39

%

 

 

20,414,929

 

 

 

327,194

 

 

6.36

%

 

Residential mortgage

 

 

15,202,345

 

 

 

215,674

 

 

5.71

%

 

 

14,829,404

 

 

 

205,371

 

 

5.49

%

 

Other consumer

 

 

57,289

 

 

 

818

 

 

5.74

%

 

 

59,245

 

 

 

786

 

 

5.26

%

 

Total loans (2)

 

 

51,924,840

 

 

 

866,389

 

 

6.71

%

 

 

51,252,256

 

 

 

854,377

 

 

6.61

%

 

FHLB and FRB stock

 

 

92,975

 

 

 

1,339

 

 

5.79

%

 

 

79,698

 

 

 

1,008

 

 

5.02

%

 

Total interest-earning assets

 

$

68,122,045

 

 

$

1,023,617

 

 

6.04

%

 

$

65,505,724

 

 

$

990,378

 

 

6.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

445,767

 

 

 

 

 

 

 

489,055

 

 

 

 

 

 

Allowance for loan losses

 

 

(679,116

)

 

 

 

 

 

 

(650,724

)

 

 

 

 

 

Other assets

 

 

3,789,700

 

 

 

 

 

 

 

4,077,904

 

 

 

 

 

 

Total assets

 

$

71,678,396

 

 

 

 

 

 

$

69,421,959

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking deposits

 

$

7,695,429

 

 

$

53,821

 

 

2.81

%

 

$

7,608,234

 

 

$

52,170

 

 

2.72

%

 

Money market deposits

 

 

13,636,210

 

 

 

134,661

 

 

3.97

%

 

 

12,824,121

 

 

 

123,744

 

 

3.83

%

 

Savings deposits

 

 

1,809,568

 

 

 

4,120

 

 

0.92

%

 

 

1,873,276

 

 

 

3,894

 

 

0.82

%

 

Time deposits

 

 

19,346,243

 

 

 

213,597

 

 

4.44

%

 

 

17,216,367

 

 

 

183,175

 

 

4.22

%

 

Short-term and BTFP borrowings, and federal funds purchased

 

 

3,864,525

 

 

 

42,106

 

 

4.38

%

 

 

4,500,475

 

 

 

49,570

 

 

4.37

%

 

Assets sold under repurchase agreements (“repurchase agreements”)

 

 

2,549

 

 

 

35

 

 

5.52

%

 

 

2,876

 

 

 

41

 

 

5.66

%

 

FHLB advances

 

 

554,946

 

 

 

7,739

 

 

5.61

%

 

 

1

 

 

 

 

 

%

 

Long-term debt and finance lease liabilities

 

 

125,818

 

 

 

2,399

 

 

7.67

%

 

 

153,010

 

 

 

2,950

 

 

7.65

%

 

Total interest-bearing liabilities

 

$

47,035,288

 

 

$

458,478

 

 

3.92

%

 

$

44,178,360

 

 

$

415,544

 

 

3.73

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities and stockholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

14,954,953

 

 

 

 

 

 

 

15,884,525

 

 

 

 

 

 

Accrued expenses and other liabilities

 

 

2,695,597

 

 

 

 

 

 

 

2,663,222

 

 

 

 

 

 

Stockholders’ equity

 

 

6,992,558

 

 

 

 

 

 

 

6,695,852

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

71,678,396

 

 

 

 

 

 

$

69,421,959

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate spread

 

 

 

 

 

2.12

%

 

 

 

 

 

2.27

%

Net interest income and net interest margin

 

 

 

$

565,139

 

 

3.34

%

 

 

 

$

574,834

 

 

3.48

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

 

Annualized.

(2)

 

Includes loans HFS.

