Stockholders' Equity and Earnings Per Share

9 Months Ended

Sep. 30, 2019

Stockholders' Equity and Earnings Per Share [Abstract]

Stockholders' Equity and Earnings Per Share

Stockholders’ Equity and Earnings Per Share

Warrant — The Company acquired MetroCorp Bancshares, Inc., on January 17, 2014. Prior to the acquisition, MetroCorp Bancshares, Inc. 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.

Earnings Per Share — Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period, plus any incremental dilutive common share equivalents calculated for warrants and RSUs outstanding using the treasury stock method.

The following table presents the EPS calculations for the three and nine months ended September 30, 2019 and 2018:




($ and shares in thousands, except per share data)	Three Months Ended September 30,				Nine Months Ended September 30,
($ and shares in thousands, except per share data)	2019		2018		2019		2018
Basic:
Net income	$	171,416	$	171,302	$	485,820	$	530,683

Basic weighted-average number of shares outstanding	145,559		144,921		145,455		144,829
Basic EPS	$	1.18	$	1.18	$	3.34	$	3.66

Diluted:
Net income	$	171,416	$	171,302	$	485,820	$	530,683

Basic weighted-average number of shares outstanding	145,559		144,921		145,455		144,829
Diluted potential common shares ⁽¹⁾	561		1,252		633		1,329
Diluted weighted-average number of shares outstanding ⁽¹⁾	146,120		146,173		146,088		146,158
Diluted EPS	$	1.17	$	1.17	$	3.33	$	3.63


(1)	Includes dilutive shares from RSUs for the three and nine months ended September 30, 2019, and from RSUs and warrants for the three and nine months ended September 30, 2018.

For the three and nine months ended September 30, 2019, 564 thousand and 277 thousand weighted-average shares of anti-dilutive RSUs, respectively, were excluded from the diluted EPS computation. In comparison, 7,344 and 6,371 weighted-average shares of anti-dilutive RSUs, respectively, were excluded from the diluted EPS computation for the three and nine months ended September 30, 2018.