East West Bancorp, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>East West Bancorp, Inc. has filed its quarterly report (10-Q) for the period ending March 31, 2024.</b>

AI Summary

EAST WEST BANCORP INC (EWBC) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. East West Bancorp, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's principal executive offices are located at 135 N. Los Robles Ave., 7th Floor, Pasadena, CA 91101. The company's IRS number is 954703316. The state of incorporation is Delaware.

Why It Matters

For investors and stakeholders tracking EAST WEST BANCORP INC, this filing contains several important signals. This 10-Q filing provides investors with an update on the company's financial performance and position during the first quarter of 2024. Key financial data and disclosures within this report will be crucial for understanding the bank's operational health and strategic direction.

Risk Assessment

Risk Level: low — EAST WEST BANCORP INC shows low risk based on this filing. The filing is a standard 10-Q, which is a routine quarterly report and does not contain unusual or high-risk information.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis in the 10-Q to assess East West Bancorp's Q1 2024 performance and outlook.

Key Numbers

• 2024-03-31 — Period End Date (Conformed Period of Report)
• 2024-05-09 — Filing Date (Filed as of Date)
• 6022 — SIC Code (Standard Industrial Classification)
• 954703316 — IRS Number (IRS Number)
• DE — State of Incorporation (State of Incorporation)

Key Players & Entities

• EAST WEST BANCORP INC (company) — Filer name
• 0001069157-24-000046 (other) — Accession Number
• 20240331 (date) — Conformed Period of Report
• 20240509 (date) — Filed as of Date
• 6022 (other) — Standard Industrial Classification
• 954703316 (other) — IRS Number
• DE (other) — State of Incorporation
• 135 N. LOS ROBLES AVE. 7TH FLOOR (other) — Business Address Street 1

FAQ

Industry Context

East West Bancorp operates within the commercial banking sector, focusing on serving businesses and individuals, particularly within the Asian-American community.

Regulatory Implications

As a publicly traded bank, East West Bancorp is subject to regulations from the Securities and Exchange Commission (SEC) and banking authorities.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and balance sheet changes.
2. Review management's discussion and analysis for insights into business performance and outlook.
3. Check for any new risk factors or legal proceedings disclosed in the filing.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-09: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, following the 10-K annual report.

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share EWBC The Nasdaq Global Select

Filing Documents

• ewbc-20240331.htm (10-Q) — 5864KB
• ewbc10110q3312024.htm (EX-10.1) — 5KB
• ewbc10210q3312024.htm (EX-10.2) — 5KB
• ewbc31110q3312024.htm (EX-31.1) — 12KB
• ewbc31210q3312024.htm (EX-31.2) — 12KB
• ewbc32110q3312024.htm (EX-32.1) — 6KB
• ewbc32210q3312024.htm (EX-32.2) — 6KB
• ewbc-20240331_g1.jpg (GRAPHIC) — 51KB
• ewbc-20240331_g2.jpg (GRAPHIC) — 43KB
• ewbc-20240331_g3.jpg (GRAPHIC) — 49KB
• ewbc-20240331_g4.jpg (GRAPHIC) — 36KB
• ewbc-20240331_g5.jpg (GRAPHIC) — 43KB
• ewbc-20240331_g6.jpg (GRAPHIC) — 30KB
• 0001069157-24-000046.txt (&nbsp;) — 27948KB
• ewbc-20240331.xsd (EX-101.SCH) — 95KB
• ewbc-20240331_cal.xml (EX-101.CAL) — 163KB
• ewbc-20240331_def.xml (EX-101.DEF) — 685KB
• ewbc-20240331_lab.xml (EX-101.LAB) — 1135KB
• ewbc-20240331_pre.xml (EX-101.PRE) — 980KB
• ewbc-20240331_htm.xml (XML) — 7381KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION 5 Item 1. Consolidated Financial Statements 5 Consolidated Balance Sheet (Unaudited) 5 Consolidated Statement of Income (Unaudited) 6 Consolidated Statement of Comprehensive Income (Loss) (Unaudited) 7 Consolidated Statement of Changes in Stockholders' Equity (Unaudited) 8 Consolidated Statement of Cash Flows (Unaudited) 9

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 11 1 — Basis of Presentation 11 2 — Current Accounting Developments and Summary of Significant Accounting Policies 11 3 — Fair Value Measurement and Fair Value of Financial Instruments 12 4 — Securities Purchased under Resale Agreements 22 5 — Securities 23 6 — Derivatives 29 7 — Loans Receivable and Allowance for Credit Losses 36 8 — Affordable Housing Partnership, Tax Credit and Community Reinvestment Act Investments , Net 49 9 — Goodwill 51 10 — Short-Term Borrowings and Long-Term Debt 51 1 1 — Commitments and Contingencies 51 1 2 — Stock Compensation Plans 53 1 3 — Stockholders' Equity and Earnings Per Share 54 1 4 — Accumulated Other Comprehensive Income (Loss) 55 1 5 — Business Segments 56 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 58 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 94 Item 4.

