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8-K

East West Bancorp Inc (EWBC)

8-K 2020-01-23 For: 2020-01-23
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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)

January 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 January 23, 2020, East West Bancorp, Inc. (the “Company”) announced, via press release, its financial results for the quarter and full year ended December 31, 2019 (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 January 23, 2020, the Company will hold a conference call to discuss its financial results for the quarter and full year ended December 31, 2019, 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 January 23, 2020.
99.2 Presentation Materials, dated January 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: January 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 2019

OF $674 MILLION AND DILUTED EARNINGS PER SHARE OF $4.61;

RECORD REVENUE OF $1.7 BILLION

Pasadena, California — January 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 full year and fourth quarter of 2019. For the full year 2019, net income was $674.0 million or $4.61 per diluted share. For the fourth quarter of 2019, net income was $188.2 million or $1.29 per diluted share.

“2019 ended a transformational decade for East West, during which we more than doubled our asset size to $44.2 billion and grew both our commercial loans and our noninterest-bearing deposits nearly five-fold. Today, our loan portfolio is well-balanced between commercial, commercial real estate and residential mortgage loans, and our deposits are also well-balanced between commercial and consumer accounts,” stated Dominic Ng, Chairman and Chief Executive Officer of East West.

“Over the course of the decade, we expanded the breadth of our banking products and services in cash management, foreign exchange and interest rate risk hedging advisory, wealth management, and commercial lending solutions. As a result, we strengthened the resilience of our balance sheet, and achieved substantial earnings growth, increasing our diluted earnings per share by 458% to $4.61 in 2019, up from $0.83 in 2010.”

“In 2019, total loans grew $2.4 billion, or 7% year-over-year, to a record $34.8 billion as of December 31, 2019. Total deposits grew $1.9 billion, or 5% year-over-year, to a record $37.3 billion,” continued Ng. “Full year 2019 revenue of $1.7 billion grew by 5% year-over-year, a result of a strong contribution from fee income and record net interest income of $1.5 billion. Loan growth drove net interest income growth, overcoming net interest margin compression from three cuts to the fed funds rate.”

“Overall, we earned a return on average assets of 1.59% in 2019 and a return on average equity of 14.2%. Our growth and profitability reflect the strength of our diverse business model, which we are confident is a strong foundation for continued solid financial performance in the decade ahead,” concluded Ng.

1

HIGHLIGHTS OF RESULTS

• Full Year Earnings — Full year 2019 net income was $674.0 million and diluted earnings per share (“EPS”) were $4.61, both down by 4% compared to full year 2018 net income of $703.7 million and diluted EPS of $4.81. Full year 2019 adjusted^1^ net income was $707.9 million and adjusted^1^ diluted EPS were $4.84, both up by 4% compared to full year 2018 adjusted^1^ net income of $681.5 million and adjusted^1^diluted EPS of $4.66.
• Fourth Quarter Earnings — Fourth quarter 2019 net income was $188.2 million and diluted EPS were $1.29, both up by 10% from third quarter 2019 net income of $171.4 million and diluted EPS of $1.17. Fourth quarter 2019 net income and diluted EPS were both up by 9% from fourth quarter 2018 net income of $173.0 million and diluted EPS of $1.18. Fourth quarter 2019 adjusted^1^ net income was $187.1 million and adjusted^1^ diluted EPS were $1.28, up by 9% quarter-over-quarter and up by 8% year-over-year.
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• Net Interest Income and Net Interest Margin — Full year 2019 net interest income (“NII”) of $1.5 billion increased by $81.3 million or 6% year-over-year. Full year 2019 net interest margin (“NIM”) of 3.64% contracted by 14 basis points year-over-year from 3.78% for the full year 2018.
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Fourth quarter 2019 NII was $368.2 million, a quarterly decrease of $1.6 million or 0.4% from third quarter 2019. Fourth quarter 2019 NIM was 3.47%, a 12 basis point contraction from 3.59% in the previous quarter. Quarter-over-quarter, the average loan yield contracted by 20 basis points, and the average cost of deposits decreased by 11 basis points.

• Record Loans — Total loans of $34.8 billion as of December 31, 2019 increased by $2.4 billion, or 7%, from $32.4 billion as of December 31, 2018; and increased by $753.7 million, or 9% annualized, from $34.0 billion as of September 30, 2019.

Full year 2019 average loans of $33.4 billion grew $3.1 billion, or 10% year-over-year. Average loan growth in 2019 was equally distributed across commercial real estate, residential mortgage and commercial loans. Fourth quarter 2019 average loans of $34.4 billion grew $748.7 million, or 9% linked quarter annualized. Average loan growth in the fourth quarter was led by commercial real estate, followed by residential mortgage.

• Record Deposits — Total deposits of $37.3 billion as of December 31, 2019 increased by $1.9 billion, or 5%, from $35.4 billion as of December 31, 2018; and increased by $664.7 million, or 7% annualized, from $36.7 billion as of September 30, 2019.

Full year 2019 average deposits of $36.0 billion grew $2.8 billion, or 8% year-over-year. Average deposit growth in 2019 primarily came from growth in time deposits and interest-bearing checking, partially offset by a decrease in noninterest-bearing demand accounts. Fourth quarter 2019 average deposits of $37.4 billion grew $910.9 million, or 10% linked quarter annualized. Average deposit growth in the fourth quarter was led by interest-bearing checking, noninterest-bearing demand and money market accounts, partially offset by a decrease in time deposits.

• Asset Quality Metrics — The allowance for loan losses was $358.3 million, or 1.03% of loans held-for-investment (“HFI”) as of December 31, 2019; the comparable ratios were 1.02% as of September 30, 2019, and 0.96% as of December 31, 2018. Non-purchased credit impaired (“Non-PCI”) nonperforming assets were $121.5 million, or 0.27% of total assets as of December 31, 2019; the comparable ratios were 0.31% as of September 30, 2019, and 0.23% as of December 31, 2018.

Full year 2019 net charge-offs were $52.8 million, or 0.16% of average loans HFI; the provision for credit losses was $98.7 million. Fourth quarter 2019 net charge-offs were $8.3 million, or annualized 0.10% of average loans HFI; the provision for credit losses was $18.6 million.

• Capital Levels — Capital levels for East West are strong. As of December 31, 2019, stockholders’ equity was $5.0 billion, or $34.46 per share. Tangible equity^2^ per common share was $31.15 as of December 31, 2019, an increase of 3% linked quarter and 15% year-over-year.

As of December 31, 2019, the tangible equity to tangible assets ratio^2^ was 10.4%, the common equity tier 1 (“CET1”) capital ratio was 12.9%, and the total risk-based capital ratio was 14.4%.

^1^  See reconciliation of GAAP to non-GAAP financial measures in Table 13.
^2^  See reconciliation of GAAP to non-GAAP financial measures in Table 16.

2

OPERATING RESULTS SUMMARY

Fourth Quarter 2019 Compared to Third Quarter 2019

Net Interest Income and Net Interest Margin

Net interest income totaled $368.2 million, a decrease of 0.4% from $369.8 million. Net interest margin of 3.47% contracted by 12 basis points from 3.59%.

• Average loans of $34.4 billion grew $748.7 million, or 9% linked quarter annualized.
• Average interest-earning assets of $42.1 billion grew $1.2 billion, or 12% linked quarter annualized. In addition to loan growth, average available-for-sale investment securities increased by $840.9 million, partially offset by decreases from interest-bearing cash and deposits with banks as well as from resale agreements.
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• Average deposits of $37.4 billion grew $910.9 million, or 10% linked quarter annualized.
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• The average yield on loans contracted by 20 basis points to 4.91% from 5.11%, reflecting a 25-basis point reduction in the fed funds rate and a decline in LIBOR rates during the current quarter. The yield on average interest-earning assets contracted by 22 basis points to 4.40% from 4.62%.
--- ---
• The average cost of deposits decreased by 11 basis points to 0.94% from 1.05%, and the average cost of interest-bearing deposits decreased by 15 basis points to 1.34% from 1.49%.
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Noninterest Income

Noninterest income totaled $63.0 million, a 22% increase from $51.5 million.

• The largest linked-quarter change in noninterest income was a $9.4 million increase in interest rate contracts and other derivative income to $17.8 million, which reflected a combination of strong customer demand for interest rate hedging products and a favorable quarter-over-quarter change in the credit valuation adjustment.
• Quarter-over-quarter, lending fees of $17.2 million increased by $2.2 million, other investment income of $2.7 million increased by $2.0 million; foreign exchange income of $6.0 million decreased by $2.0 million.
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Noninterest Expense

Noninterest expense totaled $193.4 million, a 9% increase from $176.6 million.

• Fourth quarter noninterest expense consisted of $165.3 million of adjusted^3^ noninterest expense, $27.0 million in amortization of tax credit and other investments, and $1.0 million in amortization of core deposit intangibles.
• Adjusted noninterest expense of $165.3 million increased by $6.6 million, or 4%, from $158.6 million. The largest linked-quarter change was a $3.2 million increase in compensation and employee benefits expense to $101.1 million. Quarter-over-quarter, other operating expense of $24.5 million increased by $1.7 million, and computer software expense of $7.6 million increased by $1.1 million.
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• The adjusted^3^ efficiency ratio was 38.3% in the fourth quarter, compared to 37.7% in the third quarter.
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TAX RELATED ITEMS

Full year 2019 income tax expense was $169.9 million and the effective tax rate was 20%. Included in the full year 2019 income tax expense was a $30.1 million reversal of certain previously claimed tax credits. Adjusted, income tax expense^4^ was $139.8 million and the effective tax rate^4^ was 17% for the full year 2019. This compares to income tax expense of $115.0 million and an effective tax rate of 14% for the full year 2018.

• Fourth quarter 2019 income tax expense was $31.1 million and the effective tax rate was 14%, compared to income tax expense of $35.0 million and an effective tax rate of 17% for the third quarter of 2019.
^3^  See reconciliation of GAAP to non-GAAP financial measures in Table 14.
---
^4^  See reconciliation of GAAP to non-GAAP financial measures in Table 12.

3

CREDIT QUALITY

The allowance for loan losses totaled $358.3 million, or 1.03% of loans HFI, as of December 31, 2019, compared to $345.6 million, or 1.02% of loans HFI, as of September 30, 2019, and $311.3 million, or 0.96% of loans HFI, as of December 31, 2018.

