Item 5. Market for Registrant’s Common Equity
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information, Holders of Common Stock and Dividends
The Company’s common stock is traded on the Nasdaq Global Select Market under the symbol “EWBC”. As of January 31, 2024, the Company had 702 stockholders of record of the Company’s common stock, not including beneficial owners whose shares are held in record names of brokers or other nominees.
Holders of the Company’s common stock are entitled to receive cash dividends when declared by the Company’s Board of Directors out of legally available funds. The Board of Directors presently intends to continue the policy of paying quarterly cash dividends, however, there can be no assurance as to future dividends because they are dependent on the Company’s future earnings, capital requirements and financial condition.
Securities Authorized for Issuance under Equity Compensation Plans
For information regarding securities authorized for issuance under the Company’s equity compensation plans, see Note 13 — Stock Compensation Plans to the Consolidated Financial Statements and Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters presented elsewhere in this Form 10-K, which are incorporated herein by reference.
Five-Year Stock Performance
The following graph and table compare the Company’s cumulative total return on its common stock with the cumulative total return of the Standard & Poor’s (“S&P”) 500 Index and the KBW Nasdaq Bank Index (“BKX”) over the five-year period through December 31, 2023. The cumulative total shareholder return assumes the investment of $100 in the Company’s common stock and in each index on December 31, 2018 and the reinvestment of common stock dividends.
The S&P 500 Index is utilized as a benchmark against performance and is a commonly referenced U.S. equity benchmark consisting of leading companies from different economic sectors. The BKX is designed to track the performance of the leading banks and thrifts that are publicly-traded in the U.S., and comprises 24 banking stocks representing the large U.S. national money centers, regional banks and thrift institutions.
December 31,
Index 2018 2019 2020 2021 2022 2023
East West Bancorp, Inc. $100.00 $114.36 $122.62 $193.73 $165.75 $186.84
BKX $100.00 $136.13 $122.08 $168.88 $132.75 $131.56
S&P 500 Index $100.00 $131.49 $155.68 $200.37 $164.08 $207.21
The graph is not indicative of future stock price performance. The information set forth under the heading “Five-Year Stock Performance” shall not be deemed to be “soliciting material” or to be “filed” with the SEC or subject to the liabilities of Section 18 of the Exchange Act, except to the extent that the Company specifically requests that such information to be treated as soliciting material or specifically to be incorporated by reference into a filing under the Securities Act or the Exchange Act.
Repurchases of Equity Securities by the Issuer and Affiliated Purchasers
The following table summarizes the Company’s common stock repurchase activity during the fourth quarter of 2023:
Calendar Month Total Number of Shares Purchased (1)
Average Price Paid per Share of Common Stock
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) (2)
October 590,696 $ 52.63 590,696 $ 223
November 768,649 $ 54.44 768,649 $ 181
December 146,746 $ 63.00 146,746 $ 172
Fourth quarter 1,506,091 $ 54.56 1,506,091
(1) Excludes the repurchase of common stock pursuant to various stock compensation plans and agreements.
(2) On March 3, 2020, the Company’s Board of Directors authorized, and the Company announced, a stock repurchase program under which the Company may repurchase up to $500 million of its common stock. The stock repurchase authorization has no expiration date.
Refer to Item 7. MD&A — Balance Sheet Analysis — Capital and Item 8. Financial Statements — Note 14 — Stockholders’ Equity and Earnings Per Share for information regarding repurchases under the Company’s common share repurchase program.
ITEM 6. [RESERVED]
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EAST WEST BANCORP, INC.