East West Bancorp Reports Strong Earnings of $41.3 Million for Third Quarter 2007

East West Bancorp, Inc. (Nasdaq:EWBC), parent company of East West Bank, one of the nation’s premier community banks, today reported financial results for the third quarter of 2007. Fully diluted earnings per share for the third quarter increased 16% to a solid $0.67 from $0.58 in the prior year period. On August 17, 2007, East West completed the acquisition of Desert Community Bank ("DCB”), a $576 million commercial bank headquartered in Victorville, California. The final consideration paid for the acquisition of DCB was $142.7 million, consisting of approximately 2.0 million shares of newly issued common stock and $64.2 million in cash. East West issued $30.0 million in junior subordinated debt securities to partially fund the acquisition. "East West delivered strong financial performance for the third quarter of 2007. Although this is a challenging environment for the banking industry, we achieved solid results due to strong loan growth, stable net interest margin and sound asset quality,” stated Dominic Ng, Chairman, President and Chief Executive Officer of East West. "We believe that 2007 will prove to be another consecutive year of record earnings.” "East West successfully closed the acquisition of DCB during the quarter. This acquisition allows us to expand our footprint in California and reach new customers through nine additional branches. The conversion of all DCB systems is running smoothly and a full integration is scheduled for completion in early November,” reported Ng. Third Quarter Summary Diluted earnings per share of $0.67, up 16% from third quarter 2006 Net income of $41.3 million, up 16% from third quarter 2006 Record net interest income of $103.9 million, up 9% from third quarter 2006 Net interest margin of 3.95% Return on equity of 15.19% Total nonperforming assets were 0.37% of total assets Net loan chargeoffs of $853 thousand for the quarter Financial Summary Third quarter net income was a strong $41.3 million, up 16% from $35.6 million reported in the prior year period. Diluted earnings per share for the third quarter rose to $0.67, up 16% from $0.58 in the prior year period. Return on average equity for the quarter totaled 15.19% an increase from 14.94% in the prior year period, while return on average assets for the quarter totaled 1.48%, an increase from 1.38% in the prior year period. Pretax income for the third quarter totaled $67.7 million, a 17% or $9.6 million increase over the same period a year ago. Management Guidance Based on the year-to-date performance and management’s expectations for the fourth quarter of 2007, the Company has increased its earnings per share guidance. Management now estimates that fully diluted earnings per share for the full year of 2007 will be approximately $2.65, an increase of $0.30 or 13% from $2.35 in 2006. Additionally, this is an increase from the previously announced estimate of $2.61 to $2.63 for the full year 2007. The EPS guidance is based on the following assumptions for the fourth quarter of 2007: Organic loan growth of approximately 15% Stable deposit balances Noninterest expense to increase marginally from the third quarter Efficiency ratio of approximately 38% Effective tax rate of approximately 39% A stable interest rate environment and a net interest margin of approximately 3.90% $3.0 million provision for loan losses Balance Sheet Summary At September 30, 2007, total assets were $11.6 billion, an increase of 8% from December 31, 2006. Gross loans at September 30, 2007 totaled $8.6 billion compared to $8.3 billion at year-end 2006. Excluding the impact of the acquisition of DCB and loan securitizations, organic loan growth was $458.1 million, or 23% annualized during the quarter, and $944.8 million, or 15% annualized year-to-date. Average earning assets for the third quarter of 2007 equaled $10.5 billion, 7% higher than the third quarter of 2006. The yield on average earning assets for the quarter was 7.54%, an increase of 31 basis points from a year ago and an increase of 3 basis points from the previous quarter. The yield on average loans receivable for the quarter was 7.86%, an increase of 26 basis points from the year ago quarter and a decrease of 1 basis point from the previous quarter. The yield on average investment securities for the quarter was 6.05%, an increase of 92 basis points from the year ago quarter and an increase of 28 basis points from the previous quarter. Total deposits at September 30, 2007 were $7.5 billion, a 3% increase over total deposits of $7.2 billion at December 31, 2006. Core deposits at September 30, 2007 totaled $3.6 billion or a 4% increase over year-end 2006. Average total deposits for the third quarter totaled $7.3 billion, or 6% above the figure for the prior year period. Average core deposits for the quarter totaled $3.5 billion, or 5% greater than the prior year period. The average cost of deposits for the third quarter of 2007 was 3.35%, a 26 basis point increase from the year ago quarter and a 7 basis point decrease from the previous quarter. The average cost of funds for the third quarter equaled 3.78%, a 27 basis point increase from the prior year and a 4 basis point decrease from the prior quarter. Third Quarter Operating Results Net interest income for the third quarter increased to a record $103.9 million, 9% or $8.4 million greater than the third quarter of 2006 and $4.9 million greater on a sequential quarter basis. The net interest margin for the quarter of 3.95% reflected an increase of 6 basis points from the year ago margin and a decrease of 2 basis points from the previous quarter margin. East West recorded provision for loan losses of $3.0 million during the third quarter of 2007. In comparison, East West provided $3.5 million for loan losses during the third quarter of 2006 and did not record a provision for loan losses for the second quarter of 2007. The provision for loan losses for the quarter reflects both the weakening housing market and the growth of our loan portfolio. Management anticipates that the provision for loan losses will also be $3.0 million for the fourth quarter of 2007. Noninterest income for the third quarter totaled $14.0 million, 73% or $5.9 million higher than the third quarter of 2006 and 30% or $3.2 million greater than the second quarter of 2007. The increase from both prior year and prior quarter is primarily the result of a $1.3 million gain on the sale of bank premises and a $2.8 million net gain on the sales of investment securities in the third quarter of 2007. Core noninterest income, excluding the impact of gains on sales of investment securities and other assets, totaled $10.0 million during the quarter, 34% or $2.5 million higher than the prior year figure and 4% or $388 thousand higher than the prior quarter. Noninterest expense totaled $47.1 million for the third quarter of 2007, 12% or $5.2 million higher than a year ago and 9% or $3.9 million higher than the previous quarter. The increase in noninterest expense from both prior year and prior quarter is largely due to increased compensation expense. Management anticipates that noninterest expenses for the fourth quarter may increase marginally from the third quarter due to the impact of the acquisition of DCB. The Company expects that its efficiency ratio for the full year 2007 will be approximately 37%. East West generated an efficiency ratio of 37.64% for the third quarter of 2007, compared to 37.38% a year ago. The effective tax rate for the third quarter was 38.95% compared to 38.76% in the prior year period. Management anticipates an effective tax rate for the full year 2007 to be approximately 39%. Asset Quality Total nonperforming assets as of September 30, 2007 were $43.4 million or 0.37% of total assets, compared to $19.9 million, or 0.18% of total assets at December 31, 2006. As nonperforming assets have increased from recent historic lows, we have increased our loan loss provision. Management is systematically monitoring delinquencies and proactively reviewing the credit risk exposure in the loan portfolio to minimize the ultimate loss rates. Nonaccrual loans as of September 30, 2007 were $42.8 million or 0.50% of total loans, compared to $17.1 million or 0.21% of total loans at December 31, 2006. The increase in the nonaccrual loans was primarily the result of the addition of two residential construction loans totaling $18.5 million. For the third quarter of 2007, East West had net loan chargeoffs of $853 thousand or an annualized 0.04% of average loans. This compares to net loan chargeoffs of $132 thousand, or an annualized 0.01% of average loans for the third quarter of 2006 and net loan chargeoffs of $576 thousand, or an annualized 0.03% of average loans for the second quarter of 2007. The allowance for loan losses at September 30, 2007 was $84.6 million or 0.99% of total loans and 198% of nonaccrual loans, compared to $78.2 million or 0.95% of total loans and 457% of nonaccrual loans at December 31, 2006. At September 30, 2007, the allowance for unfunded loan commitments and off-balance sheet credit exposures was $11.4 million, compared to $12.2 million at December 31, 2006. The allowance for unfunded loan commitments and off-balance sheet credit exposures is included in accrued expenses and other liabilities on the balance sheet. Capitalization East West continues to remain well capitalized under all regulatory guidelines. At September 30, 2007, our Tier I risk-based capital ratio was 8.98%, total risk-based capital ratio was 10.57% and Tier I leverage ratio was 8.88%. During the first quarter of 2007, our Board of Directors authorized stock repurchases of up to $80.0 million of the Company’s stock. As of September 30, 2007, East West had $26.9 million of repurchase authorization remaining. Total stockholders’ equity as of September 30, 2007 was $1.2 billion, representing a book value of $18.70 per share. About East West East West Bancorp is a publicly owned company with $11.6 billion in assets and is traded on the Nasdaq Global Select Market under the symbol "EWBC”. The Company’s wholly owned subsidiary, East West Bank, is the second largest independent commercial bank headquartered in Southern California with 72 branch locations. East West Bank serves the community with 70 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, 2006 (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 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. EAST WEST BANCORP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) (unaudited)         September 30, 2007   December 31, 2006   % Change   Assets Cash and cash equivalents $ 167,282 $ 192,559 (13 ) Securities purchased under resale agreements 150,000 100,000 50 Investment securities available-for-sale 1,962,090 1,647,080 19 Loans receivable (net of allowance for loan losses of $84,565 and $78,201) 8,466,796 8,182,172 3 Premiums on deposits acquired, net 30,481 20,383 50 Goodwill 334,867 244,259 37 Other assets   528,647     437,258   21 Total assets $ 11,640,163   $ 10,823,711   8   Liabilities and Stockholders' Equity Deposits $ 7,478,275 $ 7,235,042 3 Federal funds purchased 165,910 151,000 10 Federal Home Loan Bank advances 1,453,404 1,136,866 28 Securities sold under repurchase agreements 1,000,837 975,000 3 Notes payable 14,911 11,379 31 Accrued expenses and other liabilities 124,701 111,011 12 Long-term debt   235,570     184,023   28 Total liabilities 10,473,608 9,804,321 7 Stockholders' equity   1,166,555     1,019,390   14 Total liabilities and stockholders' equity $ 11,640,163   $ 10,823,711   8 Book value per share $ 18.70 $ 16.59 13 Number of shares at period end 62,369 61,431 2   Ending Balances September 30, 2007   December 31, 2006   % Change   Loans receivable Real estate - single family $ 335,707 $ 365,407 (8 ) Real estate - multifamily 778,650 1,584,674 (51 ) Real estate - commercial 4,092,208 3,766,634 9 Real estate - construction 1,523,276 1,154,339 32 Commercial 1,203,790 960,375 25 Trade finance 452,752 271,795 67 Consumer   171,931     162,008   6 Total gross loans receivable 8,558,314 8,265,232 4 Unearned fees, premiums and discounts (6,953 ) (4,859 ) 43 Allowance for loan losses   (84,565 )   (78,201 ) 8 Net loans receivable $ 8,466,796 $ 8,182,172 3   Deposits Noninterest-bearing demand $ 1,372,694 $ 1,353,734 1 Interest-bearing checking 432,827 450,201 (4 ) Money market 1,273,191 1,280,651 (1 ) Savings   504,667     372,546   35 Total core deposits 3,583,379 3,457,132 4 Time deposits less than $100,000 954,396 1,012,401 (6 ) Time deposits $100,000 or greater   2,940,500     2,765,509   6 Total time deposits   3,894,896     3,777,910   3 Total deposits $ 7,478,275 $ 7,235,042 3 EAST WEST BANCORP, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (unaudited)       Three Months Ended September 30,   %   2007       2006   Change   Interest and dividend income $ 198,768 $ 177,312 12 Interest expense   (94,914 )   (81,895 ) 16 Net interest income before provision for loan losses 103,854 95,417 9 Provision for loan losses   (3,000 )   (3,500 ) (14 ) Net interest income after provision for loan losses 100,854 91,917 10 Noninterest income 13,993 8,103 73 Noninterest expense   (47,143 )   (41,946 ) 12 Income before provision for income taxes 67,704 58,074 17 Provision for income taxes   (26,368 )   (22,512 ) 17 Net income $ 41,336 $ 35,562 16 Net income per share, basic $ 0.68 $ 0.59 15 Net income per share, diluted $ 0.67 $ 0.58 16 Shares used to compute per share net income: - Basic 61,232 60,536 1 - Diluted 62,088 61,797 0     Three Months Ended September 30, %   2007     2006   Change Noninterest income: Branch fees $ 3,836 $ 2,837 35 Net gain on sales of investment securities available-for-sale 2,772 676 310 Letters of credit fees and commissions 2,702 2,065 31 Ancillary loan fees 1,397 925 51 Net gain on disposal of fixed assets 1,261 - NA Income from secondary market activities 272 123 121 Other operating income   1,753     1,477   19 Total noninterest income $ 13,993 $ 8,103 73   Noninterest expense: Compensation and employee benefits $ 22,081 $ 18,589 19 Occupancy and equipment expense 6,656 5,610 19 Amortization of premiums on deposits acquired 1,767 1,691 4 Data processing 1,351 890 52 Amortization of investments in affordable housing partnerships 1,017 1,555 (35 ) Deposit insurance premiums and regulatory assessments 350 339 3 Other operating expense   13,921     13,272   5 Total noninterest expense $ 47,143 $ 41,946 12 EAST WEST BANCORP, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (unaudited)         Nine Months Ended September 30, %   2007     2006   Change   Interest and dividend income $ 572,159 $ 473,862 21 Interest expense   (270,773 )   (203,753 ) 33 Net interest income before provision for loan losses 301,386 270,109 12 Provision for loan losses   (3,000 )   (8,166 ) (63 ) Net interest income after provision for loan losses 298,386 261,943 14 Noninterest income 37,290 25,076 49 Noninterest expense   (132,724 )   (117,269 ) 13 Income before provision for income taxes 202,952 169,750 20 Provision for income taxes   (79,030 )   (65,492 ) 21 Net income $ 123,922 $ 104,258 19 Net income per share, basic $ 2.04 $ 1.76 16 Net income per share, diluted $ 2.01 $ 1.72 17 Shares used to compute per share net income: - Basic 60,754 59,204 3 - Diluted 61,712 60,569 2     Nine Months Ended September 30, %   2007     2006   Change Noninterest income: Branch fees $ 10,667 $ 8,266 29 Letters of credit fees and commissions 7,688 6,396 20 Net gain on sales of investment securities available-for-sale 5,218 2,537 106 Ancillary loan fees 4,164 2,835 47 Net gain on disposal of fixed assets 1,573 - NA Net gain on sale of real estate owned 1,344 88 1,427 Income from secondary market activities 1,296 496 161 Other operating income   5,340     4,458   20 Total noninterest income $ 37,290 $ 25,076 49   Noninterest expense: Compensation and employee benefits $ 63,511 $ 50,589 26 Occupancy and equipment expense 18,583 15,726 18 Amortization of premiums on deposits acquired 4,824 5,308 (9 ) Amortization of investments in affordable housing partnerships 3,521 4,281 (18 ) Data processing 3,403 2,678 27 Deposit insurance premiums and regulatory assessments 1,021 1,021 0 Other operating expense   37,861     37,666   1 Total noninterest expense $ 132,724 $ 117,269 13 EAST WEST BANCORP, INC. SELECTED FINANCIAL INFORMATION (In thousands) (unaudited)         Average Balances Three Months Ended September 30, %   2007   2006 Change Loans receivable Real estate - single family $ 306,452 $ 571,051 (46 ) Real estate - multifamily 1,000,956 1,654,291 (39 ) Real estate - commercial 3,960,450 3,737,320 6 Real estate - construction 1,441,298 932,661 55 Commercial 1,148,493 825,527 39 Trade finance 414,658 260,526 59 Consumer   160,961   184,692 (13 ) Total loans receivable 