XML 43 R27.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Parent Company Condensed Financial Statements | 12 Months Ended
--- | ---
Dec. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract] |
Parent Company Condensed Financial Statements | Parent Company Condensed Financial Statements The principal sources of East West’s income (on a Parent Company-only basis) are dividends from the Bank. In addition to dividend restrictions set forth in statutes and regulations, the banking agencies have the authority to prohibit or to limit the Bank from paying dividends, if, in the banking regulator’s opinion, payment of a dividend would constitute an unsafe or unsound practice in light of the financial condition of the Bank. The Bank declared $255.0 million and $100.0 million of dividends to East West during the years ended December 31, 2017 and 2016, respectively. The Bank did no t declare any dividends to East West during the year ended December 31, 2015. For information on the statutory and regulatory limitations on the ability of the Company to pay dividends to its stockholders and on the Bank to pay dividends to East West, see Item 1. Business — Supervision and Regulation — Dividends and Other Transfers of Funds. The following tables present the Parent Company-only condensed financial statements: CONDENSED BALANCE SHEET
($ in thousands, except shares) |  | December 31,
| 2017 |  | 2016
ASSETS |  |  |  |
Cash placed with subsidiary bank |  | $ | 159,566 |  |  | $ | 39,264 |
Available-for-sale investment securities, at fair value |  | — |  |  | 9,338 |
Investments in subsidiaries: |  |  |  |
Bank |  | 3,830,696 |  |  | 3,546,984 |
Nonbank |  | 3,664 |  |  | 5,675 |
Investments in tax credit investments, net |  | 25,511 |  |  | 32,245 |
Other assets |  | 7,062 |  |  | 4,812 |
TOTAL |  | $ | 4,026,499 |  |  | $ | 3,638,318 |
LIABILITIES |  |  |  |  |  |
Long-term debt |  | $ | 171,577 |  |  | $ | 186,327 |
Other liabilities |  | 12,971 |  |  | 24,250 |
Total liabilities |  | 184,548 |  |  | 210,577 |
STOCKHOLDERS’ EQUITY |  |  |  |
Common stock, $0.001 par value, 200,000,000 shares authorized; 165,214,770 and 164,604,072 shares issued in 2017 and 2016, respectively |  | 165 |  |  | 164 |
Additional paid-in capital |  | 1,755,330 |  |  | 1,727,434 |
Retained earnings |  | 2,576,302 |  |  | 2,187,676 |
Treasury stock, at cost — 20,671,710 shares in 2017 and 20,436,621 shares in 2016 |  | (452,327 | ) |  | (439,387 | )
Accumulated other comprehensive loss, net of tax |  | (37,519 | ) |  | (48,146 | )
Total stockholders’ equity |  | 3,841,951 |  |  | 3,427,741 |
TOTAL |  | $ | 4,026,499 |  |  | $ | 3,638,318 |
CONDENSED STATEMENT OF INCOME
($ in thousands) |  | Year Ended December 31,
| 2017 |  | 2016 |  | 2015
Dividends from subsidiaries: |  |  |  |  |  |
Bank |  | $ | 255,000 |  |  | $ | 100,000 |  |  | $ | — |
Nonbank |  | 4,118 |  |  | 107 |  |  | 88 |
Other income |  | 721 |  |  | 610 |  |  | 625 |
Total income |  | 259,839 |  |  | 100,717 |  |  | 713 |
Interest expense |  | 5,429 |  |  | 5,017 |  |  | 4,636 |
Compensation and employee benefits |  | 5,065 |  |  | 5,001 |  |  | 5,350 |
Amortization of tax credit and other investments |  | 5,908 |  |  | 13,851 |  |  | 22,466 |
Other expense |  | 1,257 |  |  | 1,218 |  |  | 2,399 |
Total expense |  | 17,659 |  |  | 25,087 |  |  | 34,851 |
Income (loss) before income tax benefit and equity in undistributed income of subsidiaries |  | 242,180 |  |  | 75,630 |  |  | (34,138 | )
Income tax benefit |  | 18,182 |  |  | 26,041 |  |  | 30,849 |
Undistributed earnings of subsidiaries, primarily bank |  | 245,262 |  |  | 330,006 |  |  | 387,966 |
Net income |  | $ | 505,624 |  |  | $ | 431,677 |  |  | $ | 384,677 |
CONDENSED STATEMENT OF CASH FLOWS
($ in thousands) |  | Year Ended December 31,
| 2017 |  | 2016 |  | 2015
CASH FLOWS FROM OPERATING ACTIVITIES |  |  |  |  |  |
Net income |  | $ | 505,624 |  |  | $ | 431,677 |  |  | $ | 384,677 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |
Undistributed earnings of subsidiaries, principally bank |  | (245,262 | ) |  | (330,006 | ) |  | (387,966 | )
Amortization expenses |  | 6,158 |  |  | 14,094 |  |  | 22,870 |
Deferred income tax expense |  | 940 |  |  | 6,349 |  |  | 17,555 |
Gains on sales of available-for-sale investment securities |  | (326 | ) |  | — |  |  | (20 | )
Net change in other assets |  | (3,341 | ) |  | 39,929 |  |  | (42,292 | )
Net change in other liabilities |  | (560 | ) |  | 794 |  |  | (15,887 | )
Net cash provided by (used in) operating activities |  | 263,233 |  |  | 162,837 |  |  | (21,063 | )
CASH FLOWS FROM INVESTING ACTIVITIES |  |  |  |  |  |
Net increase in investments in tax credit and other investments, net |  | (9,777 | ) |  | (6,554 | ) |  | (35,633 | )
Purchases of available-for-sale investment securities |  | (9,000 | ) |  | — |  |  | — |
Proceeds from the sale of available-for-sale investment securities |  | 18,326 |  |  | — |  |  | 20 |
Net cash used in investing activities |  | (451 | ) |  | (6,554 | ) |  | (35,613 | )
CASH FLOWS FROM FINANCING ACTIVITIES |  |  |  |  |  |
Proceeds from issuance of common stock pursuant to various stock compensation plans and agreements |  | 2,280 |  |  | 2,081 |  |  | 2,835 |
Payments for: |  |  |  |  |  |
Repayment of long-term debt |  | (15,000 | ) |  | (20,000 | ) |  | (20,000 | )
Repurchase of vested shares due to employee tax liability |  | (12,940 | ) |  | (3,225 | ) |  | (5,964 | )
Cash dividends on common stock |  | (116,820 | ) |  | (115,828 | ) |  | (115,641 | )
Other net financing activities |  | — |  |  | 1,055 |  |  | 3,291 |
Net cash used in financing activities |  | (142,480 | ) |  | (135,917 | ) |  | (135,479 | )
Net increase (decrease) in cash and cash equivalents |  | 120,302 |  |  | 20,366 |  |  | (192,155 | )
Cash and cash equivalents, beginning of year |  | 39,264 |  |  | 18,898 |  |  | 211,053 |
Cash and cash equivalents, end of year |  | $ | 159,566 |  |  | $ | 39,264 |  |  | $ | 18,898 |

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

X
- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.7-05(c)(Schedule II)) -URI http://asc.fasb.org/extlink&oid=6879921&loc=d3e569147-122900 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=96868048&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 235 -Section S99 -Paragraph 2 -Subparagraph (SX 210.9-06) -URI http://asc.fasb.org/extlink&oid=6882215&loc=d3e537971-122884 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(c)(Schedule I)) -URI http://asc.fasb.org/extlink&oid=27047687&loc=d3e5864-122674 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 + Details
Name: | us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration