XML 70 R30.htm IDEA: XBRL DOCUMENT
v2.4.0.8

STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE | 12 Months Ended
--- | ---
Dec. 31, 2013
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE |
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE | NOTE 22—STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE Series A Preferred Stock Offering—In April 2008, the Company issued 200,000 shares of 8% Non-Cumulative Perpetual Convertible Preferred Stock, Series A (“Series A”), with a liquidation preference of $1,000 per share. The Company received $194.1 million of additional Tier 1 qualifying capital, after deducting stock issuance costs. On May 1, 2013, the Company exercised its mandatory conversion right related to all the outstanding shares of its Series A preferred stock. At the conversion date, the remaining 85,710 shares of outstanding Series A Preferred Stock were converted to 5,594,080 shares of common stock. Stock Repurchase Program—On January 23, 2013, the Company’s Board of Directors authorized a stock repurchase program to buy back up to $200.0 million of the Company’s common stock. During 2013, the company completed the authorized repurchase program, repurchasing 8,026,807 shares at a weighted average price of $24.89 per share and a total cost of $200.0 million. In comparison, the Company repurchased 9,068,105 shares at a weighted average price of $22.02 per share and a total cost of $199.9 during the year ended December 31, 2012. The Company did not repurchase any shares during the years ended December 31, 2011. Additionally, on July 17, 2013, the Company’s Board of Directors authorized a new stock repurchase program to buy back up to $100.0 million of its common stock. The Company did not repurchase any shares under this program during 2013. Quarterly Dividends—The Company’s Board of Directors declared and paid quarterly preferred stock cash dividends of $20.00 per share on its Series A preferred stock during 2013 and 2012. Cash dividends totaling $3.4 million and $6.9 million were paid to the Company’s Series A preferred stock shareholders during the years ended December 31, 2013 and 2012, respectively. The Series A preferred stock were converted into common stock on May 1, 2013. The Company also paid quarterly dividends on its common stock of $0.15 per share for each quarter of 2013. In comparison, the Company paid quarterly dividends on its common stock of $0.10 per share for each quarter of 2012. Total quarterly dividends amounting to $83.3 million and $57.6 million were paid to the Company’s common shareholders during the years ended December 31, 2013 and 2012, respectively. Earnings Per Share (“EPS”) — The number of shares outstanding at December 31, 2013 was 137,630,896. The Company applies the two-class method of computing basic EPS. Under the two-class method, EPS is determined for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. The Company’s restricted stocks, which receive dividends as declared, qualify as participating securities. Restricted stock units issued by the Company are not considered participating securities, as they do not have dividend distribution rights during the vesting period. Diluted EPS is calculated on the basis of the weighted average number of shares outstanding during the period plus potential dilutive shares. The following table sets forth earnings per share calculations for the year ended December 31, 2013, 2012 and 2011:
|  | Year Ended December 31, 2013 |
|  | Net Income |  | Number of Shares |  | Per Share Amounts |
|  | (In thousands, except per share data) |
Net income |  | $ | 295,045 |  |  |  |  |
Less: |  |  |  |  |  |  |  |
Preferred stock dividends |  | (3,428) |  |  |  |  |
Earnings allocated to participating securities |  | (1,692) |  |  |  |  |
Basic EPS – income allocated to common stockholders (1) |  | $ | 289,925 |  | 137,342 |  | $ | 2.11 |
Effect of dilutive securities: |  |  |  |  |  |  |
Stock options |  | — |  | 71 |  |  |
Restricted stock units |  | 196 |  | 327 |  |  |
Convertible preferred stock |  | 3,428 |  | 1,834 |  |  |
Diluted EPS – income allocated to common stockholders (1) |  | $ | 293,549 |  | 139,574 |  | $ | 2.10 |
|  | Year Ended December 31, 2012 |
|  | Net Income |  | Number of Shares |  | Per Share Amounts |
|  | (In thousands, except per share data) |
Net income |  | $ | 281,650 |  |  |  |  |
Less: |  |  |  |  |  |  |
Preferred stock dividends |  | (6,857) |  |  |  |  |
Earnings allocated to participating securities |  | (3,279) |  |  |  |  |
Basic EPS – income allocated to common stockholders (1) |  | $ | 271,514 |  | 141,457 |  | $ | 1.92 |
Effect of dilutive securities: |  |  |  |  |  |  |
Stock options |  | — |  | 29 |  |  |
Restricted stock units |  | 47 |  | 118 |  |  |
Convertible preferred stock |  | 6,857 |  | 5,571 |  |  |
Diluted EPS – income allocated to common stockholders (1) |  | $ | 278,418 |  | 147,175 |  | $ | 1.89 |
|  | Year Ended December 31, 2011 |
|  | Net Income |  | Number of Shares |  | Per Share Amounts |
|  | (In thousands, except per share data) |
Net income |  | $ | 245,234 |  |  |  |  |
Less: |  |  |  |  |  |  |
Preferred stock dividends |  | (6,857) |  |  |  |  |
Basic EPS – income available to common stockholders |  | $ | 238,377 |  | 147,093 |  | $ | 1.62 |
Effect of dilutive securities: |  |  |  |  |  |  |
Stock options |  | — |  | 62 |  |  |
Restricted stock awards |  | 115 |  | 718 |  |  |
Convertible preferred stock |  | 6,857 |  | 5,571 |  |  |
Stock warrants |  | — |  | 23 |  |  |
Diluted EPS – income available to common stockholders |  | $ | 245,349 |  | 153,467 |  | $ | 1.60 |
The following average outstanding stock options and restricted stock units for the years ended December 31, 2013, 2012 and 2011, respectively, were excluded from the computation of diluted EPS because including them would have had an antidilutive effect.
