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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K


CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)
October 22, 2024

EAST WEST BANCORP, INC.
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation)

000-24939
(Commission File Number)

95-4703316
(IRS Employer Identification No.)

135 North Los Robles Ave., 7th Floor, Pasadena, California 91101
(Address of principal executive offices) (Zip code)

(626) 768-6000
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: 
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareEWBCThe Nasdaq Global Select Market

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

Emerging growth company ☐

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



Item 2.02. Results of Operations and Financial Condition

On October 22, 2024, East West Bancorp, Inc. (the “Company”) announced its financial results for the quarter ended September 30, 2024. A copy of the Company’s press release (the “Press Release”) is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference in this Item 2.02. The Press Release is “furnished” pursuant to General Instruction B.2 of Form 8-K and the information provided in Item 2.02 of this report, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of such Section. The information provided in Item 2.02 of this report, including Exhibit 99.1, shall not be deemed incorporated by reference into any filings the Company has made or may make under the Securities Act of 1933 (the “Securities Act”) or the Exchange Act, except as otherwise expressly stated in such filing.

Item 7.01. Regulation FD Disclosure

On October 22, 2024, the Company will hold a conference call to discuss its financial results for the quarter ended September 30, 2024 and other matters relating to the Company. The Company has also made available on its website, www.eastwestbank.com, presentation materials containing certain historical and forward-looking information relating to the Company (the “Presentation Materials”). The Presentation Materials are furnished as Exhibit 99.2 and are incorporated by reference in this Item 7.01. All information in Exhibit 99.2 is presented as of the particular date or dates referenced therein, and the Company does not undertake any obligation to, and disclaims any duty to, update any of the information provided. The information provided in Item 7.01 of this report, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of such Section, nor shall such information be deemed incorporated by reference into any filings the Company has made or may make under the Securities Act or the Exchange Act, except as otherwise expressly stated in such filing.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits
Press Release, dated October 22, 2024.
Presentation Materials, dated October 22, 2024.
104Cover Page Interactive Data (formatted in Inline XBRL).


2




SIGNATURE

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


 EAST WEST BANCORP, INC.
  
Date: October 22, 2024By:/s/ Christopher J. Del Moral-Niles 
Christopher J. Del Moral-Niles
  Executive Vice President and Chief Financial Officer


3




ewbc_logo-err011624.jpg
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.comE: 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, 2024June 30, 2024$%
Revenue$657$638$193%
Pre-tax, Pre-provision Income2
432402307
Net Income299288114
Diluted Earnings per Share$2.14$2.06$0.084
Book Value per Share$55.30$52.06$3.246
Tangible Book Value per Share1
$51.90$48.65$3.257%
Return on Average Common Equity15.99%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$2,0163%


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 billion as 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 was up 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 ratio15.39%15.05%14.74%
CET1 capital ratio14.08%13.74%13.30%
Tier 1 capital ratio14.08%13.74%13.30%
Leverage ratio10.40%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, 2024June 30, 2024September 30, 2023Qtr-o-QtrYr-o-Yr
Assets   
Cash and cash equivalents, and deposits with banks
$4,976,174$4,390,221$4,578,39113.3 %8.7 %
 Securities purchased under resale agreements (“resale agreements”)425,000485,000785,000(12.4)(45.9)
 
Available-for-sale (“AFS”) debt securities (amortized cost of $10,667,293, $9,644,377 and $6,976,331)
10,133,8778,923,5286,039,83713.6 67.8 
Held-to-maturity (“HTM”) debt securities, at amortized cost (fair value of $2,510,352, $2,405,227 and $2,308,048)
2,928,3992,938,2502,964,235(0.3)(1.2)
Total cash, resale agreements and debt securities
18,463,45016,736,99914,367,46310.3 28.5 
 Loans held-for-sale (“HFS”)—18,9094,762(100.0)(100.0)
 
Loans held-for-investment (“HFI”) (net of allowance for loan losses of $696,485, $683,794 and $655,523)
52,556,69652,084,11550,251,6610.9 4.6 
Affordable housing partnership, tax credit and Community Reinvestment Act (“CRA”) investments, net924,439956,428901,559(3.3)2.5 
 Goodwill465,697465,697465,697— — 
Operating lease right-of-use assets82,77581,94197,7821.0 (15.3)
 Other assets 1,990,6632,124,1832,200,534(6.3)(9.5)
 Total assets $74,483,720$72,468,272$68,289,4582.8 %9.1 %
Liabilities and Stockholders’ Equity   
 Deposits$61,700,115$59,999,785$55,087,0312.8 %12.0 %
Bank Term Funding Program (“BTFP”) borrowings——4,500,000— (100.0)
Federal Home Loan Bank (“FHLB”) advances3,500,0003,500,000— — 100.0 
 Long-term debt and finance lease liabilities36,05536,141153,087(0.2)(76.4)
Operating lease liabilities 90,36989,644107,6950.8 (16.1)
 Accrued expenses and other liabilities1,492,6421,627,5881,844,939(8.3)(19.1)
 Total liabilities66,819,18165,253,15861,692,7522.4 8.3 
 Stockholders’ equity7,664,5397,215,1146,596,7066.2 16.2 
 Total liabilities and stockholders’ equity $74,483,720$72,468,272$68,289,4582.8 %9.1 %
Total cash, resale agreements and debt securities/total assets
24.79%23.10%21.04%169 bps375 bps
 Book value per share $55.30$52.06$46.626.2 %18.6 %
 
Tangible book value (1) per share
$51.90$48.65$43.296.7 19.9 
 Number of common shares at period-end138,609138,604141,4860.0 %(2.0)%
Total stockholders’ equity to assets ratio10.29 %9.96 %9.66 %33 bps63 bps
Tangible common equity (“TCE”) ratio (1)
9.72 %9.37 %9.03 %35 bps69 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, 2024June 30, 2024September 30, 2023Qtr-o-QtrYr-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”):
 CRE14,568,209 14,562,595 14,667,378 0.0 (0.7)
 Multifamily residential5,141,481 5,100,210 4,900,097 0.8 4.9 
 Construction and land693,775 664,793 798,190 4.4 (13.1)
Total CRE20,403,465 20,327,598 20,365,665 0.4 0.2 
Consumer:
Residential mortgage:
 Single-family residential13,963,097 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 mortgage15,723,813 15,509,148 14,613,223 1.4 7.6 
Other consumer57,901 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 checking8,052,720 7,758,081 7,689,289 3.8 4.7 
 Money market14,021,042 13,775,908 12,613,827 1.8 11.2 
 Savings1,718,378 1,772,368 1,963,766 (3.0)(12.5)
 Time deposits23,217,111 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, 2024June 30, 2024September 30, 2023Qtr-o-QtrYr-o-Yr
Interest and dividend income$1,075,899 $1,034,414 $961,787 4.0%11.9%
Interest expense503,177 481,185 390,974 4.628.7
Net interest income before provision for credit losses572,722 553,229 570,813 3.50.3
Provision for credit losses42,000 37,000 42,000 13.5—
Net interest income after provision for credit losses530,722 516,229 528,813 2.8%0.4%
Noninterest income:
Deposit account fees26,815 25,649 23,560 4.5%13.8%
 Lending fees26,453 24,340 20,312 8.730.2
 Foreign exchange income13,569 12,924 11,396 5.019.1
 Wealth management fees10,683 9,478 5,922 12.780.4
Customer derivative income
3,774 4,230 5,894 (10.8)(36.0)
Total fee income81,294 76,621 67,084 6.121.2
Derivative mark-to-market and credit valuation adjustments
(4,480)1,534 5,314 NMNM
 Net gains (losses) on sales of loans21 56 (12)(62.5)NM
 Net gains on AFS debt securities145 1,785 — (91.9)100.0
Other investment income2,800 586 1,751 377.859.9
Other income4,981 4,091 2,615 21.890.5
Total noninterest income84,761 84,673 76,752 0.1%10.4%
Noninterest expense:  
 Compensation and employee benefits135,464 133,588 123,153 1.4%10.0%
 Occupancy and equipment expense16,238 15,031 15,353 8.05.8
Deposit account expense12,229 12,050 11,585 1.55.6
Computer and software related expenses11,436 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 expense36,021 37,613 31,885 (4.2)13.0
Total operating noninterest expense
220,566 220,382 202,320 0.19.0
Amortization of tax credit and CRA investments (2)
5,600 16,052 49,694 (65.1)(88.7)
Total noninterest expense226,166 236,434 252,014 (4.3)(10.3)
Income before income taxes 389,317 364,468 353,551 6.810.1
Income tax expense90,151 76,238 65,813 18.237.0
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 3.95.8
Weighted-average number of shares outstanding
- Basic138,606 138,980 141,485 (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, 2024September 30, 2023Yr-o-Yr
Interest and dividend income$3,133,930 $2,703,427 15.9%
Interest expense1,442,840 966,007 49.4
Net interest income before provision for credit losses1,691,090 1,737,420 (2.7)
Provision for credit losses104,000 88,000 18.2
Net interest income after provision for credit losses1,587,090 1,649,420 (3.8)%
Noninterest income:
Deposit account fees77,412 69,983 10.6%
Lending fees73,718 61,799 19.3
Foreign exchange income37,962 34,872 8.9
Wealth management fees28,798 19,213 49.9
Customer derivative income11,141 16,919 (34.2)
Total fee income229,031 202,786 12.9
Derivative mark-to-market and credit valuation adjustments
(2,333)4,226 NM
Net gains (losses) on sales of loans36 (41)NM
Net gains (losses) on AFS debt securities (1)
1,979 (10,000)NM
Other investment income6,201 7,675 (19.2)
Other income13,508 10,715 26.1
Total noninterest income248,422 215,361 15.4%
Noninterest expense
 Compensation and employee benefits410,864 377,744 8.8%
 Occupancy and equipment expense46,499 47,028 (1.1)
Deposit account expense36,467 31,753 14.8
Computer and software related expenses34,172 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 expense674,616 616,532 9.4
Amortization of tax credit and CRA investments (4)
34,859 115,718 (69.9)
Total noninterest expense709,475 732,250 (3.1)
Income before income taxes 1,126,037 1,132,531 (0.6)
Income tax expense253,566 210,323 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
- Basic138,997 141,356 (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, 2024June 30, 2024September 30, 2023Qtr-o-QtrYr-o-YrSeptember 30, 2024September 30, 2023Yr-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:
 CRE14,483,163 14,561,886 14,453,014 (0.5)0.2 14,589,772 14,174,100 2.9
 Multifamily residential5,127,659 5,039,249 4,798,360 1.8 6.9 5,066,906 4,695,473 7.9
 Construction and land661,840 669,681 807,906 (1.2)(18.1)662,173 755,651 (12.4)
Total CRE20,272,662 20,270,816 20,059,280 0.0 1.1 20,318,851 19,625,224 3.5
Consumer:
Residential mortgage:
 Single-family residential13,846,946 13,636,389 12,548,593 1.5 10.3 13,654,170 11,997,671 13.8
 HELOCs1,754,361 1,750,469 1,816,900 0.2 (3.4)1,743,413 1,931,105 (9.7)
Total residential mortgage15,601,307 15,386,858 14,365,493 1.4 8.6 15,397,583 13,928,776 10.5
Other consumer53,958 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 checking7,762,719 7,467,801 8,080,025 3.9 (3.9)7,642,423 7,675,325 (0.4)
Money market14,201,258 13,724,230 12,180,806 3.5 16.6 13,855,167 11,295,157 22.7
Savings1,744,644 1,795,242 2,013,246 (2.8)(13.3)1,783,011 2,215,102 (19.5)
Time deposits22,270,124 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, 2024June 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 agreements443,261 1,663 1.49 %485,000 1,885 1.56 %
Debt securities:
 AFS debt securities9,316,232 111,552 4.76 %8,481,948 99,242 4.71 %
HTM debt securities2,931,033 12,431 1.69 %2,941,150 12,490 1.71 %
Total debt securities12,247,265 123,983 4.03 %11,423,098 111,732 3.93 %
Loans:
C&I16,492,589 328,619 7.93 %16,209,659 322,648 8.01 %
CRE20,272,662 328,254 6.44 %20,270,816 323,106 6.41 %
Residential mortgage15,601,307 229,727 5.86 %15,386,858 221,966 5.80 %
