XML 70 R18.htm IDEA: XBRL DOCUMENT
v3.3.0.814

INVESTMENTS IN QUALIFIED AFFORDABLE HOUSING PARTNERSHIPS, TAX CREDIT AND OTHER INVESTMENTS, NET | 9 Months Ended
--- | ---
Sep. 30, 2015
INVESTMENTS IN QUALIFIED AFFORDABLE HOUSING PARTNERSHIPS, TAX CREDIT AND OTHER INVESTMENTS, NET |
INVESTMENTS IN QUALIFIED AFFORDABLE HOUSING PARTNERSHIPS, TAX CREDIT AND OTHER INVESTMENTS, NET | NOTE 10 — INVESTMENTS IN QUALIFIED AFFORDABLE HOUSING PARTNERSHIPS, TAX CREDIT AND OTHER INVESTMENTS, NET The Community Reinvestment Act (“CRA”) encourages banks to meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes. The Company invests in certain affordable housing limited partnerships that qualify for CRA credits. Such limited partnerships are formed to develop and operate apartment complexes designed as high-quality affordable housing for lower income tenants throughout the United States. Each of the partnerships must meet the regulatory requirements for affordable housing for a minimum 15-year compliance period to fully utilize the tax credits. In addition to affordable housing limited partnerships, the Company invests in new market tax credit projects that qualify for CRA credits. The Company also invests in eligible projects that qualify for renewable energy and historic tax credits. Investments in renewable energy tax credits help promote the development of renewable energy sources, while the investments in historic tax credits promote the rehabilitation of historic buildings and economic revitalization of the surrounding areas. Investments in Qualified Affordable Housing Partnerships, Net As discussed in Note 2 — Current Accounting Developments to the Consolidated Financial Statements, the Company adopted ASU 2014-01 on January 1, 2015 with retrospective application to all periods presented. Prior to adopting ASU 2014-01, the Company applied the equity method or the cost method of accounting depending on the ownership percentage and the influence the Company has on these limited partnerships. The amortization of the investments in affordable housing limited partnerships was previously presented under noninterest expense in the accompanying consolidated statements of income. Under the proportional amortization method, the Company now amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the amortization in the Consolidated Statements of Income as a component of income tax expense. The following tables present the impact of the new accounting guidance on the Consolidated Balance Sheet and the Consolidated Statements of Income as of the periods indicated:
|  | December 31, 2014
($ in thousands) |  | As Previously Reported |  | As Revised
Consolidated Balance Sheet: |  |  |  |
Investments in qualified affordable housing partnerships, net |  | $ | 178,652 |  |  | $ | 178,962 |
Other assets — deferred tax assets |  | $ | 384,367 |  |  | $ | 389,601 |
Retained earnings |  | $ | 1,598,598 |  |  | $ | 1,604,141 |
|  | Three Months Ended September 30, 2014 |  | Nine Months Ended September 30, 2014
($ in thousands, except per share data) |  | As Previously Reported |  | As Revised |  | As Previously Reported |  | As Revised
Consolidated Statements of Income: |  |  |  |  |  |  |  |
Noninterest expense — amortization of tax credit and other investments |  | $ | 36,936 |  |  | $ | 26,749 |  |  | $ | 55,751 |  |  | $ | 33,731 |
Income before income taxes |  | $ | 75,112 |  |  | $ | 85,299 |  |  | $ | 302,408 |  |  | $ | 324,428 |
Income tax (benefit) expense |  | $ | (13,644 | ) |  | $ | (6,601 | ) |  | $ | 52,923 |  |  | $ | 74,052 |
Net income |  | $ | 88,756 |  |  | $ | 91,900 |  |  | $ | 249,485 |  |  | $ | 250,376 |
Earnings Per Share |  |  |  |  |  |  |  |
Basic |  | $ | 0.62 |  |  | $ | 0.64 |  |  | $ | 1.74 |  |  | $ | 1.75 |
Diluted |  | $ | 0.62 |  |  | $ | 0.64 |  |  | $ | 1.74 |  |  | $ | 1.74 |
The following table presents the balances of the Company’s investments in qualified affordable housing partnerships, net and related unfunded commitments as of September 30, 2015 and December 31, 2014:
($ in thousands) |  | September 30, 2015 |  | December 31, 2014
Investments in qualified affordable housing partnerships, net |  | $ | 170,213 |  |  | $ | 178,962 |
Accrued expenses and other liabilities — Unfunded commitments |  | $ | 41,985 |  |  | $ | 43,311 |
The following table presents other information related to the Company’s investments in qualified affordable housing partnerships, net for the periods indicated:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
($ in thousands) |  | 2015 |  | 2014 |  | 2015 |  | 2014
Tax credits and other tax benefits recognized |  | $ | 9,237 |  |  | $ | 7,932 |  |  | $ | 26,617 |  |  | $ | 23,373 |
Amortization expense included in income tax expense |  | $ | 6,348 |  |  | $ | 5,357 |  |  | $ | 18,744 |  |  | $ | 16,071 |
Investments in Tax Credit and Other Investments, Net Investments in tax credit and other investments, net were $151.8 million and $110.1 million as of September 30, 2015 and December 31, 2014, respectively, and were included in other assets on the Consolidated Balance Sheets. The Company is not the primary beneficiary in these partnerships and, therefore, is not required to consolidate its investments in tax credit and other investments on the Consolidated Financial Statements. Depending on the ownership percentage and the influence the Company has on a limited partnership, the Company applies either the equity or cost method of accounting. Total unfunded commitments for these investments of $97.8 million and $71.4 million as of September 30, 2015 and December 31, 2014, respectively, were included in accrued expenses and other liabilities on the Consolidated Balance Sheets. Amortization of tax credit and other investments was $12.3 million and $26.7 million for the three months ended September 30, 2015 and 2014, respectively. Amortization of tax credit and other investments was $21.6 million and $33.7 million for the nine months ended September 30, 2015 and 2014, respectively.

X
- Definition The entire disclosure for affordable housing programs and other tax credit investments. + References No definition available. + Details
Name: | ewbc_AffordableHousingProgramAndOtherTaxCreditInvestmentsTextBlock
Namespace Prefix: | ewbc_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | ewbc_InvestmentsInAffordableHousingPartnershipsAndOtherTaxCreditInvestmentsDisclosureAbstract
Namespace Prefix: | ewbc_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration