East West Bancorp, Inc. · NASDAQ:EWBC
East West Bancorp — Investor Presentation (March 2014)
22 slides from East West Bancorp's investor presentation, Mar 31, 2014
Slide 1: Company Profile and Investment Overview
Company Profile and Investment Overview East West Bancorp | Nasdaq: EWBC March 31, 2014
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation may include forward-looking statements that involve inherent risks and uncertainties. East West Bancorp, Inc. cautions readers that a number of important factors could cause actual results to differ materially from those in any forward-looking statements. Thes
Slide 3: Our Vision
Our Vision To be recognized as the Premier Bridge between East and West, and acknowledged for delivering relationship driven financial solutions to an increasingly diverse and sophisticated customer base. 3
Slide 4: East West Today (as of March 31, 2014)
East West Today (as of March 31, 2014) • Market Capitalization of $5.2 Billion › 23rd Largest Market Capitalization in the U.S. for Public Banks • Total Assets of $27.4 Billion › 25th Largest Total Assets in the U.S. for Public Banks › 2nd Largest Independent Bank Headquartered in Southern Californi
Slide 5: East West Bank Milestones
East West Bank Milestones First S&L serving Converted to a Complemented organic 40th anniversary of East West. Over Chinese-American state chartered growth with acquisition the 40 years assets have increased market in Southern commercial bank activities from $7 million in 1973 to $25 Billion Califor
Slide 6: Strong Growth and Performance
Strong Growth and Performance Total Assets (in billions) CAGR* = 18% Total Loans (in billions) CAGR* = 16% $27.4 $19.9 $24.7 $18.1 $22.0 $22.5 $20.6 $20.7 $14.5 $15.1 $14.1 $13.7 $11.9 $12.4 $10.8 $8.3 $8.8 $8.2 $8.3 $6.7 $5.1 $6.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q1 2014 2004 2005
Slide 7: Top Banks by Market Capitalization
Top 25 Banks by Market Capitalization Market Capitalization Market Capitalization at 3/31/14 at 3/31/14 Rank Company (in billions) Rank Company (in billions) 1 Wells Fargo & Co. $261.72 14 Regions Financial Corp. $15.77 2 JPMorgan Chase & Co. 229.90 15 Northern Trust Corp. 15.56 3 Bank of America Co
Slide 8: Strong Capital Generation
Strong Capital Generation East West Capital Levels Compared East West Book Value Growth to Well Capitalized Guidelines December 2012 to March 2014 East West has excess capital above the well East West has grown book value per capitalized requirement by more than $590 common share by 12% since 2012 a
Slide 9: Active Capital Management
Active Capital Management Capital Management Goals › Ensure excellent capital levels to support organic growth › Provide a strong return to our shareholders Recent Capital Actions Taken 2010 2011 2012 2013 2014 Repaid $306.5 Increased annual Doubled annual Increased dividend Announced dividend milli
Slide 10: Our Distribution Channel
Our Distribution Channel As of March 31, 2014 • Leading retail presence in Asian communities • Commercial banking centers strategically located • In-store branches located in 99 Ranch Markets, Asian supermarket chain • Only Chinese-American focused bank with full service banking offices in U.S. and
Slide 11: Making the U.S. – Greater China Connection
Making the U.S. – Greater China Connection • Headquartered in California, East West Bank is a top performing commercial bank with exclusive focus on the United States and Greater China markets, including full service branches in China. • Greater China is an increasingly important constituent of the
Slide 12: The Premier Bridge Between East and West
The Premier Bridge Between East and West • Extensive network of contacts and resources in the area provides invaluable access to clients › Assist clients in cross-border business and personal financial objectives › Bridge customers to manufacturers, distributors and investors in China › Bridge custo
Slide 13: First Quarter 2014 Highlights
First Quarter 2014 Highlights • Strong Earnings › Net Income was $76.7 million or $0.54 per share › EPS up 8% from first quarter 2013 • Strong ROE and ROA › ROE remains strong at 12.05% compared to12.45% in first quarter 2013 › ROA remains steady at 1.18% compared to 1.30% in first quarter 2013 • Cl
Slide 14: First Quarter 2014 Highlights (continued)
First Quarter 2014 Highlights (continued) • Strong Loan Growth (including covered and non-covered) › Total loans receivable grew to a record $19.9 billion, up 10% or $1.8 billion from prior quarter › The increase consists of $1.1 billion of MetroCorp loans acquired and $727.7 million of East West lo
Slide 15: Strong Loan Growth
Strong Loan Growth • Strong total loan growth of $4.56 billion or 30% from March 31, 2013 Change From Diversified Loan Portfolio (in billions) 03/31/2013 to 03/31/2014 Loans HFS 1% Loan Category 03/31/2014 12/31/2013 03/31/2013 $ % Covered 12% SFR 3.24 3.19 2.34 0.90 38% C&I Consumer 29% C&I & Trade
Slide 16: Strong Credit Quality
Strong Credit Quality • Asset quality continues to remain strong • NPAs have remained under 1% of total assets for the fourth consecutive year Credit Quality ($ in millions) 03/31/14 12/31/13 09/30/13 06/30/13 03/31/13 NPAs Total NPAs $160.9 (1) $130.6 $124.1 $133.5 $159.5 NPA to Total Assets 0.59%
Slide 17: Diversified Commercial Real Estate Portfolio
Diversified Commercial Real Estate Portfolio Restaurant 2% Mfr/Warehouse Mixed Use 4% Hotel/Motel Non-covered CRE Loans as of 03/31/14 14% 10% Industrial 14% Loan Balance $5.1 Billion Office 13% Average Loan Size $1.6 Million Other Small 15% Average LTV 55% * Commercial Retail 12% Medical Shopping 4
Slide 18: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio • Non-covered CRE loans total 24% of loans as of March 31, 2014 • East West is well within the FFIEC high CRE concentration definition › CRE, construction, land, and MFR to total capital is at 213% − under the 300% FFIEC threshold › Construction and land loans to tot
Slide 19: Commercial Real Estate Loans by LTV
Commercial Real Estate Loans by LTV • Only 5% of portfolio with an LTV greater than 75% • Weighted average LTV is 55%* ($ in millions) CLTV Distribution at March 31, 2014 # of Loans Balance % of Total Cumulative % of Total Less than 50% 1,633 $ 1,861 36% 36% 50% to 55% 395 603 12% 48% 55% to 60% 438
Slide 20: Strong Deposit Growth
Strong Deposit Growth • Total deposits of $22.8 billion as of March 31, 2014, an increase of $3.9 billion from March 31, 2013. • Core deposits grew to a record $16.4 billion in the first quarter of 2014 • The increase consists of $803.1 million of MetroCorp core deposits acquired and $1.0 billion of
Slide 21: Key Focus Areas 2014 and beyond
Key Focus Areas Build fee-based business lines, i.e. F/X, wealth management and cash management Actively manage Maintain solid net capital to deliver long interest income and term shareholder value net interest margin 2014 Remain disciplined on and beyond Grow core deposits and improve deposit expen
Slide 22: Summary
Summary • Strengthened position as the leading Asian-American bank • Financially bridge Asian and mainstream customers • Strong financial performance and balance sheet • Focusing on growing core earnings and fee income • Large California, domestic, and China growth opportunities • Only Asian-America
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