East West Bank
Encyclopedia
East West Bank is a Chinese American
bank in the state of California
in the United States
. It has 119 branch locations
in northern and southern California
, Georgia
, Massachusetts
, New York
, Texas
, Washington, two overseas branches in Hong Kong
, one each in Shanghai
and Shantou
and representative offices in Beijing
, Guangzhou
, Shenzhen
and Taipei
. It is headquartered in Pasadena, California
. As of its 2009 acquisition from the Federal Deposit Insurance Corporation
of the assets of United Commercial Bank
, the resulting bank was projected to start with almost $23 billion in assets, putting it ahead of L.A.-based City National as the largest bank based in Southern California. At last report, City National had $18.4 billion in assets."
. It became a state-chartered commercial bank in 1995.
-based Trust Bank, another Chinese American bank which had assets valued at $235 million on March 31, 2004. All four branches of Trust Bank were rebranded to East West Bank's name and shareholders of Trust Bank received a total value of $32.9 million in East West Bank stocks for the acquisition. According to East West Bankcorp's press release, the acquisition was estimated to be accretive
to 2004 earnings per share by $0.02.
In March 2006, East West Bank again merged with another Chinese American bank when East West Bankcorp acquired Standard Bank, headquartered in Monterey Park, California
. Standard Bank had six branch locations, all located in Los Angeles county, and had assets valued at $923 million. A total value of $200.3 million was paid in the acquisition, consisting of $70.1 million in cash and 3,547,314 shares of common stock in East West Bancorp.
In 2007, it purchased Desert Community Bank, a community bank operating in the Victor Valley region of California. Desert Community Bank branches remain branded as such and did not change to East West Bank, however DCB members have access to the East West Bank network and vice versa. The move drew criticism from some individuals criticizing the Chinese American leadership of the bank, and resulted in the former CEO of DCB leaving the state.
In 2009, it purchased the assets of failed United Commercial Bank, via a transaction by the Federal Deposit Insurance Corporation
. This expanded East West Bank's reach with UCB's 63 U.S. branches, including 17 in Southern California
and into the Chinese American communities of Houston, Boston
, and Atlanta, as well as branches in Hong Kong and China
. East West Bank similarly assumed the deposits, some assets, and all four branches of Washington First International Bank in Seattle upon the latter's failure on June 11, 2010.
. East West Bank also purchased the naming rights
to the East West Ice Palace, an ice rink
arena in Artesia, California
. It also owns the naming rights to the East West Bank Classic, a tennis tournament on the WTA Tour
.
Chinese American
Chinese Americans represent Americans of Chinese descent. Chinese Americans constitute one group of overseas Chinese and also a subgroup of East Asian Americans, which is further a subgroup of Asian Americans...
bank in the state of California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. It has 119 branch locations
Branch (banking)
A branch, banking center or financial center is a retail location where a bank, credit union, or other financial institution offers a wide array of face-to-face and automated services to its customers....
in northern and southern California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
, Georgia
Georgia (U.S. state)
Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...
, Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
, Washington, two overseas branches in Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, one each in Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
and Shantou
Shantou
Shantou , historically known as Swatow or Suátao, is a prefecture-level city on the eastern coast of Guangdong province, People's Republic of China, with a total population of 5,391,028 as of 2010 and an administrative area of...
and representative offices in Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...
, Guangzhou
Guangzhou
Guangzhou , known historically as Canton or Kwangchow, is the capital and largest city of the Guangdong province in the People's Republic of China. Located in southern China on the Pearl River, about north-northwest of Hong Kong, Guangzhou is a key national transportation hub and trading port...
, Shenzhen
Shenzhen
Shenzhen is a major city in the south of Southern China's Guangdong Province, situated immediately north of Hong Kong. The area became China's first—and one of the most successful—Special Economic Zones...
and Taipei
Taipei
Taipei City is the capital of the Republic of China and the central city of the largest metropolitan area of Taiwan. Situated at the northern tip of the island, Taipei is located on the Tamsui River, and is about 25 km southwest of Keelung, its port on the Pacific Ocean...
. It is headquartered in Pasadena, California
Pasadena, California
Pasadena is a city in Los Angeles County, California, United States. Although famous for hosting the annual Rose Bowl football game and Tournament of Roses Parade, Pasadena is the home to many scientific and cultural institutions, including the California Institute of Technology , the Jet...
. As of its 2009 acquisition from the Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
of the assets of United Commercial Bank
United Commercial Bank
United Commercial Bank was an overseas Chinese bank in the United States, based in San Francisco, CA. It was a subsidiary of UCBH Holdings. Founded in 1974 as United Federal Savings and Loan Association, it changed its name to United Savings Bank, and finally United Commercial Bank in 1998...
, the resulting bank was projected to start with almost $23 billion in assets, putting it ahead of L.A.-based City National as the largest bank based in Southern California. At last report, City National had $18.4 billion in assets."
History
East West was founded in 1973 as a savings and loan company targeting the Chinese-American community in Southern CaliforniaSouthern California
Southern California is a megaregion, or megapolitan area, in the southern area of the U.S. state of California. Large urban areas include Greater Los Angeles and Greater San Diego. The urban area stretches along the coast from Ventura through the Southland and Inland Empire to San Diego...
. It became a state-chartered commercial bank in 1995.
Acquisitions
In August 2004, East West Bank's parent company East West Bancorp acquired Monterey Park, CaliforniaMonterey Park, California
Monterey Park is a city in Los Angeles County, California, United States, east of downtown Los Angeles. The city's motto is "Pride in the past, Faith in the future"...
-based Trust Bank, another Chinese American bank which had assets valued at $235 million on March 31, 2004. All four branches of Trust Bank were rebranded to East West Bank's name and shareholders of Trust Bank received a total value of $32.9 million in East West Bank stocks for the acquisition. According to East West Bankcorp's press release, the acquisition was estimated to be accretive
Accretion (finance)
In finance, accretion is the change in the price of a bond bought at a discount to the par value of the bond. Accretion can be thought of as the antonym of amortization....
to 2004 earnings per share by $0.02.
In March 2006, East West Bank again merged with another Chinese American bank when East West Bankcorp acquired Standard Bank, headquartered in Monterey Park, California
Monterey Park, California
Monterey Park is a city in Los Angeles County, California, United States, east of downtown Los Angeles. The city's motto is "Pride in the past, Faith in the future"...
. Standard Bank had six branch locations, all located in Los Angeles county, and had assets valued at $923 million. A total value of $200.3 million was paid in the acquisition, consisting of $70.1 million in cash and 3,547,314 shares of common stock in East West Bancorp.
In 2007, it purchased Desert Community Bank, a community bank operating in the Victor Valley region of California. Desert Community Bank branches remain branded as such and did not change to East West Bank, however DCB members have access to the East West Bank network and vice versa. The move drew criticism from some individuals criticizing the Chinese American leadership of the bank, and resulted in the former CEO of DCB leaving the state.
In 2009, it purchased the assets of failed United Commercial Bank, via a transaction by the Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
. This expanded East West Bank's reach with UCB's 63 U.S. branches, including 17 in Southern California
Southern California
Southern California is a megaregion, or megapolitan area, in the southern area of the U.S. state of California. Large urban areas include Greater Los Angeles and Greater San Diego. The urban area stretches along the coast from Ventura through the Southland and Inland Empire to San Diego...
and into the Chinese American communities of Houston, Boston
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...
, and Atlanta, as well as branches in Hong Kong and China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
. East West Bank similarly assumed the deposits, some assets, and all four branches of Washington First International Bank in Seattle upon the latter's failure on June 11, 2010.
Naming rights
Its spokeswoman is figure skater Michelle KwanMichelle Kwan
Michelle Wingshan Kwan is an American figure skater. She is a two-time Olympic medalist, a five-time World champion and a nine-time U.S...
. East West Bank also purchased the naming rights
Naming rights
In the private sector, naming rights are a financial transaction whereby a corporation or other entity purchases the right to name a facility, typically for a defined period of time. For properties like a multi-purpose arena, performing arts venue or an athletic field, the term ranges from three...
to the East West Ice Palace, an ice rink
Ice rink
An ice rink is a frozen body of water and/or hardened chemicals where people can skate or play winter sports. Besides recreational ice skating, some of its uses include ice hockey, figure skating and curling as well as exhibitions, contests and ice shows...
arena in Artesia, California
Artesia, California
Artesia is a city in southeast Los Angeles County, California. Artesia was incorporated on May 29, 1959 and is one of Los Angeles County's Gateway Cities. The city has a 2010 census population of 16,522...
. It also owns the naming rights to the East West Bank Classic, a tennis tournament on the WTA Tour
Women's Tennis Association
The Women's Tennis Association , founded in 1973 by Billie Jean King, is the principal organizing body of Women's Professional Tennis. It governs the WTA Tour which is the worldwide professional tennis tour for women. Its counterpart organization in the men's professional game is the Association of...
.