EAST WEST BANCORP INC
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
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12 — Stockholders’ Equity and Earnings Per Share
Note 12 —Stockholders’ Equity and Earnings Per Share
The following table presents the basic and diluted EPS calculations for the three and six months ended June 30, 2025 and 2024. For more information on the calculation of EPS, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Earnings Per Share to the Consolidated Financial Statements in the Company’s 2024 Form 10-K.
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| ($ and shares in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 |
| Basic: | ||||
| Net income | $310,253 | $288,230 | $600,523 | $573,305 |
| Weighted-average number of shares outstanding | 137,818 | 138,980 | 138,009 | 139,195 |
| Basic EPS | $2.25 | $2.07 | $4.35 | $4.12 |
| Diluted: | ||||
| Net income | $310,253 | $288,230 | $600,523 | $573,305 |
| Weighted-average number of shares outstanding | 137,818 | 138,980 | 138,009 | 139,195 |
| Add: Dilutive impact of unvested RSUs | 971 | 821 | 1,049 | 852 |
| Diluted weighted-average number of shares outstanding | 138,789 | 139,801 | 139,058 | 140,047 |
| Diluted EPS | $2.24 | $2.06 | $4.32 | $4.09 |
Approximately 64 thousand and 55 thousand weighted-average shares of anti-dilutive RSUs were excluded from the diluted EPS computations for the three and six months ended June 30, 2025, respectively. For both the three and six months ended June 30, 2024, approximately 3 thousand weighted-average shares of anti-dilutive RSUs were excluded from the diluted EPS computations.
Stock Repurchase Program— On January 22, 2025, the Company’s Board of Directors authorized a stock repurchase of $300 million of the Company’s common stock. The Company repurchased $3 millionand $88 million of common stock for the three and six months ended June 30, 2025, respectively, and$41 million and$123 million of common stock for the three and six months ended June 30, 2024, respectively.
Note 13 —Accumulated Other Comprehensive Income (Loss)
The following tables present the changes in the components of AOCI balances for the three and six months ended June 30, 2025 and 2024:
| ($ in thousands) | Debt Securities (1) | Cash Flow Hedges | Foreign Currency Translation Adjustments (2) | Total |
|---|---|---|---|---|
| Balance, April 1, 2024 | $(601,510) | $(43,706) | $(17,517) | $(662,733) |
| Net unrealized gains (losses) arising during the period | 8,773 | (17,678) | (1,311) | (10,216) |
| Amounts reclassified from AOCI | 1,451 | 17,325 | — | 18,776 |
| Changes, net of tax | 10,224 | (353) | (1,311) | 8,560 |
| Balance, June 30, 2024 | $(591,286) | $(44,059) | $(18,828) | $(654,173) |
| Balance, April 1, 2025 | $(482,175) | $10,493 | $(23,333) | $(495,015) |
| Net unrealized gains (losses) arising during the period | 14,926 | 14,045 | (1,103) | 27,868 |
| Amounts reclassified from AOCI | 683 | 4,084 | — | 4,767 |
| Changes, net of tax | 15,609 | 18,129 | (1,103) | 32,635 |
| Balance, June 30, 2025 | $(466,566) | $28,622 | $(24,436) | $(462,380) |
| ($ in thousands) | Debt Securities (1) | Cash Flow Hedges | Foreign Currency Translation Adjustments (2) | Total |
|---|---|---|---|---|
| Balance, January 1, 2024 | $(601,881) | $2,624 | $(21,339) | $(620,596) |
| Net unrealized gains (losses) arising during the period | 6,491 | (81,340) | 2,511 | (72,338) |
| Amounts reclassified from AOCI | 4,104 | 34,657 | — | 38,761 |
| Changes, net of tax | 10,595 | (46,683) | 2,511 | (33,577) |
| Balance, June 30, 2024 | $(591,286) | $(44,059) | $(18,828) | $(654,173) |
| Balance, January 1, 2025 | $(542,152) | $(20,787) | $(22,321) | $(585,260) |
| Net unrealized gains (losses) arising during the period | 72,303 | 40,370 | (2,115) | 110,558 |
| Amounts reclassified from AOCI | 3,283 | 9,039 | — | 12,322 |
| Changes, net of tax | 75,586 | 49,409 | (2,115) | 122,880 |
| Balance, June 30, 2025 | $(466,566) | $28,622 | $(24,436) | $(462,380) |
(1)Includes after-tax unamortized losses related to AFS debt securities that were transferred to HTM in 2022.
(2)Represents foreign currency translation adjustments related to the Company’s net investment in non-U.S. operations, including related hedges. The functional currency and reporting currency of the Company’s foreign subsidiary was RMB and USD, respectively.
The following tables present the components of other comprehensive income (loss), reclassifications to net income and the related tax effects for the three and six months ended June 30, 2025 and 2024:
| Three Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||
| ($ in thousands) | Before-Tax | Tax Effect | Net-of-Tax | Before-Tax | Tax Effect | Net-of-Tax |
| Debt securities: | ||||||
| Net unrealized gains arising during the period | $31,958 | $(17,032) | $14,926 | $12,421 | $(3,648) | $8,773 |
| Reclassification adjustments: | ||||||
| Net realized gains on AFS debt securities reclassified into net income (1) | (746) | 208 | (538) | (1,785) | 528 | (1,257) |
| Amortization of unrealized losses on transferred securities (2) | 3,772 | (2,551) | 1,221 | 3,845 | (1,137) | 2,708 |
| Net change | 34,984 | (19,375) | 15,609 | 14,481 | (4,257) | 10,224 |
| Cash flow hedges: | ||||||
| Net unrealized gains (losses) arising during the period | 18,728 | (4,683) | 14,045 | (25,095) | 7,417 | (17,678) |
| Net realized losses reclassified into net income (3) | 5,531 | (1,447) | 4,084 | 24,594 | (7,269) | 17,325 |
| Net change | 24,259 | (6,130) | 18,129 | (501) | 148 | (353) |
| Foreign currency translation adjustments, net of hedges: | ||||||
| Net unrealized losses arising during the period | (1,330) | 227 | (1,103) | (1,311) | — | (1,311) |
| Net change | (1,330) | 227 | (1,103) | (1,311) | — | (1,311) |
| Other comprehensive income | $57,913 | $(25,278) | $32,635 | $12,669 | $(4,109) | $8,560 |
| Six Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||
| ($ in thousands) | Before-Tax | Tax Effect | Net-of-Tax | Before-Tax | Tax Effect | Net-of-Tax |
| Debt securities: | ||||||
| Net unrealized gains arising during the period | $113,496 | $(41,193) | $72,303 | $9,139 | $(2,648) | $6,491 |
| Reclassification adjustments: | ||||||
| Net realized gains on AFS debt securities reclassified into net income (1) | (877) | 247 | (630) | (1,834) | 542 | (1,292) |
| Amortization of unrealized losses on transferred securities (2) | 7,594 | (3,681) | 3,913 | 7,661 | (2,265) | 5,396 |
| Net change | 120,213 | (44,627) | 75,586 | 14,966 | (4,371) | 10,595 |
| Cash flow hedges: | ||||||
| Net unrealized gains (losses) arising during the period | 56,194 | (15,824) | 40,370 | (115,471) | 34,131 | (81,340) |
| Net realized losses reclassified into net income (3) | 12,583 | (3,544) | 9,039 | 49,199 | (14,542) | 34,657 |
| Net change | 68,777 | (19,368) | 49,409 | (66,272) | 19,589 | (46,683) |
| Foreign currency translation adjustments, net of hedges: | ||||||
| Net unrealized (losses) gains arising during the period | (2,342) | 227 | (2,115) | 2,684 | (173) | 2,511 |
| Net change | (2,342) | 227 | (2,115) | 2,684 | (173) | 2,511 |
| Other comprehensive income (loss) | $186,648 | $(63,768) | $122,880 | $(48,622) | $15,045 | $(33,577) |
(1)Pre-tax amounts were reported in Net gains on AFS debt securitieson the Consolidated Statement of Income.
(2)Represents unrealized losses amortized over the remaining lives of securities that were transferred from the AFS to HTM portfolio in 2022.
(3)Pre-tax amounts related to cash flow hedges on variable rate loans were reported in Interest and dividend income on the Consolidated Statement of Income.
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