PARENT COMPANY FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2012

PARENT COMPANY FINANCIAL STATEMENTS

PARENT COMPANY FINANCIAL STATEMENTS

25. PARENT COMPANY FINANCIAL STATEMENTS

The financial information of East West Bancorp, Inc. as of December 31, 2012 and 2011 and for the years ended December 31, 2012, 2011 and 2010 are as follows:

BALANCE SHEETS

	December 31,
	2012			2011
	(In thousands)
ASSETS
Cash and cash equivalents	$	64,489		$	9,287
Investment in subsidiaries	2,450,058			2,436,574
Other investments	3,083			538
Other assets	5,122			3,012
TOTAL	$	2,522,752		$	2,449,411
LIABILITIES AND STOCKHOLDERS’ EQUITY
Long-term debt	$	137,178		$	137,178
Other liabilities	3,452			490
Total liabilities	140,630			137,668
STOCKHOLDERS’ EQUITY
Preferred stock (par value $0.001 per share)
Authorized — 5,000,000 shares
Issued — 200,000 shares in Series A, non-cumulative convertible
preferred stock in 2012 and 2011
Outstanding — 85,710 shares in 2012 and 2011	83,027			83,027
Common stock (par value $0.001 per share)
Authorized — 200,000,000 shares
Issued — 157,160,193 shares in 2012 and 156,798,011 shares in 2011
Outstanding — 140,294,092 shares in 2012 and 149,327,907 shares in 2011	157			157
Additional paid in capital	1,464,739			1,443,883
Retained earnings	1,151,828			934,617
Treasury stock, at cost — 16,866,101 shares in 2012 and 7,470,104 shares in 2011	(322,298		)	(116,001		)
Accumulated other comprehensive income (loss), net of tax	4,669			(33,940		)
Total stockholders’ equity	2,382,122			2,311,743
TOTAL	$	2,522,752		$	2,449,411

STATEMENTS OF INCOME

	Year Ended December 31,
	2012			2011		2010
				(In thousands)
Dividends from subsidiaries	$	324,094		$	72,129	$	85,158
Interest income	—			—		1,095
Gain on sales of investment securities available-for-sale	—			—		556
Other income	2			372		3
Total income	324,096			72,501		86,812
Interest expense	3,092			4,734		5,302
Compensation and net occupancy reimbursement to subsidiary	2,573			2,537		2,921
Other expense	1,309			2,339		2,132
Total expense	6,974			9,610		10,355
Income before income taxes and equity in undistributed income of subsidiaries	317,122			62,891		76,457
Income tax benefit	2,892			3,830		3,592
Equity in undistributed (loss) income of subsidiaries	(38,364		)	178,513		84,515
Net income	$	281,650		$	245,234	$	164,564

STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2012			2011			2010
				(In thousands)
Cash flows from operating activities:
Net income	$	281,650		$	245,234		$	164,564
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed (income) of subsidiaries	(285,636		)	(250,513		)	(169,515		)
Depreciation and amortization	445			1,034			623
Prepayment penalty on other borrowings	—			526			—
Stock compensation costs	—			1,767			8,761
Gain on sale of investment securities available-for-sale	—			—			(556		)
Tax (benefit) provision from stock plans	(462		)	(717		)	170
Net change in other assets	322,361			73,797			83,395
Net change in other liabilities	(259		)	(3,709		)	(596		)
Net cash provided by operating activities	318,099			67,419			86,846
Cash flows from investing activities:
Purchases of:
Investment securities available-for-sale	—			—			(20,746		)
Proceeds from:
Redemption of certificates of deposit	—			198			17,516
Sale/call of investment securities available-for-sale	—			—			48,224
Net cash provided by investing activities	—			198			44,994
Cash flows from financing activities:
Payment for:
Repayment of long-term debt	—			(23,918		)	—
Purchase of treasury shares	(3,012		)	(649		)	(1,207		)
Cash dividends on preferred stock	(6,857		)	(6,857		)	(24,060		)
Cash dividends on common stock	(57,361		)	(23,822		)	(5,545		)
Repurchase of Series B preferred stock	—			—			(306,546		)
Repurchase of common stock warrants	—			(14,500		)	—
Repurchase of shares of treasury stock pursuant to the Stock Repurchase Plan	(199,950		)	—			—
Proceeds from:
Issuance of common stock pursuant to various stock plans and agreements	3,821			5,726			4,454
Tax benefit (provision) from stock plans	462			717			(170		)
Net cash (used in) provided by financing activities	(262,897		)	(63,303		)	(333,074		)
Net increase (decrease) in cash and cash equivalents	55,202			4,314			(201,234		)
Cash and cash equivalents, beginning of year	9,287			4,973			206,207
Cash and cash equivalents, end of year	$	64,489		$	9,287		$	4,973
Supplemental Cash Flow Information:
Cash paid during the year for:
Interest	$	3,112		$	5,167		$	5,306
Noncash financing activities:
Conversion of preferred stock to common stock	—			31			325,299
Amortization of preferred stock discount	—			—			21,042
Issuance of common stock in lieu of Board of Director retainer fees	570			520			281