EWBC 8-K/A
East West Bancorp Inc (EWBC)
8-K/A
2025-10-22
For: 2025-10-21
View Original
Added on
April 12, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
Amendment No. 1
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
(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 | ||||||||||||
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. ☐
Explanatory Note
On October 21, 2025, East West Bancorp, Inc. (the “Company”) furnished a Current Report on Form 8-K with respect to the announcement of its financial results for the quarter ended September 30, 2025 (the “Original Filing”). Following the Original Filing, the Company discovered Item 2.01 was inadvertently tagged in the submission rather than Item 2.02. This amendment ensures the correct item tag is reflected in the EDGAR system. No changes have been made to the disclosures previously provided.
Item 2.02. Results of Operations and Financial Condition
On October 21, 2025, East West Bancorp, Inc. (the “Company”) announced its financial results for the quarter ended September 30, 2025. 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 of such 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 October 21, 2025, the Company will hold a conference call to discuss its financial results for the quarter ended September 30, 2025 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 of such 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
| Press Release, dated October 21, 2025. | |||||
| Presentation Materials, dated October 21, 2025. | |||||
| 104 | Cover Page Interactive Data (formatted in Inline XBRL). | ||||
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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: October 22, 2025 | By: | /s/ Christopher J. Del Moral-Niles | |||||||||
| Christopher J. Del Moral-Niles | |||||||||||
| Executive Vice President and Chief Financial Officer | |||||||||||
3
 | East West Bancorp, Inc. | ||||
| 135 N. Los Robles Ave., 7th Fl. | |||||
| Pasadena, CA 91101 | |||||
| Tel. 626.768.6000 | |||||
NEWS RELEASE | |||||||||||
EAST WEST BANCORP REPORTS RECORD QUARTERLY NET INCOME OF $368 MILLION AND DILUTED EARNINGS PER SHARE OF $2.65; RECORD FEES, LOANS, AND DEPOSITS
Pasadena, California – October 21, 2025 – East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, reported third quarter 2025 net income of $368 million, or $2.65 per diluted share. Return on average common equity was 17.4%, return on average tangible common equity1 was 18.5%, return on average assets was 1.84%, while book value per share and tangible book value per share1 both grew 5% quarter-over-quarter.
“I am proud to report East West’s record-breaking financial results for the third quarter,” said Dominic Ng, Chairman and Chief Executive Officer. “We earned record levels of revenue, net income, and earnings per share. Record net interest income was fueled by deposit-led growth, while higher fee income was driven by notable strength in wealth management, lending, and deposit account fees,” said Ng.
“Asset quality remained resilient. Nevertheless, given the uncertainty in the outlook for 2026, we further bolstered our allowance for loan losses,” continued Ng. “Our significant capital levels, ample liquidity, bolstered reserves, and strong earnings profile enable East West to operate from a position of strength, with the ability to capitalize on opportunities across market environments,” Ng concluded.
FINANCIAL HIGHLIGHTS
Three Months Ended | Quarter-over-Quarter Change | ||||||||||||||||||||||||||||
| ($ in millions, except per share data) | September 30, 2025 | June 30, 2025 | $ | % | |||||||||||||||||||||||||
| Total Revenue | $778 | $703 | $75 | 11 | % | ||||||||||||||||||||||||
| Net Income | 368 | 310 | 58 | 19 | |||||||||||||||||||||||||
Pre-tax, Pre-provision Income2 | 503 | 449 | 54 | 12 | |||||||||||||||||||||||||
| Diluted Earnings per Share | $2.65 | $2.24 | $0.41 | 19 | |||||||||||||||||||||||||
| Book Value per Share | $62.39 | $59.51 | $2.88 | 5 | |||||||||||||||||||||||||
Tangible Book Value per Share1 | $58.97 | $56.10 | $2.87 | 5 | % | ||||||||||||||||||||||||
| Return on Average Assets | 1.84% | 1.62% | — | 22 bps | |||||||||||||||||||||||||
| Return on Average Common Equity | 17.44% | 15.42% | — | 202 bps | |||||||||||||||||||||||||
Return on Average Tangible Common Equity1 | 18.48% | 16.39% | — | 209 bps | |||||||||||||||||||||||||
| Total Stockholders’ Equity to Assets Ratio | 10.77% | 10.49% | — | 28 bps | |||||||||||||||||||||||||
Tangible Common Equity Ratio1 | 10.24% | 9.95% | — | 29 bps | |||||||||||||||||||||||||
| Total Assets | $79,670 | $78,158 | $1,512 | 2 | % | ||||||||||||||||||||||||
About East West
East West provides financial services that help customers reach further and connect to new opportunities. East West Bancorp, Inc. is a public company (Nasdaq: “EWBC”) with total assets of $79.7 billion as of September 30, 2025. The Company’s wholly-owned subsidiary, East West Bank, is the largest independent bank headquartered in Southern California, and operates over 110 locations in the United States and Asia. The Bank’s markets in the United States include California, Georgia, Illinois, Massachusetts, Nevada, New York, Texas, and Washington. For more information on East West, visit www.eastwestbank.com.
1 Return on average tangible common equity, tangible book value per share, and tangible common equity ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 16. | |||||||||||
2 Pre-tax, pre-provision income is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP financial measures in Table 15. | |||||||||||
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BALANCE SHEET
•Assets – Total assets were $79.7 billion as of September 30, 2025, an increase of $1.5 billion, or 2%, from $78.2 billion as of June 30, 2025. Year-over-year, total assets grew $5.2 billion, or 7%, from $74.5 billion as of September 30, 2024.
Third quarter 2025 average interest-earning assets of $76.2 billion were up $2.3 billion, or 3%, from $73.9 billion in the second quarter, primarily reflecting a $1.2 billion increase in average interest-bearing cash and deposits with banks, a $0.9 billion increase in average total loans outstanding, and a $0.2 billion increase in average available-for-sale (“AFS”) debt securities.
•Loans – Total loans reached a record $55.8 billion as of September 30, 2025, an increase of $0.8 billion from $55.0 billion as of June 30, 2025. Year-over-year, total loans were up $2.5 billion, or 5%, from $53.3 billion as of September 30, 2024.
Third quarter 2025 average total loans grew by $0.9 billion, or 2%, to $55.2 billion, from $54.3 billion in the second quarter.
•Deposits – Total deposits reached a record $66.6 billion as of September 30, 2025, an increase of $1.6 billion from $65.0 billion as of June 30, 2025, primarily reflecting growth in time, noninterest-bearing demand, money market, and savings deposits. Noninterest-bearing deposits made up 24% of total deposits as of September 30, 2025. Year-over-year, total deposits increased $4.9 billion, or 8%, from $61.7 billion as of September 30, 2024.
Third quarter 2025 total average deposits of $66.2 billion increased $2.5 billion from the second quarter of 2025, primarily reflecting growth in average money market, time, and noninterest-bearing demand deposits.
•Capital – As of September 30, 2025, stockholders’ equity was $8.6 billion, up 5% quarter-over-quarter. The total stockholders’ equity to assets ratio was 10.77% as of September 30, 2025, compared with 10.49% as of June 30, 2025.
Book value per share was $62.39 as of September 30, 2025, up $2.88, or 5% quarter-over-quarter. As of September 30, 2025, tangible book value per share3 was $58.97, up $2.87, or 5% quarter-over-quarter.
East West’s regulatory capital ratios are well in excess of requirements for well-capitalized institutions, and well above regional bank averages.
CAPITAL STRENGTH
The following table presents capital metrics as of September 30, 2025, June 30, 2025, and September 30, 2024.
| EWBC Capital | |||||||||||||||||||||||||||||
| ($ in millions) | September 30, 2025 (a) | June 30, 2025 | September 30, 2024 (b) | ||||||||||||||||||||||||||
Risk-Weighted Assets (“RWA”) (c) | $57,052 | $56,280 | $54,291 | ||||||||||||||||||||||||||
| Risk-based capital ratios: | |||||||||||||||||||||||||||||
| Total capital ratio | 16.15% | 15.82% | 15.39% | ||||||||||||||||||||||||||
| CET1 capital ratio | 14.83% | 14.51% | 14.08% | ||||||||||||||||||||||||||
| Tier 1 capital ratio | 14.83% | 14.51% | 14.08% | ||||||||||||||||||||||||||
| Leverage ratio | 10.66% | 10.60% | 10.40% | ||||||||||||||||||||||||||
| Total stockholders’ equity to assets ratio | 10.77% | 10.49% | 10.29% | ||||||||||||||||||||||||||
Tangible common equity ratio (d) | 10.24% | 9.95% | 9.72% | ||||||||||||||||||||||||||
(a)The Company’s September 30, 2025 regulatory capital ratios and RWA are preliminary.
(b)The Company applied the 2020 Current Expected Credit Losses (“CECL”) transition provision in the September 30, 2024 regulatory capital ratio calculations. The CECL transition provision permitted certain banking organizations to exclude from regulatory capital the initial adoption impact of CECL, plus 25% of the cumulative changes in the allowance for credit losses under CECL for each period until December 31, 2021, followed by a three-year phase-out period in which the aggregate benefit was reduced by 25% in 2022, 50% in 2023 and 75% in 2024. The CECL transition was no longer in effect as of January 1, 2025.
(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.
(d)Tangible common equity ratio is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP measures in Table 16.
3 Tangible book value per share is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP measures in Table 16. | ||||||||||||||
2
OPERATING RESULTS
Third Quarter Earnings – Third quarter 2025 revenue was a record $778 million, up $75 million, or 11% quarter-over-quarter, driven by record quarterly net interest income and noninterest income. Revenue in the third quarter included $32 million of discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans. Noninterest expense was $277 million in the third quarter, up $21 million quarter-over-quarter, or 8%, which included $27 million of additional compensation expense from a change in equity award recognition for retirement eligible employees.
Third quarter 2025 net income was a record $368 million or $2.65 per diluted share, both up 19% from the second quarter of 2025. Pre-tax, pre-provision income4 totaled a record $503 million in the third quarter, up $54 million, or 12% quarter-over-quarter.
Third Quarter 2025 Compared to Second Quarter 2025
Net Interest Income and Net Interest Margin
Net interest income totaled a record $678 million in the third quarter, an increase of $60 million, or 10%, from $617 million.
•Net interest margin was 3.53%, up 18 basis points from the prior quarter. Excluding the benefit of $32 million in discount accretion and interest recoveries, net interest margin was 3.36%.
•The average loan yield was 6.61%, up 21 basis points from the prior quarter. The average interest-earning asset yield was 5.88%, up 13 basis points from the prior quarter.
•The average cost of funds was 2.58%, down 5 basis points from the prior quarter. The average cost of interest-bearing deposits was 3.26%, a 5 basis point decrease from the prior quarter.
Noninterest Income
Noninterest income totaled a record $101 million in the third quarter, an increase of $14 million, or 17% from $86 million in the second quarter. Record fee income5 of $92 million increased $11 million, or 14%, from $81 million in the prior quarter, with growth in all fee categories.
•Wealth management fees increased $4 million quarter-over-quarter, reflecting higher customer activity.
•Other income increased $3 million quarter-over-quarter, primarily due to the realization of a bank-owned life insurance-related event.
•Customer derivative income increased $3 million in the third quarter, reflecting higher customer activity.
•Lending and loan servicing fees were up $2 million in the third quarter, reflecting higher customer activity and greater syndication fees.
•Commercial and consumer deposit-related fees grew $2 million quarter-over-quarter, primarily reflecting higher treasury management and service-related fee income.
•Foreign exchange income was $14 million, an increase of $1 million.
Noninterest Expense
Total noninterest expense was $277 million in the third quarter, which included $16 million of amortization for tax credit and Community Reinvestment Act investments. Total operating noninterest expense was $261 million, an increase of $31 million quarter-over-quarter.
•Compensation and employee benefits were $176 million, an increase of $31 million, primarily reflecting $27 million of additional compensation expense from a change in equity award recognition for retirement eligible employees.
•Occupancy and equipment expense was $17 million, an increase of $1 million.
•Other operating expense was $38 million, an increase of $2 million, primarily reflecting an increase in net other real estate owned write-downs.
•The efficiency ratio was 35.6% in the third quarter, compared with 36.4% in the prior quarter.
4 Pre-tax, pre-provision income is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP financial measures in Table 15. | |||||||||||
5 Fee income includes commercial and consumer deposit-related fees, lending and loan servicing fees, foreign exchange income, wealth management fees, and customer derivative income. Refer to Table 3 for additional fee and noninterest income information. | |||||||||||
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TAX RELATED ITEMS
Third quarter 2025 income tax expense was $97 million and the effective tax rate was 20.8%, compared with income tax expense of $92 million and 22.9% in the second quarter of 2025, primarily reflecting greater pre-tax income in the third quarter.
ASSET QUALITY
As of September 30, 2025, the credit quality of our loan portfolio remained resilient.
•The criticized loans ratio decreased 1 basis point quarter-over-quarter to 2.14% of loans held-for-investment (“HFI”) as of September 30, 2025, compared with 2.15% as of June 30, 2025. Criticized loans increased $8 million quarter-over-quarter to $1.2 billion as of September 30, 2025.
•The special mention loans ratio decreased 5 basis points quarter-over-quarter to 0.76% of loans HFI as of September 30, 2025, compared with 0.81% as of June 30, 2025, while the classified loans ratio increased 4 basis points to 1.38%.
•Nonperforming assets increased $29 million to $201 million as of September 30, 2025, from $172 million as of June 30, 2025. The nonperforming assets ratio was 0.25% of total assets as of September 30, 2025, up 3 basis points from the prior quarter.
•Third quarter 2025 net charge-offs were $18 million, or annualized 0.13% of average loans HFI, compared with $15 million, or annualized 0.11% of average loans HFI, for the second quarter of 2025.
•The allowance for loan losses increased to $791 million, or 1.42% of loans HFI, as of September 30, 2025, compared with $760 million, or 1.38% of loans HFI, as of June 30, 2025, driven primarily by changes in the impact of the economic forecast.
•Third quarter 2025 provision for credit losses was $36 million, compared with $45 million in the second quarter of 2025.
DIVIDEND PAYOUT AND CAPITAL ACTIONS
East West’s Board of Directors has declared the fourth quarter 2025 dividend for the Company’s common stock. The common stock cash dividend of $0.60 per share is payable on November 17, 2025 to shareholders of record as of November 3, 2025.
East West repurchased approximately 258 thousand shares of common stock during the third quarter of 2025 for $25 million. $216 million of East West’s share repurchase authorization remains available.
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Conference Call
East West will host a conference call to discuss third quarter 2025 earnings with the public on Tuesday, October 21, 2025, at 2:00 p.m. PT/5:00 p.m. ET. The public and investment community are invited to listen as management discusses third quarter 2025 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, a listen-only live broadcast of the call, and information to access a replay one hour after the call will all be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.
For Investor Inquiries, Contact: | For Media Inquiries, Contact: | |||||||
Adrienne Atkinson | Angie Tang | |||||||
| Director of Investor Relations | SVP - Corporate Communications | |||||||
T: (626) 788-7536 | T: (626) 768-6853 | |||||||
| E: [email protected] | E: [email protected] | |||||||
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. East West Bancorp, Inc. (referred to herein on an unconsolidated basis as “East West” and on a consolidated basis as the “Company,” “we,” “us,” “our” or “EWBC”) may make forward-looking statements in other documents that it files with, or furnishes to, the United States (“U.S.”) Securities and Exchange Commission (“SEC”) and management may make forward-looking statements to analysts, investors, media members and others. Forward-looking statements are those that do not relate to historical facts and that are based on current assumptions, beliefs, estimates, expectations and projections, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Forward-looking statements may relate to various matters, including the Company’s financial condition, results of operations, plans, objectives, future performance, business or industry, and usually can be identified by the use of forward-looking words, such as “anticipates,” “assumes,” “believes,” “can,” “continues,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “likely,” “may,” “might,” “objective,” “plans,” “potential,” “projects,” “remains,” “should,” “target,” “trend,” “will,” “would,” or similar expressions or variations thereof, and the negative thereof, but these terms are not the exclusive means of identifying such statements. You should not place undue reliance on forward-looking statements, as they are subject to known and unknown risks and uncertainties.
Factors that might cause future results to differ materially from historical performance and any forward-looking statements include, but are not limited to: changes in local, regional and global business, economic and political conditions and natural or geopolitical events; the soundness of other financial institutions and the impacts related to or resulting from bank failures and other industry volatility, including potential increased regulatory requirements, FDIC insurance premiums and assessments, and deposit withdrawals; changes in laws or the regulatory environment, including trade, monetary and fiscal policies and laws and current or potential disputes between the U.S. and the People’s Republic of China, Singapore, and other countries; changes in the commercial and consumer real estate markets; changes in consumer or commercial spending, savings and borrowing habits, and patterns and behaviors; the Company’s ability to compete effectively against financial institutions and other entities, including as a result of emerging technologies; the success and timing of the Company’s business strategies; the Company’s ability to retain key officers and employees; changes in market interest rates, competition, regulatory requirements and product mix; changes in the Company’s costs of operation, compliance and expansion; disruption, failure in, or breach of, the Company’s operational or security systems or infrastructure, or those of third party vendors with which the Company does business, including as a result of cyber-attacks, and the disclosure or misuse of confidential information; the adequacy of the Company’s risk management framework; future credit quality and performance, including expectations regarding future credit losses and allowance levels; adverse changes to the Company’s credit ratings; legal proceedings, regulatory investigations and their resolution; the Company’s capital requirements and its ability to generate capital internally or raise capital on favorable terms; the impact on the Company’s liquidity due to changes in the Company’s ability to receive dividends from its subsidiaries; and any strategic acquisitions or divestitures and the introduction of new or expanded products and services or other events that may directly or indirectly result in a negative impact on the financial performance of the Company and its customers.
For a more detailed discussion of some of the factors that might cause such differences, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 28, 2025 under the heading Item 1A. Risk Factors and its subsequent filings with the SEC. You should treat forward-looking statements as speaking only as of the date they are made and based only on information then actually known to the Company. 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.
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| EAST WEST BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||||||||||||||||||||||||||||||||
| ($ and shares in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||||||||
| Table 1 | ||||||||||||||||||||||||||||||||||||||
September 30, 2025 % or Basis Point Change | ||||||||||||||||||||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | September 30, 2024 | Qtr-o-Qtr | Yr-o-Yr | ||||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, and deposits with banks | $ | 4,762,394 | $ | 4,514,476 | $ | 4,976,174 | 5.5 | % | (4.3) | % | ||||||||||||||||||||||||||||
| Securities purchased under resale agreements (“resale agreements”) | 425,000 | 425,000 | 425,000 | — | — | |||||||||||||||||||||||||||||||||
Available-for-sale (“AFS”) debt securities (amortized cost of $13,189,313, $13,035,258 and $10,667,293) | 12,741,152 | 12,488,913 | 10,133,877 | 2.0 | 25.7 | |||||||||||||||||||||||||||||||||
Held-to-maturity (“HTM”) debt securities, at amortized cost (fair value of $2,467,362, $2,437,247 and $2,510,352) | 2,880,682 | 2,892,982 | 2,928,399 | (0.4) | (1.6) | |||||||||||||||||||||||||||||||||
| Total cash, resale agreements and debt securities | 20,809,228 | 20,321,371 | 18,463,450 | 2.4 | 12.7 | |||||||||||||||||||||||||||||||||
| Loans held-for-sale (“HFS”) | 19,596 | 11,873 | — | 65.0 | 100.0 | |||||||||||||||||||||||||||||||||
Loans held-for-investment (“HFI”) (net of allowance for loan losses of $790,520, $760,416 and $696,485) | 54,976,252 | 54,200,768 | 52,556,696 | 1.4 | 4.6 | |||||||||||||||||||||||||||||||||
| Affordable housing partnership, tax credit and Community Reinvestment Act (“CRA”) investments, net | 982,247 | 968,389 | 924,439 | 1.4 | 6.3 | |||||||||||||||||||||||||||||||||
| Goodwill | 465,697 | 465,697 | 465,697 | — | — | |||||||||||||||||||||||||||||||||
| Operating lease right-of-use assets | 77,855 | 80,523 | 82,775 | (3.3) | (5.9) | |||||||||||||||||||||||||||||||||
| Other assets | 2,338,656 | 2,109,446 | 1,990,663 | 10.9 | 17.5 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 79,669,531 | $ | 78,158,067 | $ | 74,483,720 | 1.9 | % | 7.0 | % | ||||||||||||||||||||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||
| Deposits | $ | 66,587,556 | $ | 65,029,493 | $ | 61,700,115 | 2.4 | % | 7.9 | % | ||||||||||||||||||||||||||||
| Short-term borrowings | 9,851 | — | — | 100.0 | 100.0 | |||||||||||||||||||||||||||||||||
| Federal Home Loan Bank (“FHLB”) advances | 3,000,000 | 3,500,000 | 3,500,000 | (14.3) | (14.3) | |||||||||||||||||||||||||||||||||
Securities sold under repurchase agreements (“repurchase agreements”) | 53,489 | — | — | 100.0 | 100.0 | |||||||||||||||||||||||||||||||||
| Long-term debt and finance lease liabilities | 35,707 | 35,789 | 36,055 | (0.2) | (1.0) | |||||||||||||||||||||||||||||||||
| Operating lease liabilities | 83,998 | 86,987 | 90,369 | (3.4) | (7.0) | |||||||||||||||||||||||||||||||||
| Accrued expenses and other liabilities | 1,316,130 | 1,304,031 | 1,492,642 | 0.9 | (11.8) | |||||||||||||||||||||||||||||||||
| Total liabilities | 71,086,731 | 69,956,300 | 66,819,181 | 1.6 | 6.4 | |||||||||||||||||||||||||||||||||
| Stockholders’ equity | 8,582,800 | 8,201,767 | 7,664,539 | 4.6 | 12.0 | |||||||||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 79,669,531 | $ | 78,158,067 | $ | 74,483,720 | 1.9 | % | 7.0 | % | ||||||||||||||||||||||||||||
Total cash, resale agreements and debt securities/total assets | 26.12 | % | 26.00 | % | 24.79 | % | 12 | bps | 133 | bps | ||||||||||||||||||||||||||||
| Total stockholders’ equity to assets ratio | 10.77 | % | 10.49 | % | 10.29 | % | 28 | 48 | ||||||||||||||||||||||||||||||
Tangible common equity (“TCE”) ratio (1) | 10.24 | % | 9.95 | % | 9.72 | % | 29 | bps | 52 | bps | ||||||||||||||||||||||||||||
| Book value per share | $ | 62.39 | $ | 59.51 | $ | 55.30 | 4.8 | % | 12.8 | % | ||||||||||||||||||||||||||||
Tangible book value (1) per share | $ | 58.97 | $ | 56.10 | $ | 51.90 | 5.1 | 13.6 | ||||||||||||||||||||||||||||||
| Number of common shares at period-end | 137,568 | 137,816 | 138,609 | (0.2) | % | (0.8) | % | |||||||||||||||||||||||||||||||
(1)The TCE ratio and the tangible book value are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 16.
6
| EAST WEST BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||
| TOTAL LOANS AND DEPOSITS DETAIL | |||||||||||||||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||
| Table 2 | |||||||||||||||||||||||||||||||||||
September 30, 2025 % Change | |||||||||||||||||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | September 30, 2024 | Qtr-o-Qtr | Yr-o-Yr | |||||||||||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||||||||||
| Commercial: | |||||||||||||||||||||||||||||||||||
| Commercial and industrial (“C&I”) | $ | 18,001,529 | $ | 17,822,881 | $ | 17,068,002 | 1.0 | % | 5.5 | % | |||||||||||||||||||||||||
| Commercial real estate (“CRE”): | |||||||||||||||||||||||||||||||||||
| CRE | 15,231,167 | 14,978,775 | 14,568,209 | 1.7 | 4.6 | ||||||||||||||||||||||||||||||
| Multifamily residential | 5,037,284 | 4,978,915 | 5,141,481 | 1.2 | (2.0) | ||||||||||||||||||||||||||||||
| Construction and land | 776,587 | 709,713 | 693,775 | 9.4 | 11.9 | ||||||||||||||||||||||||||||||
| Total CRE | 21,045,038 | 20,667,403 | 20,403,465 | 1.8 | 3.1 | ||||||||||||||||||||||||||||||
| Consumer: | |||||||||||||||||||||||||||||||||||
| Residential mortgage: | |||||||||||||||||||||||||||||||||||
| Single-family residential | 14,820,911 | 14,569,997 | 13,963,097 | 1.7 | 6.1 | ||||||||||||||||||||||||||||||
| Home equity lines of credit (“HELOCs”) | 1,852,408 | 1,850,965 | 1,760,716 | 0.1 | 5.2 | ||||||||||||||||||||||||||||||
| Total residential mortgage | 16,673,319 | 16,420,962 | 15,723,813 | 1.5 | 6.0 | ||||||||||||||||||||||||||||||
| Other consumer | 46,886 | 49,938 | 57,901 | (6.1) | (19.0) | ||||||||||||||||||||||||||||||
Total loans HFI (1) | 55,766,772 | 54,961,184 | 53,253,181 | 1.5 | 4.7 | ||||||||||||||||||||||||||||||
| Loans HFS | 19,596 | 11,873 | — | 65.0 | 100.0 | ||||||||||||||||||||||||||||||
Total loans (1) | 55,786,368 | 54,973,057 | 53,253,181 | 1.5 | 4.8 | ||||||||||||||||||||||||||||||
Allowance for loan and lease losses (“ALLL”) | (790,520) | (760,416) | (696,485) | 4.0 | 13.5 | ||||||||||||||||||||||||||||||
Net loans (1) | $ | 54,995,848 | $ | 54,212,641 | $ | 52,556,696 | 1.4 | % | 4.6 | % | |||||||||||||||||||||||||
Deposits by product: | |||||||||||||||||||||||||||||||||||
| Noninterest-bearing demand | $ | 16,141,954 | $ | 15,470,239 | $ | 14,690,864 | 4.3 | % | 9.9 | % | |||||||||||||||||||||||||
| Interest-bearing checking | 7,854,206 | 8,143,893 | 8,052,720 | (3.6) | (2.5) | ||||||||||||||||||||||||||||||
| Money market | 15,609,931 | 15,420,318 | 14,021,042 | 1.2 | 11.3 | ||||||||||||||||||||||||||||||
| Savings | 1,689,978 | 1,683,703 | 1,718,378 | 0.4 | (1.7) | ||||||||||||||||||||||||||||||
| Time deposits | 25,291,487 | 24,311,340 | 23,217,111 | 4.0 | 8.9 | ||||||||||||||||||||||||||||||
| Total deposits | $ | 66,587,556 | $ | 65,029,493 | $ | 61,700,115 | 2.4 | % | 7.9 | % | |||||||||||||||||||||||||
Deposits by segment/region: | |||||||||||||||||||||||||||||||||||
Consumer and Business Banking - U.S. (2) | $ | 34,378,478 | $ | 33,407,064 | $ | 32,104,904 | 2.9 | % | 7.1 | % | |||||||||||||||||||||||||
Commercial Banking - U.S. (2) | 24,126,028 | 23,595,005 | 23,212,616 | 2.3 | 3.9 | ||||||||||||||||||||||||||||||
International Branches (3) | 3,835,351 | 3,579,005 | 3,307,793 | 7.2 | 15.9 | ||||||||||||||||||||||||||||||
Treasury and Other - U.S. (4) | 4,247,699 | 4,448,419 | 3,074,802 | (4.5) | 38.1 | ||||||||||||||||||||||||||||||
| Total deposits | $ | 66,587,556 | $ | 65,029,493 | $ | 61,700,115 | 2.4 | % | 7.9 | % | |||||||||||||||||||||||||
(1)Includes $24 million, $74 million and $52 million of net deferred loan fees and net unamortized premiums as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
(2)Excludes deposits presented under International Branches.
(3)Deposits of our Hong Kong branch and China subsidiary bank branches are a subset of Commercial Banking segment deposits.
(4)Treasury and Other segment deposits reflect wholesale, public funds, and brokered deposits, primarily managed by the Company’s Treasury department.
7
| EAST WEST BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF INCOME | |||||||||||||||||||||||||||||||||||
| ($ and shares in thousands, except per share data) | |||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||
| Table 3 | |||||||||||||||||||||||||||||||||||
| Three Months Ended | September 30, 2025 % Change | ||||||||||||||||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | September 30, 2024 | Qtr-o-Qtr | Yr-o-Yr | |||||||||||||||||||||||||||||||
Interest and dividend income (1) | $ | 1,129,732 | $ | 1,058,999 | $ | 1,075,899 | 6.7% | 5.0% | |||||||||||||||||||||||||||
| Interest expense | 452,202 | 441,925 | 503,177 | 2.3 | (10.1) | ||||||||||||||||||||||||||||||
| Net interest income before provision for credit losses | 677,530 | 617,074 | 572,722 | 9.8 | 18.3 | ||||||||||||||||||||||||||||||
| Provision for credit losses | 36,000 | 45,000 | 42,000 | (20.0) | (14.3) | ||||||||||||||||||||||||||||||
| Net interest income after provision for credit losses | 641,530 | 572,074 | 530,722 | 12.1% | 20.9% | ||||||||||||||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||||||||||
Commercial and consumer deposit-related fees | 28,409 | 26,865 | 26,815 | 5.7 | 5.9 | ||||||||||||||||||||||||||||||
| Lending and loan servicing fees | 27,605 | 25,586 | 26,453 | 7.9 | 4.4 | ||||||||||||||||||||||||||||||
| Foreign exchange income | 14,491 | 13,715 | 13,569 | 5.7 | 6.8 | ||||||||||||||||||||||||||||||
| Wealth management fees | 14,562 | 10,725 | 10,683 | 35.8 | 36.3 | ||||||||||||||||||||||||||||||
Customer derivative income | 6,442 | 3,645 | 3,774 | 76.7 | 70.7 | ||||||||||||||||||||||||||||||
| Total fee income | 91,509 | 80,536 | 81,294 | 13.6 | 12.6 | ||||||||||||||||||||||||||||||
Derivative mark-to-market and credit valuation adjustments | (318) | (1,444) | (4,480) | 78.0 | 92.9 | ||||||||||||||||||||||||||||||
| Net gains on AFS debt securities | 57 | 746 | 145 | (92.4) | (60.7) | ||||||||||||||||||||||||||||||
Other investment income | 705 | 678 | 2,800 | 4.0 | (74.8) | ||||||||||||||||||||||||||||||
| Other income | 8,564 | 5,662 | 4,636 | 51.3 | 84.7 | ||||||||||||||||||||||||||||||
| Total noninterest income | 100,517 | 86,178 | 84,395 | 16.6% | 19.1% | ||||||||||||||||||||||||||||||
| Noninterest expense: | |||||||||||||||||||||||||||||||||||
Compensation and employee benefits (2) | 175,585 | 144,841 | 135,464 | 21.2% | 29.6% | ||||||||||||||||||||||||||||||
| Occupancy and equipment expense | 16,970 | 16,289 | 17,001 | 4.2 | (0.2) | ||||||||||||||||||||||||||||||
| Deposit account expense | 8,851 | 9,348 | 12,229 | (5.3) | (27.6) | ||||||||||||||||||||||||||||||
| Computer and software related expenses | 12,949 | 13,446 | 11,436 | (3.7) | 13.2 | ||||||||||||||||||||||||||||||
Deposit insurance premiums and regulatory assessments (3) | 8,644 | 9,133 | 9,178 | (5.4) | (5.8) | ||||||||||||||||||||||||||||||
| Other operating expense | 38,231 | 36,727 | 34,892 | 4.1 | 9.6 | ||||||||||||||||||||||||||||||
Total operating noninterest expense | 261,230 | 229,784 | 220,200 | 13.7 | 18.6 | ||||||||||||||||||||||||||||||
Amortization of tax credit and CRA investments (4) | 15,693 | 26,236 | 5,600 | (40.2) | 180.2 | ||||||||||||||||||||||||||||||
| Total noninterest expense | 276,923 | 256,020 | 225,800 | 8.2 | 22.6 | ||||||||||||||||||||||||||||||
| Income before income taxes | 465,124 | 402,232 | 389,317 | 15.6 | 19.5 | ||||||||||||||||||||||||||||||
| Income tax expense | 96,730 | 91,979 | 90,151 | 5.2 | 7.3 | ||||||||||||||||||||||||||||||
| Net income | $ | 368,394 | $ | 310,253 | $ | 299,166 | 18.7% | 23.1% | |||||||||||||||||||||||||||
| Earnings per share (“EPS”) | |||||||||||||||||||||||||||||||||||
| - Basic | $ | 2.68 | $ | 2.25 | $ | 2.16 | 18.9% | 24.0% | |||||||||||||||||||||||||||
| - Diluted | $ | 2.65 | $ | 2.24 | $ | 2.14 | 18.6 | 23.8 | |||||||||||||||||||||||||||
| Weighted-average number of shares outstanding | |||||||||||||||||||||||||||||||||||
| - Basic | 137,676 | 137,818 | 138,606 | (0.1)% | (0.7)% | ||||||||||||||||||||||||||||||
| - Diluted | 138,942 | 138,789 | 139,648 | 0.1 | (0.5) | ||||||||||||||||||||||||||||||
(1)Includes $32 million of discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans during the three months ended September 30, 2025.
(2)Includes $27 million of additional compensation expense from the change in equity award expense recognition for retirement eligible employees for the three months ended September 30, 2025.
(3)Includes $2 million and $833 thousand of FDIC special assessment reversals for the three months ended September 30, 2025 and June 30, 2025, respectively.
(4)Includes $11 million in DC Solar recoveries for the three months ended September 30, 2024.
8
| EAST WEST BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF INCOME | |||||||||||||||||||||||||||||
| ($ and shares in thousands, except per share data) | |||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||
| Table 4 | |||||||||||||||||||||||||||||
| Nine Months Ended | September 30, 2025 % Change | ||||||||||||||||||||||||||||
| September 30, 2025 | September 30, 2024 | Yr-o-Yr | |||||||||||||||||||||||||||
Interest and dividend income (1) | $ | 3,220,533 | $ | 3,133,930 | 2.8% | ||||||||||||||||||||||||
| Interest expense | 1,325,728 | 1,442,840 | (8.1) | ||||||||||||||||||||||||||
| Net interest income before provision for credit losses | 1,894,805 | 1,691,090 | 12.0 | ||||||||||||||||||||||||||
| Provision for credit losses | 130,000 | 104,000 | 25.0 | ||||||||||||||||||||||||||
| Net interest income after provision for credit losses | 1,764,805 | 1,587,090 | 11.2% | ||||||||||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||||
| Commercial and consumer deposit-related fees | 82,349 | 77,412 | 6.4 | ||||||||||||||||||||||||||
| Lending and loan servicing fees | 79,421 | 73,718 | 7.7 | ||||||||||||||||||||||||||
| Foreign exchange income | 44,043 | 37,962 | 16.0 | ||||||||||||||||||||||||||
| Wealth management fees | 38,966 | 28,798 | 35.3 | ||||||||||||||||||||||||||
| Customer derivative income | 15,626 | 11,141 | 40.3 | ||||||||||||||||||||||||||
| Total fee income | 260,405 | 229,031 | 13.7 | ||||||||||||||||||||||||||
Derivative mark-to-market and credit valuation adjustments | (3,232) | (2,333) | (38.5) | ||||||||||||||||||||||||||
Net gains on AFS debt securities | 934 | 1,979 | (52.8) | ||||||||||||||||||||||||||
| Other investment income | 3,645 | 6,201 | (41.2) | ||||||||||||||||||||||||||
| Other income | 17,045 | 12,175 | 40.0 | ||||||||||||||||||||||||||
| Total noninterest income | 278,797 | 247,053 | 12.8% | ||||||||||||||||||||||||||
| Noninterest expense: | |||||||||||||||||||||||||||||
Compensation and employee benefits (2) | 466,861 | 410,864 | 13.6% | ||||||||||||||||||||||||||
| Occupancy and equipment expense | 48,948 | 48,016 | 1.9 | ||||||||||||||||||||||||||
| Deposit account expense | 27,241 | 36,467 | (25.3) | ||||||||||||||||||||||||||
| Computer and software related expenses | 39,709 | 34,172 | 16.2 | ||||||||||||||||||||||||||
Deposit insurance premiums and regulatory assessments (3) | 28,162 | 39,535 | (28.8) | ||||||||||||||||||||||||||
| Other operating expense | 116,499 | 104,193 | 11.8 | ||||||||||||||||||||||||||
| Total operating noninterest expense | 727,420 | 673,247 | 8.0 | ||||||||||||||||||||||||||
Amortization of tax credit and CRA investments (4) | 57,671 | 34,859 | 65.4 | ||||||||||||||||||||||||||
| Total noninterest expense | 785,091 | 708,106 | 10.9 | ||||||||||||||||||||||||||
| Income before income taxes | 1,258,511 | 1,126,037 | 11.8 | ||||||||||||||||||||||||||
| Income tax expense | 289,594 | 253,566 | 14.2 | ||||||||||||||||||||||||||
| Net income | $ | 968,917 | $ | 872,471 | 11.1% | ||||||||||||||||||||||||
| EPS | |||||||||||||||||||||||||||||
| - Basic | $ | 7.03 | $ | 6.28 | 11.9% | ||||||||||||||||||||||||
| - Diluted | $ | 6.97 | $ | 6.23 | 11.7 | ||||||||||||||||||||||||
| Weighted-average number of shares outstanding | |||||||||||||||||||||||||||||
| - Basic | 137,897 | 138,997 | (0.8)% | ||||||||||||||||||||||||||
| - Diluted | 139,090 | 139,939 | (0.6) | ||||||||||||||||||||||||||
(1)Includes $32 million of discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans during the nine months ended September 30, 2025.
(2)Includes $27 million of additional compensation expense from the change in equity award expense recognition for retirement eligible employees for the three months ended September 30, 2025.
(3)Includes $2 million of FDIC special assessment reversals and $12 million of FDIC special assessment charges for the nine months ended September 30, 2025 and September 30, 2024, respectively.
(4)Includes $14 million of DC Solar recoveries for the nine months ended September 30, 2024.
9
| EAST WEST BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| SELECTED AVERAGE BALANCES | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Table 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | September 30, 2025 % Change | Nine Months Ended | September 30, 2025 % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | September 30, 2024 | Qtr-o-Qtr | Yr-o-Yr | September 30, 2025 | September 30, 2024 | Yr-o-Yr | ||||||||||||||||||||||||||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| C&I | $ | 17,799,708 | $ | 17,363,095 | $ | 16,492,589 | 2.5% | 7.9% | $ | 17,346,156 | $ | 16,318,594 | 6.3% | ||||||||||||||||||||||||||||||||||||||||
| CRE: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| CRE | 15,110,134 | 14,864,277 | 14,483,163 | 1.7 | 4.3 | 14,903,483 | 14,589,772 | 2.2 | |||||||||||||||||||||||||||||||||||||||||||||
| Multifamily residential | 4,963,703 | 4,981,155 | 5,127,659 | (0.4) | (3.2) | 4,970,095 | 5,066,906 | (1.9) | |||||||||||||||||||||||||||||||||||||||||||||
| Construction and land | 752,402 | 689,713 | 661,840 | 9.1 | 13.7 | 706,215 | 662,173 | 6.7 | |||||||||||||||||||||||||||||||||||||||||||||
| Total CRE | 20,826,239 | 20,535,145 | 20,272,662 | 1.4 | 2.7 | 20,579,793 | 20,318,851 | 1.3 | |||||||||||||||||||||||||||||||||||||||||||||
| Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Single-family residential | 14,688,172 | 14,477,173 | 13,846,946 | 1.5 | 6.1 | 14,469,661 | 13,654,170 | 6.0 | |||||||||||||||||||||||||||||||||||||||||||||
| HELOCs | 1,848,524 | 1,858,881 | 1,754,361 | (0.6) | 5.4 | 1,839,613 | 1,743,413 | 5.5 | |||||||||||||||||||||||||||||||||||||||||||||
| Total residential mortgage | 16,536,696 | 16,336,054 | 15,601,307 | 1.2 | 6.0 | 16,309,274 | 15,397,583 | 5.9 | |||||||||||||||||||||||||||||||||||||||||||||
| Other consumer | 45,935 | 47,138 | 53,958 | (2.6) | (14.9) | 47,537 | 54,233 | (12.3) | |||||||||||||||||||||||||||||||||||||||||||||
Total loans (1) | $ | 55,208,578 | $ | 54,281,432 | $ | 52,420,516 | 1.7% | 5.3% | $ | 54,282,760 | $ | 52,089,261 | 4.2% | ||||||||||||||||||||||||||||||||||||||||
| Interest-earning assets | $ | 76,206,138 | $ | 73,903,125 | $ | 70,263,495 | 3.1% | 8.5% | $ | 74,288,924 | $ | 68,902,563 | 7.8% | ||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 79,310,698 | $ | 76,862,028 | $ | 73,268,158 | 3.2% | 8.2% | $ | 77,279,375 | $ | 72,049,714 | 7.3% | ||||||||||||||||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing demand | $ | 15,767,292 | $ | 15,114,806 | $ | 14,606,511 | 4.3% | 7.9% | $ | 15,331,138 | $ | 14,741,590 | 4.0% | ||||||||||||||||||||||||||||||||||||||||
| Interest-bearing checking | 7,501,315 | 7,597,103 | 7,762,719 | (1.3) | (3.4) | 7,621,067 | 7,642,423 | (0.3) | |||||||||||||||||||||||||||||||||||||||||||||
| Money market | 16,565,937 | 15,325,928 | 14,201,258 | 8.1 | 16.7 | 15,581,506 | 13,855,167 | 12.5 | |||||||||||||||||||||||||||||||||||||||||||||
| Savings | 1,705,332 | 1,745,220 | 1,744,644 | (2.3) | (2.3) | 1,734,325 | 1,783,011 | (2.7) | |||||||||||||||||||||||||||||||||||||||||||||
| Time deposits | 24,649,891 | 23,894,775 | 22,270,124 | 3.2 | 10.7 | 23,913,370 | 20,886,769 | 14.5 | |||||||||||||||||||||||||||||||||||||||||||||
| Total deposits | $ | 66,189,767 | $ | 63,677,832 | $ | 60,585,256 | 3.9% | 9.3% | $ | 64,181,406 | $ | 58,908,960 | 9.0% | ||||||||||||||||||||||||||||||||||||||||
(1)Includes loans HFS.
10
| EAST WEST BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||
| QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES | |||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||||||||
| Table 6 | |||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | ||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest | Average Yield/Rate (1) | Average Balance | Interest | Average Yield/Rate (1) | ||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||||||||||||
| Interest-bearing cash and deposits with banks | $ | 4,873,674 | $ | 47,170 | 3.84 | % | $ | 3,699,036 | $ | 34,935 | 3.79 | % | |||||||||||||||||||||||||||||
| Resale agreements | 425,000 | 1,616 | 1.51 | % | 425,000 | 1,624 | 1.53 | % | |||||||||||||||||||||||||||||||||
| Debt securities: | |||||||||||||||||||||||||||||||||||||||||
| AFS | 12,650,323 | 146,336 | 4.59 | % | 12,435,531 | 141,496 | 4.56 | % | |||||||||||||||||||||||||||||||||
| HTM | 2,884,267 | 12,226 | 1.68 | % | 2,896,410 | 12,292 | 1.70 | % | |||||||||||||||||||||||||||||||||
| Total debt securities | 15,534,590 | 158,562 | 4.05 | % | 15,331,941 | 153,788 | 4.02 | % | |||||||||||||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||||||||||||||||
| C&I | 17,799,708 | 345,947 | 7.71 | % | (2) | 17,363,095 | 303,791 | 7.02 | % | ||||||||||||||||||||||||||||||||
| CRE | 20,826,239 | 327,168 | 6.23 | % | 20,535,145 | 319,666 | 6.24 | % | |||||||||||||||||||||||||||||||||
| Residential mortgage | 16,536,696 | 245,728 | 5.90 | % | 16,336,054 | 241,666 | 5.93 | % | |||||||||||||||||||||||||||||||||
| Other consumer | 45,935 | 675 | 5.83 | % | 47,138 | 572 | 4.87 | % | |||||||||||||||||||||||||||||||||
Total loans (3) | 55,208,578 | 919,518 | 6.61 | % | (2) | 54,281,432 | 865,695 | 6.40 | % | ||||||||||||||||||||||||||||||||
| FHLB and FRB stock | 164,296 | 2,866 | 6.92 | % | 165,716 | 2,957 | 7.16 | % | |||||||||||||||||||||||||||||||||
| Total interest-earning assets | $ | 76,206,138 | $ | 1,129,732 | 5.88 | % | $ | 73,903,125 | $ | 1,058,999 | 5.75 | % | |||||||||||||||||||||||||||||
| Noninterest-earning assets: | |||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 410,446 | 350,343 | |||||||||||||||||||||||||||||||||||||||
Allowance for loan, lease and securities’ losses | (789,195) | (745,121) | |||||||||||||||||||||||||||||||||||||||
| Other assets | 3,483,309 | 3,353,681 | |||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 79,310,698 | $ | 76,862,028 | |||||||||||||||||||||||||||||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||
| Checking deposits | $ | 7,501,315 | $ | 46,725 | 2.47 | % | $ | 7,597,103 | $ | 47,013 | 2.48 | % | |||||||||||||||||||||||||||||
| Money market deposits | 16,565,937 | 133,951 | 3.21 | % | 15,325,928 | 124,282 | 3.25 | % | |||||||||||||||||||||||||||||||||
| Savings deposits | 1,705,332 | 3,353 | 0.78 | % | 1,745,220 | 3,700 | 0.85 | % | |||||||||||||||||||||||||||||||||
| Time deposits | 24,649,891 | 230,608 | 3.71 | % | 23,894,775 | 225,593 | 3.79 | % | |||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 50,422,475 | 414,637 | 3.26 | % | 48,563,026 | 400,588 | 3.31 | % | |||||||||||||||||||||||||||||||||
Short-term borrowings and federal funds purchased | 474 | 3 | 2.51 | % | 659 | 1 | 0.61 | % | |||||||||||||||||||||||||||||||||
| FHLB advances | 3,228,262 | 36,740 | 4.52 | % | 3,500,003 | 39,313 | 4.51 | % | |||||||||||||||||||||||||||||||||
Repurchase agreements | 13,012 | 148 | 4.51 | % | 119,061 | 1,352 | 4.55 | % | |||||||||||||||||||||||||||||||||
| Long-term debt and finance lease liabilities | 35,732 | 674 | 7.48 | % | 35,811 | 671 | 7.52 | % | |||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | $ | 53,699,955 | $ | 452,202 | 3.34 | % | $ | 52,218,560 | $ | 441,925 | 3.39 | % | |||||||||||||||||||||||||||||
| Noninterest-bearing liabilities and stockholders’ equity: | |||||||||||||||||||||||||||||||||||||||||
| Demand deposits | 15,767,292 | 15,114,806 | |||||||||||||||||||||||||||||||||||||||
| Accrued expenses and other liabilities | 1,462,237 | 1,458,680 | |||||||||||||||||||||||||||||||||||||||
| Stockholders’ equity | 8,381,214 | 8,069,982 | |||||||||||||||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 79,310,698 | $ | 76,862,028 | |||||||||||||||||||||||||||||||||||||
Total deposits | $ | 66,189,767 | $ | 414,637 | 2.49 | % | $ | 63,677,832 | $ | 400,588 | 2.52 | % | |||||||||||||||||||||||||||||
| Interest rate spread | 2.54 | % | 2.36 | % | |||||||||||||||||||||||||||||||||||||
Adjusted interest rate spread (4) | 2.37 | % | 2.36 | % | |||||||||||||||||||||||||||||||||||||
| Net interest income and net interest margin | $ | 677,530 | 3.53 | % | $ | 617,074 | 3.35 | % | |||||||||||||||||||||||||||||||||
Adjusted net interest income and adjusted net interest margin (4) | $ | 645,234 | 3.36 | % | $ | 617,074 | 3.35 | % | |||||||||||||||||||||||||||||||||
(1)Annualized.
(2)Includes $32 million of additional interest income from discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans during the three months ended September 30, 2025.
(3)Includes loans HFS.
(4)See reconciliation of GAAP to non-GAAP measures in Table 12.
11
| EAST WEST BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||
| QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES | |||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||||||||
| Table 7 | |||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
| September 30, 2025 | September 30, 2024 | ||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest | Average Yield/Rate (1) | Average Balance | Interest | Average Yield/Rate (1) | ||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||||||||||||
| Interest-bearing cash and deposits with banks | $ | 4,873,674 | $ | 47,170 | 3.84 | % | $ | 4,987,191 | $ | 60,060 | 4.79 | % | |||||||||||||||||||||||||||||
Resale agreements | 425,000 | 1,616 | 1.51 | % | 443,261 | 1,663 | 1.49 | % | |||||||||||||||||||||||||||||||||
| Debt securities: | |||||||||||||||||||||||||||||||||||||||||
| AFS | 12,650,323 | 146,336 | 4.59 | % | 9,316,232 | 111,552 | 4.76 | % | |||||||||||||||||||||||||||||||||
| HTM | 2,884,267 | 12,226 | 1.68 | % | 2,931,033 | 12,431 | 1.69 | % | |||||||||||||||||||||||||||||||||
| Total debt securities | 15,534,590 | 158,562 | 4.05 | % | 12,247,265 | 123,983 | 4.03 | % | |||||||||||||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||||||||||||||||
| C&I | 17,799,708 | 345,947 | 7.71 | % | (2) | 16,492,589 | 328,619 | 7.93 | % | ||||||||||||||||||||||||||||||||
| CRE | 20,826,239 | 327,168 | 6.23 | % | 20,272,662 | 328,254 | 6.44 | % | |||||||||||||||||||||||||||||||||
| Residential mortgage | 16,536,696 | 245,728 | 5.90 | % | 15,601,307 | 229,727 | 5.86 | % | |||||||||||||||||||||||||||||||||
| Other consumer | 45,935 | 675 | 5.83 | % | 53,958 | 753 | 5.55 | % | |||||||||||||||||||||||||||||||||
Total loans (3) | 55,208,578 | 919,518 | 6.61 | % | (2) | 52,420,516 | 887,353 | 6.73 | % | ||||||||||||||||||||||||||||||||
| FHLB and FRB stock | 164,296 | 2,866 | 6.92 | % | 165,262 | 2,840 | 6.84 | % | |||||||||||||||||||||||||||||||||
| Total interest-earning assets | $ | 76,206,138 | $ | 1,129,732 | 5.88 | % | $ | 70,263,495 | $ | 1,075,899 | 6.09 | % | |||||||||||||||||||||||||||||
| Noninterest-earning assets: | |||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 410,446 | 341,856 | |||||||||||||||||||||||||||||||||||||||
Allowance for loan, lease and securities’ losses | (789,195) | (691,399) | |||||||||||||||||||||||||||||||||||||||
| Other assets | 3,483,309 | 3,354,206 | |||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 79,310,698 | $ | 73,268,158 | |||||||||||||||||||||||||||||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||
| Checking deposits | $ | 7,501,315 | $ | 46,725 | 2.47 | % | $ | 7,762,719 | $ | 58,226 | 2.98 | % | |||||||||||||||||||||||||||||
| Money market deposits | 16,565,937 | 133,951 | 3.21 | % | 14,201,258 | 136,384 | 3.82 | % | |||||||||||||||||||||||||||||||||
| Savings deposits | 1,705,332 | 3,353 | 0.78 | % | 1,744,644 | 4,811 | 1.10 | % | |||||||||||||||||||||||||||||||||
| Time deposits | 24,649,891 | 230,608 | 3.71 | % | 22,270,124 | 254,650 | 4.55 | % | |||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 50,422,475 | 414,637 | 3.26 | % | 45,978,745 | 454,071 | 3.93 | % | |||||||||||||||||||||||||||||||||
| Short-term borrowings and federal funds purchased | 474 | 3 | 2.51 | % | 1,170 | 16 | 5.44 | % | |||||||||||||||||||||||||||||||||
| FHLB advances | 3,228,262 | 36,740 | 4.52 | % | 3,440,219 | 48,261 | 5.58 | % | |||||||||||||||||||||||||||||||||
| Repurchase agreements | 13,012 | 148 | 4.51 | % | 3,455 | 49 | 5.64 | % | |||||||||||||||||||||||||||||||||
| Long-term debt and finance lease liabilities | 35,732 | 674 | 7.48 | % | 36,084 | 780 | 8.60 | % | |||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | $ | 53,699,955 | $ | 452,202 | 3.34 | % | $ | 49,459,673 | $ | 503,177 | 4.05 | % | |||||||||||||||||||||||||||||
| Noninterest-bearing liabilities and stockholders’ equity: | |||||||||||||||||||||||||||||||||||||||||
| Demand deposits | 15,767,292 | 14,606,511 | |||||||||||||||||||||||||||||||||||||||
| Accrued expenses and other liabilities | 1,462,237 | 1,758,641 | |||||||||||||||||||||||||||||||||||||||
| Stockholders’ equity | 8,381,214 | 7,443,333 | |||||||||||||||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 79,310,698 | $ | 73,268,158 | |||||||||||||||||||||||||||||||||||||
Total deposits | $ | 66,189,767 | $ | 414,637 | 2.49 | % | $ | 60,585,256 | $ | 454,071 | 2.98 | % | |||||||||||||||||||||||||||||
| Interest rate spread | 2.54 | % | 2.04 | % | |||||||||||||||||||||||||||||||||||||
Adjusted interest rate spread (4) | 2.37 | % | 2.04 | % | |||||||||||||||||||||||||||||||||||||
| Net interest income and net interest margin | $ | 677,530 | 3.53 | % | $ | 572,722 | 3.24 | % | |||||||||||||||||||||||||||||||||
Adjusted net interest income and adjusted net interest margin (4) | $ | 645,234 | 3.36 | % | $ | 572,722 | 3.24 | % | |||||||||||||||||||||||||||||||||
(1)Annualized.
(2)Includes $32 million of additional interest income from discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans during the three months ended September 30, 2025.
(3)Includes loans HFS.
(4)See reconciliation of GAAP to non-GAAP measures in Table 12.
12
| EAST WEST BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||
| YEAR-TO-DATE AVERAGE BALANCES, YIELDS AND RATES | |||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||||||||
| Table 8 | |||||||||||||||||||||||||||||||||||||||||
| Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||
| September 30, 2025 | September 30, 2024 | ||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest | Average Yield/Rate (1) | Average Balance | Interest | Average Yield/Rate (1) | ||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||||||||||||
| Interest-bearing cash and deposits with banks | $ | 4,232,434 | $ | 121,242 | 3.83 | % | $ | 5,054,542 | $ | 183,848 | 4.86 | % | |||||||||||||||||||||||||||||
Resale agreements | 425,000 | 4,850 | 1.53 | % | 550,913 | 9,663 | 2.34 | % | |||||||||||||||||||||||||||||||||
| Debt securities: | |||||||||||||||||||||||||||||||||||||||||
| AFS | 12,287,338 | 423,351 | 4.61 | % | 8,125,876 | 273,652 | 4.50 | % | |||||||||||||||||||||||||||||||||
| HTM | 2,896,271 | 36,783 | 1.70 | % | 2,940,920 | 37,455 | 1.70 | % | |||||||||||||||||||||||||||||||||
| Total debt securities | 15,183,609 | 460,134 | 4.05 | % | 11,066,796 | 311,107 | 3.76 | % | |||||||||||||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||||||||||||||||
| C&I | 17,346,156 | 943,152 | 7.27 | % | (2) | 16,318,594 | 977,077 | 8.00 | % | ||||||||||||||||||||||||||||||||
| CRE | 20,579,793 | 958,220 | 6.23 | % | 20,318,851 | 975,447 | 6.41 | % | |||||||||||||||||||||||||||||||||
| Residential mortgage | 16,309,274 | 722,285 | 5.92 | % | 15,397,583 | 667,367 | 5.79 | % | |||||||||||||||||||||||||||||||||
| Other consumer | 47,537 | 1,968 | 5.54 | % | 54,233 | 2,292 | 5.65 | % | |||||||||||||||||||||||||||||||||
Total loans (3) | 54,282,760 | 2,625,625 | 6.47 | % | (2) | 52,089,261 | 2,622,183 | 6.72 | % | ||||||||||||||||||||||||||||||||
| FHLB and FRB stock | 165,121 | 8,682 | 7.03 | % | 141,051 | 7,129 | 6.75 | % | |||||||||||||||||||||||||||||||||
| Total interest-earning assets | $ | 74,288,924 | $ | 3,220,533 | 5.80 | % | $ | 68,902,563 | $ | 3,133,930 | 6.08 | % | |||||||||||||||||||||||||||||
| Noninterest-earning assets: | |||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 368,909 | 332,983 | |||||||||||||||||||||||||||||||||||||||
Allowance for loan, lease and securities’ losses | (750,458) | (681,988) | |||||||||||||||||||||||||||||||||||||||
| Other assets | 3,372,000 | 3,496,156 | |||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 77,279,375 | $ | 72,049,714 | |||||||||||||||||||||||||||||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||
| Checking deposits | $ | 7,621,067 | $ | 141,649 | 2.49 | % | $ | 7,642,423 | $ | 164,727 | 2.88 | % | |||||||||||||||||||||||||||||
| Money market deposits | 15,581,506 | 374,251 | 3.21 | % | 13,855,167 | 406,450 | 3.92 | % | |||||||||||||||||||||||||||||||||
| Savings deposits | 1,734,325 | 10,500 | 0.81 | % | 1,783,011 | 13,935 | 1.04 | % | |||||||||||||||||||||||||||||||||
| Time deposits | 23,913,370 | 680,806 | 3.81 | % | 20,886,769 | 706,640 | 4.52 | % | |||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 48,850,268 | 1,207,206 | 3.30 | % | 44,167,370 | 1,291,752 | 3.91 | % | |||||||||||||||||||||||||||||||||
BTFP, short-term borrowings and federal funds purchased | 520 | 10 | 2.57 | % | 1,284,826 | 42,154 | 4.38 | % | |||||||||||||||||||||||||||||||||
| FHLB advances | 3,408,426 | 114,919 | 4.51 | % | 2,501,826 | 104,840 | 5.60 | % | |||||||||||||||||||||||||||||||||
| Repurchase agreements | 46,275 | 1,577 | 4.56 | % | 3,370 | 142 | 5.63 | % | |||||||||||||||||||||||||||||||||
| Long-term debt and finance lease liabilities | 35,820 | 2,016 | 7.52 | % | 65,969 | 3,952 | 8.00 | % | |||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | $ | 52,341,309 | $ | 1,325,728 | 3.39 | % | $ | 48,023,361 | $ | 1,442,840 | 4.01 | % | |||||||||||||||||||||||||||||
| Noninterest-bearing liabilities and stockholders’ equity: | |||||||||||||||||||||||||||||||||||||||||
| Demand deposits | 15,331,138 | 14,741,590 | |||||||||||||||||||||||||||||||||||||||
| Accrued expenses and other liabilities | 1,498,313 | 2,109,318 | |||||||||||||||||||||||||||||||||||||||
| Stockholders’ equity | 8,108,615 | 7,175,445 | |||||||||||||||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 77,279,375 | $ | 72,049,714 | |||||||||||||||||||||||||||||||||||||
Total deposits | $ | 64,181,406 | $ | 1,207,206 | 2.51 | % | $ | 58,908,960 | $ | 1,291,752 | 2.93 | % | |||||||||||||||||||||||||||||
| Interest rate spread | 2.41 | % | 2.07 | % | |||||||||||||||||||||||||||||||||||||
Adjusted interest rate spread (4) | 2.35 | % | 2.07 | % | |||||||||||||||||||||||||||||||||||||
| Net interest income and net interest margin | $ | 1,894,805 | 3.41 | % | $ | 1,691,090 | 3.28 | % | |||||||||||||||||||||||||||||||||
Adjusted net interest income and adjusted net interest margin (4) | $ | 1,862,509 | 3.35 | % | $ | 1,691,090 | 3.28 | % | |||||||||||||||||||||||||||||||||
(1)Annualized.
(2)Includes $32 million of additional interest income from discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans during the nine months ended September 30, 2025.
(3)Includes loans HFS.
(4)See reconciliation of GAAP to non-GAAP measures in Table 12.
13
| EAST WEST BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
| SELECTED RATIOS | ||||||||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||||||||
| Table 9 | ||||||||||||||||||||||||||||||||||||||
Three Months Ended (1) | September 30, 2025 Basis Point Change | |||||||||||||||||||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | September 30, 2024 | Qtr-o-Qtr | Yr-o-Yr | ||||||||||||||||||||||||||||||||||
| Return on average assets | 1.84 | % | 1.62 | % | 1.62 | % | 22 | bps | 22 | bps | ||||||||||||||||||||||||||||
Adjusted return on average assets (2) | 1.82 | % | 1.65 | % | 1.58 | % | 17 | 24 | ||||||||||||||||||||||||||||||
| Return on average common equity | 17.44 | % | 15.42 | % | 15.99 | % | 202 | 145 | ||||||||||||||||||||||||||||||
Adjusted return on average common equity (2) | 17.20 | % | 15.71 | % | 15.57 | % | 149 | 163 | ||||||||||||||||||||||||||||||
Return on average TCE (3) | 18.48 | % | 16.39 | % | 17.08 | % | 209 | 140 | ||||||||||||||||||||||||||||||
Adjusted return on average TCE (3) | 18.23 | % | 16.69 | % | 16.63 | % | 154 | 160 | ||||||||||||||||||||||||||||||
| Interest rate spread | 2.54 | % | 2.36 | % | 2.04 | % | 18 | 50 | ||||||||||||||||||||||||||||||
Adjusted interest rate spread (4) | 2.37 | % | 2.36 | % | 2.04 | % | 1 | 33 | ||||||||||||||||||||||||||||||
| Net interest margin | 3.53 | % | 3.35 | % | 3.24 | % | 18 | 29 | ||||||||||||||||||||||||||||||
Adjusted net interest margin (4) | 3.36 | % | 3.35 | % | 3.24 | % | 1 | 12 | ||||||||||||||||||||||||||||||
| Average loan yield | 6.61 | % | 6.40 | % | 6.73 | % | 21 | (12) | ||||||||||||||||||||||||||||||
Adjusted average loan yield (4) | 6.38 | % | 6.40 | % | 6.73 | % | (2) | (35) | ||||||||||||||||||||||||||||||
| Yield on average interest-earning assets | 5.88 | % | 5.75 | % | 6.09 | % | 13 | (21) | ||||||||||||||||||||||||||||||
Adjusted yield on average interest-earning assets (4) | 5.71 | % | 5.75 | % | 6.09 | % | (4) | (38) | ||||||||||||||||||||||||||||||
| Average cost of interest-bearing deposits | 3.26 | % | 3.31 | % | 3.93 | % | (5) | (67) | ||||||||||||||||||||||||||||||
| Average cost of deposits | 2.49 | % | 2.52 | % | 2.98 | % | (3) | (49) | ||||||||||||||||||||||||||||||
| Average cost of funds | 2.58 | % | 2.63 | % | 3.12 | % | (5) | (54) | ||||||||||||||||||||||||||||||
| Operating noninterest expense/average assets | 1.31 | % | 1.20 | % | 1.20 | % | 11 | 11 | ||||||||||||||||||||||||||||||
| Efficiency ratio | 35.59 | % | 36.41 | % | 34.36 | % | (82) | 123 | ||||||||||||||||||||||||||||||
Adjusted efficiency ratio (5) | 33.75 | % | 36.52 | % | 36.07 | % | (277) | (232) | ||||||||||||||||||||||||||||||
Efficiency ratio (fully taxable equivalent) (“FTE”) (5) | 35.51 | % | 36.32 | % | 34.34 | % | (81) | 117 | ||||||||||||||||||||||||||||||
Adjusted efficiency ratio (FTE) (5) | 33.67 | % | 36.44 | % | 36.04 | % | (277) | (237) | ||||||||||||||||||||||||||||||
| Effective tax rate | 20.80 | % | 22.87 | % | 23.16 | % | (207) | (236) | ||||||||||||||||||||||||||||||
Adjusted effective tax rate (6) | 20.80 | % | 21.28 | % | 23.16 | % | (48) | bps | (236) | bps | ||||||||||||||||||||||||||||
Refer to table footnotes on the following page.
14
| EAST WEST BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||
| SELECTED RATIOS | ||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||
| Table 9 (continued) | ||||||||||||||||||||||||||
| Nine Months Ended | September 30, 2025 Basis Point Change | |||||||||||||||||||||||||
| September 30, 2025 | September 30, 2024 | Yr-o-Yr | ||||||||||||||||||||||||
| Return on average assets | 1.68 | % | 1.62 | % | 6 | bps | ||||||||||||||||||||
Adjusted return on average assets (2) | 1.68 | % | 1.61 | % | 7 | |||||||||||||||||||||
| Return on average common equity | 15.98 | % | 16.24 | % | (26) | |||||||||||||||||||||
Adjusted return on average common equity (2) | 16.00 | % | 16.21 | % | (21) | |||||||||||||||||||||
Return on average TCE (3) | 16.97 | % | 17.40 | % | (43) | |||||||||||||||||||||
Adjusted return on average TCE (3) | 16.99 | % | 17.37 | % | (38) | |||||||||||||||||||||
| Interest rate spread | 2.41 | % | 2.07 | % | 34 | |||||||||||||||||||||
Adjusted interest rate spread (4) | 2.35 | % | 2.07 | % | 28 | |||||||||||||||||||||
| Net interest margin | 3.41 | % | 3.28 | % | 13 | |||||||||||||||||||||
Adjusted net interest margin (4) | 3.35 | % | 3.28 | % | 7 | |||||||||||||||||||||
| Average loan yield | 6.47 | % | 6.72 | % | (25) | |||||||||||||||||||||
Adjusted average loan yield (4) | 6.39 | % | 6.72 | % | (33) | |||||||||||||||||||||
| Yield on average interest-earning assets | 5.80 | % | 6.08 | % | (28) | |||||||||||||||||||||
Adjusted yield on average interest-earning assets (4) | 5.74 | % | 6.08 | % | (34) | |||||||||||||||||||||
| Average cost of interest-bearing deposits | 3.30 | % | 3.91 | % | (61) | |||||||||||||||||||||
| Average cost of deposits | 2.51 | % | 2.93 | % | (42) | |||||||||||||||||||||
| Average cost of funds | 2.62 | % | 3.07 | % | (45) | |||||||||||||||||||||
| Operating noninterest expense/average assets | 1.26 | % | 1.25 | % | 1 | |||||||||||||||||||||
| Efficiency ratio | 36.12 | % | 36.54 | % | (42) | |||||||||||||||||||||
Adjusted efficiency ratio (5) | 35.49 | % | 36.65 | % | (116) | |||||||||||||||||||||
Efficiency ratio (FTE) (5) | 36.04 | % | 36.47 | % | (43) | |||||||||||||||||||||
Adjusted efficiency ratio (FTE) (5) | 35.41 | % | 36.58 | % | (117) | |||||||||||||||||||||
| Effective tax rate | 23.01 | % | 22.52 | % | 49 | |||||||||||||||||||||
Adjusted effective tax rate (6) | 22.50 | % | 22.52 | % | (2) | bps | ||||||||||||||||||||
September 30, 2025 Basis Point Change | |||||||||||||||||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | September 30, 2024 | Qtr-o-Qtr | Yr-o-Yr | |||||||||||||||||||||||||||||||
| Loan-to-deposit ratio | 83.78 | % | 84.54 | % | 86.31 | % | (76) | (253) | |||||||||||||||||||||||||||
(1)Annualized except for efficiency ratio and effective tax rate.
(2)Adjusted return on average assets and adjusted return on average common equity are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP financial measures in Table 14.
(3)Return on average TCE and adjusted return on average TCE are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP financial measures in Table 16.
(4)Adjusted interest rate spread, adjusted net interest margin, adjusted average loan yield and adjusted yield on average interest-earning assets are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP financial measures in Table 12.
(5)Adjusted efficiency ratio, efficiency ratio (FTE) and adjusted efficiency ratio (FTE) are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP financial measures in Table 15.
(6)Adjusted effective tax rate is a non-GAAP financial measures. See reconciliation of GAAP to non-GAAP financial measures in Table 13.