Other consumer53,958 753 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 stock165,262 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 banks341,856 468,374   
 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 deposits14,201,258 136,384 3.82 %13,724,230 135,405 3.97 %
 Savings deposits1,744,644 4,811 1.10 %1,795,242 5,004 1.12 %
 Time deposits22,270,124 254,650 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 purchased1,170 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 advances3,440,219 48,261 5.58 %3,500,001 48,840 5.61 %
 Long-term debt and finance lease liabilities36,084 780 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 deposits14,606,511 14,664,789 
 Accrued expenses and other liabilities1,758,641 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, 2024September 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 securities9,316,232 111,552 4.76 %6,074,119 57,177 3.73 %
HTM debt securities2,931,033 12,431 1.69 %2,967,703 12,601 1.68 %
Total debt securities12,247,265 123,983 4.03 %9,041,822 69,778 3.06 %
Loans:
C&I16,492,589 328,619 7.93 %15,400,172 306,542 7.90 %
CRE20,272,662 328,254 6.44 %20,059,280 317,416 6.28 %
Residential mortgage15,601,307 229,727 5.86 %14,365,493 193,913 5.36 %
Other consumer53,958 753 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 stock165,262 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 banks341,856 544,939   
 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 purchased1,170 16 5.44 %4,501,327 49,575 4.37 %
Repurchase agreements3,455 49 5.64 %13,897 193 5.51 %
 FHLB advances3,440,219 48,261 5.58 %1 — 0.00 %
 Long-term debt and finance lease liabilities36,084 780 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 liabilities1,758,641 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, 2024September 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 securities8,125,876 273,652 4.50 %6,146,653 166,666 3.63 %
HTM debt securities2,940,920 37,455 1.70 %2,982,284 38,013 1.70 %
Total debt securities11,066,796 311,107 3.76 %9,128,937 204,679 3.00 %
Loans:
C&I16,318,594 977,077 8.00 %15,348,662 869,914 7.58 %
CRE20,318,851 975,447 6.41 %19,625,224 900,601 6.14 %
Residential mortgage15,397,583 667,367 5.79 %13,928,776 545,442 5.24 %
Other consumer54,233 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 stock141,051 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 banks332,983 578,144   
 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 deposits13,855,167 406,450 3.92 %11,295,157 275,738 3.26 %
 Savings deposits1,783,011 13,935 1.04 %2,215,102 11,679 0.70 %
 Time deposits20,886,769 706,640 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 purchased1,284,826 42,154 4.38 %3,284,663 107,432 4.37 %
 FHLB advances2,501,826 104,840 5.60 %164,836 6,430 5.22 %
 Repurchase agreements3,370 142 5.63 %45,080 1,456 4.32 %
Long-term debt and finance lease liabilities65,969 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 deposits14,741,590 17,633,922 
 Accrued expenses and other liabilities2,109,318 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-QtrYr-o-Yr
 Return on average assets1.62 %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 spread2.04 %2.04 %2.31 %— (27)
 Net interest margin3.24 %3.27 %3.48 %(3)(24)
Average loan yield6.73 %6.73 %6.51 %— 22 
 Yield on average interest-earning assets6.09 %6.11 %5.87 %(2)22 
Average cost of interest-bearing deposits3.93 %3.94 %3.45 %(1)48 
 Average cost of deposits2.98 %2.96 %2.43 %2 55 
 Average cost of funds3.12 %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 assets1.62 %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 spread2.07 %2.53 %(46)
Net interest margin3.28 %3.66 %(38)
Average loan yield6.72 %6.33 %39 
Yield on average interest-earning assets6.08 %5.69 %39 
Average cost of interest-bearing deposits3.91 %3.03 %88 
Average cost of deposits2.93 %2.06 %87 
Average cost of funds3.07 %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-QtrYr-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
CommercialConsumer
CREResidential Mortgage
($ in thousands)C&ICREMultifamily ResidentialConstruction and LandSingle-Family ResidentialHELOCsOther ConsumerTotal
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 recoveries838 61 21 6 1 8 — 935 
Total net (charge-offs) recoveries(28,422)(673)21 (139)1 (2)(149)(29,363)
Foreign currency translation adjustment337 — — — — — — 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
CommercialConsumer
CREResidential Mortgage
($ in thousands)C&ICREMultifamily ResidentialConstruction and LandSingle-Family ResidentialHELOCsOther ConsumerTotal
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 recoveries1,817 150 208 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
CommercialConsumer
CREResidential Mortgage
($ in thousands)C&ICREMultifamily ResidentialConstruction and LandSingle-Family ResidentialHELOCsOther ConsumerTotal
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 recoveries2,279 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 adjustment133 — — — — — — 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
CommercialConsumer
CREResidential Mortgage
($ in thousands)C&ICREMultifamily ResidentialConstruction and LandSingle-Family ResidentialHELOCsOther ConsumerTotal
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 recoveries4,365 345 246 200 8 65 — 5,229 
Total net (charge-offs) recoveries(59,027)(13,890)240 (2,089)(27)55 (337)(75,075)
Foreign currency translation adjustment184 — — — — — — 184 
Allowance for loan losses, September 30, 2024$378,315 $221,244 $31,782 $12,208 $48,231 $3,210 $1,495 $696,485 
Nine Months Ended September 30, 2023
CommercialConsumer
CREResidential Mortgage
($ in thousands)C&ICREMultifamily ResidentialConstruction and LandSingle-Family ResidentialHELOCsOther ConsumerTotal
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 adoption5,683 337 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 recoveries5,555 364 480 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 EndedNine 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 LoansSeptember 30, 2024June 30, 2024September 30, 2023
Special mention loans$468,593 $435,679 $483,428 
Classified loans641,642 644,564 538,258 
Total criticized loans (1)
$1,110,235 $1,080,243 $1,021,686 
(1)Excludes loans HFS.

