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Regulatory Requirements and Matters | 12 Months Ended
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Dec. 31, 2021
Banking and Thrift, Interest [Abstract] |
Regulatory Requirements and Matters | Regulatory Requirements and Matters Capital Adequacy — The Company and the Bank are subject to regulatory capital adequacy requirements administered by the federal banking agencies. The Bank is a member bank of the Federal Reserve System and is primarily regulated by the Federal Reserve and the California Department of Financial Protection and Innovation. The Company and the Bank are required to comply with the Basel III Capital Rules adopted by the federal banking agencies as standardized approaches institutions. The Basel III Capital Rules require that banking organizations maintain a minimum Common Equity Tier 1 (“CET1”) capital ratio of at least 4.5%, a Tier 1 capital ratio of at least 6.0%, a total capital ratio of at least 8.0%, and a Tier 1 leverage ratio of a least 4.0% to be considered adequately capitalized. Failure to meet the minimum capital requirements can result in certain mandatory actions and possibly additional discretionary actions by the regulators that, if undertaken, could have a direct material effect on the Company’s Consolidated Financial Statements. The Company and the Bank are also subject to maintain a capital conservation buffer of 2.5% above the minimum risk-based capital ratios under the Basel III Capital Rules. Banking institutions with a ratio of CET1 to risk-weighted assets above the minimum but below the capital conservation buffer will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. The FDIC Improvement Act of 1991 requires that the federal regulatory agencies adopt regulations defining capital categories for banks: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. Consistent with the Basel III Capital Rules, the capital categories were augmented by including the CET1 capital measure, and revised risk-based capital measures to reflect the rule changes to the minimum risk-based capital ratios. Effective January 1, 2020, the Company adopted the ASU 2016-13 Financial Instruments — Credit Losses (Topic 326) Measurement of Credit Losses on Financial instrument that introduced the CECL methodology. In March 2020, the federal banking agencies issued the Interim Final Rule that provided banking organizations that adopted the CECL with the phase-in option to delay t he estimated impact of CECL on regulatory capital. The Bank and the Company have elected the CECL phase-in option in 2020. As a result, the Bank and the Company delayed the impact of CECL on regulatory capital through the year 2021, after which the effects are being phased in over a three-year period from January 1, 2022 through December 31, 2024. As of December 31, 2021 and 2020, the Company and the Bank were both categorized as well capitalized based on applicable U.S. regulatory capital ratio requirements in accordance with Basel III standardized approaches, as set forth in the table below. The Company believes that no changes in conditions or events have occurred since December 31, 2021, which would result in changes that would cause the Company or the Bank to fall below the well capitalized level. The following table presents the regulatory capital information of the Company and the Bank as of December 31, 2021 and 2020:
($ in thousands) |  | Basel III
| December 31, 2021 |  | December 31, 2020 |  | Minimum Capital Ratios |  | Fully Phased-in Minimum Capital Ratios (3) |  | Well- Capitalized Requirement
| Actual |  |  |  |  |  | Actual |  |  |
| Amount |  | Ratio |  |  |  |  |  | Amount |  | Ratio |  | Ratio |  | Ratio |  | Ratio
Total capital (to risk-weighted assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 6,124,827 |  |  | 14.1 | % |  |  |  |  |  | $ | 5,510,640 |  |  | 14.3 | % |  | 8.0 | % |  | 10.5 | % |  | 10.0 | %
East West Bank |  | $ | 5,766,734 |  |  | 13.2 | % |  |  |  |  |  | $ | 5,143,246 |  |  | 13.4 | % |  | 8.0 | % |  | 10.5 | % |  | 10.0 | %
Tier 1 capital (to risk-weighted assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 5,559,357 |  |  | 12.8 | % |  |  |  |  |  | $ | 4,882,555 |  |  | 12.7 | % |  | 6.0 | % |  | 8.5 | % |  | 6.0 | %
East West Bank |  | $ | 5,349,264 |  |  | 12.3 | % |  |  |  |  |  | $ | 4,662,426 |  |  | 12.1 | % |  | 6.0 | % |  | 8.5 | % |  | 8.0 | %
CET1 capital (to risk-weighted assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 5,559,357 |  |  | 12.8 | % |  |  |  |  |  | $ | 4,882,555 |  |  | 12.7 | % |  | 4.5 | % |  | 7.0 | % |  | 6.5 | %
East West Bank |  | $ | 5,349,264 |  |  | 12.3 | % |  |  |  |  |  | $ | 4,662,426 |  |  | 12.1 | % |  | 4.5 | % |  | 7.0 | % |  | 6.5 | %
Tier 1 leverage capital (to adjusted average assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company (1) |  | $ | 5,559,357 |  |  | 9.0 | % |  |  |  |  |  | $ | 4,882,555 |  |  | 9.4 | % |  | 4.0 | % |  | 4.0 | % |  | N/A
East West Bank |  | $ | 5,349,264 |  |  | 8.6 | % |  |  |  |  |  | $ | 4,662,426 |  |  | 9.0 | % |  | 4.0 | % |  | 4.0 | % |  | 5.0 | %
Risk-weighted assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 43,585,105 |  |  | N/A |  |  |  |  |  | $ | 38,406,071 |  |  | N/A |  | N/A |  | N/A |  | N/A
East West Bank |  | $ | 43,572,086 |  |  | N/A |  |  |  |  |  | $ | 38,481,275 |  |  | N/A |  | N/A |  | N/A |  | N/A
Adjusted quarterly average total assets (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 62,387,003 |  |  | N/A |  |  |  |  |  | $ | 52,540,964 |  |  | N/A |  | N/A |  | N/A |  | N/A
East West Bank |  | $ | 62,366,514 |  |  | N/A |  |  |  |  |  | $ | 52,594,313 |  |  | N/A |  | N/A |  | N/A |  | N/A
(1)The Tier 1 leverage capital well-capitalized requirement applies only to the Bank since there is no Tier 1 leverage ratio component in the definition of a well-capitalized bank holding company. (2)Reflects adjusted quarterly average total assets for the years ended December 31, 2021 and 2020. (3)Includes a 2.5% capital conservation buffer requirement above the minimum risk-based capital ratios. N/A — Not applicable. Reserve Requirement — The Bank is required to maintain a percentage of its deposits as reserves at the Federal Reserve. In an effort to provide monetary stimulus to counteract the economic disruption caused by the COVID-19 pandemic, the Federal Reserve reduced reserve requirement ratio to zero percent. The daily average reserve requirements were zero as of both December 31, 2021 and 2020.

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- Definition The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958575-112826 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (c)(2) -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958569-112826 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (a)(2) -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (a)(1) -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958573-112826 + Details
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