Overview:
East West Bancorp, Inc. (East West) is a bank holding company that offers a range of banking services to individuals and small to mid-size businesses through its subsidiary bank, East West Bank (the Bank) and its subsidiaries. The Bank provides loans for commercial, construction and residential real estate projects. The Company has four principal operating segments: retail banking, commercial lending, treasury and residential lending. The Bank markets its services in the Los Angeles metropolitan area, Orange County, the San Francisco Bay area, including San Mateo County, the Silicon Valley area in Santa Clara County and Alameda County. As of December 31, 2007, the Bank had three wholly owned subsidiaries: E-W Services, Inc., East-West Investments, Inc., and East West Mortgage Securities, LLC. On August 17, 2007, East West completed the acquisition of Desert Community Bank.
Portfolio highlights (approximation rounded):
6.8 billion in real estate loans
---of which---
4.1 bil in com & ind real estate loans (47.1% of portfolio)
1.5 bil construction loans
1 bil in residential (742 mil in multi family 474 mil in single family)
1.1 bil in commercial biz loans
total loans outstanding is 8.6 bil (5.6 bil are in the yet to hit areas of com and construction loans and total LL reserves are only 168 mil for the entire book of 8.6 bil) While total NPA was 193.1 mil at end of june 30
Now as to capital base
3.1 bil are in timed deposits (CD's)
1.5 bil are in FHLB advances
equity is leveraged at slightly below 10x
Currently EWBC forward earnings estimate for 4q's are ---(.07 .08 .13 .22=.50)
forward p/e on this pig is 30x (with share price of 15)
TTM p/e is negative though due to impairment on pref stock's and pref trust pools (much having to due with FRE FNM)...so while i do not expect this pig to repeat its dismal performance of the past two q's i do not even expect them to meet analysts expectaions if CA economy continues its current path...and even if they do meet expectations this pig still has a sky high valuation, is dependant on CD deposits and FHLB advances to carry assets, and has a realtivly undiversified loan book in a pretty hard hit area of the economy
2 comments:
Until a shoe drops, looking at it technically and with Market sentiment.
For now either tests 18 or breaks 15,
Farking Dicey Market
yeah your right...i was hoping for a nice santa clause rally to build some positions in these guys but I am having no luck...this one has been holding up rather well though..
it does have that local double top around 18 but it also has that necktie of moving averages in the 15 range like you say
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