 

EAST WEST BANCORP, INC. AND SUBSIDIARIES

QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES

($ in thousands)

(unaudited)

Table 6

 

 

 

Three Months Ended

 

March 31, 2024

 

March 31, 2023

 

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

 

$

5,861,517

 

$

74,382

 

5.10

%

 

$

3,449,626

 

$

35,647

 

4.19

%

 

Resale agreements

 

 

725,659

 

 

 

6,115

 

 

3.39

%

 

 

688,778

 

 

 

4,503

 

 

2.65

%

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

AFS debt securities

 

 

6,566,368

 

 

 

62,858

 

 

3.85

%

 

 

6,108,825

 

 

 

53,197

 

 

3.53

%

 

HTM debt securities

 

 

2,950,686

 

 

 

12,534

 

 

1.71

%

 

 

2,995,677

 

 

 

12,734

 

 

1.72

%

 

Total debt securities

 

 

9,517,054

 

 

 

75,392

 

 

3.19

%

 

 

9,104,502

 

 

 

65,931

 

 

2.94

%

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

C&I

 

 

16,251,622

 

 

 

325,810

 

 

8.06

%

 

 

15,400,996

 

 

 

275,573

 

 

7.26

%

 

CRE

 

 

20,413,584

 

 

 

324,087

 

 

6.39

%

 

 

19,207,899

 

 

 

282,464

 

 

5.96

%

 

Residential mortgage

 

 

15,202,345

 

 

 

215,674

 

 

5.71

%

 

 

13,468,255

 

 

 

169,494

 

 

5.10

%

 

Other consumer

 

 

57,289

 

 

 

818

 

 

5.74

%

 

 

72,687

 

 

 

855

 

 

4.77

%

 

Total loans (2)

 

 

51,924,840

 

 

 

866,389

 

 

6.71

%

 

 

48,149,837

 

 

 

728,386

 

 

6.14

%

 

FHLB and FRB stock

 

 

92,975

 

 

 

1,339

 

 

5.79

%

 

 

90,790

 

 

 

1,039

 

 

4.64

%

 

Total interest-earning assets

 

$

68,122,045

 

 

$

1,023,617

 

 

6.04

%

 

$

61,483,533

 

 

$

835,506

 

 

5.51

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

445,767

 

 

 

 

 

 

 

621,104

 

 

 

 

 

 

Allowance for loan losses

 

 

(679,116

)

 

 

 

 

 

 

(602,754

)

 

 

 

 

 

Other assets

 

 

3,789,700

 

 

 

 

 

 

 

3,611,721

 

 

 

 

 

 

Total assets

 

$

71,678,396

 

 

 

 

 

 

$

65,113,604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking deposits

 

$

7,695,429

 

 

$

53,821

 

 

2.81

%

 

$

6,493,865

 

 

$

23,174

 

 

1.45

%

 

Money market deposits

 

 

13,636,210

 

 

 

134,661

 

 

3.97

%

 

 

11,260,715

 

 

 

76,102

 

 

2.74

%

 

Savings deposits

 

 

1,809,568

 

 

 

4,120

 

 

0.92

%

 

 

2,436,587

 

 

 

3,669

 

 

0.61

%

 

Time deposits

 

 

19,346,243

 

 

 

213,597

 

 

4.44

%

 

 

15,052,762

 

 

 

113,849

 

 

3.07

%

 

Short-term and BTFP borrowings

 

 

3,864,525

 

 

 

42,106

 

 

4.38

%

 

 

811,551

 

 

 

8,825

 

 

4.41

%

 

Repurchase agreements

 

 

2,549

 

 

 

35

 

 

5.52

%

 

 

106,785

 

 

 

1,052

 

 

4.00

%

 

FHLB advances

 

 

554,946

 

 

 

7,739

 

 

5.61

%

 

 

500,000

 

 

 

6,430

 

 

5.22

%

 

Long-term debt and finance lease liabilities

 

 

125,818

 

 

 

2,399

 

 

7.67

%

 

 

152,420

 

 

 

2,544

 

 

6.77

%

 

Total interest-bearing liabilities

 

$

47,035,288

 

 

$

458,478

 

 

3.92

%

 

$

36,814,685

 

 

$

235,645

 

 

2.60

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities and stockholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

14,954,953

 

 

 

 

 

 

 

19,709,980

 

 

 

 

 

 

Accrued expenses and other liabilities

 

 

2,695,597

 

 

 

 

 

 

 

2,405,615

 

 

 

 

 

 

Stockholders’ equity

 

 

6,992,558

 

 

 

 

 

 

 

6,183,324

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

71,678,396

 

 

 

 

 

 

$

65,113,604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate spread

 

 

 

 

 

2.12

%

 

 

 

 

 

2.91

%

Net interest income and net interest margin

 

 

 

$

565,139

 

 

3.34

%

 

 

 

$

599,861

 

 

3.96

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

 

Annualized.