15
| EAST WEST BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Table 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial | Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| CRE | Residential Mortgage | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | C&I | CRE | Multifamily Residential | Construction and Land | Single-Family Residential | HELOCs | Other Consumer | Total | |||||||||||||||||||||||||||||||||||||||||||||
ALLL, June 30, 2025 | $ | 442,291 | $ | 212,618 | $ | 29,073 | $ | 17,856 | $ | 51,997 | $ | 5,256 | $ | 1,325 | $ | 760,416 | |||||||||||||||||||||||||||||||||||||
ALLL recognized on purchased credit-deteriorated (“PCD”) loans | 18,175 | — | — | — | — | — | — | 18,175 | |||||||||||||||||||||||||||||||||||||||||||||
(Reversal of) provision for credit losses on loans | (a) | (992) | 14,552 | 6,101 | 671 | 8,873 | 854 | (143) | 29,916 | ||||||||||||||||||||||||||||||||||||||||||||
| Gross charge-offs | (25,325) | (5) | — | — | — | — | (73) | (25,403) | |||||||||||||||||||||||||||||||||||||||||||||
| Gross recoveries | 7,236 | 2 | 13 | 3 | 6 | 3 | — | 7,263 | |||||||||||||||||||||||||||||||||||||||||||||
Total net (charge-offs) recoveries | (18,089) | (3) | 13 | 3 | 6 | 3 | (73) | (18,140) | |||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | 153 | — | — | — | — | — | — | 153 | |||||||||||||||||||||||||||||||||||||||||||||
ALLL, September 30, 2025 | $ | 441,538 | $ | 227,167 | $ | 35,187 | $ | 18,530 | $ | 60,876 | $ | 6,113 | $ | 1,109 | $ | 790,520 | |||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial | Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| CRE | Residential Mortgage | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | C&I | CRE | Multifamily Residential | Construction and Land | Single-Family Residential | HELOCs | Other Consumer | Total | |||||||||||||||||||||||||||||||||||||||||||||
ALLL, March 31, 2025 | $ | 421,288 | $ | 212,899 | $ | 32,324 | $ | 15,199 | $ | 46,929 | $ | 4,879 | $ | 1,338 | $ | 734,856 | |||||||||||||||||||||||||||||||||||||
| Provision for (reversal of) credit losses on loans | (a) | 27,595 | 8,007 | (3,274) | 2,654 | 5,064 | 369 | (259) | 40,156 | ||||||||||||||||||||||||||||||||||||||||||||
| Gross charge-offs | (8,151) | (8,306) | (3) | — | — | — | (4) | (16,464) | |||||||||||||||||||||||||||||||||||||||||||||
| Gross recoveries | 1,504 | 18 | 26 | 3 | 4 | 8 | 250 | 1,813 | |||||||||||||||||||||||||||||||||||||||||||||
| Total net recoveries (charge-offs) | (6,647) | (8,288) | 23 | 3 | 4 | 8 | 246 | (14,651) | |||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | 55 | — | — | — | — | — | — | 55 | |||||||||||||||||||||||||||||||||||||||||||||
ALLL, June 30, 2025 | $ | 442,291 | $ | 212,618 | $ | 29,073 | $ | 17,856 | $ | 51,997 | $ | 5,256 | $ | 1,325 | $ | 760,416 | |||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial | Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| CRE | Residential Mortgage | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | C&I | CRE | Multifamily Residential | Construction and Land | Single-Family Residential | HELOCs | Other Consumer | Total | |||||||||||||||||||||||||||||||||||||||||||||
ALLL, June 30, 2024 | $ | 379,984 | $ | 194,794 | $ | 40,254 | $ | 14,322 | $ | 49,523 | $ | 3,340 | $ | 1,577 | $ | 683,794 | |||||||||||||||||||||||||||||||||||||
| Provision for (reversal of) credit losses on loans | (a) | 26,416 | 27,123 | (8,493) | (1,975) | (1,293) | (128) | 67 | 41,717 | ||||||||||||||||||||||||||||||||||||||||||||
| Gross charge-offs | (29,260) | (734) | — | (145) | — | (10) | (149) | (30,298) | |||||||||||||||||||||||||||||||||||||||||||||
| Gross recoveries | 838 | 61 | 21 | 6 | 1 | 8 | — | 935 | |||||||||||||||||||||||||||||||||||||||||||||
| Total net (charge-offs) recoveries | (28,422) | (673) | 21 | (139) | 1 | (2) | (149) | (29,363) | |||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | 337 | — | — | — | — | — | — | 337 | |||||||||||||||||||||||||||||||||||||||||||||
ALLL, September 30, 2024 | $ | 378,315 | $ | 221,244 | $ | 31,782 | $ | 12,208 | $ | 48,231 | $ | 3,210 | $ | 1,495 | $ | 696,485 | |||||||||||||||||||||||||||||||||||||
16
| EAST WEST BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Table 10 (continued) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial | Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| CRE | Residential Mortgage | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | C&I | CRE | Multifamily Residential | Construction and Land | Single-Family Residential | HELOCs | Other Consumer | Total | |||||||||||||||||||||||||||||||||||||||||||||
ALLL, December 31, 2024 | $ | 384,319 | $ | 218,677 | $ | 32,117 | $ | 17,497 | $ | 44,816 | $ | 3,132 | $ | 1,494 | $ | 702,052 | |||||||||||||||||||||||||||||||||||||
ALLL recognized on PCD loans | 18,175 | — | — | — | — | — | — | 18,175 | |||||||||||||||||||||||||||||||||||||||||||||
| Provision for (reversal of) credit losses on loans | (a) | 62,973 | 30,664 | 3,028 | 3,020 | 16,009 | 2,962 | (522) | 118,134 | ||||||||||||||||||||||||||||||||||||||||||||
| Gross charge-offs | (34,464) | (22,248) | (7) | (1,996) | (9) | — | (126) | (58,850) | |||||||||||||||||||||||||||||||||||||||||||||
| Gross recoveries | 10,304 | 74 | 49 | 9 | 60 | 19 | 263 | 10,778 | |||||||||||||||||||||||||||||||||||||||||||||
| Total net (charge-offs) recoveries | (24,160) | (22,174) | 42 | (1,987) | 51 | 19 | 137 | (48,072) | |||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | 231 | — | — | — | — | — | — | 231 | |||||||||||||||||||||||||||||||||||||||||||||
ALLL, September 30, 2025 | $ | 441,538 | $ | 227,167 | $ | 35,187 | $ | 18,530 | $ | 60,876 | $ | 6,113 | $ | 1,109 | $ | 790,520 | |||||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial | Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| CRE | Residential Mortgage | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | C&I | CRE | Multifamily Residential | Construction and Land | Single-Family Residential | HELOCs | Other Consumer | Total | |||||||||||||||||||||||||||||||||||||||||||||
ALLL, December 31, 2023 | $ | 392,685 | 170,592 | 34,375 | 10,469 | 55,018 | 3,947 | $ | 1,657 | $ | 668,743 | ||||||||||||||||||||||||||||||||||||||||||
| Provision for (reversal of) credit losses on loans | (a) | 44,473 | 64,542 | (2,833) | 3,828 | (6,760) | (792) | 175 | 102,633 | ||||||||||||||||||||||||||||||||||||||||||||
| Gross charge-offs | (63,392) | (14,235) | (6) | (2,289) | (35) | (10) | (337) | (80,304) | |||||||||||||||||||||||||||||||||||||||||||||
| Gross recoveries | 4,365 | 345 | 246 | 200 | 8 | 65 | — | 5,229 | |||||||||||||||||||||||||||||||||||||||||||||
| Total net (charge-offs) recoveries | (59,027) | (13,890) | 240 | (2,089) | (27) | 55 | (337) | (75,075) | |||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | 184 | — | — | — | — | — | — | 184 | |||||||||||||||||||||||||||||||||||||||||||||
ALLL, September 30, 2024 | $ | 378,315 | $ | 221,244 | $ | 31,782 | $ | 12,208 | $ | 48,231 | $ | 3,210 | $ | 1,495 | $ | 696,485 | |||||||||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
| ($ in thousands) | September 30, 2025 | June 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||||||||||||||||||||
| Unfunded Credit Facilities | |||||||||||||||||||||||||||||||||||
Allowance for unfunded credit commitments, beginning of period (1) | $ | 45,307 | $ | 40,464 | $ | 38,783 | $ | 39,526 | $ | 37,698 | |||||||||||||||||||||||||
| Provision for credit losses on unfunded credit commitments | (b) | 3,084 | 4,844 | 283 | 8,866 | 1,367 | |||||||||||||||||||||||||||||
| Foreign currency translation adjustment | (1) | (1) | (4) | (2) | (3) | ||||||||||||||||||||||||||||||
Allowance for unfunded credit commitments, end of period (1) | $ | 48,390 | $ | 45,307 | $ | 39,062 | $ | 48,390 | $ | 39,062 | |||||||||||||||||||||||||
Provision for credit losses: | |||||||||||||||||||||||||||||||||||
Provision for credit losses on loans and unfunded credit commitments | (a)+(b) | $ | 33,000 | $ | 45,000 | $ | 42,000 | $ | 127,000 | $ | 104,000 | ||||||||||||||||||||||||
Provision for credit losses on AFS debt securities | (c) | 3,000 | — | — | 3,000 | — | |||||||||||||||||||||||||||||
Total provision for credit losses | (a)+(b)+(c) | $ | 36,000 | $ | 45,000 | $ | 42,000 | $ | 130,000 | $ | 104,000 | ||||||||||||||||||||||||
(1)Included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheet.
17
| EAST WEST BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||
CRITICIZED LOANS, NONPERFORMING ASSETS, CREDIT QUALITY RATIOS AND | |||||||||||||||||||||||
| COMPOSITION OF ALLOWANCE BY PORTFOLIO | |||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| Table 11 | |||||||||||||||||||||||
| Criticized Loans | September 30, 2025 | June 30, 2025 | September 30, 2024 | ||||||||||||||||||||
| Special mention loans | $ | 422,751 | $ | 446,665 | $ | 468,593 | |||||||||||||||||
| Classified loans | 768,568 | 736,228 | 641,642 | ||||||||||||||||||||
Total criticized loans (1) | $ | 1,191,319 | $ | 1,182,893 | $ | 1,110,235 | |||||||||||||||||
(1)Excludes loans HFS.
Nonperforming Assets | September 30, 2025 | June 30, 2025 | September 30, 2024 | ||||||||||||||||||||
| Nonaccrual loans: | |||||||||||||||||||||||
| Commercial: | |||||||||||||||||||||||
| C&I | $ | 70,065 | $ | 71,894 | $ | 75,272 | |||||||||||||||||
| Total CRE | 29,772 | 9,420 | 19,175 | ||||||||||||||||||||
| Consumer: | |||||||||||||||||||||||
| Total residential mortgage | 57,024 | 58,003 | 52,311 | ||||||||||||||||||||
| Other consumer | 73 | 137 | 102 | ||||||||||||||||||||
| Total nonaccrual loans | 156,934 | 139,454 | 146,860 | ||||||||||||||||||||
| Other real estate owned, net | 24,208 | 32,224 | 41,248 | ||||||||||||||||||||
| Other nonperforming assets | — | — | 7,358 | ||||||||||||||||||||
| Nonperforming loans HFS | 19,596 | — | — | ||||||||||||||||||||
| Total nonperforming assets | $ | 200,738 | $ | 171,678 | $ | 195,466 | |||||||||||||||||
| Credit Quality Ratios | September 30, 2025 | June 30, 2025 | September 30, 2024 | ||||||||||||||||||||
| Annualized quarterly net charge-offs to average loans HFI | 0.13 | % | 0.11 | % | 0.22 | % | |||||||||||||||||
Annualized YTD net charge-offs to YTD average loans HFI | 0.12 | % | 0.11 | % | 0.19 | % | |||||||||||||||||
| Special mention loans to loans HFI | 0.76 | % | 0.81 | % | 0.88 | % | |||||||||||||||||
| Classified loans to loans HFI | 1.38 | % | 1.34 | % | 1.20 | % | |||||||||||||||||
| Criticized loans to loans HFI | 2.14 | % | 2.15 | % | 2.08 | % | |||||||||||||||||
| Nonperforming assets to total assets | 0.25 | % | 0.22 | % | 0.26 | % | |||||||||||||||||
| Nonaccrual loans to loans HFI | 0.28 | % | 0.25 | % | 0.28 | % | |||||||||||||||||
ALLL to loans HFI | 1.42 | % | 1.38 | % | 1.31 | % | |||||||||||||||||
Composition of ALLL by Portfolio | September 30, 2025 | June 30, 2025 | September 30, 2024 | ||||||||||||||||||||||||||||||||||||||
| Loan Category | ALLL | ALLL/ Loans HFI | ALLL | ALLL/ Loans HFI | ALLL | ALLL/ Loans HFI | |||||||||||||||||||||||||||||||||||
| C&I | $ | 441,538 | 2.45 | % | $ | 442,291 | 2.48 | % | $ | 378,315 | 2.22 | % | |||||||||||||||||||||||||||||
| Total CRE | 280,884 | 1.33 | 259,547 | 1.26 | 265,234 | 1.30 | |||||||||||||||||||||||||||||||||||
| Multifamily | 35,187 | 0.70 | 29,073 | 0.58 | 31,782 | 0.62 | |||||||||||||||||||||||||||||||||||
| Office | 64,211 | 2.93 | 60,354 | 2.78 | 66,614 | 3.11 | |||||||||||||||||||||||||||||||||||
| All other CRE | 181,486 | 1.31 | 170,120 | 1.26 | 166,838 | 1.27 | |||||||||||||||||||||||||||||||||||
| Residential mortgage & consumer | 68,098 | 0.41 | 58,578 | 0.36 | 52,936 | 0.34 | |||||||||||||||||||||||||||||||||||
| Total loans | $ | 790,520 | 1.42 | % | $ | 760,416 | 1.38 | % | $ | 696,485 | 1.31 | % | |||||||||||||||||||||||||||||
18
| EAST WEST BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
| GAAP TO NON-GAAP RECONCILIATION | ||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||||||||
| Table 12 | ||||||||||||||||||||||||||||||||||||||
| Management believes that presenting the adjusted average C&I and loan yields, adjusted yield on average interest-earning assets, adjusted interest rate spread, and adjusted net interest margin that exclude the impact of discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans provide clarity to financial statement users regarding the changes in yields and margins, and allows comparability to prior periods. | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
| Average C&I loan yield | September 30, 2025 | June 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | |||||||||||||||||||||||||||||||||
| Interest income on C&I loans | (a) | $ | 345,947 | $ | 303,791 | $ | 328,619 | $ | 943,152 | $ | 977,077 | |||||||||||||||||||||||||||
| Less: Loan payoff discount accretion and interest recoveries | (32,296) | — | — | (32,296) | — | |||||||||||||||||||||||||||||||||
| Adjusted interest income on loans | (b) | $ | 313,651 | $ | 303,791 | $ | 328,619 | $ | 910,856 | $ | 977,077 | |||||||||||||||||||||||||||
| Average C&I loans | (c) | $ | 17,799,708 | $ | 17,363,095 | $ | 16,492,589 | $ | 17,346,156 | $ | 16,318,594 | |||||||||||||||||||||||||||
Average C&I loan yield (1) | (a)/(c) | 7.71 | % | 7.02 | % | 7.93 | % | 7.27 | % | 8.00 | % | |||||||||||||||||||||||||||
Adjusted average C&I loan yield (1) | (b)/(c) | 6.99 | % | 7.02 | % | 7.93 | % | 7.02 | % | 8.00 | % | |||||||||||||||||||||||||||
| Average loan yield | ||||||||||||||||||||||||||||||||||||||
| Interest income on loans | (d) | $ | 919,518 | $ | 865,695 | $ | 887,353 | $ | 2,625,625 | $ | 2,622,183 | |||||||||||||||||||||||||||
| Less: Loan payoff discount accretion and interest recoveries | (32,296) | — | — | (32,296) | — | |||||||||||||||||||||||||||||||||
| Adjusted interest income on loans | (e) | $ | 887,222 | $ | 865,695 | $ | 887,353 | $ | 2,593,329 | $ | 2,622,183 | |||||||||||||||||||||||||||
| Average loans | (f) | $ | 55,208,578 | $ | 54,281,432 | $ | 52,420,516 | $ | 54,282,760 | $ | 52,089,261 | |||||||||||||||||||||||||||
Average loan yield (1) | (d)/(f) | 6.61 | % | 6.40 | % | 6.73 | % | 6.47 | % | 6.72 | % | |||||||||||||||||||||||||||
Adjusted average loan yield (1) | (e)/(f) | 6.38 | % | 6.40 | % | 6.73 | % | 6.39 | % | 6.72 | % | |||||||||||||||||||||||||||
| Yield on average interest-earning assets | ||||||||||||||||||||||||||||||||||||||
| Interest and dividend income | (g) | $ | 1,129,732 | $ | 1,058,999 | $ | 1,075,899 | $ | 3,220,533 | $ | 3,133,930 | |||||||||||||||||||||||||||
| Less: Loan payoff discount accretion and interest recoveries | (32,296) | — | — | (32,296) | — | |||||||||||||||||||||||||||||||||
| Adjusted interest and dividend income | (h) | $ | 1,097,436 | $ | 1,058,999 | $ | 1,075,899 | $ | 3,188,237 | $ | 3,133,930 | |||||||||||||||||||||||||||
| Average interest-earning assets | (i) | $ | 76,206,138 | $ | 73,903,125 | $ | 70,263,495 | $ | 74,288,924 | $ | 68,902,563 | |||||||||||||||||||||||||||
Yield on average interest-earning assets (1) | (j)=(g)/(i) | 5.88 | % | 5.75 | % | 6.09 | % | 5.80 | % | 6.08 | % | |||||||||||||||||||||||||||
Adjusted yield on average interest-earning assets (1) | (k)=(h)/(i) | 5.71 | % | 5.75 | % | 6.09 | % | 5.74 | % | 6.08 | % | |||||||||||||||||||||||||||
| Interest rate spread | ||||||||||||||||||||||||||||||||||||||
Interest on average interest-bearing liabilities (1) | (l) | 3.34 | % | 3.39 | % | 4.05 | % | 3.39 | % | 4.01 | % | |||||||||||||||||||||||||||
| Interest rate spread | (j)-(l) | 2.54 | % | 2.36 | % | 2.04 | % | 2.41 | % | 2.07 | % | |||||||||||||||||||||||||||
| Adjusted interest rate spread | (k)-(l) | 2.37 | % | 2.36 | % | 2.04 | % | 2.35 | % | 2.07 | % | |||||||||||||||||||||||||||
| Net interest margin | ||||||||||||||||||||||||||||||||||||||
| Net interest income | (m) | $ | 677,530 | $ | 617,074 | $ | 572,722 | $ | 1,894,805 | $ | 1,691,090 | |||||||||||||||||||||||||||
| Less: Loan payoff discount accretion and interest recoveries | (32,296) | — | — | (32,296) | — | |||||||||||||||||||||||||||||||||
| Adjusted net interest income | (n) | $ | 645,234 | $ | 617,074 | $ | 572,722 | $ | 1,862,509 | $ | 1,691,090 | |||||||||||||||||||||||||||
| Average interest-earning assets | (o) | $ | 76,206,138 | $ | 73,903,125 | $ | 70,263,495 | $ | 74,288,924 | $ | 68,902,563 | |||||||||||||||||||||||||||
Net interest margin (1) | (m)/(o) | 3.53 | % | 3.35 | % | 3.24 | % | 3.41 | % | 3.28 | % | |||||||||||||||||||||||||||
Adjusted net interest margin (1) | (n)/(o) | 3.36 | % | 3.35 | % | 3.24 | % | 3.35 | % | 3.28 | % | |||||||||||||||||||||||||||
(1)Annualized.
