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8-K

East West Bancorp Inc (EWBC)

8-K 2020-04-23 For: 2020-04-23
View Original
Added on April 12, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

April 23, 2020

EAST WEST BANCORP, INC.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)

000-24939

(Commission File Number)

95-4703316

(IRS Employer Identification No.)

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

(Address of principal executive offices) (Zip code)

(626) 768-6000

(Registrant’s telephone number, including area code)

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

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

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

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

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

Emerging growth company ☐

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

1

Item 2.02. Results of Operations and Financial Condition

On April 23, 2020, East West Bancorp, Inc. (the “Company”) announced, via press release, its financial results for the quarter ended March 31, 2020 (the “Press Release”). The Press Release is available on the Company’s website. The Press Release is “furnished” as Exhibit 99.1 to this Current Report on Form 8-K pursuant to General Instruction B.2 of Form 8-K and the information provided in Item 2.02 of this report, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities under that Section. The information provided in Item 2.02 of this report, including Exhibit 99.1, shall not be deemed incorporated by reference into any filings the Company has made or may make under the Securities Act of 1933 (the “Securities Act”) or the Exchange Act, except as otherwise expressly stated in such filing.

Item 7.01. Regulation FD Disclosure

On April 23, 2020, the Company will hold a conference call to discuss its financial results for the quarter ended March 31, 2020, including the Press Release and other matters relating to the Company. The Company has also made available on its website presentation materials containing certain historical and forward-looking information relating to the Company (the “Presentation Materials”). The Presentation Materials are furnished as Exhibit 99.2 and are incorporated by reference in this Item 7.01. All information in Exhibit 99.2 is presented as of the particular date or dates referenced therein, and the Company does not undertake any obligation to, and disclaims any duty to, update any of the information provided. The information provided in Item 7.01 of this report, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that Section, nor shall the information or Exhibit 99.2 be deemed incorporated by reference in any filings the Company has made or may make under the Exchange Act or the Securities Act, except as otherwise expressly stated in such filing.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

99.1 Press Release, dated April 23, 2020.
99.2 Presentation Materials, dated April 23, 2020.
104 Cover Page Interactive Data (formatted as Inline XBRL). Filed herewith.

2

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: April 23, 2020 By: /s/ Irene H. Oh
Irene H. Oh
Executive Vice President and Chief Financial Officer

3

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

EAST WEST BANCORP REPORTS NET INCOME FOR FIRST QUARTER 2020

OF $145 MILLION AND DILUTED EARNINGS PER SHARE OF $1.00

Pasadena, California — April 23, 2020 — East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, the financial bridge between the United States and Greater China, today reported its financial results for the first quarter of 2020. For the first quarter of 2020, net income was $144.8 million or $1.00 per diluted share. First quarter 2020 return on average assets was 1.30% and return on average equity was 11.6%.

“In these unprecedented times, East West Bank has a clear focus - to support our customers and communities by being a source of strength and stability. We have taken actions to ensure the safety and well-being of our customers and associates, especially those on the front-line, by modifying working arrangements and protocols. Despite the many challenges and the volatile economic and market conditions resulting from the worldwide efforts to combat COVID-19, all of our 3,200 associates at East West stand ready and able to help our commercial and consumer customers,” stated Dominic Ng, Chairman and Chief Executive Officer of East West. "I want to thank all of our associates for their dedication and perseverance through this difficult time.”

“East West’s sustained history of strong profitability and earnings has well positioned us for the current economic conditions. Our balance sheet is strong, our loans and deposits are diversified, and most importantly, our capital is strong. East West has some of the highest capital ratios among regional and national banks. Further, we strengthened the allowance for credit losses to 1.55% during the first quarter, to reflect the recent economic and market impact from COVID-19.”

“Total loans grew $1.1 billion, or 13% annualized, to a record $35.9 billion as of March 31, 2020 from $34.8 billion as of December 31, 2019. Total deposits grew $1.4 billion, or 15% annualized, to a record $38.7 billion as of March 31, 2020 from $37.3 billion as of December 31, 2019,” continued Ng. “Despite the stay-at-home orders issued in March, business at East West was strong in the first quarter.”

“As we start the second quarter of 2020, we are encouraged by the expansive monetary and fiscal support from the government. We are committed to the ongoing support of our customers and their businesses by participating in the new government-sponsored programs. We funded over $1.5 billion of loans for over 4,500 businesses through the federal government’s Paycheck Protection Program,” concluded Ng.

1

SUMMARY OF THE QUARTER

• First Quarter Earnings — First quarter 2020 net income was $144.8 million and diluted earnings per share (“EPS”) were $1.00, compared to fourth quarter 2019 net income of $188.2 million and diluted EPS of $1.29.
• Net Interest Income and Net Interest Margin — First quarter 2020 net interest income (“NII”) was $362.7 million, a decrease of $5.5 million or 1% from fourth quarter 2019 NII of $368.2 million.
--- ---

First quarter 2020 net interest margin (“NIM”) was 3.44%, a three basis point decrease from 3.47% in the fourth quarter of 2019. Against a backdrop of materially lower interest rates during the first quarter, declines in earning asset yields were largely offset by decreases in the cost of funds.

• Record Loans — Total loans of $35.9 billion as of March 31, 2020 increased by $1.1 billion, or 13% annualized, from $34.8 billion as of December 31, 2019.

First quarter 2020 average loans of $35.2 billion grew $744.0 million, or 9% linked quarter annualized. Average loan growth in the first quarter was led by commercial real estate, followed by residential mortgage, partially offset by a decrease in commercial loans.

• Record Deposits — Total deposits of $38.7 billion as of March 31, 2020 increased by $1.4 billion, or 15% annualized, from $37.3 billion as of December 31, 2019.

First quarter 2020 average deposits of $37.5 billion grew $64.5 million, or 1% linked quarter annualized. Average deposit growth in the first quarter was led by money market accounts, followed by noninterest-bearing demand and time deposits, partially offset by decreases in interest-bearing checking and savings accounts.

• Asset Quality Metrics — The allowance for credit losses (“ACL”) totaled $557.0 million, or 1.55% of loans held-for-investment (“HFI”), as of March 31, 2020, compared to $358.3 million, or 1.03% of loans HFI, as of December 31, 2019. Quarter-over-quarter, the ACL increased by $198.7 million. The increase in the ACL included the $125.2 million impact from the adoption of the new current expected credit loss model (“CECL”) accounting standard on January 1, 2020, and a $73.9 million provision for credit losses for the first quarter of 2020, which reflects the deteriorating macroeconomic conditions and outlook as a result of the COVID-19 pandemic.

Our other asset quality metrics for the first quarter 2020 remained strong. First quarter 2020 net charge-offs were $0.9 million, or annualized 0.01% of average loans HFI, compared to fourth quarter 2019 net charge-offs of $8.3 million, or annualized 0.10% of average loans HFI. Nonperforming assets were $150.9 million, or 0.33% of total assets, as of March 31, 2020, compared to $121.5 million, or 0.27% of total assets, as of December 31, 2019.

• Capital Levels — Capital levels for East West are strong. As of March 31, 2020, stockholders’ equity was $4.9 billion, or $34.67 per share. Tangible equity^1^ per common share was $31.27 as of March 31, 2020, an increase from $31.15 as of December 31, 2019. As of March 31, 2020, the tangible equity to tangible assets ratio^1^ was 9.7%, the common equity tier 1 (“CET1”) capital ratio was 12.4%, and the total capital ratio was 14.0%. During the first quarter of 2020, the Company repurchased $145.9 million of common stock, or 4.5 million shares.
^1^  See reconciliation of GAAP to non-GAAP financial measures in Table 12.
---

2

OPERATING RESULTS

First Quarter 2020 Compared to Fourth Quarter 2019

Net Interest Income and Net Interest Margin

Net interest income totaled $362.7 million, a decrease of 1% from $368.2 million. Net interest margin of 3.44% decreased by three basis points from 3.47%. Against a backdrop of materially lower interest rates during the first quarter, declines in earning asset yields were largely offset by decreases in the cost of funds.

• Average interest-earning assets of $42.4 billion grew $248.4 million, or 2% linked quarter annualized. Average loan growth of $744 million, or 9% linked quarter annualized, was partially offset by decreases in available-for-sale debt securities, and in interest-bearing cash and deposits with banks.
• Average interest-bearing deposits of $26.4 billion decreased $76.9 million, or (1)% linked quarter annualized. Average noninterest-bearing deposits of $11.1 billion grew $141.3 million, or 5% linked quarter annualized.
--- ---
• The average loan yield contracted by 20 basis points to 4.71%, down from 4.91%, reflecting materially lower interest rates during the first quarter, including 150 basis points of cuts to the fed funds rate in March 2020. The yield on average interest-earning assets contracted by 14 basis points to 4.26%, down from 4.40%.
--- ---
• The average cost of interest-bearing deposits decreased by 17 basis points to 1.17%, down from 1.34%. The average cost of deposits decreased by 12 basis points to 0.82%, down from 0.94%.
--- ---

Noninterest Income

Noninterest income totaled $54.0 million, a 14% decrease from $63.0 million.

• The largest linked-quarter change in noninterest income was a $10.8 million decrease in interest rate contracts (“IRC”) and other derivative income, which was $7.1 million in the first quarter of 2020. This decrease was largely related to a negative credit valuation adjustment, as customer-driven IRC fee income was stable quarter-over-quarter.
• In other fee income categories, quarter-over-quarter, foreign exchange income of $7.8 million increased by $1.8 million; wealth management fees of $5.4 million increased by $1.1 million, and lending fees of $15.8 million decreased by $1.5 million.
--- ---

Noninterest Expense

Noninterest expense totaled $178.9 million, a 7% decrease from $193.4 million.

• First quarter noninterest expense consisted of $160.6 million of adjusted^2^ noninterest expense, $17.3 million in amortization of tax credit and other investments, and $1.0 million in amortization of core deposit intangibles.
• Adjusted noninterest expense of $160.6 million decreased by $4.7 million, or 3%, from $165.3 million. The largest linked-quarter change was a $3.4 million decrease in other operating expense, followed by a $1.9 million decrease in consulting expense and a $1.5 million decrease in computer software expense. Quarter-over-quarter, legal expense increased by $1.1 million, and compensation and employee benefits increased by $0.9 million.
--- ---
• The adjusted^2^ efficiency ratio was 38.5% in the first quarter, compared to 38.3% in the fourth quarter.
--- ---
^2^  See reconciliation of GAAP to non-GAAP financial measures in Table 11.
---

3

TAX RELATED ITEMS

First quarter 2020 income tax expense was $19.2 million and the effective tax rate was 12%, compared to income tax expense of $31.1 million and an effective tax rate of 14% for the fourth quarter of 2019.

ASSET QUALITY

The allowance for credit losses totaled $557.0 million, or 1.55% of loans HFI, as of March 31, 2020, compared to $358.3 million, or 1.03% of loans HFI, as of December 31, 2019. Quarter-over-quarter, the ACL increased by $198.7 million.