(2)

 

Includes loans HFS.

 

EAST WEST BANCORP, INC. AND SUBSIDIARIES

SELECTED RATIOS

(unaudited)

Table 7

 

 

 

Three Months Ended (1)

 

March 31, 2024

Basis Point Change

 

 

 

March 31,

2024

 

December 31,

2023

 

March 31,

2023

 

Qtr-o-Qtr

 

Yr-o-Yr

 

 

Return on average assets

 

1.60

%

 

1.37

%

 

2.01

%

 

23

 

bps

(41

)

bps

 

Adjusted return on average assets (2)

 

1.64

%

 

1.63

%

 

2.05

%

 

1

 

 

(41

)

 

 

Return on average common equity

 

16.40

%

 

14.16

%

 

21.15

%

 

224

 

 

(475

)

 

 

Adjusted return on average common equity (2)

 

16.81

%

 

16.95

%

 

21.61

%

 

(14

)

 

(480

)

 

 

Return on average TCE (3)

 

17.60

%

 

15.26

%

 

22.94

%

 

234

 

 

(534

)

 

 

Adjusted return on average TCE (3)

 

18.05

%

 

18.26

%

 

23.44

%

 

(21

)

 

(539

)

 

 

Interest rate spread

 

2.12

%

 

2.27

%

 

2.91

%

 

(15

)

 

(79

)

 

 

Net interest margin

 

3.34

%

 

3.48

%

 

3.96

%

 

(14

)

 

(62

)

 

 

Average loan yield

 

6.71

%

 

6.61

%

 

6.14

%

 

10

 

 

57

 

 

 

Yield on average interest-earning assets

 

6.04

%

 

6.00

%

 

5.51

%

 

4

 

 

53

 

 

 

Average cost of interest-bearing deposits

 

3.85

%

 

3.64

%

 

2.49

%

 

21

 

 

136

 

 

 

Average cost of deposits

 

2.84

%

 

2.60

%

 

1.60

%

 

24

 

 

124

 

 

 

Average cost of funds

 

2.97

%

 

2.74

%

 

1.69

%

 

23

 

 

128

 

 

 

Adjusted noninterest expense/average assets (4)

 

1.25

%

 

1.23

%

 

1.27

%

 

2

 

 

(2

)

 

 

Efficiency ratio

 

38.33

%

 

44.37

%

 

33.11

%

 

(604

)

 

522

 

 

 

Adjusted efficiency ratio (4)

 

34.68

%

 

33.07

%

 

30.46

%

 

161

 

bps

422

 

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

 

Annualized except for efficiency ratio and adjusted efficiency ratio.

(2)

 

Adjusted return on average assets and adjusted return on average common equity are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 12.

(3)

 

Return on average TCE and adjusted return on average TCE are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 11.

(4)

 

Adjusted noninterest expense/average assets and adjusted efficiency ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 10.

 

EAST WEST BANCORP, INC. AND SUBSIDIARIES

ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE SHEET CREDIT EXPOSURES

($ in thousands)

(unaudited)

Table 8

 

 

 

 

Three Months Ended March 31, 2024

 

 

 

Commercial

 

Consumer

 

 

 

 

 

C&I

 

Total CRE

 

Total Residential

Mortgage

 

Other Consumer

 

Total

Allowance for loan losses, December 31, 2023

 

 

$

392,685

 

 

$

215,436

 

 

$

58,965

 

$

1,657

 

 

$

668,743

 

(Reversal of) provision for credit losses on loans

(a)

 

 

(500

)

 

 

23,985

 

 

 

801

 

 

 

(131

)

 

 

24,155

 

Gross charge-offs

 

 

 

(20,998

)

 

 

(3,628

)

 

 

 

 

 

(58

)

 

 

(24,684

)

Gross recoveries

 

 

 

1,710

 

 

 

344

 

 

 