19
| EAST WEST BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
| GAAP TO NON-GAAP RECONCILIATION | ||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||||||||
| Table 13 | ||||||||||||||||||||||||||||||||||||||
On June 30, 2025, California approved the single sales factor apportionment method (“CA SSF”) for financial institutions for the 2025 tax year, which resulted in $6 million of additional income tax expense recorded in the second quarter of 2025. The table below provides the computation of the Company’s effective tax rate and adjusted effective tax rate excluding the impact of the CA SSF. Management believes that presenting the adjusted effective tax rate computation allows comparability to prior periods. | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||||||||||||||||||||||||
Income tax expense | (a) | $ | 96,730 | $ | 91,979 | $ | 90,151 | $ | 289,594 | $ | 253,566 | |||||||||||||||||||||||||||
Less: Impact of the CA SSF | (b) | — | (6,391) | — | (6,391) | — | ||||||||||||||||||||||||||||||||
Adjusted income tax expense | (c)=(a)+(b) | $ | 96,730 | $ | 85,588 | $ | 90,151 | $ | 283,203 | $ | 253,566 | |||||||||||||||||||||||||||
Income before income taxes | (d) | 465,124 | 402,232 | 389,317 | 1,258,511 | 1,126,037 | ||||||||||||||||||||||||||||||||
Effective tax rate | (a)/(d) | 20.80 | % | 22.87 | % | 23.16 | % | 23.01 | % | 22.52 | % | |||||||||||||||||||||||||||
Less: Impact of the CA SSF | (b)/(d) | — | % | (1.59) | % | — | % | (0.51) | % | — | % | |||||||||||||||||||||||||||
Adjusted effective tax rate | (c)/(d) | 20.80 | % | 21.28 | % | 23.16 | % | 22.50 | % | 22.52 | % | |||||||||||||||||||||||||||
20
| EAST WEST BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
| GAAP TO NON-GAAP RECONCILIATION | ||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||||||||
| Table 14 | ||||||||||||||||||||||||||||||||||||||
Adjusted net income and adjusted diluted EPS represent net income and diluted EPS adjusted for the following tax-effected impacts: discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans, change in equity award expense recognition for retirement eligible employees, FDIC special assessment and DC Solar adjustments; and the impact of the CA SSF. Management believes that presenting the computations of the adjusted net income, adjusted diluted EPS, adjusted return on average assets and adjusted return on average common equity that exclude the aforementioned tax-effected adjustments and the impact of the CA SSF provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods. •Discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans are included in Interest and dividend income on the Condensed Consolidated Statement of Income. •During the third quarter and first nine months of 2025, the Company recorded $27 million of additional compensation due to the change in equity award expense recognition for retirement eligible employees (included in Compensation and employee benefits on the Condensed Consolidated Statement of Income). •FDIC special assessment reversals/charges are included in Deposit insurance premiums and regulatory assessments on the Condensed Consolidated Statement of Income. •DC Solar recoveries related to the Company’s investment in DC Solar are included in Amortization of Tax Credit and CRA Investments on the Condensed Consolidated Statement of Income. | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||||||||||||||||||||||||
| Net income | (a) | $ | 368,394 | $ | 310,253 | $ | 299,166 | $ | 968,917 | $ | 872,471 | |||||||||||||||||||||||||||
| Less: Loan payoff discount accretion and interest recoveries | (b) | (32,296) | — | — | (32,296) | — | ||||||||||||||||||||||||||||||||
| Add: Change in equity award expense recognition for retirement eligible employees | (b) | 27,141 | — | — | 27,141 | — | ||||||||||||||||||||||||||||||||
| Less/Add: FDIC special assessment (reversal) charge | (b) | (1,927) | (833) | — | (1,927) | 12,185 | ||||||||||||||||||||||||||||||||
| Less: DC Solar recovery | (b) | — | — | (11,201) | — | (14,347) | ||||||||||||||||||||||||||||||||
Tax effects adjustments (1) | (b) | 1,996 | 235 | 3,311 | 1,996 | 639 | ||||||||||||||||||||||||||||||||
| Add: Impact of the CA SSF | (b) | — | 6,391 | — | 6,391 | — | ||||||||||||||||||||||||||||||||
| Adjusted net income | (c)=(a)+∑(b) | $ | 363,308 | $ | 316,046 | $ | 291,276 | $ | 970,222 | $ | 870,948 | |||||||||||||||||||||||||||
| Diluted weighted-average number of shares outstanding | (d) | 138,942 | 138,789 | 139,648 | 139,090 | 139,939 | ||||||||||||||||||||||||||||||||
| Diluted EPS | (e) | $ | 2.65 | $ | 2.24 | $ | 2.14 | $ | 6.97 | $ | 6.23 | |||||||||||||||||||||||||||
| Less: Loan payoff discount accretion and interest recoveries | (f) | (0.23) | — | — | (0.23) | — | ||||||||||||||||||||||||||||||||
| Add: Change in equity award expense recognition for retirement eligible employees | (f) | 0.20 | — | — | 0.20 | — | ||||||||||||||||||||||||||||||||
| Less/Add: FDIC special assessment (reversal) charge | (f) | (0.01) | (0.01) | — | (0.01) | 0.09 | ||||||||||||||||||||||||||||||||
| Less: DC Solar recovery | (f) | — | — | (0.08) | — | (0.10) | ||||||||||||||||||||||||||||||||
Tax effects of adjustments (1) | (f) | 0.01 | — | 0.03 | 0.01 | — | ||||||||||||||||||||||||||||||||
| Add: Impact of the CA SSF | (f) | — | 0.05 | — | 0.05 | — | ||||||||||||||||||||||||||||||||
| Adjusted diluted EPS | (g)=(e)+∑(f) | $ | 2.62 | $ | 2.28 | $ | 2.09 | $ | 6.99 | $ | 6.22 | |||||||||||||||||||||||||||
| Average total assets | (h) | $ | 79,310,698 | $ | 76,862,028 | $ | 73,268,158 | $ | 77,279,375 | $ | 72,049,714 | |||||||||||||||||||||||||||
| Average stockholders’ equity | (i) | $ | 8,381,214 | $ | 8,069,982 | $ | 7,443,333 | $ | 8,108,615 | $ | 7,175,445 | |||||||||||||||||||||||||||
| Return on average assets | (a)/(h) | 1.84 | % | 1.62 | % | 1.62 | % | 1.68 | % | 1.62 | % | |||||||||||||||||||||||||||
Adjusted return on average assets (2) | (c)/(h) | 1.82 | % | 1.65 | % | 1.58 | % | 1.68 | % | 1.61 | % | |||||||||||||||||||||||||||
Return on average common equity (2) | (a)/(i) | 17.44 | % | 15.42 | % | 15.99 | % | 15.98 | % | 16.24 | % | |||||||||||||||||||||||||||
Adjusted return on average common equity (2) | (c)/(i) | 17.20 | % | 15.71 | % | 15.57 | % | 16.00 | % | 16.21 | % | |||||||||||||||||||||||||||
(1)Applied statutory tax rate of 28.18% for the three and nine months ended September 30, 2025, and the three months ended June 30, 2025. Applied statutory tax rate of 29.56% for the three and nine months ended September 30, 2024.
(2)Annualized.
21
| EAST WEST BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
| GAAP TO NON-GAAP RECONCILIATION | ||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||||||||
| Table 15 | ||||||||||||||||||||||||||||||||||||||
| The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Non-GAAP measures used consist of FTE net interest income and total revenue. The FTE adjustment relates to tax exempt interest on certain investment securities and loans. Adjusted total revenue and adjusted total revenue (FTE) reflect the adjustments related to the discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans. Adjusted noninterest expense reflects the change in equity award expense recognition for retirement eligible employees, and the FDIC special assessment and DC Solar adjustments (as applicable). Efficiency ratio (FTE) represents noninterest expense divided by total revenue (FTE). Adjusted efficiency ratio and adjusted efficiency ratio (FTE) reflect the impacts of the aforementioned adjustments. Pre-tax, pre-provision income represents total revenue (FTE) less noninterest expense. Adjusted pre-tax, pre-provision income represents adjusted total revenue (FTE) less adjusted noninterest expense. | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||||||||||||||||||||||||
| Net interest income before provision for credit losses | (a) | $ | 677,530 | $ | 617,074 | $ | 572,722 | $ | 1,894,805 | $ | 1,691,090 | |||||||||||||||||||||||||||
| FTE adjustment | (b) | 1,887 | 1,603 | 411 | 4,636 | 3,491 | ||||||||||||||||||||||||||||||||
| FTE net interest income before provision for credit losses | (c)=(a)+(b) | 679,417 | 618,677 | 573,133 | 1,899,441 | 1,694,581 | ||||||||||||||||||||||||||||||||
| Total noninterest income | (d) | 100,517 | 86,178 | 84,395 | 278,797 | 247,053 | ||||||||||||||||||||||||||||||||
| Total revenue | (e)=(a)+(d) | 778,047 | 703,252 | 657,117 | 2,173,602 | 1,938,143 | ||||||||||||||||||||||||||||||||
| Total revenue (FTE) | (f)=(c)+(d) | $ | 779,934 | $ | 704,855 | $ | 657,528 | $ | 2,178,238 | $ | 1,941,634 | |||||||||||||||||||||||||||
| Less: Loan payoff discount accretion and interest recoveries | (g) | (32,296) | — | — | (32,296) | — | ||||||||||||||||||||||||||||||||
| Adjusted total revenue | (h)=(e)+(g) | 745,751 | 703,252 | 657,117 | 2,141,306 | 1,938,143 | ||||||||||||||||||||||||||||||||
| Adjusted total revenue (FTE) | (i)=(f)+(g) | $ | 747,638 | $ | 704,855 | $ | 657,528 | $ | 2,145,942 | $ | 1,941,634 | |||||||||||||||||||||||||||
| Total noninterest expense | (j) | $ | 276,923 | $ | 256,020 | $ | 225,800 | $ | 785,091 | $ | 708,106 | |||||||||||||||||||||||||||
| Less: Change in equity award expense recognition for retirement eligible employees | (k) | (27,141) | — | — | (27,141) | — | ||||||||||||||||||||||||||||||||
| Add/less: FDIC special assessment reversal (charge) | (k) | 1,927 | 833 | — | 1,927 | (12,185) | ||||||||||||||||||||||||||||||||
| Less: DC Solar recovery | (k) | — | — | 11,201 | — | 14,347 | ||||||||||||||||||||||||||||||||
| Adjusted noninterest expense | (l)=(j)+∑(k) | $ | 251,709 | $ | 256,853 | $ | 237,001 | $ | 759,877 | $ | 710,268 | |||||||||||||||||||||||||||
| Efficiency ratio | (j)/(e) | 35.59 | % | 36.41 | % | 34.36 | % | 36.12 | % | 36.54 | % | |||||||||||||||||||||||||||
| Adjusted efficiency ratio | (l)/(h) | 33.75 | % | 36.52 | % | 36.07 | % | 35.49 | % | 36.65 | % | |||||||||||||||||||||||||||
| Efficiency ratio (FTE) | (j)/(f) | 35.51 | % | 36.32 | % | 34.34 | % | 36.04 | % | 36.47 | % | |||||||||||||||||||||||||||
| Adjusted efficiency ratio (FTE) | (l)/(i) | 33.67 | % | 36.44 | % | 36.04 | % | 35.41 | % | 36.58 | % | |||||||||||||||||||||||||||
| Pre-tax, pre-provision income | (f)-(j) | $ | 503,011 | $ | 448,835 | $ | 431,728 | $ | 1,393,147 | $ | 1,233,528 | |||||||||||||||||||||||||||
| Adjusted pre-tax, pre-provision income | (i)-(l) | $ | 495,929 | $ | 448,002 | $ | 420,527 | $ | 1,386,065 | $ | 1,231,366 | |||||||||||||||||||||||||||
22
| EAST WEST BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||
| GAAP TO NON-GAAP RECONCILIATION | ||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||
| Table 16 | ||||||||||||||||||||||||||
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible book value, tangible book value per share and TCE ratio are non-GAAP financial measures. Tangible book value and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and mortgage servicing assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and are used by banking regulators and analysts, the Company has included them below for discussion. | ||||||||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | September 30, 2024 | ||||||||||||||||||||||||
Common stock | $ | 170 | $ | 170 | $ | 170 | ||||||||||||||||||||
Additional paid-in capital | 2,096,227 | 2,060,115 | 2,018,105 | |||||||||||||||||||||||
Retained earnings | 8,028,882 | 7,744,221 | 7,095,587 | |||||||||||||||||||||||
Treasury stock | (1,166,922) | (1,140,359) | (1,012,019) | |||||||||||||||||||||||
Accumulated other comprehensive income: | ||||||||||||||||||||||||||
| AFS debt securities net unrealized losses | (383,621) | (466,568) | (456,493) | |||||||||||||||||||||||
| Cash flow hedges net unrealized gains (losses) | 30,425 | 28,622 | 39,143 | |||||||||||||||||||||||
| Foreign currency translation adjustments | (22,361) | (24,434) | (19,954) | |||||||||||||||||||||||
| Total accumulated other comprehensive loss | (375,557) | (462,380) | (437,304) | |||||||||||||||||||||||
| Stockholders’ equity | (a) | $ | 8,582,800 | $ | 8,201,767 | $ | 7,664,539 | |||||||||||||||||||
| Less: Goodwill | (465,697) | (465,697) | (465,697) | |||||||||||||||||||||||
| Mortgage servicing assets | (4,362) | (4,628) | (5,563) | |||||||||||||||||||||||
| Tangible book value | (b) | $ | 8,112,741 | $ | 7,731,442 | $ | 7,193,279 | |||||||||||||||||||
| Number of common shares at period-end | (c) | 137,568 | 137,816 | 138,609 | ||||||||||||||||||||||
| Book value per share | (a)/(c) | $ | 62.39 | $ | 59.51 | $ | 55.30 | |||||||||||||||||||
| Tangible book value per share | (b)/(c) | $ | 58.97 | $ | 56.10 | $ | 51.90 | |||||||||||||||||||
| Total assets | (d) | $ | 79,669,531 | $ | 78,158,067 | $ | 74,483,720 | |||||||||||||||||||
| Less: Goodwill | (465,697) | (465,697) | (465,697) | |||||||||||||||||||||||
| Mortgage servicing assets | (4,362) | (4,628) | (5,563) | |||||||||||||||||||||||
| Tangible assets | (e) | $ | 79,199,472 | $ | 77,687,742 | $ | 74,012,460 | |||||||||||||||||||
| Total stockholders’ equity to assets ratio | (a)/(d) | 10.77 | % | 10.49 | % | 10.29 | % | |||||||||||||||||||
| TCE ratio | (b)/(e) | 10.24 | % | 9.95 | % | 9.72 | % | |||||||||||||||||||
23
| EAST WEST BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
| GAAP TO NON-GAAP RECONCILIATION | ||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||||||||
| Table 16 (continued) | ||||||||||||||||||||||||||||||||||||||
| Return on average TCE represents tangible net income divided by average tangible book value. Tangible net income excludes the after-tax impacts of the amortization of mortgage servicing assets. Adjusted return on average TCE represents adjusted tangible net income divided by average tangible book value. Adjusted tangible net income is tangible net income excluding the following tax-effected impacts: discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans, change in equity award expense recognition for retirement eligible employees, FDIC special assessment and DC Solar adjustments, and the impact of the CA SSF. Given that the use of such measures and ratios is more prevalent in the banking industry, and are used by banking regulators and analysts, the Company has included them below for discussion. | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||||||||||||||||||||||||
| Net income | (f) | $ | 368,394 | $ | 310,253 | $ | 299,166 | $ | 968,917 | $ | 872,471 | |||||||||||||||||||||||||||
| Add: Amortization of mortgage servicing assets | 266 | 316 | 348 | 875 | 988 | |||||||||||||||||||||||||||||||||
Tax effect of amortization adjustment (1) | (75) | (89) | (103) | (247) | (292) | |||||||||||||||||||||||||||||||||
| Tangible net income | (g) | $ | 368,585 | $ | 310,480 | $ | 299,411 | $ | 969,545 | $ | 873,167 | |||||||||||||||||||||||||||
| Less: Loan payoff discount accretion and interest recoveries | (32,296) | — | — | (32,296) | — | |||||||||||||||||||||||||||||||||
| Add: Change in equity award expense recognition for retirement eligible employees | 27,141 | — | — | 27,141 | — | |||||||||||||||||||||||||||||||||
Less/Add: FDIC special assessment (reversal) charge | (1,927) | (833) | — | (1,927) | 12,185 | |||||||||||||||||||||||||||||||||
| Less: DC Solar recovery | — | — | (11,201) | — | (14,347) | |||||||||||||||||||||||||||||||||
Tax effects of adjustments (1) | 1,996 | 235 | 3,311 | 1,996 | 639 | |||||||||||||||||||||||||||||||||
Add: Impact of the CA SSF | — | 6,391 | — | 6,391 | — | |||||||||||||||||||||||||||||||||
| Adjusted tangible net income | (h) | $ | 363,499 | $ | 316,273 | $ | 291,521 | $ | 970,850 | $ | 871,644 | |||||||||||||||||||||||||||
| Average stockholders’ equity | (i) | $ | 8,381,214 | $ | 8,069,982 | $ | 7,443,333 | $ | 8,108,615 | $ | 7,175,445 | |||||||||||||||||||||||||||
| Less: Average goodwill | (465,697) | (465,697) | (465,697) | (465,697) | (465,697) | |||||||||||||||||||||||||||||||||
| Average mortgage servicing assets | (4,534) | (4,825) | (5,790) | (4,824) | (6,123) | |||||||||||||||||||||||||||||||||
| Average tangible book value | (j) | $ | 7,910,983 | $ | 7,599,460 | $ | 6,971,846 | $ | 7,638,094 | $ | 6,703,625 | |||||||||||||||||||||||||||
Return on average common equity (2) | (f)/(i) | 17.44 | % | 15.42 | % | 15.99 | % | 15.98 | % | 16.24 | % | |||||||||||||||||||||||||||
Return on average TCE (2) | (g)/(j) | 18.48 | % | 16.39 | % | 17.08 | % | 16.97 | % | 17.40 | % | |||||||||||||||||||||||||||
Adjusted return on average TCE (2) | (h)/(j) | 18.23 | % | 16.69 | % | 16.63 | % | 16.99 | % | 17.37 | % | |||||||||||||||||||||||||||
(1)Applied statutory tax rate of 28.18% for the three and nine months ended September 30, 2025, and the three months ended June 30, 2025. Applied statutory tax rate of 29.56% for the three and nine months ended September 30, 2024.
(2)Annualized.
24
3Q 25 East West Bancorp, Inc. 3Q Earnings Presentation October 21, 2025
Forward-Looking Statements and Additional Information In this presentation, “we”, “our”, “us”, “East West” and the “Company” refer to East West Bancorp, Inc., and its consolidated subsidiaries unless the context indicates otherwise. 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 assumptions, beliefs, estimates, and projections, many of which, by their nature, are inherently uncertain and beyond our control. You should not place undue reliance on these statements. There are various important factors that could cause the Company’s future results to differ materially from historical performance and any forward-looking statements, including the factors described 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, 2024 and in its subsequent Quarterly Reports on Form 10-Q. 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, and specifically disclaims, any obligation to update or revise any forward-looking statements, whether written or oral, except as required by law. Basis of Presentation The preparation of the Company’s consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements, income and expenses during the reporting periods, and the related disclosures. Although our estimates consider current conditions and how we expect them to change in the future, it is reasonably possible that actual results could be materially different from those estimates. Hence, the current period’s results of operations are not necessarily indicative of results that may be expected for any future interim period or for the year as a whole. Certain prior period information have been reclassified to conform to the current presentation. Industry Information This presentation includes statistical and other industry and market data that we obtained from government reports and other third-party sources. Although we believe that this information is accurate and reliable, we have not independently verified such information. Forward-looking information that we have obtained from these sources is subject to the same uncertainties and qualifications as other forward-looking statements contained herein. Non-GAAP Financial Measures Certain financial information in this presentation has not been prepared in accordance with GAAP and is presented on a non-GAAP basis. Investors should refer to the reconciliations included in the appendix to 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. 2
3Q25 Financial Highlights 3 Record 3Q25 net income of $368 million, $2.65 diluted quarterly earnings per share ▪ Total EOP customer deposits up $1.5bn+ Q-o-Q ▪ Total EOP loans up $800mm+ Q-o-Q ▪ Optimized funding; paid down $500mm of Federal Home Loan Bank (FHLB) advances ▪ Ample liquidity: incrementally bolstered cash and securities ▪ Record revenue of $778mm ▪ Record NII of $678mm ▪ Record fee income of $92mm ▪ Record pre-tax pre-provision1 income (PTPP) of $503mm ▪ 17% ROACE (18% ROTCE1) ▪ Annualized quarterly NCOs of 13bps ▪ Nonperforming assets at 25bps ▪ Provision for credit losses of $36mm ▪ Bolstered ALLL to 1.42%, reflecting changes in our economic outlook Deposit-Led Growth Record Fees and Earnings Resilient Asset Quality Position of Significant Strength (1) See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s earnings press releases ▪ Record reported total capital of $8.6bn − 14.8% Common Equity Tier 1 (CET 1) ratio; 10.2% Tangible Common Equity (TCE)1 ratio ▪ $216mm of share repurchase authorization remains available ▪ Strong liquidity levels: 26% of assets in cash and securities
22.3 22.9 23.2 23.9 24.6 9.5 9.7 9.5 9.4 9.2 14.2 14.3 14.8 15.3 16.6 14.6 15.0 15.1 15.1 15.8 $60.6 $61.9 $62.6 $63.7 $66.2 3Q24 4Q24 1Q25 2Q25 3Q25 Deposits 4 Another $1 billion+ quarter of customer deposit growth, with 8% Y-o-Y growth in average noninterest-bearing demand ($ in billions) Average Deposits End of Period Deposit Growth by Category (2Q25 to 3Q25) ($ in millions) +17% -3% +8% Y-o-Y +9% +11% Q-o-Q +2% +4% +4% +1% -3%$(283) $190 $672 $980 IB Checking & Savings Money Market Noninterest-bearing Demand Time Noninterest-bearing Demand (DDA) MMDA IB Checking & Savings Time
$58 $186 $249 $319 Multifamily C&I Residential mortgage & other consumer CRE (ex. Multifamily) 15.1 15.3 15.4 15.5 15.9 5.1 5.0 5.0 5.0 5.0 15.7 15.9 16.1 16.4 16.5 16.5 17.0 16.8 17.4 17.8 $52.4 $53.2 $53.3 $54.3 $55.2 3Q24 4Q24 1Q25 2Q25 3Q25 Loans 5 Steady, balanced growth, with 8% Y-o-Y growth in average C&I balances ($ in billions) Average Loans End of Period Loan Growth by Category (2Q25 to 3Q25) ($ in millions) +6% +5% +8% Y-o-Y +5% -3% C&I CRE (ex. Multifamily)Residential mortgage & other consumer Multifamily Q-o-Q +1% +2% +1% +1% +2%
▪ Continued low-cost deposit growth drove record reported NII ▪ Reported NII includes $32mm of certain discount accretion and interest recoveries. Excluding this amount, adjusted Q3 NII of $645mm was still an all-time quarterly record for East West Net Interest Income (NII) & Net Interest Margin (NIM) Net Interest Income & Net Interest Margin 6 Record net interest income driven by continued momentum in deposit growth ($ in millions) Highlights End of Period Interest-Bearing Deposit Cost $573 $588 $600 $617 $645 $678 3.24% 3.24% 3.35% 3.35% 3.36% 3.53% $500 $520 $540 $560 $580 $600 $620 $640 $660 $680 $700 3Q24 4Q24 1Q25 2Q25 3Q25 Adj. Reported 3Q25 NII NIM Adjusted NII and NIM(1) (1) See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s earnings press releases 3.92% 3.73% 3.43% 3.30% 3.25% 3.15% -77bps
Fee Income1 Fee Income 7 Sustained execution supported Q-o-Q growth across all categories ($ in millions) (1) Fee income excludes mark-to-market adjustments related to customer and other derivatives; net gains on AFS debt securities; other investment income and other income Highlights Wealth Management Fees Customer Derivative Income +4% +36% +71% Y-o-Y +13% +6% +7% Commercial and Consumer Deposit-Related Fees Lending and Loan Servicing Fees Foreign Exchange Income ▪ Record fee income1 of $92mm, up nearly $11mm or +14% from $81mm Q-o-Q − Further growth in wealth management, customer derivatives, lending fees, and foreign exchange income up by a combined ~$10mm, all reflecting higher customer activity − Commercial and consumer deposit- related fees up $1mm+ Q-o-Q, reflecting higher treasury management and service-related fee income 26 25 26 25 28 27 26 27 27 28 4 4 5 4 6 13 16 16 14 15 11 10 14 11 15$81 $81 $88 $81 $92 3Q24 4Q24 1Q25 2Q25 3Q25
Total Operating Noninterest Expense1 Operating Expense & Efficiency 8 Maintaining best-in-class efficiency ($ in millions) (1) Total noninterest expense excluding amortization of tax credit and CRA investments (2) See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s earnings press releases (3) Deposit-related expenses include deposit account expenses and deposit insurance premiums and regulatory assessments, including FDIC special deposit insurance assessment charges and reversals of $(3) million, $833 thousand and $(833) thousand and $(2) million for 4Q24, 1Q25, 2Q25, and 3Q25 respectively Highlights Efficiency Ratio and Operating Noninterest Expense/Average Assets Ratio1 Compensation and Employee Benefits Computer and Software Related Expenses, All Other Occupancy and Equipment Deposit-Related Expenses3 -% +10% +30% -18% ▪ Total operating noninterest expense1 of $261mm − Includes $27 million of compensation expense from a change in equity award recognition for retirement eligible employees Y-o-Y +19% 36.4% 36.4% 33.8% 35.6% 1.27% 1.20% 1.31% 1Q25 2Q25 3Q25 Adj. Reported 3Q25 Efficiency Ratio 17 16 16 16 17 17 21 17 19 19 17 17 46 58 55 50 51 51 136 140 146 145 149 176 $220 $231 $236 $230 $234 $261 3Q24 4Q24 1Q25 2Q25 3Q25 Adj. Reported 3Q25 Adjusted Compensation and Employee Benefits Expense2 Adjusted Efficiency Ratio2 Op. Noninterest Expense / Avg. Assets1
75 86 76 72 70 52 54 67 58 57 19 19 10 9 30 49 35 29 33 44 $195 $194 $182 $172 $201 09.30.24 12.31.24 03.31.25 06.30.25 09.30.25 OREO and Other CRE Resi. mortgage & consumer C&I 2.67% 3.76% 1.81% 0.65% 2.05% 4.28% 1.16% 0.54% 2.47% 4.06% 0.31% 0.49% C&I CRE (ex. Multifamily) Multifamily Resi mortgage & consumer $42 $70 $49 $45 $36 $29 $64 $15 $15 $18 $- $10 $20 $30 $40 $50 $60 $70 $80 3Q24 4Q24 1Q25 2Q25 3Q25 Provision for credit losses Net charge- offs 1.20% 1.35% 1.38% 1.34% 1.38% 0.88% 0.83% 0.91% 0.81% 0.76% 2.08% 2.18% 2.29% 2.15% 2.14% 09.30.24 12.31.24 03.31.25 06.30.25 09.30.25 Classified loans / Loans HFI Special mention loans / Loans HFI Asset Quality Metrics 9 Resilient credit – measures holding at low absolute levels Provision for Credit Losses & Net Charge-offs ($ in millions) Nonperforming Assets Criticized Loans / Loans HFI Criticized Ratio by Loans HFI Portfolio ($ in millions) NPA / Total assets 0.26% 0.26% 0.24% 0.22% 0.25%NCO ratio (ann.) 0.22% 0.48% 0.12% 0.11% 0.13%
$696 $702 $735 $760 $791 1.31% 1.31% 1.35% 1.38% 1.42% 1.23% 1.33% 1.43% 1.53% 1.63% $600 $650 $700 $750 $800 09.30.24 12.31.24 03.31.25 06.30.25 09.30.25 ALLL ALLL/Loans HFI Allowance for Loan Losses 10 Bolstered reserves by $30 million quarter-over-quarter, reflecting changes in our economic outlook Highlights ▪ Bolstered ALLL in light of changes to the economic outlook ‒ Increased reserves by $30mm, driven primarily by changes in the impact of the economic forecast ‒ Increased reserves for residential mortgage and commercial real estate to capture potential effects of business cycle Allowance for Loan Losses (ALLL) ($ in millions) Composition of ALLL by Portfolio ($ in millions) 09.30.24 06.30.25 09.30.25 Loan category ALLL ALLL ratio ALLL ALLL ratio ALLL ALLL ratio C&I $ 378 2.22% $ 442 2.48% $ 442 2.45% Total CRE (incl. MFR) 265 1.30 259 1.26 281 1.33 MFR 32 0.62 29 0.58 35 0.70 Office 66 3.11 60 2.78 64 2.93 All Other CRE 167 1.27 170 1.26 182 1.31 Resi mortgage & consumer 53 0.34 59 0.36 68 0.41 Total $ 696 1.31% $ 760 1.38% $ 791 1.42%
15.4% 15.6% 15.6% 15.8% 16.1% Total Capital Ratio 14.1% 14.3% 14.3% 14.5% 14.8% CET1 Ratio 10.4% 10.4% 10.5% 10.6% 10.7% Leverage Ratio 9.7% 9.6% 9.9% 10.0% 10.2% Tangible Common Equity Ratio 12.31.24 Capital 11 Position of significant strength Highlights 09.30.24 06.30.2503.31.25 ▪ Declared 4Q25 dividend of $0.60 ‒ Payable on November 17, 2025 to shareholders of record on November 3, 2025 ▪ Repurchased $25mm shares in 3Q25 ‒ Grew both book value, tangible book value1 5% Q-o-Q ▪ Capacity for ongoing repurchases ‒ $216 million of East West’s share repurchase authorization remains available; we remain opportunistic Regulatory well capitalized requirement Tangible Common Equity Ratio1 Regulatory Capital Ratios2 6.5% 5.0% 10.0% 09.30.253 (1) See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s earnings press release (2) The Company applied the 2020 Current Expected Credit Losses (“CECL”) transition provision in the December 31, 2024 and September 30, 2024 regulatory capital ratio calculations. The CECL transition provision permitted certain banking organizations to exclude from regulatory capital the initial adoption impact of CECL, plus 25% of the cumulative changes in the allowance for credit losses under CECL for each period until December 31, 2021, followed by a three-year phase-out period in which the aggregate benefit was reduced by 25% in 2022, 50% in 2023 and 75% in 2024. The CECL transition was no longer in effect as of January 1, 2025. (3) The Company’s September 30, 2025 regulatory capital ratios and Risk-Weighted Assets (RWA) are preliminary
Updated Management Outlook: Full Year 2025 12(1) Total noninterest expense excluding amortization of tax credit and CRA investments Earnings Drivers FY 2025 Expectations vs. FY 2024 Results Interest Rate Outlook ▪ Assumes September 30th forward curve End of Period Loans ▪ Growing in the range of 4% to 6% Y-o-Y Net Interest Income Total Revenue ▪ Trending above 10% ▪ Trending above 10% Total Operating Noninterest Expense(1) ▪ Growing in the range of 7% to 9% Y-o-Y Net Charge-offs ▪ In the range of 10bps to 20bps Tax Items ▪ Effective tax rate of ~23% ▪ Amortization of tax credit and CRA investment expense in the range of $70 to $80 million Best-in-Class Efficiency Top Quartile Returns FY 2025 Expectation
Appendix
East West at a Glance 14 (1) See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s earnings press release ~$15B Market Cap $80B Assets $67B Deposits 18% ROTCE1 09.30.25 09.30.25 09.30.25 3Q25 ▪ Headquartered in Pasadena, California ▪ Over 25 years on Nasdaq ▪ Founded in 1973 - over 50 years in operation Roots in the U.S. Asian-American immigrant community, expanded to bridge businesses across the Pacific Award-winning Company #1 Top Performing Bank in 2025, $50+ Billion (Bank Director), marking our 3rd consecutive year Top 3 Performing Banks in 2025, $50+ Billion (American Banker) A Leading Regional Bank with Cross-Border Capabilities... …Well Positioned in Dense, Attractive Markets… TX NY NV CA WA MA GA Key Markets IL
1% 2% 2% 4% 4% 8% 8% 9% 2% 2% 2% 2% 4% 4% 4% 6% Resi. Mortgage and other consumer $16.7 30% CRE $21.1 38% C&I $18.0 32% (as % of Total Loans, 09.30.25) Commercial Loans by Type Diversified Loan Portfolio 15 70% of loans support commercial customers, with broad diversification across industry and asset types (1) Industries with 1% of total loans outstanding: Art Finance, Equipment Finance, Healthcare Services, Hospitality & Leisure, Oil & Gas, Tech & Telecom Industries with 1% of total loans outstanding1 CRE $21.1bn C&I $18.0bn Total Loan Portfolio $55.8bn Media & Entertainment Capital Call Lending Real Estate Investment & Mgmt. Infrastructure & Clean Energy General Industrial Multifamily Retail Hotel Office All other CRE Healthcare Construction and Land Manufacturing and Wholesale Financial Services Food Production and Distribution
<=50% 50% >50% to 55% 15% >55% to 60% 15% >60% to 65% 12% >65% to 70% 5% >70% 3% Commercial Real Estate Portfolio Detail 16 Our CRE portfolio is granular - many loans have full recourse and personal guarantees 49% Average LTV1 Distribution by Loan-to-Value (LTV)1 Size and LTV by Property Type (as of 09.30.25) (as of 09.30.25) ▪ Fewer than 25% of CRE loans have an LTV over 60% Total Portfolio Size ($bn) Weighted Avg. LTV1 (%) Average Loan Size ($mm) Multifamily $5.0 50% $2 Retail 4.5 47 3 Industrial 4.2 46 4 Hotel 2.5 51 9 Office 2.2 52 4 Healthcare 0.8 51 4 Other 1.1 49 4 Construction & Land2 0.8 50 15 Total CRE $21.1 49% $3 (1) Weighted average LTV is based on most recent LTV, using most recent available appraisal and current loan commitment (2) Construction & Land average size based on total commitment
38% 6% 11% 8% 6% 3% 4% 4% 3% 6% 8% CRE Office – Additional Information 17 Our office portfolio has low LTVs across segments and low average loan sizes CRE Office: Geographic Mix by Metro Area CRE Office by Size Segment (as of 09.30.25) (as of 09.30.25) Loan Size Balance ($ in mm) No. of Loans Avg. Loan Size ($ in mm) Weighted Avg. LTV (%) >$30mm $352 9 $39 55% $20mm - $30mm 395 16 25 58 $10mm - $20mm 484 34 14 55 $5mm - $10mm 414 57 7 52 <$5mm 545 404 1 44 Total $2,190 520 $4 52% Other Los Angeles County Other SoCal Other Bay Area San Francisco Other CA, 1% Houston Dallas Manhattan, 1% Other TX Washington Other Regions New Jersey Other NY, 1% Downtown Los Angeles and Adjacent Neighborhoods
30% 3% 19% 9% 2% 4% 6% 3% 4% 3% 12% CRE Retail – Additional Information 18 Our retail portfolio has a weighted average LTV profile of 47% CRE Retail: Geographic Mix by Metro Area CRE Retail by Size Segment (as of 09.30.25) (as of 09.30.25) Loan Size Balance ($ in mm) No. of Loans Avg. Loan Size ($ in mm) Weighted Avg. LTV (%) >$30mm $267 7 $38 41% $20mm - $30mm 507 20 25 58 $10mm - $20mm 824 61 14 48 $5mm - $10mm 772 113 7 47 <$5mm 2,104 1,519 1 44 Total $4,474 1,720 $3 47% Other Los Angeles County Downtown Los Angeles and Adjacent Neighborhoods Other SoCalOther Bay Area San Francisco Other CA Houston Dallas, 2% Manhattan Other TX, 2% Washington Other Regions Other NY New Jersey, 1%