Nonperforming Assets
September 30, 2024June 30, 2024September 30, 2023
Nonaccrual loans:
Commercial:
C&I$75,272 $66,960 $49,147 
Total CRE19,175 47,203 16,431 
Consumer:
Total residential mortgage52,311 51,514 37,986 
Other consumer102 205 136 
Total nonaccrual loans146,860 165,882 103,700 
Other real estate owned, net41,248 30,400 — 
Other nonperforming assets
7,358 — — 
Total nonperforming assets$195,466 $196,282 $103,700 
Credit Quality RatiosSeptember 30, 2024June 30, 2024September 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 HFI0.88 %0.83 %0.95 %
Classified loans to loans HFI1.20 %1.22 %1.06 %
Criticized loans to loans HFI2.08 %2.05 %2.01 %
Nonperforming assets to total assets0.26 %0.27 %0.15 %
Nonaccrual loans to loans HFI0.28 %0.31 %0.20 %
Allowance for loan losses to loans HFI1.31 %1.30 %1.29 %

Composition of Allowance (“ALLL”) by PortfolioSeptember 30, 2024June 30, 2024September 30, 2023
Loan CategoryALLLALLL/
Loans HFI		ALLLALLL/
Loans HFI		ALLLALLL/
Loans HFI
C&I$378,315 2.22 %$379,984 2.25 %$383,677 2.42 %
Total CRE265,234 1.30 249,370 1.23 211,418 1.04 
Multifamily31,782 0.62 40,254 0.79 24,162 0.49 
Office66,614 3.11 67,772 3.10 52,596 2.30 
All other CRE166,838 1.27 141,344 1.08 134,660 1.02 
Residential mortgage & consumer52,936 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 EndedNine Months Ended
September 30, 2024June 30, 2024September 30, 2023September 30, 2024September 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 EndedNine Months Ended
September 30, 2024June 30, 2024September 30, 2023September 30, 2024September 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 outstanding139,648 139,801 142,122 139,939 142,044 
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, 2024June 30, 2024September 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 EndedNine Months Ended
September 30, 2024June 30, 2024September 30, 2023September 30, 2024September 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 assets348 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
East West Bancorp, Inc. 3Q Earnings Presentation October 22, 2024 3Q 24

 
Forward-Looking Statements and Additional Information 2 Forward-Looking Statements This presentation contains forward-looking statements that are intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of the management of East West Bancorp, Inc. (the “Company”) and are subject to significant risks and uncertainties. You should not place undue reliance on these statements. There are various important factors that could cause the Company’s future results to differ materially from historical performance and any forward-looking statements, including the factors described in the Company’s third quarter 2024 earnings release, as well as those factors contained in the Company’s filings with the Securities and Exchange Commission, including the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and in its subsequent Quarterly Reports on Form 10-Q. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make. These statements speak only as of the date they are made and are based only on information then actually known to the Company. The Company does not undertake to update any forward-looking statements except as required by law. Basis of Presentation The preparation of the Company’s consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements, income and expenses during the reporting periods, and the related disclosures. Although our estimates consider current conditions and how we expect them to change in the future, it is reasonably possible that actual results could be materially different from those estimates. Hence, the current period’s results of operations are not necessarily indicative of results that may be expected for any future interim period or for the year as a whole. Certain prior period information have been reclassified to conform to the current presentation. Non-GAAP Financial Measures Certain financial information in this presentation has not been prepared in accordance with GAAP and is presented on a non-GAAP basis. Investors should refer to the reconciliations included in this presentation and should consider the Company’s non-GAAP measures in addition to, not as a substitute for or superior to, measures prepared in accordance with GAAP. These measures may not be comparable to similarly titled measures used by other companies.

