Form 8-K EAST WEST BANCORP INC For: Jan 27

January 27, 2022 9:53 AM EST

News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.

Exhibit 99.1
ewbclogoa13a.jpg
East West Bancorp, Inc.
135 N. Los Robles Ave., 7th Fl.
Pasadena, CA 91101
Tel. 626.768.6000
NEWS RELEASE
FOR INVESTOR INQUIRIES, CONTACT:
Irene Oh
Julianna Balicka
Chief Financial Officer
Director of Investor Relations and Corporate Finance
T: (626) 768-6360
T: (626) 768-6985
E: irene.oh@eastwestbank.comE: julianna.balicka@eastwestbank.com


EAST WEST BANCORP REPORTS RECORD NET INCOME FOR 2021
OF $873 MILLION AND DILUTED EARNINGS PER SHARE OF $6.10,
BOTH UP BY 54% FROM THE PRIOR YEAR; INCREASES DIVIDEND BY 21%


Pasadena, California – January 27, 2022 – East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, today reported its financial results for the full year and fourth quarter of 2021. For the full year 2021, net income was $873.0 million, or $6.10 per diluted share. For the fourth quarter of 2021, net income was $217.8 million, or $1.52 per diluted share.

“East West achieved record earnings in 2021. Our record total revenue of $1.8 billion grew by 13% year-over-year and our record net income of $873 million grew by 54%,” stated Dominic Ng, Chairman and Chief Executive Officer of East West. “We delivered an attractive return on assets of 1.5% and a return on tangible equity1 of 17.2% in 2021. Our outstanding financial performance reflected robust net interest income and fee income growth, industry-leading efficiency, and substantially improved asset quality. Year-over-year, nonperforming assets decreased by 56% and criticized loans declined by 32%.”

“Total loans reached a record $41.7 billion as of December 31, 2021. Loans grew by $4.3 billion or 12% year-over-year, excluding the impact of the Paycheck Protection Program. Total deposits grew to $53.4 billion as of December 31, 2021, an increase of $8.5 billion or 19% year-over-year, driven by strong growth in noninterest-bearing demand deposits. Demand deposits now make up 43% of our deposits, up from 36% a year ago.”

“We wish to thank our team of more than 3,000 associates who work tirelessly to support our customers in their banking needs. Our ability to deliver strong financial performance year in, year out is a direct result of the hard work and dedication of our associates and their commitment to serve our customers with excellence,” continued Ng.

“We are entering 2022 from a position of strength and are pleased to announce a 21% increase in our common stock dividend. We expect to deliver yet another year of outstanding profitability for our shareholders, supported by solid loan and deposit growth, healthy capital levels, and the asset sensitive nature of our balance sheet in a rising interest rate environment,” concluded Ng.






















1 See reconciliation of GAAP to non-GAAP financial measures in Table 13.
1


FINANCIAL HIGHLIGHTS

Twelve Months EndedYear-over-Year Change
($ in millions)December 31, 2021$%
Total Loans (incl. PPP)$41,694$3,3029%
Total Loans (excl. PPP)41,1604,33612
Total Deposits53,3518,48819
Total Revenue$1,817$20513%
Net Income87330554


BALANCE SHEET

Total Assets Total assets reached $60.9 billion as of December 31, 2021, compared with $61.0 billion as of September 30, 2021. Year-over-year, total assets grew $8.7 billion or 17% from $52.2 billion as of December 31, 2020.

Fourth quarter 2021 average interest-earning assets of $58.9 billion grew by $704.6 million, or 5% linked quarter annualized, from $58.2 billion in the third quarter of 2021. The quarter-over-quarter growth in average interest-earning assets mainly consisted of a $1.1 billion increase in average available-for-sale (“AFS”) debt securities and a $572.4 million increase in average loans, partially offset by a $986.0 million decrease in average interest-bearing cash and deposits with banks. Excluding Paycheck Protection Program (“PPP”) loans, average loans grew by $1.0 billion, or 10% linked quarter annualized.

Record Loans – Total loans reached $41.7 billion as of December 31, 2021, up by $1.2 billion, or 12% annualized, from $40.5 billion as of September 30, 2021. Excluding PPP loans, total loans grew by $1.5 billion, or 15% linked quarter annualized, with growth well diversified throughout our major loan categories of commercial real estate (“CRE”), commercial and industrial (“C&I”), and residential mortgage. Year-over-year, total loans grew 9% from $38.4 billion as of December 31, 2020. Excluding PPP loans, total loans grew $4.3 billion or 12% year-over-year. PPP loans totaled $534.2 million as of December 31, 2021.

Fourth quarter 2021 average loans of $40.5 billion grew by $572.4 million, or 6% linked quarter annualized. Excluding PPP loans, average loans grew by $1.0 billion, or 10% annualized, from the third quarter of 2021. The strongest growth was from average C&I loans (excluding PPP), which increased 16% linked quarter annualized. Average total CRE loans and average residential mortgage loans both increased 8% linked quarter annualized.

Total Deposits – Total deposits were $53.4 billion as of December 31, 2021, essentially unchanged from $53.4 billion as of September 30, 2021, and up $8.5 billion or 19% from $44.9 billion as of December 31, 2020. Noninterest-bearing demand deposits totaled $22.8 billion as of December 31, 2021, down by $330.0 million, or 6% annualized, from $23.2 billion as of September 30, 2021, and up by $6.5 billion, or 40%, from $16.3 billion as of December 31, 2020. Noninterest-bearing demand deposits made up 43% of total deposits as of both December 31, 2021 and September 30, 2021, up from 36% as of December 31, 2020.

Fourth quarter 2021 average deposits of $54.3 billion grew by $819.6 million, or 6% linked quarter annualized. Growth in the fourth quarter average deposits was led by noninterest-bearing demand deposits, which increased by $850.0 million, or 15% linked quarter annualized. This was followed by 10% annualized growth in money market deposits, partially offset by decreases in time and interest-bearing checking accounts.

