East West Bancorp, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Provides Earnings Guidance for the First Quarter and Full Year of 2014; Announces Net Charge-Offs for the Fourth Quarter Ended December 31, 2013
January 22, 2014 at 05:23 pm EST
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East West Bancorp, Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. For the quarter, the company reported interest and dividend income was $293,203,000, income before provisions for income taxes was $98,564,000, net income was $75,782,000, net income available to commons stockholders was $75,182,000 or $0.55 per basic share and $0.55 per diluted share against interest and dividend income of $276,521,000, income before provisions for income taxes of $108,200,000, net income of $71,900,000, net income available to commons stockholders of $70,185,000 or $0.50 per basic share and $0.49 per diluted share a year ago. Return on average assets was 1.21% compared to 1.28% a year ago. Return on average common equity was 12.65% compared to 12.26% a year ago.
For the full year, the company reported interest and dividend income was $1,068,685,000, income before provisions for income taxes was $425,850,000, net income was $295,045,000, net income available to commons stockholders was $291,617,000 or $2.10 per diluted share against interest and dividend income of $1,051,095,000, income before provisions for income taxes of $425,592,000, net income of $281,650,000, net income available to commons stockholders of $274,793,000 or $1.89 per diluted share a year ago. Book value per common share was $17.18 as on December 31, 2013 compared to $16.39 as on December 31, 2012. Return on average assets was 1.25% compared to 1.29% a year ago. Return on average common equity was 12.59% compared to 12.29% a year ago.
The company provided guidance for the first quarter and full year of 2014. Management currently estimates that fully diluted earnings per share for the full year of 2014 will range from $2.24 to $2.28, an increase of $0.14 to $0.18 or 7% to 9% from $2.10 for the full year of 2013. This EPS guidance for the full year of 2014 is based on an adjusted net interest margin ranging from 3.29% to 3.33%, total loan growth of 8% to 10%, provision for loan losses of approximately $20 million, noninterest expense of approximately $430 million to $440 million, and an effective tax rate of 35%. Additionally, this full year 2014 guidance includes approximately $7 million after tax, or $0.05 per share of estimated one-time merger related charges resulting from the acquisition of MetroCorp, expected to be incurred in the first quarter of 2014.
The management currently estimates that fully diluted earnings per share for the first quarter of 2014 will range from $0.49 to $0.51. This EPS guidance for the first quarter of 2014 includes the impact of the estimated one-time merger related charges.
For the fourth quarter of 2013, the company reported total net charge-offs of $100,000.
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 Full Year Ended December 31, 2013; Provides Earnings Guidance for the First Quarter and Full Year of 2014; Announces Net Charge-Offs for the Fourth Quarter Ended December 31, 2013