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Press release from Business Wire

East West Bancorp Reports 46% Increase in Earnings for the Second Quarter 2010 to $36.3 Million and Nonperforming Assets to Total Assets below 1.00%

Tuesday, July 27, 2010

East West Bancorp Reports 46% Increase in Earnings for the Second Quarter 2010 to $36.3 Million and Nonperforming Assets to Total Assets below 1.00%16:45 EDT Tuesday, July 27, 2010 PASADENA, Calif. (Business Wire) -- East West Bancorp, Inc. (Nasdaq: EWBC), parent company of East West Bank, one of the nation's premier regional banks, today reported financial results for the second quarter of 2010. For the second quarter of 2010, net income was $36.3 million or $0.21 per diluted share. “For the second quarter, East West increased net income 46% from $24.9 million in the previous quarter to $36.3 million. This continued profitability was driven by our improving asset quality, our ability to integrate the United Commercial Bank acquisition quickly and efficiently and the strong performance of our franchise,” stated Dominic Ng, Chairman and Chief Executive Officer of East West. “I am pleased to report that our credit indicators continue to trend in a positive direction. Quarter over quarter, our provision for loan losses decreased by $21.2 million or 28% and net charge-offs decreased $8.7 million or 14%. Further, our nonperforming assets to total assets ratio has remained below 1% for three consecutive quarters.” Ng stated, “During the quarter, we acquired Washington First International Bank through an FDIC-assisted transaction and strengthened our operations in the greater Seattle area. This strategically attractive acquisition increased our market share in the Seattle region in a cost-effective, immediately accretive way.” “For the remainder of 2010, East West will focus on growing our revenue and profitability and reinvesting in our business while remaining disciplined on expenses. For the past three consecutive quarters we have increased our profitability and expect to continue to do so for the remainder of 2010,” concluded Ng. Second Quarter 2010 HighlightsSecond Quarter Earnings– For the second quarter 2010, net income was $36.3 million, an increase of $11.4 million over net income of $24.9 million reported in the first quarter of 2010 and an increase of $128.4 million over a net loss of $92.1 million reported in the second quarter of 2009. Acquisition of Washington First International Bank – East West acquired the banking operations of Seattle-based Washington First International Bank (WFIB) in a purchase and assumption agreement with the Federal Deposit Insurance Corporation (FDIC) on June 11, 2010. East West acquired total assets of $492.6 million, including $313.9 million of loans (net of purchase accounting adjustments) and assumed $395.9 million in deposits. Net Charge-offs Down 14% from Q1 2010, Down 59% from Q2 2009 – Net charge-offs declined to $55.2 million, a decrease of $8.7 million or 14% from the prior quarter and a decrease of $78.7 million or 59% from the second quarter of 2009. Nonperforming Assets to Total Assets Below 1%– Nonperforming assets remain low at $195.6 million, or 0.98% of total assets, a decline of 51 basis points from June 30, 2009. Strong Core Deposit Growth – Core deposits grew to a record $8.2 billion as of June 30, 2010, an increase of $444.1 million or 6% from March 31, 2010. At June 30, 2010 core deposits from WFIB totaled $84.2 million. Excluding the impact of the WFIB acquisition, East West grew core deposits by $359.9 million or 5% from March 31, 2010. Strong Net Interest Margin – The net interest margin for the quarter totaled 4.66%. Excluding discount accretion on covered loan dispositions and recoveries, the net interest margin totaled 3.98% for the quarter, compared to 2.98% in the second quarter of 2009. (See reconciliation of the GAAP financial measure to this non-GAAP financial measure in the tables attached.) Strong Capital Levels – As of June 30, 2010, East West's Tier 1 risk-based capital and total risk-based capital ratios were 18.9% and 20.8%, respectively, significantly higher than the well capitalized requirements of 6% and 10%, respectively. Management Guidance The Company is providing guidance for the third quarter of 2010. Management currently estimates that fully diluted earnings per share for the third quarter of 2010 will range from $0.19 to $0.22 per diluted share. This EPS guidance is based on the following assumptions: Flat balance sheet growth A stable interest rate environment and a net interest margin between 3.98% and 4.02%, excluding the impact of discount accretion on covered loan dispositions and recoveries Provision for loan losses of approximately $35 million to $40 million for the quarter Noninterest expense of approximately $105 million, net of FDIC reimbursable items Effective tax rate of approximately 37% FDIC-Assisted Acquisition of Washington First International Bank On June 11, 2010, East West acquired the banking operations of Seattle-based WFIB in a purchase and assumption agreement with the FDIC. East West acquired total assets of $492.6 million and assumed $395.9 million in deposits, net of purchase accounting adjustments. This strategically attractive transaction expands East West's footprint in the greater Seattle area, enhancing our ability to increase operating efficiencies and grow our customer base in this region. In connection with the acquisition, East West entered into a loss-sharing agreement with the FDIC that covers approximately $420.0 million in loans and real estate owned. Pursuant to the terms of the loss-sharing arrangement, the FDIC is obligated to reimburse the Bank for 80% of all eligible losses on covered assets. As a result of this transaction, East West recorded a pre-tax gain of $19.5 million. The integration of WFIB is progressing smoothly and we are on target for full integration of all systems by the end of October 2010. All WFIB legacy loans were accounted for at fair value at the date of acquisition and recorded at a discount to book value. As such, losses that East West expects to incur have already been written off and considered in the fair value of loans acquired as of June 11, 2010. A summary of the net assets received from the FDIC is as follows:             