NOTE 21 — PARENT COMPANY CONDENSED FINANCIAL STATEMENTS

The financial information of East West Bancorp, Inc. as of December 31, 2015 and 2014 and for the years ended December 31, 2015, 2014 and 2013 are as follows:

CONDENSED BALANCE SHEETS




($ in thousands)	December 31,
($ in thousands)	2015			2014
ASSETS
Cash and cash equivalents	$	18,898		$	211,053
Available-for-sale investment securities, at fair value	8,731			8,370
Investment in subsidiaries ⁽¹⁾	3,233,206			2,847,227
Tax credit investments, net	47,488			41,054
Other assets	46,894			22,474
TOTAL ⁽¹⁾	$	3,355,217		$	3,130,178
LIABILITIES
Long-term debt	$	206,084		$	225,848
Other liabilities	26,183			48,219
Total liabilities	232,267			274,067
STOCKHOLDERS’ EQUITY
Common stock, $0.001 par value, 200,000,000 shares authorized; 164,246,517 and 163,772,218 shares issued in 2015 and 2014, respectively.	164			164
Additional paid in capital	1,701,295			1,677,767
Retained earnings ⁽¹⁾	1,872,594			1,604,141
Treasury stock at cost—20,337,284 shares in 2015 and 20,189,989 shares in 2014.	(436,162		)	(430,198		)
Accumulated other comprehensive (loss) income, net of tax	(14,941		)	4,237
Total stockholders’ equity ⁽¹⁾	3,122,950			2,856,111
TOTAL ⁽¹⁾	$	3,355,217		$	3,130,178


(1)	Prior periods were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company’s investments in qualified affordable housing projects ASU 2014-01. Please see Note 9 — Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net to the Consolidated Financial Statements for additional information.

CONDENSED STATEMENTS OF INCOME




($ in thousands)	Year Ended December 31,
($ in thousands)	2015			2014		2013
Dividends from subsidiaries	$	88		$	111,701	$	319,085
Other income	625			7,414		821
Total income	713			119,115		319,906
Interest expense	4,636			4,823		3,436
Compensation and net occupancy reimbursement to subsidiary	5,386			4,039		3,662
Other expense	24,829			50,280		12,677
Total expense	34,851			59,142		19,775
(Loss) income before income tax benefit and equity in undistributed income (loss) of subsidiaries	(34,138		)	59,973		300,131
Income tax benefit	30,849			80,674		22,885
Equity in undistributed income (loss) of subsidiaries ⁽¹⁾	387,966			205,231		(29,692		)
Net income ⁽¹⁾	$	384,677		$	345,878	$	293,324


(1)	Prior periods were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company’s investments in qualified affordable housing projects ASU 2014-01. Please see Note 9 — Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net to the Consolidated Financial Statements for additional information.

CONDENSED STATEMENTS OF CASH FLOWS




($ in thousands)	Year Ended December 31,
($ in thousands)	2015			2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ⁽¹⁾	$	384,677		$	345,878		$	293,324
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income of subsidiaries ⁽¹⁾	(387,965		)	(317,620		)	(289,309		)
Depreciation and amortization	22,870			46,365			8,806
Gains on sales of available-for-sale investment securities and other investments	(20		)	(4,357		)	(161		)
Tax benefit from stock compensation plans, net	(3,291		)	(6,513		)	(5,522		)
Net change in other assets and other liabilities	(37,334		)	186,382			293,112
Net cash (used in) provided by operating activities	(21,063		)	250,135			300,250
CASH FLOWS FROM INVESTING ACTIVITIES
Net increase in tax credit investments	(35,633		)	(53,071		)	(12,970		)
Purchases of:
Available-for-sale investment securities	—			(9,000		)	(69,986		)
Proceeds from sale of:
Available-for-sale investment securities	20			74,002			—
Net cash (used in) provided by investing activities	(35,613		)	11,931			(82,956		)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from:
Increase in long-term borrowings	—			—			100,000
Issuance of common stock pursuant to various stock plans and agreements	2,835			6,794			3,054
Payments for:
Repayment of long-term debt	(20,000		)	(30,310		)	(10,310		)
Repurchase of vested shares due to employee tax liability	(5,964		)	(10,326		)	(13,833		)
Repurchase of shares of treasury stock pursuant to the Stock Repurchase Plan	—			—			(199,992		)
Cash dividends on common stock	(115,641		)	(103,618		)	(82,862		)
Cash dividends on preferred stock	—			—			(3,428		)
Tax benefit from stock compensation plans, net	3,291			6,513			5,522
Net cash used in financing activities	(135,479		)	(130,947		)	(201,849		)
Net (decrease) increase in cash and cash equivalents	(192,155		)	131,119			15,445
Cash and cash equivalents, beginning of year	211,053			79,934			64,489
Cash and cash equivalents, end of year	$	18,898		$	211,053		$	79,934
Supplemental Cash Flow Information:
Cash paid during the year for:
Interest	$	4,254		$	4,462		$	3,292
Noncash financing activities:
Conversion of preferred stock to common stock	$	—		$	—		$	83,027
Issuance of common stock related to acquisition	$	—		$	190,830		$	—


(1)	Prior periods were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company’s investments in qualified affordable housing projects ASU 2014-01. Please see Note 9 — Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net to the Consolidated Financial Statements for additional information.