Stockholders’ Equity and Earnings Per Share

12 Months Ended

Dec. 31, 2020

Stockholders’ Equity and Earnings Per Share

The following table presents the basic and diluted EPS calculations for the years ended December 31, 2020, 2019 and 2018. 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 this Form 10-K.



($ and shares in thousands, except per share data)	Year Ended December 31,
	2020		2019		2018
Basic:
Net income	$	567,797	$	674,035	$	703,701

Basic weighted-average number of shares outstanding	142,336		145,497		144,862
Basic EPS	$	3.99	$	4.63	$	4.86
Diluted:
Net income	$	567,797	$	674,035	$	703,701

Basic weighted-average number of shares outstanding (1)	142,336		145,497		144,862
Diluted potential common shares (1)(2)	655		682		1,307
Diluted weighted-average number of shares outstanding (1)(2)	142,991		146,179		146,169
Diluted EPS	$	3.97	$	4.61	$	4.81

(1)The Company acquired MetroCorp Bancshares, Inc. (“MetroCorp”) on January 17, 2014. Prior to the acquisition, MetroCorp had outstanding warrants to purchase 771,429 shares of its common stock. Upon the acquisition, the rights of the warrant holders were converted into the rights to acquire 230,282 shares of East West’s common stock until January 16, 2019. All warrants were exercised on January 7, 2019.

(2)Includes dilutive shares from RSUs for the years ended December 31, 2020 and 2019, and from RSUs and warrants for the year ended December 31, 2018.

For the years ended December 31, 2020, 2019 and 2018, 134 thousand, 15 thousand and 10 thousand weighted-average shares of anti-dilutive RSUs, respectively, were excluded from the diluted EPS computation.

Stock Repurchase Program — On March 3, 2020, the Company’s Board of Directors authorized a stock repurchase program to buy back up to $500.0 million of the Company’s common stock. For the year ended December 31, 2020, the Company repurchased 4,471,682 shares at an average price of $32.64 per share and a total cost of $146.0 million. The Company did not repurchase any shares during the years ended December 31, 2019 and 2018.