June 11, 2010(in thousands) Assets Cash and cash equivalents 67,186 Investment securities 37,532 Core deposit intangible 3,065 Loans covered by FDIC loss sharing (gross balance $395,156 and shown net of discount of $84,174) 310,982 Loans not covered by FDIC loss sharing 2,869 FDIC indemnification asset 41,131 Other real estate owned covered, net 23,443 Other assets 6,380 Total assets acquired 492,588 Liabilities Deposits 395,910 FHLB Advances 65,348 Securities sold under repurchase agreements 1,937 Other liabilities 9,917 Total liabilities assumed 473,112 Net assets acquired 19,476   Balance Sheet Summary At June 30, 2010 total assets were $20.0 billion compared to $20.3 billion at March 31, 2010, and $12.7 billion at June 30, 2009. The decrease in total assets quarter over quarter was driven by prepayments on FHLB advances of $740.0 million, sales of consumer student loans of $227.3 million and sales of fixed rate investment securities of $208.7 million. Gross loans at June 30, 2010 totaled $13.7 billion, compared to $13.8 billion at March 31, 2010. Noncovered loan balances decreased $82.7 million during the quarter to $8.5 billion as of June 30, 2010. During the quarter, growth in commercial loans of $84.1 million and single family loans of $71.7 million was offset by decreases in consumer loans resulting from the sale of student loans and paydowns on commercial real estate, construction and land loans. Covered loans totaled $5.3 billion at June 30, 2010, as compared to $5.2 billion at March 31, 2010. The increase in covered loans was a result of the addition of $311.0 million in loans from the acquisition of WFIB, partially offset by a reduction in loan balances from United Commercial Bank. Deposit balances totaled $14.9 billion at June 30, 2010, compared to $14.6 billion at March 31, 2010. During the quarter East West assumed $395.9 million in deposits from the acquisition of WFIB, reduced brokered deposits by $174.5 million and increased deposits organically by $90.6 million. Total core deposits increased to a record $8.2 billion as of June 30, 2010, or an increase of $444.1 million or 6% from March 31, 2010. The average cost of deposits decreased to 0.80% for the second quarter, an improvement of 13 basis points from the first quarter of 2010 and an improvement of 67 basis points from the second quarter of 2009. During the second quarter of 2010, East West continued to execute on its strategy to lower borrowing costs, prepaying $740.0 million in FHLB advances with an average cost of 1.72% during the quarter. As of June 30, 2010, FHLB advances totaled $1.0 billion, a decline of $747.4 million or 42% from March 31, 2010. As a result of the prepayments, East West incurred a prepayment penalty of $3.9 million, net of purchase accounting adjustments recorded, which is included in noninterest expense. The average cost of funds decreased to 1.17% for the second quarter of 2010, down 11 basis points from the first quarter of 2010 and down 95 basis points from the second quarter of 2009. Second Quarter 2010 Operating ResultsNet Interest Income Despite a prolonged and challenging low interest rate environment, net interest income has remained stable. As previously discussed, East West has grown low-cost core deposits, reducing the cost of deposits to 0.80% for the second quarter of 2010, down from 0.93% in the first quarter of 2010. Further, East West prepaid higher-cost FHLB advances, improving the cost of funds. Included in net interest income is discount accretion on early payoffs and recoveries on covered loans of $29.8 million in the second quarter of 2010, compared to $81.3 million in the first quarter of 2010. Excluding the impact of discount accretion, the net interest margin was 3.98% for the second quarter of 2010, compared to 4.02% in the prior quarter and an increase from 2.98% in the second quarter of 2009. The adjustments to net interest income are summarized in the table below: Reconciliation of Net Interest Income to Adjusted Net Interest Income                 Quarter EndedJune 30, 2010         March 31, 2010 Interest       Yield Interest       Yield Net interest income and net interest margin $ 203,623 4.66 % $ 261,724       5.92 % Less yield adjustment related to: Covered loan disposition and recoveries 29,755 81,343 Repurchase agreement termination gain   -   2,536 Total yield adjustment 29,755 $ 83,879       Net interest income and net interest margin, excluding yield adjustment $ 173,868 3.98 % $ 177,845 4.02 %   Noninterest Income Noninterest income for the second quarter totaled $35.7 million, compared to a loss of $8.5 million in the first quarter of 2010 and a loss of $26.2 million in the second quarter of 2009. The loss in the first quarter of 2010 was primarily due to a $43.6 million decrease in the FDIC indemnification asset and receivable compared to a $9.4 million decrease in the second quarter of 2010. The decreases in the FDIC indemnification asset and receivable in both the first and second quarters are primarily due to early payoffs on covered loans, resulting in a net reduction in the FDIC indemnification asset and receivable. The loss in the second quarter of 2009 was primarily due to impairment losses on investment securities of $37.4 million compared to $4.6 million of impairment losses in the second quarter of 2010. As previously mentioned, during the second quarter we sold $227.3 million in student loans and $208.7 million in fixed rate investment securities at gains of $8.1 million and $5.8 million, respectively. Noninterest income for the second quarter also included a gain of $19.5 million as a result of the acquisition of WFIB. During the second quarter we recorded impairment losses on investment securities totaling $4.6 million, of which $2.4 million was recorded on pooled trust preferred securities and $2.2 million was recorded on agency preferred stock. As of June 30, 2010, the agency preferred stock was written down to zero. As compared to the second quarter of 2009, branch fees increased by $3.2 million or 65%, letters of credit fees and commissions increased $935 thousand or 48%, and ancillary loan fees increased $1.0 million or 75%, primarily due to the acquisition of UCB. Excluding the impact of the decrease in the FDIC indemnification asset and receivable, gains on sales of investment securities and loans, gain on acquisition, and impairment charges on investment securities, noninterest income for the second quarter totaled $16.4 million, a $6.8 million or a 71% increase as compared to the second quarter of 2009. See reconciliation of the GAAP financial measure to this non-GAAP financial measure in the tables attached. A summary of these second quarter 2010 noninterest income items is detailed below:           Quarter EndedJune 30, 2010 Noninterest income $ 35,685 Add: Impairment loss on investment securities 4,642 Net gain on sale of investment securities (5,847 ) Net gain on sale of loans (8,073 ) Gain on acquisition (19,476 ) Decrease in FDIC indemnification asset and FDIC Receivable   9,424   Operating noninterest income $ 16,355     Noninterest Expense Noninterest expense totaled $125.3 million for the second quarter of 2010 compared to $138.9 million for the first quarter of 2010. Second quarter noninterest expense includes $28.7 million of expenses that are either not expected to be ongoing expenses in future quarters or are reimbursable from the FDIC, as detailed in the table below:           Quarter Ended (In thousands) June 30, 2010 Noninterest Expense: $ 125,318 Prepayment penalty for FHLB advances 3,900 Expenses related to the integration of UCB 3,602   Expenses for UCB covered assets, reimbursable from the FDIC: OREO expenses 15,258 Loan related expenses 4,062 Legal expenses   1,877 Total reimbursable expenses on covered assets   21,197 Noninterest expense excluding prepayment penalty on FHLB advances, integration costs related to the acquisition of UCB, and reimbursable expenses $ 96,619   Included in noninterest expense are integration expenses of $3.6 million, of which $1.5 million is related to severance costs. In addition, under the loss share agreement with the FDIC, 80% of eligible expenses on covered assets are reimbursable from the FDIC. In the second quarter, we incurred $26.5 million in expenses on covered loans and REO assets, 80%, or $21.2 million of which we expect to be reimbursed by the FDIC. As discussed above, East West also prepaid $740.0 million in FHLB advances and paid a prepayment penalty of $3.9 million. Management anticipates that in the third quarter of 2010, noninterest expense will total approximately $105 million, net of FDIC reimbursable items. The effective tax rate for the second quarter was 38.1% compared to 41.1% in the prior year period. The effective tax rate is reduced from the statutory tax rate primarily due to the utilization of tax credits related to affordable housing investments. Credit Management Credit indicators have continued to be strong. Nonperforming assets have remained low at $195.6 million as of June 30, 2010. Nonperforming assets, excluding covered assets, to total assets was 0.98% at June 30, 2010, compared to 1.49% of total assets at June 30, 2009. Nonperforming assets, excluding covered assets, as of June 30, 2010 included nonaccrual loans totaling $179.1 million and REO assets totaling $16.6 million. The provision for loan losses was $55.3 million for the second quarter of 2010, a decrease of $21.2 million or 28% compared to the previous quarter and a decrease of $96.2 million or 64% from the second quarter of 2009. Total net charge-offs fell to $55.2 million for the second quarter, a decrease of $8.7 million or 14% from the previous quarter and a decrease of $78.7 million or 59% from the second quarter of 2009. Management expects that the provision for loan losses and net charge-offs will continue to decrease for the second half of 2010 and range from $35 million to $40 million for the third quarter of 2010. Credit metrics on our seasoned commercial real estate portfolio have remained strong. Nonperforming commercial real estate loans were 0.52% of total commercial real estate loans as of June 30, 2010 and net charge-offs on commercial real estate loans were 1.34% of total average commercial real estate loans (annualized) for the second quarter. Further, land and construction loan balances are down to only 5% of total gross loans receivable. Notwithstanding the improvements noted above, we have maintained a strong allowance for loan losses at $249.5 million or 2.94% of non-covered loans receivable at June 30, 2010, to cover inherent losses in the portfolio, as compared to allowance for loan losses of $250.5 million or 2.93% at March 31, 2010 and $223.7 million or 2.62% of outstanding loans at June 30, 2009. All loans acquired from UCB and WFIB were recorded at estimated fair value as of the acquisition dates. East West entered into loss sharing agreements with the FDIC that covers future losses incurred on nearly all the UCB and WFIB legacy loans. As of June 30, 2010, we believe no allowance is required for these covered loans. Capital Strength                 Capital Strength(Dollars in millions)   June 30, 2010Well CapitalizedRegulatoryRequirementTotal Excess AboveWell CapitalizedRequirement   Tier 1 leverage capital ratio 10.5 % 5.00 % $ 1,077 Tier 1 risk-based capital ratio 18.9 % 6.00 % 1,397 Total risk-based capital ratio 20.8 % 10.00 % 1,175 Tangible common equity to tangible asset 7.90 % N/A N/A Tangible common equity to risk weighted assets ratio 14.2 % 4.00 % * 1,110   As there is no stated regulatory guideline for this ratio, the SCAP guideline of 4.00% tangible common equity has been used.   