Controls and Procedures

Controls and Procedures 94

— OTHER INFORMATION

PART II — OTHER INFORMATION 95 Item 1.

Legal Proceedings

Legal Proceedings 95 Item 1A.

Risk Factors

Risk Factors 95 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 96 Item 5. Other Information 96 Item 6. Exhibits 97 GLOSSARY OF ACRONYMS 98 SIGNATURE 99 2

Forward-Looking Statements

Forward-Looking Statements Certain matters discussed in this Quarterly Report on Form 10-Q (this "Form 10-Q") 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 fac

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS EAST WEST BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ($ in thousands, except shares) (Unaudited) March 31, 2024 December 31, 2023 ASSETS Cash and due from banks $ 382,484 $ 444,793 Interest-bearing cash with banks 3,828,317 4,170,191 Cash and cash equivalents 4,210,801 4,614,984 Interest-bearing deposits with banks 24,593 10,498 Securities purchased under resale agreements ("resale agreements") 485,000 785,000 Securities: Available-for-sale ("AFS") debt securities, at fair value (amortized cost of $ 9,131,953 and $ 6,916,491 ) 8,400,468 6,188,337 Held-to-maturity ("HTM") debt securities, at amortized cost (fair value of $ 2,414,478 and $ 2,453,971 ) 2,948,642 2,956,040 Loans held-for-sale 13,280 116 Loans held-for-investment (net of allowance for loan losses of $ 670,280 and $ 668,743 ) 51,322,224 51,542,039 Affordable housing partnership, tax credit and Community Reinvestment Act ("CRA") investments, net 933,187 905,036 Premises and equipment (net of accumulated depreciation of $ 159,760 and $ 157,622 ) 83,989 86,370 Goodwill 465,697 465,697 Operating lease right-of-use assets 87,535 94,024 Other assets 1,900,254 1,964,743 TOTAL $ 70,875,670 $ 69,612,884 LIABILITIES Deposits: Noninterest-bearing $ 14,798,927 $ 15,539,872 Interest-bearing 43,761,697 40,552,566 Total deposits 58,560,624 56,092,438 Short-term borrowings 19,173 — Bank Term Funding Program ("BTFP") borrowings — 4,500,000 Federal Home Loan Bank ("FHLB") advances 3,500,000 — Long-term debt and finance lease liabilities 36,428 153,011 Operating lease liabilities 95,643 102,353 Accrued expenses and other liabilities 1,640,570 1,814,248 Total liabilities 63,852,438 62,662,050 COMMITMENTS AND CONTINGENCIES (Note 11) STOCKHOLDERS' EQUITY Common stock, $ 0.001 par value, 200,000,000 shares authorized; 169,835,469 and 169,372,230 shares issued 170 169 Additional paid-in capital 1,993,806 1,980,818 Reta

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1 — Basis of Presentation East West Bancorp, Inc. is a registered bank holding company that offers a full range of banking services to individuals and businesses through its subsidiary bank, East West Bank and its subsidiaries ("East West Bank" or the "Bank"). The unaudited interim Consolidated Financial Statements in this Form 10-Q include the accounts of East West, East West Bank and East West's subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation. As of March 31, 2024, East West also has one wholly-owned subsidiary that is a statutory business trust (the "Trust"). In accordance with FASB Accounting Standards Codification ("ASC") Topic 810, Consolidation , the Trust is not included on the Consolidated Financial Statements. The unaudited interim Consolidated Financial Statements are presented in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), applicable guidelines prescribed by regulatory authorities and general practices in the banking industry. While the unaudited interim Consolidated Financial Statements reflect all adjustments that, in the opinion of management, are necessary for fair presentation, they primarily serve to update the most recently filed annual report on Form 10-K, and may not include all the information and notes necessary to constitute a complete set of financial statements. Accordingly, they should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company's 2023 Form 10-K. The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Financial Statements, income and expenses during the reporting periods, and the related disclosures. Although our estimates consider current conditions and ho

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