• Non-PCI nonperforming assets were $121.5 million, or 0.27% of total assets, as of December 31, 2019, compared to $134.5 million, or 0.31% of total assets, as of September 30, 2019, and $93.0 million, or 0.23% of total assets, as of December 31, 2018.
• Full year 2019 net charge-offs were $52.8 million, or 0.16% of average loans HFI, compared to 0.13% of average loans HFI for the full year 2018. Fourth quarter 2019 net charge-offs were $8.3 million, or annualized 0.10% of average loans HFI, compared to annualized 0.26% of average loans HFI for the third quarter of 2019, and annualized 0.20% of average loans HFI for the fourth quarter of 2018.
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• Full year 2019 provision for credit losses was $98.7 million, compared to $64.3 million for the full year 2018. Fourth quarter 2019 provision for credit losses was $18.6 million, compared to $38.3 million for the third quarter of 2019, and $18.0 million for the fourth quarter of 2018.
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CAPITAL STRENGTH

Capital levels for East West are strong. The following table presents the regulatory capital ratios as of December 31, 2019, September 30, 2019, and December 31, 2018.

EWBC Regulatory Capital Metrics Basel III
($ in millions) December 31,<br><br>2019 ^(a)^ September 30, <br>2019 December 31, <br>2018 Minimum<br>Capital<br>Ratio Well<br>Capitalized<br>Ratio Minimum<br>Capital Ratio +<br>Conservation Buffer ^(b)^
CET1 capital ratio 12.9 % 12.8 % 12.2 % 4.5 % 6.5 % 7.0 %
Tier 1 risk-based capital ratio 12.9 % 12.8 % 12.2 % 6.0 % 8.0 % 8.5 %
Total risk-based capital ratio 14.4 % 14.2 % 13.7 % 8.0 % 10.0 % 10.5 %
Tier 1 leverage capital ratio 10.3 % 10.3 % 9.9 % 4.0 % 5.0 % 4.0 %
Risk-Weighted Assets (“RWA”) ^(c)^ $ 35,136 $ 34,424 $ 32,497 N/A N/A N/A

N/A Not applicable.

(a) The Company’s December 31, 2019 regulatory capital ratios and RWA are preliminary.
(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.
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(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 first quarter 2020 dividends for the Company’s common stock. The common stock cash dividend of $0.275 per share is payable on February 14, 2020 to shareholders of record on February 3, 2020.

Conference Call

East West will host a conference call to discuss fourth quarter and full year 2019 earnings with the public on Thursday, January 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 fourth quarter and full year 2019 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 January 23, 2020 at 11:30 a.m. Pacific Time through February 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: 10137935.
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About East West

East West Bancorp, Inc. is a publicly owned company with total assets of $44.2 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 ongoing trade dispute between the 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 United States (“U.S.”) that resulted in the Secured Overnight Financing Rate (“SOFR”) 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; changes in the U.S. economy, including inflation, deflation, employment levels, rate of growth and general business conditions; government intervention in the financial system, including changes in government interest rate policies; impact of political developments, 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; changes in income tax laws and regulations; 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; 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 our stock price; 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 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 its Annual Report on Form 10-K for the year ended December 31, 2018, 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
December 31, 2019<br><br>% or Basis Point Change
December 31, 2019 September 30, 2019 December 31, 2018 Qtr-o-Qtr Yr-o-Yr
Assets
$ 536,221 $ 475,291 $ 516,291 12.8 % 3.9 %
2,724,928 2,566,990 2,485,086 6.2 9.7
3,261,149 3,042,281 3,001,377 7.2 8.7
196,161 160,423 371,000 22.3 (47.1 )
860,000 860,000 1,035,000 — (16.9 )
3,317,214 3,284,034 2,741,847 1.0 21.0
78,580 78,334 74,069 0.3 6.1
434 294 275 47.6 57.8
34,420,252 33,679,400 32,073,867 2.2 7.3
207,037 190,000 184,873 9.0 12.0
254,140 211,603 231,635 20.1 9.7
465,697 465,697 465,547 — 0.0
99,973 103,894 — (3.8 ) 100.0
1,035,459 1,198,699 862,866 (13.6 ) 20.0
$ 44,196,096 $ 43,274,659 $ 41,042,356 2.1 % 7.7 %
Liabilities and Stockholders’ Equity
$ 37,324,259 $ 36,659,526 $ 35,439,628 1.8 % 5.3 %
28,669 47,689 57,638 (39.9 ) (50.3 )
745,915 745,494 326,172 0.1 128.7
200,000 50,000 50,000 300.0 300.0
152,270 152,390 146,835 (0.1 ) 3.7
108,083 112,142 — (3.6 ) 100.0
619,283 624,754 598,109 (0.9 ) 3.5
39,178,479 38,391,995 36,618,382 2.0 7.0
5,017,617 4,882,664 4,423,974 2.8 13.4
$ 44,196,096 $ 43,274,659 $ 41,042,356 2.1 % 7.7 %
$ 34.46 $ 33.54 $ 30.52 2.7 % 12.9 %
$ 31.15 $ 30.22 $ 27.15 3.1 14.7
145,625 145,568 144,961 0.0 0.5
10.38 % 10.28 % 9.71 % 10 bps 67 bps

All values are in US Dollars.

(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, $250.0 million, $400.0 million, and $400.0 million were eligible for netting against gross resale agreements as of December 31, 2019, September 30, 2019 and December 31, 2018, respectively.
(2) See reconciliation of GAAP to non-GAAP financial measures in Table 16.
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7

EAST WEST BANCORP, INC. AND SUBSIDIARIES
TOTAL LOANS AND DEPOSITS DETAIL
( in thousands)
(unaudited)
Table 2
December 31, 2019<br>% Change
December 31, 2019 September 30, 2019 December 31, 2018 Qtr-o-Qtr Yr-o-Yr
Loans:
Commercial:
$ 12,150,931 $ 12,301,002 $ 12,056,970 (1.2 )% 0.8 %
10,278,448 9,749,583 9,260,199 5.4 11.0
2,856,374 2,589,203 2,470,668 10.3 15.6
628,499 719,900 538,794 (12.7 ) 16.6
13,763,321 13,058,686 12,269,661 5.4 12.2
Consumer:
7,108,590 6,811,014 6,036,454 4.4 17.8
1,472,783 1,540,121 1,690,834 (4.4 ) (12.9 )
8,581,373 8,351,135 7,727,288 2.8 11.1
282,914 314,153 331,270 (9.9 ) (14.6 )
Total loans HFI (1)(2) 34,778,539 34,024,976 32,385,189 2.2 7.4
Loans HFS 434 294 275 47.6 57.8
34,778,973 34,025,270 32,385,464 2.2 7.4
Allowance for loan losses (358,287 ) (345,576 ) (311,322 ) 3.7 15.1
$ 34,420,686 $ 33,679,694 $ 32,074,142 2.2 % 7.3 %
Deposits:
$ 11,080,036 $ 10,806,937 $ 11,377,009 2.5 % (2.6 )%
5,200,755 4,837,391 4,584,447 7.5 13.4
8,711,964 8,400,353 8,262,677 3.7 5.4
2,117,196 2,094,638 2,146,429 1.1 (1.4 )
10,214,308 10,520,207 9,069,066 (2.9 ) 12.6
$ 37,324,259 $ 36,659,526 $ 35,439,628 1.8 % 5.3 %

All values are in US Dollars.

(1) Includes $(43.2) million, $(39.8) million and $(48.9) million as of December 31, 2019, September 30, 2019 and December 31, 2018, respectively, of net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts.
(2) Includes ASC 310-30 discount of $14.3 million, $16.7 million and $22.2 million as of December 31, 2019, September 30, 2019 and December 31, 2018, 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 December 31, 2019<br>% Change
December 31, 2019 September 30, 2019 December 31, 2018 Qtr-o-Qtr Yr-o-Yr
Interest and dividend income $ 467,233 $ 476,912 $ 457,334 (2.0 )% 2.2 %
Interest expense 99,014 107,105 87,918 (7.6 ) 12.6
Net interest income before provision for credit losses 368,219 369,807 369,416 (0.4 ) (0.3 )
Provision for credit losses 18,577 38,284 17,959 (51.5 ) 3.4
Net interest income after provision for credit losses 349,642 331,523 351,457 5.5 (0.5 )
Noninterest income 63,013 51,474 41,695 22.4 51.1
Noninterest expense 193,373 176,630 188,097 9.5 2.8
Income before income taxes 219,282 206,367 205,055 6.3 6.9
Income tax expense 31,067 34,951 32,037 (11.1 ) (3.0 )
Net income $ 188,215 $ 171,416 $ 173,018 9.8 % 8.8 %
Earnings per share (“EPS”)
- Basic $ 1.29 $ 1.18 $ 1.19 9.8 % 8.3 %
- Diluted $ 1.29 $ 1.17 $ 1.18 9.7 8.6
Weighted average number of shares outstanding
- Basic 145,624 145,559 144,960 0.0 % 0.5 %
- Diluted 146,318 146,120 146,133 0.1 0.1
Three Months Ended December 31, 2019<br>% Change
December 31, 2019 September 30, 2019 December 31, 2018 Qtr-o-Qtr Yr-o-Yr
Noninterest income:
$ 17,244 $ 15,035 $ 15,168 14.7 % 13.7 %
9,843 9,729 9,346 1.2 5.3
6,032 8,065 7,191 (25.2 ) (16.1 )
4,215 4,841 2,796 (12.9 ) 50.8
17,828 8,423 1,125 111.7 NM
1,068 2,037 1,509 (47.6 ) (29.2 )
864 58 161 NM NM
66 48 1,081 37.5 (93.9 )
2,678 663 801 303.9 234.3
3,175 2,575 2,517 23.3 26.1
Total noninterest income $ 63,013 $ 51,474 $ 41,695 22.4 % 51.1 %
Noninterest expense:
$ 101,051 $ 97,819 $ 93,790 3.3 % 7.7 %
17,138 17,912 18,017 (4.3 ) (4.9 )
3,371 3,550 3,093 (5.0 ) 9.0
2,141 1,720 2,145 24.5 (0.2 )
3,588 3,328 3,160 7.8 13.5
3,159 2,559 1,424 23.4 121.8
3,749 3,584 3,043 4.6 23.2
7,626 6,556 6,205 16.3 22.9
24,512 22,769 26,262 7.7 (6.7 )
27,038 16,833 30,958 60.6 (12.7 )
Total noninterest expense $ 193,373 $ 176,630 $ 188,097 9.5 % 2.8 %

All values are in US Dollars.

NM - Not meaningful.

9

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
( and shares in thousands, except per share data)
(unaudited)
Table 4
Year Ended December 31, 2019<br>% Change
December 31, 2019 December 31, 2018 Yr-o-Yr
Interest and dividend income $ 1,882,300 $ 1,651,703 14.0 %
Interest expense 414,487 265,195 56.3
Net interest income before provision for credit losses 1,467,813 1,386,508 5.9
Provision for credit losses 98,685 64,255 53.6
Net interest income after provision for credit losses 1,369,128 1,322,253 3.5
Noninterest income 209,377 210,909 (0.7 )
Noninterest expense 734,588 714,466 2.8
Income before income taxes 843,917 818,696 3.1
Income tax expense 169,882 114,995 47.7
Net income $ 674,035 $ 703,701 (4.2 )%
EPS
- Basic $ 4.63 $ 4.86 (4.6 )%
- Diluted $ 4.61 $ 4.81 (4.2 )
Weighted average number of shares outstanding
- Basic 145,497 144,862 0.4 %
- Diluted 146,179 146,169 0.0
Year Ended December 31, 2019<br>% Change
December 31, 2019 December 31, 2018 Yr-o-Yr
Noninterest income:
$ 63,670 $ 59,758 6.5 %
38,648 39,176 (1.3 )
26,398 21,259 24.2
16,668 13,785 20.9
39,865 18,980 110.0
4,035 6,590 (38.8 )
3,930 2,535 55.0
114 6,683 (98.3 )
— 31,470 (100.0 )
5,249 1,207 334.9
10,800 9,466 14.1
Total noninterest income $ 209,377 $ 210,909 (0.7 )%
Noninterest expense:
$ 401,700 $ 379,622 5.8 %
69,730 68,896 1.2
12,928 21,211 (39.1 )
8,441 8,781 (3.9 )
13,533 13,177 2.7
9,846 11,579 (15.0 )
14,175 11,244 26.1
26,471 22,286 18.8
92,249 88,042 4.8
85,515 89,628 (4.6 )
Total noninterest expense $ 734,588 $ 714,466 2.8 %

All values are in US Dollars.

10

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED AVERAGE BALANCES
( in thousands)
(unaudited)
Table 5
Three Months Ended December 31, 2019<br>% Change Year Ended December 31, 2019<br>% Change
December 31, <br>2019 September 30, 2019 December 31, <br>2018 Qtr-o-Qtr Yr-o-Yr December 31, <br>2019 December 31, <br>2018 Yr-o-Yr
Loans:
Commercial:
$ 12,237,081 $ 12,203,341 $ 11,554,737 0.3 % 5.9 % $ 12,073,820 $ 11,037,992 9.4 %
10,006,424 9,685,092 9,179,181 3.3 9.0 9,642,301 8,955,920 7.7
2,771,555 2,561,648 2,347,321 8.2 18.1 2,588,347 2,215,121 16.8
668,147 694,665 582,311 (3.8 ) 14.7 656,142 632,303 3.8
13,446,126 12,941,405 12,108,813 3.9 11.0 12,886,790 11,803,344 9.2
Consumer:
6,934,361 6,636,227 5,854,551 4.5 18.4 6,526,415 5,309,689 22.9
1,506,346 1,557,358 1,709,022 (3.3 ) (11.9 ) 1,580,343 1,754,071 (9.9 )
8,440,707 8,193,585 7,563,573 3.0 11.6 8,106,758 7,063,760 14.8
286,096 322,951 307,752 (11.4 ) (7.0 ) 305,768 324,918 (5.9 )
$ 34,410,010 $ 33,661,282 $ 31,534,875 2.2 % 9.1 % $ 33,373,136 $ 30,230,014 10.4 %
Interest-earning assets $ 42,114,123 $ 40,919,386 $ 38,688,647 2.9 % 8.9 % $ 40,320,804 $ 36,707,142 9.8 %
Total assets $ 44,471,242 $ 43,136,273 $ 40,525,188 3.1 % 9.7 % $ 42,484,885 $ 38,542,569 10.2 %
Deposits:
$ 10,976,368 $ 10,712,612 $ 11,447,345 2.5 % (4.1 )% $ 10,502,618 $ 11,089,537 (5.3 )%
5,540,300 4,947,511 4,449,541 12.0 24.5 5,244,867 4,477,793 17.1
8,592,058 8,344,993 8,180,426 3.0 5.0 8,220,236 7,985,526 2.9
2,118,911 2,154,592 2,124,697 (1.7 ) (0.3 ) 2,118,060 2,245,644 (5.7 )
10,180,922 10,337,990 8,783,068 (1.5 ) 15.9 9,961,289 7,431,749 34.0
$ 37,408,559 $ 36,497,698 $ 34,985,077 2.5 % 6.9 % $ 36,047,070 $ 33,230,249 8.5 %
Interest-bearing liabilities $ 27,522,469 $ 26,773,253 $ 24,122,509 2.8 % 14.1 % $ 26,408,961 $ 22,709,554 16.3 %
Stockholders’ equity $ 4,977,759 $ 4,838,281 $ 4,335,110 2.9 % 14.8 % $ 4,760,845 $ 4,130,822 15.3 %

All values are in US Dollars.

(1) Includes ASC 310-30 discount of $16.0 million, $18.2 million and $23.8 million for the three months ended December 31, 2019, September 30, 2019 and December 31, 2018, respectively, and $18.9 million and $28.4 million for the years ended December 31, 2019 and 2018, respectively.
(2) Includes loans HFS.
--- ---

11

EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
( in thousands)
(unaudited)
Table 6
Three Months Ended
December 31, 2019 September 30, 2019
Average Average Average Average
Balance Interest Yield/Rate ^(1)^ Balance Interest Yield/Rate ^(1)^
Assets
Interest-earning assets:
$ 3,270,431 $ 14,925 1.81 % $ 3,547,626 $ 19,772 2.21 %
863,261 5,749 2.64 % 981,196 6,881 2.78 %
3,491,961 20,192 2.29 % 2,651,069 15,945 2.39 %
34,410,010 425,773 4.91 % 33,661,282 433,658 5.11 %
78,460 594 3.00 % 78,213 656 3.33 %
42,114,123 467,233 4.40 % 40,919,386 476,912 4.62 %
Noninterest-earning assets:
534,326 441,898
(355,759 ) (328,523 )
2,178,552 2,103,512
$ 44,471,242 $ 43,136,273
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
$ 5,540,300 $ 13,589 0.97 % $ 4,947,511 $ 14,488 1.16 %
8,592,058 25,223 1.16 % 8,344,993 26,943 1.28 %
2,118,911 2,266 0.42 % 2,154,592 2,656 0.49 %
10,180,922 47,935 1.87 % 10,337,990 52,733 2.02 %
43,313 404 3.70 % 40,433 382 3.75 %
745,732 4,686 2.49 % 745,263 5,021 2.67 %
148,892 3,382 9.01 % 50,000 3,239 25.70 %
152,341 1,529 3.98 % 152,471 1,643 4.28 %
27,522,469 99,014 1.43 % 26,773,253 107,105 1.59 %
Noninterest-bearing liabilities and stockholders’ equity:
10,976,368 10,712,612
994,646 812,127
4,977,759 4,838,281
$ 44,471,242 $ 43,136,273
Interest rate spread 2.97 % 3.03 %
Net interest income and net interest margin $ 368,219 3.47 % $ 369,807 3.59 %
Adjusted net interest income and adjusted net interest margin (4) $ 362,166 3.41 % $ 367,286 3.56 %

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 2.49% and 2.57% for the three months ended December 31, 2019 and September 30, 2019, respectively. The weighted-average interest rates of gross repurchase agreements were 4.35% and 4.68% for the three months ended December 31, 2019 and September 30, 2019, respectively.
--- ---
(3) Includes loans HFS. ASC 310-30 discount was $16.0 million and $18.2 million for the three months ended December 31, 2019 and September 30, 2019, respectively.
--- ---
(4) See reconciliation of GAAP to non-GAAP financial measures in Table 15.
--- ---

12

EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
( in thousands)
(unaudited)
Table 7
Three Months Ended
December 31, 2019 December 31, 2018
Average Average Average Average
Balance Interest Yield/Rate ^(1)^ Balance Interest Yield/Rate ^(1)^
Assets
Interest-earning assets:
$ 3,270,431 $ 14,925 1.81 % $ 3,373,608 $ 19,476 2.29 %
863,261 5,749 2.64 % 1,035,000 7,819 3.00 %
3,491,961 20,192 2.29 % 2,671,257 14,531 2.16 %
34,410,010 425,773 4.91 % 31,534,875 414,517 5.22 %
78,460 594 3.00 % 73,907 991 5.32 %
42,114,123 467,233 4.40 % 38,688,647 457,334 4.69 %
Noninterest-earning assets:
534,326 482,767
(355,759 ) (314,019 )
2,178,552 1,667,793
$ 44,471,242 $ 40,525,188
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
$ 5,540,300 $ 13,589 0.97 % $ 4,449,541 $ 9,963 0.89 %
8,592,058 25,223 1.16 % 8,180,426 27,640 1.34 %
2,118,911 2,266 0.42 % 2,124,697 2,257 0.42 %
10,180,922 47,935 1.87 % 8,783,068 39,459 1.78 %
43,313 404 3.70 % 57,198 624 4.33 %
745,732 4,686 2.49 % 325,826 2,903 3.53 %
148,892 3,382 9.01 % 50,000 3,396 26.95 %
152,341 1,529 3.98 % 151,753 1,676 4.38 %
27,522,469 99,014 1.43 % 24,122,509 87,918 1.45 %
Noninterest-bearing liabilities and stockholders’ equity:
10,976,368 11,447,345
994,646 620,224
4,977,759 4,335,110
$ 44,471,242 $ 40,525,188
Interest rate spread 2.97 % 3.24 %
Net interest income and net interest margin $ 368,219 3.47 % $ 369,416 3.79 %
Adjusted net interest income and adjusted net interest margin (4) $ 362,166 3.41 % $ 363,606 3.73 %

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 2.49% and 2.72% for the three months ended December 31, 2019 and 2018, respectively. The weighted-average interest rates of gross repurchase agreements were 4.35% and 4.77% for the three months ended December 31, 2019 and 2018, respectively.
--- ---
(3) Includes loans HFS. ASC 310-30 discount was $16.0 million and $23.8 million for the three months ended December 31, 2019 and 2018, respectively.
--- ---
(4) See reconciliation of GAAP to non-GAAP financial measures in Table 15.
--- ---

13

EAST WEST BANCORP, INC. AND SUBSIDIARIES
YEAR-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
( in thousands)
(unaudited)
Table 8
Year Ended
December 31, 2018
Average Average Average
Interest Yield/Rate Balance Interest Yield/Rate
Assets
Interest-earning assets:
$ 3,065,426 $ 67,028 2.19 % $ 2,645,544 $ 55,704 2.11 %
969,384 27,819 2.87 % 1,020,822 29,328 2.87 %
2,836,004 67,570 2.38 % 2,737,071 60,011 2.19 %
33,373,136 1,717,415 5.15 % 30,230,014 1,503,514 4.97 %
76,854 2,468 3.21 % 73,691 3,146 4.27 %
40,320,804 1,882,300 4.67 % 36,707,142 1,651,703 4.50 %
Noninterest-earning assets:
471,060 445,768
(330,125 ) (298,600 )
2,023,146 1,688,259
$ 42,484,885 $ 38,542,569
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
$ 5,244,867 $ 58,168 1.11 % $ 4,477,793 $ 34,657 0.77 %
8,220,236 111,081 1.35 % 7,985,526 83,696 1.05 %
2,118,060 9,626 0.45 % 2,245,644 8,621 0.38 %
9,961,289 196,927 1.98 % 7,431,749 107,778 1.45 %
44,881 1,763 3.93 % 32,222 1,398 4.34 %
592,257 16,697 2.82 % 327,435 10,447 3.19 %
74,926 13,582 18.13 % 50,000 12,110 24.22 %
152,445 6,643 4.36 % 159,185 6,488 4.08 %
26,408,961 414,487 1.57 % 22,709,554 265,195 1.17 %
Noninterest-bearing liabilities and stockholders’ equity:
10,502,618 11,089,537
812,461 612,656
4,760,845 4,130,822
$ 42,484,885 $ 38,542,569
Interest rate spread 3.10 % 3.33 %
Net interest income and net interest margin $ 1,467,813 3.64 % $ 1,386,508 3.78 %
Adjusted net interest income and adjusted net interest margin (3) $ 1,455,342 3.61 % $ 1,366,336 3.72 %

All values are in US Dollars.

(1) 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 2.65% and 2.63% for the years ended December 31, 2019 and 2018, respectively. The weighted-average interest rates of gross repurchase agreements were 4.74% and 4.46% for the years ended December 31, 2019 and 2018, respectively.
(2) Includes loans HFS. ASC 310-30 discount was $18.9 million and $28.4 million for the years ended December 31, 2019 and 2018, respectively.
--- ---
(3) See reconciliation of GAAP to non-GAAP financial measures in Table 15.
--- ---

14

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED RATIOS
(unaudited)
Table 9
Three Months Ended ^(1)^ December 31, 2019<br><br>Basis Point Change
December 31, <br>2019 September 30, <br>2019 December 31, <br>2018 Qtr-o-Qtr Yr-o-Yr
Return on average assets 1.68 % 1.58 % 1.69 % 10 bps (1 ) bps
Adjusted return on average assets ^(2)^ 1.67 % 1.58 % 1.69 % 9 (2 )
Return on average equity 15.00 % 14.06 % 15.83 % 94 (83 )
Adjusted return on average equity ^(2)^ 14.91 % 14.06 % 15.83 % 85 (92 )
Return on average tangible equity ^(2)^ 16.71 % 15.75 % 17.97 % 96 (126 )
Adjusted return on average tangible equity ^(2)^ 16.61 % 15.75 % 17.97 % 86 (136 )
Interest rate spread 2.97 % 3.03 % 3.24 % (6 ) (27 )
Net interest margin 3.47 % 3.59 % 3.79 % (12 ) (32 )
Adjusted net interest margin ^(2)^ 3.41 % 3.56 % 3.73 % (15 ) (32 )
Average loan yield 4.91 % 5.11 % 5.22 % (20 ) (31 )
Adjusted average loan yield ^(2)^ 4.84 % 5.08 % 5.14 % (24 ) (30 )
Yield on average interest-earning assets 4.40 % 4.62 % 4.69 % (22 ) (29 )
Average cost of interest-bearing deposits 1.34 % 1.49 % 1.34 % (15 ) —
Average cost of deposits 0.94 % 1.05 % 0.90 % (11 ) 4
Average cost of funds 1.02 % 1.13 % 0.98 % (11 ) 4
Adjusted pre-tax, pre-provision profitability ratio ^(2)^ 2.37 % 2.42 % 2.50 % (5 ) (13 )
Adjusted noninterest expense/average assets ^(2)^ 1.47 % 1.46 % 1.53 % 1 (6 )
Efficiency ratio 44.84 % 41.93 % 45.75 % 291 (91 )
Adjusted efficiency ratio ^(2)^ 38.33 % 37.66 % 37.92 % 67 bps 41 bps
Year Ended December 31, 2019<br><br>Basis Point Change
December 31, <br>2019 December 31, <br>2018 Yr-o-Yr
Return on average assets 1.59 % 1.83 % (24 ) bps
Adjusted return on average assets ^(2)^ 1.67 % 1.77 % (10 )
Return on average equity 14.16 % 17.04 % (288 )
Adjusted return on average equity ^(2)^ 14.87 % 16.50 % (163 )
Return on average tangible equity ^(2)^ 15.88 % 19.48 % (360 )
Adjusted return on average tangible equity ^(2)^ 16.68 % 18.87 % (219 )
Interest rate spread 3.10 % 3.33 % (23 )
Net interest margin 3.64 % 3.78 % (14 )
Adjusted net interest margin ^(2)^ 3.61 % 3.72 % (11 )
Average loan yield 5.15 % 4.97 % 18
Adjusted average loan yield ^(2)^ 5.11 % 4.90 % 21
Yield on average interest-earning assets 4.67 % 4.50 % 17
Average cost of interest-bearing deposits 1.47 % 1.06 % 41
Average cost of deposits 1.04 % 0.71 % 33
Average cost of funds 1.12 % 0.78 % 34
Adjusted pre-tax, pre-provision profitability ratio ^(2)^ 2.43 % 2.46 % (3 )
Adjusted noninterest expense/average assets ^(2)^ 1.52 % 1.61 % (9 )
Efficiency ratio 43.80 % 44.73 % (93 )
Adjusted efficiency ratio ^(2)^ 38.43 % 39.55 % (112 ) bps
(1) Annualized except for efficiency ratio.
--- ---
(2) See reconciliation of GAAP to non-GAAP financial measures in Tables 13, 14, 15 and 16.
--- ---

15

EAST WEST BANCORP, INC. AND SUBSIDIARIES
ALLOWANCE FOR CREDIT LOSSES
( in thousands)
(unaudited)
Table 10
Three Months Ended Year Ended
September 30, <br>2019 December 31, <br>2018 December 31, <br>2019 December 31, <br>2018
Non-Purchased Credit Impaired (“Non-PCI”) Loans
$ 345,576 $ 330,620 $ 310,010 $ 311,300 $ 287,070
20,843 37,884 17,321 100,115 65,043
(11,009 ) (23,450 ) (21,227 ) (59,484 ) (48,827 )
1,254 875 4,763 4,188 5,194
1,480 42 286 1,856 1,757
13 21 24 536 740
2,747 938 5,073 6,580 7,691
2 49 106 125 1,213
— 5 38 7 38
2 54 144 132 1,251
(5 ) (5 ) (2 ) (31 ) (185 )
(8,265 ) (22,463 ) (16,012 ) (52,803 ) (40,070 )
133 (465 ) (19 ) (325 ) (743 )
358,287 345,576 311,300 358,287 311,300
Purchased Credit Impaired (“PCI”) Loans
— 5 31 22 58
— (5 ) (9 ) (22 ) (36 )
— — 22 — 22
358,287 345,576 311,322 358,287 311,322
Unfunded Credit Facilities
13,424 13,019 11,919 12,566 13,318
(2,266 ) 405 647 (1,408 ) (752 )
11,158 13,424 12,566 11,158 12,566
$ 369,445 $ 359,000 $ 323,888 $ 369,445 $ 323,888

All values are in US Dollars.

16

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CREDIT QUALITY
( in thousands)
(unaudited)
Table 11
Non-PCI Nonperforming Assets September 30, 2019 December 31, 2018
Nonaccrual loans:
Commercial:
C&I 74,835 $ 90,830 $ 43,840
CRE:
CRE 18,942 24,218
Multifamily residential 551 1,260
Total CRE 19,493 25,478
Consumer:
Residential mortgage:
Single-family residential 9,484 5,259
HELOCs 9,924 8,614
Total residential mortgage 19,408 13,873
Other consumer 2,495 2,502
Total nonaccrual loans 132,226 85,693
Other real estate owned, net 1,122 133
Other nonperforming assets 1,167 7,167
Total nonperforming assets 121,511 $ 134,515 $ 92,993
Credit Quality Ratios September 30, 2019 December 31, 2018
Non-PCI nonperforming assets to total assets ^(1)^ % 0.31 % 0.23 %
Non-PCI nonaccrual loans to loans HFI ^(1)^ % 0.39 % 0.26 %
Allowance for loan losses to loans HFI ^(1)^ % 1.02 % 0.96 %
Allowance for loan losses to non-PCI nonaccrual loans % 261.35 % 363.30 %
Annualized quarterly net charge-offs to average loans HFI % 0.26 % 0.20 %
Annual net charge-offs to average loans HFI % N/A 0.13 %

All values are in US Dollars.

N/A - Not applicable

(1) Total assets and loans HFI include PCI loans of $222.9 million, $240.7 million and $308.0 million as of December 31, 2019, September 30, 2019 and December 31, 2018, respectively.

17

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
( in thousands)
(unaudited)
Table 12
During the second quarter of 2019, the Company reversed 30.1 million of certain previously claimed tax credits related to the DC Solar tax credit investments (“DC Solar”). The table below shows the computation of the Company’s effective tax rate excluding the impact of the DC Solar tax credits reversal. Management believes that excluding the impact of the DC Solar tax credits reversal from the effective tax rate computation allows comparability to prior periods.
Three Months Ended Year Ended
December 31, 2019 September 30, 2019 December 31, 2018 December 31, 2019 December 31, 2018
Income tax expense $ 31,067 $ 34,951 $ 32,037 $ 169,882 $ 114,995
Less: Reversal of certain previously claimed tax credits related to DC Solar — — — (30,104 ) —
Adjusted income tax expense $ 31,067 $ 34,951 $ 32,037 $ 139,778 $ 114,995
Income before income taxes 219,282 206,367 205,055 843,917 818,696
Effective tax rate 14.2 % 16.9 % 15.6 % 20.1 % 14.0 %
Less: Reversal of certain previously claimed tax credits related to DC Solar — % — % — % (3.5 )% — %
Adjusted effective tax rate 14.2 % 16.9 % 15.6 % 16.6 % 14.0 %

All values are in US Dollars.

18

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
( and shares in thousands, except for per share data)
(unaudited)
Table 13
During the first, second and fourth quarters of 2019, the Company recorded a 7.0 million pre-tax impairment charge, reversed 30.1 million of certain previously claimed tax credits and recorded a 1.6 million pre-tax impairment recovery related to DC Solar, respectively. During the first quarter of 2018, the Company sold its Desert Community Bank (“DCB”) branches and recognized a pre-tax gain on sale of 31.5 million. 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
December 31, 2019 September 30, 2019 December 31, 2018
Net income $ 188,215 $ 171,416 $ 173,018
Less:  Impairment recovery related to DC Solar (2) (1,583 ) — —
Tax effect of adjustment (3) 468 — —
Adjusted net income $ 187,100 $ 171,416 $ 173,018
Diluted weighted average number of shares outstanding 146,318 146,120 146,133
Diluted EPS $ 1.29 $ 1.17 $ 1.18
Diluted EPS impact of impairment recovery related to DC Solar, net of tax (0.01 ) — —
Adjusted diluted EPS $ 1.28 $ 1.17 $ 1.18
Average total assets $ 44,471,242 $ 43,136,273 $ 40,525,188
Average stockholders’ equity $ 4,977,759 $ 4,838,281 $ 4,335,110
Return on average assets (1) 1.68 % 1.58 % 1.69 %
Adjusted return on average assets (1) 1.67 % 1.58 % 1.69 %
Return on average equity (1) 15.00 % 14.06 % 15.83 %
Adjusted return on average equity (1) 14.91 % 14.06 % 15.83 %
Year Ended
December 31, 2019 December 31, 2018
Net income $ 674,035 $ 703,701
Add: Impairment charge related to DC Solar (2) 6,978 —
Less:  Impairment recovery related to DC Solar (2) (1,583 ) —
Gain on sale of business — (31,470 )
Tax effect of adjustments (3) (1,595 ) 9,303
Add: Reversal of certain previously claimed tax credits related to DC Solar 30,104 —
Adjusted net income $ 707,939 $ 681,534
Diluted weighted average number of shares outstanding 146,179 146,169
Diluted EPS $ 4.61 $ 4.81
Diluted EPS impact of impairment charge related to DC Solar, net of tax 0.03 —
Diluted EPS impact of impairment recovery related to DC Solar, net of tax (0.01 ) —
Diluted EPS impact of gain on sale of business, net of tax — (0.15 )
Diluted EPS impact of reversal of certain previously claimed tax credits related to DC Solar 0.21 —
Adjusted diluted EPS $ 4.84 $ 4.66
Average total assets $ 42,484,885 $ 38,542,569
Average stockholders’ equity $ 4,760,845 $ 4,130,822
Return on average assets 1.59 % 1.83 %
Adjusted return on average assets 1.67 % 1.77 %
Return on average equity 14.16 % 17.04 %
Adjusted return on average equity 14.87 % 16.50 %

All values are in US Dollars.

(1) Annualized.
(2) Included in Amortization of tax credit and other investments.
--- ---
(3) Applied statutory rate of 29.56%.
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19

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
( in thousands)
(unaudited)
Table 14
Adjusted efficiency ratio represents adjusted noninterest expense divided by adjusted revenue. Adjusted pre-tax, pre-provision profitability ratio represents the aggregate of adjusted revenue less adjusted noninterest expense, divided by average total assets. Adjusted revenue represents the aggregate of net interest income and adjusted noninterest income, where adjusted noninterest income excludes the gain on the sale of the DCB branches that were sold in the first quarter of 2018 (where applicable). 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
December 31, 2019 September 30, 2019 December 31, 2018
Net interest income before provision for credit losses $ 368,219 $ 369,807 $ 369,416
Total noninterest income 63,013 51,474 41,695
Total revenue $ 431,232 $ 421,281 $ 411,111
Total noninterest expense $ 193,373 $ 176,630 $ 188,097
Less: Amortization of tax credit and other investments (27,038 ) (16,833 ) (30,958 )
Amortization of core deposit intangibles (1,044 ) (1,148 ) (1,265 )
Adjusted noninterest expense $ 165,291 $ 158,649 $ 155,874
Efficiency ratio 44.84 % 41.93 % 45.75 %
Adjusted efficiency ratio 38.33 % 37.66 % 37.92 %
Adjusted pre-tax, pre-provision income $ 265,941 $ 262,632 $ 255,237
Average total assets $ 44,471,242 $ 43,136,273 $ 40,525,188
Adjusted pre-tax, pre-provision profitability ratio (1) 2.37 % 2.42 % 2.50 %
Adjusted noninterest expense (1)/average assets 1.47 % 1.46 % 1.53 %
Year Ended
December 31, 2019 December 31, 2018
Net interest income before provision for credit losses $ 1,467,813 $ 1,386,508
Total noninterest income 209,377 210,909
Total revenue 1,677,190 1,597,417
Noninterest income 209,377 210,909
Less: Gain on sale of business — (31,470 )
Adjusted noninterest income $ 209,377 $ 179,439
Adjusted revenue $ 1,677,190 $ 1,565,947
Total noninterest expense $ 734,588 $ 714,466
Less: Amortization of tax credit and other investments (85,515 ) (89,628 )
Amortization of core deposit intangibles (4,518 ) (5,492 )
Adjusted noninterest expense $ 644,555 $ 619,346
Efficiency ratio 43.80 % 44.73 %
Adjusted efficiency ratio 38.43 % 39.55 %
Adjusted pre-tax, pre-provision income $ 1,032,635 $ 946,601
Average total assets $ 42,484,885 $ 38,542,569
Adjusted pre-tax, pre-provision profitability ratio 2.43 % 2.46 %
Adjusted noninterest expense /average assets 1.52 % 1.61 %

All values are in US Dollars.

(1) Annualized.

20

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
( in thousands)
(unaudited)
Table 15
Management believes that presenting the adjusted average loan yield and adjusted net interest margin that exclude the ASC 310-30 discount accretion impact provides clarity to financial statement users regarding the change in loan contractual yields and allows comparability to prior periods.
Yield on Average Loans Three Months Ended Year Ended
December 31, <br>2019 September 30, <br>2019 December 31, <br>2018 December 31, <br>2019 December 31, <br>2018
Interest income on loans $ 425,773 $ 433,658 $ 414,517 $ 1,717,415 $ 1,503,514
Less: ASC 310-30 discount accretion income (6,053 ) (2,521 ) (5,810 ) (12,471 ) (20,172 )
Adjusted interest income on loans $ 419,720 $ 431,137 $ 408,707 $ 1,704,944 $ 1,483,342
Average loans $ 34,410,010 $ 33,661,282 $ 31,534,875 $ 33,373,136 $ 30,230,014
Add: ASC 310-30 discount 16,012 18,172 23,833 18,915 28,400
Adjusted average loans $ 34,426,022 $ 33,679,454 $ 31,558,708 $ 33,392,051 $ 30,258,414
Average loan yield 4.91 % ^(1)^ 5.11 % ^(1)^ 5.22 % ^(1)^ 5.15 % 4.97 %
Adjusted average loan yield 4.84 % ^(1)^ 5.08 % ^(1)^ 5.14 % ^(1)^ 5.11 % 4.90 %
Net Interest Margin
Net interest income $ 368,219 $ 369,807 $ 369,416 $ 1,467,813 $ 1,386,508
Less: ASC 310-30 discount accretion income (6,053 ) (2,521 ) (5,810 ) (12,471 ) (20,172 )
Adjusted net interest income $ 362,166 $ 367,286 $ 363,606 $ 1,455,342 $ 1,366,336
Average interest-earning assets $ 42,114,123 $ 40,919,386 $ 38,688,647 $ 40,320,804 $ 36,707,142
Add: ASC 310-30 discount 16,012 18,172 23,833 18,915 28,400
Adjusted average interest-earning assets $ 42,130,135 $ 40,937,558 $ 38,712,480 $ 40,339,719 $ 36,735,542
Net interest margin 3.47 % ^(1)^ 3.59 % ^(1)^ 3.79 % ^(1)^ 3.64 % 3.78 %
Adjusted net interest margin 3.41 % ^(1)^ 3.56 % ^(1)^ 3.73 % ^(1)^ 3.61 % 3.72 %

All values are in US Dollars.

(1) Annualized.

21

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
( in thousands)
(unaudited)
Table 16
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible 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.
December 31, 2019 September 30, 2019 December 31, 2018
Stockholders’ equity $ 5,017,617 $ 4,882,664 $ 4,423,974
Less: Goodwill (465,697 ) (465,697 ) (465,547 )
Other intangible assets (1) (16,079 ) (17,435 ) (22,365 )
Tangible equity $ 4,535,841 $ 4,399,532 $ 3,936,062
Total assets $ 44,196,096 $ 43,274,659 $ 41,042,356
Less: Goodwill (465,697 ) (465,697 ) (465,547 )
Other intangible assets (1) (16,079 ) (17,435 ) (22,365 )
Tangible assets $ 43,714,320 $ 42,791,527 $ 40,554,444
Total stockholders’ equity to total assets ratio 11.35 % 11.28 % 10.78 %
Tangible equity to tangible assets ratio 10.38 % 10.28 % 9.71 %

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) related to DC Solar and the gain on the sale of the DCB branches; 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 Year Ended
December 31, 2019 September 30, 2019 December 31, 2018 December 31, 2019 December 31, 2018
Net Income $ 188,215 $ 171,416 $ 173,018 $ 674,035 $ 703,701
Add: Amortization of core deposit intangibles 1,044 1,148 1,265 4,518 5,492
Amortization of mortgage servicing assets 567 834 448 2,738 1,814
Tax effect of adjustments ^(2)^ (476 ) (586 ) (506 ) (2,145 ) (2,160 )
Tangible net income (e) $ 189,350 $ 172,812 $ 174,225 $ 679,146 $ 708,847
Add: Impairment charge related to DC Solar ^(3)^ — — — 6,978 —
Less:  Impairment recovery related to DC Solar ^(3)^ (1,583 ) — — (1,583 ) —
Gain on sale of business — — — — (31,470 )
Tax effect of adjustment ^(2)^ 468 — — (1,595 ) 9,303
Add: Reversal of certain previously claimed tax credits related to DC Solar — — — 30,104 —
Adjusted tangible net income (f) $ 188,235 $ 172,812 $ 174,225 $ 713,050 $ 686,680
Average stockholders’ equity $ 4,977,759 $ 4,838,281 $ 4,335,110 $ 4,760,845 $ 4,130,822
Less: Average goodwill (465,697 ) (465,697 ) (465,547 ) (465,663 ) (466,346 )
Average other intangible assets ^(1)^ (16,793 ) (18,391 ) (23,130 ) (19,340 ) (25,337 )
Average tangible equity (g) $ 4,495,269 $ 4,354,193 $ 3,846,433 $ 4,275,842 $ 3,639,139
Return on average tangible equity (e)/(g) 16.71 % ^(4)^ 15.75 % ^(4)^ 17.97 % ^(4)^ 15.88 % 19.48 %
Adjusted return on average tangible equity (f)/(g) 16.61 % ^(4)^ 15.75 % ^(4)^ 17.97 % ^(4)^ 16.68 % 18.87 %
(1) Includes core deposit intangibles and mortgage servicing assets.
--- ---
(2) Applied statutory rate of 29.56%.
--- ---
(3) Included in Amortization of tax credit and other investments.
--- ---
(4) Annualized.
--- ---

22

ewbc4q19earningspresenta

EWBC Earnings Results Fourth Quarter and Full Year 2019 January 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 ongoing trade dispute between the 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 United States (“U.S.”) that resulted in the Secured Overnight Financing Rate (“SOFR”) 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; changes in the U.S. economy, including inflation, deflation, employment levels, rate of growth and general business conditions; government intervention in the financial system, including changes in government interest rate policies; impact of political developments, 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; changes in income tax laws and regulations; 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; 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 our stock price; 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 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 its Annual Report on Form 10-K for the year ended December 31, 2018, 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

Highlights of Fourth Quarter and Full Year 2019 Results $ in millions, except Fourth Quarter Q-o-Q Change Y-o-Y Change Full Year Y-o-Y Change per share data 2019 vs. 3Q19 vs. 4Q18 2019 vs. FY 2018 Earnings Net income $ 188.2 10% 9% $ 674.0 (4)% Adj.* net income $ 187.1 9% 8% $ 707.9 4% EPS $ 1.29 10% 9% $ 4.61 (4)% Adj.* EPS $ 1.28 9% 8% $ 4.84 4% NII $ 368.2 (0.4)% (0.3)% $ 1,467.8 6% NIM 3.47% (12) bps (32) bps 3.64% (14) bps Balance Sheet Loans $ 34,779 2% 7% $ 34,779 7% Deposits $ 37,324 2% 5% $ 37,324 5% TBVPS* $ 31.15 3% 15% $ 31.15 15% Credit Quality NCO ratio 0.10% (16) bps (10) bps 0.16% 3 bps NPAs to total assets 0.27% (4) bps 4 bps 0.27% 4 bps * See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s Earnings Press Releases. 3

4Q19 Earnings Growth and Profitability Net Income and Diluted EPS Adjusted* Net Income and Diluted EPS $188 $180 $187 $173 $173 $171 $164 $171 $169 $1.28 $150 $1.29 -2% +7% $1.24 -5% +9% $1.18 $1.17 $1.18 $1.16 $1.17 $1.12 $1.03 $ $ inmillions, except per share data $ $ inmillions, except per share data 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19* 2Q19* 3Q19 4Q19* Net income Diluted EPS PTPP Income & PTPP Profitability Ratio Profitability Ratios (Adj.* in 1Q19, 2Q19 & 4Q19) 2.00% 40.0% $255 $260 $263 $266 1.74% $244 5.00% 1.69% 1.68% 1.67% $250 1.58% 4.50% 30.0% $200 4.00% 3.50% 18.0% 17.4% $150 17.0% 15.7% 16.6% 20.0% 2.51% 3.00% $ $ inmillions 2.50% 2.43% 2.42% 2.37% $100 2.50% 15.8% 15.5% 15.1% 14.9% 10.0% 2.00% 14.1% $50 1.50% $- 1.00%0.00% 0.0% 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19* 2Q19* 3Q19 4Q19* Adj.* PTPP income Adj.* PTPP profitability ratio Return on avg. assets Return on avg. equity Return on avg. tang. eq.* * See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s Earnings Press Releases. 4

4Q19 Record Loans of $34.8 billion 4Q19 EOP Loan Mix: $34.8 billion . EOP loan growth of 7% Y-o-Y and 2% Q-o-Q. ($ in billions) . FY 2019 avg. loan growth of 10% Y-o-Y. . Avg. growth in CRE: $1.1bn (+9% Y-o-Y). $8.8 25% . Avg. growth in residential mortgage: $1.0bn (+15% Y-o-Y). $12.2 . Avg. growth in C&I: $1.0bn (+9% Y-o-Y). 35% . 4Q19 avg. loan yield: 4.91%, down 20 bps Q-o-Q. $13.8 40% . Reflects one 25 basis point cut to the fed funds rate & decline in LIBOR rates during 4Q19. C&I Total CRE Residential mortgage & other consumer Average Loans Average Loan Yield $33.0 $33.7 $34.4 35 $32.4 $35.0 5.50% 5.50% $31.5 6.00% 5.28% 5.30% +11% +7% +8% +9% 4.83% 30 $30.0 8.3 8.6 8.8 5.00% 7.8 8.1 5.22% 5.30% 5.28% 5.11% 25 $25.0 4.91% 4.00% 20 13.4 $20.0 12.1 12.5 12.7 12.9 3.00% 15 $15.0 $ $ inbillions 2.00% 2.50% 2.44% 10 $10.0 2.35% 2.17% 1.00% 1.79% 5 11.6 11.8 12.0 12.2 12.2 $5.0 0 $- 0.00% 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 C&I C&ITotal CRETotal CREResidentialResidential mortgage mortgage & other & consumerother consumerLQA average loan growth Avg. loan yield Avg. Prime Rate Avg. 1M LIBOR Rate 5

4Q19 Record Deposits of $37.3 billion 4Q19 EOP Deposit Mix: $37.3 billion . 12.31.19 EOP loan-to-deposit ratio of 93.2%. ($ in billions) . EOP deposit growth of 5% Y-o-Y and 2% Q-o-Q. . FY 2019 avg. deposit growth of 8% Y-o-Y. $7.3 . Avg. growth in time: $2,530mm (+34% Y-o-Y). 20% $11.1 . Avg. growth in IB checking: $767mm (+17% Y-o-Y). 30% . Avg. growth in MMDA: $235mm (+3% Y-o-Y). $8.7 . Avg. change in DDA: -$587mm (-5% Y-o-Y). 23% . Avg. change in savings: -$128mm (-6% Y-o-Y). $10.2 27% . 4Q19 avg. cost of deposits: 0.94%, down 11 bps Q-o-Q. 4Q19 avg. cost of IB deposits: 1.34%, down 15 bps Q-o-Q. . Cost of deposits as of 12.31.19: 0.90%, down 11 bps Q-o-Q; DDA Time MMDA IB Checking & Savings Cost of IB deposits as of 12.31.19: 1.28%, down 15 bps Q-o-Q. Average Deposits Avg. Cost of Deposits Relative to Fed Funds & 1M LIBOR $37.4 40 $36.5 $40.0 $35.0 $34.9 $35.3 3.00% +5% +13% +10% 2.50% 2.50% 35 -1% $35.0 7.6 2.50% 2.35% 2.30% 6.6 7.3 7.2 30 7.3 $30.0 2.50% 2.44% 1.83% 2.00% 2.28% 25 8.3 8.6 $25.0 8.2 8.1 7.9 2.17% 20 $20.0 1.50% 1.79% $ $ inbillions 15 8.8 9.9 10.3 10.2 $15.0 9.4 1.00% $10.0 1.57% 10 1.34% 1.50% 1.49% 1.34% 1.11% 0.50% 0.90% 1.07% 1.05% 0.94% 5 11.4 10.1 10.2 10.7 11.0 $5.0 0 $- 0.00% 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 DDA Time MMDA IB Checking & Savings LQA average deposit growth Avg. cost of deposits Avg. cost of IB deposits Avg. 1M LIBOR Rate Avg. Fed Funds Rate 6

4Q19 Summary Income Statement $ in millions, except per share data 4Q19 3Q19 $ Change % Change Notable & Tax-Related Items Adjusted net interest income $ 362.2 $ 367.3 $ (5.1) (1.4) % . Adjusted** 4Q19 EPS: $1.28. ASC 310-30 discount 6.1 2.5 3.5 140 % accretion income . Included in amortization of tax credit and other investments: $1.6mm Net interest income 368.2 369.8 (1.6) (0.4) % impairment recovery related to Fee income & net gains on 52.5 50.9 1.7 3 % certain tax credit investments, which sales of loans* were impaired in 1Q19. Other 10.5 0.6 9.9 NM . Recovery adds $0.01 to EPS. Total noninterest income* 63.0 51.5 11.5 22 % . 4Q19 effective tax rate: 14%. Adjusted noninterest expense 165.3 158.6 6.6 4 % 3Q19 effective tax rate: 17%. Amortization of tax credit and other investments, and core 28.1 18.0 10.1 56 % . FY 2019 income tax expense was deposit intangibles $170mm & effective tax rate was 20%, which included a $30.1mm Total noninterest expense 193.4 176.6 16.7 9 % reversal of certain previously claimed Provision for credit losses 18.6 38.3 19.7 (51) % tax credits. . Adjusted** for this item, FY 2019 Income tax expense 31.1 35.0 (3.9) (11) % income tax expense was $140mm & Net income $ 188.2 $ 171.4 $ 16.8 10 % effective tax rate was 17%. Diluted EPS $ 1.29 $ 1.17 $ 0.12 10 % . For FY 2020, projecting an effective tax rate of approximately 15%. * See slide 10 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. 7

4Q19 Net Interest Income & Net Interest Margin . 4Q19 NII: $368.2mm, down by $1.6mm or 0.4% Q-o-Q. Net Interest Income . 4Q19 NIM: 3.47%, down 12 bps Q-o-Q. $369 $362 $367 $370 $368 . Impact to NIM from change in yields & rates (Q-o-Q): +1% +1% -0.4% -2% . -15 bps from lower loan yields, incl. fees & discounts. . -4 bps from lower other earning asset yields. . -4 bps from asset mix shift: increased share of avg. AFS investment securities in mix. $ $ inmillions . +11 bps from lower funding costs. . 4Q19 Adj.* NIM: 3.41%, down 15 bps Q-o-Q. $150 . 4Q19 ASC 310-30 discount accretion income of $6.1mm, 4Q18 1Q19 2Q19 3Q19 4Q19 vs. $2.5mm in 3Q19. Net Interest Income NII growth . Accretable ASC 310-30 discount: $10.0mm as of 12.31.19. NIM relative to Fed Funds, Prime Rate & 1M LIBOR Q-o-Q Change in Avg. Loan Yield & Cost of Deposits Fed funds Fed funds cuts: cut: 5.50% 5.50% 20 6.00% 5.28% 5.30% 17 (50) bps (25) bps 4.83% 12 5.00% 8 3.79% 3.79% 3.73% 4 4.00% 3.59% 3.47% 3.00% 2.35% 2.50% 2.50% 2.30% 1.83% (2) 2.00% 2.28% 2.50% 2.44% 2.17% (6) Fed funds 1.00% 1.79% (11) hike: (17) 0.00% + 25 bps (20) 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 NIM 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) *See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s Earnings Press Releases. 8

Loan Portfolio: Underlying Interest Rate Detail EWBC’s Loan Portfolio Breakdown: Fixed, Hybrid, & Variable Rate Loans (as of December 31, 2019) Breakdown by interest rate indices % of Breakdown by loan type % of $ in mm. total loans $ in mm. total loans Total Fixed rate loans 4,399.0 13% C&I 1,574.5 5% Hybrid loans in fixed rate period: CRE 1,191.7 3% Resetting within 1 year 854.6 2% SFR, HELOC, & other consumer 1,632.8 5% Resetting: 1 to 2 years 869.8 3% Total Fixed rate loans 4,399.0 13% Resetting: 2 to 3 years 1,482.0 4% CRE 2,435.5 7% Resetting: > 3 years 3,445.2 10% SFR, HELOC, & other consumer 4,216.0 12% Total Hybrid loans in fixed rate period 6,651.5 19% Total Hybrid loans in fixed rate period 6,651.5 19% Variable rate loans: C&I 7,081.9 20% Linked to 1-M LIBOR (or shorter) 9,368.6 27% CRE 4,554.9 13% Linked to 2-M or 3-M LIBOR 1,712.1 5% SFR, HELOC, & other consumer 266.0 1% Linked to 6-M or 1-Y LIBOR 822.1 2% Subtotal - Variable rate loans linked to LIBOR 11,902.8 34% Linked to LIBOR rates 11,902.8 34% C&I 2,829.1 8% Linked to Prime rates 9,647.2 28% CRE 5,339.5 15% Linked to all other interest rate indices 2,138.9 6% SFR, HELOC, & other consumer 1,478.6 4% Total Variable rate loans 23,688.8 68% Subtotal - Variable rate loans linked to Prime 9,647.2 28% Other (NPLs, premiums, discounts) 39.6 0% C&I 661.7 2% Total gross loans 34,779.0 100% CRE 246.7 1% SFR, HELOC, & other consumer 1,230.5 4% . The share of fixed rate loans and hybrid loans Subtotal - Variable rate loans - all other indices 2,138.9 6% in fixed rate period was 32% as of 12.31.19, Total Variable rate loans 23,688.8 68% Other (NPLs, premiums, discounts) 39.6 0% compared to 28% as of 12.31.18. SFR loan Total gross loans 34,779.0 100% growth contributed to this shift. Note: Hybrid loans shows those still in fixed rate period. Hybrid loans already subject to variable rate are shown in Variable loans. Note: Loans (HFI & HFS) net of deferred fees, premiums, or discounts, and gross of ALLL. 9

4Q19 Noninterest Income Detail 60.0 Fee Income & Net Gains on Sales of Loans * $60.0 Total noninterest income of $63.0mm in 4Q19 vs. $51.5mm in 3Q19. $52.5 $50.9 $48.9 1.1 2% . Fee income and net gains on sales of loans: 50.0 2.0 $50.0 $52.5mm in 4Q19, up $1.7mm or +3% Q-o-Q. 14.1 27% . IRC and other derivative income of $17.8mm in 4Q19: 11.8 11.1 $38.8 $39.1 40.0 $40.0 . Customer-driven IRC revenue of $14.1mm, increase 0.9 1.5 of $3.0mm Q-o-Q, reflects strong customer demand 2.8 4.9 3.8 4.8 4.2 8% 2.8 for interest rate hedging products. 3.8 30.0 7.3 6.0 11% $30.0 . Credit valuation adjustment of $3.7mm, Q-o-Q 7.2 8.1 5.0 increase of $6.4mm, driven by increase in long-term interest rates. $ $ inmillions 9.6 9.8 19% 20.0 9.3 9.5 9.7 $20.0 . Lending fees: $17.2mm in 4Q19, +$2.2mm Q-o-Q. . Deposit account fees: $9.8mm in 4Q19, +$0.1mm Q-o-Q. 10.0 $10.0 17.2 33% 15.2 15.0 16.4 15.0 Interest Rate Contracts and Other Derivative Income Detail 0.0 $- ($ in millions) 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 4Q19 Mix Revenue $ 2.8 $ 4.9 $ 11.8 $ 11.1 $ 14.1 Lending fees Deposit account fees Foreign exchange income Wealth management fees CVA (1.7) (1.7) (1.4) (2.7) 3.7 IRC revenue Net gains on sales of loans Total $ 1.1 $ 3.2 $ 10.4 $ 8.4 $ 17.8 * 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. 10

4Q19 Operating Expense & Efficiency Adjusted* Noninterest Expense Noninterest Expense & Efficiency Ratio $165 70.0% $161 $160 $159 $165.3 $156 $160.8 $170.0 $155.9 $159.8 $158.6 160.0 37.9% 39.8% 38.0% 37.7% 38.3% 26.7 16% $150.0 25.5 24.8 26.9 140.0 27.8 9.2 9.7 11.2 7% $130.0 9.9 9.4 2.1 2.1 3.2 2% 120.0 1.4 2.6 17.3 17.4 17.1 10% $110.0 18.0 17.9 4.5 5.4 6.0 4% $100 0.0% 100.0 3.6 5.5 $90.0 4Q18 1Q19 2Q19 3Q19 4Q19 Adj.* noninterest expense Adj.* efficiency ratio 80.0 $ $ inmillions $70.0 60.0 $50.0 102.3 100.5 101.1 61% 93.8 97.8 40.0 $30.0 . 4Q19 total noninterest expense: $193.4mm, increase of 9% Q-o-Q from $176.6mm. 20.0 $10.0 . 4Q19 adj.* noninterest expense: $165.3mm, increase of 4% Q-o-Q from $158.6mm. Largest increase in 0.0 $(10.0) 4Q18 1Q19 2Q19 3Q19 4Q19 4Q19 Mix compensation and employee benefits expense. Comp and employee benefits Deposit & loan related Occupancy & Equipment Consulting . Essentially stable 5-quarter adj.* efficiency ratio range Computer software & Data processing Other operating expense 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. 11

Asset Quality Metrics Allowance for Loan Losses Provision for Credit Losses & Net Charge-off Ratio $110 $99 $358 0.90% $311 $287 2.40% 0.70% $261 $64 $53 0.50% $46 inmillions 1.02% 1.03% $40 0.99% 0.96% 1.20% $36 $ $ inmillions $ $ 0.30% $27 $23 0.10% 0.15% 0.13% 0.16% $- 0.00% 0.08% $- -0.10% 12.31.16 12.31.17 12.31.18 12.31.19 12.31.16 12.31.17 12.31.18 12.31.19 Allowance for loan losses ALLL/Loans HFI Net charge-offs Provision expense NCOs/Avg. loans HFI Nonperforming Assets* . Allowance coverage of loans HFI: 1.03% as of 1.00% $130 12.31.19, compared to 1.02% as of 09.30.19 and $122 $115 0.96% as of 12.31.18. 0.80% $100 $93 . Nonperforming assets to total assets ratio: 0.27% as of 0.60% 12.31.19, compared to 0.31% as of 09.30.19 and 0.23% as of 12.31.18. 0.40% $ $ inmillions 0.37% . 4Q19 net charge-off ratio: 0.10% of avg. loans HFI 0.31% 0.27% 0.20% 0.23% annualized, compared to 0.26% annualized in 3Q19. FY 2019 net charge-off ratio: 0.16% of avg. loans HFI. $- 0.00% 12.31.16 12.31.17 12.31.18 12.31.19 . 4Q19 provision for credit losses: $18.6mm. Nonperforming assets NPAs/Total assets FY 2019 provision for credit losses: $99.0mm. * Nonperforming assets and net charge-offs exclude purchased credit impaired loans. HFI represents held-for-investment. 12

Strong Capital Ratios . Tangible equity* per common share increased by 15% Y-o-Y. . Tangible equity to tangible assets ratio* increased by 67 bps Y-o-Y. . Regulatory capital ratios increased by 45 bps to 75 bps Y-o-Y. . Quarterly common stock dividend of 27.5 cents per share, or annualized $1.10 per share. EWBC’s Capital Position 0.16 $32.00 14.4% $31.15 13.7% 0.14 12.9% 12.9% 12.2% 12.2% $31.00 0.12 10.4% 10.5% 10.3% $30.00 9.7% 9.9% 0.1 8.5% $29.00 0.08 7.0% $28.00 0.06 $27.15 4.0% $27.00 0.04 0.02 $26.00 0 $25.00 Tangible equity* Tangible equity to CET1 risk-based Tier 1 risk-based Total risk-based Tier 1 leverage per share tangible assets ratio* capital ratio capital ratio capital ratio capital ratio Minimum Capital Ratio + Conservation Buffer EWBC 12.31.18 EWBC 12.31.19 *See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s Earnings Press Releases. Note: The Company’s December 31, 2019 regulatory capital ratios are preliminary. 13

Management Outlook: Full Year 2020 FY 2020 expectations Earnings drivers compared to FY 2019 results 2019 actual End of Period Loans . Increase at a percentage rate of 7% to 8%. $34.8 billion +7% Y-o-Y Net Interest Margin . 3.40% to 3.45%, 3.64% including the impact of ASC 310-30 discount accretion. -14 bps Y-o-Y Net Interest Income . Flat to an increase of 2% year-over-year, $1.5 billion including ASC 310-30 discount accretion income. +6% Y-o-Y Noninterest Expense . Increase at a percentage rate of approximately 4%, $645 million excluding tax credit investment & core deposit intangible +4% Y-o-Y amortization. Provision for Credit Losses . $90 million to $120 million. $99 million Takes into account expected volatility as a result of the CECL +54% Y-o-Y model. Tax Items . Full year effective tax rate of approx. 15%, Effective tax rate: including the impact of tax credit investments. 20% Interest Rates . No change to the fed funds rate in the year 2020. Fed funds decreased: -75 bps 14

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 second quarter of 2019, the Company reversed $30.1 million of certain previously claimed tax credits related to the DC Solar tax credit investments (“DC Solar”). The table below shows the computation of the Company’s effective tax rate excluding the impact of the DC Solar tax credits reversal. Management believes that excluding the impact of the DC Solar tax credits reversal from the effective tax rate computation allows comparability to prior periods. Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, 2019 2019 2018 2019 2018 Income tax expense (a) $ 31,067 $ 34,951 $ 32,037 $ 169,882 $ 114,995 Less: Reversal of certain previously claimed tax credits related to DC Solar (b) — — — (30,104) — Adjusted income tax expense (c) $ 31,067 $ 34,951 $ 32,037 $ 139,778 $ 114,995 Income before income taxes (d) 219,282 206,367 205,055 843,917 818,696 Effective tax rate (a)/(d) 14.2% 16.9% 15.6% 20.1% 14.0% Less: Reversal of certain previously claimed tax credits related to DC Solar (b)/(d) —% — % — % (3.5)% — % Adjusted effective tax rate (c)/(d) 14.2% 16.9% 15.6% 16.6% 14.0% 16

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, second and fourth quarters of 2019, the Company recorded a $7.0 million pre-tax impairment charge, reversed $30.1 million of certain previously claimed tax credits and recorded a $1.6 million pre-tax impairment recovery related to DC Solar, respectively. During the first quarter of 2018, the Company sold its Desert Community Bank (“DCB”) branches and recognized a pre-tax gain on sale of $31.5 million. 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 September 30, December 31, 2019 2019 December 31, 2018 Net income (a) $ 188,215 $ 171,416 $ 173,018 Less: Impairment recovery related to DC Solar (2) (1,583) — — Tax effect of adjustment (3) 468 — — Adjusted net income (b) $ 187,100 $ 171,416 $ 173,018 Diluted weighted average number of shares outstanding 146,318 146,120 146,133 Diluted EPS $ 1.29 $ 1.17 $ 1.18 Diluted EPS impact of impairment recovery related to DC Solar, net of tax (0.01) — — Adjusted diluted EPS $ 1.28 $ 1.17 $ 1.18 Average total assets (c) $ 44,471,242 $ 43,136,273 $ 40,525,188 Average stockholders’ equity (d) $ 4,977,759 $ 4,838,281 $ 4,335,110 Return on average assets (1) (a)/(c) 1.68% 1.58% 1.69% Adjusted return on average assets (1) (b)/(c) 1.67% 1.58% 1.69% Return on average equity (1) (a)/(d) 15.00% 14.06% 15.83% Adjusted return on average equity (1) (b)/(d) 14.91% 14.06% 15.83% (1) Annualized. (2) Included in Amortization of tax credit and other investments. (3) Applied statutory rate of 29.56%. 17

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, second and fourth quarters of 2019, the Company recorded a $7.0 million pre-tax impairment charge, reversed $30.1 million of certain previously claimed tax credits and recorded a $1.6 million pre-tax impairment recovery related to DC Solar, respectively. During the first quarter of 2018, the Company sold its Desert Community Bank (“DCB”) branches and recognized a pre-tax gain on sale of $31.5 million. 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. Year Ended December 31, 2019 December 31, 2018 Net income (e) $ 674,035 $ 703,701 Add: Impairment charge related to DC Solar (2) 6,978 — Less: Impairment recovery related to DC Solar (2) (1,583) — Gain on sale of business — (31,470) Tax effect of adjustments (3) (1,595) 9,303 Add: Reversal of certain previously claimed tax credits related to DC Solar 30,104 — Adjusted net income (f) $ 707,939 $ 681,534 Diluted weighted average number of shares outstanding 146,179 146,169 Diluted EPS $ 4.61 $ 4.81 Diluted EPS impact of impairment charge related to DC Solar, net of tax 0.03 — Diluted EPS impact of impairment recovery related to DC Solar, net of tax (0.01) — Diluted EPS impact of gain on sale of business, net of tax — (0.15) Diluted EPS impact of reversal of certain previously claimed tax credits related to DC Solar 0.21 — Adjusted diluted EPS $ 4.84 $ 4.66 Average total assets (g) $ 42,484,885 $ 38,542,569 Average stockholders’ equity (h) $ 4,760,845 $ 4,130,822 Return on average assets (e)/(g) 1.59% 1.83% Adjusted return on average assets (f)/(g) 1.67% 1.77% Return on average equity (e)/(h) 14.16% 17.04% Adjusted return on average equity (f)/(h) 14.87% 16.50% (1) Annualized. (2) Included in Amortization of tax credit and other investments. (3) Applied statutory rate of 29.56%. 18

Appendix: GAAP to Non-GAAP Reconciliation (cont’d) EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Adjusted efficiency ratio represents adjusted noninterest expense divided by adjusted revenue. Adjusted pre-tax, pre-provision profitability ratio represents the aggregate of adjusted revenue less adjusted noninterest expense, divided by average total assets. Adjusted revenue represents the aggregate of net interest income and adjusted noninterest income, where adjusted noninterest income excludes the gain on the sale of the DCB branches that were sold in the first quarter of 2018 (where applicable). 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 December 31, 2019 September 30, 2019 December 31, 2018 Net interest income before provision for credit losses (a) $ 368,219 $ 369,807 $ 369,416 Total noninterest income 63,013 51,474 41,695 Total revenue (b) $ 431,232 $ 421,281 $ 411,111 Total noninterest expense (c) $ 193,373 $ 176,630 $ 188,097 Less: Amortization of tax credit and other investments (27,038) (16,833) (30,958) Amortization of core deposit intangibles (1,044) (1,148) (1,265) Adjusted noninterest expense (d) $ 165,291 $ 158,649 $ 155,874 Efficiency ratio (c)/(b) 44.84 % 41.93 % 45.75 % Adjusted efficiency ratio (d)/(b) 38.33 % 37.66 % 37.92 % Adjusted pre-tax, pre-provision income (b)-(d) = (e) $ 265,941 $ 262,632 $ 255,237 Average total assets (f) $ 44,471,242 $ 43,136,273 $ 40,525,188 Adjusted pre-tax, pre-provision profitability ratio (1) (e)/(f) 2.37 % 2.42 % 2.50 % Adjusted noninterest expense (1)/average assets (d)/(f) 1.47 % 1.46 % 1.53 % (1) Annualized. 19

Appendix: GAAP to Non-GAAP Reconciliation (cont’d) EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Management believes that presenting the adjusted average loan yield and adjusted net interest margin that exclude the ASC 310-30 discount accretion impact provides clarity to financial statement users regarding the change in loan contractual yields and allows comparability to prior periods. Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, Yield on Average Loans 2019 2019 2018 2019 2018 Interest income on loans (a) $ 425,773 $ 433,658 $ 414,517 $ 1,717,415 $ 1,503,514 Less: ASC 310-30 discount accretion income (6,053) (2,521) (5,810) (12,471) (20,172) Adjusted interest income on loans (b) $ 419,720 $ 431,137 $ 408,707 $ 1,704,944 $ 1,483,342 Average loans (c) $ 34,410,010 $ 33,661,282 $ 31,534,875 $ 33,373,136 $ 30,230,014 Add: ASC 310-30 discount 16,012 18,172 23,833 18,915 28,400 Adjusted average loans (d) $ 34,426,022 $ 33,679,454 $ 31,558,708 $ 33,392,051 $ 30,258,414 Average loan yield (a)/(c) 4.91 % (1) 5.11 % (1) 5.22 % (1) 5.15 % 4.97 % Adjusted average loan yield (b)/(d) 4.84 % (1) 5.08 % (1) 5.14 % (1) 5.11 % 4.90 % Net Interest Margin Net interest income (e) $ 368,219 $ 369,807 $ 369,416 $ 1,467,813 $ 1,386,508 Less: ASC 310-30 discount accretion income (6,053) (2,521) (5,810) (12,471) (20,172) Adjusted net interest income (f) $ 362,166 $ 367,286 $ 363,606 $ 1,455,342 $ 1,366,336 Average interest-earning assets (g) $ 42,114,123 $ 40,919,386 $ 38,688,647 $ 40,320,804 $ 36,707,142 Add: ASC 310-30 discount 16,012 18,172 23,833 18,915 28,400 Adjusted average interest-earning assets (h) $ 42,130,135 $ 40,937,558 $ 38,712,480 $ 40,339,719 $ 36,735,542 Net interest margin (e)/(g) 3.47 % (1) 3.59 % (1) 3.79 % (1) 3.64 % 3.78 % Adjusted net interest margin (f)/(h) 3.41 % (1) 3.56 % (1) 3.73 % (1) 3.61 % 3.72 % (1) Annualized. 20

Appendix: GAAP to Non-GAAP Reconciliation (cont’d) 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. December 31, 2019 September 30, 2019 December 31, 2018 Stockholders’ equity (a) $ 5,017,617 $ 4,882,664 $ 4,423,974 Less: Goodwill (465,697) (465,697) (465,547) Other intangible assets (1) (16,079) (17,435) (22,365) Tangible equity (b) $ 4,535,841 $ 4,399,532 $ 3,936,062 Total assets (c) $ 44,196,096 $ 43,274,659 $ 41,042,356 Less: Goodwill (465,697) (465,697) (465,547) Other intangible assets (1) (16,079) (17,435) (22,365) Tangible assets (d) $ 43,714,320 $ 42,791,527 $ 40,554,444 Total stockholders’ equity to total assets ratio (a)/(c) 11.35% 11.28% 10.78% Tangible equity to tangible assets ratio (b)/(d) 10.38% 10.28% 9.71% (1) Includes core deposit intangibles and mortgage servicing assets. 21

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) related to DC Solar and the gain on the sale of the DCB branches; 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 Year Ended December 31, September 30, December 31, December 31, December 31, 2019 2019 2018 2019 2018 Net Income $ 188,215 $ 171,416 $ 173,018 $ 674,035 $ 703,701 Add: Amortization of core deposit intangibles 1,044 1,148 1,265 4,518 5,492 Amortization of mortgage servicing assets 567 834 448 2,738 1,814 Tax effect of adjustments (2) (476) (586) (506) (2,145) (2,160) Tangible net income (e) $ 189,350 $ 172,812 $ 174,225 $ 679,146 $ 708,847 Add: Impairment charge related to DC Solar (3) — — — 6,978 — Less: Impairment recovery related to DC Solar (3) (1,583) — — (1,583) — Gain on sale of business — — — — (31,470) Tax effect of adjustment (2) 468 — — (1,595) 9,303 Add: Reversal of certain previously claimed tax credits related to DC Solar — — — 30,104 — Adjusted tangible net income (f) $ 188,235 $ 172,812 $ 174,225 $ 713,050 $ 686,680 Average stockholders’ equity $ 4,977,759 $ 4,838,281 $ 4,335,110 $ 4,760,845 $ 4,130,822 Less: Average goodwill (465,697) (465,697) (465,547) (465,663) (466,346) Average other intangible assets (1) (16,793) (18,391) (23,130) (19,340) (25,337) Average tangible equity (g) $ 4,495,269 $ 4,354,193 $ 3,846,433 $ 4,275,842 $ 3,639,139 Return on average tangible equity (e)/(g) 16.71% (4) 15.75% (4) 17.97% (4) 15.88% 19.48% Adjusted return on average tangible equity (f)/(g) 16.61% (4) 15.75% (4) 17.97% (4) 16.68% 18.87% (1) Includes core deposit intangibles and mortgage servicing assets. (2) Applied statutory rate of 29.56%. (3) Included in Amortization of tax credit and other investments. (4) Annualized. 22

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