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8-K

East West Bancorp Inc (EWBC)

8-K 2021-07-22 For: 2021-07-22
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Added on April 12, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

July 22, 2021

EAST WEST BANCORP, INC.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)

000-24939

(Commission File Number)

95-4703316

(IRS Employer Identification No.)

135 North Los Robles Ave., 7th Floor, Pasadena, California 91101

(Address of principal executive offices) (Zip code)

(626) 768-6000

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, par value $0.001 per share EWBC The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

On July 22, 2021, East West Bancorp, Inc. (the “Company”) announced its financial results for the quarter ended June 30, 2021. A copy of the Company’s press release (the “Press Release”) is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference in this Item 2.02. The Press Release is “furnished” pursuant to General Instruction B.2 of Form 8-K and the information provided in Item 2.02 of this report, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities under that Section. The information provided in Item 2.02 of this report, including Exhibit 99.1, shall not be deemed incorporated by reference into any filings the Company has made or may make under the Securities Act of 1933 (the “Securities Act”) or the Exchange Act, except as otherwise expressly stated in such filing.

Item 7.01. Regulation FD Disclosure

On July 22, 2021, the Company will hold a conference call to discuss its financial results for the quarter ended June 30, 2021 and other matters relating to the Company. The Company has also made available on its website, www.eastwestbank.com, presentation materials containing certain historical and forward-looking information relating to the Company (the “Presentation Materials”). The Presentation Materials are furnished as Exhibit 99.2 and are incorporated by reference in this Item 7.01. All information in Exhibit 99.2 is presented as of the particular date or dates referenced therein, and the Company does not undertake any obligation to, and disclaims any duty to, update any of the information provided. The information provided in Item 7.01 of this report, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that Section, nor shall such information be deemed incorporated by reference into any filings the Company has made or may make under the Securities Act or the Exchange Act, except as otherwise expressly stated in such filing.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

99.1 Press Release, dated July 22, 2021.
99.2 Presentation Materials, dated July 22, 2021.
104 Cover Page Interactive Data (formatted in Inline XBRL).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EAST WEST BANCORP, INC.
Date: July 22, 2021 By: /s/ Irene H. Oh
Irene H. Oh
Executive Vice President and Chief Financial Officer

3

Document

Exhibit 99.1
East West Bancorp, Inc.
135 N. Los Robles Ave., 7th Fl.
Pasadena, CA 91101
Tel. 626.768.6000 NEWS RELEASE
--- FOR INVESTOR INQUIRIES, CONTACT:
--- ---
Irene Oh Julianna Balicka
Chief Financial Officer Director of Investor Relations and Corporate Finance
T: (626) 768-6360 T: (626) 768-6985
E: irene.oh@eastwestbank.com E: julianna.balicka@eastwestbank.com

EAST WEST BANCORP REPORTS NET INCOME FOR SECOND QUARTER 2021

OF $225 MILLION AND DILUTED EARNINGS PER SHARE OF $1.57

Pasadena, California – July 22, 2021 – East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, today reported its financial results for the second quarter of 2021. Net income for the second quarter of 2021 was $224.7 million, or $1.57 per diluted share. Second quarter 2021 return on average assets was 1.56% and return on average equity was 16.6%.

“East West had a very strong quarter of robust growth, expanding profitability and improving asset quality,” stated Dominic Ng, Chairman and Chief Executive Officer of East West. “As of June 30, 2021, our total loans reached a record $40.1 billion and our total deposits reached a record $52.6 billion.”

“Excluding the impact of the Paycheck Protection Program, loans grew by 12% annualized in the second quarter, with solid growth across our residential mortgage, commercial, and commercial real estate loan portfolios. Total deposits grew by 25% annualized, and noninterest-bearing demand deposits reached 41% of total deposits as of June 30, 2021. Our diversified growth reflects the strength of our business model, our commercial and consumer customer mix, and our geographic footprint in dynamic metropolitan areas of the United States.”

“Quarter-over-quarter, our revenue grew by 17% annualized and operating expenses decreased, driving adjusted pre-tax, pre-provision income growth of 33% annualized and expanding profitability,” continued Ng. “Our solid financial performance for the second quarter resulted in adjusted pre-tax, pre-provision profitability1 of 2.0% and a return on average tangible equity2 of 18.3%.”

“Asset quality continues to be healthy. Criticized loans fell by 15% quarter-over-quarter; net charge-offs were 0.13% of average loans, annualized, and the nonperforming assets ratio declined by seven basis points to 0.38% of total assets. Accordingly, we recorded a negative $15.0 million provision for credit losses in the second quarter.”

“We are pleased with our results this quarter and are positive about our outlook for the rest of the year,” concluded Ng. “The hard work and outstanding execution by all our associates builds a strong foundation for East West’s continued growth and success in the years to come. We are well poised to help our communities and customers thrive as the economy expands.”

1 See reconciliation of GAAP to non-GAAP financial measures in Table 12.
2 See reconciliation of GAAP to non-GAAP financial measures in Table 13.

BALANCE SHEET

•Record Assets – Total assets reached $59.9 billion as of June 30, 2021, up by $3.0 billion, or 21% annualized, from $56.9 billion as of March 31, 2021.

Second quarter 2021 average interest-earning assets of $54.9 billion grew by $2.0 billion, or 16% linked quarter annualized. The growth in average interest-earning assets consisted of a $1.5 billion increase in average available-for-sale (“AFS”) debt securities, an $893.0 million increase in average loans, and a $667.7 million increase in average assets purchased under resale agreements (“resale agreements”), partially offset by a $1.0 billion decrease in average interest-bearing cash and deposits with banks. The increase in average AFS debt securities and resale agreements largely reflected activity during the first quarter of 2021; on an end-of-period basis, AFS debt securities increased by $610.2 million and resale agreements increased by $139.1 million between June 30, 2021, and March 31, 2021.

•Record Loans – Total loans reached $40.1 billion as of June 30, 2021, up by $484.6 million, or 5% annualized, from $39.6 billion as of March 31, 2021. Excluding Paycheck Protection Program (“PPP”) loans of $1.4 billion as of June 30, 2021, total loans grew by $1.1 billion, or 12% linked quarter annualized. During the second quarter of 2021, $695.5 million of PPP loans outstanding were forgiven by the Small Business Administration. The Company funded 5,523 new PPP loans totaling $896.5 million in the first half of 2021.

Second quarter 2021 average loans of $39.6 billion grew by $893.0 million, or 9% linked quarter annualized. Excluding PPP loans, average loans grew by $953.6 million, or 10% annualized, from the first quarter of 2021. The strong loan growth during the quarter was broad-based, with the strongest growth from average residential mortgage loans, which increased by 19% linked quarter annualized. Average total CRE loans grew by 8% linked quarter annualized, and average C&I loans, excluding PPP, grew by 6% linked quarter annualized.

•Record Deposits – Total deposits reached $52.6 billion as of June 30, 2021, up by $3.0 billion, or 25% annualized, from $49.5 billion as of March 31, 2021. Noninterest-bearing demand deposits reached a record $21.8 billion as of June 30, 2021, up by $2.9 billion, or 61% annualized, from $18.9 billion as of March 31, 2021. Noninterest-bearing demand deposits made up 41% of total deposits as of June 30, 2021, up from 38% as of March 31, 2021, or 34% as of June 30, 2020.

Second quarter 2021 average deposits of $50.2 billion grew by $2.3 billion, or 20% linked quarter annualized. Growth in the second quarter was led by noninterest-bearing demand deposits, which increased by 36% linked quarter annualized. Time deposits decreased quarter-over-quarter, reflecting run-off of higher rate certificates of deposit.

•Capital Levels – Capital levels for East West are strong. As of June 30, 2021, stockholders’ equity was $5.5 billion, or $39.10 per common share, and tangible equity3 per common share was $35.75. As of June 30, 2021, the tangible equity to tangible assets ratio3 was 8.54%, the common equity tier 1 (“CET1”) capital ratio was 12.8%, and the total risk-based capital ratio was 14.3%.

3 See reconciliation of GAAP to non-GAAP financial measures in Table 13.

OPERATING RESULTS

Second Quarter Earnings – Second quarter 2021 net income was $224.7 million, or $1.57 per diluted share, an increase of 10% from $205.0 million, or $1.44 per diluted share, for the first quarter of 2021.

Second Quarter 2021 Compared to First Quarter 2021

Net Interest Income and Net Interest Margin

Net interest income (“NII”) totaled $376.5 million, an increase of 26% annualized from $353.7 million. Net interest margin (“NIM”) of 2.75% increased by four basis points from 2.71%.

•Excluding the impact of PPP loans, adjusted NII4 totaled $361.1 million, an increase of 27% annualized from $338.7 million. Adjusted NIM4 of 2.73% expanded by three basis points from 2.70%. PPP loans contributed $15.4 million to NII in the second quarter, compared with $15.0 million in the first quarter.

•NII growth reflected higher interest income, due to average loan, AFS debt securities and resale agreement volume growth, and decreased interest expense, due to a lower cost of deposits, a reduction of time deposit balances and pay off of FHLB advances. During the second quarter, $400.0 million of FHLB advances with an average rate of 2.25% matured.

•The yield on average earning assets of 2.92% was relatively stable quarter-over-quarter, contracting by one basis point from 2.93%. The average loan yield of 3.57% was likewise relatively stable, contracting by one basis point from 3.58%. Quarter-over-quarter, yields on AFS debt securities and resale agreements were lower, but the overall mix of earning assets was higher yielding due to a reduction of average interest-bearing cash and deposits with banks.

•The average cost of deposits of 0.14% decreased by four basis points from 0.18%. The average cost of interest-bearing deposits of 0.24% decreased by six basis points from 0.30%. The decrease in the cost of deposits primarily reflects continued downward repricing of time deposits to market rates, and a reduction in rates paid on money market accounts.

Noninterest Income

Noninterest income totaled $68.4 million in the second quarter, down from $72.9 million in the first quarter. Quarter-over-quarter growth in foreign exchange income, lending fees, deposit account fees, and wealth management fees drove a 15% increase in customer-driven fee income. However, the growth in customer-driven fee income was offset by an unfavorable change in the credit valuation adjustment of interest rate contracts and other derivatives.

•Included in interest rate contracts and other derivative income are fair value changes primarily due to the quarter-over-quarter change in the credit valuation adjustment. These fair value changes amounted to a $5.4 million loss in the second quarter, reflecting a quarter-over-quarter decline in long-term benchmark interest rates. In the first quarter, the comparable amount was a $14.1 million gain, reflecting an increase in long-term benchmark interest rates during the period.

•Other investment income totaled $7.6 million in the second quarter, up from $0.9 million in the first quarter, reflecting increased valuations of Community Reinvestment Act-related investments.

4 See reconciliation of GAAP to non-GAAP financial measures in Table 14.

Noninterest Expense

Noninterest expense totaled $189.5 million. Second quarter noninterest expense consisted of $161.5 million of adjusted noninterest expense5, $27.3 million in amortization of tax credit and other investments, and $0.7 million in amortization of core deposit intangibles.

•Adjusted noninterest expense of $161.5 million decreased by 2% from $165.0 million in the first quarter. Compensation and employee benefits expense decreased from a seasonally higher first quarter.

•Amortization of tax credit and other investments totaled $27.3 million, an increase from $25.4 million in the first quarter. Second quarter amortization of tax credit and other investments included $0.9 million of recoveries related to DC Solar tax credit investments. These recoveries amounted to $0.6 million after tax.

•The adjusted efficiency ratio5 was 36.3% in the second quarter, an improvement from 38.7% in the first quarter.

TAX RELATED ITEMS

Second quarter 2021 income tax expense was $45.6 million and the effective tax rate was 17%. Year-to-date for the first six months of 2021, the effective tax rate was 15%. For the full year, the Company expects the effective tax rate to be approximately 15%.

ASSET QUALITY

Quarter-over-quarter, criticized loans fell by $184.9 million, or 15%, with decreases of 23% in special mention and 9% in classified loans. The allowance for loan losses (“ALLL”) totaled $585.7 million, or 1.46% of loans held-for-investment (“HFI”), as of June 30, 2021, compared with $607.5 million, or 1.53% of loans HFI, as of March 31, 2021.

1

•Quarter-over-quarter, the ALLL decreased by $21.8 million, and the ALLL coverage ratio of loans HFI decreased by seven basis points. The change in the ALLL reflects an improved macroeconomic forecast, improved loan risk ratings, and lower expected losses over the expected life of the loans.