East West remains committed to maintaining strong capital levels that exceed regulatory requirements. As of the end of the second quarter of 2010, our Tier 1 leverage capital ratio increased to 10.5%, Tier 1 risk-based capital ratio totaled 18.9% and the total risk-based capital ratio totaled 20.8%. East West exceeds well capitalized requirements for all regulatory guidelines by over $1.0 billion. Dividend Payout East West's Board of Directors has declared third quarter dividends on the common stock and Series A Preferred Stock. The common stock cash dividend of $0.01 is payable on or about August 24, 2010 to shareholders of record on August 10, 2010. The dividend on the Series A Preferred Stock of $20.00 per share is payable on August 1, 2010 to shareholders of record on July 15, 2010. About East West East West Bancorp is a publicly owned company with $20.0 billion in assets and is traded on the Nasdaq Global Select Market under the symbol “EWBC”. The Company's wholly owned subsidiary, East West Bank, is one of the largest independent commercial banks headquartered in California with over 130 locations worldwide, including the U.S. markets of California, New York, Georgia, Massachusetts, Texas and Washington. In Greater China, East West's presence includes a full service branch in Hong Kong and representative offices in Beijing, Shanghai, Shenzhen and Taipei. Through a wholly-owned subsidiary bank, East West's presence in Greater China also includes full service branches in Shanghai and Shantou and representative offices in Beijing and Guangzhou. For more information on East West Bancorp, visit the Company's website at www.eastwestbank.com. Forward-Looking StatementsThis release may contain forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and accordingly, the cautionary statements contained in East West Bancorp's Annual Report on Form 10-K for the year ended Dec. 31, 2009 (See Item I -- Business, and Item 7 -- Management's Discussion and Analysis of Consolidated Financial Condition and Results of Operations), and other filings with the Securities and Exchange Commission are incorporated herein by reference. These factors include, but are not limited to: the effect of interest rate and currency exchange fluctuations; competition in the financial services market for both deposits and loans; EWBC's ability to efficiently incorporate acquisitions into its operations; the ability of borrowers to perform as required under the terms of their loans; effect of additional provisions for loan losses; effect of any goodwill impairment, the ability of EWBC and its subsidiaries to increase its customer base; the effect of regulatory and legislative action, including California tax legislation and an announcement by the state's Franchise Tax Board regarding the taxation of Registered Investment Companies; and regional and general economic conditions.Actual results and performance in future periods may be materially different from any future results or performance suggested by the forward-looking statements in this release. Such forward-looking statements speak only as of the date of this release. East West expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in the Bank's expectations of results or any change in event.                   EAST WEST BANCORP, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands, except per share amounts)(unaudited)   June 30, 2010December 31, 2009 Assets Cash and cash equivalents $ 1,185,944 $ 835,141 Short-term investments 447,168 510,788 Securities purchased under resale agreements 230,000 227,444 Investment securities 2,077,011 2,564,081 Loans receivable, excluding covered loans (net of allowance for loan losses of $249,462 and $238,833) 8,177,966 8,246,685 Covered loans   5,275,492     5,598,155   Total loans receivable, net 13,453,458 13,844,840 Federal Home Loan Bank and Federal Reserve stock 223,395 217,002 FDIC indemnification asset 947,011 1,091,814 Other real estate owned, net 16,562 13,832 Other real estate owned covered, net 113,999 44,273 Premiums on deposits acquired, net 86,106 89,735 Goodwill 337,438 337,438 Other assets   849,229     782,824   Total assets $ 19,967,321   $ 20,559,212     Liabilities and Stockholders' Equity Deposits $ 14,918,694 $ 14,987,613 Federal Home Loan Bank advances 1,022,011 1,805,387 Securities sold under repurchase agreements 1,051,192 1,026,870 Subordinated debt and trust preferred securities 235,570 235,570 Other borrowings 35,504 67,040 Accrued expenses and other liabilities   365,386     152,073   Total liabilities 17,628,357 18,274,553 Stockholders' equity   2,338,964     2,284,659   Total liabilities and stockholders' equity $ 19,967,321   $ 20,559,212   Book value per common share $ 13.31 $ 14.47 Number of common shares at period end 147,939 109,963   Ending BalancesJune 30, 2010December 31, 2009 Loans receivable Real estate - single family $ 1,033,155 $ 930,840 Real estate - multifamily 985,194 1,025,849 Real estate - commercial 3,500,273 3,606,179 Real estate - land 297,364 370,394 Real estate - construction 354,547 458,292 Commercial 1,528,863 1,512,709 Consumer   774,746     624,784   Total loans receivable, excluding covered loans 8,474,142 8,529,047 Covered loans   5,275,492     5,598,155   Total loans receivable 13,749,634 14,127,202 Unearned fees, premiums and discounts (46,714 ) (43,529 ) Allowance for loan losses   (249,462 )   (238,833 ) Net loans receivable $ 13,453,458 $ 13,844,840   Deposits Noninterest-bearing demand $ 2,396,087 $ 2,291,259 Interest-bearing checking 685,572 667,177 Money market 4,162,128 3,138,866 Savings   946,043     991,520   Total core deposits 8,189,830 7,088,822 Time deposits   6,728,864     7,898,791   Total deposits $ 14,918,694 $ 14,987,613                       EAST WEST BANCORP, INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(In thousands, except per share amounts)(unaudited)     Quarter EndedJune 30, 2010March 31, 2010June 30, 2009   Interest and dividend income $ 253,533 $ 318,703 $ 146,333 Interest expense   (49,910 )   (56,979 )   (58,073 ) Net interest income before provision for loan losses 203,623 261,724 88,260 Provision for loan losses   (55,256 )   (76,421 )   (151,422 ) Net interest income after provision for loan losses 148,367 185,303 (63,162 ) Noninterest income (loss) 35,685 (8,451 ) (26,199 ) Noninterest expense   (125,318 )   (138,910 )   (57,912 ) Income (loss) before benefit for income taxes 58,734 37,942 (147,273 ) Provision (benefit) for income taxes   22,386     13,026     (60,548 ) Net income (loss) before extraordinary item 36,348 24,916 (86,725 ) Extraordinary item, net of tax   -     -     (5,366 ) Net income (loss) after extraordinary item $ 36,348 $ 24,916 $ (92,091 ) Preferred stock dividend, inducement, and amortization of preferred stock discount   (6,147 )   (6,138 )   (23,623 ) Net income (loss) available to common stockholders $ 30,201 $ 18,778 $ (115,714 ) Net income (loss) per share, basic $ 0.21 $ 0.17 $ (1.83 ) Net income (loss) per share, diluted $ 0.21 $ 0.13 $ (1.83 ) Shares used to compute per share net loss: - Basic 146,372 109,961 63,105 - Diluted 147,131 146,865 63,105     Quarter EndedJune 30, 2010March 31, 2010June 30, 2009 Noninterest income (loss): Decrease in FDIC indemnification