Strong Capital Levels – As of December 31, 2021, stockholders’ equity was $5.8 billion, or $41.13 per common share, and tangible equity2 per common share was $37.79. Tangible equity per common share increased by 3% quarter-over-quarter and increased by 12% year-over-year. As of December 31, 2021, the tangible equity to tangible assets ratio2 was 8.88%, the common equity tier 1 (“CET1”) capital ratio was 12.8%, and the total risk-based capital ratio was 14.1%.







2 See reconciliation of GAAP to non-GAAP financial measures in Table 13.
2


Dividend Increase – The first quarter 2022 common stock dividend was increased by 21%, or seven cents per share. The new quarterly dividend is $0.40 per share, up from $0.33 per share. The new annual dividend is $1.60 per share, compared with $1.32 per share previously.


OPERATING RESULTS

Full Year Earnings – Full year 2021 net income was $873.0 million, or $6.10 per diluted share, an increase of 54% from $567.8 million, or $3.97 per diluted share, for the full year 2020.

Fourth Quarter Earnings – Fourth quarter 2021 net income was $217.8 million, or $1.52 per diluted share, compared with $225.4 million, or $1.57 per diluted share, for the third quarter of 2021. Quarter-over-quarter, net income decreased by 3% and diluted earnings per share decreased by 3.5%.


Fourth Quarter 2021 Compared to Third Quarter 2021

Net Interest Income and Net Interest Margin
Net interest income (“NII”) totaled $405.7 million, an increase of 10% annualized from $395.7 million. Net interest margin (“NIM”) of 2.73% increased by three basis points from 2.70%.
Excluding the impact of PPP loans, adjusted NII3 totaled $396.1 million, an increase of 16% annualized from $380.5 million. PPP loans contributed $9.6 million to NII in the fourth quarter, compared with $15.2 million in the third quarter.
Adjusted NII growth reflected higher interest income from growth in loans and AFS debt securities, as well as lower interest expense because of a lower cost of funds.
Adjusted NIM3 of 2.70% increased by six basis points from 2.64%. The quarter-over-quarter adjusted NIM expansion was driven by a favorable shift in the asset mix into higher interest earning assets, and a lower cost of deposits.
The average loan yield was 3.59%, down two basis points from the third quarter, and the adjusted average loan yield3 of 3.56% was unchanged quarter-over-quarter.
The average cost of funds of 0.12% decreased by two basis points from 0.14%. This reflected growth in average demand deposits, and a continued decline in the cost of interest-bearing deposits. The average cost of deposits of 0.10% decreased by two basis points from 0.12%.

Noninterest Income
Noninterest income totaled $71.5 million in the fourth quarter, compared with $73.1 million in the third quarter.
Quarter-over-quarter, lending fees increased $3.2 million or 18%, reflecting higher syndication, trade finance and loan commitment fees. Deposit account fees increased $1.5 million or 8%, due to growth in commercial account fees.
Interest rate contracts (“IRC”) and other derivative income was $1.9 million in the fourth quarter, compared with $7.2 million in the third quarter. The $5.2 million quarter-over-quarter decrease was due to lower customer-driven IRC revenue and a smaller favorable change in the credit valuation adjustment, compared with the previous quarter.



















3 See reconciliation of GAAP to non-GAAP financial measures in Table 14.
3


Noninterest Expense
Noninterest expense totaled $210.1 million in the fourth quarter, compared with $205.4 million in the third quarter. Fourth quarter noninterest expense consisted of $177.7 million of adjusted noninterest expense4, $31.8 million in amortization of tax credit and other investments, and $0.6 million in amortization of core deposit intangibles.
Adjusted noninterest expense of $177.7 million increased by 7% from $166.7 million in the third quarter. The quarter-over-quarter change reflects increased bonus and incentive compensation expense in the fourth quarter, which was primarily related to full year business activity, as well as higher charitable contributions in other operating expense.
Amortization of tax credit and other investments totaled $31.8 million, compared with $38.0 million in the third quarter. Quarter-over-quarter variability in the amortization of tax credits and other investments partially reflects the impact of investments that close in a given period.
The adjusted efficiency ratio4 was 37.2% in the fourth quarter, compared with 35.6% in the third quarter.


TAX RELATED ITEMS

Full year 2021 income tax expense was $183.4 million and the effective tax rate was 17.4%, compared with income tax expense of $118.0 million and an effective tax rate of 17.2% for the full year 2020. Fourth quarter 2021 income tax expense was $59.3 million and the effective tax rate was 21.4%, compared with income tax expense of $48.0 million and an effective tax rate of 17.5% for the third quarter of 2021.


ASSET QUALITY

Quarter-over-quarter, nonperforming assets (“NPAs”) decreased by 40%, to 0.17% of total assets, and criticized loans were down 18%, to 2.00% of loans held-for-investment (“HFI”). Year-over-year, NPAs decreased by 56% and criticized loans decreased by 32%.
1
The NPA ratio improved by 11 basis points quarter-over-quarter and by 28 basis points year-over-year. As of December 31, 2021, NPAs were $103.5 million, or 0.17% of total assets, compared with $172.6 million, or 0.28% of total assets, as of September 30, 2021, and $234.9 million, or 0.45% of total assets, as of December 31, 2020.
The criticized loan ratio improved by 50 basis points quarter-over-quarter and by 117 basis points year-over-year. As of December 31, 2021, criticized loans totaled $833.1 million, or 2.00% of loans HFI, compared with $1.0 billion, or 2.50% of loans HFI, as of September 30, 2021, and $1.2 billion, or 3.17% of loans HFI as of December 31, 2020.
The allowance for loan losses (“ALLL”) totaled $541.6 million, or 1.30% of loans HFI, as of December 31, 2021, compared with $560.4 million, or 1.38% of loans HFI, as of September 30, 2021, and $620.0 million, or 1.61% of loans HFI, as of December 31, 2020. The quarter-over-quarter decrease in the ALLL largely reflects an improved macroeconomic forecast, partially offset by higher downside scenario weightings. Consequently, the Company recorded a negative $10.0 million provision for credit losses during the fourth quarter of 2021.
Fourth quarter 2021 net charge-offs were $9.8 million, or annualized 0.10% of average loans HFI, down from $13.5 million, or annualized 0.13% of average loans HFI, for the third quarter of 2021. The net charge-off ratio for the full year of 2021 was 0.13%, a decrease from 0.17% for the full year 2020.

















