EX-99.1 2 ewbc9918k12312024.htm EX-99.1

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

NEWS RELEASE

EAST WEST BANCORP REPORTS RECORD NET INCOME FOR FULL YEAR 2024

OF $1.2 BILLION AND DILUTED EARNINGS PER SHARE OF $8.33; INCREASES DIVIDEND AND REPURCHASE AUTHORIZATION

Pasadena, California – January 23, 2025 – East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, reported its financial results for the full year and fourth quarter of 2024. Full year 2024 net income was $1.2 billion, or $8.33 per diluted share. Fourth quarter 2024 net income was $293 million, or $2.10 per diluted share. Full-year returns on average assets were 1.60%, returns on average common equity were 15.9%, and book value per share grew 12% year-over-year.

“Looking back on 2024, East West marked another year of record revenue, net income and EPS, generating a 17% return on average tangible common equity1 for shareholders,” said Dominic Ng, Chairman and Chief Executive Officer. “We grew deposits by over $7 billion, reflecting the strength of our customer relationships. Fee income grew 12% year-over-year to a new record level, with notable strength in wealth management, lending, and deposit account fees,” said Ng.

“East West’s mission has always been to support the communities we serve. Our sympathy goes out to everyone affected by the devastating wildfires in Southern California, and our deep thanks goes out to the firefighters, public service workers, and volunteers on the front lines,” stated Ng. “During this unprecedented time, I am proud of the actions East West is taking to support our customers, our community, and our associates. I would like to extend special gratitude to East West’s associates for their continued dedication to our clients.”

“Given our strong capital base and industry-leading profitability, we are pleased to announce an incremental $300 million of share repurchase authorization. As we start a new year, we are also pleased to announce a 9% increase in our common stock dividend,” concluded Ng.

FINANCIAL HIGHLIGHTS

									Year Ended																								Year-over-Year Change
			($ in millions, except per share data)						December 31, 2024						December 31, 2023																														$						%
			Total Revenue (FTE)						$2,619						$2,609																														$10						0		%
			Pre-tax, Pre-provision Income2						1,661						1,586																														75						5
			Net Income						1,166						1,161																														5						0
			Diluted Earnings per Share						$8.33						$8.18																														$0.15						2
			Book Value per Share						$55.79						$49.64																														$6.15						12
			Tangible Book Value per Share1						$52.39						$46.27																														$6.12						13		%
			Return on Average Common Equity						15.93%						17.91%																														—						-198 bps
			Return on Average Tangible Common Equity1						17.05%						19.35%																														—						-230 bps
			Total Stockholders’ Equity to Assets Ratio						10.17%						9.98%																														—						19 bps
			Tangible Common Equity Ratio1						9.60%						9.37%																														—						23 bps
			Total Assets						$75,976						$69,613																														$6,363						9		%

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.

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BALANCE SHEET

•Assets – Total assets were $76.0 billion as of December 31, 2024, an increase of $1.5 billion from $74.5 billion as of September 30, 2024. Total cash, resale agreements, and debt securities grew 6% quarter-over-quarter. Year-over-year, total assets grew $6.4 billion, or 9%, from $69.6 billion as of December 31, 2023.

Fourth quarter 2024 average interest-earning assets of $72.2 billion were up $1.9 billion, or 3%, from $70.3 billion in the third quarter, primarily reflecting increases of $1.5 billion in average available-for-sale (“AFS”) debt securities and $0.8 billion in average total loans outstanding, partly offset by a $0.4 billion decrease in average interest-bearing cash and deposits with banks.

•Loans – Total loans were $53.7 billion as of December 31, 2024, an increase of nearly $0.5 billion from $53.3 billion as of September 30, 2024. Year-over-year, total loans were up $1.5 billion, or 3%, from $52.2 billion as of December 31, 2023.

Fourth quarter 2024 average loans of $53.2 billion grew $0.8 billion, or 1.5%, from the third quarter of 2024. The increase was primarily driven by growth in our C&I and residential mortgage lending portfolios.

•Deposits – Total deposits were $63.2 billion as of December 31, 2024, an increase of $1.5 billion, or 2%, from $61.7 billion as of September 30, 2024, primarily reflecting growth in noninterest-bearing demand and money market deposits. Noninterest-bearing deposits made up 24% of total deposits as of December 31, 2024. Year-over-year, total deposits increased $7.1 billion from $56.1 billion as of December 31, 2023.

Fourth quarter 2024 average deposits of $61.9 billion increased $1.4 billion from the third quarter of 2024, with growth in average time, noninterest-bearing demand, interest-bearing checking, and money market deposits.

•Capital – As of December 31, 2024, stockholders’ equity was $7.7 billion, up 1% quarter-over-quarter. The total stockholders’ equity to assets ratio was 10.17% as of December 31, 2024, compared with 10.29% as of September 30, 2024.

Book value per share was $55.79 as of December 31, 2024, up $0.49, or 1% quarter-over-quarter. As of December 31, 2024, tangible book value per share3 was $52.39, up $0.49, or 1% quarter-over-quarter.

East West’s regulatory capital ratios are well in excess of regulatory requirements for well-capitalized institutions, and well above regional bank averages.

CAPITAL STRENGTH

The following table presents capital metrics as of December 31, 2024, September 30, 2024 and December 31, 2023.

EWBC Capital
($ in millions)												December 31, 2024 (a)						September 30, 2024 (a)						December 31, 2023 (a)
Risk-Weighted Assets (“RWA”) (b)												$54,949						$54,291						$53,663
Risk-based capital ratios:
Total capital ratio												15.59%						15.39%						14.76%
CET1 capital ratio												14.28%						14.08%						13.31%
Tier 1 capital ratio												14.28%						14.08%						13.31%
Leverage ratio												10.42%						10.40%						10.21%
Total stockholders’ equity to assets ratio												10.17%						10.29%						9.98%
Tangible common equity ratio (c)												9.60%						9.72%						9.37%

(a)The Company has elected to use the 2020 Current Expected Credit Losses (CECL) transition provision in the calculation of its December 31, 2024, September 30, 2024, and December 31, 2023 regulatory capital ratios. The Company’s December 31, 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.

3 Tangible book value per share is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP measures in Table 13.

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OPERATING RESULTS

Full Year Earnings - Full year 2024 net income was a record $1.2 billion or $8.33 per diluted share, up 0.4% and 2% year-over-year, respectively. Full year revenue was a record $2.6 billion, an increase of $6 million year-over-year. Full year pre-tax, pre-provision income4 was a record $1.7 billion, an increase of $74 million, or 5% year-over-year.

Fourth Quarter Earnings – Fourth quarter 2024 net income was $293 million or $2.10 per diluted share. Fourth quarter 2024 revenue was $676 million, up $19 million, or 3% quarter-over-quarter. Pre-tax, pre-provision income4 totaled $427 million in the fourth quarter.

Fourth Quarter 2024 Compared to Third Quarter 2024

Net Interest Income and Net Interest Margin

Net interest income totaled $588 million in the fourth quarter, an increase of 3% from $573 million in the third quarter of 2024. Net interest margin (“NIM”) was 3.24%, unchanged from the third quarter.

•The average loan yield was 6.50%, down 23 basis points from the third quarter. The average interest-earning asset yield was 5.84%, down 25 basis points from the third quarter.

•The average cost of funds was 2.87%, down 25 basis points from the third quarter. The average cost of interest-bearing deposits was 3.63%, a 30-basis point decrease from the third quarter.

Noninterest Income

Noninterest income totaled $88 million in the fourth quarter, an increase of $4 million, or 4% from $84 million in the third quarter.

•Fee income5 of $81 million was unchanged from the third quarter.

•Foreign exchange income increased $3 million in the fourth quarter, primarily reflecting a favorable change in mark-to-market adjustments on foreign exchange positions.

•Lending fees of $25 million were down $2 million in the fourth quarter, primarily reflecting lower syndication activity.

•Wealth management fees decreased $1 million quarter-over-quarter, reflecting lower customer activity.

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

•Other investment income decreased $3 million quarter-over-quarter, reflecting lower income from investments in the fourth quarter.

Noninterest Expense

Total noninterest expense totaled $250 million in the fourth quarter, which included $19 million in tax credit and Community Reinvestment Act (“CRA”) investment amortization and $5 million of net other real estate owned (OREO) write-downs.

•Total operating noninterest expense was $231 million, an increase of $10 million, or 5% quarter-over-quarter, including $5 million of net OREO write-downs.

•Compensation and employee benefits were $140 million, an increase of $4 million, or 3%.

•Deposit account expense was $11 million, a decrease of $1 million, or 11% quarter-over-quarter.

•Occupancy and equipment expense was $16 million, a decrease of $1 million, or 4% quarter-over-quarter.

•Deposit insurance premiums and regulatory assessments were $6 million, a $3 million decrease reflecting a $3 million reversal of Federal Deposit Insurance Corporation (“FDIC”) Special Assessment-related expense.

•The efficiency ratio was 36.9% in the fourth quarter, compared with 34.3% in the third quarter.

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.

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TAX RELATED ITEMS

Full year 2024 income tax expense was $316 million, and the effective tax rate was 21.3%, compared with income tax expense of $299 million and an effective tax rate of 20.5% for the full year of 2023. Fourth quarter 2024 income tax expense was $63 million, and the effective tax rate was 17.6%, compared with income tax expense of $90 million and 23.2% in the third quarter of 2024, primarily reflecting lower pre-tax income in the fourth quarter.

ASSET QUALITY

As of December 31, 2024, the credit quality of our loan portfolio remained solid.

•Nonperforming assets decreased $1 million to $194 million as of December 31, 2024, from $195 million as of September 30, 2024. The nonperforming assets ratio was 0.26% of total assets as of December 31, 2024, unchanged from the prior quarter.

•The criticized loans ratio increased 10 basis points quarter-over-quarter to 2.18% of loans held-for-investment (“HFI”) as of December 31, 2024, compared with 2.08% as of September 30, 2024. Criticized loans increased $63 million quarter-over-quarter to $1.2 billion as of December 31, 2024. The quarter-over-quarter change primarily reflects increases related to C&I and commercial real estate loans.

•The special mention loans ratio decreased five basis points quarter-over-quarter to 0.83% of loans HFI as of December 31, 2024, compared with 0.88% as of September 30, 2024, while the classified loans ratio increased 15 basis points to 1.35%.

•Net OREO balances decreased $6 million quarter-over-quarter to $35 million, compared with $41 million for the third quarter of 2024.

•Fourth quarter 2024 net charge-offs were $64 million, or annualized 0.48% of average loans HFI, compared with $29 million, or annualized 0.22% of average loans HFI, for the third quarter of 2024. Full year 2024 net charge-offs were $139 million, or 0.26% of average loans HFI.

•The allowance for loan losses increased to $702 million, or 1.31% of loans HFI, as of December 31, 2024, compared with $696 million, or 1.31% of loans HFI, as of September 30, 2024.

•Fourth quarter 2024 provision for credit losses was $70 million, compared with $42 million in the third quarter of 2024.

DIVIDEND PAYOUT AND CAPITAL ACTIONS

East West’s Board of Directors has declared the first quarter 2025 dividend for the Company’s common stock. The common stock cash dividend of $0.60 per share is payable on February 17, 2025 to shareholders of record as of February 3, 2025. This represents a 9% increase, or five cents per share, to the quarterly common stock dividend, up from $0.55 per share previously. The new annual dividend equivalent is $2.40 per share, compared with $2.20 per share previously.

East West repurchased approximately 200 thousand shares of common stock during the fourth quarter of 2024 for $20 million. On January 22, 2025, East West’s Board of Directors authorized the repurchase of up to $300 million of additional East West stock, resulting in $329 million of total current authorization available.

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Conference Call

East West will host a conference call to discuss fourth quarter and full year 2024 earnings with the public on Thursday, January 23, 2025, at 2:00 p.m. PT/5:00 p.m. ET. The public and investment community are invited to listen as management discusses fourth quarter and full year 2024 results and operating developments.

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

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

For Investor Inquiries, Contact:

Adrienne Atkinson
Director of Investor Relations
T: (626) 788-7536
E: adrienne.atkinson@eastwestbank.com

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 $76.0 billion as of December 31, 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.

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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 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.

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EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
($ and shares in thousands, except per share data)
(unaudited)
Table 1
																											December 31, 2024 % or Basis Point Change
									December 31, 2024						September 30, 2024						December 31, 2023						Qtr-o-Qtr						Yr-o-Yr
Assets
			Cash and cash equivalents, and deposits with banks						$	5,298,940					$	4,976,174					$	4,625,482					6.5		%				14.6		%
			Securities purchased under resale agreements (“resale agreements”)						425,000						425,000						785,000						—						(45.9)
			Available-for-sale (“AFS”) debt securities (amortized cost of $11,505,775, $10,667,293 and $6,916,491)						10,846,811						10,133,877						6,188,337						7.0						75.3
			Held-to-maturity (“HTM”) debt securities, at amortized cost (fair value of $2,387,754, $2,510,352 and $2,453,971)						2,917,413						2,928,399						2,956,040						(0.4)						(1.3)
			Total cash, resale agreements and debt securities						19,488,164						18,463,450						14,554,859						5.5						33.9
			Loans held-for-sale (“HFS”)						—						—						116						—						(100.0)
			Loans held-for-investment (“HFI”) (net of allowance for loan losses of $702,052, $696,485 and $668,743)						53,024,585						52,556,696						51,542,039						0.9						2.9
			Affordable housing partnership, tax credit and Community Reinvestment Act (“CRA”) investments, net						926,640						924,439						905,036						0.2						2.4
			Goodwill						465,697						465,697						465,697						—						—
			Operating lease right-of-use assets						81,967						82,775						94,024						(1.0)						(12.8)
			Other assets						1,989,422						1,990,663						2,051,113						(0.1)						(3.0)
			Total assets						$	75,976,475					$	74,483,720					$	69,612,884					2.0		%				9.1		%
Liabilities and Stockholders’ Equity
			Deposits						$	63,175,023					$	61,700,115					$	56,092,438					2.4		%				12.6		%
			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						35,974						36,055						153,011						(0.2)						(76.5)
			Operating lease liabilities						89,263						90,369						102,353						(1.2)						(12.8)
			Accrued expenses and other liabilities						1,453,161						1,492,642						1,814,248						(2.6)						(19.9)
			Total liabilities						68,253,421						66,819,181						62,662,050						2.1						8.9
			Stockholders’ equity						7,723,054						7,664,539						6,950,834						0.8						11.1
			Total liabilities and stockholders’ equity						$	75,976,475					$	74,483,720					$	69,612,884					2.0		%				9.1		%
			Total cash, resale agreements and debt securities/total assets						25.65		%				24.79		%				20.91		%				86			bps			474			bps
			Total stockholders’ equity to assets ratio						10.17		%				10.29		%				9.98		%				(12)						19
			Tangible common equity (“TCE”) ratio (1)						9.60		%				9.72		%				9.37		%				(12)			bps			23			bps
			Book value per share						$	55.79					$	55.30					$	49.64					0.9		%				12.4		%
			Tangible book value (1) per share						$	52.39					$	51.90					$	46.27					0.9						13.2
			Number of common shares at period-end						138,437						138,609						140,027						(0.1)		%				(1.1)		%

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

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EAST WEST BANCORP, INC. AND SUBSIDIARIES
TOTAL LOANS AND DEPOSITS DETAIL
($ in thousands)
(unaudited)
Table 2
																											December 31, 2024 % Change
									December 31, 2024						September 30, 2024						December 31, 2023						Qtr-o-Qtr						Yr-o-Yr
Loans:
Commercial:
			Commercial and industrial (“C&I”)						$	17,397,158					$	17,068,002					$	16,581,079					1.9		%				4.9		%
			Commercial real estate (“CRE”):
			CRE						14,655,340						14,568,209						14,777,081						0.6						(0.8)
			Multifamily residential						4,953,442						5,141,481						5,023,163						(3.7)						(1.4)
			Construction and land						666,162						693,775						663,868						(4.0)						0.3
			Total CRE						20,274,944						20,403,465						20,464,112						(0.6)						(0.9)
Consumer:
			Residential mortgage:
			Single-family residential						14,175,446						13,963,097						13,383,060						1.5						5.9
			Home equity lines of credit (“HELOCs”)						1,811,628						1,760,716						1,722,204						2.9						5.2
			Total residential mortgage						15,987,074						15,723,813						15,105,264						1.7						5.8
			Other consumer						67,461						57,901						60,327						16.5						11.8
Total loans HFI (1)									53,726,637						53,253,181						52,210,782						0.9						2.9
Loans HFS									—						—						116						—						(100.0)
			Total loans (1)						53,726,637						53,253,181						52,210,898						0.9						2.9
Allowance for loan losses									(702,052)						(696,485)						(668,743)						0.8						5.0
			Net loans (1)						$	53,024,585					$	52,556,696					$	51,542,155					0.9		%				2.9		%
Deposits by product:
			Noninterest-bearing demand						$	15,450,428					$	14,690,864					$	15,539,872					5.2		%				(0.6)		%
			Interest-bearing checking						7,940,692						8,052,720						7,558,908						(1.4)						5.1
			Money market						14,816,511						14,021,042						13,108,727						5.7						13.0
			Savings						1,751,620						1,718,378						1,841,467						1.9						(4.9)
			Time deposits						23,215,772						23,217,111						18,043,464						0.0						28.7
			Total deposits						$	63,175,023					$	61,700,115					$	56,092,438					2.4		%				12.6		%
Deposits by segment/region:
			Consumer and Business Banking - U.S. (2)						$	32,832,926					$	32,104,904					$	28,571,255					2.3		%				14.9		%
			Commercial Banking - U.S. (2)						23,405,769						23,212,616						22,059,662						0.8						6.1
			International Branches (3)						3,412,262						3,307,793						3,172,221						3.2						7.6
			Treasury and Other - U.S. (4)						3,524,066						3,074,802						2,289,299						14.6						53.9
			Total deposits						$	63,175,023					$	61,700,115					$	56,092,437					2.4		%				12.6		%

(1)Includes $46 million, $52 million and $71 million of net deferred loan fees and net unamortized premiums as of December 31, 2024, September 30, 2024 and December 31, 2023, respectively.

(2)Excludes deposits presented under International Branches.

(3)Deposits of our Hong Kong branch and China subsidiary, primarily a subset of Commercial Banking segment deposits.

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

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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, 2024 % Change
									December 31, 2024						September 30, 2024						December 31, 2023						Qtr-o-Qtr						Yr-o-Yr
Interest and dividend income									$	1,059,266					$	1,075,899					$	990,378					(1.5)%						7.0%
Interest expense									471,640						503,177						415,544						(6.3)						13.5
Net interest income before provision for credit losses									587,626						572,722						574,834						2.6						2.2
Provision for credit losses									70,000						42,000						37,000						66.7						89.2
Net interest income after provision for credit losses									517,626						530,722						537,834						(2.5)%						(3.8)%
Noninterest income:
			Deposit account fees						26,468						26,815						23,828						(1.3)%						11.1%
			Lending fees						24,737						26,453						22,077						(6.5)						12.0
			Foreign exchange income						16,643						13,569						13,404						22.7						24.2
			Wealth management fees						9,829						10,683						7,780						(8.0)						26.3
			Customer derivative income						3,782						3,774						6,297						0.2						(39.9)
			Total fee income						81,459						81,294						73,386						0.2						11.0
			Derivative mark-to-market and credit valuation adjustments						3,811						(4,480)						(7,242)						NM						NM
			Net gains on sales of loans						8						21						3,675						(61.9)						(99.8)
			Net gains on AFS debt securities						90						145						3,138						(37.9)						(97.1)
			Other investment (loss) income						(590)						2,800						1,673						NM						NM
			Other income						3,388						4,615						5,273						(26.6)						(35.7)
Total noninterest income									88,166						84,395						79,903						4.5%						10.3%
Noninterest expense:
			Compensation and employee benefits						139,870						135,464						130,794						3.3%						6.9%
			Occupancy and equipment expense						16,384						17,001						15,735						(3.6)						4.1
			Deposit account expense						10,923						12,229						11,390						(10.7)						(4.1)
			Computer and software related expenses						13,099						11,436						11,315						14.5						15.8
			Deposit insurance premiums and regulatory assessments (1)						6,201						9,178						78,553						(32.4)						(92.1)
			Other operating expense						44,108						34,892						38,130						26.4						15.7
			Total operating noninterest expense						230,585						220,200						285,917						4.7						(19.4)
			Amortization of tax credit and CRA investments (2)						19,383						5,600						4,581						246.1						323.1
Total noninterest expense									249,968						225,800						290,498						10.7						(14.0)
Income before income taxes									355,824						389,317						327,239						(8.6)						8.7
Income tax expense									62,709						90,151						88,286						(30.4)						(29.0)
Net income									$	293,115					$	299,166					$	238,953					(2.0)%						22.7%
Earnings per share (“EPS”)
- Basic									$	2.11					$	2.16					$	1.70					(2.0)%						24.4%
- Diluted									$	2.10					$	2.14					$	1.69					(2.2)						24.0
Weighted-average number of shares outstanding
- Basic									138,604						138,606						140,595						0.0%						(1.4)%
- Diluted									139,883						139,648						141,409						0.2						(1.1)

NM - Not meaningful.

(1)Includes $3 million of FDIC special assessment reversal and $70 million of FDIC special assessment charges for the three months ended December 31, 2024 and 2023, respectively.

(2)Includes $343 thousand, $11 million and $4 million in DC Solar recoveries for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively.

9

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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, 2024 % Change
									December 31, 2024						December 31, 2023						Yr-o-Yr
Interest and dividend income									$	4,193,196					$	3,693,805								13.5%
Interest expense									1,914,480						1,381,551									38.6
Net interest income before provision for credit losses									2,278,716						2,312,254									(1.5)
Provision for credit losses									174,000						125,000									39.2
Net interest income after provision for credit losses									2,104,716						2,187,254									(3.8)%
Noninterest income:
			Deposit account fees						103,880						93,811									10.7%
			Lending fees						98,455						83,876									17.4
			Foreign exchange income						54,605						48,276									13.1
			Wealth management fees						38,627						26,994									43.1
			Customer derivative income						14,923						23,216									(35.7)
			Total fee income						310,490						276,173									12.4
			Derivative mark-to-market and credit valuation adjustments						1,478						(3,016)									NM
			Net gains on sales of loans						44						3,634									(98.8)
			Net gains (losses) on AFS debt securities (1)						2,069						(6,862)									NM
			Other investment income						5,611						9,348									(40.0)
			Other income						15,526						15,987									(2.9)
Total noninterest income									335,218						295,264									13.5%
Noninterest expense
			Compensation and employee benefits						550,734						508,538									8.3%
			Occupancy and equipment expense						64,399						62,763									2.6
			Deposit account expense						47,390						43,143									9.8
			Computer and software related expenses						47,271						44,475									6.3
			Deposit insurance premiums and regulatory assessments (2)						45,736						103,308									(55.7)
			Other operating expense (3)						148,301						140,222									5.8
			Total operating noninterest expense						903,831						902,449									0.2
			Amortization of tax credit and CRA investments (4)						54,242						120,299									(54.9)
Total noninterest expense									958,073						1,022,748									(6.3)
Income before income taxes									1,481,861						1,459,770									1.5
Income tax expense									316,275						298,609									5.9
Net income									$	1,165,586					$	1,161,161								0.4%
EPS
- Basic									$	8.39					$	8.23								2.0%
- Diluted									$	8.33					$	8.18								1.8
Weighted-average number of shares outstanding
- Basic									138,898						141,164									(1.6)%
- Diluted									139,958						141,902									(1.4)

NM - Not meaningful.

(1)Includes $7 million of net losses on an AFS debt security for the twelve months ended December 31, 2023.

(2)Includes $9 million and $70 million of FDIC special assessment charges for the twelve months ended December 31, 2024 and 2023, respectively.

(3)Includes $4 million of repurchase agreements’ extinguishment cost for the twelve months ended December 31, 2023.

(4)Includes $15 million and $9 million of DC Solar recoveries for the twelve months ended December 31, 2024 and 2023, respectively.

10

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EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED AVERAGE BALANCES
($ in thousands)
(unaudited)
Table 5
									Three Months Ended																		December 31, 2024 % Change												Year Ended												December 31, 2024 % Change
									December 31, 2024						September 30, 2024						December 31, 2023						Qtr-o-Qtr						Yr-o-Yr						December 31, 2024						December 31, 2023						Yr-o-Yr
Loans:
Commercial:
			C&I						$	17,010,327					$	16,492,589					$	15,948,678					3.1%						6.7%						$	16,492,472					$	15,499,899					6.4%
			CRE:
			CRE						14,580,509						14,483,163						14,723,027						0.7						(1.0)						14,587,444						14,312,459						1.9
			Multifamily residential						5,046,676						5,127,659						4,939,119						(1.6)						2.2						5,061,821						4,756,885						6.4
			Construction and land						680,374						661,840						752,783						2.8						(9.6)						666,748						754,928						(11.7)
			Total CRE						20,307,559						20,272,662						20,414,929						0.2						(0.5)						20,316,013						19,824,272						2.5
Consumer:
			Residential mortgage:
			Single-family residential						14,048,515						13,846,946						13,097,056						1.5						7.3						13,753,295						12,274,776						12.0
			HELOCs						1,775,587						1,754,361						1,732,348						1.2						2.5						1,751,500						1,881,008						(6.9)
			Total residential mortgage						15,824,102						15,601,307						14,829,404						1.4						6.7						15,504,795						14,155,784						9.5
			Other consumer						59,273						53,958						59,245						9.9						0.0						55,500						65,181						(14.9)
			Total loans (1)						$	53,201,261					$	52,420,516					$	51,252,256					1.5%						3.8%						$	52,368,780					$	49,545,136					5.7%
Interest-earning assets									$	72,150,099					$	70,263,495					$	65,505,724					2.7%						10.1%						$	69,718,884					$	64,039,402					8.9%
Total assets									$	75,121,440					$	73,268,158					$	69,421,959					2.5%						8.2%						$	72,821,842					$	67,757,505					7.5%
Deposits:
			Noninterest-bearing demand						$	14,973,805					$	14,606,511					$	15,884,525					2.5%						(5.7)%						$	14,799,961					$	17,192,978					(13.9)%
			Interest-bearing checking						7,998,098						7,762,719						7,608,234						3.0						5.1						7,731,828						7,658,414						1.0
			Money market						14,313,494						14,201,258						12,824,121						0.8						11.6						13,970,375						11,680,540						19.6
			Savings						1,731,414						1,744,644						1,873,276						(0.8)						(7.6)						1,770,041						2,128,943						(16.9)
			Time deposits						22,931,856						22,270,124						17,216,367						3.0						33.2						21,400,834						16,301,856						31.3
			Total deposits						$	61,948,667					$	60,585,256					$	55,406,523					2.3%						11.8%						$	59,673,039					$	54,962,731					8.6%

(1)Includes loans HFS.

11

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EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 6
									Three Months Ended
									December 31, 2024																		September 30, 2024
									Average Balance						Interest						Average Yield/Rate (1)						Average Balance						Interest						Average Yield/Rate (1)
Assets
Interest-earning assets:
			Interest-bearing cash and deposits with banks						$	4,585,135					$	47,946					4.16		%				$	4,987,191					$	60,060					4.79		%
			Resale agreements						425,000						1,591						1.49		%				443,261						1,663						1.49		%
			Debt securities:
			AFS						10,852,569						125,628						4.61		%				9,316,232						111,552						4.76		%
			HTM						2,921,096						12,330						1.68		%				2,931,033						12,431						1.69		%
			Total debt securities						13,773,665						137,958						3.98		%				12,247,265						123,983						4.03		%
			Loans:
			C&I						17,010,327						317,374						7.42		%				16,492,589						328,619						7.93		%
			CRE						20,307,559						317,526						6.22		%				20,272,662						328,254						6.44		%
			Residential mortgage						15,824,102						233,147						5.86		%				15,601,307						229,727						5.86		%
			Other consumer						59,273						749						5.03		%				53,958						753						5.55		%
			Total loans (2)						53,201,261						868,796						6.50		%				52,420,516						887,353						6.73		%
			FHLB and FRB stock						165,038						2,975						7.17		%				165,262						2,840						6.84		%
			Total interest-earning assets						$	72,150,099					$	1,059,266					5.84		%				$	70,263,495					$	1,075,899					6.09		%
Noninterest-earning assets:
			Cash and due from banks						381,012																		341,856
			Allowance for loan losses						(707,689)																		(691,399)
			Other assets						3,298,018																		3,354,206
			Total assets						$	75,121,440																	$	73,268,158
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
			Checking deposits						$	7,998,098					$	56,640					2.82		%				$	7,762,719					$	58,226					2.98		%
			Money market deposits						14,313,494						119,420						3.32		%				14,201,258						136,384						3.82		%
			Savings deposits						1,731,414						3,829						0.88		%				1,744,644						4,811						1.10		%
			Time deposits						22,931,856						248,533						4.31		%				22,270,124						254,650						4.55		%
			Total interest-bearing deposits						46,974,862						428,422						3.63		%				45,978,745						454,071						3.93		%
			Short-term borrowings and federal funds purchased						783						9						4.57		%				1,170						16						5.44		%
			FHLB advances						3,500,001						42,429						4.82		%				3,440,219						48,261						5.58		%
			Assets sold under repurchase agreements (“repurchase agreements”)						4,337						55						5.05		%				3,455						49						5.64		%
			Long-term debt and finance lease liabilities						36,123						725						7.98		%				36,084						780						8.60		%
			Total interest-bearing liabilities						$	50,516,106					$	471,640					3.71		%				$	49,459,673					$	503,177					4.05		%
Noninterest-bearing liabilities and stockholders’ equity:
			Demand deposits						14,973,805																		14,606,511
			Accrued expenses and other liabilities						1,900,205																		1,758,641
			Stockholders’ equity						7,731,324																		7,443,333
			Total liabilities and stockholders’ equity						$	75,121,440																	$	73,268,158
			Total deposits						$	61,948,667					$	428,422					2.75		%				$	60,585,256					$	454,071					2.98		%
Interest rate spread																					2.13		%																2.04		%
Net interest income and net interest margin															$	587,626					3.24		%										$	572,722					3.24		%

(1)Annualized.

(2)Includes loans HFS.

12

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EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 7
									Three Months Ended
									December 31, 2024																		December 31, 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						$	4,585,135					$	47,946					4.16		%				$	4,445,115					$	56,250					5.02		%
			Resale agreements						425,000						1,591						1.49		%				785,000						7,232						3.66		%
			Debt securities:
			AFS						10,852,569						125,628						4.61		%				5,985,361						58,926						3.91		%
			HTM						2,921,096						12,330						1.68		%				2,958,294						12,585						1.69		%
			Total debt securities						13,773,665						137,958						3.98		%				8,943,655						71,511						3.17		%
			Loans:
			C&I						17,010,327						317,374						7.42		%				15,948,678						321,026						7.99		%
			CRE						20,307,559						317,526						6.22		%				20,414,929						327,194						6.36		%
			Residential mortgage						15,824,102						233,147						5.86		%				14,829,404						205,371						5.49		%
			Other consumer						59,273						749						5.03		%				59,245						786						5.26		%
			Total loans (2)						53,201,261						868,796						6.50		%				51,252,256						854,377						6.61		%
			FHLB and FRB stock						165,038						2,975						7.17		%				79,698						1,008						5.02		%
			Total interest-earning assets						$	72,150,099					$	1,059,266					5.84		%				$	65,505,724					$	990,378					6.00		%
Noninterest-earning assets:
			Cash and due from banks						381,012																		489,055
			Allowance for loan losses						(707,689)																		(650,724)
			Other assets						3,298,018																		4,077,904
			Total assets						$	75,121,440																	$	69,421,959
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
			Checking deposits						$	7,998,098					$	56,640					2.82		%				$	7,608,234					$	52,170					2.72		%
			Money market deposits						14,313,494						119,420						3.32		%				12,824,121						123,744						3.83		%
			Savings deposits						1,731,414						3,829						0.88		%				1,873,276						3,894						0.82		%
			Time deposits						22,931,856						248,533						4.31		%				17,216,367						183,175						4.22		%
			Total interest-bearing deposits						46,974,862						428,422						3.63		%				39,521,998						362,983						3.64		%
			Short-term borrowings and federal funds purchased						783						9						4.57		%				4,500,475						49,570						4.37		%
			Repurchase agreements						4,337						55						5.05		%				2,876						41						5.66		%
			FHLB advances						3,500,001						42,429						4.82		%				1						—						—		%
			Long-term debt and finance lease liabilities						36,123						725						7.98		%				153,010						2,950						7.65		%
			Total interest-bearing liabilities						$	50,516,106					$	471,640					3.71		%				$	44,178,360					$	415,544					3.73		%
Noninterest-bearing liabilities and stockholders’ equity:
			Demand deposits						14,973,805																		15,884,525
			Accrued expenses and other liabilities						1,900,205																		2,663,222
			Stockholders’ equity						7,731,324																		6,695,852
			Total liabilities and stockholders’ equity						$	75,121,440																	$	69,421,959
			Total deposits						$	61,948,667					$	428,422					2.75		%				$	55,406,523					$	362,983					2.60		%
Interest rate spread																					2.13		%																2.27		%
Net interest income and net interest margin															$	587,626					3.24		%										$	574,834					3.48		%

(1)Annualized.

(2)Includes loans HFS.

13

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EAST WEST BANCORP, INC. AND SUBSIDIARIES
YEAR-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 8
									Year Ended
									December 31, 2024																		December 31, 2023
									Average Balance						Interest						Average Yield/Rate						Average Balance						Interest						Average Yield/Rate
Assets
Interest-earning assets:
			Interest-bearing cash and deposits with banks						$	4,936,550					$	231,794					4.70		%				$	4,638,630					$	220,643					4.76		%
			Assets purchased under resale agreements (1)						519,263						11,254						2.17		%				691,223						20,164						2.92		%
			Debt securities:
			AFS						8,811,274						399,280						4.53		%				6,105,999						225,592						3.69		%
			HTM						2,935,937						49,785						1.70		%				2,976,237						50,598						1.70		%
			Total debt securities						11,747,211						449,065						3.82		%				9,082,236						276,190						3.04		%
			Loans:
			C&I						16,492,472						1,294,451						7.85		%				15,499,899						1,190,940						7.68		%
			CRE						20,316,013						1,292,973						6.36		%				19,824,272						1,227,795						6.19		%
			Residential mortgage						15,504,795						900,514						5.81		%				14,155,784						750,813						5.30		%
			Other consumer						55,500						3,041						5.48		%				65,181						3,198						4.91		%
			Total loans (2)						52,368,780						3,490,979						6.67		%				49,545,136						3,172,746						6.40		%
			FHLB and FRB stock						147,080						10,104						6.87		%				82,177						4,062						4.94		%
			Total interest-earning assets						$	69,718,884					$	4,193,196					6.01		%				$	64,039,402					$	3,693,805					5.77		%
Noninterest-earning assets:
			Cash and due from banks						345,056																		555,689
			Allowance for loan losses						(688,448)																		(625,785)
			Other assets						3,446,350																		3,788,199
			Total assets						$	72,821,842																	$	67,757,505
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
			Checking deposits						$	7,731,828					$	221,367					2.86		%				$	7,658,414					$	179,200					2.34		%
			Money market deposits						13,970,375						525,870						3.76		%				11,680,540						399,482						3.42		%
			Savings deposits						1,770,041						17,764						1.00		%				2,128,943						15,573						0.73		%
			Time deposits						21,400,834						955,173						4.46		%				16,301,856						611,295						3.75		%
			Total interest-bearing deposits						44,873,078						1,720,174						3.83		%				37,769,753						1,205,550						3.19		%
			BTFP, short-term borrowings and federal funds purchased						962,061						42,163						4.38		%				3,591,114						157,002						4.37		%
			FHLB advances						2,752,733						147,269						5.35		%				123,288						6,430						5.22		%
			Repurchase agreements						3,613						197						5.45		%				34,443						1,497						4.35		%
			Long-term debt and finance lease liabilities						58,467						4,677						8.00		%				152,790						11,072						7.25		%
			Total interest-bearing liabilities						$	48,649,952					$	1,914,480					3.94		%				$	41,671,388					$	1,381,551					3.32		%
Noninterest-bearing liabilities and stockholders’ equity:
			Demand deposits						14,799,961																		17,192,978
			Accrued expenses and other liabilities						2,056,755																		2,410,154
			Stockholders’ equity						7,315,174																		6,482,985
			Total liabilities and stockholders’ equity						$	72,821,842																	$	67,757,505
			Total deposits						$	59,673,039					$	1,720,174					2.88		%				$	54,962,731					$	1,205,550					2.19		%
Interest rate spread																					2.07		%																2.45		%
Net interest income and net interest margin															$	2,278,716					3.27		%										$	2,312,254					3.61		%

(1)Includes the average balances and interest income for securities and loans purchased under resale agreements for the twelve months ended December 31, 2023. There were no loans purchased under resale agreements for the twelve months ended December 31, 2024.

(2)Includes loans HFS.

14

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EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED RATIOS
(unaudited)
Table 9
									Three Months Ended (1)																		December 31, 2024 Basis Point Change
									December 31, 2024						September 30, 2024						December 31, 2023						Qtr-o-Qtr						Yr-o-Yr
			Return on average assets						1.55		%				1.62		%				1.37		%				(7)			bps			18			bps
			Return on average common equity						15.08		%				15.99		%				14.16		%				(91)						92
			Return on average TCE (2)						16.07		%				17.08		%				15.26		%				(101)						81
			Interest rate spread						2.13		%				2.04		%				2.27		%				9						(14)
			Net interest margin						3.24		%				3.24		%				3.48		%				—						(24)
			Average loan yield						6.50		%				6.73		%				6.61		%				(23)						(11)
			Yield on average interest-earning assets						5.84		%				6.09		%				6.00		%				(25)						(16)
			Average cost of interest-bearing deposits						3.63		%				3.93		%				3.64		%				(30)						(1)
			Average cost of deposits						2.75		%				2.98		%				2.60		%				(23)						15
			Average cost of funds						2.87		%				3.12		%				2.74		%				(25)						13
			Operating noninterest expense/average assets						1.22		%				1.20		%				1.63		%				2						(41)
			Efficiency ratio						36.92		%				34.34		%				44.34		%				258						(742)
			Effective tax rate						17.62		%				23.16		%				26.98		%				(554)			bps			(936)			bps
									Year Ended												December 31, 2024 Basis Point Change
									December 31, 2024						December 31, 2023						Yr-o-Yr
			Return on average assets						1.60		%				1.71		%				(11)			bps
			Return on average common equity						15.93		%				17.91		%				(198)
			Return on average TCE (2)						17.05		%				19.35		%				(230)
			Interest rate spread						2.07		%				2.45		%				(38)
			Net interest margin						3.27		%				3.61		%				(34)
			Average loan yield						6.67		%				6.40		%				27
			Yield on average interest-earning assets						6.01		%				5.77		%				24
			Average cost of interest-bearing deposits						3.83		%				3.19		%				64
			Average cost of deposits						2.88		%				2.19		%				69
			Average cost of funds						3.02		%				2.35		%				67
			Operating noninterest expense/average assets						1.24		%				1.33		%				(9)
			Efficiency ratio						36.59		%				39.20		%				(261)
			Effective tax rate						21.34		%				20.46		%				88			bps
																											December 31, 2024 Basis Point Change
									December 31, 2024						September 30, 2024						December 31, 2023						Qtr-o-Qtr						Yr-o-Yr
			Loan-to-deposit ratio						85.04		%				86.31		%				93.08		%				(127)						(804)

(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 financial measures in Table 13.