 
Financial Highlights 3 (1) See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s earnings press releases ▪ 1.62% Return on Average Assets (ROAA) ▪ 16.2% ROACE (17.4% ROTCE1) YTD ▪ Book value per share of $55.30, up $3.24 Q-o-Q, including AOCI accretion impact ▪ TBVPS1 growth: +7% Q-o-Q, +20% Y-o-Y ▪ YTD declared dividends of $2.20 3Q24 $299 million net income available to common equity, $2.14 diluted earnings per share ▪ Grew average loans +1% Q-o-Q − Growth driven by C&I production, consistent residential mortgage origination ▪ Grew average deposits +3% Q-o-Q − Continued growth from time, money market, interest-bearing checking ▪ NII up 4% Q-o-Q − Increased income from loans and securities, reduced average cost of interest-bearing deposits ▪ Record quarterly fee income of $81mm − Notable strength in lending, wealth management, deposit account fees ▪ Nonperforming assets at 26bps ▪ Stable credit: Criticized loans at 2.08%, classified loans down 2bps to 1.20% ▪ ALLL at 1.31% ▪ Net charge-offs of 22bps Balanced Loan & Deposit Growth Growing NII, Fee Income Strong, Stable Asset Quality Creating Shareholder Value

 
C&I Loans 4 Consistent growth in our categories of focus, with YTD growth of 2% ($ in billions) Average Loans End of Period Loan Growth (2Q24 to 3Q24) ($ in millions) +1% -1% +2% Q-o-Q +1% +2% +$485mm CRE (ex. Multifamily)Residential mortgage & other consumer Multifamily 15.3 15.5 15.4 15.3 15.1 4.8 4.9 5.0 5.0 5.1 14.4 14.9 15.2 15.4 15.7 15.4 16.0 16.3 16.2 16.5 $49.9 $51.3 $51.9 $51.9 $52.4 3Q23 4Q23 1Q24 2Q24 3Q24 $35 $41 $193 $216 CRE (ex. Multifamily) Multifamily C&I Residential mortgage & other consumer

 
$(69) $148 $625 $996 Greater China Commercial Banking - U.S. Treasury - (Wholesale, Brokered) Consumer and Business Banking - U.S. Deposits 5 Fifth consecutive quarter of $1 billion+ customer deposit growth ($ in billions) Average Deposits End of Period Deposit Growth by Segment (2Q24 to 3Q24) ($ in millions) +3% +3% - Q-o-Q +3% +6% (1) Includes wholesale, public funds, and brokered deposits as reported in Other segment, generally managed by the Company’s Treasury department (2) Includes primarily deposits from the Commercial Banking segment at the Bank’s Hong Kong branch and East West Bank (China) Limited 1 Noninterest-bearing DemandTime IB Checking & SavingsMMDA +$1.7bn 16.3 15.9 15.0 14.7 14.6 10.1 9.5 9.5 9.3 9.5 12.2 12.8 13.6 13.7 14.2 16.6 17.2 19.3 21.0 22.3 $55.2 $55.4 $57.4 $58.7 $60.6 3Q23 4Q23 1Q24 2Q24 3Q24 2

 
58% 36% 1% 5% 0% RWA 1%‒20% RWA 21%‒50% RWA 51%‒100% RWA ($ in billions) Cash and Securities 6 Enhanced liquidity while supporting earnings with high-quality liquid assets ▪ Securities portfolio well-positioned as a source of liquidity, interest rate risk management, and earnings support − 94% of investment portfolio 0% – 20% risk-weighted (HQLA) − Added a net $1.2bn of securities in Q3, primarily short-duration Ginnie Mae floaters (HQLA) − Avg. securities yield up 10bps Q-o-Q − $217mm AOCI improvement Q-o-Q − 56% fixed-rate securities, 44% floating HighlightsAverage Total Securities Portfolio and Cash Securities Portfolio Composition by Risk-Weighted Asset (RWA) Distribution (as of 09.30.24) $9.7 $9.7 $10.2 $11.9 $12.7 $5.4 $4.5 $5.9 $4.1 $5.0 $15.1 $14.2 $16.1 $16.0 $17.7 3.06% 3.17% 3.19% 3.93% 4.03% 3Q23 4Q23 1Q24 2Q24 3Q24 Total Securities & Resale Agreements Cash & Equivalent Total Securities Average Yield $13.1bn Securities Portfolio ▪ Includes $6bn+ of Ginnie Mae floating- rate securities

 
$571 $575 $565 $553 $573 3.48% 3.48% 3.34% 3.27% 3.24% 3Q23 4Q23 1Q24 2Q24 3Q24 NII NIM Net Interest Income & Net Interest Margin 7 Growing dollar NII while reducing average interest-bearing cost Q-o-Q ▪ Reduced average time, money market, and savings deposit cost Q-o-Q − Aggressively reduced CD pricing, with specials now at 4.28%, down from 5% ▪ Expect to continue reducing pricing in concert with Fed actions HighlightsNet Interest Income (NII) & Net Interest Margin (NIM) ($ in millions) Active Deposit Cost Management 2.94% 3.92% 2.84% 3.73% Cost of deposits Cost of interest-bearing deposits 06.30.24 09.30.24 Period End Deposit Cost

 
Fee Income 8 Record total quarterly fee income, driven by deepening customer relationships and consistent sales execution ▪ Fee income1 of $81mm, up over $4mm, or +6% from $77mm − Lending Fee growth (+$2mm) driven by greater syndication activity − Deposit Account Fee growth (+$1mm) driven by increased transaction activity and balances − Wealth Management Fee growth (+$1mm) reflects higher customer activity Highlights (1) Fee income excludes mark-to-market adjustments related to customer and other derivatives; net gains (losses) on sales of loans; net gains on AFS debt securities; other investment income and other income Wealth Management Fees Customer Derivative Income Fee Income1 ($ in millions) +9% +13% -11% Q-o-Q +6% +5% +5% Deposit Account Fees Lending Fees Foreign Exchange Income vs. Prior Quarter 6 6 3 4 4 6 8 9 10 11 11 13 11 13 13 20 22 23 24 26 24 24 25 26 27 $67 $73 $71 $77 $81 3Q23 4Q23 1Q24 2Q24 3Q24

 
3.61% 3.14% 1.07% 0.46% 2.85% 3.13% 1.03% 0.46% 2.92% 2.99% 1.45% 0.51% $42 $37 $25 $37 $42 $18 $20 $23 $23 $29 3Q23 4Q23 1Q24 2Q24 3Q24 Provision for credit losses Net charge- offs Asset Quality Metrics 9 Trends remained strong – NCOs normalizing as expected Provision for Credit Losses & Net Charge-offs ($ in millions) Non-Performing Assets Criticized Loans / Loans HFI Criticized Ratio by Loans HFI Portfolio ($ in millions) NCO ratio (ann.) 0.14% 0.15% 0.17% 0.18% 0.22% 1.06% 1.10% 1.25% 1.22% 1.20% 0.95% 0.77% 1.05% 0.83% 0.88% 2.01% 1.87% 2.30% 2.05% 2.08% 09.30.23 12.31.23 03.31.24 06.30.24 09.30.24 Classified loans / Loans HFI Special mention loans / Loans HFI NPA / Total assets 0.15% 0.16% 0.23% 0.27% 0.26% 49 37 49 67 75 39 38 47 52 5211 23 47 42 14 11 17 30 49 5 5 5 5 5 $104 $114 $165 $196 $195 09.30.23 12.31.23 03.31.24 06.30.24 09.30.24 Multifamily OREO and Other CRE (ex. MFR) Resi. mortgage & consumer C&I C&I CRE (ex Multifamily) Multifamily Resi. mortgage & consumer (2024)

 
10 Allowance for Loan Losses Continued to bolster CRE reserves Allowance for Loan Losses (ALLL) ($ in millions) 09.30.23 06.30.24 09.30.24 Loan Category ALLL ALLL/Loans HFI ALLL ALLL/Loans HFI ALLL ALLL/Loans HFI C&I $ 384 2.42% $ 380 2.25% $ 378 2.22% Total CRE 211 1.04 249 1.23 265 1.30 Multifamily 24 0.49 40 0.79 32 0.62 Office 52 2.30 68 3.10 66 3.11 All Other CRE 135 1.02 141 1.08 167 1.27 Resi. mortgage & consumer 61 0.41 55 0.35 53 0.34 Total Loans $ 656 1.29% $ 684 1.30% $ 696 1.31% Composition of ALLL by Portfolio ($ in millions) $656 $669 $670 $684 $696 1.29% 1.28% 1.29% 1.30% 1.31% 09.30.23 12.31.23 03.31.24 06.30.24 09.30.24 ALLL ALLL/Loans HFI

 
9.0% 9.4% 9.3% 9.4% 9.7% Tangible Common Equity Ratio 14.7% 14.8% 14.8% 15.1% 15.4% Total Capital Ratio 10.2% 10.2% 10.1% 10.4% 10.4% Leverage Ratio Highlights 09.30.23 06.30.2403.31.24 11 Capital Healthy capital position, with TCE1 benefiting from Accumulated Other Comprehensive Income (AOCI) earnback ▪ Strong capital − 6bps of capital accretion from net retained earnings, 29bps from AOCI improvement ▪ Declared 4Q24 dividend ‒ Payable on November 15, 2024 to shareholders of record on November 4, 2024 ▪ Capacity for share repurchase ‒ $49 million of East West’s share repurchase authorization remains available; we remain opportunistic Regulatory well capitalized requirement (1) See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s earnings press releases (2) The Company has elected to use the 2020 CECL transition provision in the calculation of its regulatory capital ratios. The Company’s September 30, 2024 regulatory capital ratios are preliminary Tangible Common Equity Ratio1 Regulatory Capital Ratios2 6.5% 5.0% 10.0% 12.31.23 09.30.242 13.3% 13.3% 13.5% 13.7% 14.1% CET1 Ratio 9.4% 0.29% Q-o-Q impact from AOCI improvement

 
Unchanged Management Outlook: Full Year 2024 12 Earnings Drivers YTD FY 2024 Expectations vs. FY 2023 Results Economic and Interest Rate Outlook ▪ Assuming September 30th forward curve End of Period Loans +2% ▪ Growing in the range of 2% to 4% Y-o-Y Net Interest Income -3% ▪ NII to decline 2% to 4% Y-o-Y Adjusted Noninterest Expense1 +7% ▪ Up 6% to 8% Y-o-Y, driven primarily by compensation and benefits expense and technology investment Net Charge-offs 19bps ▪ NCOs of 15bps to 25bps Effective Tax Rate 22.5% ▪ FY2024 effective tax rate: 21% to 23% Tax Credit Amortization Expense $35mm ▪ FY2024 tax credit amortization expense: $45 to $55 million Best-in-Class Efficiency Top Quartile Returns FY 2024 Expectation (1) Total operating noninterest expense excluding FDIC Special Assessment Charges

