This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

East West Bancorp Reports Record Net Income For Full Year 2011 Of $245 Million; Increase In Annual Dividend Rate To $0.40 And New $200 Million Common Stock Repurchase Program

Stocks in this article: EWBC

Fourth Quarter 2011 Operating Results

Net Interest Income

The core net interest margin, excluding the net impact to interest income of $25.0 million resulting from covered loan activity and amortization of the FDIC indemnification asset, remained strong at 4.13% for the fourth quarter of 2011, as compared to 3.98% for the third quarter of 2011 and 4.43% for the fourth quarter of 2010. 1 Net interest income, adjusted for the net income of covered loan dispositions, totaled $204.0 million for the fourth quarter, an increase of 3% or $5.5 million from the third quarter of 2011 1.

The increase in both the core net interest margin and adjusted net interest income was primarily due to a reduction in the cost of deposits and an increase in loans receivable. In addition, although quarterly average interest-earning assets declined between the third and fourth quarters of 2011, the composition of interest earnings assets changed and thus resulted in an improvement in our yield on total interest-earning assets. Average loan balances for the fourth quarter totaled $14.3 billion, an increase of 2% or $259.6 million from the average loan balances for the third quarter. The impact of the increase in average loan balances was partially offset by a decrease in the loan yield on noncovered loans. The yield on noncovered loans was 4.76% for the fourth quarter, compared to 4.87% in the prior quarter.

The cost of deposits decreased to 0.55% for the fourth quarter of 2011, down 10 basis points from 0.65% in the third quarter of 2011. This improvement in the cost of deposits was primarily achieved through actively managing down higher interest-bearing deposit accounts, particularly time deposits. The average cost on time deposits declined by 11 basis points in the fourth quarter to 1.01%, resulting in cost savings of $2.0 million as compared to the third quarter of 2011.

4 of 9

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs