East West Bancorp Inc. in Pasadena, Calif., said late Monday that it lost $31.2 million, or 10 cents a share, in the third quarter, because of securities impairment charges and bad residential construction and land development loans.
Analysts on average had expected the $11.7 billion-asset East West to post a loss of 13 cents a share, according to Thomson Reuters.
East West earned $41.3 million in the third quarter of last year.
It recorded a $53.6 million pretax impairment securities charge, including $47 million related to investments in Fannie Mae and Freddie Mac preferred stock and $6.6 million linked to pooled trust-preferred securities.
The charge was offset by an $18 million tax benefit from the impairment of the government-sponsored enterprises’ stock.
East West’s loan-loss provision rose more than 14-fold from a year earlier but fell by nearly half from the second quarter, to $43 million. Net chargeoffs rose more than 46-fold from a year earlier but fell 14% from the second quarter, to $39.7 million.
Its Tier 1 risk-based capital ratio was 11.12%, and its total risk-based capital ratio was 13.12%.