 
Appendix 13

 
East West at a Glance 14 $11B Market Cap $74B Assets $62B Deposits 17% ROTCE1 09.30.24 09.30.24 09.30.24 3Q24 4 branches in Asia to support cross-border business Branch Locations 98 U.S. branches in leading metropolitan markets (1) See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s earnings press releases Loan Production / Representative Offices ▪ Headquartered in Pasadena, California ▪ 25 years on Nasdaq ▪ Founded in 1973 - over 50 years in operation Roots in the U.S. Asian-American immigrant community, expanded to connect businesses between the U.S. and Asia Award-winning Company #1 Top Performing Bank, $50+ Billion (Bank Director) America’s Best Banks (Forbes)

 
Resi. Mortgage and other consumer $15.8 30% CRE $20.4 38% C&I $17.1 32% 1% 2% 1% 4% 5% 7% 8% 10% 2% 2% 2% 4% 4% 4% 6% Industries with 1% of total loans outstanding1 Commercial Loan Portfolio 15 Over 70% of EWBC’s loans support commercial customers, with diversification across industry and asset type CRE $20.4bn C&I $17.1bn (as % of Total Portfolio Loans, 09.30.24) Commercial Loans by Type Total Loan Portfolio $53.3bn (1) Industries with 1% of total loans outstanding: Art Finance, Consumer Finance, Food Production & Distribution, Equipment Finance, Healthcare Services, Hospitality & Leisure, Oil & Gas, Tech & Telecom Capital Call Lending Media & Entertainment Real Estate Investment & Mgmt. Manufacturing & Wholesale General Industrial Multifamily Retail Hotel Office Healthcare All other CRE Construction and Land Financial Services Infrastructure & Clean Energy

 
<=50% 47% >50% to 55% 16% >55% to 60% 15% >60% to 65% 13% >65% to 70% 6% >70% 3% Commercial Real Estate Portfolio Detail 16 (1) Weighted average LTV is based on most recent LTV, using most recent available appraisal and current loan commitment (2) Construction & Land average size based on total commitment 50% Average LTV1 Low LTVs and granular, many loans have full recourse and personal guarantees Distribution by LTV1 Size and LTV by Property Type (as of 09.30.24) (as of 09.30.24) ▪ Fewer than 25% of CRE loans have an LTV over 60% Total Portfolio Size ($bn) Weighted Avg. LTV1 (%) Average Loan Size ($mm) Multifamily $5.1 51% $2 Retail 4.3 48 3 Industrial 3.9 46 3 Hotel 2.5 52 9 Office 2.1 53 4 Healthcare 0.7 51 4 Other 1.1 50 4 Construction & Land2 0.7 50 12 Total CRE $20.4 50% $3

 
37% 6% 13% 7% 7% 3% 4% 4% 6% 7% CRE Office – Additional Information 17 CRE Office: Geographic Mix by Metro Area CRE Office by Size Segment Other Los Angeles County Other SoCal Other Bay Area San Francisco Other CA, 1% Houston Dallas Manhattan, 1% Other TX Washington Other Regions New Jersey, 3% Other NY, 1% Downtown Los Angeles and Adjacent Neighborhoods (as of 09.30.24) (as of 09.30.24) Low LTVs across different size segments, low average loan size Loan Size Balance ($ in mm) No. of Loans Avg. Loan Size ($ in mm) LTV >$30mm $245 6 $41 68% $20mm - $30mm 450 18 25 55 $10mm - $20mm 491 34 14 56 $5mm - $10mm 437 60 7 52 <$5mm 519 401 1 44 Total $2,142 519 $4 53%

 
29% 4% 17% 9% 2% 5% 6% 1% 2% 3% 6% 3% 12% CRE Retail – Additional Information 18 Other Los Angeles County Downtown Los Angeles and Adjacent Neighborhoods Other SoCal Other Bay Area San Francisco Other CA Houston Dallas Manhattan Other TX Washington Other Regions Other NY Low LTVs across different size segments, low average loan size CRE Retail: Geographic Mix by Metro Area CRE Retail by Size Segment (as of 09.30.24) (as of 09.30.24) New Jersey, 1% Loan Size Balance ($ in mm) No. of Loans Avg. Loan Size ($ in mm) LTV >$30mm $299 8 $37 47% $20mm - $30mm 447 18 25 56 $10mm - $20mm 746 55 14 49 $5mm - $10mm 782 113 7 48 <$5mm 2,000 1,482 1 45 Total $4,274 1,676 $3 48%

 
CRE Multifamily – Additional Information 19 Other Los Angeles County Downtown Los Angeles and Adjacent Neighborhoods Other SoCal Other Bay Area San Francisco Other CA Houston Dallas Manhattan Other TX, 1% Washington Other Regions Other NY Low LTV portfolio, low average loan size CRE Multifamily by Size Segment (as of 09.30.24) (as of 09.30.24) Loan Size Balance ($ in mm) No. of Loans Avg. Loan Size ($ in mm) LTV >$30mm $712 19 $37 57% $20mm - $30mm 701 29 24 56 $10mm - $20mm 610 45 14 54 $5mm - $10mm 710 103 7 54 <$5mm 2,408 2,621 <1 46 Total $5,141 2,817 $2 51% CRE Multifamily : Geographic Mix by Metro Area Arizona Nevada Oklahoma 30% 3% 13% 8% 6% 7% 6% 2% 3% 2% 3% 3% 4% 3% 6%

