EWBC reported quarterly earnings on Friday.  The company reports continuing problems with its construction loans, but have made a sizable additional loan loss provision in line with my previous expectation.  They stress tested their current loan portfolio by assuming market values decline by an additional 20% and find that the loan-to-value ratios still enable EWBC to recover their loans. 

I also buy their argument that the closure of IndyMac and raising of loan requirements for other lenders in the Southern California market has driven more business to EWBC, particularly the reliable business of ordinary home loans.  I suspect that a continuing shakeout of competitors will be good for EWBC as the business cycle resumes upwards. 

Although I am down on my original position which I purchased at $18, I doubled my position at a price of $9.5. 

Based on the above, I plan to continue to hold my position until there is evidence that reality is different than what I believe it to be, i.e. it's a fundamentally conservative and strong bank that will do well once the real estate market stabilizes.

What is their current dividend policy? What is it going forward?

Thanks,  three of the four mentioned are good uses of cash but stock buybacks are a waste to me. They can be used to prop up the stock price artifiially. They will most certainly issue more down the road just to buy them back later.