asset and FDIC receivable $ (9,424 ) $ (43,572 ) $ - Impairment loss on investment securities (4,642 ) (4,799 ) (37,447 ) Net gain on sale of investment securities 5,847 16,111 1,680 Gain on acquisition 19,476 8,095 - Branch fees 8,219 8,758 4,991 Net gain on sale of loans 8,073 3 Letters of credit fees and commissions 2,865 2,740 1,930 Ancillary loan fees 2,369 1,689 1,356 Other operating income   2,902     2,527     1,288   Total noninterest income (loss) $ 35,685 $ (8,451 ) $ (26,199 )   Noninterest expense: Compensation and employee benefits $ 41,579 $ 50,779 $ 16,509 Other real estate owned expense 20,983 18,012 8,682 Occupancy and equipment expense 13,115 11,944 6,297 Legal expense 6,183 2,907 1,755 Prepayment penalty for FHLB advances 3,900 9,932 - Deposit insurance premiums and regulatory assessments 4,528 11,581 9,568 Amortization of premiums on deposits acquired 3,310 3,384 1,092 Data processing 3,046 2,482 1,141 Amortization of investments in affordable housing partnerships 2,638 3,037 1,652 Consulting expense 1,919 2,141 672 Loan related expenses 5,254 2,997 1,642 Other operating expense   18,863     19,714     8,902   Total noninterest expense $ 125,318 $ 138,910 $ 57,912                         EAST WEST BANCORP, INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(In thousands, except per share amounts)(unaudited)   Year To DateJune 30, 2010June 30, 2009   Interest and dividend income $ 572,236 $ 291,256 Interest expense   (106,889 )   (123,315 ) Net interest income before provision for loan losses 465,347 167,941 Provision for loan losses   (131,677 )   (229,422 ) Net interest income after provision for loan losses 333,670 (61,481 ) Noninterest income (loss) 27,234 (12,405 ) Noninterest expense   (264,228 )   (109,318 ) Income (loss) before benefit for income taxes 96,676 (183,204 ) Provision (benefit) for income taxes   35,412     (74,013 ) Net loss before extraordinary item 61,264 (109,191 ) Extraordinary item, net of tax   -     (5,366 ) Net income (loss) after extraordinary item $ 61,264 $ (114,557 ) Preferred stock dividend, inducement, and amortization of preferred stock discount   (12,285 )   (32,366 ) Net income (loss) available to common stockholders $ 48,979 $ (146,923 ) Net income (loss) per share, basic $ 0.40 $ (2.33 ) Net income (loss) per share, diluted $ 0.34 $ (2.33 ) Shares used to compute per share net loss: - Basic 123,445 63,052 - Diluted 142,143 63,052     Year To DateJune 30, 2010June 30, 2009 Noninterest income (loss): Decrease in FDIC indemnification asset and FDIC receivable $ (52,996 ) $ - Impairment loss on investment securities (9,441 ) (37,647 ) Net gain on sale of investment securities 21,958 5,201 Gain on acquisition 27,571 - Branch fees 16,977 9,784 Net gain on sale of loans 8,073 11 Letters of credit fees and commissions 5,605 3,784 Ancillary loan fees 4,058 3,585 Other operating income   5,429     2,877   Total noninterest income (loss) $ 27,234 $ (12,405 )   Noninterest expense: Compensation and employee benefits $ 92,358 $ 33,617 Other real estate owned expense 38,995 15,713 Occupancy and equipment expense 25,059 13,688 Deposit insurance premiums and regulatory assessments 16,109 12,893 Prepayment penalty for FHLB advances 13,832 - Legal expense 9,090 3,533 Amortization of premiums on deposits acquired 6,694 2,217 Amortization of investments in affordable housing partnerships 5,675 3,412 Data processing 5,528 2,283 Consulting expense 4,060 1,120 Loan related expenses 8,251 3,077 Other operating expense   38,577     17,765   Total noninterest expense $ 264,228 $ 109,318                         EAST WEST BANCORP, INC.QUARTERLY ALLOWANCE FOR LOAN LOSSES RECAP(In thousands)(unaudited)   Quarter Ended6/30/2010     3/31/2010     12/31/2009     9/30/2009     6/30/2009LOANS Allowance balance, beginning of period $ 250,517 $ 238,833 $ 230,650 $ 223,700 $ 195,450 Allowance for unfunded loan commitments and letters of credit (1,115 ) (808 ) (1,161 ) (1,051 ) 1,442 Provision for loan losses 55,256 76,421 140,000 159,244 151,422 Impact of desecuritization - - - - 9,262   Net Charge-offs: Real estate - single family 3,257 3,426 7,083 8,034 14,058 Real estate - multifamily 7,552 4,860 8,425 7,231 2,256 Real estate - commercial 11,836 8,201 13,305 23,105 12,472 Real estate - land 9,765 26,828 20,390 39,988 33,183 Real estate - residential construction 3,086 11,642 48,919 32,535 30,634 Real estate - commercial construction 8,548 2,029 21,355 23,051 28,602 Commercial 10,563 6,422 5,789 14,956 11,577 Trade finance (88 ) (54 ) 2,569 2,256 774 Consumer   677         575         2,821         87         320   Total net charge-offs (recovery)   55,196         63,929         130,656         151,243         133,876   Allowance balance, end of period $ 249,462       $ 250,517       $ 238,833       $ 230,650       $ 223,700     UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT: Allowance balance, beginning of period $ 8,927 $ 8,119 $ 6,958 $ 5,907 $ 7,349 Provision for unfunded loan commitments and letters of credit   1,115         808         1,161         1,051         (1,442 ) Allowance balance, end of period $ 10,042       $ 8,927       $ 8,119       $ 6,958       $ 5,907   GRAND TOTAL, END OF PERIOD $ 259,504       $ 259,444       $ 246,952       $ 237,608       $ 229,607     Nonperforming assets to total assets (1) 0.98 % 0.89 % 0.91 % 1.84 % 1.49 % Allowance for loan losses to total gross non-covered loans at end of period 2.94 % 2.93 % 2.80 % 2.74 % 2.62 % Allowance for loan losses and unfunded loan commitments to total gross non-covered loans at end of period 3.06 % 3.03 % 2.90 % 2.82 % 2.69 % Allowance to non-covered nonaccrual loans at end of period 139.31 % 143.62 % 137.91 % 112.82 % 137.94 % Nonaccrual loans to total loans (2) 1.30 % 1.27 % 1.23 % 2.43 % 1.90 %   (1) Nonperforming assets excludes covered loans and REOs. Total assets includes covered assets. (2) Nonaccrual loans excludes covered loans. Total loans includes covered loans.                         