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8-K

East West Bancorp Inc (EWBC)

8-K 2023-07-20 For: 2023-07-20
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)

July 20, 2023

EAST WEST BANCORP, INC.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)

000-24939

(Commission File Number)

95-4703316

(IRS Employer Identification No.)

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

(Address of principal executive offices) (Zip code)

(626) 768-6000

(Registrant’s telephone number, including area code)

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

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

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

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

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

Emerging growth company ☐

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

Item 2.02. Results of Operations and Financial Condition

On July 20, 2023, East West Bancorp, Inc. (the “Company”) announced its financial results for the quarter ended June 30, 2023. 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 July 20, 2023, the Company will hold a conference call to discuss its financial results for the quarter ended June 30, 2023 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

99.1 Press Release, dated July 20, 2023.
99.2 Presentation Materials, dated July 20, 2023.
104 Cover Page Interactive Data (formatted in Inline XBRL).

SIGNATURE

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

EAST WEST BANCORP, INC.
Date: July 20, 2023 By: /s/ Irene H. Oh
Irene H. Oh
Executive Vice President and Chief Financial Officer

3

Document

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

EAST WEST BANCORP REPORTS NET INCOME FOR SECOND QUARTER OF 2023

OF $312 MILLION AND DILUTED EARNINGS PER SHARE OF $2.20,

BOTH UP 21% YEAR-OVER-YEAR

Pasadena, California – July 20, 2023 – East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, reported its financial results for the second quarter of 2023. Second quarter 2023 net income was $312.0 million, or $2.20 per diluted share, up from $258.3 million, or $1.81 per diluted share in the prior year period. Year-over-year, net income and earnings per share both increased 21%.

“We are pleased with our operating performance for the second quarter, which continues the strong trajectory from the first quarter of 2023. For the second quarter of 2023, both deposits and loans grew 7% linked quarter annualized, to $55.7 billion and $49.8 billion, respectively,” stated Dominic Ng, Chairman and Chief Executive Officer of East West. “For the second quarter of 2023, we earned industry-leading returns of 1.85% on average assets and 21.0% on average tangible common equity1. Net interest margin was 3.55%, a healthy margin in the current environment, and asset quality continued to be outstanding with net charge-offs of 0.06% annualized.”

“We remain focused on ensuring both the strength and stability of our balance sheet, capital, liquidity and earnings power. Our tangible common equity ratio1 increased to 8.80% and our common equity tier 1 capital ratio increased to 13.17% as of June 30, 2023. We believe that through the strength of our diversified business model and the growth opportunities we see in our markets, we will continue to generate strong returns for shareholders, for the remainder of 2023 and for years to come,” concluded Ng.

FINANCIAL HIGHLIGHTS

Quarter Ended Quarter Ended
($ in millions, except per share data) June 30, 2023 June 30, 2022 $ %
Total Loans $49,831 46,531 $3,301 7%
Total Deposits 55,659 54,343 1,315 2
Total Revenue $645 551 $94 17%
Adj. Pre-tax, Pre-provision Income2 440 370 70 19
Net Income 312 258 54 21
Diluted Earnings per Share $2.20 1.81 $0.39 21%
Return on Average Assets 1.85% 1.66% +19 bps
Return on Average Common Equity 19.43% 18.23% +120 bps
Return on Avg. Tang. Common Equity1 21.01% 19.94% +107 bps

All values are in US Dollars.

1 Tangible common equity ratio and return on average tangible common equity are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 13.
2 Adjusted pre-tax, pre-provision income is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP financial measures in Tables 12.

BALANCE SHEET

•Total Assets – Total assets reached a record $68.5 billion as of June 30, 2023, an increase of $1.3 billion, or 2%, from $67.2 billion as of March 31, 2023.

Second quarter 2023 average interest-earning assets of $64.1 billion were up $2.6 billion, or 4%, from $61.5 billion in the first quarter of 2023. Quarter-over-quarter, average loans grew $701.9 million and average interest-bearing cash and deposits with banks increased $1.8 billion.

•Strong Capital Levels – As of June 30, 2023, stockholders’ equity was $6.5 billion, or $45.67 per share, both up 2% quarter-over-quarter. The stockholders’ equity to asset ratio was 9.43% as of June 30, 2023, an increase of five basis points quarter-over-quarter.

As of June 30, 2023, tangible book value3 per share was $42.33, up 3% quarter-over-quarter. The tangible common equity ratio3 was 8.80%, an increase of six basis points quarter-over-quarter.

All of East West’s regulatory capital ratios are well in excess of regulatory requirements for well-capitalized institutions, as well as above regional and national bank averages. The common equity tier 1 (“CET1”) capital ratio increased to 13.17%, and the total risk-based capital ratio increased to 14.60%, as of June 30, 2023.

•Total Loans – Total loans reached a record $49.8 billion as of June 30, 2023, an increase of $906.3 million, or 2%, from $48.9 billion as of March 31, 2023. Year-over-year, total loans grew $3.3 billion, or 7%, from $46.5 billion as of June 30, 2022.

Second quarter 2023 average loans of $48.9 billion grew $701.9 million, or 1.5%, from the first quarter of 2023. Growth in average residential mortgage and commercial real estate loans was partially offset by a decrease in average commercial and industrial loans.

•Total Deposits – Total deposits were $55.7 billion as of June 30, 2023, an increase of $921.4 million, or 2%, from $54.7 billion as of March 31, 2023. Noninterest-bearing deposits made up 30% of our total deposits as of June 30, 2023 compared with 33% as of March 31, 2023. Year-over-year, deposits increased $1.3 billion, or 2%, from $54.3 billion as of June 30, 2022.

Second quarter 2023 average deposits of $54.3 billion were down $669.0 million, or 1%, from the first quarter of 2023. During the second quarter, growth in average interest-bearing checking and time deposits was offset by declines in other deposit categories, which largely reflected customers seeking higher yields in a rising interest rate environment.

OPERATING RESULTS

Second Quarter Earnings – Second quarter 2023 net income was $312.0 million, and diluted earnings per share (“EPS”) were $2.20. Second quarter 2023 net income and EPS both decreased 3% from first quarter 2023 net income of $322.4 million and diluted EPS of $2.27. Second quarter 2023 net income and EPS both increased 21% from second quarter 2022 net income of $258.3 million and diluted EPS of $1.81.

Net income and diluted EPS for the six months ended June 30, 2023 were $634.5 million and $4.47, an increase of 28% and 29%, respectively, from the six months ended June 30, 2022.

3 Tangible book value and the tangible common equity ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 13.

Second Quarter 2023 Compared to First Quarter 2023

Net Interest Income and Net Interest Margin

Net interest income (“NII”) totaled $566.7 million, a decrease of 6% from $599.9 million. Net interest margin (“NIM”) of 3.55% declined 41 basis points from 3.96%.

•The change in NIM was primarily driven by a higher cost of interest-bearing deposits and changes in the deposit mix in favor of higher-cost deposits, partially offset by higher loan volumes and expanding interest-earning asset yields.

•The average loan yield was 6.33%, up 19 basis points from the first quarter. The average interest-earning asset yield was 5.67%, up 16 basis points from the first quarter.

•The average cost of funds was 2.31%, up 62 basis points from the first quarter. The average cost of deposits was 2.12%, up 52 basis points from the first quarter.

Noninterest Income

Noninterest income totaled $78.6 million in the second quarter, an increase of $18.7 million, or 31%, from $60.0 million in the first quarter.

•Fee income was $69.3 million, up $3.0 million, or 5%, from $66.3 million in the first quarter, reflecting growth across all fee income categories.

•Interest rate contracts and other derivative income was $7.4 million in the second quarter, up from $2.6 million in the first quarter. The change reflected both growth in customer-driven revenue and a favorable change in mark-to-market adjustments.

•Other investment income was $4.0 million for the second quarter, up $2.1 million from $1.9 million in the first quarter, reflecting higher income from Community Reinvestment Act investments during the second quarter.

Noninterest Expense

Noninterest expense totaled $261.8 million in the second quarter, compared with $218.4 million in the first quarter. Second quarter noninterest expense consisted of $205.4 million of adjusted noninterest expense4, $55.9 million in amortization of tax credit and other investments, and $0.5 million in amortization of core deposit intangibles.

•Adjusted noninterest expense of $205.4 million increased $1.4 million, or 1%, from $204.0 million in the first quarter.

•Compensation and employee benefits was $124.9 million, a decrease of $4.7 million, or 4%, largely due to higher seasonal costs in the first quarter.

•Amortization of tax credit and other investments totaled $55.9 million in the second quarter, compared with $10.1 million in the first quarter. Quarter-over-quarter variability in the amortization of tax credits and other investments primarily reflects the impact of investments that close in a given period and are projected to generate tax credits by the end of the year.

•The efficiency ratio was 40.6% in the second quarter, compared with 33.1% in the first quarter and the adjusted efficiency ratio4 was 31.8% in the second quarter, compared with 30.5% in the first quarter.

TAX RELATED ITEMS

Second quarter 2023 income tax expense was $45.6 million, and the effective tax rate was 12.7%, compared with 23.5% for the first quarter of 2023. The lower effective tax rate was mainly due to an additional $97 million of tax credits in renewable energy investments that closed during the second quarter. The effective tax rate for the first six months of 2023 was 18.6% compared with 22.4% for the first six months of 2022. We currently estimate that the full year tax rate for 2023 will be approximately 20%.

4 Adjusted noninterest expense and the adjusted efficiency ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 12.

ASSET QUALITY

The asset quality of our loan portfolio continues to be strong. Second quarter 2023 provision for credit losses was $26.0 million, compared with $20.0 million in the first quarter of 2023.

•The allowance for loan losses increased to $635.4 million, or 1.28% of loans held-for-investment (“HFI”), as of June 30, 2023, compared with $619.9 million, or 1.27% of loans HFI, as of March 31, 2023.

•Second quarter 2023 net charge-offs were $7.5 million or annualized 0.06% of average loans HFI, compared with $0.6 million or annualized 0.01% of average loans HFI, for the first quarter of 2023.

•The criticized loans ratio improved 24 basis points quarter-over-quarter to 1.63% of loans HFI as of June 30, 2023, compared with 1.87% as of March 31, 2023. Criticized loans decreased $102.3 million, or 11%, quarter-over-quarter to $811.8 million as of June 30, 2023, compared with $914.1 million as of March 31, 2023.

•The nonperforming assets ratio was 0.17% of total assets as of June 30, 2023, compared with 0.14% of total assets as of March 31, 2023. Nonperforming assets increased $22.1 million, or 24%, quarter-over-quarter to $115.5 million as of June 30, 2023, from $93.4 million as of March 31, 2023.

CAPITAL STRENGTH

Capital levels for East West are strong and all capital ratios expanded quarter-over-quarter and year-over-year. The following table presents the regulatory capital metrics as of June 30, 2023, March 31, 2023 and June 30, 2022.

EWBC Capital
($ in millions) June 30, 2023 (a) March 31, 2023 (a) June 30, 2022 (a)
Risk-Weighted Assets (“RWA”) (b) $51,689 $50,229 $48,499
Risk-based capital ratios:
CET1 capital ratio 13.17% 13.06% 11.97%
Tier 1 capital ratio 13.17% 13.06% 11.97%
Total capital ratio 14.60% 14.50% 13.25%
Leverage ratio 10.03% 10.02% 9.31%
Tangible common equity ratio (c) 8.80% 8.74% 8.29%

(a)The Company has elected to use the 2020 Current Expected Credit Losses (CECL) transition provision in the calculation of its June 30, 2023, March 31, 2023 and June 30, 2022 regulatory capital ratios. The Company’s June 30, 2023 regulatory capital ratios and RWA are preliminary.

(b)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.

(c)Tangible common equity ratio is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP measures in Table 13.

DIVIDEND PAYOUT AND CAPITAL ACTIONS

East West’s Board of Directors has declared third quarter 2023 dividends for the Company’s common stock. The common stock cash dividend of $0.48 per share is payable on August 15, 2023, to stockholders of record on August 1, 2023.

On March 3, 2020, East West’s Board of Directors authorized the repurchase of up to $500 million of East West’s common stock, of which $254 million remains available. East West did not repurchase any shares during the second quarter of 2023.

Conference Call

East West will host a conference call to discuss second quarter 2023 earnings with the public on Thursday, July 20, 2023, at 8:30 a.m. PT/11:30 a.m. ET. The public and investment community are invited to listen as management discusses second quarter 2023 results and operating developments.

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

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

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

•A replay of the conference call will be available on July 20, 2023, at 11:30 a.m. PT/2:30 p.m. ET through August 20, 2023. 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: 5177099.

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 $68.5 billion. The Company’s wholly-owned subsidiary, East West Bank, is the largest independent bank headquartered in Southern California, and operates over 120 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.

Forward-Looking Statements

Certain matters set forth herein (including any exhibits hereto) contain forward-looking statements that are intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. In addition, the Company may make forward-looking statements in other documents that it files with, or furnishes to, the U.S. Securities and Exchange Commission (“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 risks and uncertainties, including, but not limited to, those described below. 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.

There are various important factors that could cause future results to differ materially from historical performance and any forward-looking statements. Factors that might cause such differences, include, but are not limited to: changes in the global economy, including an economic slowdown, capital or financial market disruption, supply chain disruption, level of inflation, interest rate environment, housing prices, employment levels, rate of growth and general business conditions, which could result in, among other things, reduced demand for loans, reduced availability of funding or increased funding costs, declines in asset values and/or recognition of allowance for credit losses; changes in local, regional and global business, economic and political conditions and geopolitical events, such as Russia’s invasion of Ukraine; the soundness of other financial institutions and the impacts related to or resulting from recent bank failures and other economic and industry volatility, including potential increased regulatory requirements, Federal Deposit Insurance Corporation (“FDIC”) insurance premiums, losses in the value of our investment portfolio, deposit withdrawals, or other adverse consequences of negative market perceptions of the banking industry or the Company; changes in laws or the regulatory environment, including regulatory reform initiatives and policies of the U.S. Department of the Treasury, the Board of Governors of the Federal Reserve System (“Federal Reserve”), the FDIC, the SEC, the Consumer Financial Protection Bureau (“CFPB”), the California Department of Financial Protection and Innovation — Division of Financial Institutions, the China Banking and Insurance Regulatory Commission, the Hong Kong Monetary Authority, the Hong Kong Securities and Futures Commission, and the Monetary Authority of Singapore; changes and effects thereof in trade, monetary and fiscal policies and laws, including the ongoing trade, economic and political disputes between the U.S. and the People’s Republic of China and the monetary policies of the Federal Reserve; changes in the commercial and consumer real estate markets; changes in consumer or commercial spending, savings and borrowing habits, and patterns and behaviors; the impact from potential changes to income tax laws and regulations, federal spending and economic stimulus programs; the impact of any future U.S. federal government shutdown and uncertainty regarding the U.S. federal government’s debt limit and credit rating; 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; the impact on the Company’s funding costs, net interest income and net interest margin from changes in key variable market interest rates, competition, regulatory requirements and the Company’s product mix; changes in the Company’s costs of operation, compliance and expansion; the Company’s ability to adopt and successfully integrate new technologies into its business in a strategic manner; the impact of the benchmark interest rate reform in the U.S. including the transition away from the U.S. dollar (“USD”) London Interbank Offered Rate (“LIBOR”) to alternative reference rates; the impact of communications or technology 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 other similar matters which could result in, among other things, confidential and/or proprietary information being disclosed or misused, and materially impact the Company’s ability to provide services to its clients; the adequacy of the Company’s risk management framework, disclosure controls and procedures and internal control over financial reporting; future credit quality and performance, including the Company’s expectations regarding future credit losses and allowance levels; the impact of adverse changes to the Company’s credit ratings from major credit rating agencies; the impact of adverse judgments or settlements in litigation; the impact on the Company’s operations due to political developments, pandemics, wars, civil unrest, terrorism or other hostilities that may disrupt or increase volatility in securities or otherwise affect business and economic conditions; heightened regulatory and governmental oversight and scrutiny of the Company’s business practices, including dealings with consumers; the impact of reputational risk from negative publicity, fines, penalties and other negative consequences from regulatory violations, legal actions and the Company’s interactions with business partners, counterparties, service providers and other third parties; the impact of regulatory investigations and enforcement actions; changes in accounting standards as may be required by the Financial Accounting Standards Board (“FASB”) or other regulatory agencies and their impact on the Company’s critical accounting policies and assumptions; 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; any strategic acquisitions or divestitures; changes in the equity and debt securities markets; fluctuations in the Company’s stock price; fluctuations in foreign currency exchange rates; the impact of increased focus on social, environmental and sustainability matters, which may affect the Company’s operations as well as those of its customers and the economy more broadly; and the impact of climate change, natural or man-made disasters or calamities, such as wildfires, droughts, hurricanes, flooding and earthquakes or other events that may directly or indirectly result in a negative impact on the Company’s financial performance.

For a more detailed discussion of some of the factors that might cause such differences, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 under the heading Item 1A. Risk Factors and the information set forth under Item 1A. Risk Factors in the Company’s Quarterly Reports on Form 10-Q. 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.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
( and shares in thousands, except per share data)
(unaudited)
Table 1
June 30, 2023<br><br>% or Basis Point Change
June 30, 2023 March 31, 2023 June 30, 2022 Qtr-o-Qtr Yr-o-Yr
Assets
$ 614,053 $ 760,317 $ 688,936 (19.2) % (10.9) %
5,763,834 5,173,877 1,213,117 11.4 375.1
6,377,887 5,934,194 1,902,053 7.5 235.3
17,169 10,249 712,709 67.5 (97.6)
635,000 654,288 1,422,794 (2.9) (55.4)
5,987,258 6,300,868 6,255,504 (5.0) (4.3)
2,975,933 2,993,421 3,028,302 (0.6) (1.7)
2,830 6,861 28,464 (58.8) (90.1)
49,192,964 48,298,155 45,938,806 1.9 7.1
815,471 741,354 634,304 10.0 28.6
465,697 465,697 465,697 — —
100,500 103,114 107,588 (2.5) (6.6)
1,961,972 1,736,697 1,898,062 13.0 3.4
$ 68,532,681 $ 67,244,898 $ 62,394,283 1.9 % 9.8 %
Liabilities and Stockholders’ Equity
$ 55,658,786 $ 54,737,402 $ 54,343,354 1.7 % 2.4 %
4,500,000 4,500,000 — — 100.0
— — 174,776 — (100.0)
— — 611,785 — (100.0)
152,951 152,467 152,663 0.3 0.2
110,383 112,676 115,387 (2.0) (4.3)
1,648,864 1,433,022 1,386,836 15.1 18.9
62,070,984 60,935,567 56,784,801 1.9 9.3
6,461,697 6,309,331 5,609,482 2.4 15.2
$ 68,532,681 $ 67,244,898 $ 62,394,283 1.9 % 9.8 %
$ 45.67 $ 44.62 $ 39.81 2.4 % 14.7 %
$ 42.33 $ 41.28 $ 36.44 2.6 16.2
141,484 141,396 140,917 0.1 0.4
9.43 % 9.38 % 8.99 % 5 bps 44 bps
8.80 % 8.74 % 8.29 % 6 bps 51 bps

All values are in US Dollars.

(1)Tangible book value and the TCE ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 13.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
TOTAL LOANS AND DEPOSITS DETAIL
( in thousands)
(unaudited)
Table 2
June 30, 2023<br><br>% Change
June 30, 2023 March 31, 2023 June 30, 2022 Qtr-o-Qtr Yr-o-Yr
Loans:
Commercial:
$ 15,670,084 $ 15,641,840 $ 15,377,117 0.2 % 1.9 %
14,373,385 14,019,136 13,566,748 2.5 5.9
4,764,180 4,682,280 4,443,704 1.7 7.2
781,068 731,394 515,857 6.8 51.4
19,918,633 19,432,810 18,526,309 2.5 7.5
Consumer:
12,308,613 11,786,998 10,234,473 4.4 20.3
1,862,928 1,988,881 2,280,080 (6.3) (18.3)
14,171,541 13,775,879 12,514,553 2.9 13.2
68,106 67,519 84,097 0.9 (19.0)
Total loans HFI (1) 49,828,364 48,918,048 46,502,076 1.9 7.2
Loans HFS 2,830 6,861 28,464 (58.8) (90.1)
49,831,194 48,924,909 46,530,540 1.9 7.1
Allowance for loan losses (635,400) (619,893) (563,270) 2.5 12.8
$ 49,195,794 $ 48,305,016 $ 45,967,270 1.8 7.0
Deposits:
$ 16,741,099 $ 18,327,320 $ 23,028,831 (8.7) % (27.3) %
8,348,587 8,742,580 7,094,726 (4.5) 17.7
11,486,473 9,293,114 11,814,402 23.6 (2.8)
2,102,850 2,280,562 3,027,819 (7.8) (30.5)
16,979,777 16,093,826 9,377,576 5.5 81.1
$ 55,658,786 $ 54,737,402 $ 54,343,354 1.7 % 2.4 %

All values are in US Dollars.

(1)Includes $(74.0) million, $(75.4) million and $(56.2) million of net deferred loan fees and net unamortized premiums as of June 30, 2023, March 31, 2023 and June 30, 2022, respectively.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
( and shares in thousands, except per share data)
(unaudited)
Table 3
Three Months Ended June 30, 2023<br><br>% Change
June 30, 2023 March 31, 2023 June 30, 2022 Qtr-o-Qtr Yr-o-Yr
Interest and dividend income $ 906,134 $ 835,506 $ 499,754 8.5% 81.3%
Interest expense 339,388 235,645 26,802 44.0 NM
Net interest income before provision for credit losses 566,746 599,861 472,952 (5.5) 19.8
Provision for credit losses 26,000 20,000 13,500 30.0 92.6
Net interest income after provision for credit losses 540,746 579,861 459,452 (6.7) 17.7
Noninterest income 78,631 59,978 78,444 31.1 0.2
Noninterest expense 261,789 218,447 196,860 19.8 33.0
Income before income taxes 357,588 421,392 341,036 (15.1) 4.9
Income tax expense 45,557 98,953 82,707 (54.0) (44.9)
Net income $ 312,031 $ 322,439 $ 258,329 (3.2)% 20.8%
Earnings per share (“EPS”)
- Basic $ 2.21 $ 2.28 $ 1.83 (3.5)% 20.8%
- Diluted $ 2.20 $ 2.27 $ 1.81 (3.2) 21.2
Weighted-average number of shares outstanding
- Basic 141,468 141,112 141,429 0.3% 0.0%
- Diluted 141,876 141,913 142,372 0.0 (0.3)
Three Months Ended June 30, 2023<br><br>% Change
June 30, 2023 March 31, 2023 June 30, 2022 Qtr-o-Qtr Yr-o-Yr
Noninterest income:
$ 20,901 $ 20,586 $ 20,142 1.5% 3.8%
22,285 21,703 22,372 2.7 (0.4)
7,373 2,564 9,801 187.6 (24.8)
13,251 12,660 11,361 4.7 16.6
6,889 6,304 6,539 9.3 5.4
(7) (22) 917 NM NM
— (10,000) 28 NM (100.0)
4,003 1,921 4,863 108.4 (17.7)
3,936 4,262 2,421 (7.6) 62.6
Total noninterest income $ 78,631 $ 59,978 $ 78,444 31.1% 0.2%
Noninterest expense:
$ 124,937 $ 129,654 $ 113,364 (3.6)% 10.2%
16,088 15,587 15,469 3.2 4.0
8,262 7,910 4,927 4.5 67.7
10,559 9,609 5,671 9.9 86.2
3,213 3,347 3,486 (4.0) (7.8)
7,479 7,360 6,572 1.6 13.8
35,337 34,870 32,392 1.3 9.1
55,914 10,110 14,979 453.1 273.3
Total noninterest expense $ 261,789 $ 218,447 $ 196,860 19.8% 33.0%

All values are in US Dollars.

NM - Not meaningful.

(1)Includes $3.9 million of repurchase agreements’ extinguishment cost for the three months ended March 31, 2023.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
( and shares in thousands, except per share data)
(unaudited)
Table 4
Six Months Ended June 30, 2023<br><br>% Change
June 30, 2023 June 30, 2022 Yr-o-Yr
Interest and dividend income $ 1,741,640 $ 931,783 86.9%
Interest expense 575,033 43,218 NM
Net interest income before provision for credit losses 1,166,607 888,565 31.3
Provision for credit losses 46,000 21,500 114.0
Net interest income after provision for credit losses 1,120,607 867,065 29.2
Noninterest income 138,609 158,187 (12.4)
Noninterest expense 480,236 386,310 24.3
Income before income taxes 778,980 638,942 21.9
Income tax expense 144,510 142,961 1.1
Net income $ 634,470 $ 495,981 27.9%
EPS
- Basic $ 4.49 $ 3.50 28.3%
- Diluted $ 4.47 $ 3.47 28.8
Weighted-average number of shares outstanding
- Basic 141,291 141,725 (0.3)%
- Diluted 141,910 142,838 (0.6)
Six Months Ended June 30, 2023<br>% Change
June 30, 2023 June 30, 2022 Yr-o-Yr
Noninterest income:
$ 41,487 $ 39,580 4.8%
43,988 42,687 3.0
9,937 20,934 (52.5)
25,911 24,060 7.7
13,193 12,591 4.8
(29) 3,839 NM
(10,000) 1,306 NM
5,924 6,490 (8.7)
8,198 6,700 22.4
Total noninterest income $ 138,609 $ 158,187 (12.4)%
Noninterest expense:
$ 254,591 $ 229,633 10.9%
31,675 30,933 2.4
16,172 9,644 67.7
20,168 10,364 94.6
6,560 7,151 (8.3)
14,839 13,866 7.0
70,207 55,840 25.7
66,024 28,879 128.6
Total noninterest expense $ 480,236 $ 386,310 24.3%

All values are in US Dollars.

(1)Includes $3.9 million of repurchase agreements’ extinguishment cost for the six months ended June 30, 2023.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED AVERAGE BALANCES
( in thousands)
(unaudited)
Table 5
Three Months Ended June 30, 2023<br><br>% Change Six Months Ended June 30, 2023<br><br>% Change
June 30, 2023 March 31, 2023 June 30, 2022 Qtr-o-Qtr Yr-o-Yr June 30, 2023 June 30, 2022 Yr-o-Yr
Loans:
Commercial:
$ 15,244,826 $ 15,400,996 $ 14,986,876 (1.0)% 1.7% $ 15,322,480 $ 14,631,365 4.7%
14,130,811 13,932,758 13,049,058 1.4 8.3 14,032,331 12,666,338 10.8
4,685,786 4,600,094 4,112,411 1.9 13.9 4,643,177 3,931,993 18.1
782,541 675,047 475,933 15.9 64.4 729,091 434,657 67.7
19,599,138 19,207,899 17,637,402 2.0 11.1 19,404,599 17,032,988 13.9
Consumer:
12,014,513 11,417,477 9,624,242 5.2 24.8 11,717,644 9,369,132 25.1
1,928,208 2,050,778 2,290,378 (6.0) (15.8) 1,989,154 2,237,025 (11.1)
13,942,721 13,468,255 11,914,620 3.5 17.0 13,706,798 11,606,157 18.1
65,035 72,687 87,590 (10.5) (25.8) 68,840 105,888 (35.0)
$ 48,851,720 $ 48,149,837 $ 44,626,488 1.5% 9.5% $ 48,502,717 $ 43,376,398 11.8%
Interest-earning assets $ 64,061,569 $ 61,483,533 $ 58,668,677 4.2% 9.2% $ 62,779,673 $ 58,680,456 7.0%
Total assets $ 67,497,367 $ 65,113,604 $ 62,232,841 3.7% 8.5% $ 66,312,070 $ 61,996,756 7.0%
Deposits:
$ 16,926,937 $ 19,709,980 $ 23,887,452 (14.1)% (29.1)% $ 18,310,770 $ 23,661,355 (22.6)%
8,434,655 6,493,865 6,712,890 29.9 25.6 7,469,621 6,680,657 11.8
10,433,839 11,260,715 12,319,930 (7.3) (15.3) 10,844,993 12,614,994 (14.0)
2,200,124 2,436,587 2,970,007 (9.7) (25.9) 2,317,702 2,950,268 (21.4)
16,289,320 15,052,762 8,239,571 8.2 97.7 15,674,457 8,170,613 91.8
$ 54,284,875 $ 54,953,909 $ 54,129,850 (1.2)% 0.3% $ 54,617,543 $ 54,077,887 1.0%
Interest-bearing liabilities $ 42,026,844 $ 36,814,685 $ 30,957,475 14.2% 35.8% $ 39,435,162 $ 31,087,256 26.9%
Stockholders’ equity $ 6,440,996 $ 6,183,324 $ 5,682,427 4.2% 13.3% $ 6,312,872 $ 5,762,078 9.6%

All values are in US Dollars.

(1)Includes loans HFS.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
( in thousands)
(unaudited)
Table 6
Three Months Ended
June 30, 2023 March 31, 2023
Average Average Average Average
Balance Interest Yield/Rate (1) Balance Interest Yield/Rate (1)
Assets
Interest-earning assets:
$ 5,247,755 $ 60,995 4.66 % $ 3,449,626 $ 35,647 4.19 %
641,939 3,969 2.48 % 688,778 4,503 2.65 %
6,257,397 56,292 3.61 % 6,108,825 53,197 3.53 %
2,983,780 12,678 1.70 % 2,995,677 12,734 1.72 %
48,851,720 771,264 6.33 % 48,149,837 728,386 6.14 %
78,978 936 4.75 % 90,790 1,039 4.64 %
$ 64,061,569 $ 906,134 5.67 % $ 61,483,533 $ 835,506 5.51 %
Noninterest-earning assets:
569,227 621,104
(619,868) (602,754)
3,486,439 3,611,721
$ 67,497,367 $ 65,113,604
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
$ 8,434,655 $ 49,571 2.36 % $ 6,493,865 $ 23,174 1.45 %
10,433,839 86,419 3.32 % 11,260,715 76,102 2.74 %
2,200,124 3,963 0.72 % 2,436,587 3,669 0.61 %
16,289,320 147,524 3.63 % 15,052,762 113,849 3.07 %
4,500,566 49,032 4.37 % 811,551 8,825 4.41 %
1 — — % 500,000 6,430 5.22 %
15,579 211 5.43 % 106,785 1,052 4.00 %
152,760 2,668 7.01 % 152,420 2,544 6.77 %
$ 42,026,844 $ 339,388 3.24 % $ 36,814,685 $ 235,645 2.60 %
Noninterest-bearing liabilities and stockholders’ equity:
16,926,937 19,709,980
2,102,590 2,405,615
6,440,996 6,183,324
$ 67,497,367 $ 65,113,604
Interest rate spread 2.43 % 2.91 %
Net interest income and net interest margin $ 566,746 3.55 % $ 599,861 3.96 %

All values are in US Dollars.

(1)Annualized.

(2)Includes loans HFS.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
( in thousands)
(unaudited)
Table 7
Three Months Ended
June 30, 2023 June 30, 2022
Average Average Average Average
Balance Interest Yield/Rate (1) Balance Interest Yield/Rate (1)
Assets
Interest-earning assets:
$ 5,247,755 $ 60,995 4.66 % $ 2,797,711 $ 4,787 0.69 %
641,939 3,969 2.48 % 1,641,723 8,553 2.09 %
6,257,397 56,292 3.61 % 6,503,677 33,438 2.06 %
2,983,780 12,678 1.70 % 3,021,239 12,738 1.69 %
48,851,720 771,264 6.33 % 44,626,488 439,416 3.95 %
78,978 936 4.75 % 77,839 822 4.24 %
$ 64,061,569 $ 906,134 5.67 % $ 58,668,677 $ 499,754 3.42 %
Noninterest-earning assets:
569,227 712,884
(619,868) (545,489)
3,486,439 3,396,769
$ 67,497,367 $ 62,232,841
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
$ 8,434,655 $ 49,571 2.36 % $ 6,712,890 $ 3,178 0.19 %
10,433,839 86,419 3.32 % 12,319,930 8,892 0.29 %
2,200,124 3,963 0.72 % 2,970,007 1,864 0.25 %
16,289,320 147,524 3.63 % 8,239,571 8,554 0.42 %
4,500,566 49,032 4.37 % 64,145 241 1.51 %
1 — — % 138,960 559 1.61 %
15,579 211 5.43 % 359,778 2,418 2.70 %
152,760 2,668 7.01 % 152,194 1,096 2.89 %
$ 42,026,844 $ 339,388 3.24 % $ 30,957,475 $ 26,802 0.35 %
Noninterest-bearing liabilities and stockholders’ equity:
16,926,937 23,887,452
2,102,590 1,705,487
6,440,996 5,682,427
$ 67,497,367 $ 62,232,841
Interest rate spread 2.43 % 3.07 %
Net interest income and net interest margin $ 566,746 3.55 % $ 472,952 3.23 %

All values are in US Dollars.

(1)Annualized.

(2)Includes loans HFS.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
YEAR-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
( in thousands)
(unaudited)
Table 8
Six Months Ended
June 30, 2022
Average Average Average
Interest Yield/Rate(1) Balance Interest Yield/Rate(1)
Assets
Interest-earning assets:
Interest-bearing cash and deposits with banks $ 4,353,658 $ 96,642 4.48 % $ 3,627,253 $ 8,047 0.45 %
Resale agreements 665,229 8,472 2.57 % 1,868,600 16,936 1.83 %
AFS debt securities 6,183,522 109,489 3.57 % 7,232,686 67,907 1.89 %
HTM debt securities 2,989,695 25,412 1.71 % 2,497,811 20,936 1.69 %
Loans (2) 48,502,717 1,499,650 6.24 % 43,376,398 816,526 3.80 %
FHLB and FRB stock 84,852 1,975 4.69 % 77,708 1,431 3.71 %
Total interest-earning assets $ 62,779,673 $ 1,741,640 5.59 % $ 58,680,456 $ 931,783 3.20 %
Noninterest-earning assets:
Cash and due from banks 595,022 677,579
Allowance for loan losses (611,358) (544,423)
Other assets 3,548,733 3,183,144
Total assets $ 66,312,070 $ 61,996,756
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Checking deposits $ 7,469,621 $ 72,745 1.96 % $ 6,680,657 $ 4,580 0.14 %
Money market deposits 10,844,992 162,521 3.02 % 12,614,994 12,095 0.19 %
Savings deposits 2,317,702 7,632 0.66 % 2,950,268 3,568 0.24 %
Time deposits 15,674,457 261,373 3.36 % 8,170,613 15,234 0.38 %
Federal funds purchased and other short-term borrowings 2,666,249 57,857 4.38 % 33,177 250 1.52 %
FHLB advances 248,619 6,430 5.22 % 149,431 1,137 1.53 %
Repurchase agreements 60,931 1,263 4.18 % 336,013 4,434 2.66 %
Long-term debt and finance lease liabilities 152,591 5,212 6.89 % 152,103 1,920 2.55 %
Total interest-bearing liabilities $ 39,435,162 $ 575,033 2.94 % $ 31,087,256 $ 43,218 0.28 %
Noninterest-bearing liabilities and stockholders’ equity:
Demand deposits 18,310,770 23,661,355
Accrued expenses and other liabilities 2,253,266 1,486,067
Stockholders’ equity 6,312,872 5,762,078
Total liabilities and stockholders’ equity $ 66,312,070 $ 61,996,756
Interest rate spread 2.65 % 2.92 %
Net interest income and net interest margin $ 1,166,607 3.75 % $ 888,565 3.05 %

All values are in US Dollars.

(1)Annualized.

(2)Includes loans HFS.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED RATIOS
(unaudited)
Table 9
Three Months Ended (1) June 30, 2023<br><br>Basis Point Change
June 30, 2023 March 31, 2023 June 30, 2022 Qtr-o-Qtr Yr-o-Yr
Return on average assets 1.85 % 2.01 % 1.66 % (16) bps 19 bps
Adjusted return on average assets (2) 1.85 % 2.05 % 1.66 % (20) 19
Return on average common equity 19.43 % 21.15 % 18.23 % (172) 120
Adjusted return on average common equity (2) 19.43 % 21.61 % 18.23 % (218) 120
Return on average TCE (3) 21.01 % 22.94 % 19.94 % (193) 107
Adjusted return on average TCE (3) 21.01 % 23.44 % 19.94 % (243) 107
Interest rate spread 2.43 % 2.91 % 3.07 % (48) (64)
Net interest margin 3.55 % 3.96 % 3.23 % (41) 32
Average loan yield 6.33 % 6.14 % 3.95 % 19 238
Yield on average interest-earning assets 5.67 % 5.51 % 3.42 % 16 225
Average cost of interest-bearing deposits 3.09 % 2.49 % 0.30 % 60 279
Average cost of deposits 2.12 % 1.60 % 0.17 % 52 195
Average cost of funds 2.31 % 1.69 % 0.20 % 62 211
Adjusted pre-tax, pre-provision profitability ratio (4) 2.61 % 2.90 % 2.38 % (29) 23
Adjusted noninterest expense/average assets (4) 1.22 % 1.27 % 1.17 % (5) 5
Efficiency ratio 40.56 % 33.11 % 35.70 % 745 486
Adjusted efficiency ratio (4) 31.83 % 30.46 % 32.90 % 137 bps (107) bps
Six Months Ended (1) June 30, 2023<br>Basis Point Change
June 30, 2023 June 30, 2022 Yr-o-Yr
Return on average assets 1.93 % 1.61 % 32 bps
Adjusted return on average assets (2) 1.95 % 1.61 % 34
Return on average common equity 20.27 % 17.36 % 291
Adjusted return on average common equity (2) 20.49 % 17.36 % 313
Return on average TCE (3) 21.95 % 18.96 % 299
Adjusted return on average TCE (3) 22.19 % 18.96 % 323
Interest rate spread 2.65 % 2.92 % (27)
Net interest margin 3.75 % 3.05 % 70
Average loan yield 6.24 % 3.80 % 244
Yield on average interest-earning assets 5.59 % 3.20 % 239
Average cost of interest-bearing deposits 2.80 % 0.24 % 256
Average cost of deposits 1.86 % 0.13 % 173
Average cost of funds 2.01 % 0.16 % 185
Adjusted pre-tax, pre-provision profitability ratio (4) 2.75 % 2.25 % 50
Adjusted noninterest expense/average assets (4) 1.25 % 1.16 % 9
Efficiency ratio 36.79 % 36.91 % (12)
Adjusted efficiency ratio (4) 31.13 % 34.05 % (292) bps

(1)Annualized except for efficiency ratio.

(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 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 measures in Table 13.

(4)Adjusted pre-tax, pre-provision profitability ratio, adjusted noninterest expense/average assets and the adjusted efficiency ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 12.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE SHEET CREDIT EXPOSURES
( in thousands)
(unaudited)
Table 10
Three Months Ended June 30, 2023
Commercial Consumer
C&I Total CRE Total Residential Mortgage Other Consumer Total
Allowance for loan losses, March 31, 2023 $ 376,325 $ 188,915 $ 52,978 $ 1,675 $ 619,893
Provision for (reversal of) credit losses on loans 5,259 16,076 3,057 (367) 24,025
Gross charge-offs (7,335) (2,366) (6) (48) (9,755)
Gross recoveries 2,065 143 10 — 2,218
Total net (charge-offs) recoveries (5,270) (2,223) 4 (48) (7,537)
Foreign currency translation adjustment (981) — — — (981)
Allowance for loan losses, June 30, 2023 $ 375,333 $ 202,768 $ 56,039 $ 1,260 $ 635,400

All values are in US Dollars.

Three Months Ended March 31, 2023
Commercial Consumer
C&I Total CRE Total Residential Mortgage Other Consumer Total
Allowance for loan losses, December 31, 2022 $ 371,700 $ 182,346 $ 40,039 $ 1,560 $ 595,645
Impact of ASU 2022-02 adoption 5,683 343 2 — 6,028
Allowance for loan losses, January 1, 2023 $ 377,383 $ 182,689 $ 40,041 $ 1,560 $ 601,673
(Reversal of) provision for credit losses on loans (a) (678) 6,021 13,022 155 18,520
Gross charge-offs (1,900) (6) (91) (40) (2,037)
Gross recoveries 1,211 211 6 — 1,428
Total net (charge-offs) recoveries (689) 205 (85) (40) (609)
Foreign currency translation adjustment 309 — — — 309
Allowance for loan losses, March 31, 2023 $ 376,325 $ 188,915 $ 52,978 $ 1,675 $ 619,893
Three Months Ended June 30, 2022
--- --- --- --- --- ---
Commercial Consumer
C&I Total CRE Total Residential Mortgage Other Consumer Total
Allowance for loan losses, March 31, 2022 $ 339,446 $ 182,296 $ 21,958 $ 1,985 $ 545,685
Provision for (reversal of) credit losses on loans (a) 19,030 (9,181) 3,122 (502) 12,469
Gross charge-offs (240) (679) (193) (34) (1,146)
Gross recoveries 6,514 1,043 173 — 7,730
Total net recoveries (charge-offs) 6,274 364 (20) (34) 6,584
Foreign currency translation adjustment (1,468) — — — (1,468)
Allowance for loan losses, June 30, 2022 $ 363,282 $ 173,479 $ 25,060 $ 1,449 $ 563,270
EAST WEST BANCORP, INC. AND SUBSIDIARIES
--- --- --- --- ---
ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE-SHEET CREDIT EXPOSURES
( in thousands)
(unaudited)
Table 10 (continued)
Six Months Ended June 30, 2023
Commercial Consumer
C&I Total CRE Total Residential Mortgage Other Consumer Total
Allowance for loan losses, December 31, 2022 $ 371,700 $ 182,346 $ 40,039 $ 1,560 $ 595,645
Impact of ASU 2022-02 adoption 5,683 343 2 — 6,028
Allowance for loan losses, January 1, 2023 $ 377,383 $ 182,689 $ 40,041 $ 1,560 $ 601,673
Provision for (reversal of) credit losses on loans 4,581 22,097 16,079 (212) 42,545
Gross charge-offs (9,235) (2,372) (97) (88) (11,792)
Gross recoveries 3,276 354 16 — 3,646
Total net charge-offs (5,959) (2,018) (81) (88) (8,146)
Foreign currency translation adjustment (672) — — — (672)
Allowance for loan losses, June 30, 2023 $ 375,333 $ 202,768 $ 56,039 $ 1,260 $ 635,400

All values are in US Dollars.

Six Months Ended June 30, 2022
Commercial Consumer
C&I Total CRE Total Residential Mortgage Other Consumer Total
Allowance for loan losses, December 31, 2021 $ 338,252 $ 180,808 $ 20,595 $ 1,924 $ 541,579
Provision for (reversal of) credit losses on loans (a) 28,292 (7,523) 4,347 (395) 24,721
Gross charge-offs (11,428) (1,078) (193) (80) (12,779)
Gross recoveries 9,516 1,272 311 — 11,099
Total net (charge-offs) recoveries (1,912) 194 118 (80) (1,680)
Foreign currency translation adjustment (1,350) — — — (1,350)
Allowance for loan losses, June 30, 2022 $ 363,282 $ 173,479 $ 25,060 $ 1,449 $ 563,270
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- ---
June 30,<br>2023 March 31,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Unfunded Credit Facilities
Allowance for unfunded credit commitments, beginning of period (1) $ 27,741 $ 26,264 $ 23,262 $ 26,264 $ 27,514
Provision for (reversal of) credit losses on unfunded credit commitments (b) 1,975 1,480 1,031 3,455 (3,221)
Foreign currency translation adjustment 12 (3) 11 9 11
Allowance for unfunded credit commitments, end of period (1) $ 29,728 $ 27,741 $ 24,304 $ 29,728 $ 24,304
Provision for credit losses (a)+(b) $ 26,000 $ 20,000 $ 13,500 $ 46,000 $ 21,500

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

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CRITICIZED LOANS, NONPERFORMING ASSETS AND CREDIT QUALITY RATIOS
( in thousands)
(unaudited)
Table 11
Criticized Loans March 31, 2023 June 30, 2022
Special mention loans 330,741 $ 461,356 $ 590,227
Classified loans 452,715 432,414
Total criticized loans (1) 811,792 $ 914,071 $ 1,022,641
Nonperforming Assets March 31, 2023 June 30, 2022
Nonaccrual loans:
Commercial:
C&I 61,879 $ 43,747 $ 40,053
Total CRE 19,427 12,742
Consumer:
Total residential mortgage 29,585 37,129
Other consumer 366 11
Total nonaccrual loans 93,125 89,935
Other real estate owned, net 270 —
Total nonperforming assets 115,533 $ 93,395 $ 89,935
Credit Quality Ratios March 31, 2023 June 30, 2022
Annualized quarterly net charge-offs (recoveries) to average loans HFI % 0.01 % (0.06) %
Special mention loans to loans HFI % 0.94 % 1.27 %
Classified loans to loans HFI % 0.93 % 0.93 %
Criticized loans to loans HFI % 1.87 % 2.20 %
Nonperforming assets to total assets % 0.14 % 0.14 %
Nonaccrual loans to loans HFI % 0.19 % 0.19 %
Allowance for loan losses to loans HFI % 1.27 % 1.21 %

All values are in US Dollars.

(1)Excludes loans HFS.

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. Adjusted efficiency ratio represents adjusted noninterest expense divided by adjusted revenue. Adjusted pre-tax, pre-provision profitability ratio represents total adjusted revenue less adjusted noninterest expense, divided by average total assets. Adjusted revenue excludes the write-off of an AFS debt security (where applicable). Adjusted noninterest expense excludes the amortization of tax credit and other investments, the amortization of core deposit intangibles and the repurchase agreements’ extinguishment cost (where applicable). 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 Six Months Ended
June 30, 2023 March 31, 2023 June 30, 2022 June 30, 2023 June 30, 2022
Net interest income before provision for credit losses $ 566,746 $ 599,861 $ 472,952 $ 1,166,607 $ 888,565
Total noninterest income 78,631 59,978 78,444 138,609 158,187
Total revenue $ 645,377 $ 659,839 $ 551,396 $ 1,305,216 $ 1,046,752
Noninterest income 78,631 59,978 78,444 138,609 158,187
Add: Write-off of AFS debt security — 10,000 — 10,000 —
Adjusted noninterest income 78,631 69,978 78,444 148,609 158,187
Adjusted revenue $ 645,377 $ 669,839 $ 551,396 $ 1,315,216 $ 1,046,752
Total noninterest expense $ 261,789 $ 218,447 $ 196,860 $ 480,236 $ 386,310
Less: Amortization of tax credit and other investments (55,914) (10,110) (14,979) (66,024) (28,879)
Amortization of core deposit intangibles (440) (441) (488) (881) (999)
Repurchase agreements’ extinguishment cost — (3,872) — (3,872) —
Adjusted noninterest expense $ 205,435 $ 204,024 $ 181,393 $ 409,459 $ 356,432
Efficiency ratio 40.56 % 33.11 % 35.70 % 36.79 % 36.91 %
Adjusted efficiency ratio 31.83 % 30.46 % 32.90 % 31.13 % 34.05 %
Adjusted pre-tax, pre-provision income $ 439,942 $ 465,815 $ 370,003 $ 905,757 $ 690,320
Average total assets $ 67,497,367 $ 65,113,604 $ 62,232,841 $ 66,312,070 $ 61,996,756
Adjusted pre-tax, pre-provision profitability ratio (1) 2.61 % 2.90 % 2.38 % 2.75 % 2.25 %
Adjusted noninterest expense/average assets (1) 1.22 % 1.27 % 1.17 % 1.25 % 1.16 %

All values are in US Dollars.

(1)Annualized.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
( in thousands)
(unaudited)
Table 13
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible 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 other intangible assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.
June 30, 2023 March 31, 2023 June 30, 2022
Stockholders’ equity $ 6,461,697 $ 6,309,331 $ 5,609,482
Less: Goodwill (465,697) (465,697) (465,697)
Other intangible assets (1) (6,418) (7,201) (8,537)
Tangible book value $ 5,989,582 $ 5,836,433 $ 5,135,248
Number of common shares at period-end 141,484 141,396 140,917
Book value per share $ 45.67 $ 44.62 $ 39.81
Tangible book value per share $ 42.33 $ 41.28 $ 36.44
Total assets $ 68,532,681 $ 67,244,898 $ 62,394,283
Less: Goodwill (465,697) (465,697) (465,697)
Other intangible assets (1) (6,418) (7,201) (8,537)
Tangible assets $ 68,060,566 $ 66,772,000 $ 61,920,049
Total stockholders’ equity to assets ratio 9.43 % 9.38 % 8.99 %
TCE ratio 8.80 % 8.74 % 8.29 %

All values are in US Dollars.

Return on average TCE represents tangible net income divided by average tangible book value. Adjusted return on average TCE represents adjusted tangible net income divided by average tangible book value. Tangible net income excludes the after-tax impacts of the amortization of core deposit intangibles and mortgage servicing assets. Adjusted tangible net income excludes the after-tax impacts of the tangible net income adjustments and the write-off of an AFS debt security. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.
Three Months Ended Six Months Ended
June 30, 2023 March 31, 2023 June 30, 2022 June 30, 2023 June 30, 2022
Net income (e) $ 312,031 $ 322,439 $ 258,329 $ 634,470 $ 495,981
Add: Amortization of core deposit intangibles 440 441 488 881 999
Amortization of mortgage servicing assets 342 356 364 698 756
Tax effect of amortization adjustments (2) (230) (233) (245) (463) (505)
Tangible net income (f) $ 312,583 $ 323,003 $ 258,936 $ 635,586 $ 497,231
Add: Write-off of AFS debt security — 10,000 — 10,000 —
Tax effect of write-off (2) — (2,929) — (2,929) —
Adjusted tangible net income (g) $ 312,583 $ 330,074 $ 258,936 $ 642,657 $ 497,231
Average stockholders’ equity (h) $ 6,440,996 $ 6,183,324 $ 5,682,427 $ 6,312,872 $ 5,762,078
Less: Average goodwill (465,697) (465,697) (465,697) (465,697) (465,697)
Average other intangible assets (1) (6,921) (7,696) (8,827) (7,306) (9,016)
Average tangible book value (i) $ 5,968,378 $ 5,709,931 $ 5,207,903 $ 5,839,869 $ 5,287,365
Return on average common equity (3) (e)/(h) 19.43 % 21.15 % 18.23 % 20.27 % 17.36 %
Return on average TCE (3) (f)/(i) 21.01 % 22.94 % 19.94 % 21.95 % 18.96 %
Adjusted return on average TCE (3) (g)/(i) 21.01 % 23.44 % 19.94 % 22.19 % 18.96 %

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

(2)Applied statutory tax rate of 29.29% for the three and six months ended June 30, 2023, and the three months ended March 31, 2023. Applied statutory tax rate of 28.77% for the three and six months ended June 30, 2022.

(3)Annualized.

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
( and shares in thousands, except for per share data)
(unaudited)
Table 14
During the first quarter of 2023, the Company recorded a 10.0 million pre-tax impairment write-off of an AFS debt security. 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 common equity that adjust for the above discussed non-recurring item provide clarity to financial statement users regarding the ongoing performance of the Company and allows comparability to prior periods.
Three Months Ended
June 30, 2023 March 31, 2023 June 30, 2022
Net income $ 312,031 $ 322,439 $ 258,329
Add: Write-off of AFS debt security — 10,000 —
Tax effect of write-off (1) — (2,929) —
Adjusted net income $ 312,031 $ 329,510 $ 258,329
Diluted weighted-average number of shares outstanding 141,876 141,913 142,372
Diluted EPS $ 2.20 $ 2.27 $ 1.81
Add: Write-off of AFS debt security — 0.05 —
Adjusted diluted EPS $ 2.20 $ 2.32 $ 1.81
Average total assets $ 67,497,367 $ 65,113,604 $ 62,232,841
Average stockholders’ equity $ 6,440,996 $ 6,183,324 $ 5,682,427
Return on average assets (2) 1.85 % 2.01 % 1.66 %
Adjusted return on average assets (2) 1.85 % 2.05 % 1.66 %
Return on average common equity (2) 19.43 % 21.15 % 18.23 %
Adjusted return on average common equity (2) 19.43 % 21.61 % 18.23 %
Six Months Ended
June 30, 2023 June 30, 2022
Net income 634,470 $ 495,981
Add: Write-off of AFS debt security 10,000 —
Tax effect of write-off (1) (2,929) —
Adjusted net income $ 641,541 $ 495,981
Diluted weighted-average number of shares outstanding 141,910 142,838
Diluted EPS $ 4.47 $ 3.47
Add: Write-off of AFS debt security 0.05 —
Adjusted diluted EPS $ 4.52 $ 3.47
Average total assets $ 66,312,070 $ 61,996,756
Average stockholders’ equity $ 6,312,872 $ 5,762,078
Return on average assets (2) 1.93 % 1.61 %
Adjusted return on average assets (2) 1.95 % 1.61 %
Return on average common equity (2) 20.27 % 17.36 %
Adjusted return on average common equity (2) 20.49 % 17.36 %

All values are in US Dollars.

(1)Applied statutory tax rate of 29.29% for the three months ended March 31, 2023 and the six months ended June 30, 2023.

(2)Annualized.

20

ewbc2q23earningspresenta

EWBC Earnings Results Second Quarter 2023 July 20, 2023

Forward-Looking Statements 2 Forward-Looking Statements This presentation contains forward-looking statements that are intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of the management of East West Bancorp, Inc. (the “Company”) and are subject to significant risks and uncertainties. You should not place undue reliance on these statements. Factors that could cause the Company’s actual results to differ materially from those described in the forward-looking statements include, among others, changes in the U.S. economy or local, regional and global business, economic and political conditions and geopolitical events; the soundness of other financial institutions and the impacts related to or resulting from recent bank failures and other economic and industry volatility; changes in laws or the regulatory environment, including trade, monetary and fiscal policies and laws; and changes in the commercial and consumer real estate markets and in consumer spending and savings habits. These factors also consist of those contained in the Company’s filings with the Securities and Exchange Commission, including the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make. These statements speak only as of the date they are made and are based only on information then actually known to the Company. The Company does not undertake to update any forward-looking statements except as required by law. Non-GAAP Financial Measures Certain financial information in this presentation has not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and is presented on a non-GAAP basis. Investors should refer to the reconciliations included in this presentation and should consider the Company’s non-GAAP measures in addition to, not as a substitute for or superior to, measures prepared in accordance with GAAP. These measures may not be comparable to similarly titled measures used by other companies.

Highlights of Second Quarter 2023 3 Return on Average Assets Adjusted Pre-Tax, Pre-Provision Income* & Profitability Ratio* Return on Average Tangible Common Equity* Return on Average Common Equity Adj. PTPP income* Adj. PTPP profitability ratio* $ i n m ill io n s * See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases. 1.66% 2.01% 1.85% 2Q22 1Q23 2Q23 18.2% 21.1% 19.4% 2Q22 1Q23 2Q23 $370 $466 $440 2.38% 2.90% 2.61% $100 $180 $260 $340 $420 $500 2Q22 1Q23 2Q23 19.9% 22.9% 21.0% 2Q22 1Q23 2Q23 2Q23 Net Income $312.0 million 2Q23 Diluted EPS $2.20 2Q23 Revenue $645.4 million Record Loans $49.8 billion Total Deposits $55.7 billion Tangible Book Value*/Share $42.33

4 06.30.23: Strong, Well-Diversified Balance Sheet Record Loans: $49.8 billion (as of 06.30.23) C&I Resi. mortgage & other consumerTotal CRE IB Checking & SavingsMMDADDA Time Total Deposits: $55.7 billion (as of 06.30.23) * See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases. $15.7 31% $19.9 40% $14.2 29% $ i n b ill io n s $ i n b ill io n s % Change $ in millions, except per share data 06.30.23 03.31.23 06.30.22 LQA Y-o-Y Cash and cash equivalents & ST investments $ 6,395 $ 5,944 $ 2,615 30% 145% Repo assets 635 654 1,423 -12% -55% AFS debt securities 5,987 6,301 6,256 -20% -4% HTM debt securities 2,976 2,993 3,028 -2% -2% Total Loans $ 49,831 $ 48,925 $ 46,531 7% 7% Allowance for loan losses (ALLL) (635) (620) (563) 10% 13% Net Loans $ 49,196 $ 48,305 $ 45,968 7% 7% Other assets 3,344 3,048 3,104 39% 8% Total Assets $ 68,533 $ 67,245 $ 62,394 8% 10% Customer deposits $ 55,659 $ 54,737 $ 54,343 7% 2% Borrowings & repo funding 4,500 4,500 787 NM 472% Long-term debt & finance lease liab. 153 152 153 NM NM Other liabilities 1,759 1,547 1,502 55% 17% Total Liabilities $ 62,071 $ 60,936 $ 56,785 7% 9% Total Stockholders' Equity $ 6,462 $ 6,309 $ 5,609 10% 15% Change 06.30.23 03.31.23 06.30.22 Q-o-Q Y-o-Y Book value per share $ 45.67 $ 44.62 $ 39.81 $ 1.05 $ 5.86 Tangible book value* per share $ 42.33 $ 41.28 $ 36.44 $ 1.05 $ 5.89 Tangible common equity ratio* 8.80% 8.74% 8.29% 6 bps 51 bps Loans to deposits ratio 89.5% 89.4% 85.6% 0.1% 3.9% $16.7 30% $11.5 21% $10.5 19% $17.0 30%

06.30.23: Strong Capital Ratios 5 ** See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases. CET1 Capital Ratio Tangible Common Equity Ratio** Total Capital Ratio Leverage Ratio Well-cap. Req.: 6.5% +118 bps -196 bps +108 bps +4 bps +92 bps -51 bps -196 bps -139 bps Well-cap. Req.: 10.0% Well-cap. Req.: 5.0% * Pro-forma ratios as of 06.30.23 reflect (a) inclusion of on- and off-balance sheet allowance not already in capital; (b) treatment of HTM securities as if they were AFS, with unrealized losses in AOCI; and (c) removal of the AOCI opt-out in calculating regulatory capital. Note: the Company has elected to use the 2020 CECL transition provision in the calculation of its June 30, 2023 regulatory capital ratios. The Company’s June 30, 2023 regulatory capital ratios are preliminary. 13.06% 13.17% 14.00% 14.50% 12.39% 12.68% 9.80% 10.02% 8.66% 8.74% 9.37% 12.68% EWBC 12.31.22 EWBC 03.31.23 EWBC 06.30.23 Proforma 06.30.23 Add: ALLL Adjust: AOCI EWBC 12.31.22 EWBC 03.31.23 EWBC 06.30.23 Proforma 06.30.23 Add: ALLL Adjust: AOCI EWBC 12.31.22 EWBC 03.31.23 EWBC 06.30.23 Proforma 06.30.23 Add: ALLL Adjust: AOCI EWBC 12.31.22 EWBC 03.31.23 EWBC 06.30.23 Proforma 06.30.23 Add: ALLL Adjust: AOCI 8.80% 14.60% 10.03% 9.56% All capital ratios increased QoQ. EWBC’s capital ratios are some of the highest among regional banks. ▪ Book value/share as of 06.30.23: $45.67, and stockholders’ equity to assets: 9.43%. ▪ Tangible book value**/share as of 06.30.23: $42.33, +3% Q-o-Q. ▪ Tangible common equity ratio** as of 06.30.23: 8.80%, +6 bps Q-o-Q. Pro-forma capital very strong. Hypothetical adjustments for AFS + HTM security marks and on- and off- balance sheet allowance (not already reflected in equity) still results in very strong capital ratios. No buybacks during 2Q23. Capital return in 3Q23: quarterly common stock dividend of $0.48/share, equivalent to $1.92 per share annualized.

Total CRE 40% Total Resi. Mortgage & Other Consumer 29% C&I 31% 6 06.30.23: Diversified Commercial Loan Portfolio ▪ C&I loans: $15.7bn loans O/S plus $8.2bn undisbursed commitments: $23.9bn total commitments as of 06.30.23. ▪ Growth: total commitments: +15% LQA & +9% Y-o-Y. ▪ Growth: loans outstanding: +1% LQA & +2% Y-o-Y. ▪ Portfolio well-diversified by industry. ▪ Utilization: 65.5% as of 06.30.23, vs. 68% as of 03.31.23. ▪ China loans O/S (mainland + Hong Kong): $2.11bn as of 06.30.23, down 11% LQA from $2.16bn as of 03.31.23. Portfolio primarily consists of C&I loans, well-diversified by industry. Total Loans: C&I Loans by Industry as % of Total Loans Outstanding $15.7bn$49.8 billion Total Loans 5% 10% Private Equity Tech & Telecom: 1%; Hospitality & Leisure:1% Food Production & Distribution: 1%; Oil & Gas: 1%; Healthcare Services: 1% All Other C&I } 4% 3% 2% 2% Media & Entertainment Infrastructure & Clean Energy General Manufacturing & Wholesale Real Estate Investment & Management

C&I 31% MFR, 9.6% Retail, 8.4% Industrial, 7.6% Office, 4.7% Hotel, 4.5% Healthcare, 1.7% All other CRE, 1.9% Const. & Land, 1.6% Total Resi. Mortgage & Other Consumer 29% Total CRE 40% SoCal 50% NorCal 20% TX 8% NY 5% WA 3% Other 14% 06.30.23: Diversified Commercial Real Estate Portfolio 7 Total Loans: Total CRE Loans by Property Type as % of Total Loans Outstanding ▪ Total CRE loans: $19.9bn loans O/S as of 06.30.23. ▪ Growth: +10% LQA and +7.5% Y-o-Y. ▪ Portfolio well-diversified by property type. ▪ Geographic distribution reflects EWBC’s branch footprint. ▪ Construction & land loans: $781mm, or 2% of total loans. Total construction & land exposure of $1.5bn: loans O/S plus $755mm in undisbursed commitments. $19.9 billion Total CRE Loans Total CRE: Distribution by Geography $19.9bn$49.8 billion Total Loans

<=50% 42% >50% to 55% 16% >55% to 60% 17% >60% to 65% 15% >65% to 70% 6% >70% 4% 06.30.23: Low LTV Commercial Real Estate Portfolio Total CRE: Distribution by LTV1 8 CRE Size & LTV by Property Type ▪ High percentage of CRE loans have full recourse & personal guarantees from individuals or guarantors with substantial net worth. ▪ Many of our customers have long-term relationships with East West Bank. $2.9 million Avg. size of loan outstanding 51% Avg. LTV1 1Weighted average LTV is based on most recent LTV, using most recent available appraisal and current loan commitment. 2Construction & Land avg. size based on total commitment. ($ in millions) Total Portfolio Size Weighted Avg. LTV1 Average Loan Size Multifamily 4,764$ 52% 1.7$ Retail 4,203$ 48% 2.5$ Industrial 3,798$ 48% 3.2$ Office 2,354$ 52% 4.2$ Hotel 2,249$ 53% 9.4$ Healthcare 844$ 56% 4.3$ Other 926$ 49% 3.2$ Construction & Land2 781$ 54% 13.9$ Total CRE 19,919$ 51% 2.9$

06.30.23: CRE Office – Additional Information 9 CRE Office by Size Segment CRE Office: Geographic Mix by Metro Area Loan size Balance ($ in mm) No. of Loans Avg. loan size ($ in mm) LTV >$30mm $ 259 6 $ 43.1 56% $20mm - $30mm $ 480 19 $ 25.2 52% $10mm - $20mm $ 581 40 $ 14.5 55% $5mm - $10mm $ 466 62 $ 7.5 52% <$5mm $ 568 432 $ 1.3 47% Total $ 2,354 559 $ 4.2 52% SoCal TexasNorCal New York & New Jersey Washington Other Regions Other Los Angeles County Downtown Los Angeles Other SoCalOther Bay Area San Francisco Other CA: 2% Dallas Houston New Jersey: 2% Manhattan: 2% Other NY: 1% Other Regions $2.35 billion CRE Office Portfolio 4% 35% 5% 14%10% 8% Washington Other TX

06.30.23: CRE Retail – Additional Information 10 CRE Retail by Size Segment CRE Retail: Geographic Mix by Metro Area Loan size Balance ($ in mm) No. of Loans Avg. loan size ($ in mm) LTV >$30mm $ 302 8 $ 37.7 43% $20mm - $30mm $ 429 17 $ 25.3 58% $10mm - $20mm $ 765 56 $ 13.7 52% $5mm - $10mm $ 718 104 $ 6.9 49% <$5mm $ 1,989 1,514 $ 1.3 46% Total $ 4,203 1,699 $ 2.5 48% SoCal TexasNorCal New York & New Jersey Washington Other Regions Other Los Angeles County Downtown Los Angeles Other SoCalOther Bay Area San Francisco Other CA Dallas: 1% Houston New Jersey: 1% Manhattan Other NY Other Regions $4.2 billion CRE Retail Portfolio 32% 4% 17%10% Washington Other TX: 1%

<=50% 43% >50% to 55% 13% >55% to 60% 35% >60% 9% SoCal 39% NorCal 16% NY 27% WA 7% TX 2% Other 9% 06.30.23: Low LTV Residential Mortgage Portfolio 11 Resi. Mortgage: Distribution by Geography Resi. Mortgage: Distribution by LTV $14.2 billion Resi. Mortgage Loans Outstanding $435,000 Avg. loan size* 51% Avg. LTV* ▪ Residential mortgage (SFR + HELOC): $14.2bn loans O/S as of 06.30.23, +12% LQA and +13% Y-o-Y. ▪ 2Q23 origination volume: $0.9bn, +8% Q-o-Q and -47% Y-o-Y. ▪ Primarily originated through East West Bank branches. ▪ SFR: $12.3bn loans O/S as of 06.30.23, +18% LQA and 20% YoY. ▪ HELOC: $1.9bn loans O/S + $3.5bn in undisbursed commitments: $5.4bn total as of 06.30.23. ▪ Utilization: 35% as of 06.30.23, vs. 36% as of 03.31.23. ▪ 81% of commitments in first lien position as of 06.30.23. * Combined LTV for 1st and 2nd liens; based on commitment. Avg. size based on loan O/S for SFR and commitment for HELOC. * Geographic distribution based on commitment size of residential mortgage.

06.30.23: Granular, Diversified Deposit Base 12 Real Estate Property Investment & Management Private Equity Hospitality & Hotels Other Commercial Deposit Industries & Segments Durable Goods & Electronics, 2%; Media & Entertainment, 2%; Food Prod. & Distrib., 2%; Healthcare Services, 2%; Consumer Nondurable Goods, 2%; Bankruptcy & Fiduciary, 2%; Brokers/Dealers & Asset Managers, 2% Deposits as of 06.30.23: by Segment or Industry as % of Total Deposits General Manufacturing & Wholesale 8% $55.7 billion Total Deposits as of 06.30.23 Tech & TelecomCommercial $26.7bn 48% State & Public Agency $4.5bn 8% Consumer $18.0bn 32% Hong Kong $1.4bn 3% China $1.5bn 3%Brokered $3.6bn 6% 3% 3% 2% 2% 16% ▪ Total deposits: $55.7bn as of 06.30.23, +7% LQA & +2% Y-o-Y. ▪ Granular deposits, diversified by segment. ▪ Over 570,000 deposit accounts. ▪ Average commercial deposit account size: approx. $366,000. ▪ Average consumer deposit account size: approx. $38,000.

$13.5 $27 $25 $20 $26 $(7) $7 $10 $1 $7.5 -0.09% 2Q22 3Q22 4Q22 1Q23 2Q23 -0.09% $(25) -0.06% 0.06% 0.08% 0.01% 0.06% 06.30.23: Solid & Stable Asset Quality Metrics 13 Nonaccrual loans OREO & other NPAs NPAs / Total Assets Allowance for Loan Losses Coverage Ratio Criticized Loans / Loans HFI C&I Total CRE Resi. mortgage & consumer ALLL/Loans HFI Classified loans HFI Special Mention loans HFI HFI represents Held-for-Investment Classified loans HFI Special Mention loans HFI Criticized Ratio by Loans HFI Portfolio (as of 06.30.23) ▪ Net charge-offs in 2Q23 of $7.5mm, or annualized 0.06% of avg. loans, vs. 0.01% annualized in 1Q23. ▪ ALLL coverage of loans: 1.28% as of 06.30.23, vs. 1.27% as of 03.31.23. ▪ Nonperforming assets: increased to $115.5mm (0.17% of assets) as of 06.30.23, compared with $93mm (0.14% of assets) as of 03.31.23. ▪ Criticized loans: $812mm (1.63% of loans HFI) as of 06.30.23, improved from $914mm (1.87% of loans HFI) as of 03.31.23. Provision for credit losses Provision for Credit Losses & Net Charge-offs Net charge-offs NCO ratio (ann.) $ i n m ill io n s 363 372 372 376 375 173 178 182 189 203 27 33 42 55 57$563 $583 $596 $620 $635 1.21% 1.23% 1.24% 1.27% 1.28% 06.30.22 09.30.22 12.31.22 03.31.23 06.30.23 0.93% 0.92% 0.89% 0.93% 0.97% 1.27% 0.99% 0.97% 0.94% 0.66% 2.20% 1.91% 1.86% 1.87% 1.63% 06.30.22 09.30.22 12.31.22 03.31.23 06.30.23 2.6% 1.8% 0.3% C&I CRE Resi. mortgage & consumer 0.13% 0.03% 0.14% 0.16% 0.16% 0.14% 0.17% 06.30.22 09.30.22 12.31.22 03.31.23 06.30.23

2Q23: Summary Income Statement 14 * See slide 18 for noninterest income detail by category. ** See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases. *** Income tax expense adjusted for the write-off of an AFS debt security. Comments ▪ Net income: 2Q23 EPS of $2.20, compared with 1Q23 EPS of $2.27. ▪ Net interest income: $567mm, -5.5% Q-o-Q. ▪ Customer-driven fee income: $69mm, up from $66mm Q-o-Q. ▪ Amortization of tax credit & other investments: $56mm in 2Q23, vs. $10mm in 1Q23: Q-o-Q variability reflects the impact of investments that close in a given period. ▪ Estimating tax credit amortization of $40mm for 3Q23 and $145mm for FY 2023, based on $150mm of tax credit investments closing and going into service by year-end. ▪ Tax rate: 2Q23 effective tax rate was 12.7%. The lower rate was mainly due to an additional $97mm of tax credits in renewable energy investments that closed during 2Q23. ▪ For FY 2023, anticipating effective tax rate of approx. 20%. % Change $ in millions, except per share data 2Q23 1Q23 2Q22 Q-o-Q Y-o-Y Total net interest income $ 566.7 $ 599.9 $ 473.0 -5.5% 20% $ Fee income & net GOS of loans* 69.3 66.3 64.8 5% 7% Other noninterest income 9.3 3.7 13.6 152% -32% (using real numbers) Total adj. noninterest income** $ 78.6 $ 70.0 $ 78.4 12% 0% $ Total adjusted revenue** $ 645.3 $ 669.9 $ 551.4 -4% 17% $ Adjusted noninterest expense** $ 205.4 $ 204.0 $ 181.4 1% 13% $ Debt extinguishment cost - 3.9 - NM NM Amortization of tax credit & other investments + core deposit intangibles 56.4 10.6 15.5 434% 264% Total noninterest expense $ 261.8 $ 218.4 $ 196.9 20% 33% $ Provision for credit losses $ 26.0 $ 20.0 $ 13.5 30% 93% $ Adj. income tax expense*** 45.6 102.0 82.7 -55% -45% tax effect of write-off Adjusted net income** $ 312.0 $ 329.5 $ 258.3 -5% 21% $ Adjusted diluted EPS** $ 2.20 $ 2.32 $ 1.81 -5% 22% $ Write-off of AFS debt security, after tax - (7.1) - NM NM 312.03 Reported GAAP net income $ 312.0 $ 322.4 $ 258.3 -3% 21% $ Reported GAAP diluted EPS $ 2.20 $ 2.27 $ 1.81 -3% 22% $ Effective tax rate (GAAP) 12.7% 23.5% 24.3% -10.8% -11.6% Check Pre tax income ###### ###### ###### Tax 45,557 98,953 82,707 Eff. Tax Rate 12.7% 23.5% 24.3% check income tax 98,953 98,953 98,953 add 10 10 10

2Q23: Net Interest Income & Net Interest Margin 15 ▪ 2Q23 NII: $567mm, -5.5% Q-o-Q. ▪ 2Q23 NIM: 3.55%, -41 bps Q-o-Q. ▪ Change in NIM driven by higher cost of IB deposits and deposit mix shift, partially offset by higher loan balances and expanding interest-earning asset yields. Changes in yields and rates reflected rising benchmark interest rates in the quarter, asset sensitivity of variable-rate loan portfolio, and customer preferences for higher deposit rates. Impact to NIM from Q-o-Q Change in Yields, Rates & Balance Sheet Mix $ i n m ill io n s Net Interest Income (“NII”) & Net Interest Margin (“NIM”) 1Q23 NIM 2Q23 NIM -0.03% +0.15% 1Q23 NIM: 3.96% Higher loan yields 2Q23 NIM: 3.55% Higher other AEA yields -0.26% Higher cost of IB deposits -0.35% Unfavorable earning asset mix shift $473 $552 $606 $600 $567 3.23% 3.68% 3.98% 3.96% 3.55% 0.93% 2.35% 3.82% 4.68% 5.16% 2Q22 3Q22 4Q22 1Q23 2Q23 NII NIM Avg. Fed Funds Rate +0.04%+0.04% Lower cost of borrowings Deposit mix shift

2Q23: Loan Yields: Average & Spot 16 Loan Coupon Spot Rate by Portfolio * C&I spot rate excludes PPP, credit cards, deposit overdraft & micro-finance. Avg. Loan Yield Relative to LIBOR 06.30.22 09.30.22 Total fixed rate and hybrid in fixed period: 39%. Variable: LIBOR or SOFR rates Hybrid in fixed rate period Fixed rate Variable: Prime rate Variable: all other rates Loan Portfolio by Index Rate (06.30.23) 12.31.22 C&I: 88% variable rate. Total CRE: 63%* variable rate SFR: 43% hybrid in fixed-rate period & 41% fixed rate. HELOC: 100% Prime- based, variable rate portfolio. Avg. Loan Yield: Avg. yield in 2Q23: 6.33%. Coupon spot rate was 6.45% as of 06.30.23. 03.31.23 06.30.23 Current rate sheet pricing for 30-year fixed mortgage is 7.125%, 0 points. 3.95% 4.75% 5.59% 6.14% 6.33% 0.98% 2.46% 3.90% 4.61% 5.09% 2Q22 3Q22 4Q22 1Q23 2Q23 Avg. loan yield Avg. 1M LIBOR *Of which 44% had customer-level interest rate derivative contracts in place. Customers’ debt service is protected and EWBC retains benefits of variable rate loans on its balance sheet. HELOC utilization rate 35% as of 06.30.23. 4.27% 5.59% 6.76% 7.15% 7.48% C&I* 4.11% 5.07% 5.93% 6.27% 6.47% Total CRE 4.04%4.16%4.31%4.49%4.69% SFR 5.20% 6.68% 8.18% 8.72% 9.11% HELOC 21% 18% 28% 27% 6%

0.17% 0.51% 1.06% 1.60% 2.12% 0.30% 0.86% 1.74% 2.49% 3.09% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 2Q22 3Q22 4Q22 1Q23 2Q23 Target Fed Funds rate 2Q23: Cost of Deposits: Average & Spot 17 Average Cost of Deposits Relative to Target Fed Funds Rate Deposit Spot Rate vs. Loan Coupon Spot Rate & Cumulative Beta* DDA MMDA IB Checking & Savings Time Cumulative beta* as of 06.30.23 vs. Fed Funds target rate: 44% since 12.31.21. Cumulative beta* as of 06.30.23 vs. Fed Funds target rate: 62% since 12.31.21. Cumulative beta* as of 06.30.23 vs. Fed Funds target rate: 60% since 12.31.21. * Beta represents change in metric between 06.30.23 and 12.31.21, divided by change in target Fed Funds rate between 06.30.23 and 12.31.21. 06.30.22 09.30.22 12.31.22 Avg. cost of deposits Avg. cost of IB deposits 2Q23 Average Deposits: $54.3 billion ($ in billions) 03.31.23 06.30.23 $16.9 31% $10.4 19% $10.7 20% $16.3 30% 0.32% 0.74% 1.35% 1.93% 2.28% Total Deposits Spot Rate 0.55% 1.24% 2.16% 2.85% 3.25% IB Deposits Spot Rate 4.19% 5.10% 5.92% 6.21% 6.45% Total Loan Coupon Spot Rate

2Q23: Noninterest Income Detail ▪ Total noninterest income: $79mm in 2Q23, up $19mm, or 31% from $60mm in 1Q23. ▪ Other investment income of $4mm in 2Q23 was up $2mm from 1Q23, reflecting the higher income from CRA investments during the quarter. ▪ Fee income: $69mm in 2Q23, up from $66mm Q-o-Q. ▪ Q-o-Q increase across all fee income categories. ▪ Interest rate contracts and other derivative income was $7.4mm in 2Q23, vs $2.6mm in 1Q23. The Q-o-Q increase of $4.8mm was due to growth in customer-driven revenue and a favorable change in mark-to-market adjustments. 18 Interest Rate Contracts (“IRC”) and Other Derivative Income Detail ($ in millions) 2Q22 1Q23 2Q23 Revenue $ 3.5 $ 5.0 $ 6.0 MTM 6.3 (2.4) 1.4 Total $ 9.8 $ 2.6 $ 7.4 * Fee income excludes MTM adjustments related to IRC and other derivatives; net gains on sales of securities; other investment income and other income. Fee Income* & Net Gains on Sales of Loans $ i n m ill io n s ** See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases. 22 22 22 20 21 21 11 13 13 7 6 7 4 5 61 $65 $66 $69 2Q22 1Q23 2Q23 Gains on Sales of Loans IRC Revenue Wealth Mgmt. Fees FX Income Lending Fees Deposit Acct. Fees

2Q23: Operating Expense & Efficiency 19 Adjusted Noninterest Expense* $ i n m ill io n s Total Revenue & Adjusted Efficiency Ratio* ▪ 2Q23 noninterest expense: $262mm. ▪ 2Q23 adj. noninterest expense*: $205mm. ▪ 2Q23 Compensation and employee benefits decreased $5mm due to higher seasonal costs in 1Q23. ▪ 2Q23 adj. efficiency ratio* was 31.8%, vs. 30.5% in 1Q23. ▪ Consistently achieving industry-leading operating efficiency. ▪ Expecting to deliver positive operating leverage on a full-year basis. * See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases. $ i n m ill io n s $551 $660 $645 32.9% 30.5% 31.8% 2Q22 1Q23 2Q23 Total Revenue Adj. efficiency ratio* 113 130 125 15 16 16 10 11 11 11 18 19 32 29 34 $181 $204 $205 2Q22 1Q23 2Q23 All other Deposit related expenses Computer software & Data processing Occupancy & Equipment Comp and employee benefits

Management Outlook: Full Year 2023 20 * PPP loans were $99.0 million as of 12.31.22. Income related to PPP loans was $7.3 million in FY2022. ** See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases. Earnings drivers FY 2023 expectations compared with FY 2022 results Prior Outlook 2022 actual End of Period Loans ▪ Increase in the range of 5% to 7% Y-o-Y. PPP impact immaterial. ▪ Unchanged. $48.1 billion (ex. PPP*) +17% Y-o-Y (ex. PPP*) Net Interest Income ▪ Increase in the range of 12% to 15% Y-o-Y. PPP impact immaterial. ▪ Increase at a percentage rate of 16% to 18% Y-o-Y. $2.0 billion (ex. PPP*) +38% Y-o-Y (ex. PPP*) Adj. Noninterest Expense** (ex. tax credit investment & core deposit intangible amortization; ex. debt extinguishment cost) ▪ Increase in the range of 9% to 11% Y-o-Y. ▪ Increase in the range of 8% to 9% Y-o-Y. $744 million +11% Y-o-Y Credit Items ▪ Provision for credit losses in the range of $110 million to $130 million. ▪ Provision of credit losses of $100mm to $120mm. ▪ Gross charge-offs in line with recent gross charge- off experience. Gross charge-off ratio of 0.08% for FY 2022. Net charge-off ratio of 0.04% for FY 2022. Tax Items (tax credit investments & amortization referenced in this outlook exclude low-income housing tax credits) ▪ Expecting approx. $150mm of tax credit investments to close and go into service in 2023; tax credit amortization of approx. $145mm for FY 2023, including approx. $40mm in 3Q23. ▪ GAAP effective tax rate: approx. 20%. ▪ Expecting approx. $150mm of tax credit investments to close and go into service in 2023; tax credit amort. of $145mm for FY 2023. FY effective tax rate: 20% Tax credit investments: $129mm Tax credit amortization: $113mm Interest Rates ▪ One 25-bps rate hike in October to end 2023 with a Fed Funds target rate of 5.50%. ▪ Forward interest rate curve as of 06.30.23. ▪ Two Fed Funds rate cuts of 25-bps each in Aug. & Nov., for a 4.50% Fed Funds target rate by year-end. Fed Funds target rate increased to 4.50% as of 12.31.22, up from 0.25% as of 12.31.21.

APPENDIX

Appendix: GAAP to Non-GAAP Reconciliation 22 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. Adjusted efficiency ratio represents adjusted noninterest expense divided by adjusted revenue. Adjusted pre-tax, pre-provision profitability ratio represents total adjusted revenue less adjusted noninterest expense, divided by average total assets. Adjusted revenue excludes the write- off of an AFS debt security (where applicable). Adjusted noninterest expense excludes the amortization of tax credit and other investments, the amortization of core deposit intangibles and the repurchase agreements’ extinguishment cost (where applicable). Management believes that the measures and ratios presented below provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods. (1) Annualized Three Months Ended Six Months Ended June 30, 2023 March 31, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Net interest income before provision for credit losses (a) $ 566,746 $ 599,861 $ 472,952 $ 1,166,607 $ 888,565 Total noninterest income 78,631 59,978 78,444 138,609 158,187 Total revenue (b) $ 645,377 $ 659,839 $ 551,396 $ 1,305,216 $ 1,046,752 Noninterest income 78,631 59,978 78,444 138,609 158,187 Add: Write-off of AFS debt security — 10,000 — 10,000 — Adjusted noninterest income (c) 78,631 69,978 78,444 148,609 158,187 Adjusted revenue (a)+(c) = (d) $ 645,377 $ 669,839 $ 551,396 $ 1,315,216 $ 1,046,752 Total noninterest expense (e) $ 261,789 $ 218,447 $ 196,860 $ 480,236 $ 386,310 Less: Amortization of tax credit and other investments (55,914) (10,110) (14,979) (66,024) (28,879) Amortization of core deposit intangibles (440) (441) (488) (881) (999) Repurchase agreements’ extinguishment cost — (3,872) — (3,872) — Adjusted noninterest expense (f) $ 205,435 $ 204,024 $ 181,393 $ 409,459 $ 356,432 Efficiency ratio (e)/(b) 40.56% 33.11% 35.70% 36.79% 36.91% Adjusted efficiency ratio (f)/(d) 31.83% 30.46% 32.90% 31.13% 34.05% Adjusted pre-tax, pre-provision income (d)-(f) = (g) $ 439,942 $ 465,815 $ 370,003 $ 905,757 $ 690,320 Average total assets (h) $ 67,497,367 $ 65,113,604 $ 62,232,841 $ 66,312,070 $ 61,996,756 Adjusted pre-tax, pre-provision profitability ratio (1) (g)/(h) 2.61% 2.90% 2.38% 2.75% 2.25% Adjusted noninterest expense/average assets (1) (f)/(h) 1.22% 1.27% 1.17% 1.25% 1.16%

Appendix: GAAP to Non-GAAP Reconciliation 23 EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible 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 other intangible assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion. (1) Includes core deposit intangibles and mortgage servicing assets. June 30, 2023 March 31, 2023 June 30, 2022 Stockholders’ equity (a) $ 6,461,697 $ 6,309,331 $ 5,609,482 Less: Goodwill (465,697) (465,697) (465,697) Other intangible assets (1) (6,418) (7,201) (8,537) Tangible book value (b) $ 5,989,582 $ 5,836,433 $ 5,135,248 Number of common shares at period-end (c) 141,484 141,396 140,917 Book value per share (a)/(c) $ 45.67 $ 44.62 $ 39.81 Tangible book value per share (b)/(c) $ 42.33 $ 41.28 $ 36.44 Total assets (d) $ 68,532,681 $ 67,244,898 $ 62,394,283 Less: Goodwill (465,697) (465,697) (465,697) Other intangible assets (1) (6,418) (7,201) (8,537) Tangible assets (e) $ 68,060,566 $ 66,772,000 $ 61,920,049 Total stockholders’ equity to assets ratio (a)/(d) 9.43% 9.38% 8.99% TCE ratio (b)/(e) 8.80% 8.74% 8.29%

Appendix: GAAP to Non-GAAP Reconciliation 24 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. Adjusted return on average TCE represents adjusted tangible net income divided by average tangible book value. Tangible net income excludes the after-tax impacts of the amortization of core deposit intangibles and mortgage servicing assets. Adjusted tangible net income excludes the after-tax impacts of the tangible net income adjustments and the write-off of an AFS debt security. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion. (1) Includes core deposit intangibles and mortgage servicing assets. (2) Applied statutory tax rate of 29.29% for the three and six months ended June 30, 2023, and the three months ended March 31, 2023. Applied statutory tax rate of 28.77% for the three and six months ended June 30, 2022. (3) Annualized. Three Months Ended Six Months Ended June 30, 2023 March 31, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Net income (e) $ 312,031 $ 322,439 $ 258,329 $ 634,470 $ 495,981 Add: Amortization of core deposit intangibles 440 441 488 881 999 Amortization of mortgage servicing assets 342 356 364 698 756 Tax effect of amortization adjustments (2) (230) (233) (245) (463) (505) Tangible net income (f) $ 312,583 $ 323,003 $ 258,936 $ 635,586 $ 497,231 Add: Write-off of AFS debt security — 10,000 — 10,000 — Tax effect of write-off (2) — (2,929) — (2,929) — Adjusted tangible net income (g) $ 312,583 $ 330,074 $ 258,936 $ 642,657 $ 497,231 Average stockholders’ equity (h) $ 6,440,996 $ 6,183,324 $ 5,682,427 $ 6,312,872 $ 5,762,078 Less: Average goodwill (465,697) (465,697) (465,697) (465,697) (465,697) Average other intangible assets (1) (6,921) (7,696) (8,827) (7,306) (9,016) Average tangible book value (i) $ 5,968,378 $ 5,709,931 $ 5,207,903 $ 5,839,869 $ 5,287,365 Return on average common equity (3) (e)/(h) 19.43% 21.15% 18.23% 20.27% 17.36% Return on average TCE (3) (f)/(i) 21.01% 22.94% 19.94% 21.95% 18.96% Adjusted return on average TCE (3) (g)/(i) 21.01% 23.44% 19.94% 22.19% 18.96%

Appendix: GAAP to Non-GAAP Reconciliation 25 EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) During the first quarter of 2023, the Company recorded a $10.0 million pre-tax impairment write-off of an AFS debt security. 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 common equity that adjust for the above discussed non-recurring item provide clarity to financial statement users regarding the ongoing performance of the Company and allows comparability to prior periods. (1) Applied statutory tax rate of 29.29% for the three months ended March 31, 2023 and the six months ended June 30, 2023. (2) Annualized. Three Months Ended June 30, 2023 March 31, 2023 June 30, 2022 Net income (a) $ 312,031 $ 322,439 $ 258,329 Add: Write-off of AFS debt security — 10,000 — Tax effect of write-off (1) — (2,929) — Adjusted net income (b) $ 312,031 $ 329,510 $ 258,329 Diluted weighted-average number of shares outstanding 141,876 141,913 142,372 Diluted EPS $ 2.20 $ 2.27 $ 1.81 Add: Write-off of AFS debt security — 0.05 — Adjusted diluted EPS $ 2.20 $ 2.32 $ 1.81 Average total assets (c) $ 67,497,367 $ 65,113,604 $ 62,232,841 Average stockholders’ equity (d) $ 6,440,996 $ 6,183,324 $ 5,682,427 Return on average assets (2) (a)/(c) 1.85% 2.01% 1.66% Adjusted return on average assets (2) (b)/(c) 1.85% 2.05% 1.66% Return on average common equity (2) (a)/(d) 19.43% 21.15% 18.23% Adjusted return on average common equity (2) (b)/(d) 19.43% 21.61% 18.23% Six Months Ended June 30, 2023 June 30, 2022 Net income (e) 634,470 $ 495,981 Add: Write-off of AFS debt security 10,000 — Tax effect of write-off (1) (2,929) — Adjusted net income (f) $ 641,541 $ 495,981 Diluted weighted-average number of shares outstanding 141,910 142,838 Diluted EPS $ 4.47 $ 3.47 Add: Write-off of AFS debt security 0.05 — Adjusted diluted EPS $ 4.52 $ 3.47 Average total assets (g) $ 66,312,070 $ 61,996,756 Average stockholders’ equity (h) $ 6,312,872 $ 5,762,078 Return on average assets (2) (e)/(g) 1.93% 1.61% Adjusted return on average assets (2) (f)/(g) 1.95% 1.61% Return on average common equity (2) (e)/(h) 20.27% 17.36% Adjusted return on average common equity (2) (f)/(h) 20.49% 17.36%

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