East West Bancorp Completes $306.5 Million Capital Raise Through the U.S. Treasury’s Voluntary Capital Purchase Program
December 05 2008 - 4:05PM
Business Wire
East West Bancorp, Inc. (Nasdaq: EWBC), parent company of East West
Bank, one of the nation�s premier community banks, announced today
that it received $306.5 million in new capital through the U.S.
Treasury�s Capital Purchase Program (CPP). East West�s total
risk-based capital ratio of 13.12% as of September 30, 2008 is
already well above the regulatory requirement of 10.00% for a �well
capitalized� institution. With this additional capital, East West�s
total risk-based capital increased to 16.12%. Additionally,
East�West�s tangible equity to tangible assets ratio increased to
10.65%, from 7.95% as of September 30, 2008. �In addition to our
currently well capitalized position, the CPP funds will increase
our capacity to lend and enhance our ability to support economic
activity for the benefit of the markets we serve,� said Dominic Ng,
Chairman, President and Chief Executive Officer of East West. �We
are pleased to be among the nation�s financially strong banks that
have volunteered to participate in this vital stimulus effort.�
Under the terms of the Capital Purchase Program, EWBC issued to the
United States Department of the Treasury, in exchange for aggregate
consideration of $306.5 million, a total of 306,546 shares of
Series B Fixed-Rate Cumulative Perpetual Preferred Stock with a
$0.01 par value and a $1,000 per share liquidation preference, and
a Warrant to purchase up to 3,305,109 shares of EWBC�s Common Stock
at an exercise price of $15.15. About East West East West Bancorp
is a publicly owned company, with $11.7 billion in assets, whose
stock is traded on the Nasdaq Global Select Market under the symbol
�EWBC�. The company�s wholly owned subsidiary, East West Bank, is
FDIC insured and the second largest independent commercial bank
headquartered in Southern California with 71 branch locations. East
West Bank serves the community with 69 branch locations across
Southern and Northern California and a branch location in Houston,
Texas. East West Bank has three international locations in Greater
China, including a full-service branch in Hong Kong and
representative offices in Beijing and Shanghai. For more
information on East West Bancorp, visit the company�s website at
www.eastwestbank.com. Forward-Looking Statements This 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, 2007 (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.
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