4 See reconciliation of GAAP to non-GAAP financial measures in Table 12.
4


CAPITAL STRENGTH

Capital levels for East West are strong. The following table presents the regulatory capital metrics as of December 31, 2021, September 30, 2021, and December 31, 2020.

EWBC Risk-Based Capital Ratios
($ in millions)
December 31, 2021 (a)
September 30, 2021 (a)
December 31, 2020 (a)
CET1 capital ratio12.8 %12.8 %12.7 %
Tier 1 capital ratio12.8 %12.8 %12.7 %
Total capital ratio14.1 %14.2 %14.3 %
Leverage ratio9.0 %8.8 %9.4 %
Risk-Weighted Assets (“RWA”) (b)
$43,594 $42,128 $38,406 
(a)The Company has elected to use the 2020 CECL transition provision in the calculation of its December 31, 2021, September 30, 2021 and December 31, 2020 regulatory capital ratios. The Company’s December 31, 2021 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.


DIVIDEND PAYOUT AND CAPITAL ACTIONS

East West’s Board of Directors has declared first quarter 2022 dividends for the Company’s common stock. The common stock cash dividend of $0.40 per share is payable on February 22, 2022 to stockholders of record on February 7, 2022. This represents a 21% increase, or seven cents per share, to the quarterly common stock dividend, up from $0.33 per share previously. The new annual dividend is $1.60 per share, compared with $1.32 per share previously.

On March 3, 2020, East West’s Board of Directors authorized the repurchase of up to $500 million of East West’s common stock. East West did not repurchase any shares during the fourth quarter of 2021, and has not repurchased any shares since the first quarter of 2020, under this authorization.


Conference Call

East West will host a conference call to discuss fourth quarter and full year 2021 earnings with the public on Thursday, January 27, 2022, at 8:30 a.m. PT/11:30 a.m. ET. The public and investment community are invited to listen as management discusses fourth quarter and full year 2021 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 will be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.
A listen-only live broadcast of the call will also be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.
A replay of the conference call will be available on January 27, 2022, at 11:30 a.m. PT through February 27, 2022. The replay numbers are: within the U.S. – (877) 344-7529; within Canada – (855) 669-9658; international calls – (412) 317-0088; and the replay access code is: 7293241.










5


About East West

East West Bancorp, Inc. is a public company with total assets of $60.9 billion and is traded on the Nasdaq Global Select Market under the symbol “EWBC”. The Company’s wholly owned subsidiary, East West Bank, is one of the largest independent banks headquartered in California, operating over 120 locations in the United States and in China. The Company’s markets in the United States include California, Georgia, Massachusetts, Nevada, New York, Texas and Washington. In China, East West’s presence includes full-service branches in Hong Kong, Shanghai, Shantou and Shenzhen, and representative offices in Beijing, Chongqing, Guangzhou, and Xiamen. For more information on East West, visit the Company’s website at 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. In addition, the Company may make forward-looking statements in other documents that it files with, or furnishes to, the 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 are based on current expectations, estimates and projections about the Company’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. These statements relate to the Company’s financial condition, results of operations, plans, objectives, future performance and/or business. They usually can be identified by the use of forward-looking language, such as “anticipates,” “assumes,” “believes,” “can,” “continues,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends to,” “likely,” “may,” “might,” “objective,” “plans,” “potential,” “projects,” “target,” “trend,” “remains,” “should,” “will,” “would,” or similar expressions, and the negative thereof. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including, but not limited to, those described in the documents incorporated by reference. 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. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company.

There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such differences, include, but are not limited to: changes in the global economy, including an economic slowdown, or market disruption, level of inflation, interest rate environment, housing prices, employment levels, rate of growth and general business conditions; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit; changes in local, regional and global business, economic and political conditions and geopolitical events; the economic, financial, reputational and other impacts of the ongoing COVID-19 global pandemic including variants thereof and any other pandemic, epidemic or health-related crisis, as well as a deterioration of asset quality and an increase in credit losses due to the COVID-19 global pandemic; changes in laws or the regulatory environment including regulatory reform initiatives and policies of the U.S. Department of Treasury, the Board of Governors of the Federal Reserve System (the “Federal Reserve”), the Federal Deposit Insurance Corporation (“FDIC”), the SEC, the Consumer Financial Protection Bureau (“CFPB”), and the California Department of Financial Protection and Innovation (“DFPI”) – Division of Financial Institutions; the changes and effects thereof in trade, monetary and fiscal policies and laws, including the ongoing trade dispute 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, and savings and borrowing habits, patterns and behaviors; fluctuations in the Company’s stock price; impact from potential changes to income tax laws and regulations, federal spending and economic stimulus programs; the Company’s ability to compete effectively against financial institutions in its banking markets and other entities, including as a result of emerging technologies; the soundness of other financial institutions; success and timing of the Company’s business strategies; the Company’s ability to retain key officers and employees; 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 technologies into its business in a strategic manner; impact of the benchmark interest rate reform in the U.S. including the transition away from USD London Interbank Offered Rate (“LIBOR”) to alternative reference rates; impact of communications or technology disruption, failure in, or breach of, the Company’s operational or security systems or infrastructure, or those of third parties 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 and/or proprietary information being disclosed or misused and materially impact the Company’s ability to provide services to its clients; 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; impact of adverse changes to the Company’s credit ratings from major credit rating agencies; impact of adverse judgments or settlements in litigation; impact on the Company’s operations due to political developments, disease pandemics, wars, civil unrest, terrorism or other hostilities that may disrupt or increase volatility in securities or otherwise affect business and economic conditions; heightened regulatory and governmental oversight and scrutiny of the Company’s business practices, including dealings with consumers; impact of reputational risk from negative publicity, fines and 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; impact of regulatory 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 critical accounting policies and assumptions; the Company’s capital requirements and its ability to generate capital internally or raise capital on favorable terms; impact on the Company’s liquidity due to changes in the Company’s ability to pay dividends and repurchase common stock and to receive dividends from its subsidiaries; any future strategic acquisitions or divestitures; changes in the equity and debt securities markets; fluctuations in foreign currency exchange rates; impact of increased focus on social, environmental and sustainability matters, which may affect the Company’s operations as well as those of its customers and the economy more broadly; significant turbulence or disruption in the capital or financial markets, which could result in, among other things, a reduction in the availability of funding or increases in funding costs, declines in asset values and/or recognition of allowance for credit losses on securities held in the Company’s available-for-sale (“AFS”) debt securities portfolio; and impact of climate change, natural or man-made disasters or calamities, such as wildfires, droughts and earthquakes, all of which are particularly common in California, or other events that may directly or indirectly result in a negative impact on the Company’s financial performance.

