East West Bancorp, Inc. · NASDAQ:EWBC
East West Bancorp — Investor Presentation (December 2023)
18 slides from East West Bancorp's investor presentation, Dec 12, 2023
Slide 1: East West Bancorp, Inc. Fourth Quarter Investor Update
East West Bancorp, Inc. Fourth Quarter Investor Update December 12, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 Forward-Looking Statements This presentation contains 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. These statements are based on the current beliefs and
Slide 3: East West at a Glance
15.2% 18.7% Return on Average Tangible Common Equity(1) - 3Q23 1.06% 1.66% Return on Average Assets - 3Q23 East West at a Glance 3 Highlights A Diversified Model (1) See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases (2) EWBC peers
Slide 4: Commercial Loan Portfolio
Private Equity 15% Other 15% Media & Entertainment 11% Structured Finance 11% Real Estate Inv., Mgmt, & Services 9% Manufacturing & Wholesale 6% Infrastructure & Clean Energy 6% Healthcare, Pharma, & Life Sciences 4% Tech & Telecom 4% Food Production & Distribution 4% Hospitality & Leisure 4% Oil &
Slide 5: Residential Mortgage Portfolio
Residential Mortgage Portfolio 5 51% Average LTV1 Well-diversified by geography, with low LTVs and average loan size Resi. Mortgage Distribution by Geography3 (as of 09.30.23) Resi. Mortgage Distribution by LTV1 (as of 09.30.23) $436,000 Average loan size2 (1) Combined LTV for 1st and 2nd liens; bas
Slide 6: Total Deposit Portfolio
$50.0bn Customer Deposits1 Total Deposit Portfolio 6 (1) Total deposits excluding wholesale deposits Granular and diversified by segment, customer type ▪ Grew customer deposits by $1bn Q-o-Q − Commercial up $600mm − Consumer up $400mm ▪ Reduced wholesale deposits by $1.6bn Q-o-Q ▪ Portfolio Detail (
Slide 7: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin 7 $ i n m ill io n s +0.01% +0.14% 3.55% Higher loan yields, balances 3.48% Higher other AEA yields -0.04% Higher cost of IB deposits, balances -0.22% Favorable earning asset mix shift +0.04% Deposit mix shift Record third quarter NII, growth Q-o-Q ▪ 3Q23 NI
Slide 8: Notable Updates
Notable Updates 8 Share Repurchases ▪ 1.5 million shares repurchased as of December 7th Trust Preferred Securities ▪ Redeeming ~$117 million Noninterest Expense ▪ Accruing ~$70 million (pre-tax) for FDIC special assessment in 4Q 4Q23 Activity FY 2023 Expectations 1Q24 Expectation
Slide 9: High Performance for Clients and Shareholders
-12.5% 14.9% 17.2% 5.6% 54.8% 58.0% 1-Year 3-Year 5-Year Peer Median EWBC High Performance for Clients and Shareholders 9 ✓ Largest Minority Depository Institution in the U.S. by Assets(2) ✓ #1 Performing Bank, $50 Billion and Above Bank Director ✓ #1 U.S. Public Bank by Financial Performance S&P Gl
Slide 10: Appendix
APPENDIX EAST WEST BANK Your financial bridge
Slide 11: Noninterest Income
24 22 23 20 21 20 10 13 12 9 7 6 4 6 6 $67 $69 $67 3Q22 2Q23 3Q23 IRC Revenue Wealth Mgmt. Fees FX Income Lending Fees Deposit Acct. Fees Noninterest Income 11 Interest Rate Contracts (IRC) and Other Derivative Income Detail ($mm) 3Q22 2Q23 3Q23 Revenue $ 4.0 $ 6.0 $ 5.9 MTM 4.8 1.4 5.3 Total $ 8.8
Slide 12: Operating Expense & Efficiency
128 125 123 16 16 15 11 11 12 12 19 20 29 34 32 $196 $205 $202 3Q22 2Q23 3Q23 All other Deposit related expenses Computer software & Data processing Occupancy & Equipment Comp and employee benefits Operating Expense & Efficiency 12 $ i n m ill io n s Industry-leading efficiency supporting profitabil
Slide 13: Commercial Real Estate Portfolio Detail
Commercial Real Estate Portfolio Detail 13 (1) Weighted average LTV is based on most recent LTV, using most recent available appraisal and current loan commitment (2) Construction & Land average size based on total commitment 51% Average LTV1 Low LTVs and granular, many loans have full recourse and
Slide 14: Solid & Stable Asset Quality Metrics
$7 $10 $1 $8 $18 3Q22 4Q22 1Q23 2Q23 3Q23 Solid & Stable Asset Quality Metrics 14 Nonaccrual loans OREO & other NPAs NPAs / Total Assets Criticized Loans / Loans HFI Classified loans HFI Special Mention loans HFI HFI represents Held-for-Investment Classified loans HFI Special Mention loans HFI Criti
Slide 15: Capital Ratios
8.4% 9.6% 12.3% 13.6% 8.8% 10.0% 13.2% 14.6% 9.0% 10.2% 13.3% 14.7% Tangible common equity Leverage CET1 Total capital 09.30.22 06.30.23 09.30.23 ▪ Very strong capital − We operate from a position of capital strength − Hypothetical adjustments for AFS + HTM security marks and on- and off- balance sh
Slide 16: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation 16 (1) Annualized EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Adjusted eff
Slide 17: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation 17 EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible book value, tangib
Slide 18: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation 18 (1) Includes core deposit intangibles and mortgage servicing assets. (2) Applied statutory tax rate of 29.29% for the three and nine months ended September 30, 2023, and the three months ended June 30, 2023. Applied statutory tax rate of 28.77% for the th
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