15

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EAST WEST BANCORP, INC. AND SUBSIDIARIES
ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE SHEET CREDIT EXPOSURES
($ in thousands)
(unaudited)
Table 10
									Three Months Ended December 31, 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, September 30, 2024									$	378,315					$	221,244					$	31,782					$	12,208								$	48,231					$	3,210								$	1,495					$	696,485
Provision for (reversal of) credit losses on loans			(a)						66,318						(2,634)						149						5,286									(3,416)						(81)									3,921						69,543
Gross charge-offs									(62,021)						(1)						(4)						—									—						(5)									(3,922)						(65,953)
Gross recoveries									2,140						68						190						3									1						8									—						2,410
Total net (charge-offs) recoveries									(59,881)						67						186						3									1						3									(3,922)						(63,543)
Foreign currency translation adjustment									(433)						—						—						—									—						—									—						(433)
Allowance for loan losses, December 31, 2024									$	384,319					$	218,677					$	32,117					$	17,497								$	44,816					$	3,132								$	1,494					$	702,052

									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 December 31, 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, September 30, 2023									$	383,677					$	178,040					$	24,162					$	9,216								$	54,930					$	3,795								$	1,703					$	655,523
Provision for (reversal of) credit losses on loans			(a)						27,732						(6,306)						10,151						1,030									88						145									50						32,890
Gross charge-offs									(20,264)						(1,210)						(3)						—									—						—									(96)						(21,573)
Gross recoveries									1,248						68						65						223									—						7									—						1,611
Total net (charge-offs) recoveries									(19,016)						(1,142)						62						223									—						7									(96)						(19,962)
Foreign currency translation adjustment									292						—						—						—									—						—									—						292
Allowance for loan losses, December 31, 2023									$	392,685					$	170,592					$	34,375					$	10,469								$	55,018					$	3,947								$	1,657					$	668,743

16

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EAST WEST BANCORP, INC. AND SUBSIDIARIES
ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE-SHEET CREDIT EXPOSURES
($ in thousands)
(unaudited)
Table 10 (continued)
									Year Ended December 31, 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, December 31, 2023									$	392,685					$	170,592					$	34,375					$	10,469								$	55,018					$	3,947								$	1,657					$	668,743
Provision for (reversal of) credit losses on loans			(a)						110,791						61,908						(2,684)						9,114									(10,176)						(873)									4,096						172,176
Gross charge-offs									(125,413)						(14,236)						(10)						(2,289)									(35)						(15)									(4,259)						(146,257)
Gross recoveries									6,505						413						436						203									9						73									—						7,639
Total net (charge-offs) recoveries									(118,908)						(13,823)						426						(2,086)									(26)						58									(4,259)						(138,618)
Foreign currency translation adjustment									(249)						—						—						—									—						—									—						(249)
Allowance for loan losses, December 31, 2024									$	384,319					$	218,677					$	32,117					$	17,497								$	44,816					$	3,132								$	1,494					$	702,052

									Year Ended December 31, 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)						45,319						27,007						10,454						11,537									19,384						(424)									294						113,571
Gross charge-offs									(36,573)						(7,048)						(3)						(10,413)									—						(138)									(197)						(54,372)
Gross recoveries									6,803						432						545						236									69						33									—						8,118
Total net (charge-offs) recoveries									(29,770)						(6,616)						542						(10,177)									69						(105)									(197)						(46,254)
Foreign currency translation adjustment									(247)						—						—						—									—						—									—						(247)
Allowance for loan losses, December 31, 2023									$	392,685					$	170,592					$	34,375					$	10,469								$	55,018					$	3,947								$	1,657					$	668,743

									Three Months Ended																		Year Ended
($ in thousands)									December 31, 2024						September 30, 2024						December 31, 2023						December 31, 2024						December 31, 2023
Unfunded Credit Facilities
Allowance for unfunded credit commitments, beginning of period (1)									$	39,062					$	38,783					$	33,589					$	37,698					$	26,264
Provision for credit losses on unfunded credit commitments			(b)						457						283						4,110						1,824						11,429
Foreign currency translation adjustment									7						(4)						—						4						6
Allowance for unfunded credit commitments, end of period (1)									$	39,526					$	39,062					$	37,699					$	39,526					$	37,699
Provision for credit losses			(a)+(b)						$	70,000					$	42,000					$	37,000					$	174,000					$	125,000

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

17

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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									December 31, 2024						September 30, 2024						December 31, 2023
Special mention loans									$	447,290					$	468,593					$	404,241
Classified loans									725,863						641,642						573,969
Total criticized loans (1)									$	1,173,153					$	1,110,235					$	978,210

(1)Excludes loans HFS.

Nonperforming Assets									December 31, 2024						September 30, 2024						December 31, 2023
Nonaccrual loans:
Commercial:
			C&I						$	86,165					$	75,272					$	37,036
			Total CRE						18,318						19,175						27,918
Consumer:
			Total residential mortgage						54,469						52,311						37,788
			Other consumer						66						102						132
			Total nonaccrual loans						159,018						146,860						102,874
Other real estate owned, net									35,077						41,248						11,141
Other nonperforming assets									—						7,358						—
			Total nonperforming assets						$	194,095					$	195,466					$	114,015
Credit Quality Ratios									December 31, 2024						September 30, 2024						December 31, 2023
Annualized quarterly net charge-offs to average loans HFI									0.48		%				0.22		%				0.15		%
Annual net charge-offs to average loans HFI									0.26		%				N/A						0.09		%
Special mention loans to loans HFI									0.83		%				0.88		%				0.77		%
Classified loans to loans HFI									1.35		%				1.20		%				1.10		%
Criticized loans to loans HFI									2.18		%				2.08		%				1.87		%
Nonperforming assets to total assets									0.26		%				0.26		%				0.16		%
Nonaccrual loans to loans HFI									0.30		%				0.28		%				0.20		%
Allowance for loan losses to loans HFI									1.31		%				1.31		%				1.28		%

Composition of Allowance (“ALLL”) by Portfolio									December 31, 2024												September 30, 2024												December 31, 2023
Loan Category									ALLL						ALLL/ Loans HFI						ALLL						ALLL/ Loans HFI						ALLL						ALLL/ Loans HFI
			C&I						$	384,319					2.21		%				$	378,315					2.22		%				$	392,685					2.37		%
			Total CRE						268,291						1.32						265,234						1.30						215,436						1.05
			Multifamily						32,117						0.65						31,782						0.62						34,375						0.68
			Office						68,015						3.20						66,614						3.11						55,252						2.43
			All other CRE						168,159						1.27						166,838						1.27						125,809						0.96
			Residential mortgage & consumer						49,442						0.31						52,936						0.34						60,622						0.40
Total loans									$	702,052					1.31		%				$	696,485					1.31		%				$	668,743					1.28		%