For a more detailed discussion of some of the factors that might cause such differences, see the Company’s 2020 Form 10-K under the heading Item 1A. Risk Factors and the information set forth under Item 1A. Risk Factors in the Company’s Quarterly Reports on Form 10-Q. 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.
6


EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
($ and shares in thousands, except per share data)
(unaudited)
Table 1   
December 31, 2021
% or Basis Point Change
 December 31, 2021September 30, 2021December 31, 2020Qtr-o-QtrYr-o-Yr
Assets   
 Cash and due from banks$527,317$594,631$592,117(11.3)%(10.9)%
Interest-bearing cash with banks3,385,6184,258,2703,425,854(20.5)(1.2)
Cash and cash equivalents3,912,9354,852,9014,017,971(19.4)(2.6)
 Interest-bearing deposits with banks736,492855,162809,728(13.9)(9.0)
 Assets purchased under resale agreements (“resale agreements”)2,353,5032,596,1421,460,000(9.3)61.2 
 Available-for-sale (“AFS”) debt securities (amortized cost of $10,087,179, $9,783,180 and $5,470,523)9,965,3539,713,0065,544,6582.6 79.7 
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stock
77,43477,20083,0460.3 (6.8)
 Loans held-for-sale (“HFS”)6351,788100.0 (64.5)
 Loans held-for-investment (''HFI'') (net of allowance for loan losses of $541,579, $560,404 and $619,983) 41,152,20239,921,30137,770,9723.1 9.0 
 
Investments in qualified affordable housing partnerships, net
289,741297,367213,555(2.6)35.7 
Investments in tax credit and other investments, net
338,522367,428266,525(7.9)27.0 
 Goodwill465,697465,697465,697— — 
Operating lease right-of-use assets98,63299,78595,460(1.2)3.3 
 Other assets 1,479,5551,713,1211,427,513(13.6)3.6 
 Total assets $60,870,701$60,959,110$52,156,913(0.1)%16.7 %
Liabilities and Stockholders’ Equity   
 Deposits$53,350,532$53,356,190$44,862,752(0.0)%18.9 %
Short-term borrowings21,009— (100.0)
 FHLB advances249,331248,898652,6120.2 (61.8)
 Assets sold under repurchase agreements (“repurchase agreements”)300,000300,000300,000— — 
 Long-term debt and finance lease liabilities151,997151,795151,7390.1 0.2 
Operating lease liabilities 105,534107,107102,830(1.5)2.6 
 Accrued expenses and other liabilities876,0891,104,919796,796(20.7)10.0 
 Total liabilities55,033,48355,268,90946,887,738(0.4)17.4 
 Stockholders’ equity5,837,2185,690,2015,269,1752.6 10.8 
 Total liabilities and stockholders’ equity $60,870,701$60,959,110$52,156,913(0.1)%16.7 %
 Book value per common share $41.13$40.10$37.222.6 %10.5 %
 
Tangible equity (1) per common share
$37.79$36.75$33.852.8 11.6 
 Number of common shares at period-end141,908141,884141,5650.0 0.2 
Tangible equity to tangible assets ratio (1)
8.88 %8.62 %9.27 %26 bps(39)bps
(1)See reconciliation of GAAP to non-GAAP financial measures in Table 13.
7


EAST WEST BANCORP, INC. AND SUBSIDIARIES
TOTAL LOANS AND DEPOSITS DETAIL
($ in thousands)
(unaudited)
Table 2
December 31, 2021
% Change
  December 31, 2021September 30, 2021December 31, 2020Qtr-o-QtrYr-o-Yr
Loans:   
Commercial:
Commercial and industrial (“C&I”) (1)
$14,150,608 $13,831,649 $13,631,726 2.3 %3.8 %
Commercial real estate (“CRE”):
 
CRE
12,155,047 11,818,065 11,174,611 2.9 8.8 
 
Multifamily residential
3,675,605 3,340,378 3,033,998 10.0 21.1 
 
Construction and land
346,486 376,921 599,692 (8.1)(42.2)
Total CRE
16,177,138 15,535,364 14,808,301 4.1 9.2 
Consumer:
Residential mortgage:
 
Single-family residential
9,093,702 9,021,801 8,185,953 0.8 11.1 
 
Home equity lines of credit (“HELOCs”)2,144,821 1,963,622 1,601,716 9.2 33.9 
Total residential mortgage
11,238,523 10,985,423 9,787,669 2.3 14.8 
Other consumer
127,512 129,269 163,259 (1.4)(21.9)
Total loans HFI (2)
41,693,781 

40,481,705 

38,390,955 3.0 8.6 
Loans HFS
635 — 1,788 100.0 (64.5)
 
Total loans (1)(2)
41,694,416 40,481,705 38,392,743 3.0 8.6 
Allowance for loan losses(541,579)(560,404)(619,983)(3.4)(12.6)
 
Net loans (2)
$41,152,837 $39,921,301 $37,772,760 3.1 8.9 
Deposits:
   
 
Noninterest-bearing demand
$22,845,464 $23,175,471 $16,298,301 (1.4)%40.2 %
 
Interest-bearing checking
6,524,721 6,530,601 6,142,193 (0.1)6.2 
 
Money market
13,130,300 12,555,879 10,740,667 4.6 22.2 
 
Savings
2,888,065 2,855,597 2,681,242 1.1 7.7 
 
Time deposits
7,961,982 8,238,642 9,000,349 (3.4)(11.5)
 
Total deposits
$53,350,532 $53,356,190 $44,862,752 (0.0)%18.9 %
(1)Includes $534.2 million, $807.3 million and $1.57 billion of Paycheck Protection Program (“PPP”) loans as of December 31, 2021, September 30, 2021 and December 31, 2020, respectively. Excluding PPP loans, total loans were $41.16 billion, $39.67 billion and $36.82 billion as of December 31, 2021, September 30, 2021 and December 31, 2020, respectively.
(2)Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(50.7) million, $(54.3) million and $(58.8) million as of December 31, 2021, September 30, 2021 and December 31, 2020, respectively. Net origination fees related to PPP loans were $(5.7) million, $(13.5) million and $(12.7) million as of December 31, 2021, September 30, 2021 and December 31, 2020, respectively.


8


EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
($ and shares in thousands, except per share data)
(unaudited)
Table 3
Three Months EndedDecember 31, 2021
% Change
December 31, 2021September 30, 2021December 31, 2020Qtr-o-QtrYr-o-Yr
Interest and dividend income (1)
$422,708 $415,307 $381,348 1.8 %10.8 %
Interest expense
17,011 19,601 34,767 (13.2)(51.1)
Net interest income before provision for credit losses
405,697 395,706 346,581 2.5 17.1 
(Reversal of) provision for credit losses(10,000)(10,000)24,340 — NM
Net interest income after provision for credit losses
415,697 405,706 322,241 2.5 29.0 
Noninterest income71,489 73,109 69,832 

(2.2)2.4 
Noninterest expense210,105 205,384 178,651 2.3 17.6 
Income before income taxes
277,081 273,431 213,422 1.3 29.8 
Income tax expense
59,285 47,982 49,338 23.6 20.2 
Net income
$217,796 $225,449 $164,084 (3.4)%32.7 %
Earnings per share (“EPS”)
   
- Basic
$1.53 $1.59 $1.16 (3.4)%32.4 %
- Diluted
$1.52 $1.57 $1.15 (3.5)32.0 
Weighted-average number of shares outstanding
- Basic
141,907 141,880 141,564 0.0 %0.2 %
- Diluted
143,323 143,143 142,529 0.1 0.6 
 
 
Three Months EndedDecember 31, 2021
% Change
 
 
December 31, 2021September 30, 2021December 31, 2020Qtr-o-QtrYr-o-Yr
Noninterest income:
   
 
Lending fees
$20,739 $17,516 $18,387 18.4 %12.8 %
Deposit account fees20,028 18,508 14,256 8.2 40.5 
Interest rate contracts and other derivative income1,932 7,156 12,967 (73.0)(85.1)
 
Foreign exchange income
13,343 13,101 6,679 1.8 99.8 
 
Wealth management fees
5,291 5,598 4,497 (5.5)17.7 
 
Net gains on sales of loans
2,308 3,329 3,058 (30.7)(24.5)
 
Gains on sales of AFS debt securities
390 354 432 10.2 (9.7)
Other investment income 2,982 5,349 3,989 (44.3)(25.2)
Other income
4,476 2,198 5,567 103.6 (19.6)
Total noninterest income$71,489 $73,109 $69,832 (2.2)%2.4 %
Noninterest expense:
   
 
Compensation and employee benefits
$114,743 $105,751 $105,400 8.5 %8.9 %
 
Occupancy and equipment expense
15,846 15,851 16,548 (0.0)(4.2)
 
Deposit insurance premiums and regulatory assessments
4,772 4,641 3,995 2.8 19.4 
Deposit account expense4,307 4,136 3,501 4.1 23.0 
Data processing4,175 3,575 4,707 16.8 (11.3)
Computer software expense7,494 8,426 7,027 (11.1)6.6 
Consulting expense1,539 1,635 1,537 (5.9)0.1 
 
Legal expense
2,175 2,363 1,673 (8.0)30.0 
 
Other operating expense
23,254 20,998 22,000 10.7 5.7 
Amortization of tax credit and other investments31,800 38,008 12,263 (16.3)159.3 
Total noninterest expense$210,105 $205,384 $178,651 2.3 %17.6 %
NM - Not meaningful.
(1)Includes $9.6 million, $15.2 million and $14.2 million of interest income related to PPP loans for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively.
9


EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
($ and shares in thousands, except per share data)
(unaudited)
Table 4
 Year EndedDecember 31, 2021
% Change
  December 31, 2021December 31, 2020Yr-o-Yr
Interest and dividend income (1)
$1,618,734 $1,595,042 1.5%
Interest expense
87,163 217,849 (60.0)
Net interest income before provision for credit losses
1,531,571 1,377,193 11.2
(Reversal of ) provision for credit losses(35,000)210,653 NM
Net interest income after provision for credit losses
1,566,571 1,166,540 34.3
Noninterest income 285,895 235,547 21.4
Noninterest expense796,089 716,322 11.1
Income before income taxes
1,056,377 685,765 54.0
Income tax expense
183,396 117,968 55.5
Net income
$872,981 $567,797 53.7%
EPS
  
- Basic
$6.16 $3.99 54.3%
- Diluted
$6.10 $3.97 53.6
Weighted-average number of shares outstanding
- Basic
141,826 142,336 (0.4)%
- Diluted
143,140 142,991 0.1
 
