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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)
July 23, 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 July 23, 2024, East West Bancorp, Inc. (the “Company”) announced its financial results for the quarter ended June 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 July 23, 2024, the Company will hold a conference call to discuss its financial results for the quarter ended June 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 July 23, 2024.
Presentation Materials, dated July 23, 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: July 23, 2024By:/s/ Christopher J. Del Moral-Niles 
Christopher J. Del Moral-Niles
  Executive Vice President and Chief Financial Officer


3




ewbc_logo-err011624a.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.com
E: adrienne.atkinson@eastwestbank.com

EAST WEST BANCORP REPORTS NET INCOME FOR SECOND QUARTER OF 2024
OF $288 MILLION AND DILUTED EARNINGS PER SHARE OF $2.06

Pasadena, California – July 23, 2024 – East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, reported its financial results for the second quarter of 2024. Second quarter 2024 net income was $288 million, or $2.06 per diluted share. Return on average assets was 1.63%, return on average common equity was 16.4%, and return on average tangible common equity1 was 17.5%. Book value per share grew 3% quarter-over-quarter and 14% year-over-year.

“The strength of East West’s diversified business model continued to deliver for our shareholders in the second quarter,” said Dominic Ng, Chairman and Chief Executive Officer. “Total loans and deposits each grew by 2% quarter-over-quarter, complemented by record fee income which grew 8%. We strategically grew loans in C&I and residential mortgage, and experienced solid growth in business and consumer deposit balances. East West posted growth in all fee categories quarter-over-quarter, with notable continued strength in foreign exchange income and wealth management.”

“Our net charge-offs remained broadly stable quarter-over-quarter at 0.18% of average loans, while criticized loans decreased 10%,” continued Ng. “We are confident that our diversified lending approach and disciplined underwriting and monitoring standards will serve us well through the cycle. East West continues to operate from a position of capital strength and remains committed to delivering top-tier shareholder returns.”

“East West was selected again as the best performing bank above $50 billion in assets by Bank Director, marking our second consecutive year and third title in the past four years,” stated Ng. “This recognition is a testament to the steady execution of our colleagues and underscores our industry-leading profitability and conservatively managed balance sheet.”

FINANCIAL HIGHLIGHTS
Three Months Ended
Quarter-over-Quarter Change
($ in millions, except per share data)June 30, 2024March 31, 2024$%
Revenue$638$644$(6)(1)%
Pre-tax, Pre-provision Income2
40139741
Net Income28828531
Diluted Earnings per Share$2.06$2.03$0.031
Book Value per Share$52.06$50.48$1.583
Tangible Book Value per Share1
$48.65$47.09$1.563%
Return on Average Common Equity16.36%16.40%-4 bps—
Return on Average Tangible Common Equity1
17.54%17.60%-6 bps—
Tangible Common Equity Ratio1
9.37%9.31%6 bps—
Total Assets$72,468$70,876$1,5922%
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 $72.5 billion as of June 30, 2024, an increase of $1.6 billion from $70.9 billion as of March 31, 2024, primarily reflecting increases of $0.8 billion in loans and $0.5 billion in available-for-sale (“AFS”) debt securities. Year-over-year, total assets grew $3.9 billion, or 6%, from $68.5 billion as of June 30, 2023.

Second quarter 2024 average interest-earning assets remained stable compared with the first quarter at $68.1 billion, reflecting a $1.9 billion increase in average AFS debt securities holdings offset by a $1.8 billion decrease in average cash and deposits with banks.

•Loans – Total loans were $52.8 billion as of June 30, 2024, an increase of $0.8 billion from $52.0 billion as of March 31, 2024. Year-over-year, total loans were up $3.0 billion, or 6%, from $49.8 billion as of June 30, 2023.

Second quarter 2024 average loans remained stable compared with the first quarter at $51.9 billion.

•Deposits – Total deposits were $60.0 billion as of June 30, 2024, an increase of $1.4 billion, or 2%, from $58.6 billion as of March 31, 2024, reflecting growth across all customer groups. Noninterest-bearing deposits made up 25% of total deposits as of June 30, 2024, remaining broadly stable quarter-over-quarter. Year-over-year, total deposits increased $4.3 billion from $55.7 billion as of June 30, 2023.

Second quarter 2024 average deposits of $58.7 billion increased $1.2 billion from the first quarter of 2024, with growth in average time and money market deposits offset by declines in other categories.

•Capital – As of June 30, 2024, stockholders’ equity was $7.2 billion, up 3% quarter-over-quarter. The stockholders’ equity to assets ratio was 9.96% as of June 30, 2024, compared with 9.91% as of March 31, 2024.

Book value per share was $52.06 as of June 30, 2024, up 3% quarter-over-quarter and 14% year-over-year. As of June 30, 2024, tangible book value per share3 was $48.65, up 3% quarter-over-quarter and 15% year-over-year. The tangible common equity ratio3 was 9.37%, compared with 9.31% as of March 31, 2024.

All of 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 13.74%, and the total risk-based capital ratio increased by 21 basis points to 15.05% as of June 30, 2024.

OPERATING RESULTS

Second Quarter Earnings – Second quarter 2024 net income was $288 million or $2.06 per diluted share, both up 1% quarter-over-quarter. Pre-tax, pre-provision income totaled $401 million in the second quarter, an increase of 1% from $397 million in the first quarter of 2024.

Second Quarter 2024 Compared to First Quarter 2024

Net Interest Income and Net Interest Margin

Net interest income totaled $553 million in the second quarter, a decrease of 2% from $565 million in the first quarter of 2024. Net interest margin (“NIM”) was 3.27%, a 7 basis point decline from the first quarter.
•NIM declined primarily due to a higher cost of interest-bearing deposits and continued deposit mix shift, partly offset by higher asset yields.
•The average loan yield was 6.73%, up 2 basis points from the first quarter. The average interest-earning asset yield was 6.11%, up 7 basis points from the first quarter.
•The average cost of funds was 3.11%, up 14 basis points from the first quarter. The average cost of deposits was 2.96%, up 12 basis points from the first quarter.

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

Noninterest Income

Noninterest income totaled $85 million in the second quarter, an increase of $6 million, or 7%, from $79 million in the first quarter. Net gains on AFS debt securities were $2 million in the second quarter. Mark-to-market and credit valuation adjustments on customer and other derivatives was a gain of $2 million in the second quarter, compared with a gain of $1 million in the first quarter. Other investment income decreased $2 million quarter-over-quarter, reflecting lower income from Community Reinvestment Act (“CRA”) and other investments in the second quarter.
•Fee income4 of $77 million was up $6 million, or 8%, from $71 million in the first quarter.
•Every fee business category increased by approximately $1 million in the second quarter, primarily reflecting higher customer activity.

Noninterest Expense

Noninterest expense totaled $236 million in the second quarter, a decrease of over $10 million, or 4%, from $247 million in the first quarter. Noninterest expense included $2 million of Federal Deposit Insurance Corporation (“FDIC”) Special Assessment-related expense5 (the “FDIC charge”) in the second quarter and $10 million for the FDIC charge in the first quarter. Second quarter noninterest expense consisted of $219 million of adjusted noninterest expense6, and $16 million in amortization expenses related to tax credit and CRA investments.
•Adjusted noninterest expense of $219 million decreased nearly $5 million, or 2%, from $223 million in the first quarter.
•Compensation and employee benefits was $134 million, a decrease of $8 million, or 6%, largely due to higher seasonal costs in the first quarter.
•Other operating expense was $38 million, an increase of $4 million, or 12%, primarily reflecting a valuation write-down on other real estate owned.
•Amortization of tax credit and CRA investments was $16 million in the second quarter, up $3 million from the first quarter.
•The efficiency ratio was 37.1% in the second quarter, compared with 38.3% in the first quarter, and the adjusted efficiency ratio6 was 34.3% in the second quarter, compared with 34.7% in the first quarter.

TAX RELATED ITEMS
Second quarter 2024 income tax expense was $76 million, and the effective tax rate was 20.9%, compared with income tax expense of $87 million and an effective tax rate of 23.4% for the first quarter of 2024. The lower effective tax rate in the second quarter was primarily due to greater tax credit investment benefits.

ASSET QUALITY

As of June 30, 2024, the credit quality of our loan portfolio remained strong.
•The criticized loans ratio decreased 25 basis points quarter-over-quarter to 2.05% of loans held-for-investment (“HFI”) as of June 30, 2024, compared with 2.30% as of March 31, 2024. Criticized loans decreased $115 million quarter-over-quarter to $1.1 billion as of June 30, 2024. The special mention loans ratio decreased 22 basis points quarter-over-quarter to 0.83% of loans HFI as of June 30, 2024, compared with 1.05% as of March 31, 2024, and the classified loans ratio decreased 3 basis points to 1.22%.
•Nonperforming assets increased $31 million to $196 million as of June 30, 2024, from $165 million as of March 31, 2024. The nonperforming assets ratio was 0.27% of total assets as of June 30, 2024, compared with 0.23% of total assets as of March 31, 2024. The quarter-over-quarter changes reflect increases related to C&I loans, residential mortgage loans, and other real estate owned.
•Second quarter 2024 net charge-offs were $23 million, or annualized 0.18% of average loans HFI, compared with $23 million, or annualized 0.17% of average loans HFI, for the first quarter of 2024.
•The allowance for loan losses increased to $684 million, or 1.30% of loans HFI, as of June 30, 2024, compared with $670 million, or 1.29% of loans HFI, as of March 31, 2024.
•Second quarter 2024 provision for credit losses was $37 million, compared with $25 million in the first quarter of 2024.
4 Fee income includes deposit account and lending fees, foreign exchange income, wealth management fees, and customer derivative revenue. Refer to Table 3 for additional fee and noninterest income information.
5 In November 2023, the FDIC approved a final rule to implement a special deposit insurance assessment to recover estimated losses to the Deposit Insurance Fund arising from the protection of uninsured depositors following the receiverships of failed institutions in the spring of 2023. In March 2024, the FDIC updated the loss estimate to $22.5 billion. As losses to the DIF are estimates, the FDIC may periodically adjust the amount, resulting in longer or shorter assessment periods, and/or additional special assessments.
6 Adjusted noninterest expense and adjusted efficiency ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 12.
3


CAPITAL STRENGTH

Capital levels for East West remained strong as of June 30, 2024. The following table presents capital metrics as of June 30, 2024, March 31, 2024 and June 30, 2023.

EWBC Capital
($ in millions)
June 30, 2024 (a)
March 31, 2024 (a)
June 30, 2023 (a)
Risk-Weighted Assets (“RWA”) (b)
$53,967$53,448$51,696
Risk-based capital ratios:
Total capital ratio15.05%14.84%14.60%
CET1 capital ratio13.74%13.53%13.17%
Tier 1 capital ratio13.74%13.53%13.17%
Leverage ratio10.36%10.05%10.03%
Tangible common equity ratio (c)
9.37%9.31%8.80%
(a)The Company has elected to use the 2020 Current Expected Credit Losses (CECL) transition provision in the calculation of its June 30, 2024, March 31, 2024 and June 30, 2023 regulatory capital ratios. The Company’s June 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 third quarter 2024 dividends for the Company’s common stock. The common stock cash dividend of $0.55 per share is payable on August 16, 2024 to shareholders of record as of August 2, 2024.

East West repurchased approximately 560 thousand shares of common stock during the second quarter of 2024 for $41 million. $49 million of East West’s share repurchase authorization remains available.

Conference Call
East West will host a conference call to discuss second quarter 2024 earnings with the public on Tuesday, July 23, 2024, at 2:00 p.m. PT/5:00 p.m. ET. The public and investment community are invited to listen as management discusses second 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 $72.5 billion as of June 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.

4

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   
June 30, 2024
% or Basis Point Change
 June 30, 2024March 31, 2024June 30, 2023Qtr-o-QtrYr-o-Yr
Assets   
Cash and cash equivalents$4,365,691$4,210,801$6,377,8873.7 %(31.5)%
 Interest-bearing deposits with banks24,53024,59317,169(0.3)42.9 
 Securities purchased under resale agreements (“resale agreements”)485,000485,000635,000— (23.6)
 
Available-for-sale (“AFS”) debt securities (amortized cost of $9,644,377, $9,131,953 and $6,820,569)
8,923,5288,400,4685,987,2586.2 49.0 
Held-to-maturity (“HTM”) debt securities, at amortized cost (fair value of $2,405,227, $2,414,478 and $2,440,484)
2,938,2502,948,6422,975,933(0.4)(1.3)
 Loans held-for-sale (“HFS”)18,90913,2802,83042.4 568.2 
 
Loans held-for-investment (“HFI”) (net of allowance for loan losses of $683,794, $670,280 and $635,400)
52,084,11551,322,22449,192,9641.5 5.9 
Affordable housing partnership, tax credit and Community Reinvestment Act (“CRA”) investments, net
956,428933,187815,4712.5 17.3 
 Goodwill465,697465,697465,697— — 
Operating lease right-of-use assets81,94187,535100,500(6.4)(18.5)
 Other assets 2,124,1831,984,2431,961,9727.1 8.3 
 Total assets $72,468,272$70,875,670$68,532,6812.2 %5.7 %
Liabilities and Stockholders’ Equity   
 Deposits$59,999,785$58,560,624$55,658,7862.5 %7.8 %
Short-term borrowings—19,173— (100.0)— 
Bank Term Funding Program (“BTFP”) borrowings——4,500,000— (100.0)
Federal Home Loan Bank (“FHLB”) advances
3,500,0003,500,000— — 100.0 
 Long-term debt and finance lease liabilities36,14136,428152,951(0.8)(76.4)
Operating lease liabilities 89,64495,643110,383(6.3)(18.8)
 Accrued expenses and other liabilities1,627,5881,640,5701,648,864(0.8)(1.3)
 Total liabilities65,253,15863,852,43862,070,9842.2 5.1 
 Stockholders’ equity7,215,1147,023,2326,461,6972.7 11.7 
 Total liabilities and stockholders’ equity $72,468,272$70,875,670$68,532,6812.2 %5.7 %
 Book value per share $52.06$50.48$45.673.1 %14.0 %
 
Tangible book value (1) per share
$48.65$47.09$42.333.3 14.9 
 Number of common shares at period-end138,604139,121141,484(0.4)(2.0)
Total stockholders’ equity to assets ratio9.96 %9.91 %9.43 %5 bps53 bps
Tangible common equity (“TCE”) ratio (1)
9.37 %9.31 %8.80 %6 bps57 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
June 30, 2024
% Change
  June 30, 2024March 31, 2024June 30, 2023Qtr-o-QtrYr-o-Yr
Loans:   
Commercial:
Commercial and industrial (“C&I”)$16,875,009 $16,350,191 $15,670,084 3.2 %7.7 %
Commercial real estate (“CRE”):
 
CRE
14,562,595 14,609,655 14,373,385 (0.3)1.3 
 
Multifamily residential
5,100,210 5,010,245 4,764,180 1.8 7.1 
 
Construction and land
664,793 673,939 781,068 (1.4)(14.9)
Total CRE
20,327,598 20,293,839 19,918,633 0.2 2.1 
Consumer:
Residential mortgage:
 
Single-family residential
13,747,769 13,563,738 12,308,613 1.4 11.7 
 
Home equity lines of credit (“HELOCs”)1,761,379 1,731,233 1,862,928 1.7 (5.5)
Total residential mortgage
15,509,148 15,294,971 14,171,541 1.4 9.4 
Other consumer
56,154 53,503 68,106 5.0 (17.5)
Total loans HFI (1)
52,767,909 

51,992,504 

49,828,364 1.5 5.9 
Loans HFS
18,909 13,280 2,830 42.4 568.2 
 
Total loans (1)
52,786,818 52,005,784 49,831,194 1.5 5.9 
Allowance for loan losses(683,794)(670,280)(635,400)2.0 7.6 
 
Net loans (1)
$52,103,024 $51,335,504 $49,195,794 1.5 %5.9 %
Deposits:
   
 
Noninterest-bearing demand
$14,922,741 $14,798,927 $16,741,099 0.8 %(10.9)%
 
Interest-bearing checking
7,758,081 7,570,427 8,348,587 2.5 (7.1)
 
Money market
13,775,908 13,585,597 11,486,473 1.4 19.9 
 
Savings
1,772,368 1,834,393 2,102,850 (3.4)(15.7)
 
Time deposits
21,770,687 20,771,280 16,979,777 4.8 28.2 
 
Total deposits
$59,999,785 $58,560,624 $55,658,786 2.5 %7.8 %
Deposits by type:
Commercial and business banking
$33,572,624 $32,690,771 $31,240,428 2.7 %7.5 %
Consumer and private banking
21,236,669 20,543,473 17,960,113 3.4 18.2 
Greater China (2)
3,376,971 3,282,218 2,833,531 2.9 19.2 
Wholesale1,813,521 2,044,162 3,624,714 (11.3)(50.0)
Total deposits
$59,999,785 $58,560,624 $55,658,786 2.5 %7.8 %
Loan-to-deposit ratio
88 %89 %90 %(1.1)%(2.2)%
(1)Includes $53 million, $63 million and $74 million of net deferred loan fees and net unamortized premiums as of June 30, 2024, March 31, 2024 and June 30, 2023, respectively.
(2)Includes deposits at the Bank’s Hong Kong branch and foreign subsidiary, East West Bank (China) Limited.

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
June 30, 2024
% Change
June 30, 2024March 31, 2024June 30, 2023Qtr-o-QtrYr-o-Yr
Interest and dividend income$1,034,414 $1,023,617 $906,134 1.1%14.2%
Interest expense
481,185 458,478 339,388 5.041.8
Net interest income before provision for credit losses553,229 565,139 566,746 (2.1)(2.4)
Provision for credit losses37,000 25,000 26,000 48.042.3
Net interest income after provision for credit losses516,229 540,139 540,746 (4.4)(4.5)
Noninterest income:
Deposit account fees25,649 24,948 23,369 2.8%9.8%
 Lending fees24,340 22,925 20,901 6.216.5
 Foreign exchange income12,924 11,469 12,167 12.76.2
 Wealth management fees9,478 8,637 6,944 9.736.5
Customer derivative revenue4,230 3,137 5,979 34.8(29.3)
Total fee income76,621 71,116 69,360 7.710.5
Mark-to-market and credit valuation adjustments
1,534 613 1,394 150.210.0
 
Net gains (losses) on sales of loans
56 (41)(7)NMNM
 
Net gains on AFS debt securities
1,785 49 — NM100.0
Other investment income586 2,815 4,003 (79.2)(85.4)
Other income4,091 4,436 3,881 (7.8)5.4
Total noninterest income84,673 78,988 78,631 7.2%7.7%
Noninterest expense:  
 
Compensation and employee benefits133,588 141,812 124,937 (5.8)%6.9%
 
Occupancy and equipment expense15,031 15,230 16,088 (1.3)(6.6)
 
Deposit insurance premiums and regulatory assessments10,708 19,649 8,262 (45.5)29.6
Deposit account expense12,050 12,188 10,559 (1.1)14.1
Computer software and data processing expenses11,392 11,344 10,692 0.46.5
 
Other operating expense37,613 33,445 35,337 12.56.4
Amortization of tax credit and CRA investments16,052 13,207 55,914 21.5(71.3)
Total noninterest expense236,434 246,875 261,789 (4.2)%(9.7)%
Income before income taxes
364,468 372,252 357,588 (2.1)1.9
Income tax expense
76,238 87,177 45,557 (12.5)67.3
Net income
$288,230 $285,075 $312,031 1.1%(7.6)%
Earnings per share (“EPS”)
   
- Basic
$2.07 $2.04 $2.21 1.4%(6.0)%
- Diluted
$2.06 $2.03 $2.20 1.4(6.3)
Weighted-average number of shares outstanding
- Basic
138,980 139,409 141,468 (0.3)%(1.8)%
- Diluted
139,801 140,261 141,876 (0.3)(1.5)
NM - Not meaningful.

8

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
($ and shares in thousands, except per share data)
(unaudited)
Table 4
 Six Months Ended
June 30, 2024
% Change
  June 30, 2024June 30, 2023Yr-o-Yr
Interest and dividend income$2,058,031 $1,741,640 18.2%
Interest expense
939,663 575,033 63.4
Net interest income before provision for credit losses1,118,368 1,166,607 (4.1)
Provision for credit losses62,000 46,000 34.8
Net interest income after provision for credit losses1,056,368 1,120,607 (5.7)
Noninterest income:
Deposit account fees50,597 46,423 9.0%
Lending fees47,265 41,487 13.9
Foreign exchange income24,393 23,476 3.9
Wealth management fees18,115 13,291 36.3
Customer derivative income7,367 11,025 (33.2)
Total fee income147,737 135,702 8.9
Mark-to-market and credit valuation adjustments2,147 (1,088)NM
Net gains (losses) on sales of loans
15 (29)NM
Net gains (losses) on AFS debt securities
1,834 (10,000)NM
Other investment income3,401 5,924 (42.6)
Other income8,527 8,100 5.3
Total noninterest income163,661 138,609 18.1%
Noninterest expense
 
Compensation and employee benefits275,400 254,591 8.2%
 
Occupancy and equipment expense30,261 31,675 (4.5)
 
Deposit insurance premiums and regulatory assessments30,357 16,172 87.7
Deposit account expense24,238 20,168 20.2
Computer software and data processing expenses22,736 21,399 6.2
 
Other operating expense (1)
71,058 70,207 1.2
Amortization of tax credit and CRA investments29,259 66,024 (55.7)
Total noninterest expense483,309 480,236 0.6%
Income before income taxes
736,720 778,980 (5.4)
Income tax expense
163,415 144,510 13.1
Net income
$573,305 $634,470 (9.6)%
EPS  
- Basic
$4.12 $4.49 (8.3)%
- Diluted
$4.09 $4.47 (8.4)
Weighted-average number of shares outstanding
- Basic
139,195 141,291 (1.5)%
- Diluted
140,047 141,910 (1.3)
NM - Not meaningful.
(1)Includes $4 million of repurchase agreements’ extinguishment cost for the six months ended June 30, 2023.
9

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED AVERAGE BALANCES
($ in thousands)
(unaudited)
Table 5
Three Months Ended
June 30, 2024
% Change
Six Months Ended
June 30, 2024
% Change
  June 30, 2024March 31, 2024June 30, 2023Qtr-o-QtrYr-o-YrJune 30, 2024June 30, 2023Yr-o-Yr
Loans:
     
Commercial:
 
C&I$16,209,659 $16,251,622 $15,244,826 (0.3)%6.3 %$16,230,641 $15,322,480 5.9 %
CRE:
 
CRE14,561,886 14,725,440 14,130,811 (1.1)3.1 14,643,663 14,032,331 4.4 
 
Multifamily residential5,039,249 5,033,143 4,685,786 0.1 7.5 5,036,196 4,643,177 8.5 
 
Construction and land669,681 655,001 782,541 2.2 (14.4)662,341 729,091 (9.2)
Total CRE
20,270,816 20,413,584 19,599,138 (0.7)3.4 20,342,200 19,404,599 4.8 
Consumer:
Residential mortgage:
 
Single-family residential13,636,389 13,477,057 12,014,513 1.2 13.5 13,556,723 11,717,644 15.7 
 
HELOCs
1,750,469 1,725,288 1,928,208 1.5 (9.2)1,737,878 1,989,154 (12.6)
Total residential mortgage15,386,858 15,202,345 13,942,721 1.2 10.4 15,294,601 13,706,798 11.6 
Other consumer
51,455 57,289 65,035 (10.2)(20.9)54,372 68,840 (21.0)
 
Total loans (1)
$51,918,788 $51,924,840 $48,851,720 0.0 %6.3 %$51,921,814 $48,502,717 7.0 %
Interest-earning assets
$68,050,050 $68,122,045 $64,061,569 (0.1)%6.2 %$68,086,048 $62,779,673 8.5 %
Total assets
$71,189,200 $71,678,396 $67,497,367 (0.7)%5.5 %$71,433,798 $66,312,070 7.7 %
Deposits:     
Noninterest-bearing demand
$14,664,789 $14,954,953 $16,926,937 (1.9)%(13.4)%$14,809,871 $18,310,770 (19.1)%
Interest-bearing checking
7,467,801 7,695,429 8,434,655 (3.0)(11.5)7,581,615 7,469,621 1.5 
Money market
13,724,230 13,636,210 10,433,839 0.6 31.5 13,680,220 10,844,992 26.1 
Savings
1,795,242 1,809,568 2,200,124 (0.8)(18.4)1,802,405 2,317,702 (22.2)
Time deposits
21,028,737 19,346,243 16,289,320 8.7 29.1 20,187,490 15,674,457 28.8 
Total deposits
$58,680,799 $57,442,403 $54,284,875 2.2 %8.1 %$58,061,601 $54,617,542 6.3 %
(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
 
 
June 30, 2024March 31, 2024
 
 
Average Average Average Average
 
 
BalanceInterest
Yield/Rate (1)
BalanceInterest
Yield/Rate (1)
Assets
      
Interest-earning assets:
      
 
Interest-bearing cash and deposits with banks
$4,058,515 $49,406 4.90 %$5,861,517 $74,382 5.10 %
 
Resale agreements485,000 1,885 1.56 %725,659 6,115 3.39 %
Debt securities:
 
AFS debt securities8,481,948 99,242 4.71 %6,566,368 62,858 3.85 %
HTM debt securities2,941,150 12,490 1.71 %2,950,686 12,534 1.71 %
Total debt securities
11,423,098 111,732 3.93 %9,517,054 75,392 3.19 %
Loans:
C&I
16,209,659 322,648 8.01 %16,251,622 325,810 8.06 %
CRE
20,270,816 323,106 6.41 %20,413,584 324,087 6.39 %
Residential mortgage
15,386,858 221,966 5.80 %15,202,345 215,674 5.71 %
Other consumer
51,455 721 5.64 %57,289 818 5.74 %
 
Total loans (2)
51,918,788 868,441 6.73 %51,924,840 866,389 6.71 %
 
FHLB and FRB stock
164,649 2,950 7.21 %92,975 1,339 5.79 %
 
Total interest-earning assets
$68,050,050 $1,034,414 6.11 %$68,122,045 $1,023,617 6.04 %
Noninterest-earning assets:
      
 
Cash and due from banks
468,374 445,767   
 
Allowance for loan losses(675,346)(679,116)  
 
Other assets
3,346,122 3,789,700   
 
Total assets
$71,189,200   $71,678,396   
Liabilities and Stockholders’ Equity     
Interest-bearing liabilities:
      
 
Checking deposits
$7,467,801 $52,680 2.84 %$7,695,429 $53,821 2.81 %
 
Money market deposits
13,724,230 135,405 3.97 %13,636,210 134,661 3.97 %
 
Savings deposits
1,795,242 5,004 1.12 %1,809,568 4,120 0.92 %
 
Time deposits
21,028,737 238,393 4.56 %19,346,243 213,597 4.44 %
 
BTFP, short-term borrowings and federal funds purchased
2,889 32 4.45 %3,864,525 42,106 4.38 %
Assets sold under repurchase agreements (“repurchase agreements”)4,104 58 5.68 %2,549 35 5.52 %
 
FHLB advances
3,500,001 48,840 5.61 %554,946 7,739 5.61 %
 
Long-term debt and finance lease liabilities
36,335 773 8.56 %125,818 2,399 7.67 %
 
Total interest-bearing liabilities
$47,559,339 $481,185 4.07 %$47,035,288 $458,478 3.92 %
Noninterest-bearing liabilities and stockholders’ equity:
    
 
Demand deposits
14,664,789 14,954,953 
 
Accrued expenses and other liabilities
1,877,572 2,695,597 
 
Stockholders’ equity
7,087,500 6,992,558 
 
Total liabilities and stockholders’ equity
$71,189,200 $71,678,396 
Interest rate spread
 2.04 %2.12 %
Net interest income and net interest margin $553,229 3.27 %$565,139 3.34 %
(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
June 30, 2024June 30, 2023
Average Average Average Average
BalanceInterest
Yield/Rate (1)
BalanceInterest
Yield/Rate (1)
Assets
      
Interest-earning assets:
      
 
Interest-bearing cash and deposits with banks
$4,058,515 $49,406 4.90 %$5,247,755 $60,995 4.66 %
 
Assets purchased under resale agreements (2)
485,000 1,885 1.56 %641,939 3,969 2.48 %
Debt securities:
 
AFS debt securities8,481,948 99,242 4.71 %6,257,397 56,292 3.61 %
HTM debt securities2,941,150 12,490 1.71 %2,983,780 12,678 1.70 %
Total debt securities
11,423,098 111,732 3.93 %9,241,177 68,970 2.99 %
Loans:
C&I
16,209,659 322,648 8.01 %15,244,826 287,799 7.57 %
CRE
20,270,816 323,106 6.41 %19,599,138 300,721 6.15 %
Residential mortgage
15,386,858 221,966 5.80 %13,942,721 182,035 5.24 %
Other consumer
51,455 721 5.64 %65,035 709 4.37 %
 
Total loans (3)
51,918,788 868,441 6.73 %48,851,720 771,264 6.33 %
 
FHLB and FRB stock
164,649 2,950 7.21 %78,978 936 4.75 %
 
Total interest-earning assets
$68,050,050 $1,034,414 6.11 %$64,061,569 $906,134 5.67 %
Noninterest-earning assets:
      
 
Cash and due from banks
468,374 569,227   
 
Allowance for loan losses(675,346)(619,868)  
 
Other assets
3,346,122 3,486,439   
 
Total assets
$71,189,200   $67,497,367   
Liabilities and Stockholders’ Equity
     
Interest-bearing liabilities:
      
 
Checking deposits
$7,467,801 $52,680 2.84 %$8,434,655 $49,571 2.36 %
 
Money market deposits
13,724,230 135,405 3.97 %10,433,839 86,419 3.32 %
 
Savings deposits
1,795,242 5,004 1.12 %2,200,124 3,963 0.72 %
 
Time deposits
21,028,737 238,393 4.56 %16,289,320 147,524 3.63 %
 
BTFP, short-term borrowings and federal funds purchased
2,889 32 4.45 %4,500,566 49,032 4.37 %
Repurchase agreements4,104 58 5.68 %15,579 211 5.43 %
 
FHLB advances
3,500,001 48,840 5.61 %1 — — %
 
Long-term debt and finance lease liabilities
36,335 773 8.56 %152,760 2,668 7.01 %
 
Total interest-bearing liabilities
$47,559,339 $481,185 4.07 %$42,026,844 $339,388 3.24 %
Noninterest-bearing liabilities and stockholders’ equity:
     
 
Demand deposits
14,664,789 16,926,937 
 
Accrued expenses and other liabilities
1,877,572 2,102,590 
 
Stockholders’ equity
7,087,500 6,440,996 
 
Total liabilities and stockholders’ equity
$71,189,200 $67,497,367 
Interest rate spread
 2.04 %2.43 %
Net interest income and net interest margin
 $553,229 3.27 %$566,746 3.55 %
(1)Annualized.
(2)Includes the average balances and interest income for securities and loans purchased under resale agreements for the second quarter of 2023.
(3)Includes loans HFS.
12

EAST WEST BANCORP, INC. AND SUBSIDIARIES
YEAR-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 8
 Six Months Ended
June 30, 2024June 30, 2023
Average Average Average Average
BalanceInterest
Yield/Rate (1)
BalanceInterest
Yield/Rate (1)
Assets
      
Interest-earning assets:
      
 
Interest-bearing cash and deposits with banks
$4,960,016 $123,788 5.02 %$4,353,658 $96,642 4.48 %
 
Assets purchased under resale agreements (2)
605,330 8,000 2.66 %665,229 8,472 2.57 %
Debt securities:
 
AFS debt securities7,524,158 162,100 4.33 %6,183,522 109,489 3.57 %
HTM debt securities2,945,918 25,024 1.71 %2,989,695 25,412 1.71 %
Total debt securities10,470,076 187,124 3.59 %9,173,217 134,901 2.97 %
Loans:
C&I
16,230,641 648,458 8.03 %15,322,480 563,372 7.41 %
CRE
20,342,200 647,193 6.40 %19,404,599 583,185 6.06 %
Residential mortgage
15,294,601 437,640 5.75 %13,706,798 351,529 5.17 %
Other consumer
54,372 1,539 5.69 %68,840 1,564 4.58 %
 
Total loans (3)
51,921,814 1,734,830 6.72 %48,502,717 1,499,650 6.24 %
 
FHLB and FRB stock
128,812 4,289 6.70 %84,852 1,975 4.69 %
 
Total interest-earning assets
$68,086,048 $2,058,031 6.08 %$62,779,673 $1,741,640 5.59 %
Noninterest-earning assets:
      
 
Cash and due from banks
457,070 595,022   
 
Allowance for loan losses
(677,231)(611,358)  
 
Other assets
3,567,911 3,548,733   
 
Total assets
$71,433,798 $66,312,070   
Liabilities and Stockholders’ Equity
     
Interest-bearing liabilities:
      
 
Checking deposits
$7,581,615 $106,501 2.82 %$7,469,621 $72,745 1.96 %
 
Money market deposits
13,680,220 270,066 3.97 %10,844,992 162,521 3.02 %
 
Savings deposits
1,802,405 9,124 1.02 %2,317,702 7,632 0.66 %
 
Time deposits
20,187,490 451,990 4.50 %15,674,457 261,373 3.36 %
 
BTFP, short-term borrowings and federal funds purchased
1,933,707 42,138 4.38 %2,666,249 57,857 4.38 %
 
FHLB advances
2,027,474 56,579 5.61 %248,619 6,430 5.22 %
 
Repurchase agreements3,327 93 5.62 %60,931 1,263 4.18 %
Long-term debt and finance lease liabilities
81,076 3,172 7.87 %152,591 

5,212 6.89 %
 
Total interest-bearing liabilities
$47,297,314 $939,663 4.00 %$39,435,162 $575,033 2.94 %
Noninterest-bearing liabilities and stockholders’ equity:
 
Demand deposits
14,809,871 18,310,770 
 
Accrued expenses and other liabilities
2,286,584 2,253,266 
 
Stockholders’ equity
7,040,029 6,312,872 
 
Total liabilities and stockholders’ equity
$71,433,798 $66,312,070 
Interest rate spread
 2.08 %2.65 %
Net interest income and net interest margin
 $1,118,368 3.30 %$1,166,607 3.75 %
(1)Annualized.
(2)Includes the average balances and interest income for securities and loans purchased under resale agreements for the first half of 2023.
(3)Includes loans HFS.

13

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED RATIOS
(unaudited)
Table 9
Three Months Ended (1)
June 30, 2024
Basis Point Change
 
 
June 30,
2024		March 31,
2024		June 30,
2023		Qtr-o-QtrYr-o-Yr
 
Return on average assets
1.63 %1.60 %1.85 %3 bps(22)bps
Adjusted return on average assets (2)
1.64 %1.64 %1.85 %— (21)
 
Return on average common equity 16.36 %16.40 %19.43 %(4)(307)
Adjusted return on average common equity (2)
16.43 %16.81 %19.43 %(38)(300)
Return on average TCE (3)
17.54 %17.60 %21.01 %(6)(347)
Adjusted return on average TCE (3)
17.62 %18.05 %21.01 %(43)(339)
 
Interest rate spread
2.04 %2.12 %2.43 %(8)(39)
 
Net interest margin
3.27 %3.34 %3.55 %(7)(28)
Average loan yield
6.73 %6.71 %6.33 %2 40 
 
Yield on average interest-earning assets
6.11 %6.04 %5.67 %7 44 
Average cost of interest-bearing deposits
3.94 %3.85 %3.09 %9 85 
 
Average cost of deposits
2.96 %2.84 %2.12 %12 84 
 
Average cost of funds
3.11 %2.97 %2.31 %14 80 
 
Adjusted noninterest expense/average assets (4)
1.23 %1.25 %1.22 %(2)1 
Efficiency ratio
37.06 %38.33 %40.56 %(127)(350)
 
Adjusted efficiency ratio (4)
34.25 %34.68 %31.83 %(43)bps242 bps
Six Months Ended (1)
June 30, 2024
Basis Point Change
June 30,
2024		June 30,
2023		Yr-o-Yr
Return on average assets
1.61 %1.93 %(32)bps
Adjusted return on average assets (2)
1.64 %1.95 %(31)
Return on average common equity 16.38 %20.27 %(389)
Adjusted return on average common equity (2)
16.62 %20.49 %(387)
Return on average TCE (3)
17.57 %21.95 %(438)
Adjusted return on average TCE (3)
17.83 %22.19 %(436)
Interest rate spread
2.08 %2.65 %(57)
Net interest margin
3.30 %3.75 %(45)
Average loan yield
6.72 %6.24 %48 
Yield on average interest-earning assets
6.08 %5.59 %49 
Average cost of interest-bearing deposits
3.89 %2.80 %109 
Average cost of deposits
2.90 %1.86 %104 
Average cost of funds
3.04 %2.01 %103 
Adjusted noninterest expense/average assets (4)
1.24 %1.25 %(1)
Efficiency ratio
37.70 %36.79 %91 
Adjusted efficiency ratio (4)
34.47 %31.13 %334 bps
(1)Annualized except for efficiency ratio and adjusted efficiency ratio.
(2)Adjusted return on average assets and adjusted return on average common equity are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 14.
(3)Return on average TCE and adjusted return on average TCE are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 13.
(4)Adjusted noninterest expense/average assets and adjusted efficiency ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 12.

14

EAST WEST BANCORP, INC. AND SUBSIDIARIES
ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE SHEET CREDIT EXPOSURES
($ in thousands)
(unaudited)
Table 10
Three Months Ended June 30, 2024
CommercialConsumer
CREResidential Mortgage
($ in thousands)C&ICREMulti-Family 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 March 31, 2024
CommercialConsumer
CREResidential Mortgage
($ in thousands)C&ICREMulti-Family ResidentialConstruction and LandSingle-Family ResidentialHELOCsOther ConsumerTotal
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)275 19,132 3,032 1,381 899 (432)(132)24,155 
Gross charge-offs(20,998)(2,398)(6)(1,224)— — (58)(24,684)
Gross recoveries1,710 134 17 193 5 48 — 2,107 
Total net (charge-offs) recoveries (19,288)(2,264)11 (1,031)5 48 (58)(22,577)
Foreign currency translation adjustment(41)— — — — — — (41)
Allowance for loan losses, March 31, 2024
$373,631 $187,460 $37,418 $10,819 $55,922 $3,563 $1,467 $670,280 


Three Months Ended June 30, 2023
CommercialConsumer
CREResidential Mortgage
($ in thousands)C&ICREMulti-Family ResidentialConstruction and LandSingle-Family ResidentialHELOCsOther ConsumerTotal
Allowance for loan losses, March 31, 2023
$376,325 $155,067 $24,526 $9,322 $48,007 $4,971 $1,675 $619,893 
Provision for (reversal of) credit losses on loans(a)5,259 15,685 (1,604)1,995 3,501 (444)(367)24,025 
Gross charge-offs(7,335)(2,366)— — — (6)(48)(9,755)
Gross recoveries2,065 119 16 8 5 5 — 2,218 
Total net (charge-offs) recoveries (5,270)(2,247)16 8 5 (1)(48)(7,537)
Foreign currency translation adjustment(981)— — — — — — (981)
Allowance for loan losses, June 30, 2023
$375,333 $168,505 $22,938 $11,325 $51,513 $4,526 $1,260 $635,400 
15

EAST WEST BANCORP, INC. AND SUBSIDIARIES
ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE-SHEET CREDIT EXPOSURES
($ in thousands)
(unaudited)
Table 10 (continued)
Six Months Ended June 30, 2024
CommercialConsumer
CREResidential Mortgage
($ in thousands)C&ICREMulti-Family 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)18,058 37,419 5,660 5,803 (5,467)(664)108 60,917 
Gross charge-offs(34,132)(13,501)(6)(2,144)(35)— (188)(50,006)
Gross recoveries3,527 284 225 194 7 57 — 4,294 
Total net (charge-offs) recoveries(30,605)(13,217)219 (1,950)(28)57 (188)(45,712)
Foreign currency translation adjustment(154)— — — — — — (154)
Allowance for loan losses, June 30, 2024
$379,984 $194,794 $40,254 $14,322 $49,523 $3,340 $1,577 $683,794 
Six Months Ended June 30, 2023
CommercialConsumer
CREResidential Mortgage
($ in thousands)C&ICREMulti-Family 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 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)4,581 20,361 (469)2,205 15,943 136 (212)42,545 
Gross charge-offs(9,235)(2,372)— — — (97)(88)(11,792)
Gross recoveries3,276 315 28 11 5 11 — 3,646 
Total net (charge-offs) recoveries(5,959)(2,057)28 11 5 (86)(88)(8,146)
Foreign currency translation adjustment(672)— — — — — — (672)
Allowance for loan losses, June 30, 2023
$375,333 $168,505 $22,938 $11,325 $51,513 $4,526 $1,260 $635,400 

Three Months EndedSix Months Ended
($ in thousands)June 30,
2024		March 31,
2024		June 30,
2023		June 30,
2024		June 30,
2023
Unfunded Credit Facilities
Allowance for unfunded credit commitments, beginning of period (1)
$38,544 $37,699 $27,741 $37,699 $26,264 
Provision for credit losses on unfunded credit commitments
(b)238 845 1,975 1,083 3,455 
Foreign currency translation adjustment1 — 12 1 9 
Allowance for unfunded credit commitments, end of period (1)
$38,783 $38,544 $29,728 $38,783 $29,728 
Provision for credit losses(a)+(b)$37,000 $25,000 $26,000 $62,000 $46,000 
(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 LoansJune 30, 2024March 31, 2024June 30, 2023
Special mention loans$435,679 $543,573 $330,741 
Classified loans644,564 651,485 481,051 
Total criticized loans (1)
$1,080,243 $1,195,058 $811,792 
(1)Excludes loans HFS.

Nonperforming Assets
June 30, 2024March 31, 2024June 30, 2023
Nonaccrual loans:
Commercial:
C&I$66,960 $48,962 $61,879 
Total CRE47,203 51,888 20,598 
Consumer:
Total residential mortgage51,514 47,167 33,032 
Other consumer205 162 24 
Total nonaccrual loans165,882 148,179 115,533 
Other real estate owned, net30,400 16,692 — 
Total nonperforming assets$196,282 $164,871 $115,533 
Credit Quality RatiosJune 30, 2024March 31, 2024June 30, 2023
Annualized quarterly net charge-offs to average loans HFI 0.18 %0.17 %0.06 %
Special mention loans to loans HFI0.83 %1.05 %0.66 %
Classified loans to loans HFI1.22 %1.25 %0.97 %
Criticized loans to loans HFI2.05 %2.30 %1.63 %
Nonperforming assets to total assets0.27 %0.23 %0.17 %
Nonaccrual loans to loans HFI0.31 %0.29 %0.23 %
Allowance for loan losses to loans HFI1.30 %1.29 %1.28 %

Composition of Allowance (“ALLL”) by Portfolio
June 30, 2024March 31, 2024June 30, 2023
Loan Category
ALLL
ALLL/
Loans HFI
ALLL
ALLL/
Loans HFI
ALLL
ALLL/
Loans HFI
C&I
$379,984 2.25 %$373,631 2.29 %$375,333 2.40 %
Total CRE
249,370 1.23 235,697 1.16 202,768 1.02 
Multifamily
40,254 0.79 37,418 0.75 22,938 0.48 
Office
67,772 3.10 61,271 2.73 43,680 1.86 
All other CRE
141,344 1.08 137,008 1.05 136,150 1.06 
Residential mortgage & consumer
54,440 0.35 60,952 0.40 57,299 0.40 
Total loans
$683,794 1.30 %$670,280 1.29 %$635,400 1.28 %

17

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
($ in thousands)
(unaudited)
Table 12
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Adjusted efficiency ratio represents adjusted noninterest expense divided by adjusted revenue. Adjusted pre-tax, pre-provision income represents total adjusted revenue less adjusted noninterest expense. Adjusted revenue excludes the write-off of an AFS debt security in the first quarter of 2023. Adjusted noninterest expense excludes the amortization of tax credit and CRA investments, the amortization of core deposit intangibles, the FDIC special assessment charge (included in Deposit insurance premiums and regulatory assessments on the Consolidated Statement of Income) and the repurchase agreements’ extinguishment cost (where applicable). Management believes that the measures and ratios presented below provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods.
Three Months EndedSix Months Ended
June 30, 2024March 31, 2024June 30, 2023June 30, 2024June 30, 2023
Net interest income before provision for credit losses(a)$553,229 $565,139 $566,746 $1,118,368 $1,166,607 
Total noninterest income84,673 78,988 78,631 163,661 138,609 
Total revenue(b)$637,902 $644,127 $645,377 $1,282,029 $1,305,216 
Noninterest income84,673 78,988 78,631 163,661 138,609 
Add: Write-off of AFS debt security
— — — — 10,000 
Adjusted noninterest income(c)84,673 78,988 78,631 163,661 148,609 
Adjusted revenue(a)+(c) = (d)$637,902 $644,127 $645,377 $1,282,029 $1,315,216 
Total noninterest expense(e)$236,434 $246,875 $261,789 483,309 $480,236 
Less: Amortization of tax credit and CRA investments
(16,052)(13,207)(55,914)(29,259)(66,024)
Amortization of core deposit intangibles— — (440)— (881)
FDIC special assessment charge
(1,880)(10,305)— (12,185)— 
Repurchase agreements’ extinguishment cost— — — — (3,872)
Adjusted noninterest expense(f)$218,502 $223,363 $205,435 $441,865 $409,459 
Efficiency ratio(e)/(b)37.06 %38.33 %40.56 %37.70 %36.79 %
Adjusted efficiency ratio(f)/(d)34.25 %34.68 %31.83 %34.47 %31.13 %
Pre-tax, pre-provision income
(b)-(e) = (g)
$401,468 $397,252 $383,588 $798,720 $824,980 
Adjusted pre-tax, pre-provision income
(d)-(f) = (h)
$419,400 $420,764 $439,942 $840,164 $905,757 
Average total assets
(i)
$71,189,200 $71,678,396 $67,497,367 $71,433,798 $66,312,070 
Adjusted noninterest expense/average assets (1)
(f)/(i)1.23 %1.25 %1.22 %1.24 %1.25 %
(1)Annualized.


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 such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.
 June 30, 2024March 31, 2024June 30, 2023
Stockholders’ equity (a)$7,215,114 $7,023,232 $6,461,697 
Less: Goodwill(465,697)(465,697)(465,697)
Other intangible assets (1)
(5,903)(6,234)(6,418)
Tangible book value(b)$6,743,514 $6,551,301 $5,989,582 
Number of common shares at period-end(c)138,604 139,121 141,484 
Book value per share(a)/(c)$52.06 $50.48 $45.67 
Tangible book value per share (b)/(c)$48.65 $47.09 $42.33 
Total assets(d)$72,468,272 $70,875,670 $68,532,681 
Less: Goodwill(465,697)(465,697)(465,697)
Other intangible assets (1)
(5,903)(6,234)(6,418)
Tangible assets (e)$71,996,672 $70,403,739 $68,060,566 
Total stockholders’ equity to assets ratio(a)/(d)9.96 %9.91 %9.43 %
TCE ratio (b)/(e)9.37 %9.31 %8.80 %
Return on average TCE represents tangible net income divided by average tangible book value. Adjusted return on average TCE represents adjusted tangible net income divided by average tangible book value. Tangible net income excludes the after-tax impacts of the amortization of core deposit intangibles and mortgage servicing assets. Adjusted tangible net income excludes the after-tax impacts of the tangible net income adjustments, the FDIC special assessment charge (included in Deposit insurance premiums and regulatory assessments on the Consolidated Statement of Income), and the write-off of an AFS debt security (where applicable). Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.
Three Months EndedSix Months Ended
June 30, 2024March 31, 2024June 30, 2023June 30, 2024June 30, 2023
Net income(e)$288,230 $285,075 $312,031 $573,305 $634,470 
Add: Amortization of core deposit intangibles— — 440 — 881 
Amortization of mortgage servicing assets
332 308 342 640 698 
Tax effect of amortization adjustments (2)
(98)(91)(230)(189)(463)
Tangible net income(f)$288,464 $285,292 $312,583 $573,756 $635,586 
Add: FDIC special assessment charge1,880 10,305 — 12,185 — 
Add: Write-off of AFS debt security
— — — — 10,000 
Tax effect of adjustments (2)
(556)(3,046)— (3,602)(2,929)
Adjusted tangible net income(g)$289,788 $292,551 $312,583 $582,339 $642,657 
Average stockholders’ equity (h)$7,087,500 $6,992,558 $6,440,996 $7,040,029 $6,312,872 
Less: Average goodwill(465,697)(465,697)(465,697)(465,697)(465,697)
Average other intangible assets (1)
(6,110)(6,473)(6,921)(6,292)(7,306)
Average tangible book value(i)$6,615,693 $6,520,388 $5,968,378 $6,568,040 $5,839,869 
Return on average common equity (3)
(e)/(h)16.36 %16.40 %19.43 %16.38 %20.27 %
Return on average TCE (3)
(f)/(i)17.54 %17.60 %21.01 %17.57 %21.95 %
Adjusted return on average TCE (3)
(g)/(i)17.62 %18.05 %21.01 %17.83 %22.19 %
(1)Includes core deposit intangibles and mortgage servicing assets.
(2)Applied statutory tax rate of 29.56% for the three and six months ended June 30, 2024, and the three months ended March 31, 2024. Applied statutory tax rate of 29.29% for the three and six months ended June 30, 2023.
(3)Annualized.
19

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
($ and shares in thousands, except for per share data)
(unaudited)
Table 14
During the 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 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.
 Three Months Ended
Six Months Ended
June 30, 2024March 31, 2024June 30, 2023June 30, 2024June 30, 2023
Net income
(a)$288,230 $285,075 $312,031 $573,305 $634,470 
Add: FDIC special assessment charge
1,880 10,305 — 12,185 — 
Add: Write-off of AFS debt security
— — — — 10,000 
Tax effect of adjustments (1)
(556)(3,046)— (3,602)(2,929)
Adjusted net income
(b)$289,554 $292,334 $312,031 $581,888 $641,541 
Diluted weighted-average number of shares outstanding139,801 140,261 141,876 140,047 141,910 
Diluted EPS
$2.06 $2.03 $2.20 $4.09 $4.47 
Add: FDIC special assessment charge
0.01 0.05 — 0.06 — 
Add: Write-off of AFS debt security
— — — — 0.05 
Adjusted diluted EPS
$2.07 $2.08 $2.20 $4.15 $4.52 
Average total assets
(c)$71,189,200 $71,678,396 $67,497,367 $71,433,798 $66,312,070 
Average stockholders’ equity
(d)$7,087,500 $6,992,558 $6,440,996 $7,040,029 $6,312,872 
Return on average assets (2)
(a)/(c)1.63 %1.60 %1.85 %1.61 %1.93 %
Adjusted return on average assets (2)
(b)/(c)1.64 %1.64 %1.85 %1.64 %1.95 %
Return on average common equity (2)
(a)/(d)16.36 %16.40 %19.43 %16.38 %20.27 %
Adjusted return on average common equity (2)
(b)/(d)16.43 %16.81 %19.43 %16.62 %20.49 %
Return on average TCE (2)(3)
17.54 %17.60 %21.01 %17.57 %21.95 %
Adjusted return on average TCE (2)(3)
17.62 %18.05 %21.01 %17.83 %22.19 %
(1)Applied statutory tax rate of 29.56% for the three and six months ended June 30, 2024, and the three months ended March 31, 2024. Applied statutory tax rate of 29.29% for the three and six months ended June 30, 2023.
(2)Annualized.
(3)Refer to Table 13 for the calculation of the return on average TCE and adjusted return on average TCE ratios.

20
East West Bancorp, Inc. 2Q Earnings Presentation July 23, 2024 2Q 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 second 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 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.

 
2Q24 Financial Highlights 3 (1) See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s earnings press releases ▪ 1.6% ROAA ▪ 16.4% ROACE (17.5% ROTCE1) ▪ Tangible common equity ratio1 at 9.37% ▪ TBVPS1 growth: +3% Q-o-Q, +15% Y-o-Y ▪ Repurchased approximately 560,000 shares − $49 million authorization remaining $288 million net income available to common equity, $2.06 diluted earnings per share ▪ Grew end-of-period loans +2% Q-o-Q ‒ Growth in line with guidance, driven by C&I and residential mortgage ▪ Grew end-of-period deposits +2% Q-o-Q ‒ Fourth consecutive quarter of $1bn+ customer growth, with growth across commercial and consumer segments ▪ Solid growth in every fee business category − Double-digit growth in foreign exchange income, wealth management, and customer derivative revenue Q-o-Q ▪ Record quarterly fee income of $77mm ▪ Increasing noninterest income as a portion of revenue ▪ Net charge-offs of $23mm, unchanged from the prior quarter ▪ Nonperforming assets at 27bps ▪ Criticized loans down 10%, special mention loans down 20% Q-o-Q ▪ ALLL at 1.30%, grew CRE allowance 7bps, office allowance at 3.10% Balancing Loan & Deposit Growth Growing Fee Businesses Maintaining Strong Asset Quality Delivering Shareholder Value

 
14.9 15.3 15.5 15.4 15.3 4.7 4.8 4.9 5.0 5.0 14.0 14.4 14.9 15.2 15.4 15.3 15.4 16.0 16.3 16.2 $48.9 $49.9 $51.3 $51.9 $51.9 2Q23 3Q23 4Q23 1Q24 2Q24 C&I $(57) $90 $217 $525 CRE (ex. Multifamily) Multifamily Residential mortgage & other consumer C&I Loans 4 Consistent residential mortgage production and a late quarter uptick in C&I drove end of period loans higher ($ in billions) Average Loans End of Period Loan Growth (1Q24 to 2Q24) ($ in millions) +10% +2% +6% Y-o-Y +6% +8% +$775mm CRE (ex. Multifamily)Residential mortgage & other consumer Multifamily

 
16.9 16.3 15.9 15.0 14.7 10.7 10.1 9.5 9.5 9.3 10.4 12.2 12.8 13.6 13.7 16.3 16.6 17.2 19.3 21.0 $54.3 $55.2 $55.4 $57.4 $58.7 2Q23 3Q23 4Q23 1Q24 2Q24 $(231) $95 $693 $882 Wholesale Greater China Consumer and Private Banking Commercial and Business Banking Deposits 5 Fourth consecutive quarter of $1 billion+ customer deposit growth, with growth across all customer groups ($ in billions) Average Deposits End of Period Deposit Growth (1Q24 to 2Q24) ($ in millions) +32% -13% -13% Y-o-Y +8% +29% (1) Deposits in East West Hong Kong and East West China branches +$1.4bn 1 Noninterest-bearing DemandTime IB Checking & SavingsMMDA

 
Net Interest Income & Net Interest Margin 6 NII, NIM resilient amid higher interest-bearing deposit cost, continued mix shift ▪ NII down 2%, NIM down 7bps ▪ Impact of cash flow hedges unchanged (~$25mm, or 15bps to NIM) HighlightsNet Interest Income (NII) & Net Interest Margin (NIM) Q-o-Q Impact to NIM (Rate & Balance Impact) ($ in millions) $567 $571 $575 $565 $553 3.55% 3.48% 3.48% 3.34% 3.27% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% $400 $450 $500 $550 $600 2Q23 3Q23 4Q23 1Q24 2Q24 NII NIM vs. Prior Quarter vs. Prior Year ▪ $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% ▪ NII down 2%, NIM down 28bps ▪ Higher interest-earning asset balances and yields were more than offset by higher interest- bearing liability balances and rates Outlook

 
Fees and Noninterest Income 7 Record total quarterly fee income, with solid growth in every fee business category ▪ Fee income1 of $77mm, up $6mm, or +8% from $71mm, with growth in all fee categories ▪ Total noninterest income of $85mm included net gains on debt securities of $2mm; mark- to-market derivative gain of $2mm in 2Q24 Highlights (1) Fee income excludes mark-to-market adjustments related to customer and other derivatives; net gains (losses) on sales of loans; net gains on sales of securities; other investment income and other income Lending Fees Deposit Account Fees Fee Income1 ($ in millions) +6% +16% +10% Y-o-Y +10% +36% -29% Wealth Management Fees Foreign Exchange Income Customer Derivative Income 23 24 24 25 26 21 20 22 23 24 6 6 6 3 4 12 11 13 11 13 7 6 8 9 10$69 $67 $73 $71 $77 2Q23 3Q23 4Q23 1Q24 2Q24 vs. Prior Year vs. Prior Quarter ▪ Fee income1 up $7mm, or +10% from $69mm, with growth in wealth management, foreign exchange income, lending and deposit account fees ▪ Total noninterest income up $6mm, or 8% from $79mm

 
0.97% 1.06% 1.10% 1.25% 1.22% 0.66% 0.95% 0.77% 1.05% 0.83% 1.63% 2.01% 1.87% 2.30% 2.05% 06.30.23 09.30.23 12.31.23 03.31.24 06.30.24 Classified loans / Loans HFI Special mention loans / Loans HFI $26 $42 $37 $25 $37 $8 $18 $20 $23 $23 0.06% 0.14% 0.15% 0.17% 0.18% 2Q23 3Q23 4Q23 1Q24 2Q24 Provision for credit losses Net charge-offs NCO ratio (ann.) Asset Quality Metrics 8 Credit trends continue to normalize Provision for Credit Losses & Net Charge-offs ($ in millions) Non-Performing Assets Criticized Loans / Loans HFI Criticized Ratio by Loans HFI Portfolio ($ in millions) NPA / Total assets 0.17% 0.15% 0.16% 0.23% 0.27% 62 49 37 49 67 16 11 23 47 425 5 5 5 533 39 38 47 52 11 17 30 $116 $104 $114 $165 $196 06.30.23 09.30.23 12.31.23 03.31.24 06.30.24 OREO Resi. mortgage & consumer Multifamily CRE (ex. MFR) C&I 3.17% 1.96% 1.78% 0.40% 3.61% 3.14% 1.07% 0.46% 2.85% 3.13% 1.03% 0.46% C&I CRE (ex. Multifamily) Multifamily Resi. mortgage & consumer 12.31.23 03.31.24 06.30.24

 
$635 $656 $669 $670 $684 1.28% 1.29% 1.28% 1.29% 1.30% 06.30.23 09.30.23 12.31.23 03.31.24 06.30.24 ALLL ALLL/Loans HFI 9 Allowance for Loan Losses Grew CRE reserves by 23% year-over-year; office reserves now at 3.10% Allowance for Loan Losses (ALLL) ($ in millions) 06.30.23 03.31.24 06.30.24 Loan Category ALLL ALLL/Loans HFI ALLL ALLL/Loans HFI ALLL ALLL/Loans HFI C&I $ 375 2.40% $ 373 2.29% $ 380 2.25% Total CRE 203 1.02 236 1.16 249 1.23 Multifamily 23 0.48 38 0.75 40 0.79 Office 44 1.86 61 2.73 68 3.10 All Other CRE 136 1.06 137 1.05 141 1.08 Resi. mortgage & consumer 57 0.40 61 0.40 55 0.35 Total Loans $ 635 1.28% $ 670 1.29% $ 684 1.30% Composition of ALLL by Portfolio ($ in millions)

 
8.8% 9.0% 9.4% 9.3% 9.4% Tangible Common Equity Ratio 06.30.23 03.31.2412.31.23 10 Capital Healthy capital position: approximately 560,000 shares repurchased in 2Q24 Highlights ▪ Strong capital − We operate from a position of capital strength ▪ Declared 3Q24 dividend ‒ Payable on August 16, 2024 to shareholders of record on August 2, 2024 ▪ Opportunistic stock repurchase activity − Repurchased 0.6mm shares in 2Q24 at an average price under $73/share − Repurchased 1.2mm shares in 1Q24 − Repurchased 1.5mm shares in 4Q23 − Remaining share authorization of $49mm available for future repurchases 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 June 30, 2024 regulatory capital ratios are preliminary. Tangible Common Equity Ratio1 Regulatory Capital Ratios2 13.2% 13.3% 13.3% 13.5% 13.7% CET1 Ratio 6.5% 10.0% 10.2% 10.2% 10.1% 10.4% Leverage Ratio 5.0% 14.6% 14.7% 14.8% 14.8% 15.1% Total Capital Ratio 10.0% 09.30.23 06.30.242

 
Management Outlook: Full Year 2024 11 Earnings Drivers FY 2024 Expectations vs. FY 2023 Results Economic and Interest Rate Outlook ▪ Moderating economic growth in the second half ▪ Assuming June 30th forward curve with cuts beginning in September End of Period Loans ▪ Unchanged; growing in the range of 3% to 5% Y-o-Y Net Interest Income ▪ Unchanged; NII to decline 2% to 4% Y-o-Y Adjusted Noninterest Expense1 ▪ Unchanged; up 6% to 8% Y-o-Y, driven primarily by compensation and benefits expense and technology investment Net Charge-offs ▪ Unchanged; subsequent quarters in the range of 15bps to 25bps Tax Items ▪ Lower; FY2024 effective tax rate: 21% to 23% (vs. 23% to 24% previously) ▪ Higher; FY2024 tax credit amortization expense: $60 to $65 million Best-in-Class Efficiency Top Quartile Returns FY 2024 Expectation (1) See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s earnings press releases

 
Appendix 12

 
East West at a Glance 13 $10B Market Cap $72B Assets $60B Deposits 18% ROTCE1 06.30.24 06.30.24 06.30.24 2Q24 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 $15.6 29% CRE $20.3 39% C&I $16.9 32% 1% 2% 1% 4% 5% 8% 8% 10% 2% 2% 2% 4% 4% 4% 6% Industries with 1% of total loans outstanding1 Commercial Loan Portfolio 14 Over 70% of EWBC’s loans support commercial customers and are well-diversified CRE $20.3bn C&I $16.9bn (as % of Total Portfolio Loans, 06.30.24) Commercial Loans by Type Total Loan Portfolio $52.8bn (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

 
Commercial Real Estate Portfolio Detail 15 (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 06.30.24) (as of 06.30.24) ▪ 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 4.2 48 3 Industrial 4.0 46 3 Hotel 2.4 52 9 Office 2.2 52 4 Healthcare 0.7 51 4 Other 1.0 51 4 Construction & Land2 0.7 51 13 Total CRE $20.3 50% $3 <=50% 46% >50% to 55% 16% >55% to 60% 16% >60% to 65% 13% >65% to 70% 6% >70% 3%

 
37% 6% 13% 7% 7% 6% 5% 2% 5% 7% CRE Office – Additional Information 16 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, 2% Other NY, 1% Downtown Los Angeles and Adjacent Neighborhoods (as of 06.30.24) (as of 06.30.24) 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 $256 6 $43 55% $20mm - $30mm 455 18 25 54 $10mm - $20mm 516 36 14 56 $5mm - $10mm 429 59 7 50 <$5mm 529 412 1 45 Total $2,185 531 $4 52%

 
30% 4% 18%10% 2% 4% 5% 1% 2% 3% 6% 3% 11% CRE Retail – Additional Information 17 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 06.30.24) (as of 06.30.24) New Jersey, 1% Loan Size Balance ($ in mm) No. of Loans Avg. Loan Size ($ in mm) LTV >$30mm $335 9 $37 45% $20mm - $30mm 420 17 25 56 $10mm - $20mm 728 54 13 49 $5mm - $10mm 769 112 7 48 <$5mm 1,966 1,483 1 45 Total $4,218 1,675 $3 48%

 
30% 3% 13% 8% 6% 7% 6% 2% 3% 2% 3% 3% 4% 3% 6% CRE Multifamily – 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, 1% Washington Other Regions Other NY Low LTVs portfolio, low average loan size CRE Multifamily by Size Segment (as of 06.30.24) (as of 06.30.24) Loan Size Balance ($ in mm) No. of Loans Avg. Loan Size ($ in mm) LTV >$30mm $680 18 $38 57% $20mm - $30mm 702 29 24 56 $10mm - $20mm 629 46 14 55 $5mm - $10mm 695 100 7 55 <$5mm 2,394 2,622 <1 46 Total $5,100 2,815 $2 51% CRE Multifamily : Geographic Mix by Metro Area Arizona Nevada Oklahoma

 
<=50% 47% >50% to 55% 12% >55% to 60% 30% >60% 11% Residential Mortgage Portfolio 19 51% Average LTV1 Low LTVs and average loan size (as of 06.30.24) Resi. Mortgage Distribution by LTV1 (as of 06.30.24) $436,000 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 06.30.24 Outstandings ▪ $15.5bn loans outstanding ▪ +1% Q-o-Q and +9% Y-o-Y Originations ▪ $0.7bn in 2Q24 ▪ Primarily originated through East West Bank branches Single-family Residential ▪ $13.7bn loans outstanding ▪ +1% Q-o-Q and +12% Y-o-Y HELOC ▪ $1.8bn loans outstanding ▪ $3.5bn in undisbursed commitments ▪ 34% utilization, up 1% from 03.31.24 ▪ 78% of commitments in first lien position Resi. Mortgage Distribution by Geography3 Southern California 40% Northern California 16% New York 26% Washington 7% Texas 2% Other 9%

 
21% 21% 29% 24% 5%Fixed rate Hybrid in fixed rate period Variable - LIBOR + SOFR Variable - Prime rate Variable - all other rates Loan Yields 20 Fixed Rate and Hybrid in Fixed Period Loans (% of Total) Loan Portfolio by Index Rate Average Loan Rate by Portfolio (as of 06.30.24) Total fixed rate and hybrid in fixed period: 42% 57%* variable rate SFR: 45% hybrid in fixed-rate period & 40% fixed rate 2Q23 3Q23 4Q23 1Q24 2Q24 06.30.24 rate sheet price for 30-year fixed: 7.63%*47% had customer-level interest rate derivative contracts 90% variable rate 7.57% 7.90% 7.99% 8.06% 8.01% C&I 6.15% 6.28% 6.36% 6.39% 6.41% CRE 5.24% 5.36% 5.49% 5.71% 5.80% Residential Mortgage 38% 41% 42% 06.30.22 06.30.23 06.30.24

 
Deposit and Funding Cost 21 Average Deposit and Liability Cost Average Deposit Rate by Portfolio 2.12% 2.43% 2.60% 2.84% 2.96% 3.09% 3.45% 3.64% 3.85% 3.94% 3.24% 3.56% 3.73% 3.92% 4.07% 2Q23 3Q23 4Q23 1Q24 2Q24 Average cost of deposits Average cost of interest-bearing deposits Average cost of interest-bearing liabilities 2.36% 2.67% 2.72% 2.81% 2.84% Interest-bearing Checking 3.32% 3.69% 3.83% 3.97% 3.97% Money Market 3.63% 3.98% 4.22% 4.44% 4.56% Time 2Q23 3Q23 4Q23 1Q24 2Q24

 
($ in billions) $9.9 $9.7 $9.7 $10.2 $11.9 $5.2 $5.4 $4.4 $5.9 $4.1 $15.1 $15.1 $14.1 $16.1 $16.0 2.99% 3.06% 3.17% 3.19% 3.93% 2Q23 3Q23 4Q23 1Q24 2Q24 Total Securities & Resale Agreements Cash & Equivalent Total Securities Average Yield Securities Portfolio 22 Maintained an appropriate level of on balance sheet liquidity while enhancing earnings ▪ Securities portfolio well-positioned as a source of liquidity, interest rate risk management, and earnings support ▪ Reinvestment into high-quality liquid assets ▪ Average securities yield up 74bps Q-o-Q ▪ Grew 0% RWA securities to 54% of portfolio total, from 50% in the prior quarter HighlightsAverage Total Investment Securities and Cash Securities Portfolio Composition by Risk-Weighted Asset (RWA) Distribution 93% of investment portfolio 0%‒20% risk-weighted (as of 06.30.24) 54%39% 1% 6% 0% RWA 1%‒20% RWA 21%‒50% RWA 51%‒100% RWA

 
31.8% 34.7% 34.3% 1.22% 1.25% 1.23% 2Q23 1Q24 2Q24 125 123 131 142 134 34 32 37 33 38 19 20 20 22 21 16 15 16 15 15 11 12 11 11 11 $205 $202 $215 $223 $219 2Q23 3Q23 4Q23 1Q24 2Q24 Operating Expense & Efficiency 23 Best-in-class efficiency Adjusted Noninterest Expense1 ($ in millions) ▪ Total noninterest expense of $236mm ▪ Adjusted noninterest expense1 of $219mm was lower on seasonally lower compensation costs ($8mm), partially offset by $4mm of higher OREO and other operating expenses (1) See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s earnings press releases (2) Deposit-related expenses excludes FDIC special deposit insurance assessment charge of $70 million, $10 million, and $2 million for 4Q23, 1Q24 and 2Q24, respectively Highlights Adjusted Efficiency Ratio1 and Noninterest Expense/Average Assets Ratio1 Adj. Efficiency Noninterest Expense / Avg. Assets Computer Software & Data Processing Occupancy & Equipment Deposit-related Expenses All Other Compensation & Employee Benefits 2 2 2 vs. Prior Quarter vs. Prior Year ▪ Total noninterest expense down $25mm or 10% from $262mm

 
Appendix: GAAP to Non-GAAP Reconciliation 24 EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Adjusted efficiency ratio represents adjusted noninterest expense divided by adjusted revenue. Adjusted pre-tax, pre-provision income represents total adjusted revenue less adjusted noninterest expense. Adjusted revenue excludes the write-off of an AFS debt security in the first quarter of 2023. Adjusted noninterest expense excludes the amortization of tax credit and CRA investments, the amortization of core deposit intangibles, the FDIC special assessment charge (included in Deposit insurance premiums and regulatory assessments on the Consolidated Statement of Income) and the repurchase agreements’ extinguishment cost (where applicable). Management believes that the measures and ratios presented below provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods. (1) Annualized.

 
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. Tangible book value, tangible book value per share and TCE ratio are non- GAAP financial measures. Tangible book value and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion. (1) Includes core deposit intangibles and mortgage servicing assets.

 
(1) Includes core deposit intangibles and mortgage servicing assets. (2) Applied statutory tax rate of 29.56% for the three months ended June 30, 2024 and March 31, 2024. Applied statutory tax rate of 29.29% for the three months ended June 30, 2023. (3) Annualized. Appendix: GAAP to Non-GAAP Reconciliation 26 EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Return on average TCE represents tangible net income divided by average tangible book value. Adjusted return on average TCE represents adjusted tangible net income divided by average tangible book value. Tangible net income excludes the after-tax impacts of the amortization of core deposit intangibles and mortgage servicing assets. Adjusted tangible net income excludes the after-tax impacts of the tangible net income adjustments, the FDIC special assessment charge (included in Deposit insurance premiums and regulatory assessments on the Consolidated Statement of Income), and the write-off of an AFS debt security (where applicable). Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.

 
Appendix: GAAP to Non-GAAP Reconciliation 27 (1) Applied statutory tax rate of 29.56% for the three months ended June 30, 2024 and March 31, 2024. Applied statutory tax rate of 29.29% for the three months ended June 30, 2023. (2) Annualized. (3) Refer to Slide 26 for the calculation of the return on average TCE and adjusted return on average TCE ratios. EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) 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 Consolidated Statement of Income).

 
v3.24.2
Cover Page
Jul. 23, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 23, 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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