 
<=50% 48% >50% to 55% 12% >55% to 60% 29% >60% 11% Southern California 40% Northern California 16% New York 26% Washington 7% Texas 2% Other 9% Residential Mortgage Portfolio 20 51% Average LTV1 Low LTVs and average loan size (as of 09.30.24) Resi. Mortgage Distribution by LTV1 (as of 09.30.24) $437,000 Average loan size2 (1) Combined LTV for 1st and 2nd liens; based on commitment (2) Average loan size based on loan outstanding for single-family residential and commitment for HELOC (3) Geographic distribution based on commitment size Portfolio Highlights as of 09.30.24 Outstandings ▪ $15.7bn loans outstanding ▪ +1% Q-o-Q and +8% Y-o-Y Originations ▪ $0.7bn in 3Q24 ▪ Primarily originated through East West Bank branches Single-family Residential ▪ $14.0bn loans outstanding ▪ +2% Q-o-Q and +9% Y-o-Y HELOC ▪ $1.8bn loans outstanding ▪ $3.5bn in undisbursed commitments ▪ 33% utilization, down 1% from 06.30.24 ▪ 77% of commitments in first lien position Resi. Mortgage Distribution by Geography3

 
21% 21% 29% 24% 5%Fixed rate Hybrid in fixed rate period Variable - LIBOR + SOFR Variable - Prime rate Variable - all other rates Loan Yields 21 Hedge Impact and Outlook Loan Portfolio by Index Rate Average Loan Rate by Portfolio (as of 09.30.24) Total fixed rate and hybrid in fixed period: 42% 56%* variable rate SFR: 45% hybrid in fixed-rate period & 40% fixed rate 3Q23 4Q23 1Q24 2Q24 3Q24 10.15.24 rate sheet price for 30-year fixed: 7.125%*48% had customer-level interest rate derivative contracts 90% variable rate 7.90% 7.99% 8.06% 8.01% 7.93% C&I 6.28% 6.36% 6.39% 6.41% 6.44% CRE 5.36% 5.49% 5.71% 5.80% 5.86% Residential Mortgage ▪ $24mm impact to NII of cash flow hedges (14bps to NIM) ▪ $1bn of active cash flow hedges to roll off in 1Q25, which are negative carry ▪ $1bn forward starting hedges to come on in 2H25, with a blended receive-fixed rate of ~4%

 
Deposit and Funding Cost 22 Average Deposit and Liability Cost Average Deposit Rate by Portfolio 3Q23 4Q23 1Q24 2Q24 3Q24 2.43% 2.60% 2.84% 2.96% 2.98% 3.45% 3.64% 3.85% 3.94% 3.93% 3.56% 3.73% 3.92% 4.07% 4.05% 3Q23 4Q23 1Q24 2Q24 3Q24 Average cost of deposits Average cost of interest-bearing deposits Average cost of interest-bearing liabilities 2.67% 2.72% 2.81% 2.84% 2.98% Interest-bearing Checking 3.69% 3.83% 3.97% 3.97% 3.82% Money Market 3.98% 4.22% 4.44% 4.56% 4.55% Time

 
38.9% 37.0% 34.4% 1.16% 1.25% 1.20% 3Q23 2Q24 3Q24 Operating Expense & Efficiency 23 Best-in-class efficiency Total Operating Noninterest Expense1 ($ in millions) ▪ Total operating noninterest expense of $221mm, consistent with prior quarter − Deposit-related Expense decline (-$2mm), reflecting FDIC Special Assessment-related expense in Q2 (1) Total noninterest expense excluding amortization of tax credit and CRA investments (2) Deposit-related expenses include FDIC special deposit insurance assessment charge of $70 million, $10 million, and $2 million for 4Q23, 1Q24, and 2Q24, respectively (3) See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s earnings press releases Highlights Efficiency Ratio3 and Operating Noninterest Expense/Average Assets Ratio Efficiency Noninterest Expense / Avg. Assets Compensation and Employee Benefits All Other Deposit-related Expenses Occupancy and Equipment Computer Software and Data Processing vs. Prior Quarter 2 12 11 11 11 12 15 16 15 15 16 20 90 32 23 21 32 38 34 37 36 123 131 142 134 136 $202 $286 $234 $220 $221 3Q23 4Q23 1Q24 2Q24 3Q24

 
Appendix: GAAP to Non-GAAP Reconciliation 24 EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) 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 loan loss (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

 
Appendix: GAAP to Non-GAAP Reconciliation 25 EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. 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. (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 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) Includes core deposit intangibles and mortgage servicing assets. There were no core deposit intangibles in the 2024 periods presented Appendix: GAAP to Non-GAAP Reconciliation 26 EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible book value, tangible book value per share and TCE ratio are non- GAAP financial measures. Tangible book value and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and 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%

 
Appendix: GAAP to Non-GAAP Reconciliation 27 EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Return on average TCE represents tangible net income divided by average tangible book value. 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. (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 (2) Includes core deposit intangibles and mortgage servicing assets. There were no core deposit intangibles in the 2024 periods presented (3) Annualized 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 (1) (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 (2) (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%

 
v3.24.3
Cover Page
Oct. 22, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 22, 2024
Entity Registrant Name EAST WEST BANCORP, INC.
Entity Central Index Key 0001069157
Amendment Flag false
Entity Incorporation, State or Country Code DE
Entity File Number 000-24939
Entity Tax Identification Number 95-4703316
Entity Address, Address Line One 135 North Los Robles Ave.
Entity Address, Address Line Two 7th Floor
Entity Address, City or Town Pasadena
Entity Address, State or Province CA
Entity Address, Postal Zip Code 91101
City Area Code 626
Local Phone Number 768-6000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.001 per share
Trading Symbol EWBC
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
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