|  | For the Year Ended |
|  | 2013 |  | 2012 |  | 2011 |
|  | (In thousands) |
Stock options |  | 177 |  | 340 |  | 857 |
Restricted stock awards |  | 10 | (1) | 5 | (1) | 317 |
(1) April 1, 2012, the Company revised its calculation of earnings per share to account for participating securities under the two-class method. This revision to the earnings per share calculation does not have an impact to previous periods as the amounts are immaterial. Accumulated Other Comprehensive (Loss) Income — As of December 31, 2013, total accumulated other comprehensive loss was ($30.5) million which includes the following components: net unrealized loss on securities available for sale of ($30.5) million and unrealized gain on other asset investment of $79 thousand. As of December 31, 2012, total accumulated other comprehensive income was $4.7 million which includes the following components: net unrealized gain on securities available for sale of $4.6 million and unrealized gain on other asset investment of $26 thousand. As of December 31, 2011, total accumulated other comprehensive loss was ($33.9) million which includes the following components: net unrealized loss on securities available for sale of ($34.8) million, foreign exchange translation adjustment of $900 thousand and unrealized gain on other asset investment of $8 thousand. Activity in accumulated other comprehensive (loss) income, net of tax, for the years ended December 31, 2013, 2012, and 2011 was as follows:
|  | Unrealized gain (loss) on |  |  |  |  |  |  |
|  | investment securities |  | Foreign currency |  | Unrealized gain (loss) on |  |  |
|  | available-for-sale |  | translation adjustments |  | other asset investment |  | Total |
|  | (In thousands) |
Balance, December 31, 2010 |  | $ | (13,927) |  | $ | 1,664 |  | $ | (151) |  | $ | (12,414) |
Period Change |  | (20,921) |  | (764) |  | 159 |  | (21,526) |
Balance, December 31, 2011 |  | $ | (34,848) |  | $ | 900 |  | $ | 8 |  | $ | (33,940) |
Period Change |  | 39,491 |  | (900) |  | 18 |  | 38,609 |
Balance, December 31, 2012 |  | $ | 4,643 |  | $ | — |  | $ | 26 |  | $ | 4,669 |
Other comprehensive income before reclassifications |  | (28,169) |  | — |  | 336 |  | (27,833) |
Amounts reclassified from AOCI |  | (7,012) |  | — |  | (283) |  | (7,295) |
Net current period other comprehensive loss |  | (35,181) |  | — |  | 53 |  | (35,128) |
Balance, December 31, 2013 |  | $ | (30,538) |  | $ | — |  | $ | 79 |  | $ | (30,459) |
Reclassifications out of accumulated other comprehensive income for the year ended December 31, 2013, 2012, and 2011 was as follows:
|  | Amount Reclassified from |  |  |
Details about Accumulated Other |  | Accumulated Other |  | Affected Line Item in the Statement |
Comprehensive Income Components |  | Comprehensive Income |  | Where Net Income is Presented |
|  | (In thousands) |  |  |
Year Ended December 31, 2013 |  |  |  |  |
Investment securities available for sale |  |  |  |  |
Realized net gains on sale of securities |  | $ | 12,089 |  | Net gain on sales of investment securities |
|  | 12,089 |  |  |
|  | (5,077) |  | Tax expense |
|  | $ | 7,012 |  | Net of tax |
Other investments |  |  |  |  |
Realized net gains on sale of other investments |  | $ | 488 |  | Other operating income |
|  | 488 |  |  |
|  | (205) |  | Tax expense |
|  | $ | 283 |  | Net of tax |
Total reclassifications |  | $ | 7,295 |  |  |
Year Ended December 31, 2012 |  |  |  |  |
Investment securities available for sale |  |  |  |  |
Realized net gains on sale of securities |  | $ | 757 |  | Net gain on sales of investment securities |
|  | 757 |  |  |
|  | (318) |  | Tax expense |
|  | $ | 439 |  | Net of tax |
Other investments |  |  |  |  |
Realized net gains on sale of other investments |  | $ | 23 |  | Other operating income |
|  | 23 |  |  |
|  | (10) |  | Tax expense |
|  | $ | 13 |  | Net of tax |
Total reclassifications |  | $ | 452 |  |  |