8,433,268 8,166,068 3 Investment securities available-for-sale 1,731,436 1,382,977 25 Earning assets 10,461,572 9,737,428 7 Total assets 11,197,229 10,324,398 8   Deposits Noninterest-bearing demand $ 1,337,218 $ 1,261,869 6 Interest-bearing checking 404,418 393,218 3 Money market 1,287,573 1,232,879 4 Savings   424,039   407,904 4 Total core deposits 3,453,248 3,295,870 5 Time deposits less than $100,000 931,961 1,113,057 (16 ) Time deposits $100,000 or greater   2,961,353   2,513,360 18 Total time deposits   3,893,314   3,626,417 7 Total deposits 7,346,562 6,922,287 6 Interest-bearing liabilities 8,621,171 7,994,802 8 Stockholders' equity 1,088,792 952,435 14 EAST WEST BANCORP, INC. SELECTED FINANCIAL INFORMATION (In thousands) (unaudited)           Average Balances Nine Months Ended September 30, %   2007   2006 Change Loans receivable Real estate - single family $ 337,419 $ 551,429 (39 ) Real estate - multifamily 1,194,459 1,538,361 (22 ) Real estate - commercial 3,815,688 3,559,884 7 Real estate - construction 1,317,528 815,273 62 Commercial 1,067,855 770,345 39 Trade finance 346,369 232,315 49 Consumer   157,630   192,538 (18 ) Total loans receivable 8,236,948 7,660,145 8 Investment securities available-for-sale 1,672,335 1,113,006 50 Earning assets 10,197,908 8,944,862 14 Total assets 10,871,224 9,497,712 14   Deposits Noninterest-bearing demand $ 1,283,699 $ 1,241,363 3 Interest-bearing checking 404,328 418,524 (3 ) Money market 1,310,525 1,163,839 13 Savings   379,831   391,773 (3 ) Total core deposits 3,378,383 3,215,499 5 Time deposits less than $100,000 965,545 1,087,945 (11 ) Time deposits $100,000 or greater   2,862,437   2,407,942 19 Total time deposits   3,827,982   3,495,887 9 Total deposits 7,206,365 6,711,386 7 Interest-bearing liabilities 8,394,732 7,266,885 16 Stockholders' equity 1,051,416 879,490 20 EAST WEST BANCORP, INC. SELECTED FINANCIAL INFORMATION (In thousands) (unaudited)     Selected Ratios Three Months Ended September 30, %   2007     2006   Change For The Period Return on average assets 1.48 % 1.38 % 7 Return on average equity 15.19 % 14.94 % 2 Interest rate spread (3) 3.17 % 3.17 % (0 ) Net interest margin (3) 3.95 % 3.89 % 1 Yield on earning assets (3) 7.54 % 7.23 % 4 Cost of deposits 3.35 % 3.09 % 8 Cost of funds 3.78 % 3.51 % 8 Noninterest expense/average assets (1) 1.58 % 1.50 % 5 Efficiency ratio (1) 37.64 % 37.38 % 1 Net chargeoffs to average loans (2) 0.04 % 0.01 % 526 Gross loan chargeoffs $ 909 $ 152 498 Loan recoveries $ (56 ) $ (20 ) 180 Net loan chargeoffs $ 853   $ 132   546   Selected Ratios Nine Months Ended September 30, %   2007     2006   Change For The Period Return on average assets 1.52 % 1.46 % 4 Return on average equity 15.71 % 15.81 % (1 ) Interest rate spread (3) 3.20 % 3.33 % (4 ) Net interest margin (3) 3.96 % 4.04 % (2 ) Yield on earning assets (3) 7.51 % 7.08 % 6 Cost of deposits 3.38 % 2.84 % 19 Cost of funds 3.74 % 3.20 % 17 Noninterest expense/average assets (1) 1.53 % 1.51 % 1 Efficiency ratio (1) 36.73 % 36.48 % 1 Net chargeoffs to average loans (2) 0.03 % 0.01 % 277 Gross loan chargeoffs $ 1,964 $ 508 287 Loan recoveries $ (379 ) $ (117 ) 224 Net loan chargeoffs $ 1,585   $ 391   305   Period End Tier 1 risk-based capital ratio 8.98 % 9.18 % (2 ) Total risk-based capital ratio 10.57 % 10.97 % (4 ) Tier 1 leverage capital ratio 8.88 % 8.22 % 8 Nonperforming assets to total assets 0.37 % 0.12 % 211 Nonaccrual loans to total loans 0.50 % 0.13 % 285 Allowance for loan losses to total loans 0.99 % 0.94 % 5 Allowance for loan losses and unfunded loan commitments to total loans 1.12 % 1.08 % 4 Allowance for loan losses to nonaccrual loans 197.64 % 744.85 % (73 )     (1) Excludes the amortization of intangibles and investments in affordable housing partnerships.   (2) Annualized.   (3) Yields on certain securities have been adjusted upward to a "fully taxable equivalent" basis in order to reflect the effect of income which is exempt from federal income taxation at the current statutory tax rate.   