31% 3% 13% 8% 5% 6% 7% 3% 2% 3% 3% 4% 3% 6% Oklahoma CRE Multifamily – Additional Information 19 Our multifamily portfolio is amongst our most granular CRE Multifamily: Geographic Mix by Metro Area CRE Multifamily by Size Segment (as of 09.30.25) (as of 09.30.25) Loan Size Balance ($ in mm) No. of Loans Avg. Loan Size ($ in mm) Weighted Avg. LTV (%) >$30mm $694 18 $39 59% $20mm - $30mm 670 28 24 55 $10mm - $20mm 585 43 14 53 $5mm - $10mm 687 98 7 53 <$5mm 2,402 2,612 1 45 Total $5,038 2,799 $2 50% Other Los Angeles County Downtown Los Angeles and Adjacent Neighborhoods Other SoCal Other Bay Area San Francisco Other CA Houston Dallas Arizona Nevada Other Regions Washington Manhattan, 2% Other NY Other Texas, 1%
<=50% 51% >50% to 55% 12% >55% to 60% 25% >60% 12% Southern California 42% Northern California 16% New York 24% Washington 6% Texas 3% Other 9% Residential Mortgage Portfolio 20 Our residential mortgage portfolio benefits from both low LTVs and smaller average loan size Resi. Mortgage Distribution by LTV1 Portfolio Highlights as of 09.30.25 (as of 09.30.25) Outstandings ▪ $16.7bn loans outstanding ▪ +2% Q-o-Q and +6% Y-o-Y Originations ▪ $0.9bn in 3Q25 ▪ Primarily originated through East West Bank branches Single-family Residential ▪ $14.8bn loans outstanding ▪ +2% Q-o-Q and +6% Y-o-Y HELOC ▪ $1.9bn loans outstanding ▪ $3.6bn in undisbursed commitments ▪ 34% utilization, unchanged from 06.30.25 ▪ 76% of commitments in first lien position Resi. Mortgage Distribution by Geography3 50% Average LTV1 $439,000 Average loan size2 (as of 09.30.25) (1) Combined LTV for 1st and 2nd liens; based on commitment (2) Average loan size based on loan outstanding for single-family residential and commitment for HELOC (3) Geographic distribution based on commitment size
$12.3 $13.8 $14.7 $15.4 $15.5 $5.4 $5.0 $4.5 $4.1 $5.3 $17.7 $18.8 $19.2 $19.5 $20.8 4.03% 3.98% 4.08% 4.02% 4.05% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 6.50% 7.00% $(3.0) $2.0 $7.0 $12.0 $17.0 $22.0 3Q24 4Q24 1Q25 2Q25 3Q25 Total Securities Cash, Equivalent & Resale Agreements Total Securities Average Yield $0.5 $0.1 $4.3 $10.7 100% RWA 50% RWA 20% RWA 0% RWA Average Total Securities Portfolio and Cash Cash and Securities 21 Incrementally bolstered on balance sheet liquidity with cash and high-quality liquid assets (HQLA) ($ in billions) ▪ Securities portfolio well-positioned as a source of liquidity, interest rate risk management, and earnings support − Total securities average yield up 3bps Q-o-Q − 96% of investment portfolio 0% - 20% risk-weighted (HQLA) − 60% fixed-rate securities, 40% floating Highlights Securities Portfolio Composition by Risk-Weighted Asset (RWA) Distribution ($ in billions, as of 09.30.25) $15.6bn Securities Portfolio
5.86% 5.86% 5.94% 5.93% 5.90% 6.44% 6.22% 6.20% 6.24% 6.23% 20% 22% 31% 27% Fixed rate Hybrid in fixed rate period Variable - SOFR Variable - Prime, all other rates Loan Yields 22 Loan Portfolio by Index Rate (as of 09.30.25) Average C&I Loan Rate Average Residential Mortgage Loan Rate Average CRE Loan Rate 91% variable rate 57%* variable rate *52% had customer-level interest rate derivative contracts SFR: 46% hybrid in fixed-rate period & 39% fixed rate 10.07.25 rate sheet price for 30-year fixed: 6.375% Total fixed rate and hybrid in fixed period: 42% 3Q24 4Q24 1Q25 2Q25 3Q25 7.93% 7.42% 7.06% 7.02% 7.71% 3Q24 4Q24 1Q25 2Q25 3Q25
4.55% 4.31% 3.93% 3.79% 3.71% Time 3.82% 3.32% 3.17% 3.25% 3.21% Money Market 2.98% 2.82% 2.51% 2.48% 2.47% Interest-bearing Checking 2.98% 2.75% 2.54% 2.52% 2.49% 3.93% 3.63% 3.34% 3.31% 3.26% 4.05% 3.71% 3.43% 3.39% 3.34% 3Q24 4Q24 1Q25 2Q25 3Q25 Average cost of deposits Average cost of interest-bearing deposits Average cost of interest-bearing liabilities Average Deposit and Liability Cost Deposit and Funding Cost 23 Average Deposit Rate by Portfolio 3Q24 4Q24 1Q25 2Q25 3Q25
Appendix: GAAP to Non-GAAP Reconciliation 24 EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Management believes that presenting the adjusted net interest margin that excludes the impact of discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans provide clarity to financial statement users regarding the changes in margins and allows comparability to prior periods. Three Months Ended Nine Months Ended September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net interest margin Net interest income (a) $ 677,530 $ 617,074 $ 572,722 $ 1,894,805 $ 1,691,090 Less: Loan payoff discount accretion and interest recoveries (32,296) - - (32,296) - Adjusted net interest income (b) $645,234 $ 617,074 $ 572,722 $ 1,862,509 $ 1,691,090 Average interest-earning assets (c) $ 76,206,138 $ 73,903,125 $ 70,263,495 $ 74,288,924 $ 68,902,563 Net interest margin1 (a)/(c) 3.53% 3.35% 3.24% 3.41% 3.28% Adjusted net interest margin1 (b)/(c) 3.36% 3.35% 3.24% 3.35% 3.28% (1) Annualized.
Appendix: GAAP to Non-GAAP Reconciliation 25 EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Adjusted net income and adjusted diluted EPS represent net income and diluted EPS adjusted for the following tax-effected impacts: discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans, change in equity award expense recognition for retirement eligible employees, FDIC special assessment and DC Solar adjustments; and the impact of the CA SSF. Management believes that presenting the computations of the adjusted net income, adjusted diluted EPS, adjusted return on average assets and adjusted return on average common equity that exclude the aforementioned tax- effected adjustments and the impact of the CA SSF provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods. • Discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans are included in Interest and dividend income on the Condensed Consolidated Statement of Income. • During the third quarter and first nine months of 2025, the Company recorded $27 million of additional compensation due to the change in equity award expense recognition for retirement eligible employees lll(included in Compensation and employee benefits on the Condensed Consolidated Statement of Income). • FDIC special assessment reversals/charges are included in Deposit insurance premiums and regulatory assessments on the Condensed Consolidated Statement of Income. • DC Solar recoveries related to the Company’s investment in DC Solar are included in Amortization of Tax Credit and CRA Investments on the Condensed Consolidated Statement of Income. (1) Applied statutory tax rate of 28.18% for the three and nine months ended September 30, 2025, and the three months ended June 30, 2025. Applied statutory tax rate of 29.56% for the three and nine months ended September 30, 2024. Three Months Ended Nine Months Ended September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net income (a) $ 368,394 $ 310,253 $ 299,166 $ 968,917 $ 872,471 Less: Loan payoff discount accretion and interest recoveries (b) (32,296) - - (32,296) - Add: Change in equity award expense recognition for retirement eligible employees (b) 27,141 - - 27,141 - Less/Add: FDIC special assessment (reversal) charge (b) (1,927) (833) - (1,927) 12,185 Less: DC Solar recovery (b) - - (11,201) - (14,347) Tax effects adjustments1 (b) 1,996 235 3,311 1,996 639 Add: Impact of the CA SSF (b) - 6,391 - 6,391 - Adjusted net income (c)=(a)+∑(b) $ 363,308 $ 316,046 $ 291,276 $ 970,222 $ 870,948 Diluted weighted-average number of shares outstanding (d) 138,942 138,789 139,648 139,090 139,939 Diluted EPS (e) $ 2.65 $ 2.24 $ 2.14 $ 6.97 $ 6.23 Less: Loan payoff discount accretion and interest recoveries (f) (0.23) - - (0.23) - Add: Change in equity award expense recognition for retirement eligible employees (f) 0.20 - - 0.20 - Less/Add: FDIC special assessment (reversal) charge (f) (0.01) (0.01) - (0.01) 0.09 Less: DC Solar recovery (f) - - (0.08) - (0.10) Tax effects of adjustments1 (f) 0.01 - 0.03 0.01 - Add: impact of the CA SSF (f) - 0.05 - 0.05 - Adjusted diluted EPS (g)=(e)+∑(f) $ 2.62 $ 2.28 $ 2.09 $ 6.99 $ 6.22
Appendix: GAAP to Non-GAAP Reconciliation (Continued from Slide 25) 26 EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) (1) Annualized. Three Months Ended Nine Months Ended September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Average total assets (h) $ 79,310,698 $ 76,862,028 $ 73,268,158 $ 77,279,375 $ 72,049,714 Average stockholders' equity (i) $ 8,381,214 $ 8,069,982 $ 7,443,333 $ 8,108,615 $ 7,175,445 Return on average assets (a)/(h) 1.84% 1.62% 1.62% 1.68% 1.62% Adjusted return on average assets1 (c)/(h) 1.82% 1.65% 1.58% 1.68% 1.61% Return on average common equity1 (a)/(i) 17.44% 15.42% 15.99% 15.98% 16.24% Adjusted return on average common equity1 (c)/(i) 17.20% 15.71% 15.57% 16.00% 16.21%
Appendix: GAAP to Non-GAAP Reconciliation 27 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. Non- GAAP measures used consist of FTE net interest income and total revenue. The FTE adjustment relates to tax exempt interest on certain investment securities and loans. Adjusted total revenue and adjusted total revenue (FTE) reflect the adjustments related to the discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans. Adjusted noninterest expense reflects the change in equity award expense recognition for retirement eligible employees, and the FDIC special assessment and DC Solar adjustments (as applicable). Efficiency ratio (FTE) represents noninterest expense divided by total revenue (FTE). Adjusted efficiency ratio and adjusted efficiency ratio (FTE) reflect the impacts of the aforementioned adjustments. Pre-tax, pre- provision income represents total revenue (FTE) less noninterest expense. Adjusted pre-tax, pre-provision income represents adjusted total revenue (FTE) less adjusted noninterest expense. Three Months Ended Nine Months Ended September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net interest income before provision for credit losses (a) $ 677,530 $ 617,074 $ 572,722 $ 1,894,805 $ 1,691,090 FTE adjustment (b) 1,887 1,603 411 4,636 3,491 FTE net interest income before provision for credit losses (c)=(a)+(b) 679,417 618,677 573,133 1,899,441 1,694,581 Total noninterest income (d) 100,517 86,178 84,395 278,797 247,053 Total revenue (e)=(a)+(d) 778,047 703,252 657,117 2,173,602 1,938,143 Total revenue (FTE) (f)=(c)+(d) $ 779,934 $ 704,855 $ 657,528 $ 2,178,238 $ 1,941,634 Less: Loan payoff discount accretion and interest recoveries (g) (32,296) - - (32,296) - Adjusted total revenue (h)=(e)+(g) 745,751 703,252 657,117 2,141,306 1,938,143 Adjusted total revenue (FTE) (i)=(f)+(g) $ 747,638 $ 704,855 $ 657,528 $ 2,145,942 $ 1,941,634 Total noninterest expense (j) $ 276,923 $ 256,020 $ 225,800 $ 785,091 $ 708,106 Less: Change in equity award expense recognition for retirement eligible employees (k) (27,141) - - (27,141) - Add/less: FDIC special assessment reversal (charge) (k) 1,927 833 - 1,927 (12,185) Less: DC Solar recovery (k) - - 11,201 - 14,347 Adjusted noninterest expense (l)=(j)+∑(k) $ 251,709 $ 256,853 $ 237,001 $ 759,877 $ 710,268 Efficiency ratio (j)/(e) 35.59% 36.41% 34.36% 36.12% 36.54% Adjusted efficiency ratio (l)/(h) 33.75% 36.52% 36.07% 35.49% 36.65% Efficiency ratio (FTE) (j)/(f) 35.51% 36.32% 34.34% 36.04% 36.47% Adjusted efficiency ratio (FTE) (l)/(i) 33.67% 36.44% 36.04% 35.41% 36.58% Pre-tax, pre-provision income (f)-(j) $ 503,011 $ 448,835 $ 431,728 $ 1,393,147 $ 1,233,528 Adjusted pre-tax, pre-provision income (i)-(l) $ 495,929 $ 448,002 $ 420,527 $ 1,386,065 $ 1,231,366
Appendix: GAAP to Non-GAAP Reconciliation 28 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 book value, tangible book value per share and TCE ratio are non- GAAP financial measures. Tangible book value and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and mortgage servicing assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and are used by banking regulators and analysts, the Company has included them below for discussion. September 30, 2025 June 30, 2025 September 30, 2024 Common stock $ 170 $ 170 $ 170 Additional paid-in capital 2,096,227 2,060,115 2,018,105 Retained earnings 8,028,882 7,744,221 7,095,587 Treasury stock (1,166,922) (1,140,359) (1,012,019) Accumulated other comprehensive income: AFS debt securities net unrealized losses (383,621) (466,568) (456,493) Cash flow hedges net unrealized gains (losses) 30,425 28,622 39,143 Foreign currency translation adjustments (22,361) (24,434) (19,954) Total accumulated other comprehensive loss (375,557) (462,380) (437,304) Stockholders' equity (a) $ 8,582,800 $ 8,201,767 $ 7,664,539 Less: Goodwill (465,697) (465,697) (465,697) Mortgage servicing assets (4,362) (4,628) (5,563) Tangible book value (b) $ 8,112,741 $ 7,731,442 $ 7,193,279 Number of common shares at period-end (c) 137,568 137,816 138,609 Book value per share (a)/(c) $ 62.39 $ 59.51 $ 55.30 Tangible book value per share (b)/(c) $ 58.97 $ 56.10 $ 51.90 Total assets (d) $ 79,669,531 $ 78,158,067 $ 74,483,720 Less: Goodwill (465,697) (465,697) (465,697) Mortgage servicing assets (4,362) (4,628) (5,563) Tangible assets (e) $ 79,199,472 $ 77,687,742 $ 74,012,460 Total stockholders' equity to assets ratio (a)/(d) 10.77% 10.49% 10.29% TCE ratio (b)/(e) 10.24% 9.95% 9.72%
Appendix: GAAP to Non-GAAP Reconciliation 29 EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Return on average TCE represents tangible net income divided by average tangible book value. Tangible net income excludes the after-tax impacts of the amortization of mortgage servicing assets. Adjusted return on average TCE represents adjusted tangible net income divided by average tangible book value. Adjusted tangible net income is tangible net income excluding the following tax-effected impacts: discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans, change in equity award expense recognition for retirement eligible employees, FDIC special assessment and DC Solar adjustments, and the impact of the CA SSF. Given that the use of such measures and ratios is more prevalent in the banking industry, and are used by banking regulators and analysts, the Company has included them below for discussion. Three Months Ended Nine Months Ended September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net income (a) $ 368,394 $ 310,253 $ 299,166 $ 968,917 $ 872,471 Add: Amortization of mortgage servicing assets 266 316 348 875 988 Tax effect of amortization adjustment1 (75) (89) (103) (247) (292) Tangible net income (b) $ 368,585 $ 310,480 $ 299,411 $ 969,545 $ 873,167 Less: Loan payoff discount accretion and interest recoveries (32,296) - - (32,296) - Add: Change in equity award expense recognition for retirement eligible employees 27,141 - - 27,141 - Less/Add: FDIC special assessment (reversal) charge (1,927) (833) - (1,927) 12,185 Less: DC Solar recovery - - (11,201) - (14,347) Tax effects of adjustments1 1,996 235 3,311 1,996 639 Add: Impact of the CA SSF - 6,391 - 6,391 - Adjusted tangible net income (c) $ 363,499 $ 316,273 $ 291,521 $ 970,850 $ 871,644 Average stockholders' equity (d) $ 8,381,214 $ 8,069,982 $ 7,443,333 $ 8,108,615 $ 7,175,445 Less: Average goodwill (465,697) (465,697) (465,697) (465,697) (465,697) Average mortgage servicing assets (4,534) (4,825) (5,790) (4,824) (6,123) Average tangible book value (e) $ 7,910,983 $ 7,599,460 $ 6,971,846 $ 7,638,094 $ 6,703,625 Return on average common equity2 (a)/(d) 17.44% 15.42% 15.99% 15.98% 16.24% Return on average TCE2 (b)/(e) 18.48% 16.39% 17.08% 16.97% 17.40% Adjusted return on average TCE2 (c)/(e) 18.23% 16.69% 16.63% 16.99% 17.37% (1) Applied statutory tax rate of 28.18% for the three and nine months ended September 30, 2025, and the three months ended June 30, 2025. Applied statutory tax rate of 29.56% for the three and nine months ended September 30, 2024. (2) Annualized.