EAST WEST BANCORP INC
For the period ended Dec 31, 2024. Filed Feb 28, 2025.
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FY2024 · Filed Feb 28, 2025
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Noninterest Expense
The following table presents the components of noninterest expense for the periods indicated:
| Year Ended December 31, | ||||
|---|---|---|---|---|
| ($ in thousands) | 2024 | 2023 | % Change from 2023 | 2022 |
| Compensation and employee benefits | $550,734 | $508,538 | 8% | $477,635 |
| Occupancy and equipment expense | 64,399 | 62,763 | 3% | 62,501 |
| Deposit account expense | 47,390 | 43,143 | 10% | 25,508 |
| Computer and software related expenses | 47,271 | 44,475 | 6% | 42,776 |
| Deposit insurance premiums and regulatory assessments | 45,736 | 103,308 | (56)% | 19,449 |
| Other operating expense | 148,301 | 140,222 | 6% | 118,166 |
| Amortization of tax credit and CRA investments | 54,242 | 120,299 | (55)% | 113,358 |
| Total noninterest expense | $958,073 | $1,022,748 | (6)% | $859,393 |
Noninterest expense was $1.0 billion in 2024, a decrease of $65 million or 6%, compared with 2023. The decrease was primarily due to lower amortization of tax credit and CRA investments, and deposit insurance premiums and regulatory assessments, partially offset by higher compensation and employee benefits, and other operating expense.
Compensation and employee benefits were $551 million in 2024, an increase of $42 million or 8%, compared with 2023. The year-over-year increase was primarily driven by annual merit increases and staffing growth.
Deposit insurance premiums and regulatory assessments were $46 million in 2024, a decrease of $58 million or 56%, compared with 2023. The year-over-year decrease was primarily due to a $9 million FDIC charge recorded in 2024, compared with the initial $70 million FDIC charge recorded in 2023. For additional information related to the FDIC charge, see Item 1. Business — Supervision and Regulation — FDIC Deposit Insurance Assessmentsin this Form 10-K.
Other operating expense was $148 million in 2024, an increase of $8 million or 6%, compared with 2023. The year-over-year increase was primarily due to write-downs of other real estate owned (“OREO”).
Amortization of tax credit and CRA investments was $54 million in 2024, a decrease of $66 million or 55%, compared with 2023. The year-over-year decrease was primarily due to the expanded application of the PAM since the adoption of ASU 2023-02, Investments — Equity Method and Joint Ventures on January 1, 2024, and the timing of tax credit investments that closed in a given period. For additional information on the PAM, see Note 1 — Summary of Significant Accounting Policiesand Note 7 — Affordable Housing Partnership, Tax Credit and Community Reinvestment Act Investments, Netto the Consolidated Financial Statements in this Form 10-K.
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