EAST WEST BANCORP, INC. QUARTER TO DATE AVERAGE BALANCES, YIELDS AND RATES PAID (In thousands) (unaudited)           Three Months Ended September 30,   2007   2006   Average Average Volume Interest Yield (1) Volume Interest Yield (1)     ASSETS Interest-earning assets: Short-term investments $ 27,154 $ 348 5.08 % $ 7,712 $ 96 4.94 % Securities purchased under resale agreements 188,043 4,013 8.47 % 100,000 1,917 7.61 % Investment securities (2) 1,731,436 26,415 6.05 % 1,382,977 17,885 5.13 % Loans receivable 8,433,268 167,066 7.86 % 8,166,068 156,333 7.60 % Federal Home Loan Bank and Federal Reserve Bank stocks   81,671     1,107 5.38 %   80,671     1,106 5.44 % Total interest-earning assets   10,461,572     198,949 7.54 %   9,737,428     177,337 7.23 %   Noninterest-earning assets: Cash and due from banks 155,699 124,641 Allowance for loan losses (80,321 ) (77,804 ) Other assets   660,279     540,133   Total assets $ 11,197,229   $ 10,324,398       LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing liabilities: Checking accounts 404,418 1,615 1.58 % 393,218 1,393 1.41 % Money market accounts 1,287,573 13,322 4.10 % 1,232,879 12,342 3.97 % Savings deposits 424,039 1,198 1.12 % 407,904 746 0.73 % Time deposits less than $100,000 931,961 9,688 4.12 % 1,113,057 11,303 4.03 % Time deposits $100,000 or greater 2,961,353 36,235 4.85 % 2,513,360 28,112 4.44 % Federal funds purchased 172,064 2,316 5.34 % 107,639 1,462 5.39 % Federal Home Loan Bank advances 1,257,199 16,175 5.10 % 1,291,627 16,081 4.94 % Securities sold under repurchase agreements 962,458 10,263 4.23 % 751,095 7,024 3.71 % Long-term debt   220,106     4,102 7.39 %   184,023     3,432 7.40 % Total interest-bearing liabilities   8,621,171     94,914 4.37 %   7,994,802     81,895 4.06 %   Noninterest-bearing liabilities: Demand deposits 1,337,218 1,261,869 Other liabilities 150,048 115,292 Stockholders' equity   1,088,792     952,435   Total liabilities and stockholders' equity $ 11,197,229   $ 10,324,398     Interest rate spread 3.17 % 3.17 %   Net interest income and net yield on interest-earning assets (2) $ 104,035 3.95 % $ 95,442 3.89 %       (1) Annualized   (2) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate. EAST WEST BANCORP, INC. YEAR TO DATE AVERAGE BALANCES, YIELDS AND RATES PAID (In thousands) (unaudited)               Nine Months Ended September 30,   2007   2006 Average Average Volume Interest Yield (1) Volume Interest Yield (1)   ASSETS Interest-earning assets: Short-term investments $ 14,756 $ 564 5.11 % $ 11,167 $ 332 3.97 % Securities purchased under resale agreements 192,857 11,742 8.14 % 93,040 5,160 7.41 % Investment securities (2) 1,672,335 72,893 5.83 % 1,113,006 40,092 4.82 % Loans receivable 8,236,948 484,073 7.86 % 7,660,145 425,630 7.43 % Federal Home Loan Bank and Federal Reserve Bank stocks   81,012     3,275 5.40 %   67,504     2,716 5.38 % Total interest-earning assets   10,197,908     572,547 7.51 %   8,944,862     473,930 7.08 %   Noninterest-earning assets: Cash and due from banks 149,007 129,914 Allowance for loan losses (78,212 ) (74,765 ) Other assets   602,521     497,701   Total assets $ 10,871,224   $ 9,497,712       LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing liabilities: Checking accounts 404,328 4,954 1.64 % 418,524 4,095 1.31 % Money market accounts 1,310,525 40,879 4.17 % 1,163,839 31,261 3.59 % Savings deposits 379,831 2,411 0.85 % 391,773 1,948 0.66 % Time deposits less than $100,000 965,545 28,569 3.96 % 1,087,945 29,810 3.66 % Time deposits $100,000 or greater 2,862,437 105,331 4.92 % 2,407,942 75,610 4.20 % Federal funds purchased 153,422 6,164 5.37 % 102,343 3,789 4.95 % Federal Home Loan Bank advances 1,144,657 43,555 5.09 % 983,001 32,988 4.49 % Securities sold under repurchase agreements 970,780 27,675 3.81 % 535,992 14,906 3.72 % Long-term debt   203,207     11,235 7.39 %   175,526     9,346 7.12 % Total interest-bearing liabilities   8,394,732     270,773 4.31 %   7,266,885     203,753 3.75 %   Noninterest-bearing liabilities: Demand deposits 1,283,699 1,241,363 Other liabilities 141,377 109,974 Stockholders' equity   1,051,416     879,490   Total liabilities and stockholders' equity $ 10,871,224   $ 9,497,712     Interest rate spread 3.20 % 3.33 %   Net interest income and net yield on interest-earning assets (2) $ 301,774 3.96 % $ 270,177 4.04 %       (1) Annualized   (2) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.