•As a result of the improvements noted above, during the second quarter of 2021, the Company recorded a negative $15.0 million provision for credit losses.

•Second quarter 2021 net charge-offs were $13.3 million, or annualized 0.13% of average loans HFI, down by $131 thousand, or one basis point, from $13.4 million, or annualized 0.14% of average loans HFI, for the first quarter of 2021.

•As of June 30, 2021, criticized loans totaled $1,032.0 million, or 2.58% of loans HFI, an improvement of 49 basis points from $1,216.9 million, or 3.07% of loans HFI, as of March 31, 2021. Special mention loans decreased by 23% to $386.8 million as of June 30, 2021, down from $504.2 million as of March 31, 2021. Classified loans decreased by 9% to $645.2 million as of June 30, 2021, down from $712.7 million as of March 31, 2021.

•Nonperforming assets were $225.7 million, or 0.38% of total assets, as of June 30, 2021, compared with $258.1 million, or 0.45% of total assets, as of March 31, 2021.

5 See reconciliation of GAAP to non-GAAP financial measures in Table 12.

CAPITAL STRENGTH

Capital levels for East West are strong. The following table presents the regulatory capital ratios as of June 30, 2021, March 31, 2021, and June 30, 2020.

EWBC Regulatory Capital Metrics Basel III
($ in millions) June 30,<br><br>2021 (a) March 31,<br><br>2021 (a) June 30,<br><br>2020 (a) Minimum<br>Capital<br>Ratio Well<br>Capitalized<br>Ratio Minimum<br><br>Capital Ratio +<br><br>Conservation Buffer (b)
Risk-Based Capital Ratios:
CET1 capital ratio 12.8 % 12.7 % 12.7 % 4.5 % 6.5 % 7.0 %
Tier 1 capital ratio 12.8 % 12.7 % 12.7 % 6.0 % 8.0 % 8.5 %
Total capital ratio 14.3 % 14.3 % 14.4 % 8.0 % 10.0 % 10.5 %
Leverage ratio 9.1 % 9.1 % 9.7 % 4.0 % 5.0 % 4.0 %
Risk-Weighted Assets (“RWA”) (c) $ 40,609 $ 39,572 $ 36,199 N/A N/A N/A

N/A Not applicable.

(a)The Company has elected to use the 2020 CECL transition provision in the calculation of its June 30, 2021, March 31, 2021 and June 30, 2020 regulatory capital ratios. The Company’s June 30, 2021 regulatory capital ratios and RWA are preliminary.

(b)An additional 2.5% capital conservation buffer above the minimum capital ratios are required in order to avoid limitations on distributions, including dividend payments and certain discretionary bonus payments to executive officers.

(c)Under regulatory guidelines, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories based on the nature of the obligor, or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar value in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total RWA.

DIVIDEND PAYOUT AND CAPITAL ACTIONS

East West’s Board of Directors has declared third quarter 2021 dividends for the Company’s common stock. The common stock cash dividend of $0.33 per share is payable on August 16, 2021, to stockholders of record on August 2, 2021.

On March 3, 2020, East West’s Board of Directors authorized the repurchase of up to $500 million of East West’s common stock. East West did not repurchase any shares during the second quarter of 2021, and has not repurchased any shares since the first quarter of 2020, under this authorization.

Conference Call

East West will host a conference call to discuss second quarter 2021 earnings with the public on Thursday, July 22, 2021 at 8:30 a.m. PT/11:30 a.m. ET. The public and investment community are invited to listen as management discusses second quarter 2021 results and operating developments.

•The following dial-in information is provided for participation in the conference call: calls within the U.S. – (877) 506-6399; calls within Canada – (855) 669-9657; international calls – (412) 902-6699.

•A presentation to accompany the earnings call will be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.

•A listen-only live broadcast of the call will also be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.

•A replay of the conference call will be available on July 22, 2021 at 11:30 a.m. PT through August 22, 2021. The replay numbers are: within the U.S. – (877) 344-7529; within Canada – (855) 669-9658; international calls – (412) 317-0088; and the replay access code is: 10157563.

About East West

East West Bancorp, Inc. is a public company with total assets of $59.9 billion and is traded on the Nasdaq Global Select Market under the symbol “EWBC”. The Company’s wholly owned subsidiary, East West Bank, is one of the largest independent banks headquartered in California, operating over 120 locations in the United States and in China. The Company’s markets in the United States include California, Georgia, Massachusetts, Nevada, New York, Texas and Washington. In China, East West’s presence includes full service branches in Hong Kong, Shanghai, Shantou and Shenzhen, and representative offices in Beijing, Chongqing, Guangzhou, and Xiamen. For more information on East West, visit the Company’s website at www.eastwestbank.com.

Forward-Looking Statements

Certain matters set forth herein (including any exhibits hereto) contain forward-looking statements that are intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. In addition, the Company may make forward-looking statements in other documents that it files with, or furnishes to, the U.S. Securities and Exchange Commission (the “SEC”) and management may make forward-looking statements to analysts, investors, media members and others. Forward-looking statements are statements that are not historical facts, and are based on current expectations, estimates and projections about the Company’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control, such as the future impacts of the COVID-19 pandemic. These statements relate to the Company’s financial condition, results of operations, plans, objectives, future performance and/or business. They usually can be identified by the use of forward-looking language, such as “likely result in,” “expects,” “anticipates,” “estimates,” “forecasts,” “projects,” “intends to,” “assumes,” “believes,” “plans,” “trend,” “objective,” “continues,” “remains,” “will,” “would,” “should,” “could,” “may,” “might,” “can,” or similar expressions, and the negative thereof. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including, but not limited to, those described in the documents incorporated by reference. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company.

There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such differences, some of which are beyond the Company’s control, include, but are not limited to: changes in the U.S. economy, including an economic slowdown, inflation, deflation, housing prices, employment levels, rate of growth and general business conditions; changes in local, regional and global business, economic and political conditions and geopolitical events; the impacts of the ongoing COVID-19 pandemic and any other pandemic, epidemic or health-related crisis; changes in laws or the regulatory environment including regulatory reform initiatives and policies of the U.S. Department of Treasury, the Federal Reserve, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the SEC, the Consumer Financial Protection Bureau and the California Department of Financial Protection and Innovation - Division of Financial Institutions, and the SBA; the changes and effects thereof in trade, monetary and fiscal policies and laws, including the ongoing trade dispute between the U.S. and the People’s Republic of China; changes in the commercial and consumer real estate markets; changes in consumer spending and savings habits; fluctuations in the Company’s stock price; changes in income tax laws and regulations; the Company’s ability to compete effectively against financial institutions in its banking markets and other entities, including as a result of emerging technologies; the soundness of other financial institutions; success and timing of the Company’s business strategies; the Company’s ability to retain key officers and employees; impact on the Company’s funding costs, net interest income and net interest margin from changes in key variable market interest rates, competition, regulatory requirements and the Company’s product mix; changes in the Company’s costs of operation, compliance and expansion; the Company’s ability to adopt and successfully integrate new technologies into its business in a strategic manner; impact of the benchmark interest rate reform in the U.S. including the transition away from USD LIBOR to alternative reference rates; impact of a communications or technology disruption, failure in, or breach of, the Company’s operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks, and other similar matters which could result in, among other things, confidential and/or proprietary information being disclosed or misused and materially impact the Company’s ability to provide services to its clients; adequacy of the Company’s risk management framework, disclosure controls and procedures and internal control over financial reporting; future credit quality and performance, including the Company’s expectations regarding future credit losses and allowance levels; impact of adverse changes to the Company’s credit ratings from major credit rating agencies; impact of adverse judgments or settlements in litigation; impact on the Company’s international operations due to political developments, disease pandemics, wars or other hostilities that may disrupt or increase volatility in securities or otherwise affect economic conditions; heightened regulatory and governmental oversight and scrutiny of the Company’s business practices, including dealings with consumers; impact of reputational risk from negative publicity, fines and penalties and other negative consequences from regulatory violations and legal actions and from the Company’s interactions with business partners, counterparties, service providers and other third parties; impact of regulatory enforcement actions; changes in accounting standards as may be required by the Financial Accounting Standards Board or other regulatory agencies and their impact on critical accounting policies and assumptions; impact of other potential federal tax changes and spending cuts; the Company’s capital requirements and its ability to generate capital internally or raise capital on favorable terms; impact on the Company’s liquidity due to changes in the Company’s ability to pay dividends and repurchase common stock and to receive dividends from its subsidiaries; any future strategic acquisitions or divestitures; changes in the equity and debt securities markets; fluctuations in foreign currency exchange rates; impact of climate change, social and sustainability concerns; significant turbulence or disruption in the capital or financial markets, which could result in, among other things, a reduction in the availability of funding or increases in funding costs, a reduction in investor demand for mortgage loans and declines in asset values and/or recognition of allowance for credit losses on securities held in the Company’s AFS debt securities portfolio; and impact of natural or man-made disasters or calamities, such as wildfires and earthquakes, which are particular to California, or conflicts, terrorism or other events that may directly or indirectly result in a negative impact on the Company’s financial performance.

For a more detailed discussion of some of the factors that might cause such differences, see the Company’s 2020 Form 10-K under the heading Item 1A. Risk Factors and the information set forth under Item 1A. Risk Factors in the Company’s Quarterly Reports on Form 10-Q. The Company does not undertake, and specifically disclaims any obligation to update or revise any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
( and shares in thousands, except per share data)
(unaudited)
Table 1
June 30, 2021<br>% or Basis Point Change
June 30, 2021 March 31, 2021 June 30, 2020 Qtr-o-Qtr Yr-o-Yr
Assets
$ 626,716 $ 582,270 $ 602,974 7.6 % 3.9 %
5,371,089 4,036,863 3,930,528 33.1 36.7
5,997,805 4,619,133 4,533,502 29.8 32.3
830,279 741,923 531,591 11.9 56.2
2,299,184 2,160,038 1,260,000 6.4 82.5
8,399,460 7,789,213 3,884,574 7.8 116.2
76,931 83,250 78,963 (7.6) (2.6)
1,819 — 3,875 100.0 (53.1)
39,485,775 38,981,242 36,597,341 1.3 7.9
287,432 284,862 201,888 0.9 42.4
364,187 361,438 251,318 0.8 44.9
465,697 465,697 465,697 — —
102,609 94,483 94,898 8.6 8.1
1,543,698 1,292,867 1,503,946 19.4 2.6
$ 59,854,876 $ 56,874,146 $ 49,407,593 5.2 % 21.1 %
Liabilities and Stockholders’ Equity
$ 52,582,575 $ 49,547,136 $ 40,672,678 6.1 % 29.3 %
— — 252,851 — (100.0)
248,464 653,035 656,759 (62.0) (62.2)
300,000 300,000 300,000 — —
151,997 152,195 1,580,442 (1) (0.1) (90.4)
110,105 101,828 102,708 8.1 7.2
914,187 834,925 854,912 9.5 6.9
54,307,328 51,589,119 44,420,350 5.3 22.3
5,547,548 5,285,027 4,987,243 5.0 11.2
$ 59,854,876 $ 56,874,146 $ 49,407,593 5.2 % 21.1 %
$ 39.10 $ 37.26 $ 35.25 4.9 % 10.9 %
$ 35.75 $ 33.90 $ 31.86 5.5 12.2
141,878 141,843 141,486 0.0 0.3
8.54 % 8.53 % 9.21 % 1 bp (67) bps

All values are in US Dollars.

(1)Includes $1.43 billion of advances from the Federal Reserve Paycheck Protection Program Liquidity Facility (“PPPLF”) as of June 30, 2020.

(2)See reconciliation of GAAP to non-GAAP financial measures in Table 13.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
TOTAL LOANS AND DEPOSITS DETAIL
( in thousands)
(unaudited)
Table 2
June 30, 2021<br>% Change
June 30, 2021 March 31, 2021 June 30, 2020 Qtr-o-Qtr Yr-o-Yr
Loans:
Commercial:
$ 13,790,461 $ 14,081,110 $ 13,422,691 (2.1) % 2.7 %
11,711,369 11,563,034 10,902,114 1.3 7.4
3,219,796 3,066,515 3,032,385 5.0 6.2
460,678 459,254 567,716 0.3 (18.9)
15,391,843 15,088,803 14,502,215 2.0 6.1
Consumer:
8,869,370 8,524,287 7,660,094 4.0 15.8
1,872,166 1,749,172 1,461,951 7.0 28.1
10,741,536 10,273,459 9,122,045 4.6 17.8
147,659 145,376 182,461 1.6 (19.1)
Total loans HFI (2) 40,071,499 39,588,748 37,229,412 1.2 7.6
Loans HFS 1,819 — 3,875 100.0 (53.1)
40,073,318 39,588,748 37,233,287 1.2 7.6
Allowance for loan losses (585,724) (607,506) (632,071) (3.6) (7.3)
$ 39,487,594 $ 38,981,242 $ 36,601,216 1.3 7.9
Deposits:
$ 21,816,721 $ 18,919,298 $ 13,940,420 15.3 % 56.5 %
6,762,178 7,005,693 5,280,887 (3.5) 28.1
12,853,812 12,218,957 10,002,624 5.2 28.5
2,719,106 2,604,355 2,186,199 4.4 24.4
8,430,758 8,798,833 9,262,548 (4.2) (9.0)
$ 52,582,575 $ 49,547,136 $ 40,672,678 6.1 % 29.3 %

All values are in US Dollars.