53

 

 

 

 

 

 

2,107

 

Total net (charge-offs) recoveries

 

 

 

(19,288

)

 

 

(3,284

)

 

 

53

 

 

 

(58

)

 

 

(22,577

)

Foreign currency translation adjustment

 

 

 

(41

)

 

 

 

 

 

 

 

 

 

 

 

(41

)

Allowance for loan losses, March 31, 2024

 

 

$

372,856

 

 

$

236,137

 

 

$

59,819

 

 

$

1,468

 

 

$

670,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2023

 

 

 

Commercial

 

Consumer

 

 

 

 

 

C&I

 

Total CRE

 

Total Residential

Mortgage

 

Other Consumer

 

Total

Allowance for loan losses, September 30, 2023

 

 

$

383,677

 

 

$

211,418

 

 

$

58,725

 

$

1,703

 

 

$

655,523

 

Provision for credit losses on loans

(a)

 

 

27,732

 

 

 

4,875

 

 

 

233

 

 

 

50

 

 

 

32,890

 

Gross charge-offs

 

 

 

(20,264

)

 

 

(1,213

)

 

 

 

 

 

(96

)

 

 

(21,573

)

Gross recoveries

 

 

 

1,248

 

 

 

356

 

 

 

7

 

 

 

 

 

 

1,611

 

Total net (charge-offs) recoveries

 

 

 

(19,016

)

 

 

(857

)

 

 

7

 

 

 

(96

)

 

 

(19,962

)

Foreign currency translation adjustment

 

 

 

292

 

 

 

 

 

 

 

 

 

 

 

 

292

 

Allowance for loan losses, December 31, 2023

 

 

$

392,685

 

 

$

215,436

 

 

$

58,965

 

 

$

1,657

 

 

$

668,743

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2023

 

 

 

Commercial

 

Consumer

 

 

 

 

 

C&I

 

Total CRE

 

Total Residential

Mortgage

 

Other Consumer

 

Total

Allowance for loan losses, December 31, 2022

 

 

$

371,700

 

 

$

182,346

 

 

$

40,039

 

 

$

1,560

 

 

$

595,645

 

Impact of ASU 2022-02 adoption

 

 

 

5,683

 

 

 

343

 

 

 

2

 

 

 

 

 

 

6,028

 

Allowance for loan losses, January 1, 2023

 

 

$

377,383

 

 

$

182,689

 

 

$

40,041

 

 

$

1,560

 

 

$

601,673

 

(Reversal of) provision for credit losses on loans

(a)

 

 

(678

)

 

 

6,021

 

 

 

13,022

 

 

 

155

 

 

 

18,520

 

Gross charge-offs

 

 

 

(1,900

)

 

 

(6

)

 

 

(91

)

 

 

(40

)

 

 

(2,037

)

Gross recoveries

 

 

 

1,211

 

 

 

211

 

 

 

6

 

 

 

 

 

 

1,428

 

Total net (charge-offs) recoveries

 

 

 

(689

)

 

 

205

 

 

 

(85

)

 

 

(40

)

 

 

(609

)

Foreign currency translation adjustment

 

 

 

309

 

 

 

 

 

 

 

 

 

 

 

 

309

 

Allowance for loan losses, March 31, 2023

 

 

$

376,325

 

 

$

188,915

 

 

$

52,978

 

 

$

1,675

 

 

$

619,893

 

 

 

EAST WEST BANCORP, INC. AND SUBSIDIARIES

ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE-SHEET CREDIT EXPOSURES

($ in thousands)

(unaudited)

Table 8 (continued)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

Unfunded Credit Facilities

 

 

 

 

 

 

 

Allowance for unfunded credit commitments, beginning of period (1)

 

 

$

37,699

 

$

33,589

 

$

26,264

Provision for credit losses on unfunded credit commitments

(b)

 

 

845

 

 

 

4,110

 

 

 

1,480

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

(3

)

Allowance for unfunded credit commitments, end of period (1)

 

 

$

38,544

 

 

$

37,699

 

 

$

27,741

 

 

 

 

 

 

 

 

 

Provision for credit losses

(a)+(b)

 

$

25,000

 

 

$

37,000

 

 

$

20,000

 

 

 

 

 

 

 

 

 

(1)

 

Included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheet.