• The increase in the ACL included the impact of the adoption of the new CECL accounting standard, which resulted in an increase to the ACL of $125.2 million on January 1, 2020.
• First quarter 2020 provision for credit losses was $73.9 million, compared to $18.6 million for the fourth quarter of 2019, and $22.6 million for the first quarter of 2019. First quarter 2020 provision for credit losses was primarily driven by the deteriorating macroeconomic conditions and outlook as a result of the COVID-19 pandemic, which increased the ACL. As of March 31, 2020, the impact of the pandemic crisis was not yet evident in other asset quality metrics, which remained strong.
--- ---
• First quarter 2020 net charge-offs were $0.9 million, or annualized 0.01% of average loans HFI, compared to annualized 0.10% of average loans HFI for the fourth quarter of 2019, and annualized 0.18% of average loans HFI for the first quarter of 2019.
--- ---
• Nonperforming assets were $150.9 million, or 0.33% of total assets, as of March 31, 2020, compared to non-purchased credit impaired nonperforming assets of $121.5 million, or 0.27% of total assets, as of December 31, 2019, and $138.0 million, or 0.33% of total assets, as of March 31, 2019.
--- ---

CAPITAL STRENGTH

Capital levels for East West are strong. The following table presents the regulatory capital ratios as of March 31, 2020, December 31, 2019, and March 31, 2019.

EWBC Regulatory Capital Metrics Basel III
($ in millions) March 31,<br><br>2020 ^(a)^ December 31, <br>2019 March 31, <br>2019 Minimum<br>Capital<br>Ratio Well<br>Capitalized<br>Ratio Minimum<br>Capital Ratio +<br>Conservation Buffer ^(b)^
Risk-Based Capital Ratios:
CET 1 capital ratio 12.4 % 12.9 % 12.4 % 4.5 % 6.5 % 7.0 %
Tier 1 capital ratio 12.4 % 12.9 % 12.4 % 6.0 % 8.0 % 8.5 %
Total capital ratio 14.0 % 14.4 % 13.9 % 8.0 % 10.0 % 10.5 %
Leverage ratio 10.2 % 10.3 % 10.2 % 4.0 % 5.0 % 4.0 %
Risk-Weighted Assets (“RWA”) ^(c)^ $ 36,548 $ 35,136 $ 33,162 N/A N/A N/A

N/A Not applicable.

(a) The March 31, 2020 regulatory capital ratios and RWA are preliminary and reflect the Company’s election to adopt the 2020 CECL optional transition provision to delay the estimated impact of CECL on its regulatory capital over a five-year transition period ending December 31, 2024.
(b) An additional 2.5% capital conservation buffer above the minimum capital ratios is required in order to avoid limitations on distributions, including dividend payments and certain discretionary bonus payments to executive officers.
--- ---
(c) Under regulatory guidelines, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories based on the nature of the obligor, or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar value in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total RWA.
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4

DIVIDEND PAYOUT AND CAPITAL ACTIONS

East West’s Board of Directors has declared second quarter 2020 dividends for the Company’s common stock. The common stock cash dividend of $0.275 per share is payable on May 15, 2020 to shareholders of record on May 4, 2020.

On March 3, 2020, East West’s Board of Directors authorized the repurchase of up to $500 million of East West’s common stock. During the first quarter of 2020, the Company repurchased $145.9 million of common stock, or 4.5 million shares, under this authorization.

Conference Call

East West will host a conference call to discuss first quarter 2020 earnings with the public on Thursday, April 23, 2020 at 8:30 a.m. PT/11:30 a.m. ET. The public and investment community are invited to listen as management discusses first quarter 2020 results and operating developments.

• The following dial-in information is provided for participation in the conference call: calls within the U.S. — (877) 506-6399; calls within Canada — (855) 669-9657; international calls — (412) 902-6699.
• A presentation to accompany the earnings call will be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.
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• A listen-only live broadcast of the call will also be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.
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• A replay of the conference call will be available on April 23, 2020 at 11:30 a.m. Pacific Time through May 23, 2020. The replay numbers are: within the U.S. — (877) 344-7529; within Canada — (855) 669-9658; International calls — (412) 317-0088; and the replay access code is: 10140713.
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About East West

East West Bancorp, Inc. is a publicly owned company with total assets of $45.9 billion and is traded on the Nasdaq Global Select Market under the symbol “EWBC”. The Company’s wholly-owned subsidiary, East West Bank, is one of the largest independent banks headquartered in California. East West is a premier bank focused exclusively on the United States and Greater China markets and operates over 125 locations worldwide, including in the United States markets of California, Georgia, Massachusetts, Nevada, New York, Texas and Washington. In Greater China, East West’s presence includes full service branches in Hong Kong, Shanghai, Shantou and Shenzhen, and representative offices in Beijing, Chongqing, Guangzhou, and Xiamen. For more information on East West, visit the Company’s website at www.eastwestbank.com.

5

Forward-Looking Statements

Certain matters set forth herein (including any exhibits hereto) constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to our current business plans and expectations regarding future operating results. Forward-looking statements may include, but are not limited to, the use of forward-looking language, such as “likely result in,” “expects,” “anticipates,” “estimates,” “forecasts,” “projects,” “intends to,” “assumes,” or may include other similar words or phrases, such as “believes,” “plans,” “trend,” “objective,” “continues,” “remains,” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” “may,” “might,” “can,” or similar verbs, and the negative thereof. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to, the changes and effects thereof in trade, monetary and fiscal policies and laws, including the impact of disease pandemics, such as the novel strain of coronavirus disease (COVID-19), on us, our operations and our customers and employees; changes in the U.S. economy, including an economic slowdown or recession, inflation, deflation, employment levels, rate of growth and general business conditions; fluctuations in our stock price; government intervention in the financial system, including changes in government interest rate policies; changes in income tax laws and regulations; the ongoing trade dispute between the United States (“U.S.”) and the People’s Republic of China; our ability to compete effectively against other financial institutions in our banking markets; success and timing of our business strategies; our ability to retain key officers and employees; impact on our funding costs, net interest income and net interest margin due to changes in key variable market interest rates, competition, regulatory requirements and our product mix; changes in our costs of operation, compliance and expansion; our ability to adopt and successfully integrate new technologies into our business in a strategic manner; impact of benchmark interest rate reform in the U.S. that resulted in the Secured Overnight Financing Rate selected as the preferred alternative reference rate to the London Interbank Offered Rate; impact of failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business, including as a result of cyber attacks; and other similar matters which could result in, among other things, confidential and/or proprietary information being disclosed or misused; adequacy of our risk management framework, disclosure controls and procedures and internal control over financial reporting; future credit quality and performance, including our expectations regarding future credit losses and allowance levels; impact of adverse changes to our credit ratings from major credit rating agencies; impact of adverse judgments or settlements in litigation; changes in the commercial and consumer real estate markets; changes in consumer spending and savings habits; impact on our international operations due to political developments, disease pandemics, wars or other hostilities that may disrupt or increase volatility in securities or otherwise affect economic conditions; changes in laws or the regulatory environment including regulatory reform initiatives and policies of the U.S. Department of Treasury, the Board of Governors of the Federal Reserve Board System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the U.S. Securities and Exchange Commission, the Consumer Financial Protection Bureau and the California Department of Business Oversight — Division of Financial Institutions; impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on our business, business practices, cost of operations and executive compensation; heightened regulatory and governmental oversight and scrutiny of our business practices, including dealings with consumers; impact of reputational risk from negative publicity, fines and penalties and other negative consequences from regulatory violations and legal actions and from our interactions with business partners, counterparties, service providers and other third parties; impact of regulatory enforcement actions; changes in accounting standards as may be required by the Financial Accounting Standards Board or other regulatory agencies and their impact on critical accounting policies and assumptions; impact of other potential federal tax changes and spending cuts; our capital requirements and our ability to generate capital internally or raise capital on favorable terms; impact on our liquidity due to changes in our ability to receive dividends from our subsidiaries; any future strategic acquisitions or divestitures; continuing consolidation in the financial services industry; changes in the equity and debt securities markets; fluctuations in foreign currency exchange rates; a recurrence of significant turbulence or disruption in the capital or financial markets, which could result in, among other things, a reduction in the availability of funding or increases in funding costs, a reduction in investor demand for mortgage loans and declines in asset values and/or recognition of other-than-temporary impairment on securities held in our available- for-sale investment securities portfolio; impact of natural or man-made disasters or calamities, such as wildfires or conflicts or other events that may directly or indirectly result in a negative impact on our financial performance; and other factors set forth in our public reports including our Annual Report on Form 10-K for the year ended December 31, 2019, and particularly the discussion of risk factors within that document. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, our results could differ materially from those expressed in, implied or projected by such forward-looking statements. We assume no obligation to update or revise such forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

6

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
( and shares in thousands, except per share data)
(unaudited)
Table 1
March 31, 2020<br><br>% or Basis Point Change
March 31, 2020 December 31, 2019 March 31, 2019 Qtr-o-Qtr Yr-o-Yr
Assets
$ 427,415 $ 536,221 $ 462,254 (20.3 )% (7.5 )%
2,652,627 2,724,928 3,323,071 (2.7 ) (20.2 )
3,080,042 3,261,149 3,785,325 (5.6 ) (18.6 )
293,509 196,161 134,000 49.6 119.0
860,000 860,000 1,035,000 — (16.9 )
3,695,943 3,317,214 2,640,158 11.4 40.0
78,745 78,580 74,736 0.2 5.4
1,594 434 — 267.3 100.0
35,336,390 34,420,252 32,545,392 2.7 8.6
198,653 207,037 197,470 (4.0 ) 0.6
268,330 254,140 217,445 5.6 23.4
465,697 465,697 465,697 — —
101,381 99,973 104,289 1.4 (2.8 )
1,568,261 1,035,459 891,921 51.5 75.8
$ 45,948,545 $ 44,196,096 $ 42,091,433 4.0 % 9.2 %
Liabilities and Stockholders’ Equity
$ 38,686,958 $ 37,324,259 $ 36,273,972 3.7 % 6.7 %
66,924 28,669 39,550 133.4 69.2
646,336 745,915 344,657 (13.3 ) 87.5
450,000 200,000 50,000 125.0 NM
152,162 152,270 152,433 (0.1 ) (0.2 )
109,356 108,083 112,843 1.2 (3.1 )
933,824 619,283 526,048 50.8 77.5
41,045,560 39,178,479 37,499,503 4.8 9.5
4,902,985 5,017,617 4,591,930 (2.3 ) 6.8
$ 45,948,545 $ 44,196,096 $ 42,091,433 4.0 % 9.2 %
$ 34.67 $ 34.46 $ 31.56 0.6 % 9.8 %
$ 31.27 $ 31.15 $ 28.21 0.4 10.8
141,435 145,625 145,501 (2.9 ) (2.8 )
9.73 % 10.38 % 9.87 % (65 ) bps (14 ) bps

All values are in US Dollars.

NM - Not meaningful.

(1) Resale and repurchase agreements have been reported net, pursuant to Accounting Standards Codification (“ASC”) 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. Out of $450.0 million of gross repurchase agreements, $0 million, $250.0 million and $400.0 million were netted against gross resale agreements as of March 31, 2020, December 31, 2019 and March 31, 2019, respectively.
(2) On January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments using the modified retrospective approach. The March 31, 2020 Allowance for credit loss reflects an increase of $125.2 million as a result of adopting ASU 2016-13. We recorded an after-tax decrease to opening retained earnings of $98.0 million as of January 1, 2020.
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(3) See reconciliation of GAAP to non-GAAP financial measures in Table 12.
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7

EAST WEST BANCORP, INC. AND SUBSIDIARIES
TOTAL LOANS AND DEPOSITS DETAIL
( in thousands)
(unaudited)
Table 2
March 31, 2020<br>% Change
March 31, 2020 December 31, 2019 March 31, 2019 Qtr-o-Qtr Yr-o-Yr
Loans:
Commercial:
$ 12,590,764 $ 12,150,931 $ 12,040,806 3.6 % 4.6 %
10,682,242 10,278,448 9,439,375 3.9 13.2
2,902,601 2,856,374 2,467,553 1.6 17.6
606,209 628,499 647,380 (3.5 ) (6.4 )
14,191,052 13,763,321 12,554,308 3.1 13.0
Consumer:
7,403,723 7,108,590 6,309,331 4.2 17.3
1,452,862 1,472,783 1,626,222 (1.4 ) (10.7 )
8,856,585 8,581,373 7,935,553 3.2 11.6
254,992 282,914 332,619 (9.9 ) (23.3 )
Total loans HFI (1) 35,893,393 34,778,539 32,863,286 3.2 9.2
Loans HFS 1,594 434 — 267.3 100.0
35,894,987 34,778,973 32,863,286 3.2 9.2
Allowance for credit losses (557,003 ) (358,287 ) (317,894 ) 55.5 75.2
$ 35,337,984 $ 34,420,686 $ 32,545,392 2.7 % 8.6 %
Deposits:
$ 11,833,397 $ 11,080,036 $ 10,011,533 6.8 % 18.2 %
5,467,508 5,200,755 6,123,681 5.1 (10.7 )
9,302,246 8,711,964 8,243,003 6.8 12.9
2,117,274 2,117,196 2,049,086 0.0 3.3
9,966,533 10,214,308 9,846,669 (2.4 ) 1.2
$ 38,686,958 $ 37,324,259 $ 36,273,972 3.7 % 6.7 %

All values are in US Dollars.

(1) On January 1, 2020, the Company adopted ASU 2016-13. Total loans include net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(50.3) million, $(43.2) million and $(46.0) million as of March 31, 2020, December 31, 2019 and March 31, 2019, respectively.

8

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 March 31, 2020<br>% Change
March 31, 2020 December 31, 2019 March 31, 2019 Qtr-o-Qtr Yr-o-Yr
Interest and dividend income $ 449,190 $ 467,233 $ 463,311 (3.9 )% (3.0 )%
Interest expense 86,483 99,014 100,850 (12.7 ) (14.2 )
Net interest income before provision for credit losses 362,707 368,219 362,461 (1.5 ) 0.1
Provision for credit losses 73,870 18,577 22,579 297.6 227.2
Net interest income after provision for credit losses 288,837 349,642 339,882 (17.4 ) (15.0 )
Noninterest income 54,049 63,013 42,131 (14.2 ) 28.3
Noninterest expense 178,876 193,373 186,922 (7.5 ) (4.3 )
Income before income taxes 164,010 219,282 195,091 (25.2 ) (15.9 )
Income tax expense 19,186 31,067 31,067 (38.2 ) (38.2 )
Net income $ 144,824 $ 188,215 $ 164,024 (23.1 )% (11.7 )%
Earnings per share (“EPS”)
- Basic $ 1.00 $ 1.29 $ 1.13 (22.6 )% (11.4 )%
- Diluted $ 1.00 $ 1.29 $ 1.12 (22.5 ) (11.3 )
Weighted-average number of shares outstanding
- Basic 144,814 145,624 145,256 (0.6 )% (0.3 )%
- Diluted 145,285 146,318 145,921 (0.7 ) (0.4 )
Three Months Ended March 31, 2020<br>% Change
March 31, 2020 December 31, 2019 March 31, 2019 Qtr-o-Qtr Yr-o-Yr
Noninterest income:
$ 15,773 $ 17,244 $ 14,969 (8.5 )% 5.4 %
10,447 9,843 9,468 6.1 10.3
7,819 6,032 5,015 29.6 55.9
5,357 4,215 3,812 27.1 40.5
7,073 17,828 3,216 (60.3 ) 119.9
950 1,068 915 (11.0 ) 3.8
1,529 864 1,561 77.0 (2.0 )
1,921 2,678 1,202 (28.3 ) 59.8
3,180 3,241 1,973 (1.9 ) 61.2
Total noninterest income $ 54,049 $ 63,013 $ 42,131 (14.2 )% 28.3 %
Noninterest expense:
$ 101,960 $ 101,051 $ 102,299 0.9 % (0.3 )%
17,076 17,138 17,318 (0.4 ) (1.4 )
3,427 3,371 3,088 1.7 11.0
3,197 2,141 2,225 49.3 43.7
3,826 3,588 3,157 6.6 21.2
1,217 3,159 2,059 (61.5 ) (40.9 )
3,563 3,749 3,504 (5.0 ) 1.7
6,166 7,626 6,078 (19.1 ) 1.4
21,119 24,512 22,289 (13.8 ) (5.2 )
17,325 27,038 24,905 (35.9 ) (30.4 )
Total noninterest expense $ 178,876 $ 193,373 $ 186,922 (7.5 )% (4.3 )%

All values are in US Dollars.

9

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED AVERAGE BALANCES
( in thousands)
(unaudited)
Table 4
Three Months Ended March 31, 2020<br>% Change
March 31, 2020 December 31, 2019 March 31, 2019 Qtr-o-Qtr Yr-o-Yr
Loans:
Commercial:
$ 12,166,178 $ 12,237,081 $ 11,845,860 (0.6 )% 2.7 %
10,485,683 10,006,424 9,377,170 4.8 11.8
2,889,844 2,771,555 2,498,775 4.3 15.7
641,079 668,147 584,445 (4.1 ) 9.7
14,016,606 13,446,126 12,460,390 4.2 12.5
Consumer:
7,257,367 6,934,361 6,151,550 4.7 18.0
1,442,450 1,506,346 1,652,211 (4.2 ) (12.7 )
8,699,817 8,440,707 7,803,761 3.1 11.5
271,367 286,096 304,774 (5.1 ) (11.0 )
$ 35,153,968 $ 34,410,010 $ 32,414,785 2.2 % 8.5 %
Interest-earning assets $ 42,362,531 $ 42,114,123 $ 38,745,004 0.6 % 9.3 %
Total assets $ 44,755,509 $ 44,471,242 $ 40,738,404 0.6 % 9.9 %
Deposits:
$ 11,117,710 $ 10,976,368 $ 10,071,370 1.3 % 10.4 %
5,001,672 5,540,300 5,270,855 (9.7 ) (5.1 )
9,013,381 8,592,058 8,080,848 4.9 11.5
2,076,270 2,118,911 2,091,406 (2.0 ) (0.7 )
10,264,007 10,180,922 9,408,897 0.8 9.1
$ 37,473,040 $ 37,408,559 $ 34,923,376 0.2 % 7.3 %
Interest-bearing liabilities $ 27,593,341 $ 27,522,469 $ 25,452,835 0.3 % 8.4 %
Stockholders’ equity $ 5,022,005 $ 4,977,759 $ 4,537,301 0.9 % 10.7 %

All values are in US Dollars.

(1) Includes loans HFS.

10

EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
( in thousands)
(unaudited)
Table 5
Three Months Ended
March 31, 2020 December 31, 2019
Average Average Average Average
Balance Interest Yield/Rate ^(1)^ Balance Interest Yield/Rate ^(1)^
Assets
Interest-earning assets:
$ 2,973,006 $ 11,168 1.51 % $ 3,213,016 $ 14,657 1.81 %
882,142 5,565 2.54 % 863,261 5,749 2.64 %
3,274,740 20,142 2.47 % 3,549,376 20,460 2.29 %
35,153,968 411,869 4.71 % 34,410,010 425,773 4.91 %
78,675 446 2.28 % 78,460 594 3.00 %
42,362,531 449,190 4.26 % 42,114,123 467,233 4.40 %
Noninterest-earning assets:
510,512 534,326
(492,297 ) (355,759 )
2,374,763 2,178,552
$ 44,755,509 $ 44,471,242
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
$ 5,001,672 $ 10,246 0.82 % $ 5,540,300 $ 13,589 0.97 %
9,013,381 22,248 0.99 % 8,592,058 25,223 1.16 %
2,076,270 1,817 0.35 % 2,118,911 2,266 0.42 %
10,264,007 42,092 1.65 % 10,180,922 47,935 1.87 %
59,978 556 3.73 % 43,313 404 3.70 %
693,357 4,166 2.42 % 745,732 4,686 2.49 %
332,417 3,991 4.83 % 148,892 3,382 9.01 %
152,259 1,367 3.61 % 152,341 1,529 3.98 %
27,593,341 86,483 1.26 % 27,522,469 99,014 1.43 %
Noninterest-bearing liabilities and stockholders’ equity:
11,117,710 10,976,368
1,022,453 994,646
5,022,005 4,977,759
$ 44,755,509 $ 44,471,242
Interest rate spread 3.00 % 2.97 %
Net interest income and net interest margin $ 362,707 3.44 % $ 368,219 3.47 %

All values are in US Dollars.

(1) Annualized.
(2) Average balances of resale and repurchase agreements have been reported net, pursuant to ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. The weighted-average yields of gross resale agreements were 2.54% and 2.49% for the three months ended March 31, 2020 and December 31, 2019, respectively. The weighted-average interest rates of gross repurchase agreements were 4.10% and 4.35% for the three months ended March 31, 2020 and December 31, 2019, respectively.
--- ---
(3) Includes loans HFS.
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11

EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
( in thousands)
(unaudited)
Table 6
Three Months Ended
March 31, 2020 March 31, 2019
Average Average Average Average
Balance Interest Yield/Rate ^(1)^ Balance Interest Yield/Rate ^(1)^
Assets
Interest-earning assets:
$ 2,973,006 $ 11,168 1.51 % $ 2,578,686 $ 15,470 2.43 %
882,142 5,565 2.54 % 1,035,000 7,846 3.07 %
3,274,740 20,142 2.47 % 2,642,299 15,748 2.42 %
35,153,968 411,869 4.71 % 32,414,785 423,534 5.30 %
78,675 446 2.28 % 74,234 713 3.90 %
42,362,531 449,190 4.26 % 38,745,004 463,311 4.85 %
Noninterest-earning assets:
510,512 468,159
(492,297 ) (314,446 )
2,374,763 1,839,687
$ 44,755,509 $ 40,738,404
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
$ 5,001,672 $ 10,246 0.82 % $ 5,270,855 $ 14,255 1.10 %
9,013,381 22,248 0.99 % 8,080,848 30,234 1.52 %
2,076,270 1,817 0.35 % 2,091,406 2,227 0.43 %
10,264,007 42,092 1.65 % 9,408,897 45,289 1.95 %
59,978 556 3.73 % 60,442 616 4.13 %
693,357 4,166 2.42 % 338,027 2,979 3.57 %
332,417 3,991 4.83 % 50,000 3,492 28.32 %
152,259 1,367 3.61 % 152,360 1,758 4.68 %
27,593,341 86,483 1.26 % 25,452,835 100,850 1.61 %
Noninterest-bearing liabilities and stockholders’ equity:
11,117,710 10,071,370
1,022,453 676,898
5,022,005 4,537,301
$ 44,755,509 $ 40,738,404
Interest rate spread 3.00 % 3.24 %
Net interest income and net interest margin $ 362,707 3.44 % $ 362,461 3.79 %

All values are in US Dollars.

(1) Annualized.
(2) Average balances of resale and repurchase agreements have been reported net, pursuant to ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. The weighted-average yields of gross resale agreements were 2.54% and 2.80% for the three months ended March 31, 2020 and 2019, respectively. The weighted-average interest rates of gross repurchase agreements were 4.10% and 5.01% for the three months ended March 31, 2020 and 2019, respectively.
--- ---
(3) Includes loans HFS.
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12

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED RATIOS
(unaudited)
Table 7
Three Months Ended ^(1)^ March 31, 2020<br><br>Basis Point Change
March 31, 2020 December 31, 2019 March 31, 2019 Qtr-o-Qtr Yr-o-Yr
Return on average assets 1.30 % 1.68 % 1.63 % (38 ) bps (33 ) bps
Adjusted return on average assets ^(2)^ 1.30 % 1.67 % 1.68 % (37 ) (38 )
Return on average equity 11.60 % 15.00 % 14.66 % (340 ) (306 )
Adjusted return on average equity ^(2)^ 11.60 % 14.91 % 15.10 % (331 ) (350 )
Return on average tangible equity ^(2)^ 12.93 % 16.71 % 16.53 % (378 ) (360 )
Adjusted return on average tangible equity ^(2)^ 12.93 % 16.61 % 17.02 % (368 ) (409 )
Interest rate spread 3.00 % 2.97 % 3.24 % 3 (24 )
Net interest margin 3.44 % 3.47 % 3.79 % (3 ) (35 )
Average loan yield 4.71 % 4.91 % 5.30 % (20 ) (59 )
Yield on average interest-earning assets 4.26 % 4.40 % 4.85 % (14 ) (59 )
Average cost of interest-bearing deposits 1.17 % 1.34 % 1.50 % (17 ) (33 )
Average cost of deposits 0.82 % 0.94 % 1.07 % (12 ) (25 )
Average cost of funds 0.90 % 1.02 % 1.15 % (12 ) (25 )
Adjusted pre-tax, pre-provision profitability ratio ^(2)^ 2.30 % 2.37 % 2.43 % (7 ) (13 )
Adjusted noninterest expense/average assets ^(2)^ 1.44 % 1.47 % 1.60 % (3 ) (16 )
Efficiency ratio 42.92 % 44.84 % 46.20 % (192 ) (328 )
Adjusted efficiency ratio ^(2)^ 38.54 % 38.33 % 39.75 % 21 bps (121 ) bps
(1) Annualized except for efficiency ratio.
--- ---
(2) See reconciliation of GAAP to non-GAAP financial measures in Tables 10, 11 and 12.
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13

EAST WEST BANCORP, INC. AND SUBSIDIARIES
ALLOWANCE FOR CREDIT LOSSES & OFF-BALANCE SHEET CREDIT EXPOSURES
( in thousands)
(unaudited)
Table 8
ASU 2016-13 replaced the incurred loss methodology used in calculating the allowance for credit losses with a current expected credit loss model (“CECL”). The Company adopted ASU 2016-13 using the modified retrospective approach on January 1, 2020. As a result, prior comparative periods have not been adjusted. In addition, ASU 2016-13 introduces the concept of Purchased Credit Deteriorated (“PCD”) financial assets, which replaces purchased credit-impaired (“PCI”) assets. For PCD assets, the initial allowance for credit losses is added to the purchase price and is considered to be part of the PCD loan amortized cost basis, hence, there is no income statement impact on acquisition. This contrasts with PCI loans where allowance for credit losses only reflects losses that are incurred by the Company after the acquisition. The allowance for credit losses on loans, including PCD loans, is evaluated each quarter and adjusted as necessary by recognizing a credit loss expense or a reversal of credit loss expense. There were no PCD loans during the quarter ended March 31, 2020.
Three Months Ended March 31, 2020
Commercial Consumer Total
CRE Residential Mortgage
C&I CRE Multi-Family<br><br>Residential Construction<br><br>and Land Single-<br><br>Family<br><br>Residential HELOCs Other<br><br>Consumer
Allowance for credit losses, December 31, 2019 $ 238,376 $ 40,509 $ 22,826 $ 19,404 $ 28,527 $ 5,265 $ 3,380 $ 358,287
Impact of ASU 2016-13 adoption 74,237 72,169 (8,112 ) (9,889 ) (3,670 ) (1,798 ) 2,221 125,158
Allowance for credit losses, January 1, 2020 $ 312,613 $ 112,678 $ 14,714 $ 9,515 $ 24,857 $ 3,467 $ 5,601 $ 483,445
Provision for credit losses 60,618 11,435 1,281 1,482 1,700 412 (2,272 ) 74,656
Gross charge-offs (11,977 ) (954 ) — — — — (26 ) (12,957 )
Gross recoveries 1,575 9,660 535 21 265 2 1 12,059
Total net charge-offs (10,402 ) 8,706 535 21 265 2 (25 ) (898 )
Foreign currency translation adjustments (200 ) — — — — — — (200 )
Allowance for credit losses, March 31, 2020 $ 362,629 $ 132,819 $ 16,530 $ 11,018 $ 26,822 $ 3,881 $ 3,304 $ 557,003

All values are in US Dollars.

Three Months Ended
December 31, 2019 March 31, 2019
Non-PCI Loans
Allowance for credit losses, beginning of period $ 345,576 $ 311,300
Provision for credit losses (a) 20,843 20,648
Net (charge-offs) recoveries:
Commercial:
C&I (11,009 ) (14,993 )
CRE:
CRE 1,254 222
Multifamily residential 1,480 281
Construction and land 13 63
Total CRE 2,747 566
Consumer:
Residential mortgage:
Single-family residential 2 2
HELOCs — 2
Total residential mortgage 2 4
Other consumer (5 ) (14 )
Total net charge-offs (8,265 ) (14,437 )
Foreign currency translation adjustments 133 369
Allowance for credit losses, end of period $ 358,287 $ 317,880
PCI Loans
Allowance for PCI loans, beginning of period — 22
Reversal of loan losses on PCI loans (a) — (8 )
Allowance for PCI loans, end of period^^ — 14
Allowance for credit losses $ 358,287 $ 317,894
Three Months Ended
March 31, 2020 December 31, 2019 March 31, 2019
Unfunded Credit Facilities
Allowance for unfunded credit commitments, beginning of period $ 11,158 $ 13,424 $ 12,566
Impact of ASU 2016-13 adoption 10,457 — —
(Reversal of) provision for credit losses (b) (786 ) (2,266 ) 1,939
Allowance for unfunded credit commitments, end of period ^(1)^ $ 20,829 $ 11,158 $ 14,505
Total provision for credit losses (a) + (b) $ 73,870 $ 18,577 $ 22,579
(1) Included in Accrued expense and other liabilities on the Consolidated Balance Sheet.
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14

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CREDIT QUALITY
( in thousands)
(unaudited)
Table 9
The Company adopted ASU 2016-13 using the modified retrospective approach on January 1, 2020. As a result, prior comparative periods have not been adjusted. PCI loans prior to the adoption of ASU 2016-13 are classified as PCD loans as of January 1, 2020. Nonaccrual loans as of March 31, 2020 include all loans that are 90 or more days past due, unless the loan is well-collateralized or guaranteed by government agencies, and in the process of collection. Nonaccrual loans presented as of December 31, 2019 and March 31, 2019 include only Non-PCI nonaccrual loans.
Nonperforming Assets^^ December 31, 2019 March 31, 2019
Non-PCI<br><br>Nonaccrual Loans Non-PCI<br><br>Nonaccrual Loans
Commercial:
C&I 89,079 $ 74,835 $ 86,466
CRE:
CRE 16,441 25,209
Multifamily residential 819 1,620
Total CRE 17,260 26,829
Consumer:
Residential mortgage:
Single-family residential 14,865 10,467
HELOCs 10,742 10,473
Total residential mortgage 25,607 20,940
Other consumer 2,517 2,506
Total nonaccrual loans 120,219 136,741
Other real estate owned, net 125 133
Other nonperforming assets 1,167 1,167
Total nonperforming assets 150,930 $ 121,511 $ 138,041
Credit Quality Ratios December 31, 2019 March 31, 2019
Nonperforming assets to total assets % 0.27 % 0.33 %
Nonaccrual loans to loans HFI % 0.35 % 0.42 %
Allowance for credit losses to loans HFI % 1.03 % 0.97 %
Allowance for credit losses to nonaccrual loans % 298.03 % 232.48 %
Annualized quarterly net charge-offs to average loans HFI % 0.10 % 0.18 %

All values are in US Dollars.

15

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
( and shares in thousands, except for per share data)
(unaudited)
Table 10
During the first and fourth quarters of 2019, the Company recorded a 7.0 million pre-tax impairment charge and 1.6 million pre-tax impairment recovery related to the DC Solar tax credit investments (“DC Solar”), respectively. Management believes that presenting the computations of the adjusted net income, adjusted diluted earnings per common share, adjusted return on average assets and adjusted return on average equity that adjust for the above discussed non-recurring items provides clarity to financial statement users regarding the ongoing performance of the Company and allows comparability to prior periods.
Three Months Ended
March 31, 2020 December 31, 2019 March 31, 2019
Net income $ 144,824 $ 188,215 $ 164,024
Add: Impairment charge related to DC Solar (1) — — 6,978
Less:  Impairment recovery related to DC Solar (1) — (1,583 ) —
Tax effect of adjustment (2) — 468 (2,063 )
Adjusted net income $ 144,824 $ 187,100 $ 168,939
Diluted weighted-average number of shares outstanding 145,285 146,318 145,921
Diluted EPS $ 1.00 $ 1.29 $ 1.12
Diluted EPS impact of impairment charge related to DC Solar, net of tax — — 0.04
Diluted EPS impact of impairment recovery related to DC Solar, net of tax — (0.01 ) —
Adjusted diluted EPS $ 1.00 $ 1.28 $ 1.16
Average total assets $ 44,755,509 $ 44,471,242 $ 40,738,404
Average stockholders’ equity $ 5,022,005 $ 4,977,759 $ 4,537,301
Return on average assets (3) 1.30 % 1.68 % 1.63 %
Adjusted return on average assets (3) 1.30 % 1.67 % 1.68 %
Return on average equity (3) 11.60 % 15.00 % 14.66 %
Adjusted return on average equity (3) 11.60 % 14.91 % 15.10 %

All values are in US Dollars.

(1) Included in Amortization of tax credit and other investments on the Consolidated Statement of Income.
(2) Applied statutory rates of 28.35% for the three months ended March 31, 2020, and 29.56% for each of the three months ended December 31, 2019 and March 31, 2019.
--- ---
(3) Annualized.
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16

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
( in thousands)
(unaudited)
Table 11
Adjusted efficiency ratio represents adjusted noninterest expense divided by revenue. Adjusted pre-tax, pre-provision profitability ratio represents revenue less adjusted noninterest expense, divided by average total assets. Adjusted noninterest expense excludes the amortization of tax credit and other investments and the amortization of core deposit intangibles. Management believes that the measures and ratios presented below provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods.
Three Months Ended
March 31, 2020 December 31, 2019 March 31, 2019
Net interest income before provision for credit losses $ 362,707 $ 368,219 $ 362,461
Total noninterest income 54,049 63,013 42,131
Total revenue $ 416,756 $ 431,232 $ 404,592
Total noninterest expense $ 178,876 $ 193,373 $ 186,922
Less: Amortization of tax credit and other investments (17,325 ) (27,038 ) (24,905 )
Amortization of core deposit intangibles (953 ) (1,044 ) (1,174 )
Adjusted noninterest expense $ 160,598 $ 165,291 $ 160,843
Efficiency ratio 42.92 % 44.84 % 46.20 %
Adjusted efficiency ratio 38.54 % 38.33 % 39.75 %
Adjusted pre-tax, pre-provision income $ 256,158 $ 265,941 $ 243,749
Average total assets $ 44,755,509 $ 44,471,242 $ 40,738,404
Adjusted pre-tax, pre-provision profitability ratio (1) 2.30 % 2.37 % 2.43 %
Adjusted noninterest expense (1)/average assets 1.44 % 1.47 % 1.60 %

All values are in US Dollars.

(1) Annualized.

17

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
( in thousands)
(unaudited)
Table 12
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible equity and tangible equity to tangible assets ratio are non-GAAP financial measures. Tangible equity and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.
March 31, 2020 December 31, 2019 March 31, 2019
Stockholders’ equity $ 4,902,985 $ 5,017,617 $ 4,591,930
Less: Goodwill (465,697 ) (465,697 ) (465,697 )
Other intangible assets (1) (14,769 ) (16,079 ) (21,109 )
Tangible equity $ 4,422,519 $ 4,535,841 $ 4,105,124
Total assets $ 45,948,545 $ 44,196,096 $ 42,091,433
Less: Goodwill (465,697 ) (465,697 ) (465,697 )
Other intangible assets (1) (14,769 ) (16,079 ) (21,109 )
Tangible assets $ 45,468,079 $ 43,714,320 $ 41,604,627
Total stockholders’ equity to total assets ratio 10.67 % 11.35 % 10.91 %
Tangible equity to tangible assets ratio 9.73 % 10.38 % 9.87 %

All values are in US Dollars.

Adjusted return on average tangible equity represents adjusted tangible net income divided by average tangible equity. Adjusted tangible net income excludes the after-tax impacts of the amortization of core deposit intangibles and mortgage servicing assets, impairment charge/(recovery) and the reversal of certain previously claimed tax credits related to DC Solar (where applicable). Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.
Three Months Ended
March 31, 2020 December 31, 2019 March 31, 2019
Net Income $ 144,824 $ 188,215 $ 164,024
Add: Amortization of core deposit intangibles 953 1,044 1,174
Amortization of mortgage servicing assets 584 567 324
Tax effect of adjustments ^(2)^ (436 ) (476 ) (443 )
Tangible net income (e) $ 145,925 $ 189,350 $ 165,079
Add: Impairment charge related to DC Solar ^(3)^ — — 6,978
Less:  Impairment recovery related to DC Solar ^(3)^ — (1,583 ) —
Tax effect of adjustment ^(2)^ — 468 (2,063 )
Adjusted tangible net income (f) $ 145,925 $ 188,235 $ 169,994
Average stockholders’ equity $ 5,022,005 $ 4,977,759 $ 4,537,301
Less: Average goodwill (465,697 ) (465,697 ) (465,559 )
Average other intangible assets ^(1)^ (15,588 ) (16,793 ) (21,860 )
Average tangible equity (g) $ 4,540,720 $ 4,495,269 $ 4,049,882
Return on average tangible equity ^(4)^ (e)/(g) 12.93 % 16.71 % 16.53 %
Adjusted return on average tangible equity ^(4)^ (f)/(g) 12.93 % 16.61 % 17.02 %
(1) Includes core deposit intangibles and mortgage servicing assets.
--- ---
(2) Applied statutory rates of 28.35% for the three months ended March 31, 2020, and 29.56% for each of the three months ended December 31, 2019 and March 31, 2019.
--- ---
(3) Included in Amortization of tax credit and other investments on the Consolidated Statement of Income.
--- ---
(4) Annualized.
--- ---

18

deckewbc1q20earningspres

EWBC Earnings Results First Quarter 2020 April 23, 2020

Forward-Looking Statements Forward-Looking Statements Certain matters set forth herein (including any exhibits hereto) constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to our current business plans and expectations regarding future operating results. Forward-looking statements may include, but are not limited to, the use of forward-looking language, such as “likely result in,” “expects,” “anticipates,” “estimates,” “forecasts,” “projects,” “intends to,” “assumes,” or may include other similar words or phrases, such as “believes,” “plans,” “trend,” “objective,” “continues,” “remains,” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” “may,” “might,” “can,” or similar verbs, and the negative thereof. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to, the changes and effects thereof in trade, monetary and fiscal policies and laws, including the impact of disease pandemics, such as the novel strain of coronavirus disease (COVID-19), on us, our operations and our customers and employees; changes in the U.S. economy, including an economic slowdown or recession, inflation, deflation, employment levels, rate of growth and general business conditions; fluctuations in our stock price; government intervention in the financial system, including changes in government interest rate policies; changes in income tax laws and regulations; the ongoing trade dispute between the United States (“U.S.”) and the People’s Republic of China; our ability to compete effectively against other financial institutions in our banking markets; success and timing of our business strategies; our ability to retain key officers and employees; impact on our funding costs, net interest income and net interest margin due to changes in key variable market interest rates, competition, regulatory requirements and our product mix; changes in our costs of operation, compliance and expansion; our ability to adopt and successfully integrate new technologies into our business in a strategic manner; impact of benchmark interest rate reform in the U.S. that resulted in the Secured Overnight Financing Rate selected as the preferred alternative reference rate to the London Interbank Offered Rate; impact of failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business, including as a result of cyber attacks; and other similar matters which could result in, among other things, confidential and/or proprietary information being disclosed or misused; adequacy of our risk management framework, disclosure controls and procedures and internal control over financial reporting; future credit quality and performance, including our expectations regarding future credit losses and allowance levels; impact of adverse changes to our credit ratings from major credit rating agencies; impact of adverse judgments or settlements in litigation; changes in the commercial and consumer real estate markets; changes in consumer spending and savings habits; impact on our international operations due to political developments, disease pandemics, wars or other hostilities that may disrupt or increase volatility in securities or otherwise affect economic conditions; changes in laws or the regulatory environment including regulatory reform initiatives and policies of the U.S. Department of Treasury, the Board of Governors of the Federal Reserve Board System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the U.S. Securities and Exchange Commission, the Consumer Financial Protection Bureau and the California Department of Business Oversight — Division of Financial Institutions; impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on our business, business practices, cost of operations and executive compensation; heightened regulatory and governmental oversight and scrutiny of our business practices, including dealings with consumers; impact of reputational risk from negative publicity, fines and penalties and other negative consequences from regulatory violations and legal actions and from our interactions with business partners, counterparties, service providers and other third parties; impact of regulatory enforcement actions; changes in accounting standards as may be required by the Financial Accounting Standards Board or other regulatory agencies and their impact on critical accounting policies and assumptions; impact of other potential federal tax changes and spending cuts; our capital requirements and our ability to generate capital internally or raise capital on favorable terms; impact on our liquidity due to changes in our ability to receive dividends from our subsidiaries; any future strategic acquisitions or divestitures; continuing consolidation in the financial services industry; changes in the equity and debt securities markets; fluctuations in foreign currency exchange rates; a recurrence of significant turbulence or disruption in the capital or financial markets, which could result in, among other things, a reduction in the availability of funding or increases in funding costs, a reduction in investor demand for mortgage loans and declines in asset values and/or recognition of other-than-temporary impairment on securities held in our available- for-sale investment securities portfolio; impact of natural or man-made disasters or calamities, such as wildfires or conflicts or other events that may directly or indirectly result in a negative impact on our financial performance; and other factors set forth in our public reports including our Annual Report on Form 10-K for the year ended December 31, 2019, and particularly the discussion of risk factors within that document. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward- looking statements proves to be incorrect, our results could differ materially from those expressed in, implied or projected by such forward-looking statements. We assume no obligation to update or revise such forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. 2

East West Response to COVID-19 Employees Customers . Quickly mobilized to assure continuity of Commercial: business operations and maintain ability to serve customers, with enhanced safety . SBA Paycheck Protection Program: measures at all offices and branches. Processed and funded over $1.5 billion for over 4,500 small to medium-sized . Implemented work from home for associates businesses and nonprofit organizations with jobs that can be performed remotely. between April 3 and April 19. Currently, 60% of our 3,200 associates are working remotely. . Payment accommodations for impacted commercial customers. . Most branch associates placed on rotation schedule. Reduced branch hours; Consumer: temporarily closed geographically proximate . Customers can request mortgage and home branches. equity payment deferrals. . Operations support associates with jobs that . Paused action on collections & foreclosures; cannot be performed remotely placed on waiver of certain fees. split-team arrangements. . No negative credit reporting for payment deferrals. . Thermal cameras for temperature screening at larger offices. . Processing Economic Impact Payments for customers. 3

Highlights of First Quarter 2020 Results Profitability: Returns on Assets & Equity 2.00% 40.0% 1Q20 1.68% 1.74% 1.67% 1.58% Net Income 30.0% 1.30% $145 million 17.4% 17.0% 15.7% 16.6% 20.0% 12.9% 1Q20 15.1% 15.5% 14.1% 14.9% 10.0% 11.6% Diluted EPS 0.00% 0.0% $1.00 1Q19* 2Q19* 3Q19 4Q19* 1Q20 ROAA ROAE ROATE* Total Revenue * See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases. ROAA, ROAE & ROATE adjusted in 1Q19, 2Q19 & 4Q19 for non-GAAP items. $417 million Pre-Tax, Pre-Provision Income & PTPP Ratio Record Loans $260 $263 $266 $35.9 billion $244 $256 5.00% $250 4.50% $200 4.00% Record Deposits 3.50% $150 $ inmillions 2.51% 3.00% 2.43% 2.42% 2.37% 2.30% $38.7 billion $100 2.50% 2.00% $50 1.50% Adj.* Efficiency Ratio $- 1.00% 1Q19 2Q19 3Q19 4Q19 1Q20 38.5% Adj.* PTPP income Adj.* PTPP profitability ratio * See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases. 4

1Q20: Summary Balance Sheet $ in millions, except per share data 03.31.20 12.31.19 % Change Notable Items Cash equivalents & ST investments $ 3,374 $ 3,457 -2% . Strong, well-diversified balance sheet. AFS debt securities & repo assets 4,556 4,177 9% Gross loans, net of discounts $ 35,895 $ 34,779 3% . Total loan growth: $1.1bn, +13% annualized. Allowance for credit losses (557) (358) 55% . Allowance for credit losses increased to 1.55% Net Loans $ 35,338 $ 34,421 3% of loans: implementation of CECL, plus additional Other assets 2,681 2,141 25% reserve build during 1Q20. Total Assets $ 45,949 $ 44,196 4% . Total deposit growth: $1.4bn, +15% annualized. Customer deposits $ 38,687 $ 37,324 4% . Strong liquidity: available borrowing capacity of Short-term borrowings 67 29 133% $13.0bn as of 03.31.20. Debt 1,244 1,093 14% Borrowing Capacity Composition as of 03.31.20 Other Liabilities 1,048 733 43% ($ in billions) Total Liabilities $ 41,046 $ 39,178 5% Total Stockholders' Equity $ 4,903 $ 5,018 -2% $0.9 7% $2.5 End-of-Period (“EOP”) Loan-to-Deposit Ratio 19% $6.7 52% 92.5% 92.8% 93.2% 92.8% 90.6% $2.9 22% FHLB Borrowing Fed Discount Unpledged Fed Funds 03.31.19 06.30.19 09.30.19 12.31.19 03.31.20 Capacity Window Borrowing AFS Investment Facilities Capacity Securities 5

1Q20: Strong Capital Ratios . Book value per share of $34.67 as of 03.31.20: +0.6% Q-o-Q and +10% Y-o-Y. . Tangible equity* per share of $31.27 as of 03.31.20: +0.4% Q-o-Q and +11% Y-o-Y. . Capital return to shareholders: . Buyback: $145.9mm, or 4.5mm shares, of common stock repurchased in 1Q20 through 03.16.20. . Dividend: Quarterly common stock dividend of 27.5 cents per share, or annualized $1.10 per share. . Tangible equity* to tangible assets ratio of 9.7% as of 03.31.20. 14.0% 12.4% 12.4% 10.5% 10.2% 8.5% 7.0% 5.0% CET1 Tier 1 Total Leverage capital ratio capital ratio capital ratio ratio EWBC as of 03.31.20 Higher of the Regulatory requirement for the Minimum Capital Ratio + 2.5% Conservation Buffer, or the Well Capitalized Ratio Note: regulatory capital ratios as of 03.31.20 are preliminary. * See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s Earnings Press Releases. 6

1Q20: Record Loans of $35.9 billion Loan Mix as of 03.31.20: $35.9 billion . EOP loan growth: 3% Q-o-Q (+13% LQA). ($ in billions) . Driven by growth in C&I (+15% LQA), total CRE (+12% LQA) and residential mortgage (+13% LQA). $9.1 . Avg. loan growth: 2% Q-o-Q (+9% LQA), driven by growth 25% in CRE (+17% LQA) and residential mortgage (+12% LQA). $12.6 . CRE and SFR growth evenly spread throughout quarter. 35% . C&I loan growth accelerated in March; on avg. basis, $14.2 C&I loans declined by -2% LQA. 40% . C&I loan line utilization: increased to 75% as of 03.31.20, up from 71% as of 12.31.19. As of 03.31.20, total C&I C&I Total CRE Residential mortgage & other consumer commitments of $16.8bn: $12.6bn in loans outstanding plus $4.2bn in undisbursed commitments. Average Loans & Growth . Greater China: $1.3bn loans outstanding as of 03.31.20, 45 $45.0 down by $104mm from 12.31.19. So far, limited credit 40 $34.4 $35.2 $40.0 concerns resulting from the COVID-19 pandemic, and $32.4 $33.0 $33.7 35 +9% $35.0 limited requests for loan forbearances. +7% +8% +9% 30 8.8 9.0 $30.0 8.1 8.3 8.6 . Paycheck Protection Program: quarter-to-date in 2Q20, 25 $25.0 funded over $1.5bn of PPP loans between April 3 and 20 $20.0 April 19, 2020. 12.5 12.7 12.9 13.4 14.0 15 $15.0 $ $ inbillions 10 $10.0 5 11.8 12.0 12.2 12.2 12.2 $5.0 0 $- 1Q19 2Q19 3Q19 4Q19 1Q20 C&I Total CRE Residential mortgage & other consumer LQA average loan growth 7

1Q20: Diversified Commercial Loan Portfolio Total Loans: C&I Loans by Industry as % of Total Loans Outstanding (as of 03.31.20) Total Residential Mortgage & 4% General Manufacturing & Wholesale Other Consumer 25% 4% Oil & Gas $12.6 billion 4% Private Equity Total C&I 3% Entertainment Total Loans 35% 2% Real Estate Related 2% Technology & Life Science $35.9 2% 2% Consumer Goods billion 2% Clean Energy 2% Healthcare Grocers & Food Producers Total CRE All Other C&I 40% 8% Total=35% of total loans . Travel & Leisure, Hospitality, and Restaurant & Restaurant Supply exposures total less than 1.5% of total loans, combined. . Oil & Gas exposure: $1.4bn loans O/S and $1.8bn total commitments. Based on commitment, 64% of exposure in upstream (E&P); 27% in midstream & downstream; 9% in oilfield services & other. Production mix: 61% oil; 29% gas; 10% NGL. . Hedging: Production is ~60% oil and ~50% gas hedged for 2020; and ~40% oil and ~30% gas hedged for 2021. . Allowance for credit loss coverage: approx. 8% of the oil & gas portfolio. 8

1Q20: Well-Balanced Commercial Real Estate Portfolio Total Loans: Total CRE Loans by Property Type as % of Total CRE Geographic Distribution Total Loans Outstanding (as of 03.31.20) (as of 03.31.20) Total Residential Other 9% WA Mortgage & 3% 7% Other Consumer Retail, 9% TX 25% $14.2 billion 6% Total CRE Multifamily, 8% NY Total Loans 40% 7% $14.2 billion $35.9 Office, 7% SoCal Total CRE loans 54% billion Industrial, 6% NorCal Total C&I 23% 35% Hospitality, 5% Const. & Land, 2% All Other CRE, 3% Total=40% of total loans . FFIEC CRE concentration: 259% of risk-based capital as of 03.31.20, well under 300% threshold. . Owner-occupied loans in CRE: $2.1bn, or 6% of total loans outstanding. . Geographic distribution reflects EWBC’s branch footprint. 9

1Q20: Low LTV Commercial Real Estate Portfolio LTV Distribution of Total CRE (as of 03.31.20) LTV & Size by Property Type (as of 03.31.20) 66% to 70% over 70% 6% 5% Average Weight. Avg. ($ in mm) Loan Size LTV Retail $ 2.1 mm 49% 61% to 65% Multifamily 1.2 mm 52% 12% Office 3.7 mm 51% $2.3 million Avg. size Industrial 2.2 mm 52% 56% to 60% 51% under 50% 18% Hospitality 8.3 mm 49% Weigh. Avg. LTV 45% Construction & 9.0 mm 54% Land 51% to 55% Other 2.0 mm 47% 14% Total CRE $ 2.3 mm 51% 10

1Q20: Selected Commercial Real Estate Portfolios Hospitality CRE Portfolio* (as of 03.31.20) Retail CRE Portfolio* (as of 03.31.20) Construction & Land Portfolio* (as of 03.31.20) * Distribution based on loans outstanding. * Distribution based on loans outstanding. * Construction & Land portfolio distribution based on total commitments. Strip Center: Multifamily 36% 52% Full Service <30K SF 57% Hotel Hospitality 23% Mixed Use 14% Office 13% Limited Service Large Neighborhood 37% 12% Hotel Center: 30-100K SF Land 7% Single Tenant Retail 6% Single Family 6% Resi. Motel 2% Restaurant 6% Industrial 5% Regional Center: 6% 100K+ SF Retail 2% Other 4% 9% 6% 11% 7% 4% Other 4% Other 8% 7% 7% 41% 7% 15% 45% SoCal SoCal 57% SoCal NorCal NorCal 18% NorCal NY 39% NY NY WA TX WA 27% Other Other Other . Low LTV at 49%. . Low LTV at 49%. . Low LTV at 54% based on commitment. . Partner with experienced hotel operators . Small properties and low avg. loan size . Construction & land portfolio of $606mm, plus that have significant invested equity. of $2.1mm. Avg. size of restaurant loans: unfunded commitments related to . High percentage of hotel loans have $0.9mm. LTV of restaurant loans: 53%. construction: $326mm, for total construction & personal guarantees from individuals with . High percentage of retail loans have land exposure of $932mm. substantial net worth. personal guarantees from individuals . High percentage of loans to guarantors with with substantial net worth. substantial net worth. 11

1Q20: Low LTV Single Family Mortgage Portfolio Geographic Distribution of SFR LTV Distribution (as of 03.31.20) Residential Mortgage (as of 03.31.20) Over 60%: 6% Other 9% WA 9% Under 50%: 36% SoCal $380,000 $8.9 billion 44% Avg. outstanding Residential SFR size 56% to 60%: NY mortgage 23% 23% 52% Avg. LTV* 51% to 55%: NorCal 15% 15% . Residential mortgage: $7.4bn of single-family residential (SFR) mortgages and $1.5bn of HELOCs, primarily originated through East West branches and their local networks of real estate professionals. . SFR origination volume of $640mm in 1Q20, on par with record 4Q19 originations; 51% of 1Q origination volume in fixed-rate. . Refinance transactions increased to 62% of origination volume in 1Q20, up from run-rate of 50% previously. . In response to shelter-in-place orders, migrated to a digital application process. Over 90% of applications are now received digitally. As a result, loan production has been able to continue though March and in April. 12

1Q20: Allowance for Credit Losses & Credit Costs Allowance for Credit Losses (“ACL”) Coverage Ratio Provision for Credit Losses: Reserve Build vs. Loan Growth 0.26% $557 0.18% CECL $483 0.09% 0.10% 0.01% 1.55% $358 1.39% Total: $74 $287 $311 Total: $38 23% $ $ inmillions 1.03% 0.99% $ inmillions 0.96% Total: $23 Total: $19 6% Total: $19 77% 15% 47% 94% 48% 85% 53% 52% 12.31.17 12.31.18 12.31.19 01.01.20 03.31.20 03.31.19 06.30.19 09.30.19 12.31.19 03.31.20 Allowance for credit losses ACL/Loans HFI Provision for reserve build Provision for loan growth NCOs / Avg. Loans HFI Composition of ACL in 1Q20: . Allowance coverage of loans HFI: 1.55% as of 03.31.20, Total: $557 Total: 1.55% compared to 1.03% as of 12.31.19. . Adoption of the new CECL accounting standard on 01.01.20: Total: $483 34 0.37% increased ACL coverage of loans HFI to 1.39%. 34 160 1.13% Total: $358 + 125 . Portfolios driving increase: oil & gas; CRE: hospitality & retail. 137 . Added $10.5mm to the allowance for unfunded credit 37 CECL commitments with adoption of CECL. 83 Day 1 Impact $ $ inmillions . 1Q20 provision for credit losses of $73.9mm: 313 363 2.88% 238 . Reserve build: 77% of 1Q20 provision attributable to reserve build, primarily driven by deteriorating macroeconomic conditions and outlook as a result of the COVID-19 pandemic. 12.31.19 01.01.20 03.31.20 03.31.20 . Growth: 23% of 1Q20 provision attributable to net loan growth. ACL Coverage . 1Q20 NCOs of only $0.9mm. ACL by Loan Type: C&I Total CRE Residential mortgage & other consumer 13

1Q20: Asset Quality Metrics Criticized Loans & Criticized Loan Ratios Net Charge-offs (“NCO”) & NCO Ratio $53 $999 $953 $976 $976 $826 $40 2.82% 2.87% 2.81% 2.78% 2.51% $23 0.16% $ $ inmillions $ $ inmillions 0.13% 0.01% 1.29% 1.32% 1.32% 0.08% 1.25% 1.25% $1 03.31.19 06.30.19 09.30.19 12.31.19 03.31.20 2017 2018 2019 1Q20 Criticized Loans Classified loans/Total loans Criticized loans/Total Loans Net charge-offs NCOs / Avg. Loans HFI Classified loans: loans classified as substandard, doubtful and loss. Criticized loans: classified loans plus special mention loans. Nonperforming Assets (“NPA”)* & NPA Ratio . Other than the increase to the allowance for credit losses in 1Q20, as of 03.31.20, the impact of the pandemic crisis was not yet $151 evident in other asset quality metrics, which remained strong: $115 $122 . 1Q20 NCO ratio: 0.01% of avg. loans HFI annualized. Gross $93 charge-offs of $13.0mm nearly entirely offset by recoveries of $12.1mm in the quarter. $ $ inmillions . Gross charge-offs: $12.0mm from C&I, $1.0mm from CRE. 0.31% 0.33% . Main recoveries: $10.2mm from total CRE, $1.6mm from C&I. 0.27% 0.23% . NPAs/Total assets as of 03.31.20: 0.33%, vs. 0.27% as of 12.31.17 12.31.18 12.31.19 03.31.20 12.31.19 or 0.33% as of 03.31.19. Nonaccrual loans OREO & other NPA NPAs/Total assets . Nonaccrual loans/Loans HFI as of 03.31.20: 0.35%, vs. * Nonaccrual loans prior to January 1, 2020 include only Non-PCI nonaccrual loans due to adoption of 0.35% as of 12.31.19 or 0.42% as of 03.31.19. ASU 2016-13 on January 1, 2020. Please see the Company’s Earnings Press Release Table 9. 14

1Q20: Record Deposits of $38.7 billion Deposit Mix as of 03.31.20: $38.7 billion . EOP loan-to-deposit ratio of 92.8% as of 03.31.20. ($ in billions) . EOP deposit growth of 4% Q-o-Q (+15% LQA). . Avg. deposit growth of 0.2% Q-o-Q (+1%). $7.6 20% $11.8 . Growth in avg. MMDA: $421mm (+20% LQA). 30% . Growth in avg. DDA: $141mm (+5% LQA). $9.3 . Growth in avg. time: $83mm (+3% LQA). 24% $10.0 . Change in avg. IB checking: -$539mm (-39% LQA). 26% . Change in avg. savings: -$43mm (-8% LQA). DDA Time MMDA IB Checking & Savings Average Deposits . Maturing CDs in 2020, as of 03.31.20: . 2Q20: $3.6bn @ blended rate of 1.53%. $37.4 $37.5 40 $36.5 $40.0 . 3Q20: $2.0bn @ blended rate of 1.57%. $34.9 $35.3 +10% +1% +5% +13% 35 $35.0 . 4Q20: $1.4bn @ blended rate of 1.44%. 7.2 7.6 7.1 7.3 7.3 $30.0 30 . Originations & renewals of CDs YTD: 25 8.3 8.6 9.0 $25.0 8.1 7.9 . Feb. 2020: $1.5bn @ blended rate of 1.21%. 20 $20.0 $ $ inbillions . Mar. 2020: $1.6bn @ blended rate of 0.83%. 15 9.4 9.9 10.3 10.2 10.3 $15.0 . MTD in Apr. 2020: $0.7bn @ blended rate of 0.40%. 10 $10.0 . The month-over-month decline in CD pricing reflects fed 5 10.1 10.2 10.7 11.0 11.1 $5.0 funds rate cuts of 150 bps in March 2020. 0 $- 1Q19 2Q19 3Q19 4Q19 1Q20 . Repricing of maturing CDs to lower rates will continue to DDA Time MMDA IB Checking & Savings LQA average deposit growth decrease deposit costs. 15

1Q20: Summary Income Statement $ in millions, except per share data 1Q20 4Q19 $ Change % Change Notable Items Net Interest Income $ 362.7 $ 368.2 $ (5.5) -1% . Q-o-Q decline in noninterest income Fee income & net gains on sales of 54.4 52.5 1.9 4% loans* driven by a negative change to the credit valuation adjustment related to Other (0.4) 10.5 (10.9) -104% interest rate swaps. This reflects the Total Noninterest Income* $ 54.0 $ 63.0 $ (9.0) -14% decline in long-term interest rates Adjusted noninterest expense $ 160.6 $ 165.3 $ (4.7) -3% during the quarter. Amortization of tax credit & other 18.3 28.1 (9.8) -35% . 1Q20 effective tax rate: 12%. investments + core deposit intangibles 4Q19 effective tax rate: 14%. Total Noninterest Expense $ 178.9 $ 193.4 $ (14.5) -7% Provision for credit losses $ 73.9 $ 18.6 $ 55.3 298% . 1Q20 EPS: $1.00. Income tax expense 19.2 31.1 (11.9) -38% . Weighted average diluted shares Net Income $ 144.8 $ 188.2 $ (43.4) -23% decreased by 1% due to share repurchase activity. Diluted EPS $ 1.00 $ 1.29 $ (0.29) -22% . 2020 outlook: temporarily withdrawn Operating EPS $ 1.00 $ 1.28 $ (0.28) -22% due to the economic uncertainties Weigh. Avg. Diluted Shares (in mm) 145.3 146.3 (1.0) -1% impacted by the COVID-19 pandemic. * See slide 19 for noninterest income detail by category. ** See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s Earnings Press Releases. 16

1Q20: Net Interest Income & Net Interest Margin Net Interest Income . 1Q20 NII: $362.7mm, down by $5.5mm or 1.5% Q-o-Q. . 1Q20 NIM: 3.44%, down 3 bps Q-o-Q. $362 $367 $370 $368 $363 . Against a backdrop of materially lower interest rates in +1% +1% -0.4% -1.5% 1Q20, declines in earning asset yields were largely offset by decreases in the cost of funds. $ $ inmillions . Impact to NIM from change in yields & rates (Q-o-Q): . -11 bps from lower loan yields, incl. fees & discounts. . -1 bps from lower other earning asset yields. $150 . -3 bps from balance sheet mix shift. 1Q19 2Q19 3Q19 4Q19 1Q20 . +12 bps from lower funding costs. Net Interest Income NII growth NIM relative to Fed Funds, Prime Rate & 1M LIBOR Q-o-Q Change in Avg. Loan Yield & Cost of Deposits 5.50% 5.50% Fed funds Fed funds Fed funds 5.30% 17 cuts: cut: cuts: 4.83% (50) bps (25) bps (150) bps 4.42% 8 3.79% 3.73% 4 3.59% 3.47% 3.44% 2.50% 2.50% 2.30% 1.83% (2) 2.50% 2.44% 1.41% (6) 2.17% 1.79% (11) (12) 1.41% (17) (20) (20) 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 Net Interest Margin Avg. Prime Rate Avg. 1M LIBOR Rate Avg. Fed Funds Rate Change in avg. loan yield (in bps) Change in avg. cost of deposits (in bps) 17

1Q20: Net Interest Margin: Yields & Rates Loan Portfolio Distribution by Index Rate as of 03.31.20 . 1Q20 avg. loan yield: 4.71%, down 20 bps Q-o-Q. . Change in monthly loan yields between Mar. & Feb. 2020: 6% . Monthly SFR loan yield essentially unchanged 13% . 30 bps decline in monthly C&I loan yield. 29% . Loans: 31% fixed & 69% variable-rate as of 03.31.20. 18% . 1Q20 avg. cost of deposits: 0.82%, down 12 bps Q-o-Q. 1Q20 avg. cost of IB deposits: 1.17%, down 17 bps Q-o-Q. 34% . Cost of total deposits as of 03.31.20: 0.58%, down 32 bps Q-o-Q and down 28 bps M-o-M. QTD as of 04.21.20: 0.51%. . Cost of IB deposits as of 03.31.20: 0.84%, down 44 bps Fixed rate Hybrid in fixed Variable: Variable: Variable: Q-o-Q and down 39 bps M-o-M. QTD as of 04.21.20: 0.78%. rate period LIBOR rates Prime rate all other rates Average Loan Yield Avg. Cost of Deposits Relative to Fed Funds & 1M LIBOR 2.50% 2.50% 5.30% 5.28% 5.11% 2.30% 4.91% 4.71% 2.50% 2.44% 1.83% 2.17% 1.79% 1.41% 1.41% 2.50% 2.44% 2.17% 1.50% 1.57% 1.49% 1.34% 1.17% 1.79% 1.07% 1.11% 1.05% 0.94% 1.41% 0.82% 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 Avg. loan yield Avg. 1M LIBOR Rate Avg. cost of deposits Avg. cost of IB deposits Avg. 1M LIBOR Rate Avg. Fed Funds Rate 18