(1)Includes $1.43 billion, $2.07 billion and $1.75 billion of Paycheck Protection Program (“PPP”) loans as of June 30, 2021, March 31, 2021 and June 30, 2020, respectively.

(2)Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(67.0) million, $(76.9) million and $(72.1) million as of June 30, 2021, March 31, 2021 and June 30, 2020, respectively. Net origination fees related to PPP loans were $(25.9) million, $(34.3) million and $(25.4) million as of June 30, 2021, March 31, 2021 and June 30, 2020, respectively.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
( and shares in thousands, except per share data)
(unaudited)
Table 3
Three Months Ended June 30, 2021<br>% Change
June 30, 2021 March 31, 2021 June 30, 2020 Qtr-o-Qtr Yr-o-Yr
Interest and dividend income (1) $ 399,333 $ 381,386 $ 398,776 4.7 % 0.1 %
Interest expense 22,860 27,691 55,001 (17.4) (58.4)
Net interest income before provision for credit losses 376,473 353,695 343,775 6.4 9.5
(Reversal of) provision for credit losses (15,000) — 102,443 (100.0) NM
Net interest income after provision for credit losses 391,473 353,695 241,332 10.7 62.2
Noninterest income 68,431 72,866 55,707 (2) (6.1) 22.8
Noninterest expense 189,523 191,077 184,766 (2) (0.8) 2.6
Income before income taxes 270,381 235,484 112,273 14.8 140.8
Income tax expense 45,639 30,490 12,921 49.7 253.2
Net income $ 224,742 $ 204,994 $ 99,352 9.6 % 126.2 %
Earnings per share (“EPS”)
- Basic $ 1.58 $ 1.45 $ 0.70 9.5 % 125.6 %
- Diluted $ 1.57 $ 1.44 $ 0.70 9.5 124.3
Weighted-average number of shares outstanding
- Basic 141,868 141,646 141,486 0.2 % 0.3 %
- Diluted 143,040 142,844 141,827 0.1 0.9
Three Months Ended June 30, 2021<br>% Change
June 30, 2021 March 31, 2021 June 30, 2020 Qtr-o-Qtr Yr-o-Yr
Noninterest income:
$ 21,092 $ 18,357 $ 21,946 14.9 % (3.9) %
17,342 15,383 10,872 12.7 59.5
(3,172) 16,997 6,107 NM NM
13,007 9,526 4,562 36.5 185.1
7,951 6,911 3,091 15.0 157.2
1,491 1,781 132 (16.3) NM
632 192 9,640 229.2 (93.4)
7,596 925 (1,964) (2) 721.2 NM
2,492 2,794 1,321 (10.8) 88.6
Total noninterest income $ 68,431 $ 72,866 $ 55,707 (2) (6.1) % 22.8 %
Noninterest expense:
$ 105,426 $ 107,808 $ 96,955 (2.2) % 8.7 %
15,377 15,922 16,217 (3.4) (5.2)
4,274 3,876 3,700 10.3 15.5
3,817 3,892 3,353 (1.9) 13.8
4,035 4,478 4,480 (9.9) (9.9)
7,521 7,159 7,301 5.1 3.0
1,868 1,475 1,413 26.6 32.2
1,975 1,502 1,530 31.5 29.1
17,939 19,607 19,248 (8.5) (6.8)
27,291 25,358 21,829 (2) 7.6 25.0
— — 8,740 — (100.0)
Total noninterest expense $ 189,523 $ 191,077 $ 184,766 (2) (0.8) % 2.6 %

All values are in US Dollars.

NM - Not meaningful.

(1)Includes $15.4 million, $15.0 million and $21.3 million of interest income related to PPP loans for the three months ended June 30, 2021, March 31, 2021 and June 30, 2020, respectively.

(2)Starting fourth quarter of 2020, the Company has reclassified certain income/losses from equity method investments from Amortization of tax credit and other investments to Other investment income, with no effect on net income. June 30, 2020 comparative amounts have been revised to conform with the current presentation.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
( and shares in thousands, except per share data)
(unaudited)
Table 4
Six Months Ended June 30, 2021<br>% Change
June 30, 2021 June 30, 2020 Yr-o-Yr
Interest and dividend income (1) $ 780,719 $ 847,966 (7.9)%
Interest expense 50,551 141,484 (64.3)
Net interest income before provision for credit losses 730,168 706,482 3.4
(Reversal of ) provision for credit losses (15,000) 176,313 NM
Net interest income after provision for credit losses 745,168 530,169 40.6
Noninterest income 141,297 111,213 (2) 27.1
Noninterest expense 380,600 365,099 (2) 4.2
Income before income taxes 505,865 276,283 83.1
Income tax expense 76,129 32,107 137.1
Net income $ 429,736 $ 244,176 76.0%
EPS
- Basic $ 3.03 $ 1.71 77.7%
- Diluted $ 3.01 $ 1.70 76.7
Weighted-average number of shares outstanding
- Basic 141,758 143,150 (1.0)%
- Diluted 142,963 143,560 (0.4)
Six Months Ended June 30, 2021<br>% Change
June 30, 2021 June 30, 2020 Yr-o-Yr
Noninterest income:
$ 39,449 $ 37,719 4.6%
32,725 21,319 53.5
13,825 13,180 4.9
22,533 12,381 82.0
14,862 8,444 76.0
3,272 1,082 202.4
824 11,169 (92.6)
8,521 1,414 (2) 502.6
5,286 4,505 17.3
Total noninterest income $ 141,297 $ 111,213 (2) 27.1%
Noninterest expense:
$ 213,234 $ 198,915 7.2%
31,299 33,293 (6.0)
8,150 7,127 14.4
7,709 6,916 11.5
8,513 8,306 2.5
14,680 13,467 9.0
3,343 2,630 27.1
3,477 4,727 (26.4)
37,546 40,367 (7.0)
52,649 40,611 (2) 29.6
— 8,740 (100.0)
Total noninterest expense $ 380,600 $ 365,099 (2) 4.2%

All values are in US Dollars.

NM - Not meaningful.

(1)Includes $30.4 million and $21.3 million of interest income related to PPP loans for the six months ended June 30, 2021 and 2020, respectively.

(2)Starting fourth quarter of 2020, the Company has reclassified certain income/losses from equity method investments from Amortization of tax credit and other investments to Other investment income, with no effect on net income. June 30, 2020 comparative amounts have been revised to conform with the current presentation.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED AVERAGE BALANCES
( in thousands)
(unaudited)
Table 5
Three Months Ended June 30, 2021 <br>% Change Six Months Ended June 30, 2021 <br>% Change
June 30, 2021 March 31, 2021 June 30, 2020 Qtr-o-Qtr Yr-o-Yr June 30, 2021 June 30, 2020 Yr-o-Yr
Loans:
Commercial:
$ 13,811,966 $ 13,693,869 $ 13,560,719 0.9% 1.9% $ 13,753,244 $ 12,863,449 6.9%
11,616,916 11,325,679 10,812,399 2.6 7.4 11,472,102 10,649,041 7.7
3,125,001 3,042,079 2,987,311 2.7 4.6 3,083,769 2,938,577 4.9
477,860 549,337 594,965 (13.0) (19.7) 513,401 618,022 (16.9)
15,219,777 14,917,095 14,394,675 2.0 5.7 15,069,272 14,205,640 6.1
Consumer:
8,650,706 8,315,052 7,506,546 4.0 15.2 8,483,806 7,381,956 14.9
1,800,213 1,666,233 1,444,933 8.0 24.6 1,733,593 1,443,692 20.1
10,450,919 9,981,285 8,951,479 4.7 16.8 10,217,399 8,825,648 15.8
139,608 137,058 234,900 1.9 (40.6) 138,340 253,134 (45.3)
$ 39,622,270 $ 38,729,307 $ 37,141,773 2.3% 6.7% $ 39,178,255 $ 36,147,871 8.4%
Interest-earning assets $ 54,901,209 $ 52,852,045 $ 45,413,242 3.9% 20.9% $ 53,882,288 $ 43,887,886 22.8%
Total assets $ 57,771,837 $ 55,594,283 $ 48,228,914 3.9% 19.8% $ 56,689,075 $ 46,492,211 21.9%
Deposits:
$ 19,717,315 $ 18,093,696 $ 13,534,873 9.0% 45.7% $ 18,909,991 $ 12,326,291 53.4%
6,671,358 6,393,034 4,687,178 4.4 42.3 6,532,965 4,844,425 34.9
12,596,515 11,573,847 9,893,816 8.8 27.3 12,088,006 9,453,599 27.9
2,676,865 2,674,476 2,149,965 0.1 24.5 2,675,677 2,113,118 26.6
8,518,936 9,112,662 9,634,696 (6.5) (11.6) 8,814,159 9,949,351 (11.4)
$ 50,180,989 $ 47,847,715 $ 39,900,528 4.9% 25.8% $ 49,020,798 $ 38,686,784 26.7%
Interest-bearing liabilities $ 31,394,114 $ 30,863,568 $ 28,362,618 1.7% 10.7% $ 31,130,307 $ 27,977,979 11.3%
Stockholders’ equity $ 5,425,952 $ 5,338,098 $ 4,982,446 1.6% 8.9% $ 5,382,267 $ 5,002,226 7.6%

All values are in US Dollars.

(1)Includes average balances of PPP loans of $1.87 billion, $1.93 billion and $1.47 billion for the three months ended June 30, 2021, March 31, 2021 and June 30, 2020, respectively, and $1.90 billion and $732.5 million for the six months ended June 30, 2021 and 2020, respectively.

(2)Includes loans HFS.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
( in thousands)
(unaudited)
Table 6
Three Months Ended
June 30, 2021 March 31, 2021
Average Average Average Average
Balance Interest Yield/Rate (1) Balance Interest Yield/Rate (1)
Assets
Interest-earning assets:
$ 5,072,225 $ 3,628 0.29 % $ 6,117,799 $ 3,632 0.24 %
2,129,567 8,021 1.51 % 1,461,900 6,099 1.69 %
7,997,005 34,690 1.74 % 6,459,875 29,100 1.83 %
39,622,270 352,453 3.57 % 38,729,307 342,008 3.58 %
80,142 541 2.71 % 83,164 547 2.67 %
54,901,209 399,333 2.92 % 52,852,045 381,386 2.93 %
Noninterest-earning assets:
600,053 580,277
(607,523) (618,589)
2,878,098 2,780,550
$ 57,771,837 $ 55,594,283
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
$ 6,671,358 $ 3,777 0.23 % $ 6,393,034 $ 4,214 0.27 %
12,596,515 3,712 0.12 % 11,573,847 4,711 0.17 %
2,676,865 2,078 0.31 % 2,674,476 1,741 0.26 %
8,518,936 8,431 0.40 % 9,112,662 11,156 0.50 %
336 — — % 4,703 42 3.62 %
474,887 2,099 1.77 % 652,758 3,069 1.91 %
303,118 1,991 2.63 % 300,000 1,978 2.67 %
152,099 772 2.04 % 152,088 780 2.08 %
31,394,114 22,860 0.29 % 30,863,568 27,691 0.36 %
Noninterest-bearing liabilities and stockholders’ equity:
19,717,315 18,093,696
1,234,456 1,298,921
5,425,952 5,338,098
$ 57,771,837 $ 55,594,283
Interest rate spread 2.63 % 2.57 %
Net interest income and net interest margin $ 376,473 2.75 % $ 353,695 2.71 %
Adjusted net interest income and adjusted net interest margin (3) $ 361,096 2.73 % $ 338,678 2.70 %

All values are in US Dollars.

(1)Annualized.

(2)Includes loans HFS.

(3)Net interest income and net interest margin for the three months ended June 30, 2021 and March 31, 2021 have been adjusted for the impact of PPP loans. See reconciliation of GAAP to non-GAAP financial measures in Table 14.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
( in thousands)
(unaudited)
Table 7
Three Months Ended
June 30, 2021 June 30, 2020
Average Average Average Average
Balance Interest Yield/Rate (1) Balance Interest Yield/Rate (1)
Assets
Interest-earning assets:
$ 5,072,225 $ 3,628 0.29 % $ 3,435,920 $ 4,564 0.53 %
2,129,567 8,021 1.51 % 1,037,473 5,514 2.14 %
7,997,005 34,690 1.74 % 3,719,209 21,004 2.27 %
39,622,270 352,453 3.57 % 37,141,773 367,393 3.98 %
80,142 541 2.71 % 78,867 301 1.54 %
54,901,209 399,333 2.92 % 45,413,242 398,776 3.53 %
Noninterest-earning assets:
600,053 498,908
(607,523) (566,473)
2,878,098 2,883,237
$ 57,771,837 $ 48,228,914
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
$ 6,671,358 $ 3,777 0.23 % $ 4,687,178 $ 5,404 0.46 %
12,596,515 3,712 0.12 % 9,893,816 8,093 0.33 %
2,676,865 2,078 0.31 % 2,149,965 1,445 0.27 %
8,518,936 8,431 0.40 % 9,634,696 31,457 1.31 %
336 — — % 242,185 265 0.44 %
474,887 2,099 1.77 % 653,665 3,343 2.06 %
303,118 1,991 2.63 % 418,681 3,540 3.40 %
152,099 772 2.04 % 682,432 (3) 1,454 0.86 %
31,394,114 22,860 0.29 % 28,362,618 55,001 0.78 %
Noninterest-bearing liabilities and stockholders’ equity:
19,717,315 13,534,873
1,234,456 1,348,977
5,425,952 4,982,446
$ 57,771,837 $ 48,228,914
Interest rate spread 2.63 % 2.75 %
Net interest income and net interest margin $ 376,473 2.75 % $ 343,775 3.04 %
Adjusted net interest income and adjusted net interest margin (4) $ 361,096 2.73 % $ 322,949 2.96 %

All values are in US Dollars.

(1)Annualized.

(2)Includes loans HFS.

(3)Primarily includes average balances of PPPLF, which was repaid in full during the fourth quarter of 2020.

(4)Net interest income and net interest margin for the three months ended June 30, 2021 and June 30, 2020 have been adjusted for the impact of PPP loans. Net interest margin for the three months ended June 30, 2020 has been adjusted for advances from the PPPLF. See reconciliation of GAAP to non-GAAP financial measures in Table 14.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
YEAR-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
( in thousands)
(unaudited)
Table 8
Six Months Ended
June 30, 2020
Average Average Average
Interest Yield/Rate (1) Balance Interest Yield/Rate (1)
Assets
Interest-earning assets:
Interest-bearing cash and deposits with banks $ 5,592,124 $ 7,260 0.26 % $ 3,204,463 $ 15,672 0.98 %
Resale agreements (2) 1,797,578 14,120 1.58 % 959,807 11,139 2.33 %
AFS debt securities 7,232,686 63,790 1.78 % 3,496,974 41,146 2.37 %
Loans (3) 39,178,255 694,461 3.57 % 36,147,871 779,262 4.34 %
FHLB and FRB stock 81,645 1,088 2.69 % 78,771 747 1.91 %
Total interest-earning assets 53,882,288 780,719 2.92 % 43,887,886 847,966 3.89 %
Noninterest-earning assets:
Cash and due from banks 590,219 504,710
Allowance for loan losses (613,026) (529,385)
Other assets 2,829,594 2,629,000
Total assets $ 56,689,075 $ 46,492,211
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Checking deposits $ 6,532,965 $ 7,991 0.25 % $ 4,844,425 $ 15,650 0.65 %
Money market deposits 12,088,006 8,423 0.14 % 9,453,599 30,341 0.65 %
Savings deposits 2,675,677 3,819 0.29 % 2,113,118 3,262 0.31 %
Time deposits 8,814,159 19,587 0.45 % 9,949,351 73,549 1.49 %
Federal funds purchased and other short-term borrowings 2,508 42 3.38 % 151,081 821 1.09 %
FHLB advances 563,331 5,168 1.85 % 673,511 7,509 2.24 %
Repurchase agreements (2) 301,567 3,969 2.65 % 375,549 7,531 4.03 %
Long-term debt and finance lease liabilities 152,094 1,552 2.06 % 417,345 (4) 2,821 1.36 %
Total interest-bearing liabilities 31,130,307 50,551 0.33 % 27,977,979 141,484 1.02 %
Noninterest-bearing liabilities and stockholders’ equity:
Demand deposits 18,909,991 12,326,291
Accrued expenses and other liabilities 1,266,510 1,185,715
Stockholders’ equity 5,382,267 5,002,226
Total liabilities and stockholders’ equity $ 56,689,075 $ 46,492,211
Interest rate spread 2.59 % 2.87 %
Net interest income and net interest margin $ 730,168 2.73 % $ 706,482 3.24 %
Adjusted net interest income and adjusted net interest margin (5) $ 699,774 2.71 % $ 685,656 3.20 %

All values are in US Dollars.

(1)Annualized.

(2)Average balances of resale and repurchase agreements for the six months ended June 30, 2020 have been reported net, pursuant to ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. The weighted-average yields of gross resale and gross repurchase agreements for the six months ended June 30, 2020 were 2.32% and 3.76%, respectively.

(3)Includes loans HFS.

(4)Primarily includes average balances of PPPLF, which was repaid in full during the fourth quarter of 2020.

(5)Net interest income and net interest margin for the six months ended June 30, 2021 and June 30, 2020 have been adjusted for the impact of PPP loans. Net interest margin for the six months ended June 30, 2020 has been adjusted for advances from the PPPLF. See reconciliation of GAAP to non-GAAP financial measures in Table 14.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED RATIOS
(unaudited)
Table 9
Three Months Ended (1) June 30, 2021<br>Basis Point Change
June 30, 2021 March 31, 2021 June 30, 2020 Qtr-o-Qtr Yr-o-Yr
Return on average assets 1.56 % 1.50 % 0.83 % 6 bps 73 bps
Return on average equity 16.61 % 15.57 % 8.02 % 104 859
Return on average tangible equity (2) 18.28 % 17.17 % 8.96 % 111 932
Interest rate spread 2.63 % 2.57 % 2.75 % 6 (12)
Net interest margin 2.75 % 2.71 % 3.04 % 4 (29)
Adjusted net interest margin (2) 2.73 % 2.70 % 2.96 % 3 (23)
Average loan yield 3.57 % 3.58 % 3.98 % (1) (41)
Adjusted average loan yield (2) 3.58 % 3.60 % 3.90 % (2) (32)
Yield on average interest-earning assets 2.92 % 2.93 % 3.53 % (1) (61)
Average cost of interest-bearing deposits 0.24 % 0.30 % 0.71 % (6) (47)
Average cost of deposits 0.14 % 0.18 % 0.47 % (4) (33)
Average cost of funds 0.18 % 0.23 % 0.53 % (5) (35)
Adjusted pre-tax, pre-provision profitability ratio (2) 1.97 % 1.91 % 2.05 % 6 (8)
Adjusted noninterest expense/average assets (2) 1.12 % 1.20 % 1.28 % (8) (16)
Efficiency ratio 42.60 % 44.79 % 46.25 % (219) (365)
Adjusted efficiency ratio (2) 36.30 % 38.68 % 38.37 % (238) bps (207) bps
Six Months Ended (1) June 30, 2021<br>Basis Point Change
June 30, 2021 June 30, 2020 Yr-o-Yr
Return on average assets 1.53 % 1.06 % 47 bps
Return on average equity 16.10 % 9.82 % 628
Return on average tangible equity (2) 17.73 % 10.95 % 678
Interest rate spread 2.59 % 2.87 % (28)
Net interest margin 2.73 % 3.24 % (51)
Adjusted net interest margin (2) 2.71 % 3.20 % (49)
Average loan yield 3.57 % 4.34 % (77)
Adjusted average loan yield (2) 3.59 % 4.30 % (71)
Yield on average interest-earning assets 2.92 % 3.89 % (97)
Average cost of interest-bearing deposits 0.27 % 0.94 % (67)
Average cost of deposits 0.16 % 0.64 % (48)
Average cost of funds 0.20 % 0.71 % (51)
Adjusted pre-tax, pre-provision profitability ratio (2) 1.94 % 2.18 % (24)
Adjusted noninterest expense/average assets (2) 1.16 % 1.36 % (20)
Efficiency ratio 43.67 % 44.65 % (98)
Adjusted efficiency ratio (2) 37.47 % 38.38 % (91) bps

(1)Annualized except for efficiency ratio.

(2)See reconciliation of GAAP to non-GAAP financial measures in Tables 12, 13 and 14.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE-SHEET CREDIT EXPOSURES
( in thousands)
(unaudited)
Table 10
Three Months Ended June 30, 2021
Commercial Consumer Total
C&I Total CRE Total Residential Mortgage Other Consumer Total
Allowance for loan losses, March 31, 2021 $ 394,084 $ 192,895 $ 18,509 $ 2,018 $ 607,506
(Reversal of) provision for credit losses on loans (22,586) 10,747 859 2,209 (8,771)
Gross charge-offs (10,572) (4,456) — (32) (15,060)
Gross recoveries 1,338 344 100 3 1,785
Total net (charge-offs) recoveries (9,234) (4,112) 100 (29) (13,275)
Foreign currency translation adjustment 264 — — — 264
Allowance for loan losses, June 30, 2021 $ 362,528 $ 199,530 $ 19,468 $ 4,198 $ 585,724

All values are in US Dollars.

Three Months Ended March 31, 2021
Commercial Consumer Total
C&I Total CRE Total Residential Mortgage Other Consumer Total
Allowance for loan losses, December 31, 2020 $ 398,040 $ 201,603 $ 18,210 $ 2,130 $ 619,983
Provision for (reversal of) credit losses on loans (a) 3,839 (3,076) 398 (113) 1,048
Gross charge-offs (8,436) (7,283) (179) (1) (15,899)
Gross recoveries 760 1,651 80 2 2,493
Total net (charge-offs) recoveries (7,676) (5,632) (99) 1 (13,406)
Foreign currency translation adjustment (119) — — — (119)
Allowance for loan losses, March 31, 2021 $ 394,084 $ 192,895 $ 18,509 $ 2,018 $ 607,506
Three Months Ended June 30, 2020
--- --- --- --- --- ---
Commercial Consumer Total
C&I Total CRE Total Residential Mortgage Other Consumer Total
Allowance for loan losses, March 31, 2020 $ 362,629 $ 160,367 $ 30,703 $ 3,304 $ 557,003
Provision for (reversal of) credit losses on loans (a) 37,862 58,749 (1,462) (849) 94,300
Gross charge-offs (20,378) (320) (221) (30) (20,949)
Gross recoveries 602 853 161 93 1,709
Total net (charge-offs) recoveries (19,776) 533 (60) 63 (19,240)
Foreign currency translation adjustment 8 — — — 8
Allowance for loan losses, June 30, 2020 $ 380,723 $ 219,649 $ 29,181 $ 2,518 $ 632,071
EAST WEST BANCORP, INC. AND SUBSIDIARIES
--- --- --- --- ---
ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE-SHEET CREDIT EXPOSURES
( in thousands)
(unaudited)
Table 10 (continued)
Six Months Ended June 30, 2021
Commercial Consumer Total
C&I Total CRE Total Residential Mortgage Other Consumer Total
Allowance for loan losses, December 31, 2020 $ 398,040 $ 201,603 $ 18,210 $ 2,130 $ 619,983
(Reversal of) provision for credit losses on loans (18,747) 7,671 1,257 2,096 (7,723)
Gross charge-offs (19,008) (11,739) (179) (33) (30,959)
Gross recoveries 2,098 1,995 180 5 4,278
Total net (charge-offs) recoveries (16,910) (9,744) 1 (28) (26,681)
Foreign currency translation adjustment 145 — — — 145
Allowance for loan losses, June 30, 2021 $ 362,528 $ 199,530 $ 19,468 $ 4,198 $ 585,724

All values are in US Dollars.

Six Months Ended June 30, 2020
Commercial Consumer Total
C&I Total CRE Total Residential Mortgage Other Consumer Total
Allowance for loan losses, December 31, 2019 $ 238,376 $ 82,739 $ 33,792 $ 3,380 $ 358,287
Impact of ASU 2016-13 adoption 74,237 54,168 (5,468) 2,221 125,158
Allowance for loan losses, January 1, 2020 $ 312,613 $ 136,907 $ 28,324 $ 5,601 $ 483,445
Provision for (reversal of) credit losses on loans (a) 98,480 72,947 650 (3,121) 168,956
Gross charge-offs (32,355) (1,274) (221) (56) (33,906)
Gross recoveries 2,177 11,069 428 94 13,768
Total net (charge-offs) recoveries (30,178) 9,795 207 38 (20,138)
Foreign currency translation adjustment (192) — — — (192)
Allowance for loan losses, June 30, 2020 $ 380,723 $ 219,649 $ 29,181 $ 2,518 $ 632,071
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- ---
June 30, 2021 March 31, 2021 June 30, 2020 June 30, 2021 June 30, 2020
Unfunded Credit Facilities
Allowance for unfunded credit commitments, beginning of period (1) $ 32,529 $ 33,577 $ 20,829 $ 33,577 $ 11,158
Impact of ASU 2016-13 adoption — — — — 10,457
(Reversal of) provision for credit losses on unfunded credit commitments (b) (6,229) (1,048) 8,143 (7,277) 7,357
Allowance for unfunded credit commitments, end of period (1) $ 26,300 $ 32,529 $ 28,972 $ 26,300 $ 28,972
Provision for credit losses (a)+(b) $ (15,000) $ — $ 102,443 $ (15,000) $ 176,313

(1)Included in Accrued expense and other liabilities on the Consolidated Balance Sheet.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CRITICIZED LOANS, NONPERFORMING ASSETS AND CREDIT QUALITY RATIOS
( in thousands)
(unaudited)
Table 11
Criticized Loans March 31, 2021 June 30, 2020
Special mention loans 504,226 575,870
Classified loans 712,693 683,744
Total criticized loans 1,031,987 $ 1,216,919 $ 1,259,614
Nonperforming Assets March 31, 2021 June 30, 2020
Nonaccrual loans:
Commercial:
C&I 83,225 $ 125,536 $ 84,823
Total CRE 74,727 57,351
Consumer:
Total residential mortgage 29,173 34,138
Other consumer 2,526 2,508
Total nonaccrual loans 231,962 178,820
Other real estate owned, net 15,824 19,504
Other nonperforming assets 10,360 3,890
Total nonperforming assets 225,729 $ 258,146 $ 202,214
Credit Quality Ratios March 31, 2021 June 30, 2020
Annualized quarterly net charge-offs to average loans HFI % 0.14 % 0.21 %
Special mention loans to loans HFI % 1.27 % 1.55 %
Classified loans to loans HFI % 1.80 % 1.84 %
Criticized loans to loans HFI % 3.07 % 3.38 %
Nonperforming assets to total assets % 0.45 % 0.41 %
Nonaccrual loans to loans HFI % 0.59 % 0.48 %
Allowance for loan losses to loans HFI % 1.53 % 1.70 %

All values are in US Dollars.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
( in thousands)
(unaudited)
Table 12
Adjusted efficiency ratio represents adjusted noninterest expense divided by revenue. Adjusted pre-tax, pre-provision profitability ratio represents revenue less adjusted noninterest expense, divided by average total assets. Adjusted noninterest expense excludes the amortization of tax credit and other investments, the amortization of core deposit intangibles and the extinguishment cost on repurchase agreement. Management believes that the measures and ratios presented below provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods.
Three Months Ended
June 30, 2021 March 31, 2021 June 30, 2020
Net interest income before provision for credit losses $ 376,473 $ 353,695 $ 343,775
Total noninterest income (1) 68,431 72,866 55,707
Total revenue $ 444,904 $ 426,561 $ 399,482
Total noninterest expense (1) $ 189,523 $ 191,077 $ 184,766
Less: Amortization of tax credit and other investments (1) (27,291) (25,358) (21,829)
Amortization of core deposit intangibles (710) (732) (931)
Repurchase agreements’ extinguishment cost — — (8,740)
Adjusted noninterest expense $ 161,522 $ 164,987 $ 153,266
Efficiency ratio 42.60 % 44.79 % 46.25 %
Adjusted efficiency ratio 36.30 % 38.68 % 38.37 %
Adjusted pre-tax, pre-provision income $ 283,382 $ 261,574 $ 246,216
Average total assets $ 57,771,837 $ 55,594,283 $ 48,228,914
Adjusted pre-tax, pre-provision profitability ratio (2) 1.97 % 1.91 % 2.05 %
Adjusted noninterest expense/average assets (2) 1.12 % 1.20 % 1.28 %
Six Months Ended
June 30, 2021 June 30, 2020
Net interest income before provision for credit losses $ 730,168 $ 706,482
Total noninterest income (1) 141,297 111,213
Total revenue 871,465 817,695
Total noninterest expense (1) $ 380,600 $ 365,099
Less: Amortization of tax credit and other investments (1) (52,649) (40,611)
Amortization of core deposit intangibles (1,442) (1,884)
Repurchase agreements’ extinguishment cost — (8,740)
Adjusted noninterest expense $ 326,509 $ 313,864
Efficiency ratio 43.67 % 44.65 %
Adjusted efficiency ratio 37.47 % 38.38 %
Adjusted pre-tax, pre-provision income $ 544,956 $ 503,831
Average total assets $ 56,689,075 $ 46,492,211
Adjusted pre-tax, pre-provision profitability ratio (2) 1.94 % 2.18 %
Adjusted noninterest expense/average assets (2) 1.16 % 1.36 %

All values are in US Dollars.

(1)In the fourth quarter of 2020, the Company reclassified certain income/losses from equity-method investments from Amortization of tax credit and other investments to Other investment income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation.

(2)Annualized.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
( in thousands)
(unaudited)
Table 13
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible equity and tangible equity to tangible assets ratio are non-GAAP financial measures. Tangible equity and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.
June 30, 2021 March 31, 2021 June 30, 2020
Stockholders’ equity $ 5,547,548 $ 5,285,027 $ 4,987,243
Less: Goodwill (465,697) (465,697) (465,697)
Other intangible assets (1) (10,309) (11,151) (13,490)
Tangible equity $ 5,071,542 $ 4,808,179 $ 4,508,056
Total assets $ 59,854,876 $ 56,874,146 $ 49,407,593
Less: Goodwill (465,697) (465,697) (465,697)
Other intangible assets (1) (10,309) (11,151) (13,490)
Tangible assets $ 59,378,870 $ 56,397,298 $ 48,928,406
Total stockholders’ equity to total assets ratio 9.27 % 9.29 % 10.09 %
Tangible equity to tangible assets ratio 8.54 % 8.53 % 9.21 %

All values are in US Dollars.

Return on average tangible equity represents tangible net income divided by average tangible equity. Tangible net income excludes the after-tax impacts of the amortization of core deposit intangibles and mortgage servicing assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.
Three Months Ended Six Months Ended
June 30, 2021 March 31, 2021 June 30, 2020 June 30, 2021 June 30, 2020
Net Income $ 224,742 $ 204,994 $ 99,352 $ 429,736 $ 244,176
Add: Amortization of core deposit intangibles 710 732 931 1,442 1,884
Amortization of mortgage servicing assets 420 414 458 834 1,042
Tax effect of amortization adjustments (2) (321) (325) (394) (646) (830)
Tangible net income (e) $ 225,551 $ 205,815 $ 100,347 $ 431,366 $ 246,272
Average stockholders’ equity $ 5,425,952 $ 5,338,098 $ 4,982,446 $ 5,382,267 $ 5,002,226
Less: Average goodwill (465,697) (465,697) (465,697) (465,697) (465,697)
Average other intangible assets (1) (10,827) (11,594) (14,247) (11,209) (14,918)
Average tangible equity (f) $ 4,949,428 $ 4,860,807 $ 4,502,502 $ 4,905,361 $ 4,521,611
Return on average tangible equity (3) (e)/(f) 18.28 % 17.17 % 8.96 % 17.73 % 10.95 %

(1)Includes core deposit intangibles and mortgage servicing assets.

(2)Applied statutory tax rate of 28.37% for the three and six months ended June 30, 2021, and the three months ended March 31, 2021. Applied statutory tax rate of 28.35% for the three and six months ended June 30, 2020.

(3)Annualized.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
( in thousands)
(unaudited)
Table 14
In April 2020, the Company started accepting applications under the PPP administered by the Small Business Administration (“SBA”) under the Coronavirus Aid, Relief, and Economic Security Act and began to originate loans to qualified small businesses. In January 2021, the Company began processing applications under the second round of the SBA’s PPP in response to the Consolidated Appropriations Act, 2021 signed by the President on December 27, 2020. The PPP ended on May 31, 2021. These loans are included in the Company’s C&I portfolio, have an interest rate of one percent and are 100% guaranteed by the SBA. Loan processing fees paid to the Company from the SBA are accounted for as loan origination fees, where net deferred fees are recognized on a straight line basis over the estimated life of the loan as a yield adjustment on the loans. If a loan is paid off or forgiven by the SBA prior to its projected estimated life, the remaining unamortized deferred fees will be recognized as interest income in that period. The Company drew down 1.44 billion from the PPPLF during the second quarter of 2020. The remaining balance of 1.43 billion as of September 2020 was repaid in full during the fourth quarter of 2020.Adjusted loan yield and adjusted net interest margin for the three months ended June 30, 2021, March 31, 2021 and June 30, 2020, and six months ended June 30, 2021 and 2020 exclude the impact of PPP loans. Net interest margin for the three and six months ended June 30, 2020 has also been adjusted for advances from the PPPLF. Management believes that presenting the adjusted average loan yield and adjusted net interest margin provide comparability to prior periods and these non-GAAP financial measures provide supplemental information regarding the Company’s performance.
Three Months Ended Six Months Ended
Yield on Average Loans June 30, 2021 March 31, 2021 June 30, 2020 June 30, 2021 June 30, 2020
Interest income on loans $ 352,453 $ 342,008 $ 367,393 $ 694,461 $ 779,262
Less: Interest income on PPP loans (15,377) (15,017) (21,289) (30,394) (21,289)
Adjusted interest income on loans $ 337,076 $ 326,991 $ 346,104 $ 664,067 $ 757,973
Average loans $ 39,622,270 $ 38,729,307 $ 37,141,773 $ 39,178,255 $ 36,147,871
Less: Average PPP loans (1,870,385) (1,931,071) (1,465,013) (1,900,560) (732,506)
Adjusted average loans $ 37,751,885 $ 36,798,236 $ 35,676,760 $ 37,277,695 $ 35,415,365
Average loan yield (1) 3.57 % 3.58 % 3.98 % (1) 3.57 % 4.34 %
Adjusted average loan yield (1) 3.58 % 3.60 % 3.90 % (1) 3.59 % 4.30 %
Net Interest Margin
Net interest income $ 376,473 $ 353,695 $ 343,775 $ 730,168 $ 706,482
Less: Interest income on PPP loans (15,377) (15,017) (21,289) (30,394) (21,289)
Add: Interest expense on advances from the PPPLF — — 463 — 463
Adjusted net interest income $ 361,096 $ 338,678 $ 322,949 $ 699,774 $ 685,656
Average interest-earning assets $ 54,901,209 $ 52,852,045 $ 45,413,242 $ 53,882,288 $ 43,887,886
Less: Average PPP loans (1,870,385) (1,931,071) (1,465,013) (1,900,560) (732,506)
Adjusted average interest-earning assets $ 53,030,824 $ 50,920,974 $ 43,948,229 $ 51,981,728 $ 43,155,380
Net interest margin (1) 2.75 % 2.71 % 3.04 % (1) 2.73 % 3.24 %
Adjusted net interest margin (1) 2.73 % 2.70 % 2.96 % (1) 2.71 % 3.20 %

All values are in US Dollars.

(1)Annualized.

21

ewbc2q21earningspresenta

EWBC Earnings Results Second Quarter 2021 July 22, 2021

Forward-Looking Statements 2 Forward-Looking Statements This presentation contains forward-looking statements that are intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of the management of East West Bancorp, Inc. (the “Company”) and are subject to significant risks and uncertainties. You should not place undue reliance on these statements. Factors that could cause the Company’s actual results to differ materially from those described in the forward-looking statements include, among others, changes in the U.S. economy or local, regional and global business, economic and political conditions and geopolitical events; the impacts of the ongoing COVID-19 pandemic; changes in laws or the regulatory environment, including trade, monetary and fiscal policies and laws; and changes in the commercial and consumer real estate markets and in consumer spending and savings habits. These factors also consist of those contained in the Company’s filings with the Securities and Exchange Commission, including the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, and Quarterly Report for the quarterly period ended June 30, 2021. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make. These statements speak only as of the date they are made and are based only on information then actually known to the Company. The Company does not undertake to update any forward-looking statements except as required by law. Non-GAAP Financial Measures Certain financial information in this presentation has not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and is presented on a non-GAAP basis. Investors should refer to the reconciliations included in this presentation and should consider the Company’s non-GAAP measures in addition to, not as a substitute for or superior to, measures prepared in accordance with GAAP. These measures may not be comparable to similarly titled measures used by other companies.

9.0% 17.2% 18.3% 2Q20 1Q21 2Q21 8.0% 15.6% 16.6% 2Q20 1Q21 2Q21 0.83% 1.50% 1.56% 2Q20 1Q21 2Q21 Highlights of Second Quarter 2021 3 2Q21 Net Income $225 million 2Q21 Diluted EPS $1.57 Record Loans $40.1 billion Record Deposits $52.6 billion Record Demand Deposits $21.8 billion 2Q21 Total Revenue $445 million 2Q21 Adj. Efficiency Ratio* 36.3% Return on Average Assets Adjusted Pre-Tax, Pre-Provision Income* & Profitability Ratio* Return on Average Tangible Equity*Return on Average Equity Adj. PTPP income* Adj. PTPP profitability ratio* $ i n m ill io n s * See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases. $246 $262 $283 2.05% 1.91% 1.97% 2Q20 1Q21 2Q21

$ in millions, except per share data 06.30.21 03.31.21 Cash equivalents & ST investments $ 6,828 $ 5,361 $ 1,467 AFS debt securities & repo assets 10,699 9,949 750 Gross loans (ex. PPP) $ 38,640 $ 37,516 $ 1,124 PPP loans 1,433 2,073 (640) Total loans $ 40,073 $ 39,589 $ 484 Allowance for loan losses (ALLL) (586) (608) 22 Net Loans $ 39,488 $ 38,981 $ 507 Other assets 2,840 2,583 257 Total Assets $ 59,855 $ 56,874 $ 2,981 Customer deposits $ 52,583 $ 49,547 $ 3,036 FHLB advances & repo funding 548 953 (405) Other LT debt & finance lease liab. 152 152 - Other liabilities 1,024 937 87 Total Liabilities $ 54,307 $ 51,589 $ 2,718 Total Stockholders' Equity $ 5,548 $ 5,285 $ 263 Book value per share $ 39.10 $ 37.26 $ 1.84 Tangible equity per share* $ 35.75 $ 33.90 $ 1.85 Tang. equity to tang. assets ratio* 8.54% 8.53% 1 bp Total loans / deposits 76.2% 79.9% -3.7% ALLL / loans HFI 1.46% 1.53% (7) bp Q-o-Q Change 4 06.30.21: Strong, Well-Diversified Balance Sheet Record Loans as of 06.30.21: $40.1 billion ($ in billions) C&I (ex. PPP) Resi. mortgage & other consumerTotal CREPPP IB Checking & SavingsMMDADDA Time Record Deposits of 06.30.21: $52.6 billion ($ in billions) * See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases. $12.4 31% $1.4 4% $15.4 38% $10.9 27% $21.8 41% $12.9 24% $9.5 18% $8.4 16%

7.0% 8.5% 10.5% 5.0% 12.8% 12.8% 14.3% 9.1% CET1 capital ratio Tier 1 capital ratio Total capital ratio Leverage ratio 06.30.21: Strong Capital Ratios ▪ Book value per share of $39.10 as of 06.30.21: +5% Q-o-Q and +11% Y-o-Y. ▪ Tangible equity per share* of $35.75 as of 06.30.21: +5% Q-o-Q and +12% Y-o-Y. ▪ Tangible equity to tangible assets ratio* of 8.5% as of 06.30.21, stable relative to 03.31.21. ▪ CET1 and Tier 1 capital ratios up Q-o-Q, and total capital ratio stable Q-o-Q. ▪ Dividend: Quarterly common stock dividend of $0.33 per share, or $1.32 per share annualized. ▪ No buybacks during 2Q21. 5 **The Company has elected to use the 2020 CECL transition provision in the calculation of its June 30, 2021, regulatory capital ratios. Higher of the Regulatory requirement for the Minimum Capital Ratio + 2.5% Conservation Buffer, or the Well Capitalized Ratio EWBC as of 06.30.21 (preliminary)** * See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases.

PPP 4% Total CRE 38% Total Resi. Mortgage & Other Consumer 27% C&I 31% 6 Total Loans: C&I Loans by Industry as % of Total Loans Outstanding 06.30.21: Diversified Commercial Loan Portfolio ▪ C&I loans (ex. PPP): $12.4bn loans O/S plus $5.3bn undisbursed commitments: $17.7bn total commitments as of 06.30.21. ▪ Loans O/S up $351mm: +12% Q-o-Q annualized. ▪ Total commitments up $451mm: +10% Q-o-Q annualized. ▪ Avg. loans O/S up $179mm: +6% Q-o-Q annualized. ▪ C&I line utilization of 70%, stable Q-o-Q. ▪ PPP loans: $1.4bn as of 06.30.21, down from $2.1bn as of 03.31.21. During the second quarter, $695.5mm of PPP loans were forgiven by the SBA. ▪ During 1H21, funded 5,523 new PPP loans totaling $896.5mm. $12.4bn 4% 3% 3% 2% 2% 2% 2% 10% General Manufacturing & Wholesale Private Equity Entertainment Oil & Gas Real Estate related Clean Energy Technology & Life Science Food-related Industries Consumer Goods Healthcare All Other C&I 1% 1% 1% $40.1 billion Total Loans

C&I 31% PPP 4% Retail, 9% MFR, 8% Office, 7% Industrial, 6% Hotel, 5% All other CRE, 3% Total Resi. Mortgage & Other Consumer 27% Total CRE 38% 06.30.21: Diversified Commercial Real Estate Portfolio 7 Total Loans: Total CRE Loans by Property Type as % of Total Loans Outstanding ▪ Total CRE loans: $15.4bn as of 06.30.21: up $303mm, +8% Q-o-Q annualized. ▪ Avg. CRE loans also up $303mm: +8% Q-o-Q annualized. ▪ Owner-occupied CRE: $2.3bn as of 06.30.21, or 6% of total loans. ▪ Geographic distribution of CRE reflects EWBC’s branch footprint. ▪ Construction & land loans (in All other CRE): $461mm, or 1.1% of total loans. Total construction & land exposure of $704mm: loans O/S plus $243mm in undisbursed commitments. $15.4 billion Total CRE Loans Total CRE: Distribution by Geography $15.4bn $40.1 billion Total Loans SoCal 55% NorCal 22% NY 6% TX 7% WA 3% Other 7%

<=50% 42% >50% to 55% 17% >55% to 60% 16% >60% to 65% 15% >65% to 70% 6% >70% 4% Total CRE: Distribution by LTV 8 06.30.21: Low LTV Commercial Real Estate Portfolio ($ in mm) Average Loan Size Weight. Avg. LTV Retail $ 2.2 mm 49% Multifamily 1.3 mm 51% Office 4.1 mm 53% Industrial 2.4 mm 50% Hotel 8.6 mm 54% Construction & Land* 9.7 mm 53% Other 2.2 mm 48% Total CRE $ 2.4 mm 51% CRE LTV & Size by Property Type * Construction & Land avg. size based on total commitment. ▪ High percentage of CRE loans have full recourse & personal guarantees from individuals or guarantors with substantial net worth. ▪ Many of our customers have long-term relationships with East West Bank. $2.4 million Avg. size of loan outstanding 51% Avg. LTV

<=50% 33% >50% to 55% 14% >55% to 60% 41% >60% 12% SoCal 39% NorCal 12% NY 33% WA 6% TX 2% Other 8% 06.30.21: Low LTV Single Family Residential Mortgages 9 SFR: Distribution by Geography SFR: Distribution by LTV $8.9 billion SFR Loans Outstanding $389,000 Avg. size of loan outstanding 53% Avg. LTV ▪ Single-family residential (SFR) loans of $8.9bn as of 06.30.21: up $345mm, +16% Q-o-Q annualized. ▪ Avg. SFR loans up $336mm: +16% Q-o-Q annualized. ▪ Residential mortgage origination volume: record residential mortgage (SFR + HELOC) origination volume of $1.2bn in 2Q21, +5% Q-o-Q and +51% Y-o-Y. ▪ Primarily originated through East West Bank branches.

<=50% 51% >50% to 55% 7% >55% to 60% 41% >60% ,1% SoCal 46% NorCal 25% NY 12% WA 11% Other 6% 06.30.21: Low LTV Home Equity Lines of Credit 10 HELOC: Distribution by Geography HELOC: Distribution by LTV* HELOC: $1.9bn loans O/S plus $2.0bn in undisbursed commitments: $3.9bn total commitments as of 06.30.21. ▪ Loans O/S up $123mm: +28% Q-o-Q annualized. ▪ Total commitments up $278mm: +31% Q-o-Q annualized. ▪ Avg. loans O/S up $134mm: +32% Q-o-Q annualized. ▪ Utilization rate of 48% as of 06.30.21, unchanged Q-o-Q. ▪ As of 06.30.21, 88% of HELOC commitments were in first lien position. ▪ Primarily originated through East West Bank branches. * Combined LTV for 1st and 2nd liens. Based on commitment. $413,000 Avg. size of commitment 49% Avg. LTV* $1.9 billion HELOC Loans Outstanding

1.5% 1.3% 1.0% 1.7% 1.8% 1.6% 3.2% 3.1% 2.6% 12.31.20 03.31.21 06.30.21 Nonaccrual Ratio by Loan Portfolio (subset of Classified) (as of 06.30.21) 06.30.21: Asset Quality Metrics by Portfolio 11 Criticized Loans / Total Loans Criticized Ratio by Loan Portfolio (as of 06.30.21) NPAs / Total Assets Nonaccrual loans OREO & other NPAs ▪ Criticized loans down 15% Q-o-Q: $1,032mm as of 06.30.21, or 2.6% of loans HFI, vs. $1,217mm, or 3.1% of loans HFI, as of 03.31.21. ▪ Special mention: $387mm as of 06.30.21, -23% Q-o-Q. ▪ Classified: $645mm as of 06.30.21, -9% Q-o-Q. ▪ Nonperforming assets down 13% Q-o-Q: $226mm as of 06.30.21, or 0.38% of total assets, vs. $258mm, or 0.45% of total assets, as of 03.31.21. ▪ Accruing loans 30-89 days past due down 36% Q-o-Q: $55mm as of 06.30.21, or 0.14% of loans, vs. $87mm, or 0.22% of loans, as of 03.31.21. ▪ Oil & Gas (“O&G”) Loan Portfolio as of 06.30.21: ▪ Continuing to reduce exposure: O&G total commitments reduced 13% Q-o-Q through pay downs, pay offs and work outs. Total commitments: $1.1bn and loans O/S: $807mm. ▪ Portfolio: 60% E&P; 33% midstream & downstream; 7% oilfield services & other. ▪ Improving asset quality profile: O&G special mention loans: $29mm as of 06.30.21, down 53% Q-o-Q. O&G classified loans: $181mm as of 06.30.21, down 26% Q-o-Q. Reduction reflects pay downs, work outs and upgrades. ▪ 2Q21 O&G charge-offs: $8.6mm. ▪ O&G ALLL coverage as of 06.30.21: $79mm, or 9.8% of portfolio. ALLL reduction of $34mm Q-o-Q. Special Mention loans Classified loans Special Mention loans Classified loans 3.6% 22.5% 26.1% 3.3% 2.6% 0.3% O&G C&I All other C&I (ex. PPP) CRE Resi. mortgage & consumer 6.6% 0.3% 0.5% 0.3% O&G C&I All other C&I (ex. PPP) CRE Resi. mortgage & consumer 0.45% 0.45% 0.38% 12.31.20 03.31.21 06.30.21

$102 $10 $24 $0 $(15) $19 $24 $19 $13 $13 0.21% 0.26% 0.20% 0.14% 0.13% -0.05% 0.35% $(20) $100 2Q20 3Q20 4Q20 1Q21 2Q21 Provision for credit losses Net charge-offs NCO ratio (ann.) $483 $632 $618 $620 $608 $586 1.70% 1.65% 1.61% 1.53% 1.46% 1.39% 1.78% 1.73% 1.68% 1.62% 1.52% 0.50% $200 $700 01.01.20 (CECL) 06.30.20 09.30.20 12.31.20 03.31.21 06.30.21 ALLL ALLL/Loans HFI ALLL/Loans HFI (ex. PPP) ALLL by Loan Type: ▪ ALLL coverage of loans: 1.46% as of 06.30.21, equivalent to 1.52% ex. PPP loans. ▪ Q-o-Q, ALLL decreased $22mm and ALLL coverage ratio (ex. PPP) declined 10 bps (ex. PPP). ▪ Q-o-Q change in ALLL reflects an improved macroeconomic forecast, improved loan risk ratings, and lower expected losses over the expected life of the loans. ▪ Improved sector backdrop and improved risk profile of loans led to O&G ALLL reduction in 2Q. All other C&I ALLL coverage ticked down to 2.5% from 2.6% Q-o-Q. CRE coverage stable at 1.3%. ▪ Provision for credit losses in 2Q21 was a reversal of $(15mm), compared with $0mm in 1Q21. ▪ Net charge-offs: $13.3mm in 2Q21, vs. $13.4mm in 1Q21. NCO ratio: 0.13% (ann.) in 2Q21, down from 0.14% (ann.) in 1Q21. 2Q21: Allowance for Loan Losses & Credit Costs 12 Composition of ALLL by Portfolio: Allowance for Loan Losses Coverage Ratio $ i n m ill io n s Provision for Credit Losses & Net Charge-offs $ i n m ill io n s Total: $608 $ i n m ill io n s ; ra ti o i s a llo w a n c e c o v e ra g e b y p o rt fo lio Total:1.53%Total: $586 Total:1.46% Oil & gas C&I Total CREAll other C&I (ex. PPP) Resi. mortgage & consumer 113 79 11.6% 9.8% 281 283 2.6% 2.5% 193 200 1.3% 1.3% 21 24 0.2% 0.2% 03.31.21 06.30.21 03.31.21 06.30.21

2Q21: Summary Income Statement 13 * See slide 18 for noninterest income detail by category. Comments ▪ Noninterest income: ▪ Q-o-Q increase in other investment income, which totaled $8mm in 2Q21, up from $1mm in 1Q21, reflecting higher valuations of Community Reinvestment Act-related investments. ▪ Mark-to-market adjustments in interest rate contracts & other derivative income amounted to $(5mm) in 2Q21, vs. +$14mm in 1Q21. These primarily related to Q-o-Q changes in the credit valuation adjustment, reflecting movement of long-term benchmark interest rates. ▪ Amortization of tax credit & other investments: 2Q21 included $1mm of recoveries related to DC Solar tax credit investments. This amounted to $0.6mm after tax, or less than half a cent per share. ▪ Tax rate: YTD in 1H21, effective tax rate was 15%. ** See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases. 2Q21 vs. 1Q21 $ in millions, except per share data & ratios 2Q21 1Q21 $ Change % Change Net interest income (ex. PPP) $ 361.1 $ 338.7 22.4 7% PPP income 15.4 15.0 0.4 2% Total net interest income $ 376.5 $ 353.7 $ 22.8 6% Fee income & net GOS of loans* 63.1 54.8 8.3 15% GOS of AFS debt securities 0.6 0.2 0.4 230% Other 4.7 17.9 (13.2) -74% Total noninterest income* $ 68.4 $ 72.9 $ (4.5) -6% Total revenue $ 444.9 $ 426.6 $ 18.3 4% Adjusted noninterest expense** $ 161.5 $ 165.0 $ (3.5) -2% Amortization of tax credit & other investments + core deposit intangibles 28.0 26.1 1.9 7% Total noninterest expense $ 189.5 $ 191.1 $ (1.6) -1% Provision for credit losses $ (15.0) $ 0.0 $ (15.0) NM Income tax expense 45.6 30.5 15.1 50% Effective tax rate 17% 13% 4% Net Income (GAAP) $ 224.7 $ 205.0 $ 19.7 10% Diluted EPS (GAAP) $ 1.57 $ 1.44 $ 0.13 9% Weigh. avg. diluted shares (in mm) 143.0 142.8 0.2 0.1%

13.5 14.3 16.3 18.1 19.7 9.9 10.0 10.6 11.6 12.66.9 7.9 8.5 9.0 9.49.6 9.0 9.0 9.1 8.5$39.9 $41.2 $44.4 $47.8 $50.2 2Q20 3Q20 4Q20 1Q21 2Q21 12.1 11.5 11.6 11.8 11.9 14.4 14.6 14.7 14.9 15.2 9.1 9.3 9.7 10.1 10.6 1.5 1.8 1.7 1.9 1.9$37.1 $37.2 $37.7 $38.7 $39.6 2Q20 3Q20 4Q20 1Q21 2Q21 2Q21: Average Balance Sheet: Growth & Mix 14 ▪ 2Q21 avg. loan growth: +9% LQA (+$893mm Q-o-Q) or +10% LQA ex. PPP (+$954mm). Growth in all major loan portfolios. ▪ 2Q21 avg. deposit growth: +20% LQA (+$2.3bn Q-o-Q). Growth was led by non-IB DDA: +36% LQA (+$1.6bn Q-o-Q). Run-off of higher-rate CDs: avg. CDs down $594mm between 2Q and 1Q. ▪ 2Q21 AEA growth: +16% LQA (+$2.0bn Q-o-Q). Increase of +$1.5bn in AFS debt securities and +$668mm in repo assets; partially offset by $(1.0)bn decrease in IB cash & equivalents. Increase in average AFS debt securities and resale agreements largely reflected activity from the first quarter of 2021. Overall, the mix of AEA was higher yielding in 2Q21. ▪ FHLB advances: $400mm at a blended rate of 2.25% matured and were paid off in 2Q21, lowering cost of funds. $ i n b ill io n s Average Loans & Growth +0.2% +11% +9%+6% LQA avg. total loan growth C&I (ex. PPP) Total CRE Residential mortgage & other consumerPPP Average Deposits & Growth Avg. Earning Asset (AEA) Mix & Loan-to-Deposit Ratio LQA avg. total deposit growthDDA MMDA IB Checking & Savings Time $ i n b ill io n s +13% +31% +20% +31% 11% 11% 13% 15% 19% 8% 10% 11% 12% 9% L/D: 93% L/D: 90% L/D: 85% L/D: 81% L/D: 79% 40%-20% 100% 2Q20 3Q20 4Q20 1Q21 2Q21 Loans / AEA Securities & other / AEA IB Cash & equivalent / AEA Avg. Loan / Deposit Ratio

2Q21: Net Interest Income & Net Interest Margin 15 ▪ 2Q21 NII: $376mm, +6% Q-o-Q (+26% annualized) from $354mm in 1Q21. 2Q21 NIM: 2.75%, +4 bps Q-o-Q. ▪ 2Q21 adj.* NII (ex. PPP): $361mm, +7% Q-o-Q (+27% ann.) from $339mm in 1Q21. ▪ 2Q21 adj.* NIM: 2.73%, +3 bps Q-o-Q. ▪ Net interest income related to PPP: $15mm in 2Q21, stable from 1Q21. ▪ As of 06.30.21, $26mm of PPP deferred fees remaining to accrete in 2021 and 2022. ▪ Q-o-Q, lower cost of deposits more than offset drag to NIM from lower loan and other AEA yields. Deployment of excess liquidity expanded NIM Q-o-Q. Impact to NIM from Q-o-Q Change in Yields, Rates, & Balance Sheet Mix $ i n m ill io n s 1Q21 NIM 2Q21 NIM Lower cost of IB deposits Adj.* NIM ex PPP: 2.70% +3 bps +3 bps -1 bp -1 bp 1Q21 NIM: 2.71% 2Q21 NIM: 2.75% Adj.* NIM ex PPP: 2.73% Deployment of excess liquidity Lower other AEA yields Lower loan yields * See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases. $344 $324 $347 $354 $376 3.04% 2.72% 2.77% 2.71% 2.75% 2.96% 2.77% 2.76% 2.70% 2.73% 2Q20 3Q20 4Q20 1Q21 2Q21 NII NIM Adj. NIM* Net Interest Income & Net Interest Margin * Adj. NIM excludes net interest income related to PPP loans.

343 343 447 430 346 346 433 431 336 335 421 419 337 334 413 415 C&I (ex. PPP) Total CRE SFR HELOC 3Q20 4Q20 1Q21 2Q21 2Q21: Average Loan Yields 16 Adj. Avg. Loan Yield* (in bps) Relative to Prime Rate & LIBOR Average Loan Yield (in bps) by Portfolio GAAP Yield: 357 bps GAAP Yield: 360 bps GAAP Yield: 368 bps * See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases. GAAP Yield: 358 bps Total fixed and hybrid in fixed period 32% (ex PPP). Variable: LIBOR rates Hybrid in fixed rate period Fixed rate Variable: Prime rate Variable: all other rates PPP Loan Portfolio by Index Rate (06.30.21) ▪ Essentially stable loan yields: 2Q21 avg. loan yield: 3.57%, -1 bp Q-o-Q. ▪ Ex. PPP, 2Q21 adj. avg. loan yield*: 3.58%, -2 bps Q-o-Q. ▪ As of 06.30.21, $5.3bn of variable rate loans had fully indexed interest rates below floors. Of those, $1.3bn were 25 bps or less from their floor rate, and $1.1bn were 25 to 50 bps from their floor rate. Note: SFR yield computation based on 30/360 days. 390 370 369 360 358 0.36% 0.16% 0.15% 0.12% 0.10% 0 400 -1% 4% 2Q20 3Q20 4Q20 1Q21 2Q21 Adj. avg. loan yield (ex. PPP) Avg. Prime Rate Avg. 1M LIBOR Rate 3.25% GAAP Yield: 398 bps 17% 15% 27% 31% 6% 4%

33 50 31 27 26 93 25 40 28 21 27 74 18 30 27 17 26 50 14 24 23 12 31 40 Cost of total deposits Cost of IB deposits IB Checking MMDA Savings Time 3Q20 4Q20 1Q21 2Q21 47 33 25 18 14 71 50 40 30 24 0.00 2Q20 3Q20 4Q20 1Q21 2Q21 Cost of total deposits Cost of IB deposits Avg. Fed Funds rate 2Q21: Average Cost of Deposits 17 Average Cost of Deposits (in bps) Relative to Fed Funds Rate ▪ Spot rate of total deposits: 0.13% as of 06.30.21 (vs. 0.16% as of 03.31.21). ▪ Spot rate of IB deposits: 0.22% as of 06.30.21 (vs. 0.26% as of 03.31.21). ▪ Repricing of maturing CDs to lower rates: ▪ Domestic CD spot rate as of 06.30.21: 0.29% (down from 0.35% as of 03.31.21). ▪ Originations & renewals of CDs in 2Q21: $4.5bn @ blended rate of 0.19% and weighted avg. duration of 4mo. Origination & renewal rate in 1Q21: 0.20%. ▪ Upcoming CD maturities: $927mm @ blended rate of 0.55% in 3Q21; $1.0bn @ blended rate of 0.35% in 4Q21. Average Cost of Deposits (in bps) by Type DDA MMDA IB Checking & Savings Time 2Q21 Average Deposits: $50.2 billion ($ in billions) 0.25% $19.7 39% $12.6 25% $9.4 19% $8.5 17%