 

 

EAST WEST BANCORP, INC. AND SUBSIDIARIES

 

CRITICIZED LOANS, NONPERFORMING ASSETS AND CREDIT QUALITY RATIOS

 

($ in thousands)

 

(unaudited)

Table 9

 

Criticized Loans

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

Special mention loans

 

$

543,573

 

 

$

404,241

 

 

$

461,356

 

Classified loans

 

 

651,485

 

 

 

573,969

 

 

 

452,715

 

Total criticized loans (1)

 

$

1,195,058

 

 

$

978,210

 

 

$

914,071

 

 

 

 

Nonperforming Assets

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

Nonaccrual loans:

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

C&I

 

$

48,962

 

 

$

37,036

 

 

$

43,747

 

 

Total CRE

 

 

51,888

 

 

 

27,918

 

 

 

19,427

 

Consumer:

 

 

 

 

 

 

 

Total residential mortgage

 

 

47,167

 

 

 

37,788

 

 

 

29,585

 

 

Other consumer

 

 

162

 

 

 

132

 

 

 

366

 

 

Total nonaccrual loans

 

 

148,179

 

 

 

102,874

 

 

 

93,125

 

Other real estate owned, net

 

 

16,692

 

 

 

11,141

 

 

 

270

 

 

Total nonperforming assets

 

$

164,871

 

 

$

114,015

 

 

$

93,395

 

 

 

 

Credit Quality Ratios

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

Annualized quarterly net charge-offs to average loans HFI

 

 

0.17

%

 

 

0.15

%

 

 

0.01

%

Special mention loans to loans HFI

 

 

1.05

%

 

 

0.77

%

 

 

0.94

%

Classified loans to loans HFI

 

 

1.25

%

 

 

1.10

%

 

 

0.93

%

Criticized loans to loans HFI

 

 

2.30

%

 

 

1.87

%

 

 

1.87

%

Nonperforming assets to total assets

 

 

0.23

%

 

 

0.16

%

 

 

0.14

%

Nonaccrual loans to loans HFI

 

 

0.29

%

 

 

0.20

%

 

 

0.19

%

Allowance for loan losses to loans HFI

 

 

1.29

%

 

 

1.28

%

 

 

1.27

%

 

(1)

 

Excludes loans HFS.

 

EAST WEST BANCORP, INC. AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

($ in thousands)

(unaudited)

Table 10
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Adjusted efficiency ratio represents adjusted noninterest expense divided by adjusted revenue. Adjusted pre-tax, pre-provision income represents total adjusted revenue less adjusted noninterest expense. Adjusted revenue excludes the net gain/loss related to an AFS debt security that was written-off in the first quarter of 2023 and subsequently sold during the fourth quarter of 2023. Adjusted noninterest expense excludes the amortization of tax credit and other investments, the amortization of core deposit intangibles, the FDIC special assessment charge (included in Deposit insurance premiums and regulatory assessments on the Consolidated Statement of Income) and the repurchase agreements’ extinguishment cost (where applicable). Management believes that the measures and ratios presented below provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods.

 

 

 

 

 

Three Months Ended

 

 

 

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

Net interest income before provision for credit losses

 

(a)

 

$

565,139

 

 

$

574,834

 

 

$

599,861

 

Total noninterest income

 

 

 

 

78,988

 

 

 

79,903

 

 

 

59,978

 

Total revenue

 

(b)

 

$

644,127

 

 

$

654,737

 

 

$

659,839

 

Noninterest income

 

 

 

 

78,988

 

 

 

79,903

 

 

 

59,978

 

Less/add:

Net (gains)/losses on AFS debt securities

 

 

 

 

 

 

 

(3,138

)

 

 

10,000

 

Adjusted noninterest income

 

(c)

 

 

78,988

 

 

 

76,765

 

 

 

69,978

 

Adjusted revenue

 

(a)+(c) = (d)

 

$

644,127

 

 

$

651,599

 

 

$

669,839

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

 

(e)

 

$

246,875

 

 

$

290,498

 

 

$

218,447

 

Less:

Amortization of tax credit and other investments

 

 

 

 

(13,207

)

 

 

(4,581

)

 

 

(10,110

)

Amortization of core deposit intangibles

 

 

 

 

 

 

 

(441

)

 

 

(441

)

FDIC special assessment charge

 

 

 

 

(10,305

)

 

 

(69,986

)

 

 

 

Repurchase agreements’ extinguishment cost

 

 

 

 

 

 

 

 

 

 

(3,872

)

Adjusted noninterest expense

 

(f)

 

$

223,363

 

 

$

215,490

 

 

$

204,024

 

Efficiency ratio

 

(e)/(b)

 

 

38.33

%

 

 

44.37

%

 

 

33.11

%

Adjusted efficiency ratio

 

(f)/(d)

 

 

34.68

%

 

 

33.07

%

 

 

30.46

%

Pre-tax, pre-provision income

 

(b)-(e) = (g)

 

$

397,252

 

 

$

364,239

 

 

$

441,392

 

Adjusted pre-tax, pre-provision income

 

(d)-(f) = (h)

 

$

420,764

 

 

$

436,109

 

 

$

465,815

 

Average total assets

 

(i)

 

$

71,678,396

 

 

$

69,421,959

 

 

$

65,113,604

 

Adjusted noninterest expense/average assets (1)

 

(f)/(i)

 

 

1.25

%

 

 

1.23

%

 

 

1.27

%

 

 

 

 

 

 

 

 

(1)

 

Annualized.
 

EAST WEST BANCORP, INC. AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

($ in thousands)

(unaudited)

Table 11
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible book value, tangible book value per share and TCE ratio are non-GAAP financial measures. Tangible book value and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

Stockholders’ equity

 

(a)

 

$

7,023,232

 

 

$

6,950,834

 

 

$

6,309,331

 

Less:

Goodwill

 

 

 

 

(465,697

)

 

 

(465,697

)

 

 

(465,697

)

Other intangible assets (1)

 

 

 

 

(6,234

)

 

 

(6,602

)

 

 

(7,201

)

Tangible book value

 

(b)

 

$

6,551,301

 

 

$

6,478,535

 

 

$

5,836,433

 

 

 

 

 

 

 

 

 

Number of common shares at period-end

 

(c)

 

 

139,121

 

 

 

140,027

 

 

 

141,396

 

Book value per share

 

(a)/(c)

 

$

50.48

 

 

$

49.64

 

 

$

44.62

 

Tangible book value per share

 

(b)/(c)

 

$

47.09

 

 

$

46.27

 

 

$

41.28

 

 

 

 

 

 

 

 

 

Total assets

 

(d)

 

$

70,875,670

 

 

$

69,612,884

 

 

$

67,244,898

 

Less:

Goodwill

 

 

 

 

(465,697

)

 

 

(465,697

)

 

 

(465,697

)

Other intangible assets (1)

 

 

 

 

(6,234

)

 

 

(6,602

)

 

 

(7,201

)

Tangible assets

 

(e)

 

$

70,403,739

 

 

$

69,140,585

 

 

$

66,772,000

 

Total stockholders’ equity to assets ratio

 

(a)/(d)

 

 

9.91

%

 

 

9.98

%

 

 

9.38

%

TCE ratio

 

(b)/(e)

 

 

9.31

%

 

 

9.37

%

 

 

8.74

%

 
Return on average TCE represents tangible net income divided by average tangible book value. Adjusted return on average TCE represents adjusted tangible net income divided by average tangible book value. Tangible net income excludes the after-tax impacts of the amortization of core deposit intangibles and mortgage servicing assets. Adjusted tangible net income excludes the after-tax impacts of the tangible net income adjustments, the FDIC special assessment charge (included in Deposit insurance premiums and regulatory assessments on the Consolidated Statement of Income), and the net gain/loss related to an AFS debt security that was written-off in the first quarter of 2023 and subsequently sold during the fourth quarter of 2023. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

Net income

 

(e)

 

$

285,075

 

 

$

238,953

 

 

$

322,439

 

Add:

Amortization of core deposit intangibles

 

 

 

 

 

 

 

441

 

 

 

