Profile: East West Bancorp Inc (EWBC.O)
6 Dec 2013
East West Bancorp, Inc. (East West), incorporated on August 26, 1998, is a bank holding company. East West's principal business is to serve as a holding company for East West Bank (the Bank) and other banking or banking-related subsidiaries. In addition to the Bank, the Company has 8 other subsidiaries, namely East West Insurance Services, East West Capital Statutory Trust III, East West Capital Trust IV, East West Capital Trust V, East West Capital Trust VI, East West Capital Trust VII, East West Capital Trust VIII, and East West Capital Trust IX. At December 31, 2012, the Bank has four wholly owned subsidiaries. E-W Services, Inc. holds property used by the Bank in its operations. The secondary subsidiary, East-West Investments, Inc., primarily acts as a trustee in connection with real estate secured loans. The remaining subsidiaries are East West Bank (China) Limited and East West Securities Investment Consulting Co., Ltd. (Taiwan). As of December 31, 2012, the Company had $14.82 billion in net consolidated loans, and $18.31 billion in total consolidated deposits.
The Company operates in 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, which includes commercial and industrial, and commercial real estate relationships, generates these loans through the efforts of the commercial lending offices located in the Bank’s production offices in California, New York, Texas, and the New England region. The Commercial Banking segment also offers a range of international finance and trade services and products. The remaining centralized functions, including the former Treasury segment and eliminations of intersegment amounts have been aggregated and included in Other segment.
As of December 31, 2012, through the Company’s network of 119 branches in the United States, China and Hong Kong, the Bank provides a range of personal and commercial banking services to small- and medium-sized businesses, business executives, professionals, and other individuals. The Bank offers multilingual services to its customers in English, Cantonese, Mandarin, Vietnamese, and Spanish. The Bank also offers a range of deposit products, which includes 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 offers a range of products designed to meet the credit needs of its borrowers. The Bank’s lending activities consist of residential single-family loans, residential multifamily loans, income producing commercial real estate loans, land loans, construction loans, commercial business loans, trade finance loans, and student and other consumer loans. The residential loan segment includes both single-family and multifamily loans. As of December 31, 2012, $3.09 billion of the loan portfolio was residential real estate properties.
The Bank offers both fixed and adjustable rate (ARM) first mortgage loans secured by one-to-four unit residential properties located in its primary lending areas. During the year ended December 31, 2012, the Bank originated $735.3 million. The Bank also offers both fixed and ARM residential multifamily loan programs. During 2012, the Bank originated $128.4 million in multifamily residential loans. The Bank primarily offers ARM multifamily loan programs that have six-month, three-year, or five-year initial fixed periods.
The commercial real estate loan segment includes income producing real estate loans, construction loans and land loans. As of December 31, 2012, commercial real estate loans accounted for $3.89 billion or 33% of its non-covered loan portfolio.
The commercial and industrial loan segment includes commercial business and trade finance loans. The Company finances small and middle-market businesses in a range of industries throughout California. Included in commercial business loans are loans for working capital, accounts receivable lines, inventory lines, small business administration loans and lease financing. Included in its trade finance loans are a range of 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. As of December 31, 2012, the commercial and industrial loans segment accounted for a total of $4.23 billion or 35% of its loan portfolio.
The consumer loans segment includes student loans and other consumer loans. The other consumer loan portfolio is consisted of home equity lines of credit and auto loans. As of December 31, 2012, loans held for sale are comprised of the student loans segment. As of December 31, 2012, $281.5 million of loans were held in its overseas offices, including its Hong Kong branch and its subsidiary bank in China.
The Company maintains an investment portfolio with a mix of fixed-rate and adjustable-rate securities. The Bank’s investment securities portfolio consists of United States Treasury securities, United States Government agency securities, United States Government sponsored enterprise debt securities, United States Government sponsored enterprise and other mortgage-backed securities, municipal securities, and corporate debt securities. Short-term investments include interest-bearing deposits in other banks and other short-term investments with original maturities of greater than 90 days and less than one year.
Sources of Funds
East West offers a range of deposit account products to both consumer and commercial customers. As of December 31, 2012, the Bank’s total deposit was amounted to $18.31 billion. The Bank utilizes a combination of short-term and long-term borrowings to manage its liquidity position. As of December 31, 2012, Federal Home Loan Bank (FHLB) advances were $313 million. In addition to FHLB advances, it also utilizes securities sold under repurchase agreements (repurchase agreements) to manage its liquidity position. As of December 31, 2012, repurchase agreements totaled $995 million.
East West Bancorp Inc
7th Floor, 135 N Los Robles Ave.
PASADENA CA 91101