21.9 18.7 18.4 18.4 21.1 33% 10.9 12.6 14.3 15.4 17.3 27% 4.6 3.3 6.7 9.5 13.0 21% 3.1 4.6 4.5 6.9 8.0 13% 11.6 8.5 6.2 2.9 2.2 3% 0.1 0.3 3.0 1.7 1.5 3% $52.2 $48.0 $53.1 $54.8 $63.1 0.0 50.0 2Q20 3Q20 4Q20 1Q21 2Q21 2Q21 Mix Lending Fees Deposit Account Fees Foreign Exchange Income Wealth Management Fees IRC Revenue Gain on Loans 2Q21: Noninterest Income Detail Total noninterest income: $68mm in 2Q21, down from $73mm in 1Q21. ▪ Fee income and net gains on sales of loans: $63mm in 2Q21, up by $8mm from $55mm in 1Q21 (+15% Q-o-Q). ▪ Growth in foreign exchange income, lending fees, wealth management and deposit account fees reflected growth in customer-driven transactions. ▪ Total interest rate contracts and other derivative income: customer-driven revenue decreased Q-o-Q to $2.2mm, reflecting lower transaction volume and demand in the current environment. Q-o-Q, unfavorable change in the CVA reflected movement in long-term benchmark interest rates. 18 Interest Rate Contracts and Other Derivative Income Detail ($ in millions) 2Q20 3Q20 4Q20 1Q21 2Q21 Revenue $ 11.6 $ 8.5 $ 6.2 $ 2.9 $ 2.2 MTM (5.5) (3.0) 6.8 14.1 (5.4) Total $ 6.1 $ 5.5 $ 13.0 $ 17.0 $ (3.2) * Fee income excludes mark-to-market (“MTM”) adjustments related to interest rate contracts (“IRC”) and other derivatives; net gains on sales of securities; gains on sale of fixed assets, and other income. ▪ Revenue – interest rate contracts and other derivatives transaction fees. ▪ MTM adjustments primarily composed of credit valuation adjustment (“CVA”) changes related to interest rate contracts and other derivatives. Fee Income* & Net Gains on Sales of Loans $ i n m ill io n s

$153 $154 $166 $165 $162 38.4% 40.8% 39.8% 38.7% 36.3% 30.0% 60.0% $130 2Q20 3Q20 4Q20 1Q21 2Q21 Adj. noninterest expense* Adj. efficiency ratio* 97.0 99.8 105.4 107.8 105.4 65% 16.2 16.6 16.5 15.9 15.4 10% 11.8 12.1 11.7 11.6 11.6 7%9.1 8.4 8.5 9.0 9.2 6% 19.2 17.5 23.5 20.7 19.9 12% $153.3 $154.4 $165.6 $165.0 $161.5 2Q20 3Q20 4Q20 1Q21 2Q21 2Q21 Mix Comp and employee benefits Occupancy & Equipment Computer software & Data processing Deposit & loan related All other 2Q21: Operating Expense & Efficiency 19 Adjusted Noninterest Expense* $ i n m ill io n s Adj. Noninterest Expense* & Adj. Efficiency Ratio* ▪ 2Q21 noninterest expense: $189.5mm. ▪ 2Q21 adj.* noninterest expense: $161.5mm, down $3mm from $165.0mm in 1Q21 (-2% Q-o-Q). ▪ Compensation & employee benefits expense decreased from a seasonally higher 1Q. ▪ Y-o-Y, adj. noninterest expense up 5%. ▪ Adj. efficiency ratio* improved to 36.3% in 2Q21 due to revenue growth and careful expense management Q-o-Q. ▪ Achieved industry-leading operating efficiency in each of the past five quarters. ▪ Continually making investments in technology to expand banking products & capabilities, and to develop commercial & consumer digital banking platforms. $ i n m ill io n s * See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases.

Management Outlook: Full Year 2021 20 Earnings drivers FY 2021 expectations compared with FY 2020 results Prior Outlook 2020 actual End of Period Loans (ex. PPP) ▪ Increase at a percentage rate of 9% to 10% Y-o-Y. ▪ Increase at a percentage rate approx. 8% Y-o-Y. $36.8 billion (ex. PPP) +6% Y-o-Y (ex. PPP) Adj. Net Interest Income* (ex. PPP) ▪ Increase at a percentage rate of 10% to 11% Y-o-Y. ▪ Adj. NII growth expected to be generally in line with loan growth on a full year basis. $1.3 billion -8% Y-o-Y Adj. Noninterest Expense* (ex. tax credit investment & core deposit intangible amort.) ▪ Increase at a percentage rate of approximately 5% Y-o-Y. ▪ No change to outlook. $634 million (ex. debt extinguishment cost) -2% Y-o-Y Provision for Credit Losses ▪ Based on current macroeconomic forecast and loan growth outlook, we do not expect to book a provision for credit losses for the second half of the year. ▪ Do not expect to book a provision for credit losses for the full year. $211 million +113% Y-o-Y Tax Items ▪ Full year 2021 effective tax rate of approx. 15%, including the impact of tax credit investments. Expect quarterly variability due to timing of tax credit investments placed into service. ▪ No change to outlook. FY effective tax rate: 17% Interest Rates ▪ No change to the Fed Funds rate in 2021. ▪ No change to outlook. Fed Funds rate cut: -150 bps * See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases.

APPENDIX

Appendix: GAAP to Non-GAAP Reconciliation 22 EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Adjusted efficiency ratio represents adjusted noninterest expense divided by revenue. Adjusted pre-tax, pre-provision profitability ratio represents revenue less adjusted noninterest expense, divided by average total assets. Adjusted noninterest expense excludes the amortization of tax credit and other investments, the amortization of core deposit intangibles and the extinguishment cost on repurchase agreement. Management believes that the measures and ratios presented below provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods. (1) In the fourth quarter of 2020, the Company reclassified certain income/losses from equity-method investments from Amortization of tax credit and other investments to Other investment income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation. (2) Annualized. Three Months Ended June 30, 2021 March 31, 2021 June 30, 2020 Net interest income before provision for credit losses (a) $ 376,473 $ 353,695 $ 343,775 Total noninterest income (1) 68,431 72,866 55,707 Total revenue (b) $ 444,904 $ 426,561 $ 399,482 Total noninterest expense (1) (c) $ 189,523 $ 191,077 $ 184,766 Less: Amortization of tax credit and other investments (1) (27,291) (25,358) (21,829) Amortization of core deposit intangibles (710) (732) (931) Repurchase agreements’ extinguishment cost — — (8,740) Adjusted noninterest expense (d) $ 161,522 $ 164,987 $ 153,266 Efficiency ratio (c)/(b) 42.60% 44.79% 46.25% Adjusted efficiency ratio (d)/(b) 36.30% 38.68% 38.37% Adjusted pre-tax, pre-provision income (b)-(d) = (e) $ 283,382 $ 261,574 $ 246,216 Average total assets (f) $ 57,771,837 $ 55,594,283 $ 48,228,914 Adjusted pre-tax, pre-provision profitability ratio (2) (e)/(f) 1.97% 1.91% 2.05% Adjusted noninterest expense/average assets (2) (d)/(f) 1.12% 1.20% 1.28% Six Months Ended

Appendix: GAAP to Non-GAAP Reconciliation 23 EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible equity and tangible equity to tangible assets ratio are non-GAAP financial measures. Tangible equity and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion. (1) Includes core deposit intangibles and mortgage servicing assets. June 30, 2021 March 31, 2021 June 30, 2020 Stockholders’ equity (a) $ 5,547,548 $ 5,285,027 $ 4,987,243 Less: Goodwill (465,697) (465,697) (465,697) Other intangible assets (1) (10,309) (11,151) (13,490) Tangible equity (b) $ 5,071,542 $ 4,808,179 $ 4,508,056 Total assets (c) $ 59,854,876 $ 56,874,146 $ 49,407,593 Less: Goodwill (465,697) (465,697) (465,697) Other intangible assets (1) (10,309) (11,151) (13,490) Tangible assets (d) $ 59,378,870 $ 56,397,298 $ 48,928,406 Total stockholders’ equity to total assets ratio (a)/(c) 9.27% 9.29% 10.09% Tangible equity to tangible assets ratio (b)/(d) 8.54% 8.53% 9.21%

Appendix: GAAP to Non-GAAP Reconciliation 24 EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Return on average tangible equity represents tangible net income divided by average tangible equity. Tangible net income excludes the after-tax impacts of the amortization of core deposit intangibles and mortgage servicing assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion. (1) Includes core deposit intangibles and mortgage servicing assets. (2) Applied statutory tax rate of 28.37% for the three and six months ended June 30, 2021, and the three months ended March 31, 2021. Applied statutory tax rate of 28.35% for the three and six months ended June 30, 2020. Included in Amortization of tax credit and other investments on the Consolidated Statement of Income. (3) Annualized. Three Months Ended Six Months Ended June 30, 2021 March 31, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Net Income $ 224,742 $ 204,994 $ 99,352 $ 429,736 $ 244,176 Add: Amortization of core deposit intangibles 710 732 931 1,442 1,884 Amortization of mortgage servicing assets 420 414 458 834 1,042 Tax effect of amortization adjustments (2) (321) (325) (394) (646) (830) Tangible net income (e) $ 225,551 $ 205,815 $ 100,347 $ 431,366 $ 246,272 Average stockholders’ equity $ 5,425,952 $ 5,338,098 $ 4,982,446 $ 5,382,267 $ 5,002,226 Less: Average goodwill (465,697) (465,697) (465,697) (465,697) (465,697) Average other intangible assets (1) (10,827) (11,594) (14,247) (11,209) (14,918) Average tangible equity (f) $ 4,949,428 $ 4,860,807 $ 4,502,502 $ 4,905,361 $ 4,521,611 Return on average tangible equity (3) (e)/(f) 18.28 % 17.17 % 8.96 % 17.73 % 10.95 %

25 Appendix: GAAP to Non-GAAP Reconciliation EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) In April 2020, the Company started accepting applications under the PPP administered by the Small Business Administration (“SBA”) under the Coronavirus Aid, Relief, and Economic Security Act and began to originate loans to qualified small businesses. In January 2021, the Company began processing applications under the second round of the SBA’s PPP in response to the Consolidated Appropriations Act, 2021 signed by the President on December 27, 2020. The PPP ended on May 31, 2021. These loans are included in the Company’s C&I portfolio, have an interest rate of one percent and are 100% guaranteed by the SBA. Loan processing fees paid to the Company from the SBA are accounted for as loan origination fees, where net deferred fees are recognized on a straight line basis over the estimated life of the loan as a yield adjustment on the loans. If a loan is paid off or forgiven by the SBA prior to its projected estimated life, the remaining unamortized deferred fees will be recognized as interest income in that period. The Company drew down $1.44 billion from the PPPLF during the second quarter of 2020. The remaining balance of $1.43 billion as of September 2020 was repaid in full during the fourth quarter of 2020. Adjusted loan yield and adjusted net interest margin for the three months ended June 30, 2021, March 31, 2021 and June 30, 2020, and six months ended June 30, 2021 and 2020 exclude the impact of PPP loans. Net interest margin for the three and six months ended June 30, 2020 has also been adjusted for advances from the PPPLF. Management believes that presenting the adjusted average loan yield and adjusted net interest margin provide comparability to prior periods and these non-GAAP financial measures provide supplemental information regarding the Company’s performance. (1) Annualized. Three Months Ended Six Months Ended Yield on Average Loans June 30, 2021 March 31, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Interest income on loans (a) $ 352,453 $ 342,008 $ 367,393 $ 694,461 $ 779,262 Less: Interest income on PPP loans (15,377) (15,017) (21,289) (30,394) (21,289) Adjusted interest income on loans (b) $ 337,076 $ 326,991 $ 346,104 $ 664,067 $ 757,973 Average loans (c) $ 39,622,270 $ 38,729,307 $ 37,141,773 $ 39,178,255 $ 36,147,871 Less: Average PPP loans (1,870,385) (1,931,071) (1,465,013) (1,900,560) (732,506) Adjusted average loans (d) $ 37,751,885 $ 36,798,236 $ 35,676,760 $ 37,277,695 $ 35,415,365 Average loan yield (1) (a)/(c) 3.57% 3.58% 3.98% 3.57% 4.34% Adjusted average loan yield (1) (b)/(d) 3.58% 3.60% 3.90% 3.59% 4.30% Net Interest Margin Net interest income (e) $ 376,473 $ 353,695 $ 343,775 $ 730,168 $ 706,482 Less: Interest income on PPP loans (15,377) (15,017) (21,289) (30,394) (21,289) Add: Interest expense on advances from the PPPLF — — 463 — 463 Adjusted net interest income (f) $ 361,096 $ 338,678 $ 322,949 $ 699,774 $ 685,656 Average interest-earning assets (g) $ 54,901,209 $ 52,852,045 $ 45,413,242 $ 53,882,288 $ 43,887,886 Less: Average PPP loans (1,870,385) (1,931,071) (1,465,013) (1,900,560) (732,506) Adjusted average interest-earning assets (h) $ 53,030,824 $ 50,920,974 $ 43,948,229 $ 51,981,728 $ 43,155,380 Net interest margin (1) (e)/(g) 2.75% 2.71% 3.04% 2.73% 3.24% Adjusted net interest margin (1) (f)/(h) 2.73% 2.70% 2.96% 2.71% 3.20% (1) Annualized.

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