East West Bancorp, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2016; Reports Net Charge-Offs for the Fourth Quarter Ended December 31, 2016; Provides Net Interest Margin Guidance for the Year 2017
January 25, 2017 at 05:00 pm
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East West Bancorp, Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2016. For the quarter, the company reported interest and dividend income of $302,127,000 compared to $270,477,000 a year ago. Net interest income before provision for credit losses was $272,702,000 compared to $246,941,000 a year ago. Net interest income after provision for credit losses was $262,241,000 compared to $248,941,000 a year ago. Income before taxes was $161,137,000 compared to $148,485,000 a year ago. Net income was $110,734,000 compared to $91,805,000 a year ago. Diluted earnings per share were $0.76 compared to $0.63 a year ago. Return on average assets was 1.27% compared to 1.14% a year ago. Return on average common equity was 12.87% compared to 11.67% a year ago. Return on average tangible equity was $15.29 compared to $14.13 a year ago. Adjusted net interest income was $261,101,000 compared to $232,075,000 a year ago.
For the year, the company reported interest and dividend income of $1,137,481,000 compared to $1,053,815,000 a year ago. Net interest income before provision for credit losses was $1,032,638,000 compared to $950,439,000 a year ago. Net interest income after provision for credit losses was $1,005,159,000 compared to $936,222,000 a year ago. Income before taxes was $572,188,000 compared to $578,721,000 a year ago. Net income was $431,677,000 compared to $384,677,000 a year ago. Diluted earnings per share were $2.97 compared to $2.66 a year ago. Return on average assets was 1.30% compared to 1.27% a year ago. Return on average common equity was 13.06% compared to 12.74% a year ago. Return on average tangible equity was 15.68% compared to 15.58% a year ago. Adjusted net interest income was $987,214,000 compared to $889,185,000 a year ago. Tangible book value per share was $20.27 as of the December 31, 2016, grew by $0.35 or 2% linked-quarter
For the quarter, the company's' total net charge-offs was $7,961,000.
For 2017, the company's net interest margin (excluding the impact of ASC 310-30 discount accretion) is expected to be between 3.20% - 3.40%. The company currently estimates accretion income in 2017 to be in range between $20 million and $25 million. The company expects a slight increase in noninterest expense excluding tax credit amortization and deposit premium amortization relative to its full year 2016 adjusted noninterest expenses of $538 million. The company projects that the provision for credit losses will range between $40 million and $50 million in 2017. The effective tax rate will be in the mid-20s for 2017.
East West Bancorp, Inc. is a bank holding company that offers a full range of banking services to individuals and businesses through its subsidiary bank, East West Bank (the Bank). Its segments include Consumer and Business Banking, Commercial Banking and Other. The Consumer and Business Banking segment provides financial products and services to consumer and commercial customers through its domestic branch network and digital banking platforms. This segment also offers consumer and commercial deposits, mortgage and home equity loans, and other products and services. The Commercial Banking segment generates commercial loans and deposits. Commercial loan products include construction finance, commercial business lending, working capital lines of credit, trade finance, letters of credit and others. Commercial deposit products and other financial services include treasury management, foreign exchange services and others. It operates in over 120 locations in the United States and Asia.
East West Bancorp, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2016; Reports Net Charge-Offs for the Fourth Quarter Ended December 31, 2016; Provides Net Interest Margin Guidance for the Year 2017