Year Ended December 31, 2011 |  |  |  |  |
Investment securities available for sale |  |  |  |  |
Realized net gains on sale of securities |  | $ | 9,703 |  | Net gain on sales of investment securities |
|  | 9,703 |  |  |
|  | (4,075) |  | Tax expense |
|  | $ | 5,628 |  | Net of tax |
Other investments |  |  |  |  |
Realized net gains on sale of other investments |  | $ | 61 |  | Other operating income |
|  | 61 |  |  |
|  | (26) |  | Tax expense |
|  | $ | 35 |  | Net of tax |
Total reclassifications |  | $ | 5,663 |  |  |
The following table sets forth the tax effects allocated to each component of other comprehensive (loss) income for the years ended December 31, 2013, 2012, and 2011:
|  |  |  | Tax |  |  |
|  | Before-Tax |  | Expense |  | Net-of-Tax |
|  | Amount |  | or Benefit |  | Amount |
|  |  |  | (In thousands) |  |  |
For the year ended December 31, 2013 |  |  |  |  |  |  |
Unrealized gain on investment securities available-for-sale: |  |  |  |  |  |  |
Unrealized holding losses arising during period |  | $ | (48,567) |  | $ | 20,398 |  | $ | (28,169) |
Less: reclassification adjustment for gains included in income |  | (12,089) |  | 5,077 |  | (7,012) |
Net unrealized loss |  | (60,656) |  | 25,475 |  | (35,181) |
Noncredit-related impairment loss on securities |  | — |  | — |  | — |
Unrealized gain on other asset investment |  | 579 |  | (243) |  | 336 |
Less: reclassification adjustment for gains included in income |  | (488) |  | 205 |  | (283) |
Other comprehensive loss |  | $ | (60,565) |  | $ | 25,437 |  | $ | (35,128) |
|  |  |  | Tax |  |  |
|  | Before-Tax |  | Expense |  | Net-of-Tax |
|  | Amount |  | or Benefit |  | Amount |
|  |  |  | (In thousands) |  |  |
For the year ended December 31, 2012 |  |  |  |  |  |  |
Unrealized gain on investment securities available-for-sale: |  |  |  |  |  |  |
Unrealized holding gains arising during period |  | $ | 73,910 |  | $ | (31,042) |  | $ | 42,868 |
Less: reclassification adjustment for gains included in income |  | (757) |  | 318 |  | (439) |
Net unrealized gains |  | 73,153 |  | (30,724) |  | 42,429 |
Noncredit-related impairment loss on securities |  | (5,066) |  | 2,128 |  | (2,938) |
Foreign currency translation adjustments |  | (1,552) |  | 652 |  | (900) |
Unrealized gain on other asset investment |  | 53 |  | (22) |  | 31 |
Less: reclassification adjustment for gains included in income |  | (23) |  | 10 |  | (13) |
Other comprehensive income |  | $ | 66,565 |  | $ | (27,956) |  | $ | 38,609 |
|  |  |  | Tax |  |  |
|  | Before-Tax |  | Expense |  | Net-of-Tax |
|  | Amount |  | or Benefit |  | Amount |
|  |  |  | (In thousands) |  |  |
For the year ended December 31, 2011 |  |  |  |  |  |  |
Unrealized loss on investment securities available-for-sale: |  |  |  |  |  |  |
Unrealized holding loss arising during period |  | $ | (21,264) |  | $ | 8,931 |  | $ | (12,333) |
Less: reclassification adjustment for gains included in income |  | (9,703) |  | 4,075 |  | (5,628) |
Net unrealized loss |  | (30,967) |  | 13,006 |  | (17,961) |
Noncredit-related impairment loss on securities |  | (5,103) |  | 2,143 |  | (2,960) |
Foreign currency translation adjustments |  | (1,317) |  | 553 |  | (764) |
Unrealized gain on other asset investment |  | 334 |  | (140) |  | 194 |
Less: reclassification adjustment for gains included in income |  | (61) |  | 26 |  | (35) |
Other comprehensive loss |  | $ | (37,114) |  | $ | 15,588 |  | $ | (21,526) |

X
- Details
Name: | ewbc_StockholdersEquityNoteAndEarningsPerShareDisclosureAbstract
Namespace Prefix: | ewbc_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). It also includes disclosure for earnings per share. + References No definition available. + Details
Name: | ewbc_StockholdersEquityNoteAndEarningsPerShareDisclosureTextBlock
Namespace Prefix: | ewbc_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration