East West Bancorp (EWBC) 8-K East West Bancorp Reports Net Income for Third Quarter of 2024

	East West Bancorp, Inc.
	135 N. Los Robles Ave., 7th Fl.
	Pasadena, CA 91101
	Tel. 626.768.6000

NEWS RELEASE

FOR INVESTOR INQUIRIES, CONTACT:
Christopher Del Moral-Niles, CFA	Adrienne Atkinson
Chief Financial Officer	Director of Investor Relations
T: (626) 768-6860	T: (626) 788-7536
E: chris.delmoralniles@eastwestbank.com	E: adrienne.atkinson@eastwestbank.com

EAST WEST BANCORP REPORTS NET INCOME FOR THIRD QUARTER OF 2024

OF $299 MILLION AND DILUTED EARNINGS PER SHARE OF $2.14

Pasadena, California – October 22, 2024 – East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, reported its financial results for the third quarter of 2024.Third quarter 2024 net income was $299 million, or $2.14 per diluted share. Return on average assets was 1.62%, return on average common equity was 16.0%, and return on average tangible common equity1 was 17.1%. Book value per share grew 6% quarter-over-quarter and 19% year-over-year.

“East West reported another strong quarter of balanced growth in support of our customers,” said Dominic Ng, Chairman and Chief Executive Officer. “We continued to grow consumer and business banking deposits while further diversifying our loan portfolio by emphasizing residential and C&I lending,” Ng continued. “Net interest income and fee income both accelerated meaningfully in the quarter, underscoring the strength of our business model.”

“Our disciplined approach to credit and expense management continued to bear fruit this quarter,” continued Ng. “Operating expenses were flat, while credit quality trends remained stable, demonstrating the benefit of our diversified business strategy.”

“We grew shareholder book value and posted a 17.1% return on average tangible common equity1 for the quarter,” said Ng. “We remain focused on continuing to deliver top tier returns for our shareholders in the years ahead.”

FINANCIAL HIGHLIGHTS

	Three Months Ended		Quarter-over-Quarter Change
($ in millions, except per share data)	September 30, 2024	June 30, 2024		$	%
Revenue	$657	$638		$19	3%
Pre-tax, Pre-provision Income2	432	402		30	7
Net Income	299	288		11	4
Diluted Earnings per Share	$2.14	$2.06		$0.08	4
Book Value per Share	$55.30	$52.06		$3.24	6
Tangible Book Value per Share1	$51.90	$48.65		$3.25	7%
Return on Average Common Equity	15.99%	16.36%		-37 bps	—
Return on Average Tangible Common Equity1	17.08%	17.54%		-46 bps	—
Tangible Common Equity Ratio1	9.72%	9.37%		35 bps	—
Total Assets	$74,484	$72,468		$2,016	3%

1 Return on average tangible common equity, tangible book value per share, and tangible common equity ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 13.

2 Pre-tax, pre-provision income is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP financial measures in Table 12.

1

BALANCE SHEET

•Assets – Total assets were $74.5 billion as of September 30, 2024, an increase of $2.0 billion from $72.5 billion as of June 30, 2024. Total cash, resale agreements, and debt securities grew 10% quarter-over-quarter. Year-over-year, total assets grew $6.2 billion, or 9%, from $68.3 billion as of September 30, 2023.

Third quarter 2024 average interest-earning assets of $70.3 billion were up $2.2 billion, or 3%, from $68.1 billion

in the second quarter, reflecting increases of $0.9 billion in average interest-bearing cash and deposits with banks, $0.8 billion in average available-for-sale (“AFS”) debt securities, and $0.5 billion in average total loans outstanding.

•Loans – Total loans were $53.3 billion as of September 30, 2024, an increase of $0.5 billion from $52.8 billionas of June 30, 2024. Year-over-year, total loans were up $2.3 billion, or 5%, from $50.9 billion as of September 30, 2023.

Third quarter 2024 average loans of $52.4 billion grew $0.5 billion, or 1.0%, from the second quarter of 2024. The increase was primarily driven by growth in our residential mortgage and C&I lending portfolios.

•Deposits – Total deposits were $61.7 billion as of September 30, 2024, an increase of $1.7 billion, or 3%, from$60.0 billion as of June 30, 2024, reflecting growth in both consumer and commercial deposits. Noninterest-bearing deposits made up 24% of total deposits as of September 30, 2024. Year-over-year, total deposits increased $6.6 billion from $55.1 billion as of September 30, 2023.

Third quarter 2024 average deposits of $60.6 billion increased $1.9 billion from the second quarter of 2024,with growth in average time, money market, and interest-bearing checking deposits.

•Capital – As of September 30, 2024, stockholders’ equity was $7.7 billion, up 6% quarter-over-quarter.The stockholders’ equity to assets ratio was 10.29% as of September 30, 2024, compared with 9.96% as of June 30, 2024.

Book value per share was $55.30 as of September 30, 2024, up $3.24, or 6% quarter-over-quarter, including $1.56 of per share impact from accumulated other net loss (“AOCI”) improvement. As of September 30, 2024, tangible book value per share3 was $51.90, up $3.25 or 7% quarter-over-quarter, including $1.57 of per share impact from AOCI improvement.

The tangible common equity ratio3 was 9.72%, compared with 9.37% as of June 30, 2024, including a 29 basis point impact from AOCI improvement.

East West’s regulatory capital ratios are well in excess of regulatory requirements for well-capitalized institutions, and well above regional bank averages. The common equity tier 1 (“CET1”) capital ratio increased quarter-over-quarter to 14.08%, and the total risk-based capital ratio increased by 34 basis points to 15.39% as of September 30, 2024.

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

2

OPERATING RESULTS

Third Quarter Earnings – Third quarter 2024 net income was $299 million or $2.14 per diluted share, both up 4% quarter-over-quarter. Pre-tax, pre-provision income4 totaled $432 million in the third quarter, an increase of 7% from $402 million in the second quarter of 2024.

Third Quarter 2024 Compared to Second Quarter 2024

Net Interest Income and Net Interest Margin

Net interest income totaled $573 million in the third quarter, an increase of 4% from $553 million in the second quarter of 2024. Net interest margin (“NIM”) was 3.24%, a three basis point decline from the second quarter.

•The average loan yield was 6.73%, unchanged from the second quarter. The average interest-earning asset yield was 6.09%, down two basis points from the second quarter.

•The average cost of funds was 3.12%, up one basis point from the second quarter. The average cost of interest-bearing deposits was 3.93%, down one basis point from the second quarter.

Noninterest Income

Noninterest income totaled $85 million in the third quarter, unchanged from the second quarter.

•Fee income5 of $81 million wasup nearly $5 million, or 6%, from $77 million in the second quarter.

•Lending fees of $26 million were up $2 million in the third quarter, primarily reflecting greater syndication activity.

•Deposit account fees of $27 million were up $1 million quarter-over-quarter, reflecting greater transaction activity.

•Foreign exchange income increased $1 million in the third quarter, primarily reflecting a favorable change in mark-to-market adjustments on foreign exchange positions.

•Wealth management fees increased $1 million quarter-over-quarter, reflecting higher customer activity.

•Other investment income increased $2 million quarter-over-quarter, reflecting higher income from investments in the third quarter.

•Derivative mark-to-market and credit valuation adjustments on customer and other derivatives was a loss of $4 million in the third quarter, compared with a gain of $2 million in the second quarter.

Noninterest Expense

Total noninterest expense totaled $226 million in the third quarter, which included $6 million in tax credit and Community Reinvestment Act (“CRA”) investment amortization.

•Total operating noninterest expense was $221 million, consistent with the prior quarter.

•Compensation and employee benefits were $135 million, an increase of $2 million, or 1%, primarily reflecting greater salary expense.

•Occupancy and equipment expense was $16 million, an increase of $1 million, or 8%.

•Deposit insurance premiums and regulatory assessments were $9 million, a $2 million decrease reflecting a Federal Deposit Insurance Corporation (“FDIC”) Special Assessment-related expense in the prior quarter.

•Other operating expense was $36 million, a decrease of $2 million, or 4%, primarily reflecting a valuation write-down on other real estate owned in the prior quarter.

•Amortization of tax credit and CRA investments decreased $10 million quarter-over-quarter, reflecting a recovery related to certain tax credit investments.

•The efficiency ratio was 34.4% in the third quarter, compared with 37.0% in the second quarter.

TAX RELATED ITEMS

Third quarter 2024 income tax expense was $90 million, compared with $66 million in the third quarter of 2023, reflecting impacts related to the expanded application of the proportional amortization method (“PAM”) to the tax credit investment portfolio in 2024. The 2024 year-to-date effective tax rate was 22.5%, compared with the 2023 year-to-date effective tax rate of 18.6%.

4 Pre-tax, pre-provision income is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP financial measures in Table 12.

5 Fee income includes deposit account and lending fees, foreign exchange income, wealth management fees, and customer derivative income. Refer to Table 3 for additional fee and noninterest income information.

3

ASSET QUALITY

As of September 30, 2024, the credit quality of our loan portfolio remained strong.

•Nonperforming assets decreased $1 million to $195 million as of September 30, 2024, from $196 million as of June 30, 2024. The nonperforming assets ratio was 0.26% of total assets as of September 30, 2024, an improvement of one basis point compared with 0.27% of total assets as of June 30, 2024.

•The criticized loans ratio increased three basis points quarter-over-quarter to 2.08% of loans held-for-investment (“HFI”) as of September 30, 2024, compared with 2.05% as of June 30, 2024. Criticized loans increased $30 million quarter-over-quarter to $1.1 billion as of September 30, 2024.

•The classified loans ratio decreased two basis points to 1.20% and the special mention loans ratio increased five basis points quarter-over-quarter to 0.88% of loans HFI as of September 30, 2024, compared with 0.83% as of June 30, 2024.

•Third quarter 2024 net charge-offs were $29 million, or annualized 0.22% of average loans HFI, compared with $23 million, or annualized 0.18% of average loans HFI, for the second quarter of 2024.

•The allowance for loan losses increased to $696 million, or 1.31% of loans HFI, as of September 30, 2024, compared with $684 million, or 1.30% of loans HFI, as of June 30, 2024.

•Third quarter 2024 provision for credit losses was $42 million, compared with $37 million in the second quarter of 2024.

CAPITAL STRENGTH

Capital levels for East West remained strong as of September 30, 2024. The following table presents capital metrics as of September 30, 2024, June 30, 2024 and September 30, 2023.

EWBC Capital
($ in millions)	September 30, 2024 (a)	June 30, 2024 (a)	September 30, 2023 (a)
Risk-Weighted Assets (“RWA”) (b)	$54,292	$53,967	$52,944
Risk-based capital ratios:
Total capital ratio	15.39%	15.05%	14.74%
CET1 capital ratio	14.08%	13.74%	13.30%
Tier 1 capital ratio	14.08%	13.74%	13.30%
Leverage ratio	10.40%	10.36%	10.15%
Tangible common equity ratio (c)	9.72%	9.37%	9.03%

(a)The Company has elected to use the 2020 Current Expected Credit Losses (CECL) transition provision in the calculation of its September 30, 2024, June 30, 2024 and September 30, 2023 regulatory capital ratios. The Company’s September 30, 2024 regulatory capital ratios and RWA are preliminary.

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

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

DIVIDEND PAYOUT AND CAPITAL ACTIONS

East West’s Board of Directors has declared fourth quarter 2024 dividends for the Company’s common stock. The common stock cash dividend of $0.55 per share is payable on November 15, 2024 to shareholders of record as of November 4, 2024. In addition, $49 million of East West’s share repurchase authorization remains available.

4

Conference Call

East West will host a conference call to discuss third quarter 2024 earnings with the public on Tuesday, October 22, 2024, at 2:00 p.m. PT/5:00 p.m. ET. The public and investment community are invited to listen as management discusses third quarter 2024 results and operating developments.

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

•A presentation to accompany the earnings call, a listen-only live broadcast of the call, and information to access a replay one hour after the call will all be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.

About East West

East West provides financial services that help customers reach further and connect to new opportunities. East West Bancorp, Inc. is a public company (Nasdaq: “EWBC”) with total assets of $74.5 billion as of September 30, 2024.The Company’s wholly-owned subsidiary, East West Bank, is the largest independent bank headquartered in Southern California, and operates over 110 locations in the United States and Asia.The Bank’s markets in the United States include California, Georgia, Illinois, Massachusetts, Nevada, New York, Texas, and Washington. For more information on East West, visit www.eastwestbank.com.

Forward-Looking Statements

Certain matters set forth herein (including any exhibits hereto) contain “forward-looking statements” that are intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. East West Bancorp, Inc. (referred to herein on an unconsolidated basis as “East West” and on a consolidated basis as the “Company,” “we,” “us,” “our” or “EWBC”) may make forward-looking statements in other documents that it files with, or furnishes to, the United States (“U.S.”) Securities and Exchange Commission (“SEC”) and management may make forward-looking statements to analysts, investors, media members and others. Forward-looking statements are those that do not relate to historical facts and that are based on current assumptions, beliefs, estimates, expectations and projections, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Forward-looking statements may relate to various matters, including the Company’s financial condition, results of operations, plans, objectives, future performance, business or industry, and usually can be identified by the use of forward-looking words, such as “anticipates,” “assumes,” “believes,” “can,” “continues,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “likely,” “may,” “might,” “objective,” “plans,” “potential,” “projects,” “remains,” “should,” “target,” “trend,” “will,” “would,” or similar expressions or variations thereof, and the negative thereof, but these terms are not the exclusive means of identifying such statements. You should not place undue reliance on forward-looking statements, as they are subject to risks and uncertainties.

Factors that might cause future results to differ materially from historical performance and any forward-looking statements include, but are not limited to: changes in local, regional and global business, economic and political conditions and natural or geopolitical events; the soundness of other financial institutions and the impacts related to or resulting from bank failures and other industry volatility, including potential increased regulatory requirements, FDIC insurance premiums and assessments, and deposit withdrawals; changes in laws or the regulatory environment, including trade, monetary and fiscal policies and laws and current or potential disputes between the U.S. and the People’s Republic of China; changes in the commercial and consumer real estate markets; changes in consumer or commercial spending, savings and borrowing habits, and patterns and behaviors; the Company’s ability to compete effectively against financial institutions and other entities, including as a result of emerging technologies; the success and timing of the Company’s business strategies; the Company’s ability to retain key officers and employees; changes in key variable market interest rates, competition, regulatory requirements and product mix; changes in the Company’s costs of operation, compliance and expansion; disruption, failure in, or breach of, the Company’s operational or security systems or infrastructure, or those of third party vendors with which the Company does business, including as a result of cyber-attacks, and the disclosure or misuse of confidential information; the adequacy of the Company’s risk management framework; future credit quality and performance, including expectations regarding future credit losses and allowance levels; adverse changes to the Company’s credit ratings; legal proceedings, regulatory investigations and their resolution; the Company’s capital requirements and its ability to generate capital internally or raise capital on favorable terms; the impact on the Company’s liquidity due to changes in the Company’s ability to receive dividends from its subsidiaries; any strategic acquisitions or divestitures and the introduction of new or expanded products and services or other events that may directly or indirectly result in a negative impact on the financial performance of the Company and its customers.

For a more detailed discussion of some of the factors that might cause such differences, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024 (the “Company’s 2023 Form 10-K”) under the heading Item 1A. Risk Factors. You should treat forward-looking statements as speaking only as of the date they are made and based only on information then actually known to the Company. The Company does not undertake, and specifically disclaims any obligation to update or revise any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

5

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
($ and shares in thousands, except per share data)
(unaudited)
Table 1
											September 30, 2024 % or Basis Point Change
		September 30, 2024			June 30, 2024			September 30, 2023			Qtr-o-Qtr			Yr-o-Yr
Assets
	Cash and cash equivalents, and deposits with banks	$	4,976,174		$	4,390,221		$	4,578,391		13.3	%		8.7	%
	Securities purchased under resale agreements (“resale agreements”)	425,000			485,000			785,000			(12.4)			(45.9)
	Available-for-sale (“AFS”) debt securities (amortized cost of $10,667,293, $9,644,377 and $6,976,331)	10,133,877			8,923,528			6,039,837			13.6			67.8
	Held-to-maturity (“HTM”) debt securities, at amortized cost (fair value of $2,510,352, $2,405,227 and $2,308,048)	2,928,399			2,938,250			2,964,235			(0.3)			(1.2)
	Total cash, resale agreements and debt securities	18,463,450			16,736,999			14,367,463			10.3			28.5
	Loans held-for-sale (“HFS”)	—			18,909			4,762			(100.0)			(100.0)
	Loans held-for-investment (“HFI”) (net of allowance for loan losses of $696,485, $683,794 and $655,523)	52,556,696			52,084,115			50,251,661			0.9			4.6
	Affordable housing partnership, tax credit and Community Reinvestment Act (“CRA”) investments, net	924,439			956,428			901,559			(3.3)			2.5
	Goodwill	465,697			465,697			465,697			—			—
	Operating lease right-of-use assets	82,775			81,941			97,782			1.0			(15.3)
	Other assets	1,990,663			2,124,183			2,200,534			(6.3)			(9.5)
	Total assets	$	74,483,720		$	72,468,272		$	68,289,458		2.8	%		9.1	%
Liabilities and Stockholders’ Equity
	Deposits	$	61,700,115		$	59,999,785		$	55,087,031		2.8	%		12.0	%
	Bank Term Funding Program (“BTFP”) borrowings	—			—			4,500,000			—			(100.0)
	Federal Home Loan Bank (“FHLB”) advances	3,500,000			3,500,000			—			—			100.0
	Long-term debt and finance lease liabilities	36,055			36,141			153,087			(0.2)			(76.4)
	Operating lease liabilities	90,369			89,644			107,695			0.8			(16.1)
	Accrued expenses and other liabilities	1,492,642			1,627,588			1,844,939			(8.3)			(19.1)
	Total liabilities	66,819,181			65,253,158			61,692,752			2.4			8.3
	Stockholders’ equity	7,664,539			7,215,114			6,596,706			6.2			16.2
	Total liabilities and stockholders’ equity	$	74,483,720		$	72,468,272		$	68,289,458		2.8	%		9.1	%
	Total cash, resale agreements and debt securities/total assets	24.79%			23.10%			21.04%			169		bps	375		bps
	Book value per share	$	55.30		$	52.06		$	46.62		6.2	%		18.6	%
	Tangible book value (1) per share	$	51.90		$	48.65		$	43.29		6.7			19.9
	Number of common shares at period-end	138,609			138,604			141,486			0.0	%		(2.0)	%
	Total stockholders’ equity to assets ratio	10.29		%	9.96		%	9.66		%	33		bps	63		bps
	Tangible common equity (“TCE”) ratio (1)	9.72		%	9.37		%	9.03		%	35		bps	69		bps

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

6

EAST WEST BANCORP, INC. AND SUBSIDIARIES
TOTAL LOANS AND DEPOSITS DETAIL
($ in thousands)
(unaudited)
Table 2
								September 30, 2024 % Change
		September 30, 2024		June 30, 2024		September 30, 2023		Qtr-o-Qtr		Yr-o-Yr
Loans:
Commercial:
	Commercial and industrial (“C&I”)	$	17,068,002	$	16,875,009	$	15,864,042	1.1	%	7.6	%
	Commercial real estate (“CRE”):
	CRE	14,568,209		14,562,595		14,667,378		0.0		(0.7)
	Multifamily residential	5,141,481		5,100,210		4,900,097		0.8		4.9
	Construction and land	693,775		664,793		798,190		4.4		(13.1)
	Total CRE	20,403,465		20,327,598		20,365,665		0.4		0.2
Consumer:
	Residential mortgage:
	Single-family residential	13,963,097		13,747,769		12,836,558		1.6		8.8
	Home equity lines of credit (“HELOCs”)	1,760,716		1,761,379		1,776,665		0.0		(0.9)
	Total residential mortgage	15,723,813		15,509,148		14,613,223		1.4		7.6
	Other consumer	57,901		56,154		64,254		3.1		(9.9)
Total loans HFI (1)		53,253,181		52,767,909		50,907,184		0.9		4.6
Loans HFS		—		18,909		4,762		(100.0)		(100.0)
	Total loans (1)	53,253,181		52,786,818		50,911,946		0.9		4.6
Allowance for loan losses		(696,485)		(683,794)		(655,523)		1.9		6.2
	Net loans (1)	$	52,556,696	$	52,103,024	$	50,256,423	0.9	%	4.6	%
Deposits by product:
	Noninterest-bearing demand	$	14,690,864	$	14,922,741	$	16,169,072	(1.6)	%	(9.1)	%
	Interest-bearing checking	8,052,720		7,758,081		7,689,289		3.8		4.7
	Money market	14,021,042		13,775,908		12,613,827		1.8		11.2
	Savings	1,718,378		1,772,368		1,963,766		(3.0)		(12.5)
	Time deposits	23,217,111		21,770,687		16,651,077		6.6		39.4
	Total deposits	$	61,700,115	$	59,999,785	$	55,087,031	2.8	%	12.0	%
Deposits by segment/region:
	Consumer and Business Banking - U.S.	$	32,104,904	$	31,108,589	$	28,504,044	3.2	%	12.6	%
	Commercial Banking - U.S. (2)	23,212,616		23,064,569		21,279,955		0.6		9.1
	Greater China (3)	3,307,793		3,376,971		2,898,211		(2.0)		14.1
	Other - U.S. (Wholesale and brokered) (4)	3,074,802		2,449,656		2,404,821		25.5		27.9
	Total deposits	$	61,700,115	$	59,999,785	$	55,087,031	2.8	%	12.0	%

(1)Includes $52 million, $53 million and $72 million of net deferred loan fees and net unamortized premiums as of September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

(2)Excludes deposits presented under Greater China - overseas branches.

(3)Deposits of our Hong Kong and People’s Republic of China branches, a sub-set of total Commercial Banking segment deposits.

(4)Other segment deposits reflect wholesale, public funds, and brokered deposits, primarily managed by the Company’s Treasury department.

7

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
($ and shares in thousands, except per share data)
(unaudited)
Table 3
		Three Months Ended						September 30, 2024 % Change
		September 30, 2024		June 30, 2024		September 30, 2023		Qtr-o-Qtr	Yr-o-Yr
Interest and dividend income		$	1,075,899	$	1,034,414	$	961,787	4.0%	11.9%
Interest expense		503,177		481,185		390,974		4.6	28.7
Net interest income before provision for credit losses		572,722		553,229		570,813		3.5	0.3
Provision for credit losses		42,000		37,000		42,000		13.5	—
Net interest income after provision for credit losses		530,722		516,229		528,813		2.8%	0.4%
Noninterest income:
	Deposit account fees	26,815		25,649		23,560		4.5%	13.8%
	Lending fees	26,453		24,340		20,312		8.7	30.2
	Foreign exchange income	13,569		12,924		11,396		5.0	19.1
	Wealth management fees	10,683		9,478		5,922		12.7	80.4
	Customer derivative income	3,774		4,230		5,894		(10.8)	(36.0)
	Total fee income	81,294		76,621		67,084		6.1	21.2
	Derivative mark-to-market and credit valuation adjustments	(4,480)		1,534		5,314		NM	NM
	Net gains (losses) on sales of loans	21		56		(12)		(62.5)	NM
	Net gains on AFS debt securities	145		1,785		—		(91.9)	100.0
	Other investment income	2,800		586		1,751		377.8	59.9
	Other income	4,981		4,091		2,615		21.8	90.5
Total noninterest income		84,761		84,673		76,752		0.1%	10.4%
Noninterest expense:
	Compensation and employee benefits	135,464		133,588		123,153		1.4%	10.0%
	Occupancy and equipment expense	16,238		15,031		15,353		8.0	5.8
	Deposit account expense	12,229		12,050		11,585		1.5	5.6
	Computer and software related expenses	11,436		11,392		11,761		0.4	(2.8)
	Deposit insurance premiums and regulatory assessments (1)	9,178		10,708		8,583		(14.3)	6.9
	Other operating expense	36,021		37,613		31,885		(4.2)	13.0
	Total operating noninterest expense	220,566		220,382		202,320		0.1	9.0
	Amortization of tax credit and CRA investments (2)	5,600		16,052		49,694		(65.1)	(88.7)
Total noninterest expense		226,166		236,434		252,014		(4.3)	(10.3)
Income before income taxes		389,317		364,468		353,551		6.8	10.1
Income tax expense		90,151		76,238		65,813		18.2	37.0
Net income		$	299,166	$	288,230	$	287,738	3.8%	4.0%
Earnings per share (“EPS”)
- Basic		$	2.16	$	2.07	$	2.03	4.1%	6.1%
- Diluted		$	2.14	$	2.06	$	2.02	3.9	5.8
Weighted-average number of shares outstanding
- Basic		138,606		138,980		141,485		(0.3)%	(2.0)%
- Diluted		139,648		139,801		142,122		(0.1)	(1.7)

NM - Not meaningful.

(1)Includes $2 million of FDIC special assessment charges for the three months ended June 30, 2024.

(2)Includes $11 million and $3 million in DC Solar recoveries for the three months ended September 30, 2024 and June 30, 2024, respectively.

8

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
($ and shares in thousands, except per share data)
(unaudited)
Table 4
		Nine Months Ended				September 30, 2024 % Change
		September 30, 2024		September 30, 2023		Yr-o-Yr
Interest and dividend income		$	3,133,930	$	2,703,427	15.9%
Interest expense		1,442,840		966,007		49.4
Net interest income before provision for credit losses		1,691,090		1,737,420		(2.7)
Provision for credit losses		104,000		88,000		18.2
Net interest income after provision for credit losses		1,587,090		1,649,420		(3.8)%
Noninterest income:
	Deposit account fees	77,412		69,983		10.6%
	Lending fees	73,718		61,799		19.3
	Foreign exchange income	37,962		34,872		8.9
	Wealth management fees	28,798		19,213		49.9
	Customer derivative income	11,141		16,919		(34.2)
	Total fee income	229,031		202,786		12.9
	Derivative mark-to-market and credit valuation adjustments	(2,333)		4,226		NM
	Net gains (losses) on sales of loans	36		(41)		NM
	Net gains (losses) on AFS debt securities (1)	1,979		(10,000)		NM
	Other investment income	6,201		7,675		(19.2)
	Other income	13,508		10,715		26.1
Total noninterest income		248,422		215,361		15.4%
Noninterest expense
	Compensation and employee benefits	410,864		377,744		8.8%
	Occupancy and equipment expense	46,499		47,028		(1.1)
	Deposit account expense	36,467		31,753		14.8
	Computer and software related expenses	34,172		33,160		3.1
	Deposit insurance premiums and regulatory assessments (2)	39,535		24,755		59.7
	Other operating expense (3)	107,079		102,092		4.9
	Total operating noninterest expense	674,616		616,532		9.4
	Amortization of tax credit and CRA investments (4)	34,859		115,718		(69.9)
Total noninterest expense		709,475		732,250		(3.1)
Income before income taxes		1,126,037		1,132,531		(0.6)
Income tax expense		253,566		210,323		20.6
Net income		$	872,471	$	922,208	(5.4)%
EPS
- Basic		$	6.28	$	6.52	(3.8)%
- Diluted		$	6.23	$	6.49	(4.0)
Weighted-average number of shares outstanding
- Basic		138,997		141,356		(1.7)%
- Diluted		139,939		142,044		(1.5)

NM - Not meaningful.

(1)Includes $10 million impairment write-off of an AFS debt security for the nine months ended September 30, 2023.

(2)Includes $12 million of FDIC special assessment charges for the nine months ended September 30, 2024.

(3)Includes $4 million of repurchase agreements’ extinguishment cost for the nine months ended September 30, 2023.

(4)Includes $14 million and $6 million of DC Solar recoveries for the nine months ended September 30, 2024 and September 30, 2023, respectively.

9

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED AVERAGE BALANCES
($ in thousands)
(unaudited)
Table 5
		Three Months Ended						September 30, 2024 % Change				Nine Months Ended				September 30, 2024 % Change
		September 30, 2024		June 30, 2024		September 30, 2023		Qtr-o-Qtr		Yr-o-Yr		September 30, 2024		September 30, 2023		Yr-o-Yr
Loans:
Commercial:
	C&I	$	16,492,589	$	16,209,659	$	15,400,172	1.7	%	7.1	%	$	16,318,594	$	15,348,662	6.3%
	CRE:
	CRE	14,483,163		14,561,886		14,453,014		(0.5)		0.2		14,589,772		14,174,100		2.9
	Multifamily residential	5,127,659		5,039,249		4,798,360		1.8		6.9		5,066,906		4,695,473		7.9
	Construction and land	661,840		669,681		807,906		(1.2)		(18.1)		662,173		755,651		(12.4)
	Total CRE	20,272,662		20,270,816		20,059,280		0.0		1.1		20,318,851		19,625,224		3.5
Consumer:
	Residential mortgage:
	Single-family residential	13,846,946		13,636,389		12,548,593		1.5		10.3		13,654,170		11,997,671		13.8
	HELOCs	1,754,361		1,750,469		1,816,900		0.2		(3.4)		1,743,413		1,931,105		(9.7)
	Total residential mortgage	15,601,307		15,386,858		14,365,493		1.4		8.6		15,397,583		13,928,776		10.5
	Other consumer	53,958		51,455		63,917		4.9		(15.6)		54,233		67,181		(19.3)
	Total loans (1)	$	52,420,516	$	51,918,788	$	49,888,862	1.0	%	5.1	%	$	52,089,261	$	48,969,843	6.4%
Interest-earning assets		$	70,263,495	$	68,050,050	$	65,051,461	3.3	%	8.0	%	$	68,902,563	$	63,545,257	8.4%
Total assets		$	73,268,158	$	71,189,200	$	68,936,786	2.9	%	6.3	%	$	72,049,714	$	67,196,590	7.2%
Deposits:
	Noninterest-bearing demand	$	14,606,511	$	14,664,789	$	16,302,296	(0.4)	%	(10.4)	%	$	14,741,590	$	17,633,922	(16.4)%
	Interest-bearing checking	7,762,719		7,467,801		8,080,025		3.9		(3.9)		7,642,423		7,675,325		(0.4)
	Money market	14,201,258		13,724,230		12,180,806		3.5		16.6		13,855,167		11,295,157		22.7
	Savings	1,744,644		1,795,242		2,013,246		(2.8)		(13.3)		1,783,011		2,215,102		(19.5)
	Time deposits	22,270,124		21,028,737		16,621,683		5.9		34.0		20,886,769		15,993,669		30.6
	Total deposits	$	60,585,256	$	58,680,799	$	55,198,056	3.2	%	9.8	%	$	58,908,960	$	54,813,175	7.5%

(1)Includes loans HFS.

10

EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 6
		Three Months Ended
		September 30, 2024						June 30, 2024
		Average Balance		Interest		Average Yield/Rate (1)		Average Balance		Interest		Average Yield/Rate (1)
Assets
Interest-earning assets:
	Interest-bearing cash and deposits with banks	$	4,987,191	$	60,060	4.79	%	$	4,058,515	$	49,406	4.90	%
	Resale agreements	443,261		1,663		1.49	%	485,000		1,885		1.56	%
	Debt securities:
	AFS debt securities	9,316,232		111,552		4.76	%	8,481,948		99,242		4.71	%
	HTM debt securities	2,931,033		12,431		1.69	%	2,941,150		12,490		1.71	%
	Total debt securities	12,247,265		123,983		4.03	%	11,423,098		111,732		3.93	%
	Loans:
	C&I	16,492,589		328,619		7.93	%	16,209,659		322,648		8.01	%
	CRE	20,272,662		328,254		6.44	%	20,270,816		323,106		6.41	%
	Residential mortgage	15,601,307		229,727		5.86	%	15,386,858		221,966		5.80	%
	Other consumer	53,958		753		5.55	%	51,455		721		5.64	%
	Total loans (2)	52,420,516		887,353		6.73	%	51,918,788		868,441		6.73	%
	FHLB and FRB stock	165,262		2,840		6.84	%	164,649		2,950		7.21	%
	Total interest-earning assets	$	70,263,495	$	1,075,899	6.09	%	$	68,050,050	$	1,034,414	6.11	%
Noninterest-earning assets:
	Cash and due from banks	341,856						468,374
	Allowance for loan losses	(691,399)						(675,346)
	Other assets	3,354,206						3,346,122
	Total assets	$	73,268,158					$	71,189,200
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
	Checking deposits	$	7,762,719	$	58,226	2.98	%	$	7,467,801	$	52,680	2.84	%
	Money market deposits	14,201,258		136,384		3.82	%	13,724,230		135,405		3.97	%
	Savings deposits	1,744,644		4,811		1.10	%	1,795,242		5,004		1.12	%
	Time deposits	22,270,124		254,650		4.55	%	21,028,737		238,393		4.56	%
	Total interest-bearing deposits	45,978,745		454,071		3.93	%	44,016,010		431,482		3.94	%
	BTFP, short-term borrowings and federal funds purchased	1,170		16		5.44	%	2,889		32		4.45	%
	Assets sold under repurchase agreements (“repurchase agreements”)	3,455		49		5.64	%	4,104		58		5.68	%
	FHLB advances	3,440,219		48,261		5.58	%	3,500,001		48,840		5.61	%
	Long-term debt and finance lease liabilities	36,084		780		8.60	%	36,335		773		8.56	%
	Total interest-bearing liabilities	$	49,459,673	$	503,177	4.05	%	$	47,559,339	$	481,185	4.07	%
Noninterest-bearing liabilities and stockholders’ equity:
	Demand deposits	14,606,511						14,664,789
	Accrued expenses and other liabilities	1,758,641						1,877,572
	Stockholders’ equity	7,443,333						7,087,500
	Total liabilities and stockholders’ equity	$	73,268,158					$	71,189,200
	Total deposits	$	60,585,256	$	454,071	2.98	%	$	58,680,799	$	431,482	2.96	%
Interest rate spread						2.04	%					2.04	%
Net interest income and net interest margin				$	572,722	3.24	%			$	553,229	3.27	%

(1)Annualized.

(2)Includes loans HFS.

11

EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 7
		Three Months Ended
		September 30, 2024						September 30, 2023
		Average Balance		Interest		Average Yield/Rate (1)		Average Balance		Interest		Average Yield/Rate (1)
Assets
Interest-earning assets:
	Interest-bearing cash and deposits with banks	$	4,987,191	$	60,060	4.79	%	$	5,392,795	$	67,751	4.98	%
	Resale agreements	443,261		1,663		1.49	%	648,587		4,460		2.73	%
	Debt securities:
	AFS debt securities	9,316,232		111,552		4.76	%	6,074,119		57,177		3.73	%
	HTM debt securities	2,931,033		12,431		1.69	%	2,967,703		12,601		1.68	%
	Total debt securities	12,247,265		123,983		4.03	%	9,041,822		69,778		3.06	%
	Loans:
	C&I	16,492,589		328,619		7.93	%	15,400,172		306,542		7.90	%
	CRE	20,272,662		328,254		6.44	%	20,059,280		317,416		6.28	%
	Residential mortgage	15,601,307		229,727		5.86	%	14,365,493		193,913		5.36	%
	Other consumer	53,958		753		5.55	%	63,917		848		5.26	%
	Total loans (2)	52,420,516		887,353		6.73	%	49,888,862		818,719		6.51	%
	FHLB and FRB stock	165,262		2,840		6.84	%	79,395		1,079		5.39	%
	Total interest-earning assets	$	70,263,495	$	1,075,899	6.09	%	$	65,051,461	$	961,787	5.87	%
Noninterest-earning assets:
	Cash and due from banks	341,856						544,939
	Allowance for loan losses	(691,399)						(629,229)
	Other assets	3,354,206						3,969,615
	Total assets	$	73,268,158					$	68,936,786
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
	Checking deposits	$	7,762,719	$	58,226	2.98	%	$	8,080,025	$	54,285	2.67	%
	Money market deposits	14,201,258		136,384		3.82	%	12,180,806		113,217		3.69	%
	Savings deposits	1,744,644		4,811		1.10	%	2,013,246		4,047		0.80	%
	Time deposits	22,270,124		254,650		4.55	%	16,621,683		166,747		3.98	%
	Total interest-bearing deposits	45,978,745		454,071		3.93	%	38,895,760		338,296		3.45	%
	BTFP, short-term borrowings and federal funds purchased	1,170		16		5.44	%	4,501,327		49,575		4.37	%
	Repurchase agreements	3,455		49		5.64	%	13,897		193		5.51	%
	FHLB advances	3,440,219		48,261		5.58	%	1		—		0.00	%
	Long-term debt and finance lease liabilities	36,084		780		8.60	%	152,962		2,910		7.55	%
	Total interest-bearing liabilities	$	49,459,673	$	503,177	4.05	%	$	43,563,947	$	390,974	3.56	%
Noninterest-bearing liabilities and stockholders’ equity:
	Demand deposits	14,606,511						16,302,296
	Accrued expenses and other liabilities	1,758,641						2,465,745
	Stockholders’ equity	7,443,333						6,604,798
	Total liabilities and stockholders’ equity	$	73,268,158					$	68,936,786
	Total deposits	$	60,585,256	$	454,071	2.98	%	$	55,198,056	$	338,296	2.43	%
Interest rate spread						2.04	%					2.31	%
Net interest income and net interest margin				$	572,722	3.24	%			$	570,813	3.48	%

(1)Annualized.

(2)Includes loans HFS.

12

EAST WEST BANCORP, INC. AND SUBSIDIARIES
YEAR-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 8
		Nine Months Ended
		September 30, 2024						September 30, 2023
		Average Balance		Interest		Average Yield/Rate (1)		Average Balance		Interest		Average Yield/Rate (1)
Assets
Interest-earning assets:
	Interest-bearing cash and deposits with banks	$	5,054,542	$	183,848	4.86	%	$	4,703,843	$	164,393	4.67	%
	Assets purchased under resale agreements (2)	550,913		9,663		2.34	%	659,621		12,932		2.62	%
	Debt securities:
	AFS debt securities	8,125,876		273,652		4.50	%	6,146,653		166,666		3.63	%
	HTM debt securities	2,940,920		37,455		1.70	%	2,982,284		38,013		1.70	%
	Total debt securities	11,066,796		311,107		3.76	%	9,128,937		204,679		3.00	%
	Loans:
	C&I	16,318,594		977,077		8.00	%	15,348,662		869,914		7.58	%
	CRE	20,318,851		975,447		6.41	%	19,625,224		900,601		6.14	%
	Residential mortgage	15,397,583		667,367		5.79	%	13,928,776		545,442		5.24	%
	Other consumer	54,233		2,292		5.65	%	67,181		2,412		4.80	%
	Total loans (3)	52,089,261		2,622,183		6.72	%	48,969,843		2,318,369		6.33	%
	FHLB and FRB stock	141,051		7,129		6.75	%	83,013		3,054		4.92	%
	Total interest-earning assets	$	68,902,563	$	3,133,930	6.08	%	$	63,545,257	$	2,703,427	5.69	%
Noninterest-earning assets:
	Cash and due from banks	332,983						578,144
	Allowance for loan losses	(681,988)						(617,381)
	Other assets	3,496,156						3,690,570
	Total assets	$	72,049,714					$	67,196,590
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
	Checking deposits	$	7,642,423	$	164,727	2.88	%	$	7,675,325	$	127,030	2.21	%
	Money market deposits	13,855,167		406,450		3.92	%	11,295,157		275,738		3.26	%
	Savings deposits	1,783,011		13,935		1.04	%	2,215,102		11,679		0.70	%
	Time deposits	20,886,769		706,640		4.52	%	15,993,669		428,120		3.58	%
	Total interest-bearing deposits	44,167,370		1,291,752		3.91	%	37,179,253		842,567		3.03	%
	BTFP, short-term borrowings and federal funds purchased	1,284,826		42,154		4.38	%	3,284,663		107,432		4.37	%
	FHLB advances	2,501,826		104,840		5.60	%	164,836		6,430		5.22	%
	Repurchase agreements	3,370		142		5.63	%	45,080		1,456		4.32	%
	Long-term debt and finance lease liabilities	65,969		3,952		8.00	%	152,716		8,122		7.11	%
	Total interest-bearing liabilities	$	48,023,361	$	1,442,840	4.01	%	$	40,826,548	$	966,007	3.16	%
Noninterest-bearing liabilities and stockholders’ equity:
	Demand deposits	14,741,590						17,633,922
	Accrued expenses and other liabilities	2,109,318						2,324,870
	Stockholders’ equity	7,175,445						6,411,250
	Total liabilities and stockholders’ equity	$	72,049,714					$	67,196,590
	Total deposits	$	58,908,960	$	1,291,752	2.93	%	$	54,813,175	$	842,567	2.06	%
Interest rate spread						2.07	%					2.53	%
Net interest income and net interest margin				$	1,691,090	3.28	%			$	1,737,420	3.66	%

(1)Annualized.

(2)Includes the average balances and interest income for securities and loans purchased under resale agreements for the nine months ended September 30, 2023.

(3)Includes loans HFS.

13

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED RATIOS
(unaudited)
Table 9
		Three Months Ended (1)							September 30, 2024 Basis Point Change
		September 30, 2024		June 30, 2024		September 30, 2023			Qtr-o-Qtr		Yr-o-Yr
	Return on average assets	1.62	%	1.63	%	1.66	%		(1)	bps	(4)	bps
	Return on average common equity	15.99	%	16.36	%	17.28	%		(37)		(129)
	Return on average TCE (2)	17.08	%	17.54	%	18.65	%		(46)		(157)
	Interest rate spread	2.04	%	2.04	%	2.31	%		—		(27)
	Net interest margin	3.24	%	3.27	%	3.48	%		(3)		(24)
	Average loan yield	6.73	%	6.73	%	6.51	%		—		22
	Yield on average interest-earning assets	6.09	%	6.11	%	5.87	%		(2)		22
	Average cost of interest-bearing deposits	3.93	%	3.94	%	3.45	%		(1)		48
	Average cost of deposits	2.98	%	2.96	%	2.43	%		2		55
	Average cost of funds	3.12	%	3.11	%	2.59	%		1		53
	Operating noninterest expense/average assets	1.20	%	1.25	%	1.16	%		(5)		4
	Efficiency ratio	34.38	%	37.02	%	38.89	%		(264)		(451)
	Effective tax rate	23.16	%	20.92	%	18.61	%		224		455
		Nine Months Ended (1)				September 30, 2024 Basis Point Change
		September 30, 2024		September 30, 2023		Yr-o-Yr
	Return on average assets	1.62	%	1.83	%	(21)		bps
	Return on average common equity	16.24	%	19.23	%	(299)
	Return on average TCE (2)	17.40	%	20.80	%	(340)
	Interest rate spread	2.07	%	2.53	%	(46)
	Net interest margin	3.28	%	3.66	%	(38)
	Average loan yield	6.72	%	6.33	%	39
	Yield on average interest-earning assets	6.08	%	5.69	%	39
	Average cost of interest-bearing deposits	3.91	%	3.03	%	88
	Average cost of deposits	2.93	%	2.06	%	87
	Average cost of funds	3.07	%	2.21	%	86
	Operating noninterest expense/average assets	1.25	%	1.23	%	2
	Efficiency ratio	36.51	%	37.47	%	(96)
	Effective tax rate	22.52	%	18.57	%	395
									September 30, 2024 Basis Point Change
		September 30, 2024		June 30, 2024		September 30, 2023			Qtr-o-Qtr		Yr-o-Yr
	Loan-to-deposit ratio	86.31	%	87.98	%	92.42	%		(167)		(611)

(1)Annualized except for efficiency ratio and effective tax rate.

(2)Return on average TCE is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP measures in Table 13.

14

EAST WEST BANCORP, INC. AND SUBSIDIARIES
ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE SHEET CREDIT EXPOSURES
($ in thousands)
(unaudited)
Table 10
		Three Months Ended September 30, 2024
		Commercial								Consumer
				CRE							Residential Mortgage
($ in thousands)		C&I		CRE		Multifamily Residential		Construction and Land			Single-Family Residential		HELOCs		Other Consumer		Total
Allowance for loan losses, June 30, 2024		$	379,984	$	194,794	$	40,254	$	14,322		$	49,523	$	3,340	$	1,577	$	683,794
Provision for (reversal of) credit losses on loans	(a)	26,416		27,123		(8,493)		(1,975)			(1,293)		(128)		67		41,717
Gross charge-offs		(29,260)		(734)		—		(145)			—		(10)		(149)		(30,298)
Gross recoveries		838		61		21		6			1		8		—		935
Total net (charge-offs) recoveries		(28,422)		(673)		21		(139)			1		(2)		(149)		(29,363)
Foreign currency translation adjustment		337		—		—		—			—		—		—		337
Allowance for loan losses, September 30, 2024		$	378,315	$	221,244	$	31,782	$	12,208		$	48,231	$	3,210	$	1,495	$	696,485

		Three Months Ended June 30, 2024
		Commercial								Consumer
				CRE							Residential Mortgage
($ in thousands)		C&I		CRE		Multifamily Residential		Construction and Land			Single-Family Residential		HELOCs		Other Consumer		Total
Allowance for loan losses, March 31, 2024		$	373,631	$	187,460	$	37,418	$	10,819		$	55,922	$	3,563	$	1,467	$	670,280
Provision for (reversal of) credit losses on loans	(a)	17,783		18,287		2,628		4,422			(6,366)		(232)		240		36,762
Gross charge-offs		(13,134)		(11,103)		—		(920)			(35)		—		(130)		(25,322)
Gross recoveries		1,817		150		208		1			2		9		—		2,187
Total net (charge-offs) recoveries		(11,317)		(10,953)		208		(919)			(33)		9		(130)		(23,135)
Foreign currency translation adjustment		(113)		—		—		—			—		—		—		(113)
Allowance for loan losses, June 30, 2024		$	379,984	$	194,794	$	40,254	$	14,322		$	49,523	$	3,340	$	1,577	$	683,794

		Three Months Ended September 30, 2023
		Commercial								Consumer
				CRE							Residential Mortgage
($ in thousands)		C&I		CRE		Multifamily Residential		Construction and Land			Single-Family Residential		HELOCs		Other Consumer		Total
Allowance for loan losses, June 30, 2023		$	375,333	$	168,505	$	22,938	$	11,325		$	51,513	$	4,526	$	1,260	$	635,400
Provision for (reversal of) credit losses on loans	(a)	13,006		12,952		772		8,302			3,353		(705)		456		38,136
Gross charge-offs		(7,074)		(3,466)		—		(10,413)			—		(41)		(13)		(21,007)
Gross recoveries		2,279		49		452		2			64		15		—		2,861
Total net (charge-offs) recoveries		(4,795)		(3,417)		452		(10,411)			64		(26)		(13)		(18,146)
Foreign currency translation adjustment		133		—		—		—			—		—		—		133
Allowance for loan losses, September 30, 2023		$	383,677	$	178,040	$	24,162	$	9,216		$	54,930	$	3,795	$	1,703	$	655,523

15

EAST WEST BANCORP, INC. AND SUBSIDIARIES
ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE-SHEET CREDIT EXPOSURES
($ in thousands)
(unaudited)
Table 10 (continued)
		Nine Months Ended September 30, 2024
		Commercial								Consumer
				CRE							Residential Mortgage
($ in thousands)		C&I		CRE		Multifamily Residential		Construction and Land			Single-Family Residential		HELOCs		Other Consumer		Total
Allowance for loan losses, January 1, 2024		$	392,685	$	170,592	$	34,375	$	10,469		$	55,018	$	3,947	$	1,657	$	668,743
Provision for (reversal of) credit losses on loans	(a)	44,473		64,542		(2,833)		3,828			(6,760)		(792)		175		102,633
Gross charge-offs		(63,392)		(14,235)		(6)		(2,289)			(35)		(10)		(337)		(80,304)
Gross recoveries		4,365		345		246		200			8		65		—		5,229
Total net (charge-offs) recoveries		(59,027)		(13,890)		240		(2,089)			(27)		55		(337)		(75,075)
Foreign currency translation adjustment		184		—		—		—			—		—		—		184
Allowance for loan losses, September 30, 2024		$	378,315	$	221,244	$	31,782	$	12,208		$	48,231	$	3,210	$	1,495	$	696,485

		Nine Months Ended September 30, 2023
		Commercial								Consumer
				CRE							Residential Mortgage
($ in thousands)		C&I		CRE		Multifamily Residential		Construction and Land			Single-Family Residential		HELOCs		Other Consumer		Total
Allowance for loan losses, December 31, 2022		$	371,700	$	149,864	$	23,373	$	9,109		$	35,564	$	4,475	$	1,560	$	595,645
Impact of ASU 2022-02 adoption		5,683		337		6		—			1		1		—		6,028
Allowance for loan losses, January 1, 2023		$	377,383	150,201		23,379		9,109			35,565		4,476		$	1,560	$	601,673
Provision for (reversal of) credit losses on loans	(a)	17,587		33,313		303		10,507			19,296		(569)		244		80,681
Gross charge-offs		(16,309)		(5,838)		—		(10,413)			—		(138)		(101)		(32,799)
Gross recoveries		5,555		364		480		13			69		26		—		6,507
Total net (charge-offs) recoveries		(10,754)		(5,474)		480		(10,400)			69		(112)		(101)		(26,292)
Foreign currency translation adjustment		(539)		—		—		—			—		—		—		(539)
Allowance for loan losses, September 30, 2023		$	383,677	$	178,040	$	24,162	$	9,216		$	54,930	$	3,795	$	1,703	$	655,523

		Three Months Ended						Nine Months Ended
($ in thousands)		September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Unfunded Credit Facilities
Allowance for unfunded credit commitments, beginning of period (1)		$	38,783	$	38,544	$	29,728	$	37,698	$	26,264
Provision for credit losses on unfunded credit commitments	(b)	283		238		3,864		1,367		7,319
Foreign currency translation adjustment		(4)		1		(3)		(3)		6
Allowance for unfunded credit commitments, end of period (1)		$	39,062	$	38,783	$	33,589	$	39,062	$	33,589
Provision for credit losses	(a)+(b)	$	42,000	$	37,000	$	42,000	$	104,000	$	88,000

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

16

	EAST WEST BANCORP, INC. AND SUBSIDIARIES
	CRITICIZED LOANS, NONPERFORMING ASSETS, CREDIT QUALITY RATIOS AND
	COMPOSITION OF ALLOWANCE BY PORTFOLIO
	($ in thousands)
	(unaudited)
Table 11
Criticized Loans		September 30, 2024		June 30, 2024		September 30, 2023
Special mention loans		$	468,593	$	435,679	$	483,428
Classified loans		641,642		644,564		538,258
Total criticized loans (1)		$	1,110,235	$	1,080,243	$	1,021,686

(1)Excludes loans HFS.

Nonperforming Assets		September 30, 2024			June 30, 2024			September 30, 2023
Nonaccrual loans:
Commercial:
	C&I	$	75,272		$	66,960		$	49,147
	Total CRE	19,175			47,203			16,431
Consumer:
	Total residential mortgage	52,311			51,514			37,986
	Other consumer	102			205			136
	Total nonaccrual loans	146,860			165,882			103,700
Other real estate owned, net		41,248			30,400			—
Other nonperforming assets		7,358			—			—
	Total nonperforming assets	$	195,466		$	196,282		$	103,700
Credit Quality Ratios		September 30, 2024			June 30, 2024			September 30, 2023
Annualized quarterly net charge-offs to average loans HFI		0.22		%	0.18		%	0.14		%
Annualized YTD net charge-offs to YTD average loans HFI		0.19		%	0.18		%	0.07		%
Special mention loans to loans HFI		0.88		%	0.83		%	0.95		%
Classified loans to loans HFI		1.20		%	1.22		%	1.06		%
Criticized loans to loans HFI		2.08		%	2.05		%	2.01		%
Nonperforming assets to total assets		0.26		%	0.27		%	0.15		%
Nonaccrual loans to loans HFI		0.28		%	0.31		%	0.20		%
Allowance for loan losses to loans HFI		1.31		%	1.30		%	1.29		%

Composition of Allowance (“ALLL”) by Portfolio		September 30, 2024				June 30, 2024				September 30, 2023
Loan Category		ALLL		ALLL/ Loans HFI		ALLL		ALLL/ Loans HFI		ALLL		ALLL/ Loans HFI
	C&I	$	378,315	2.22	%	$	379,984	2.25	%	$	383,677	2.42	%
	Total CRE	265,234		1.30		249,370		1.23		211,418		1.04
	Multifamily	31,782		0.62		40,254		0.79		24,162		0.49
	Office	66,614		3.11		67,772		3.10		52,596		2.30
	All other CRE	166,838		1.27		141,344		1.08		134,660		1.02
	Residential mortgage & consumer	52,936		0.34		54,440		0.35		60,428		0.41
Total loans		$	696,485	1.31	%	$	683,794	1.30	%	$	655,523	1.29	%

17

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
($ in thousands)
(unaudited)
Table 12
		Three Months Ended									Nine Months Ended
		September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Net interest income before provision for credit losses	(a)	$	572,722		$	553,229		$	570,813		$	1,691,090		$	1,737,420
Fully taxable equivalent (“FTE”) adjustment	(b)	411			751			433			3,491			1,288
FTE net interest income before provision for credit losses	(c)=(a)+(b)	573,133			553,980			571,246			1,694,581			1,738,708
Total noninterest income	(d)	84,761			84,673			76,752			248,422			215,361
Total revenue	(e)=(a)+(d)	657,483			637,902			647,565			1,939,512			1,952,781
Total revenue (FTE)	(f)=(c)+(d)	$	657,894		$	638,653		$	647,998		$	1,943,003		$	1,954,069
Total noninterest expense	(g)	$	226,166		$	236,434		$	252,014		$	709,475		$	732,250
Efficiency ratio	(g)/(f)	34.38		%	37.02		%	38.89		%	36.51		%	37.47		%
Pre-tax, pre-provision income	(f)-(g)	$	431,728		$	402,219		$	395,984		$	1,233,528		$	1,221,819

The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. During the third and second quarters of 2024, the Company recorded $11 million and $3 million, respectively, in pre-tax DC solar recoveries (included in Amortization of Tax Credit and CRA Investments on the Condensed Consolidated Statement of Income) related to the Company’s investment in DC Solar. The Company recorded $4 million and $2 million in pre-tax DC solar recoveries in the first and second quarters of 2023. During the second and first quarters of 2024, the Company recorded $2 million and $10 million, respectively, in pre-tax FDIC special assessment charges (included in Deposit insurance premiums and regulatory assessments on the Condensed Consolidated Statement of Income). During the first quarter of 2023, the Company recorded a $10 million pre-tax impairment write-off of an AFS debt security (included in Net gains on AFS debt securities on the Condensed Consolidated Statement of Income) and $4 million in pre-tax repurchase agreements’ extinguishment cost (included in Other operating expenses on the Condensed Consolidated Statement of Income). Adjusted net income represents net income adjusted for the tax-effected above-mentioned adjustments. Adjusted diluted EPS represents diluted EPS adjusted for the above tax-effected adjustments. 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						Nine Months Ended
	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Net income	$	299,166	$	288,230	$	287,738	$	872,471	$	922,208
Add: FDIC special assessment charge	—		1,880		—		12,185		—
Add: Write-off of AFS debt security	—		—		—		—		10,000
Less: DC Solar recovery	(11,201)		(3,146)		—		(14,347)		(5,571)
Add: Repurchase agreements’ extinguishment cost	—		—		—		—		3,872
Tax effect of adjustments (1)	3,311		374		—		639		(2,431)
Adjusted net income	$	291,276	$	287,338	$	287,738	$	870,948	$	928,078
Diluted weighted-average number of shares outstanding	139,648		139,801		142,122		139,939		142,044
Diluted EPS	$	2.14	$	2.06	$	2.02	$	6.23	$	6.49
Add: FDIC special assessment charge	—		0.02		—		0.09		—
Add: Write-off of AFS debt security	—		—		—		—		0.07
Less: DC Solar recovery	(0.08)		(0.02)		—		(0.10)		(0.04)
Add: Repurchase agreements’ extinguishment cost	—		—		—		—		0.03
Tax effect of adjustments (1)	0.03		—		—		—		(0.02)
Adjusted diluted EPS	$	2.09	$	2.06	$	2.02	$	6.22	$	6.53

(1)Applied statutory tax rate of 29.56% for the three and nine months ended September 30, 2024, and the three months ended June 30, 2024. Applied statutory tax rate of 29.29% for the three and nine months ended September 30, 2023.

18

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
($ in thousands)
(unaudited)
Table 13
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible book value, tangible book value per share and TCE ratio are non-GAAP financial measures. Tangible book value and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and are used by banking regulators and analysts, the Company has included them below for discussion.
		September 30, 2024			June 30, 2024			September 30, 2023
Common Stock		$	170		$	170		$	169
Additional paid-in capital		2,018,105			2,007,388			1,969,239
Retained earnings		7,095,587			6,873,653			6,294,751
Treasury stock		(1,012,019)			(1,011,924)			(792,076)
Accumulated other comprehensive income:
AFS debt securities net unrealized losses		(456,493)			(591,286)			(751,357)
Cash flow hedges net unrealized gains (losses)		39,143			(44,059)			(102,139)
Foreign currency translation adjustments		(19,954)			(18,828)			(21,881)
Total accumulated other comprehensive loss		(437,304)			(654,173)			(875,377)
Stockholders’ equity	(a)	$	7,664,539		$	7,215,114		$	6,596,706
Less: Goodwill		(465,697)			(465,697)			(465,697)
Other intangible assets (1)		(5,563)			(5,903)			(5,649)
Tangible book value	(b)	$	7,193,279		$	6,743,514		$	6,125,360
Number of common shares at period-end	(c)	138,609			138,604			141,486
Book value per share	(a)/(c)	$	55.30		$	52.06		$	46.62
Tangible book value per share	(b)/(c)	$	51.90		$	48.65		$	43.29
Total assets	(d)	$	74,483,720		$	72,468,272		$	68,289,458
Less: Goodwill		(465,697)			(465,697)			(465,697)
Other intangible assets (1)		(5,563)			(5,903)			(5,649)
Tangible assets	(e)	$	74,012,460		$	71,996,672		$	67,818,112
Total stockholders’ equity to assets ratio	(a)/(d)	10.29		%	9.96		%	9.66		%
TCE ratio	(b)/(e)	9.72		%	9.37		%	9.03		%

Return on average TCE represents tangible net income divided by average tangible book value. Tangible net income excludes the after-tax impacts of the amortization of core deposit intangibles and mortgage servicing assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and are used by banking regulators and analysts, the Company has included them below for discussion.
		Three Months Ended									Nine Months Ended
		September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Net income	(f)	$	299,166		$	288,230		$	287,738		$	872,471		$	922,208
Add: Amortization of core deposit intangibles		—			—			441			—			1,322
Amortization of mortgage servicing assets		348			332			328			988			1,026
Tax effect of amortization adjustments (2)		(103)			(98)			(225)			(292)			(688)
Tangible net income	(g)	$	299,411		$	288,464		$	288,282		$	873,167		$	923,868
Average stockholders’ equity	(h)	$	7,443,333		$	7,087,500		$	6,604,798		$	7,175,445		$	6,411,250
Less: Average goodwill		(465,697)			(465,697)			(465,697)			(465,697)			(465,697)
Average other intangible assets (1)		(5,790)			(6,110)			(6,148)			(6,123)			(6,916)
Average tangible book value	(i)	$	6,971,846		$	6,615,693		$	6,132,953		$	6,703,625		$	5,938,637
Return on average common equity (3)	(f)/(h)	15.99		%	16.36		%	17.28		%	16.24		%	19.23		%
Return on average TCE (3)	(g)/(i)	17.08		%	17.54		%	18.65		%	17.40		%	20.80		%

(1)Includes core deposit intangibles and mortgage servicing assets. There were no core deposit intangibles in the 2024 periods presented.

(2)Applied statutory tax rate of 29.56% for the three and nine months ended September 30, 2024, and the three months ended June 30, 2024. Applied statutory tax rate of 29.29% for the three and nine months ended September 30, 2023.

(3)Annualized.

19