 
Year EndedDecember 31, 2021
% Change
 
 
December 31, 2021December 31, 2020Yr-o-Yr
Noninterest income:
  
 
Lending fees
$77,704 $74,842 3.8%
 
Deposit account fees
71,261 48,148 48.0
Interest rate contracts and other derivative income22,913 31,685 (27.7)
 
Foreign exchange income
48,977 22,370 118.9
 
Wealth management fees
25,751 17,494 47.2
 
Net gains on sales of loans
8,909 4,501 97.9
 
Gains on sales of AFS debt securities1,568 12,299 (87.3)
Other investment income16,852 10,641 58.4
Other income
11,960 13,567 (11.8)
Total noninterest income$285,895 $235,547 21.4%
Noninterest expense:
  
 
Compensation and employee benefits
$433,728 $404,071 7.3%
 
Occupancy and equipment expense
62,996 66,489 (5.3)
 
Deposit insurance premiums and regulatory assessments
17,563 15,128 16.1
Deposit account expense16,152 13,530 19.4
Data processing
16,263 16,603 (2.0)
Computer software expense
30,600 29,033 5.4
Consulting expense
6,517 5,391 20.9
 
Legal expense
8,015 7,766 3.2
 
Other operating expense
81,798 79,489 2.9
Amortization of tax credit and other investments122,457 70,082 74.7
Repurchase agreements’ extinguishment cost— 8,740 (100.0)
Total noninterest expense$796,089 $716,322 11.1%
NM - Not meaningful.
(1)Includes $55.2 million and $43.3 million of interest income related to PPP loans for the years ended December 31, 2021 and 2020, respectively.
10


EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED AVERAGE BALANCES
($ in thousands)
(unaudited)
Table 5
Three Months EndedDecember 31, 2021
% Change
Year EndedDecember 31, 2021
% Change
  December 31,
2021
September 30,
2021
December 31,
2020
Qtr-o-QtrYr-o-YrDecember 31,
2021
December 31,
2020
Yr-o-Yr
Loans:
     
Commercial:
 
C&I (1)
$13,592,203 $13,531,338 $13,332,194 0.4%2.0%$13,656,720 $13,074,883 4.5%
CRE:
 
CRE
11,954,535 11,747,607 11,067,392 1.88.011,663,144 10,828,037 7.7
 
Multifamily residential
3,434,274 3,248,281 3,051,472 5.712.53,213,582 3,009,365 6.8
 
Construction and land
340,940 415,812 588,665 (18.0)(42.1)445,333 597,118 (25.4)
Total CRE
15,729,749 15,411,700 14,707,529 2.17.015,322,059 14,434,520 6.1
Consumer:
Residential mortgage:
 
Single-family residential
9,031,677 8,962,533 7,990,035 0.813.08,742,565 7,613,706 14.8
 
HELOCs
2,052,383 1,912,629 1,558,781 7.331.71,859,073 1,480,516 25.6
Total residential mortgage
11,084,060 10,875,162 9,548,816 1.916.110,601,638 9,094,222 16.6
Other consumer
126,557 141,951 137,186 (10.8)(7.7)136,280 195,392 (30.3)
 
Total loans (2)
$40,532,569 $39,960,151 $37,725,725 1.4%7.4%$39,716,697 $36,799,017 7.9%
Interest-earning assets
$58,944,082 $58,239,480 $49,703,349 1.2%18.6%$56,256,388 $46,239,709 21.7%
Total assets
$62,183,137 $61,359,533 $52,466,325 1.3%18.5%$59,251,091 $48,937,793 21.1%
Deposits:     
Noninterest-bearing demand
$24,019,333 $23,169,323 $16,311,010 3.7%47.3%$21,271,410 $13,823,152 53.9%
Interest-bearing checking
6,462,471 6,646,515 6,067,849 (2.8)6.56,543,817 5,357,934 22.1
Money market
12,920,174 12,604,827 10,626,940 2.521.612,428,025 9,881,284 25.8
Savings
2,841,352 2,792,702 2,450,980 1.715.92,746,933 2,234,913 22.9
Time deposits
8,072,917 8,283,265 8,965,337 (2.5)(10.0)8,493,511 9,465,608 (10.3)
Total deposits
$54,316,247 $53,496,632 $44,422,116 1.5%22.3%$51,483,696 $40,762,891 26.3%
Interest-bearing liabilities
$31,011,536 $31,039,410 $29,666,559 (0.1)%4.5%$31,077,459 $28,798,277 7.9%
Stockholders’ equity
$5,786,237 $5,680,306 $5,243,203 1.9%10.4%$5,559,212 $5,082,186 9.4%
(1)Includes average balances of PPP loans of $677.2 million, $1.11 billion and $1.70 billion for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively, and $1.39 billion and $1.24 billion for the years ended December 31, 2021 and 2020, respectively.
(2)Includes loans HFS.

11


EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 6
 
 
Three Months Ended
 
 
December 31, 2021September 30, 2021
 
 
Average Average Average Average
 
 
BalanceInterest
Yield/Rate (1)
BalanceInterest
Yield/Rate (1)
Assets
      
Interest-earning assets:
      
 
Interest-bearing cash and deposits with banks
$6,050,870 $3,750 0.25 %$7,036,823 $4,521 0.25 %
 
Resale agreements2,440,636 9,162 1.49 %2,382,741 8,957 1.49 %
 
AFS debt securities
9,842,691 42,367 1.71 %8,782,682 37,826 1.71 %
 
Loans (2)
40,532,569 366,936 3.59 %39,960,151 363,503 3.61 %
 
FHLB and FRB stock
77,316 493 2.53 %77,083 500 2.57 %
 
Total interest-earning assets
58,944,082 422,708 2.85 %58,239,480 415,307 2.83 %
Noninterest-earning assets:
      
 
Cash and due from banks
652,126 627,640   
 
Allowance for loan losses(558,645)(584,827)  
 
Other assets
3,145,574 3,077,240   
 
Total assets
$62,183,137   $61,359,533   
Liabilities and Stockholders’ Equity
     
Interest-bearing liabilities:
      
 
Checking deposits
$6,462,471 $1,846 0.11 %$6,646,515 $3,186 0.19 %
 
Money market deposits
12,920,174 3,172 0.10 %12,604,827 3,446 0.11 %
 
Savings deposits
2,841,352 1,734 0.24 %2,792,702 1,943 0.28 %
 
Time deposits
8,072,917 6,617 0.33 %8,283,265 7,395 0.35 %
 
Federal funds purchased and other short-term borrowings
730 — — %620 — — %
 
FHLB advances
249,048 856 1.36 %248,614 857 1.37 %
 
Repurchase agreements313,075 2,018 2.56 %310,997 2,012 2.57 %
 
Long-term debt and finance lease liabilities
151,769 768 2.01 %151,870 762 1.99 %
 
Total interest-bearing liabilities
31,011,536 17,011 0.22 %31,039,410 19,601 0.25 %
Noninterest-bearing liabilities and stockholders’ equity:
     
 
Demand deposits
24,019,333 23,169,323 
 
Accrued expenses and other liabilities
1,366,031 1,470,494 
 
Stockholders’ equity
5,786,237 5,680,306 
 
Total liabilities and stockholders’ equity
$62,183,137 $61,359,533 
Interest rate spread
 2.63 %2.58 %
Net interest income and net interest margin
 $405,697 2.73 %$395,706 2.70 %
Adjusted net interest income and adjusted net interest margin (3)
$396,105 2.70 %$380,494 2.64 %
(1)Annualized.
(2)Includes loans HFS. Average balances of PPP loans were $677.2 million and $1.11 billion for the three months ended December 31, 2021 and September 30, 2021, respectively.
(3)Net interest income and net interest margin for the three months ended December 31, 2021 and September 30, 2021 have been adjusted for the impact of PPP loans. See reconciliation of GAAP to non-GAAP financial measures in Table 14.
12


EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 7
 Three Months Ended
December 31, 2021December 31, 2020
Average Average Average Average
BalanceInterest
Yield/Rate (1)
BalanceInterest
Yield/Rate (1)
Assets
      
Interest-earning assets:
      
 
Interest-bearing cash and deposits with banks
$6,050,870 $3,750 0.25 %$5,609,965 $4,458 0.32 %
 
Resale agreements2,440,636 9,162 1.49 %1,257,826 4,955 1.57 %
 
AFS debt securities
9,842,691 42,367 1.71 %5,029,820 22,914 1.81 %
 
Loans (2)
40,532,569 366,936 3.59 %37,725,725 348,578 3.68 %
 
FHLB and FRB stock
77,316 493 2.53 %80,013 443 2.20 %
 
Total interest-earning assets
58,944,082 422,708 2.85 %49,703,349 381,348 3.05 %
Noninterest-earning assets:
      
 
Cash and due from banks
652,126 580,989   
 
Allowance for loan losses(558,645)(618,207)  
 
Other assets
3,145,574 2,800,194   
 
Total assets
$62,183,137   $52,466,325   
Liabilities and Stockholders’ Equity
     
Interest-bearing liabilities:
      
 
Checking deposits
$6,462,471 $1,846 0.11 %$6,067,849 $4,218 0.28 %
 
Money market deposits
12,920,174 3,172 0.10 %10,626,940 5,542 0.21 %
 
Savings deposits
2,841,352 1,734 0.24 %2,450,980 1,655 0.27 %
 
Time deposits
8,072,917 6,617 0.33 %8,965,337 16,727 0.74 %
 
Federal funds purchased and other short-term borrowings
730 — — %47,500 276 2.31 %
 
FHLB advances
249,048 856 1.36 %653,748 3,137 1.91 %
 
Repurchase agreements313,075 2,018 2.56 %335,737 2,080 2.46 %
 
Long-term debt and finance lease liabilities
151,769 768 2.01 %518,468 
(3)
1,132 0.87 %
 
Total interest-bearing liabilities
31,011,536 17,011 0.22 %29,666,559 34,767 0.47 %
Noninterest-bearing liabilities and stockholders’ equity:
      
 
Demand deposits
24,019,333 16,311,010 
 
Accrued expenses and other liabilities
1,366,031 1,245,553 
 
Stockholders’ equity
5,786,237 5,243,203 
 
Total liabilities and stockholders’ equity
$62,183,137 $52,466,325 
Interest rate spread
 2.63 %2.58 %
Net interest income and net interest margin
 $405,697 2.73 %$346,581 2.77 %
Adjusted net interest income and adjusted net interest margin (4)
$396,105 2.70 %$332,701 2.76 %
(1)Annualized.
(2)Includes loans HFS. Average balances of PPP loans were $677.2 million and $1.70 billion for the three months ended December 31, 2021 and 2020, respectively.
(3)Primarily includes average balances from the Federal Reserve Paycheck Protection Program Liquidity Facility (“PPPLF”), which was repaid in full during the fourth quarter of 2020.
(4)Net interest income and net interest margin for the three months ended December 31, 2021 and 2020 have been adjusted for the impact of PPP loans. Net interest margin for the three months ended December 31, 2020 has been adjusted for advances from the PPPLF. See reconciliation of GAAP to non-GAAP financial measures in Table 14.

