Profile: East West Bancorp Inc (EWBC.O)
East West Bancorp, Inc. (East West), incorporated on August 26, 1998, is a bank holding company. The Company's principal business is to serve as a holding company for East West Bank (the Bank) and other banking or banking-related subsidiaries. The Bank operates through three segments: Retail Banking, Commercial Banking and Other. The Retail Banking segment focuses primarily on retail operations through the Bank's branch network. The Commercial Banking segment primarily generates commercial and industrial loans (C&I) and commercial real estate (CRE) loans through the domestic commercial lending offices located in California, New York, Texas, Washington, Massachusetts, Nevada and Georgia, and through the foreign commercial lending offices located in China and Hong Kong. Furthermore, the Commercial Banking segment also offers international finance and trade services and products. The remaining centralized functions, including the treasury operations of the Company are included in the Other segment.
The Bank offers multilingual services to its customers in English, Cantonese, Mandarin, Vietnamese and Spanish. The Bank also offers deposit products, which include the traditional range of personal and business checking and savings accounts, time deposits and individual retirement accounts, travelers' checks, safe deposit boxes, and MasterCard and Visa merchant deposit services. The Bank's lending activities include commercial and residential real estate, construction, trade finance, and commercial business, including accounts receivable, small business administration (SBA), inventory and working capital loans. The Bank provides commercial business loans to small and medium-sized businesses.
The Bank is also focused on providing financing to clients needing a financial bridge that facilitates their business transactions between the United States and Greater China. In addition to the Bank, the Company has approximately six other subsidiaries established as statutory business trusts and one subsidiary that provides business and consumer insurance services. The Trusts were set up for the purpose of issuing junior subordinated debt to third-party investors. The Bank has subsidiaries include E-W Services, Inc., which is a bank that holds property used by the Bank in its operations; East-West Investments, Inc., which acts as a trustee in connection with real estate secured loans, and East West Bank (China) Limited.
The Company offers a range of products designed to meet the credit needs of its borrowers. The Company's lending activities consist of income producing CRE loans, including construction loans and land loans; C&I loans, including commercial business and trade finance; consumer loans, including student loans and other consumer loans, and residential loans, including single-family loans and multifamily residential loans. The Bank's total net loans amounted to approximately $23.41 billion.
The Company also offers international trade services and products, including letters of credit, revolving lines of credit, import loans, bankers' acceptances, working capital lines, domestic purchase financing and pre-export financing. The consumer loans segment includes home equity lines of credit (HELOCs), auto loans, and insurance premium financing loans.
Income from available-for-sale investing activities provides a portion of the Company's total income. The Company's available-for-sale investment securities are liquid in nature and available to meet funding needs that arise during the normal course of business. The Company aims to maintain an investment portfolio with an appropriate mix of fixed-rate and adjustable-rate securities with relatively short maturities to minimize overall interest rate risk. The Company's investment securities portfolio primarily consists of the United States Treasury securities, the United States Government agency securities, the United States government sponsored enterprise debt securities, the United States government sponsored enterprise and other mortgage-backed securities, municipal securities, corporate debt securities and other securities. Total investment securities available-for-sale amounted to approximately $3.77 billion.
Sources of Funds
East West's principal source of funds is dividends that may be paid by its subsidiaries. The Company's other sources of funds include proceeds from the issuance of its common stock in connection with stock option and employee stock purchase plans. The Company offers deposit account products, including non-interest bearing demand deposits, money market, interest-bearing checking and time deposits, to both consumer and commercial customers. The Company's total consolidated deposits amounted to approximately $27.48 billion. East West utilizes a combination of short-term and long-term borrowings to manage its liquidity position. FHLB advances amounted to approximately $1.02 billion. Long-term debt includes junior subordinated debt and a term loan. The Company also utilizes securities sold under repurchase agreements to manage its liquidity position.
East West Bancorp Inc
135 N Los Robles Ave Fl 7
PASADENA CA 91101-4525