EAST WEST BANCORP, INCTOTAL NON-PERFORMING ASSETS, EXCLUDING COVERED ASSETS(in thousands)(unaudited)   AS OF JUNE 30, 2010Total Nonaccrual Loans90+ DaysDelinquent   Under 90+ DaysDelinquentTotalNonaccrualLoansREO AssetsTotalNon-PerformingAssetsLoan Type Real estate - single family $ 14,835 $ - $ 14,835 $ 395 $ 15,230 Real estate - multifamily 13,180 5,521 18,701 3,131 21,832 Real estate - commercial 15,778 2,569 18,347 7,047 25,394 Real estate - land 43,775 5,292 49,067 2,541 51,608 Real estate - residential construction 1,454 23,370 24,824 2,272 27,096 Real estate - commercial construction 22,997 449 23,446 830 24,276 Commercial 19,310 8,994 28,304 - 28,304 Trade Finance - - - - - Consumer   1,436   104   1,540   346   1,886 Total$132,765$46,299$179,064$16,562$195,626   AS OF MARCH 31, 2010Total Nonaccrual Loans90+ DaysDelinquent   Under 90+ DaysDelinquentTotalNonaccrualLoansREO AssetsTotalNon-PerformingAssetsLoan Type Real estate - single family $ 13,673 $ - $ 13,673 $ - $ 13,673 Real estate - multifamily 12,444 4,780 17,224 712 17,936 Real estate - commercial 28,484 4,127 32,611 2,979 35,590 Real estate - land 27,077 32,266 59,343 2,007 61,350 Real estate - residential construction 3,188 782 3,970 379 4,349 Real estate - commercial construction 15,066 9,652 24,718 830 25,548 Commercial 7,209 13,722 20,931 - 20,931 Trade Finance - 505 505 - 505 Consumer   1,218   234   1,452   -   1,452 Total$108,359$66,068$174,427$6,907$181,334   AS OF DECEMBER 31, 2009Total Nonaccrual Loans90+ DaysDelinquent   Under 90+ DaysDelinquentTotalNonaccrualLoansREO AssetsTotalNon-PerformingAssetsLoan Type Real estate - single family $ 3,262 $ - $ 3,262 $ 264 $ 3,526 Real estate - multifamily 10,631 - 10,631 2,118 12,749 Real estate - commercial 11,654 18,450 30,104 5,687 35,791 Real estate - land 27,179 42,666 69,845 4,393 74,238 Real estate - residential construction 17,179 - 17,179 540 17,719 Real estate - commercial construction - 17,132 17,132 830 17,962 Commercial 8,002 16,765 24,767 - 24,767 Trade Finance - - - - - Consumer   114   146   260   -   260 Total$78,021$95,159$173,180$13,832$187,012   AS OF JUNE 30, 2009Total Nonaccrual Loans90+ DaysDelinquent   Under 90+ DaysDelinquentTotalNonaccrualLoansREO AssetsTotalNon-PerformingAssetsLoan Type Real estate - single family $ 5,181 $ - $ 5,181 $ 4,921 $ 10,102 Real estate - multifamily 7,938 - 7,938 281 8,219 Real estate - commercial 19,786 4,590 24,376 2,887 27,263 Real estate - land 35,660 1,656 37,316 13,307 50,623 Real estate - residential construction 46,176 - 46,176 4,154 50,330 Real estate - commercial construction 20,629 - 20,629 - 20,629 Commercial 8,034 8,067 16,101 626 16,727 Trade Finance 3,706 - 3,706 211 3,917 Consumer   339   412   751   801   1,552 Total$147,449$14,725$162,174$27,188$189,362                             EAST WEST BANCORP, INC.QUARTER TO DATE AVERAGE BALANCES, YIELDS AND RATES PAID (In thousands) (unaudited)   Quarter EndedJune 30, 2010     June 30, 2009AverageAverageVolume     Interest     Yield (1)     Volume     Interest     Yield (1)   ASSETSInterest-earning assets: Short-term investments and interest bearing deposits in other banks $ 948,361 $ 1,502 0.64 % $ 876,386 $ 2,509 1.15 % Securities purchased under resale agreements 455,743 2,630 2.28 % 51,374 1,292 9.95 % Investment securities (2) 2,202,676 14,741 2.68 % 2,612,998 30,440 4.67 % Loans receivable 8,556,680 116,916 5.48 % 8,244,850 111,669 5.43 % Loans receivable - covered 5,137,863 116,867 9.12 % - - - Federal Home Loan Bank and Federal Reserve Bank stocks   224,473         877     1.56 %       123,514         545     1.76 % Total interest-earning assets   17,525,796         253,533     5.80 %       11,909,122         146,455     4.93 %   Noninterest-earning assets: Cash and due from banks 603,907 113,853 Allowance for loan losses (255,904 ) (198,802 ) Other assets   2,012,470     794,849   Total assets $ 19,886,269   $ 12,619,022       LIABILITIES AND STOCKHOLDERS' EQUITYInterest-bearing liabilities: Checking accounts 663,936 527 0.32 % 356,756 324 0.36 % Money market accounts 3,968,293 8,336 0.84 % 1,822,470 6,140 1.35 % Savings deposits 961,374 1,274 0.53 % 415,828 659 0.64 % Time deposits 6,714,972 18,995 1.13 % 4,548,935 23,767 2.10 % Federal Home Loan Bank advances 1,238,400 6,175 2.00 % 1,273,640 13,142 4.14 % Securities sold under repurchase agreements 1,042,305 12,045 4.57 % 1,006,614 12,004 4.72 % Subordinated debt and trust preferred securities 235,570 1,591 2.67 % 235,570 2,034 3.42 % Other borrowings   49,785         967     7.68 %       4,849         3     0.24 % Total interest-bearing liabilities   14,874,635         49,910     1.35 %       9,664,662         58,073     2.41 %   Noninterest-bearing liabilities: Demand deposits 2,300,228 1,300,676 Other liabilities 400,783 123,431 Stockholders' equity   2,310,623     1,530,253   Total liabilities and stockholders' equity $ 19,886,269   $ 12,619,022     Interest rate spread 4.45 % 2.52 %   Net interest income and net interest margin $ 203,623 4.66 % $ 88,382 2.98 %   Net interest income and net interest margin adjusted (3) $ 173,868 3.98 %   (1) Annualized (2) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate. (3) Amounts exclude yield adjustment related to covered loan disposition and recoveries of $29,755 for the three months ended June 30, 2010.                             EAST WEST BANCORP, INC.YEAR TO DATE AVERAGE BALANCES, YIELDS AND RATES PAID (In thousands) (unaudited)   Year To DateJune 30, 2010     June 30, 2009AverageAverageVolume     Interest     Yield (1)     Volume     Interest     Yield (1)   ASSETSInterest-earning assets: Short-term investments and interest bearing deposits in other banks $ 1,119,912 $ 5,043 0.91 % $ 804,379 $ 5,485 1.38 % Securities purchased under resale agreements 358,074 8,893 4.94 % 50,691 2,542 9.97 % Investment securities (2) 2,194,322 34,931 3.21 % 2,658,478 59,905 4.54 % Loans receivable 8,582,214 238,944 5.61 % 8,221,143 222,485 5.46 % Loans receivable - covered 5,256,293 282,783 10.85 % - - - Federal Home Loan Bank and Federal Reserve Bank stocks   223,097         1,656     1.48 %       121,786         1,051     1.73 % Total interest-earning assets   17,733,912         572,250     6.51 %       11,856,477         291,468     4.96 %   Noninterest-earning assets: Cash and due from banks 485,965 118,351 Allowance for loan losses (254,700 ) (192,465 ) Other assets   2,195,865     775,633   Total assets $ 20,161,042   $ 12,557,996       LIABILITIES AND STOCKHOLDERS' EQUITYInterest-bearing liabilities: Checking accounts 651,655 1,141 0.35 % 358,492 717 0.40 % Money market accounts 3,716,606 16,302 0.88 % 1,655,476 