1Q20: Noninterest Income Detail Fee Income & Net Gains on Sales of Loans * Total noninterest income: $54.0mm in 1Q20 vs. $63.0mm 60.0 in 4Q19. $54.4 $52.5 . Fee income and net gains on sales of loans: $50.9 0.9 2% $48.9 1.2 $54.4mm in 1Q20, up $1.9mm or +4% Q-o-Q. 50.0 2.1 14.1 26% . IRC and other derivative income of $7.1mm in 1Q20: 14.1 11.8 11.1 $39.1 . Customer-driven IRC revenue of $14.1mm was steady 40.0 0.9 Q-o-Q; reflects strong customer demand for interest rate 5.4 10% 4.9 3.8 4.9 4.2 hedging products. 3.8 . Credit valuation adjustment of $(7.0)mm, Q-o-Q change of 30.0 6.0 7.8 14% 7.3 8.1 5.0 $10.7mm, driven by decline in long-term interest rates. $ $ inmillions . Foreign exchange fees: $7.8mm in 1Q20, +$1.8mm Q-o-Q. 9.6 9.8 20.0 10.4 19% 9.5 9.7 . Wealth management fees: $5.4mm in 1Q20, +$1.1mm Q-o-Q. . Lending fees: $15.8mm in 1Q20, -$1.5mm Q-o-Q. 10.0 17.2 15.0 16.4 15.0 15.8 29% Interest Rate Contracts and Other Derivative Income Detail 0.0 ($ in millions) 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 1Q20Mix Revenue $ 4.9 $ 11.8 $ 11.1 $ 14.1 $ 14.1 Lending fees Deposit account fees Foreign exchange income Wealth management fees IRC revenue Net gains on sales of loans CVA (1.7) (1.4) (2.7) 3.7 (7.0) Total $ 3.2 $ 10.4 $ 8.4 $ 17.8 $ 7.1 * Fee income excludes: credit valuation adjustment (“CVA”) related to interest rate contracts (“IRC”) and other derivatives; net gains on . Revenue – interest rate contracts and other derivatives transaction fees. sales of securities; gains on sale of fixed assets, and other income. . CVA – related to interest rate contracts and other derivatives. 19

1Q20: Operating Expense & Efficiency Adjusted* Noninterest Expense Noninterest Expense & Efficiency Ratio $165 70.0% $161 $160 $159 $161 180.0 $165.3 $160.8 $159.8 $158.6 $160.6 39.8% 160.0 38.0% 37.7% 38.3% 38.5% 26.7 26.8 24.8 26.8 24.2 15% 140.0 3.2 2.1 2.1 1.2 1% 4.5 2.6 6.0 6.1 4% 5.4 3.6 9.2 11.2 10.0 6% 120.0 9.7 9.9 17.3 17.1 11% 17.4 17.9 17.1 $100 0.0% 100.0 1Q19 2Q19 3Q19 4Q19 1Q20 Adj.* noninterest expense Adj.* efficiency ratio 80.0 $ inmillions 60.0 . 1Q20 total noninterest expense: $178.9mm, decrease 102.3 100.5 97.8 101.1 102.0 63% 40.0 of 7% Q-o-Q and decrease 4% Y-o-Y. . 1Q20 adj.* noninterest expense: $160.6mm, decrease of 20.0 3% Q-o-Q and flat Y-o-Y. Largest Q-o-Q decrease in 0.0 other operating expense. 1Q19 2Q19 3Q19 4Q19 1Q20 1Q20 Mix . 1Q20 compensation & employee benefits expense: Comp and employee benefits Occupancy & Equipment $102.0mm, increase of 1% Q-o-Q due to seasonally Computer software & Data processing Deposit & loan related higher payroll expenses in 1Q, and essentially flat Y-o-Y. Consulting Other operating expense . Essentially stable 5-quarter adj.* efficiency ratio range of 37.7% to 39.8%. *See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s Earnings Press Releases. 20

APPENDIX

Appendix: GAAP to Non-GAAP Reconciliation EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands, except per share data) (unaudited) During the first and fourth quarters of 2019, the Company recorded a $7.0 million pre-tax impairment charge and $1.6 million pre-tax impairment recovery related to the DC Solar tax credit investments (“DC Solar”), respectively. Management believes that presenting the computations of the adjusted net income, adjusted diluted earnings per common share, adjusted return on average assets and adjusted return on average equity that adjust for the above discussed non-recurring items provides clarity to financial statement users regarding the ongoing performance of the Company and allows comparability to prior periods. Three Months Ended March 31, 2020 December 31, 2019 March 31, 2019 Net income (a) $ 144,824 $ 188,215 $ 164,024 Add: Impairment charge related to DC Solar (1) — — 6,978 Less: Impairment recovery related to DC Solar (1) — (1,583) — Tax effect of adjustment (2) — 468 (2,063) Adjusted net income (b) $ 144,824 $ 187,100 $ 168,939 Diluted weighted-average number of shares outstanding 145,285 146,318 145,921 Diluted EPS $ 1.00 $ 1.29 $ 1.12 Diluted EPS impact of impairment charge related to DC Solar, net of tax — — 0.04 Diluted EPS impact of impairment recovery related to DC Solar, net of tax — (0.01) — Adjusted diluted EPS $ 1.00 $ 1.28 $ 1.16 Average total assets (c) $ 44,755,509 $ 44,471,242 $ 40,738,404 Average stockholders’ equity (d) $ 5,022,005 $ 4,977,759 $ 4,537,301 Return on average assets (3) (a)/(c) 1.30 % 1.68 % 1.63 % Adjusted return on average assets (3) (b)/(c) 1.30 % 1.67 % 1.68 % Return on average equity (3) (a)/(d) 11.60 % 15.00 % 14.66 % Adjusted return on average equity (3) (b)/(d) 11.60 % 14.91 % 15.10 % (1) Included in Amortization of tax credit and other investments on the Consolidated Statement of Income. (2) Applied statutory rates of 28.35% for the three months ended March 31, 2020, and 29.56% for each of the three months ended December 31, 2019 and March 31, 2019. (3) Annualized. 22

Appendix: GAAP to Non-GAAP Reconciliation EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Adjusted efficiency ratio represents adjusted noninterest expense divided by revenue. Adjusted pre-tax, pre-provision profitability ratio represents revenue less adjusted noninterest expense, divided by average total assets. Adjusted noninterest expense excludes the amortization of tax credit and other investments and the amortization of core deposit intangibles. Management believes that the measures and ratios presented below provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods. Three Months Ended March 31, 2020 December 31, 2019 March 31, 2019 Net interest income before provision for credit losses (a) $ 362,707 $ 368,219 $ 362,461 Total noninterest income 54,049 63,013 42,131 Total revenue (b) $ 416,756 $ 431,232 $ 404,592 Total noninterest expense (c) $ 178,876 $ 193,373 $ 186,922 Less: Amortization of tax credit and other investments (17,325) (27,038) (24,905) Amortization of core deposit intangibles (953) (1,044) (1,174) Adjusted noninterest expense (d) $ 160,598 $ 165,291 $ 160,843 Efficiency ratio (c)/(b) 42.92 % 44.84 % 46.20 % Adjusted efficiency ratio (d)/(b) 38.54 % 38.33 % 39.75 % Adjusted pre-tax, pre-provision income (b)-(d) = (e) $ 256,158 $ 265,941 $ 243,749 Average total assets (f) $ 44,755,509 $ 44,471,242 $ 40,738,404 Adjusted pre-tax, pre-provision profitability ratio (1) (e)/(f) 2.30 % 2.37 % 2.43 % Adjusted noninterest expense (1)/average assets (d)/(f) 1.44 % 1.47 % 1.60 % (1) Annualized. 23

Appendix: GAAP to Non-GAAP Reconciliation EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible equity and tangible equity to tangible assets ratio are non-GAAP financial measures. Tangible equity and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion. March 31, 2020 December 31, 2019 March 31, 2019 Stockholders’ equity (a) $ 4,902,985 $ 5,017,617 $ 4,591,930 Less: Goodwill (465,697) (465,697) (465,697) Other intangible assets (1) (14,769) (16,079) (21,109) Tangible equity (b) $ 4,422,519 $ 4,535,841 $ 4,105,124 Total assets (c) $ 45,948,545 $ 44,196,096 $ 42,091,433 Less: Goodwill (465,697) (465,697) (465,697) Other intangible assets (1) (14,769) (16,079) (21,109) Tangible assets (d) $ 45,468,079 $ 43,714,320 $ 41,604,627 Total stockholders’ equity to total assets ratio (a)/(c) 10.67 % 11.35 % 10.91 % Tangible equity to tangible assets ratio (b)/(d) 9.73 % 10.38 % 9.87 % (1) Includes core deposit intangibles and mortgage servicing assets. 24

Appendix: GAAP to Non-GAAP Reconciliation (cont’d) EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Adjusted return on average tangible equity represents adjusted tangible net income divided by average tangible equity. Adjusted tangible net income excludes the after-tax impacts of the amortization of core deposit intangibles and mortgage servicing assets, impairment charge/(recovery) and the reversal of certain previously claimed tax credits related to DC Solar (where applicable). Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion. Three Months Ended March 31, 2020 December 31, 2019 March 31, 2019 Net Income $ 144,824 $ 188,215 $ 164,024 Add: Amortization of core deposit intangibles 953 1,044 1,174 Amortization of mortgage servicing assets 584 567 324 Tax effect of adjustments (2) (436) (476) (443) Tangible net income (e) $ 145,925 $ 189,350 $ 165,079 Add: Impairment charge related to DC Solar (3) — — 6,978 Less: Impairment recovery related to DC Solar (3) — (1,583) — Tax effect of adjustment (2) — 468 (2,063) Adjusted tangible net income (f) $ 145,925 $ 188,235 $ 169,994 Average stockholders’ equity $ 5,022,005 $ 4,977,759 $ 4,537,301 Less: Average goodwill (465,697) (465,697) (465,559) Average other intangible assets (1) (15,588) (16,793) (21,860) Average tangible equity (g) $ 4,540,720 $ 4,495,269 $ 4,049,882 Return on average tangible equity (4) (e)/(g) 12.93 % 16.71 % 16.53 % Adjusted return on average tangible equity (4) (f)/(g) 12.93 % 16.61 % 17.02 % (1) Includes core deposit intangibles and mortgage servicing assets. (2) Applied statutory rates of 28.35% for the three months ended March 31, 2020, and 29.56% for each of the three months ended December 31, 2019 and March 31, 2019. (3) Included in Amortization of tax credit and other investments on the Consolidated Statement of Income. (4) Annualized. 25

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