13


EAST WEST BANCORP, INC. AND SUBSIDIARIES
YEAR-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 8
 Year Ended
December 31, 2021December 31, 2020
Average Average Average Average
BalanceInterestYield/RateBalanceInterestYield/Rate
Assets
      
Interest-earning assets:
      
 
Interest-bearing cash and deposits with banks
$6,071,896 $15,531 0.26 %$4,236,430 $25,175 0.59 %
 
Resale agreements (1)
2,107,157 32,239 1.53 %1,101,434 21,389 1.94 %
 
AFS debt securities8,281,234 143,983 1.74 %4,023,668 82,553 2.05 %
 
Loans (2)
39,716,697 1,424,900 3.59 %36,799,017 1,464,382 3.98 %
 
FHLB and FRB stock
79,404 2,081 2.62 %79,160 1,543 1.95 %
 
Total interest-earning assets
56,256,388 1,618,734 2.88 %46,239,709 1,595,042 3.45 %
Noninterest-earning assets:
      
 
Cash and due from banks
615,255 528,406   
 
Allowance for loan losses
(592,211)(577,560)  
 
Other assets
2,971,659 2,747,238   
 
Total assets
$59,251,091 $48,937,793   
Liabilities and Stockholders’ Equity
     
Interest-bearing liabilities:
      
 
Checking deposits
$6,543,817 $13,023 0.20 %$5,357,934 $24,213 0.45 %
 
Money market deposits
12,428,025 15,041 0.12 %9,881,284 42,720 0.43 %
 
Savings deposits
2,746,933 7,496 0.27 %2,234,913 6,398 0.29 %
 
Time deposits
8,493,511 33,599 0.40 %9,465,608 111,411 1.18 %
 
Federal funds purchased and other short-term borrowings
1,584 42 2.65 %108,398 1,504 1.39 %
 
FHLB advances
404,789 6,881 1.70 %664,370 13,792 2.08 %
 
Repurchase agreements (1)
306,845 7,999 2.61 %350,849 11,766 3.35 %
 
Long-term debt and finance lease liabilities
151,955 3,082 2.03 %734,921 
(3)
6,045 0.82 %
 
Total interest-bearing liabilities
31,077,459 87,163 0.28 %28,798,277 217,849 0.76 %
Noninterest-bearing liabilities and stockholders’ equity:
 
Demand deposits
21,271,410 13,823,152 
 
Accrued expenses and other liabilities
1,343,010 1,234,178 
 
Stockholders’ equity
5,559,212 5,082,186 
 
Total liabilities and stockholders’ equity
$59,251,091 $48,937,793 
Interest rate spread
 2.60 %2.69 %
Net interest income and net interest margin
 $1,531,571 2.72 %$1,377,193 2.98 %
Adjusted net interest income and adjusted net interest margin (4)
$1,476,373 2.69 %$1,335,968 2.97 %
(1)Average balances of resale and repurchase agreements for the year ended December 31, 2020 have been reported net, pursuant to ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. The weighted-average yields of gross resale and gross repurchase agreements for the year ended December 31, 2020 were 1.94% and 3.25%, respectively.
(2)Includes loans HFS. Average balances of PPP loans were $1.39 billion and $1.24 billion for the years ended December 31, 2021 and 2020, respectively.
(3)Primarily includes average balances of PPPLF, which was repaid in full during the fourth quarter of 2020.
(4)Net interest income and net interest margin for the year ended December 31, 2021 and 2020 have been adjusted for the impact of PPP loans. Net interest margin for the year ended December 31, 2020 has been adjusted for advances from the PPPLF. See reconciliation of GAAP to non-GAAP financial measures in Table 14.


14


EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED RATIOS
(unaudited)
Table 9
Three Months Ended (1)
December 31, 2021
Basis Point Change
 
 
December 31, 2021September 30, 2021December 31, 2020Qtr-o-QtrYr-o-Yr
 
Return on average assets
1.39 %1.46 %1.24 %(7)bps15 bps
 
Return on average equity
14.93 %15.75 %12.45 %(82)248 
Return on average tangible equity (2)
16.32 %17.25 %13.77 %(93)255 
Adjusted return on average tangible equity (2)
16.32 %17.25 %13.56 %(93)276 
 
Interest rate spread
2.63 %2.58 %2.58 %
 
Net interest margin
2.73 %2.70 %2.77 %(4)
Adjusted net interest margin (2)
2.70 %2.64 %2.76 %(6)
Average loan yield
3.59 %3.61 %3.68 %(2)(9)
Adjusted average loan yield (2)
3.56 %3.56 %3.69 %— (13)
 
Yield on average interest-earning assets
2.85 %2.83 %3.05 %(20)
Average cost of interest-bearing deposits
0.18 %0.21 %0.40 %(3)(22)
 
Average cost of deposits
0.10 %0.12 %0.25 %(2)(15)
 
Average cost of funds
0.12 %0.14 %0.30 %(2)(18)
Adjusted pre-tax, pre-provision profitability ratio (2)
1.91 %1.95 %1.90 %(4)
 
Adjusted noninterest expense/average assets (2)
1.13 %1.08 %1.26 %(13)
Efficiency ratio
44.03 %43.81 %42.90 %22 113 
 
Adjusted efficiency ratio (2)
37.24 %35.55 %39.76 %169 bps(252)bps
Year EndedDecember 31, 2021
Basis Point Change
December 31, 2021December 31, 2020Yr-o-Yr
Return on average assets
1.47 %1.16 %31 bps
Return on average equity
15.70 %11.17 %453 
Return on average tangible equity (2)
17.24 %12.42 %482 
Adjusted return on average tangible equity (2)
17.24 %12.37 %487 
Interest rate spread
2.60 %2.69 %(9)
Net interest margin
2.72 %2.98 %(26)
Adjusted net interest margin (2)
2.69 %2.97 %(28)
Average loan yield
3.59 %3.98 %(39)
Adjusted average loan yield (2)
3.57 %4.00 %(43)
Yield on average interest-earning assets
2.88 %3.45 %(57)
Average cost of interest-bearing deposits
0.23 %0.69 %(46)
Average cost of deposits
0.13 %0.45 %(32)
Average cost of funds
0.17 %0.51 %(34)
Adjusted pre-tax, pre-provision profitability ratio (2)
1.94 %2.00 %(6)
Adjusted noninterest expense/average assets (2)
1.13 %1.30 %(17)
Efficiency ratio
43.80 %44.42 %(62)
Adjusted efficiency ratio