18

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EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
($ in thousands)
(unaudited)
Table 12
												Three Months Ended																		Year Ended
												December 31, 2024						September 30, 2024						December 31, 2023						December 31, 2024						December 31, 2023
Net interest income before provision for credit losses						(a)						$	587,626					$	572,722					$	574,834					$	2,278,716					$	2,312,254
Fully taxable equivalent (“FTE”) adjustment						(b)						1,276						411						440						4,767						1,728
FTE net interest income before provision for credit losses						(c)=(a)+(b)						588,902						573,133						575,274						2,283,483						2,313,982
Total noninterest income						(d)						88,166						84,395						79,903						335,218						295,264
Total revenue						(e)=(a)+(d)						675,792						657,117						654,737						2,613,934						2,607,518
Total revenue (FTE)						(f)=(c)+(d)						$	677,068					$	657,528					$	655,177					$	2,618,701					$	2,609,246
Total noninterest expense						(g)						$	249,968					$	225,800					$	290,498					$	958,073					$	1,022,748
Efficiency ratio						(g)/(f)						36.92		%				34.34		%				44.34		%				36.59		%				39.20		%
Pre-tax, pre-provision income						(f)-(g)						$	427,100					$	431,728					$	364,679					$	1,660,628					$	1,586,498

The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. ▪During the second, third and fourth quarters of 2024, the Company recorded $3 million, $11 million, and $343 thousand, 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 $3 million, $2 million, and $4 million in pre-tax DC solar recoveries in the first, second, and fourth quarters of 2023, respectively. ▪During the first and second quarters of 2024, the Company recorded $10 million and $2 million, respectively, in pre-tax FDIC special assessment charges, and a $3 million FDIC special assessment reversal during the fourth quarter of 2024 (included in Deposit insurance premiums and regulatory assessments on the Condensed Consolidated Statement of Income). During the fourth quarter of 2023, the Company recorded $70 million in pre-tax FDIC special assessment charges. ▪During the first and fourth quarters of 2023, the Company recorded a $10 million pre-tax impairment write-off and a $3 million pre-tax gain on the sale of the same AFS debt security (included in Net gains on AFS debt securities on the Condensed Consolidated Statement of Income), respectively. ▪During the first quarter of 2023, the Company recorded $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																		Year Ended
												December 31, 2024						September 30, 2024						December 31, 2023						December 31, 2024						December 31, 2023
Net income												$	293,115					$	299,166					$	238,953					$	1,165,586					$	1,161,161
Less/Add: FDIC special assessment (reversal) charge												(3,385)						—						69,986						8,800						69,986
Less/Add: Net gain/loss on AFS debt security												—						—						(3,138)						—						6,862
Less: DC Solar recovery												(343)						(11,201)						(3,648)						(14,690)						(9,218)
Add: Repurchase agreements’ extinguishment cost												—						—						—						—						3,872
Tax effect of adjustments (1)												1,109						3,311						(18,682)						1,751						(21,136)
Adjusted net income												$	290,496					$	291,276					$	283,471					$	1,161,447					$	1,211,527
Diluted weighted-average number of shares outstanding												139,883						139,648						141,409						139,958						141,902
Diluted EPS												$	2.10					$	2.14					$	1.69					$	8.33					$	8.18
Less/Add: FDIC special assessment (reversal) charge												(0.03)						—						0.49						0.06						0.49
Less/Add: Net gain/loss on AFS debt security												—						—						(0.02)						—						0.05
Less: DC Solar recovery												—						(0.08)						(0.03)						(0.10)						(0.06)
Add: Repurchase agreements’ extinguishment cost												—						—						—						—						0.03
Tax effect of adjustments (1)												0.01						0.03						(0.13)						0.01						(0.15)
Adjusted diluted EPS												$	2.08					$	2.09					$	2.00					$	8.30					$	8.54

(1)Applied statutory tax rate of 29.73% for the three and twelve months ended December 31, 2024. Applied statutory tax rate of 29.56% for the three months ended September 30, 2024, and for the three and twelve months ended December 31, 2023.

19

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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.
												December 31, 2024						September 30, 2024						December 31, 2023
Common Stock												170						170						169
Additional paid-in capital												2,030,712						2,018,105						1,980,818
Retained earnings												7,311,542						7,095,587						6,465,230
Treasury stock												(1,034,110)						(1,012,019)						(874,787)
Accumulated other comprehensive income:
AFS debt securities net unrealized losses												(542,152)						(456,493)						(601,881)
Cash flow hedges net unrealized (losses) gains												(20,787)						39,143						2,624
Foreign currency translation adjustments												(22,321)						(19,954)						(21,339)
Total accumulated other comprehensive loss												(585,260)						(437,304)						(620,596)
Stockholders’ equity						(a)						$	7,723,054					$	7,664,539					$	6,950,834
Less: Goodwill												(465,697)						(465,697)						(465,697)
Other intangible assets (1)												(5,234)						(5,563)						(6,602)
Tangible book value						(b)						$	7,252,123					$	7,193,279					$	6,478,535
Number of common shares at period-end						(c)						138,437						138,609						140,027
Book value per share						(a)/(c)						$	55.79					$	55.30					$	49.64
Tangible book value per share						(b)/(c)						$	52.39					$	51.90					$	46.27
Total assets						(d)						$	75,976,475					$	74,483,720					$	69,612,884
Less: Goodwill												(465,697)						(465,697)						(465,697)
Other intangible assets (1)												(5,234)						(5,563)						(6,602)
Tangible assets						(e)						$	75,505,544					$	74,012,460					$	69,140,585
Total stockholders’ equity to assets ratio						(a)/(d)						10.17		%				10.29		%				9.98		%
TCE ratio						(b)/(e)						9.60		%				9.72		%				9.37		%

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																		Year Ended
												December 31, 2024						September 30, 2024						December 31, 2023						December 31, 2024						December 31, 2023
Net income						(f)						$	293,115					$	299,166					$	238,953					$	1,165,586					$	1,161,161
Add: Amortization of core deposit intangibles												—						—						441						—						1,763
Amortization of mortgage servicing assets												334						348						302						1,322						1,328
Tax effect of amortization adjustments (2)												(99)						(103)						(220)						(393)						(914)
Tangible net income						(g)						$	293,350					$	299,411					$	239,476					$	1,166,515					$	1,163,338
Average stockholders’ equity						(h)						$	7,731,324					$	7,443,333					$	6,695,852					$	7,315,174					$	6,482,985
Less: Average goodwill												(465,697)						(465,697)						(465,697)						(465,697)						(465,697)
Average other intangible assets (1)												(5,445)						(5,790)						(5,434)						(5,953)						(6,542)
Average tangible book value						(i)						$	7,260,182					$	6,971,846					$	6,224,721					$	6,843,524					$	6,010,746
Return on average common equity						(f)/(h)						15.08		%	(3)			15.99		%	(3)			14.16		%	(3)			15.93		%				17.91		%
Return on average TCE						(g)/(i)						16.07		%	(3)			17.08		%	(3)			15.26		%	(3)			17.05		%				19.35		%

(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 29.73% for the three and twelve months ended December 31, 2024. Applied statutory tax rate of 29.56% for the three months ended September 30, 2024, and for the three and twelve months ended December 31, 2023.

(3)Annualized.

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