East West Bancorp, Inc. · NASDAQ:EWBC
East West Bancorp — Merger or Acquisition (November 2009)
11 slides from East West Bancorp's merger presentation, Nov 12, 2009
Slide 1: FDIC Assisted Acquisition of United Commercial Bank
Exhibit 99.2 Nasdaq: EWBC FDIC Assisted Acquisition of United Commercial Bank November 6, 2009 1 Your Financial Bridge®
Slide 2: Notice: Safe Harbor Statement
Notice 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 statement
Slide 3: Transaction Overview
Transaction Overview FDIC assisted acquisition of United Commercial Bank (“UCB”) with loss sharing Purchase of $10.4 billion of total assets $7.7 billion loan portfolio $2.6 billion of cash and securities, all transferred at fair market values Assumption of $9.2 billion of total liabilities $6.5 bil
Slide 4: Strategic Rationale
Strategic Rationale Creates premier commercial and retail bank focused on Asian-American markets Expands East West deposit franchise both in the U.S. and in Hong Kong and China Acquisition adds $5.7 billion of deposits and 63 branches in the U.S. Creates presence in mainland China with 2 deposit-tak
Slide 5: Capital Raise
Capital Raise Private placement of $500 million of capital completed Initial investment consists of: $165 million of common equity (maximum issuance allowed under NASDAQ listing rules without a shareholder vote) $335 million of cumulative perpetual convertible preferred that will automatically conve
Slide 6: Expanded Deposit Franchise
Expanded Deposit Franchise East West is now the largest commercial bank headquartered in Southern California Creates the largest retail presence in Asian communities in the United States with 133 branches in key markets across the U.S. Adds 63 branches in U.S., 2 in China 1 in Hong Kong Only Chinese
Slide 7: Pro Forma Deposit Composition
Pro Forma Deposit Composition On a pro forma basis, East West deposits as % of liabilities improves to 90% from 79% East West 9/30/09 Stand-Alone East West and UCB Pro Forma Noninterest- Noninterest- Retail Time bearing bearing 12% 15% 16% Savings & Retail Time Savings & Interest- 34% Interest- Bear
Slide 8: Pro Forma Loan Portfolio
Pro Forma Loan Portfolio On a pro forma basis, 46% of East West’s loan portfolio is subject to FDIC loss share East West 9/30/09 Stand-Alone East West and UCB Pro Forma (a) Consumer China 5% 2% SFR CRE 11% 22% MFR CRE 43% Acquired 12% Loans with Loss Share C&I and 46% Trade 8% Construction Construct
Slide 9: Pro Forma Capital Impact at Close
Pro Forma Capital Impact at Close On a pro forma basis, East West will have extremely strong capital ratios and asset quality Loans acquired expected to receive regulatory risk weighting relief Company plans to deleverage the balance sheet by approximately $3.6 billion using predominately cash and s
Slide 10: Integration Plan
Integration Plan East West management has formed a dedicated transition team to lead the integration plan Credit risk management Expanding credit team to manage portfolio to include existing East West credit staff and hire additional resources, including former UCB credit staff Branch Network All re
Slide 11: East West Strategy
East West Strategy Capitalize and leverage dominant retail position in Chinese-American market Financially bridge Asian and mainstream customers Leverage growth opportunities in other regions Provide full range of products and services to broader customer base Maintain/improve efficiency of pro form
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