11,834 1.44 % Savings deposits 976,695 2,416 0.50 % 413,046 1,361 0.66 % Time deposits 7,013,720 42,721 1.23 % 4,681,241 54,051 2.33 % Federal Home Loan Bank advances 1,634,910 15,180 1.87 % 1,279,323 27,019 4.26 % Securities sold under repurchase agreements 1,035,539 24,586 4.72 % 1,002,621 23,876 4.74 % Subordinated debt and trust preferred securities 235,570 3,138 2.65 % 235,570 4,451 3.76 % Other borrowings   74,893         1,405     3.73 %       3,653         6     0.33 % Total interest-bearing liabilities   15,339,588         106,889     1.41 %       9,629,422         123,315     2.58 %   Noninterest-bearing liabilities: Demand deposits 2,260,847 1,270,716 Other liabilities 258,399 122,326 Stockholders' equity   2,302,208     1,535,532   Total liabilities and stockholders' equity $ 20,161,042   $ 12,557,996     Interest rate spread 5.10 % 2.38 %   Net interest income and net interest margin $ 465,361 5.29 % $ 168,153 2.86 %   Net interest income and net interest margin adjusted (3) $ 351,728 4.00 %   (1) Annualized (2) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate. (3) Amounts exclude yield adjustment related to covered loan disposition and recoveries of $111,097 and repurchase agreement termination gain of $2,536 for the six months ended June 30, 2010.                 EAST WEST BANCORP, INC.SELECTED FINANCIAL INFORMATION(In thousands)(unaudited)   Average BalancesQuarter EndedJune 30, 2010March 31, 2010June 30, 2009 Loans receivable Real estate - single family $ 989,744 $ 931,318 $ 686,073 Real estate - multifamily 998,090 1,071,910 823,890 Real estate - commercial 3,530,045 3,601,112 3,516,257 Real estate - land 317,291 356,908 523,799 Real estate - construction 383,846 449,272 1,072,319 Commercial 1,492,560 1,472,451 1,387,257 Consumer   845,104     731,771     235,255   Total loans receivable, excluding covered loans 8,556,680 8,614,742 8,244,850 Covered loans   5,137,863     5,369,328     -   Total loans receivable 13,694,543 13,984,070 8,244,850 Investment securities 2,202,676 2,185,875 2,612,998 Earning assets 17,525,796 17,940,933 11,909,122 Total assets 19,886,269 20,398,717 12,619,022   Deposits Noninterest-bearing demand $ 2,300,228 $ 2,222,104 $ 1,300,676 Interest-bearing checking 663,936 636,039 356,756 Money market 3,968,293 3,464,234 1,822,470 Savings   961,374     992,186     415,828   Total core deposits 7,893,831 7,314,563 3,895,730 Time deposits   6,714,972     7,315,789     4,548,935   Total deposits 14,608,803 14,630,352 8,444,665 Interest-bearing liabilities 14,874,635 15,763,168 9,664,662 Stockholders' equity 2,310,623 2,293,712 1,530,253     Selected RatiosQuarter EndedJune 30, 2010March 31, 2010June 30, 2009 For The Period Return on average assets 0.73 % 0.49 % -2.92 % Return on average common equity 6.26 % 4.71 % -43.81 % Interest rate spread (2) 4.45 % 5.73 % 2.52 % Net interest margin (2) 4.66 % 5.92 % 2.98 % Net interest margin adjusted (4) 3.98 % 4.02 % 2.98 % Yield on earning assets (2) 5.80 % 7.20 % 4.93 % Cost of deposits 0.80 % 0.93 % 1.47 % Cost of funds 1.17 % 1.28 % 2.12 % Noninterest expense/average assets (1) 2.32 % 2.40 % 1.75 % Efficiency ratio (3) 56.56 % 58.45 % 55.12 %   (1) Excludes the amortization of intangibles, amortization and impairment loss of premiums on deposits acquired, amortization of investments in affordable housing partnerships and prepayment penalty for FHLB advances. (2) Yields on certain securities have been adjusted upward to a "fully taxable equivalent" basis in order to reflect the effect of income which is exempt from federal income taxation at the current statutory tax rate. (3) Represents noninterest expense, excluding the amortization of intangibles, amortization and impairment loss of premiums on deposits acquired, investments in affordable housing partnerships and prepayment penalty for FHLB advances, divided by the aggregate of net interest income before provision for loan losses, excluding nonrecurring adjustments and noninterest income, excluding impairment loss on investment securities and gain on acquisition and the decrease in FDIC indemnification asset and FDIC receivable. (4) Amounts exclude yield adjustment related to covered loan disposition and recoveries of $29,755 for the quarter ended June 30, 2010. and yield adjustment related to covered loan disposition of $74,439 for the quarter ended December 31, 2009.                         EAST WEST BANCORP, INC.SELECTED FINANCIAL INFORMATION(In thousands)(unaudited)   Average BalancesYear To DateJune 30, 2010June 30, 2009 Loans receivable Real estate - single family $ 961,800 $ 596,913 Real estate - multifamily 1,034,830 758,744 Real estate - commercial 3,563,975 3,491,166 Real estate - land 336,990 552,917 Real estate - construction 416,378 1,151,836 Commercial 1,479,533 1,437,732 Consumer   788,708     231,835   Total loans receivable, excluding covered loans 8,582,214 8,221,143 Covered loans   5,256,293     -   Total loans receivable 13,838,507 8,221,143 Investment securities 2,194,322 2,658,478 Earning assets 17,733,912 11,856,477 Total assets 20,161,042 12,557,996   Deposits Noninterest-bearing demand $ 2,260,847 $ 1,270,716 Interest-bearing checking 651,655 358,492 Money market 3,716,606 1,655,476 Savings   976,695     413,046   Total core deposits 7,605,803 3,697,730 Time deposits   7,013,720     4,681,241   Total deposits 14,619,523 8,378,971 Interest-bearing liabilities 15,339,588 9,629,422 Stockholders' equity 2,302,208 1,535,532     Selected RatiosYear To DateJune 30, 2010June 30, 2009 For The Period Return on average assets 0.61 % -1.82 % Return on average common equity 5.55 % -27.66 % Interest rate spread (2) 5.10 % 2.38 % Net interest margin (2) 5.29 % 2.86 % Net interest margin adjusted (4) 4.00 % 2.86 % Yield on earning assets (2) 6.51 % 4.96 % Cost of deposits 0.86 % 1.64 % Cost of funds 1.22 % 2.28 % Noninterest expense/average assets (1) 2.36 % 1.65 % Efficiency ratio (3) 57.52 % 53.51 %   (1) Excludes the amortization of intangibles, amortization and impairment loss of premiums on deposits acquired, amortization of investments in affordable housing partnerships and prepayment penalty for FHLB advances. (2) Yields on certain securities have been adjusted upward to a "fully taxable equivalent" basis in order to reflect the effect of income which is exempt from federal income taxation at the current statutory tax rate. (3) Represents noninterest expense, excluding the amortization of intangibles, amortization and impairment loss of premiums on deposits acquired, investments in affordable housing partnerships and prepayment penalty for FHLB advances, divided by the aggregate of net interest income before provision for loan losses, excluding nonrecurring adjustments and noninterest income, excluding impairment loss on investment securities and gain on acquisition and the decrease in FDIC indemnification asset and FDIC receivable. (4) Amounts exclude yield adjustment related to covered loan disposition and recoveries of $111,097 and repurchase agreement termination gain of $2,536 for the six months ended June 30, 2010.               EAST WEST BANCORP, INC.GAAP TO NON-GAAP RECONCILIATION(In thousands)(Unaudited)   The tangible common equity to risk weighted asset and tangible common equity to tangible asset ratios is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance to provide additional disclosure. As the use of tangible common equity to tangible asset is more prevalent in the banking industry and with banking regulators and analysts, we have included the tangible common equity to risk-weighted assets and tangible common equity to tangible asset ratios.   As ofJune 30, 2010 Stockholders' Equity $ 2,338,964 Less: Preferred Equity (369,695 ) Goodwill and other intangible assets   (424,746 ) Tangible common equity $ 1,544,523     Risk-weighted assets   10,863,240     Tangible Common Equity to risk-weighted assets   14.2 %   As ofJune 30, 2010 Total assets $ 19,967,321 Less: Goodwill and other intangible assets   (424,746 ) Tangible assets $ 19,542,575     Tangible common equity to tangible asset ratio 7.90 %   Operating noninterest income is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance to provide additional disclosure. There are noninterest income line items that are non-core in nature. Operating noninterest income excludes such non-core noninterest income line items. The Company believes that presenting the operating noninterest income provides more clarity to the users of financial statements regarding the core noninterest income amounts.   Quarter EndedJune 30, 2010 Noninterest income $ 35,685 Add: Impairment loss on investment securities 4,642 Net gain on sale of investment securities (5,847 ) Net gain on sale of loans (8,073 ) Gain on acquisition (19,476 ) Decrease in FDIC indemnification asset and FDIC receivable   9,424   Operating noninterest income (non-GAAP) $ 16,355       Quarter EndedJune 30, 2009 Noninterest income $ (26,199 ) Add: Impairment loss on investment securities 37,447 Net gain on sale of investment securities (1,680 ) Net gain on sale of loans (3 ) Gain on acquisition - Decrease in FDIC indemnification asset and FDIC receivable   -   Operating noninterest income (non-GAAP) $ 9,565                 EAST WEST BANCORP, INC.GAAP TO NON-GAAP RECONCILIATION(In thousands)(Unaudited)   Operating noninterest expense is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance to provide additional disclosure. There are noninterest expense line items that are non-core in nature. Operating noninterest expense excludes such non-core noninterest expense line items. The Company believes that presenting the operating noninterest expense provides more clarity to the users of financial statements regarding the core noninterest expense amounts.   Quarter EndedJune 30, 2010 Noninterest Expense: $ 125,318 Prepayment penalty for FHLB advances 3,900 Expenses related to the integration of UCB 3,602   Expenses for UCB covered assets, reimbursable from the FDIC: OREO Expenses 15,258 Loan related expenses 4,062 Legal expenses   1,877 Total reimbursable expenses on covered assets   21,197 Noninterest expense excluding prepayment penalty on FHLB advances, integration costs related to the acquisition of UCB, and reimbursable expenses $ 96,619   Quarter EndedMarch 31, 2010 Noninterest Expense: $ 138,910 Prepayment penalty for FHLB advances 9,932 Expenses related to the integration of UCB Compensation and employee benefits 6,240 Other integration expenses   3,664 Total integration costs related to the acquisition of UCB 9,904 REO expense for UCB covered assets, reimbursable from the FDIC   11,092 Noninterest expense excluding prepayment penalty on FHLB advances, integration costs related to the acquisition of UCB, and reimbursable REO expenses $ 107,982       EAST WEST BANCORP, INC.GAAP TO NON-GAAP RECONCILIATION(In thousands)(Unaudited)             The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance to provide additional disclosure. For the second quarter of 2010, the quarter to date net interest income and net interest margin includes a yield adjustment of $29,755 related to covered loan disposition, the year to date net interest income and net interest margin includes a yield adjustment of $111,097 related to covered loan disposition and recoveries and repurchase agreement termination gain of $2,536. For the first quarter of 2010 net interest income and net interest margin includes a yield adjustment of $81,343 related to covered loan disposition and recoveries and repurchase agreement termination gain of $2,536. These amounts are nonrecurring in nature. As such, the Company believes that presenting the net interest income and net interest margin excluding these nonrecurring items provides additional clarity to the users of financial statements regarding the core net interest income and net interest margin.   Quarter Ended June 30, 2010 Average Volume Interest Yield Total interest-earning assets $ 17,525,796 $ 253,533 5.80 % Net interest income and net interest margin $ 203,623 4.66 % Less yield adjustment related to: Covered loan disposition and recoveries 29,755     Net interest income and net interest margin, excluding yield adjustment $ 173,868 3.98 %   Quarter Ended March 31, 2010 Average Volume Interest Yield Total interest-earning assets $ 17,940,933 $ 318,717 7.20 % Net interest income and net interest margin $ 261,724 5.92 % Less yield adjustment related to: Covered loan disposition and recoveries 81,343 Repurchase agreement termination gain   2,536 Total yield adjustment $ 83,879     Net interest income and net interest margin, excluding yield adjustment $ 177,845 4.02 %