441

 

Amortization of mortgage servicing assets

 

 

 

 

308

 

 

 

302

 

 

 

356

 

Tax effect of amortization adjustments (2)

 

 

 

 

(91

)

 

 

(220

)

��

 

(233

)

Tangible net income

 

(f)

 

$

285,292

 

 

$

239,476

 

 

$

323,003

 

Add:

FDIC special assessment charge

 

 

 

 

10,305

 

 

 

69,986

 

 

 

 

Less/add:

Net (gains)/losses on AFS debt securities

 

 

 

 

 

 

 

(3,138

)

 

 

10,000

 

Tax effect of adjustments (2)

 

 

 

 

(3,046

)

 

 

(19,760

)

 

 

(2,929

)

Adjusted tangible net income

 

(g)

 

$

292,551

 

 

$

286,564

 

 

$

330,074

 

 

 

 

 

 

 

 

 

 

Average stockholders’ equity

 

(h)

 

$

6,992,558

 

 

$

6,695,852

 

 

$

6,183,324

 

Less:

Average goodwill

 

 

 

 

(465,697

)

 

 

(465,697

)

 

 

(465,697

)

Average other intangible assets (1)

 

 

 

 

(6,473

)

 

 

(5,434

)

 

 

(7,696

)

Average tangible book value

 

(i)

 

$

6,520,388

 

 

$

6,224,721

 

 

$

5,709,931

 

Return on average common equity (3)

 

(e)/(h)

 

 

16.40

%

 

 

14.16

%

 

 

21.15

%

Return on average TCE (3)

 

(f)/(i)

 

 

17.60

%

 

 

15.26

%

 

 

22.94

%

Adjusted return on average TCE (3)

 

(g)/(i)

 

 

18.05

%

 

 

18.26

%

 

 

23.44

%

 

(1)

 

Includes core deposit intangibles and mortgage servicing assets.

(2)

 

Applied statutory tax rate of 29.56% for the three months ended March 31, 2024 and December 31, 2023. Applied statutory tax rate of 29.29% for the three months ended March 31, 2023.

(3)

 

Annualized.

 

EAST WEST BANCORP, INC. AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

($ and shares in thousands, except for per share data)

(unaudited)

Table 12
During the first quarter of 2024 and fourth quarter of 2023, the Company recorded $10 million and $70 million, respectively, in pre-tax FDIC special assessment charges (included in Deposit insurance premiums and regulatory assessments on the Consolidated Statement of Income). During the fourth quarter of 2023, the Company recognized a $3 million pre-tax gain on sale for an AFS debt security that was previously written-off. During the first quarter of 2023, the Company recorded a $10 million pre-tax impairment write-off of an AFS debt security.

 

 

 

 

 

Three Months Ended

 

 

 

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

Net income

 

(a)

 

$

285,075

 

 

$

238,953

 

 

$

322,439

 

Add:

FDIC special assessment charge

 

 

 

 

10,305

 

 

 

69,986

 

 

 

 

Less/add:

Net (gains)/losses on AFS debt securities

 

 

 

 

 

 

 

(3,138

)

 

 

10,000

 

Tax effect of adjustments (1)

 

 

 

 

(3,046

)

 

 

(19,760

)

 

 

(2,929

)

Adjusted net income

 

(b)

 

$

292,334

 

 

$

286,041

 

 

$

329,510

 

 

 

 

 

 

 

 

 

 

Diluted weighted-average number of shares outstanding

 

 

 

 

140,261

 

 

 

141,409

 

 

 

141,913

 

Diluted EPS

 

 

 

$

2.03

 

 

$

1.69

 

 

$

2.27

 

Add:

FDIC special assessment charge

 

 

 

 

0.05

 

 

 

0.35

 

 

 

 

Less/add:

Net (gains)/losses on AFS debt securities

 

 

 

 

 

 

 

(0.02

)

 

 

0.05

 

Adjusted diluted EPS

 

 

 

$

2.08

 

 

$

2.02

 

 

$

2.32

 

 

 

 

 

 

 

 

 

 

Average total assets

 

(c)

 

$

71,678,396

 

 

$

69,421,959

 

 

$

65,113,60