EX-99.1 2 ewbc9918k9302022.htm EX-99.1

| Exhibit 99.1
| East West Bancorp, Inc.
135 N. Los Robles Ave., 7th Fl.
Pasadena, CA 91101
Tel. 626.768.6000

NEWS RELEASE |  |  |

FOR INVESTOR INQUIRIES, CONTACT:
Irene Oh | Julianna Balicka
Chief Financial Officer | Director of Investor Relations and Corporate Finance
T: (626) 768-6360 | T: (626) 768-6985
E: irene.oh@eastwestbank.com | E: julianna.balicka@eastwestbank.com

EAST WEST BANCORP REPORTS NET INCOME FOR THIRD QUARTER 2022
OF $295 MILLION AND DILUTED EARNINGS PER SHARE OF $2.08;
RECORD NET INTEREST INCOME OF $552 MILLION
Pasadena, California – October 20, 2022 – East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, reported its financial results for the third quarter of 2022. Third quarter 2022 net income was $295.3 million, or $2.08 per diluted share; diluted earnings per share grew 58% linked quarter annualized and 32% year-over-year.
“This was another quarter of outstanding results. Net interest income increased to a record $552 million, up 66% linked quarter annualized, and our net interest margin expanded an impressive 45 basis points quarter-over-quarter to 3.68%,” stated Dominic Ng, Chairman and Chief Executive Officer of East West. “Our efficiency improved, expanding all profitability ratios. For the third quarter of 2022, we returned 1.9% on average assets and 20.3% on average equity.”
“Total loans reached a record $47.5 billion as of September 30, 2022, up 8% linked quarter annualized, with growth across all our major loan categories. Asset quality continued to be healthy, with very low charge-offs and criticized loans decreasing 11% from June 30, 2022.”
“All our capital ratios expanded in the third quarter of 2022, driven by the strength of our earnings growth. We ended the quarter with a common equity tier 1 ratio of 12.3% and a tangible common equity ratio 1 of 8.35%,” continued Ng.
“With our industry-leading operating margins and strong capital, we are well positioned to navigate the changing economic conditions, and help our customers prosper and maximize personal and business opportunities. We are looking forward to finishing 2022 on a high note and entering 2023 with strength and confidence,” concluded Ng.

1 See reconciliation of GAAP to non-GAAP financial measures in Table 13.

1

FINANCIAL HIGHLIGHTS

|  |  | Three Months Ended |  |  |  | Qtr-o-Qtr Change |  | Yr-o-Yr Change
| ($ in millions, except per share data) |  | September 30, 2022 |  |  |  |  |  | $ |  | % |  | $ |  | %
| Total Loans |  | $47,457 |  |  |  |  |  | $926 |  | 2% |  | $6,975 |  | 17%
| Total Deposits |  | 53,857 |  |  |  |  |  | (486) |  | (1) |  | 501 |  | 1
| Total Revenue |  | $627 |  |  |  |  |  | $76 |  | 14% |  | $159 |  | 34%
| Adj. Pre-tax Pre-provision Income 2 |  | 432 |  |  |  |  |  | 62 |  | 17 |  | 130 |  | 43
| Net Income |  | 295 |  |  |  |  |  | 37 |  | 14 |  | 70 |  | 31
| Diluted Earnings per Share |  | $2.08 |  |  |  |  |  | $0.27 |  | 15% |  | $0.50 |  | 32%

BALANCE SHEET
•Record Assets – Total assets reached $62.6 billion as of September 30, 2022, up $181.8 million, or 0.3% (1% annualized), from $62.4 billion as of June 30, 2022. Year-over-year, total assets grew $1.6 billion, or 3%, from $61.0 billion as of September 30, 2021.
Third quarter 2022 average interest-earning assets of $59.5 billion were up $810.0 million, or 1% (5% annualized), from $58.7 billion in the second quarter of 2022. Quarter-over-quarter, average loan growth of $2.2 billion was partially offset by declines in other, lower yielding interest-earning assets.
•Record Loans – Total loans reached $47.5 billion as of September 30, 2022, an increase of $926.2 million, or 2% (8% annualized), from $46.5 billion as of June 30, 2022. Year-over-year, total loans grew $7.0 billion, or 17%, from $40.5 billion as of September 30, 2021.
Third quarter 2022 average loans of $46.9 billion grew $2.2 billion, or 5% (20% linked quarter annualized), with solid growth spread across all our major loan categories, led by residential mortgage and commercial real estate loans.
•Total Deposits – Total deposits were $53.9 billion as of September 30, 2022, a decrease of $0.5 billion, or 1% (4% annualized), from $54.3 billion as of June 30, 2022. Year-over-year, deposits grew $0.5 billion, or 1%, from $53.4 billion as of September 30, 2021.
Third quarter 2022 average deposits of $54.1 billion decreased $78.3 million, essentially unchanged from the second quarter. Quarter-over-quarter, growth in average time deposits, interest-bearing checking and money market accounts was offset by a decrease in average noninterest-bearing demand deposits. Average noninterest-bearing deposits made up 41% of average total deposits in the third quarter of 2022, compared with 44% in the second quarter of 2022 and 43% in the third quarter of 2021.
•Strong Capital Levels – As of September 30, 2022, stockholders’ equity was $5.7 billion, or $40.17 per common share, and tangible equity 3 per common share was $36.80; each increasing 1% (4% annualized) quarter-over-quarter. As of September 30, 2022, the tangible equity to tangible assets ratio was 8.35%, an increase of six basis points quarter-over-quarter. The common equity tier 1 (“CET1”) capital ratio was 12.3%, and the total risk-based capital ratio was 13.6% as of September 30, 2022.

2 See reconciliation of GAAP to non-GAAP financial measures in Table 12.
3 See reconciliation of GAAP to non-GAAP financial measures in Table 13.

2

OPERATING RESULTS
Third Quarter Earnings – Third quarter 2022 net income was $295.3 million, an increase of 14%, or 57% annualized, from $258.3 million for the second quarter of 2022, and an increase of 31% from $225.4 million for the third quarter of 2021. Third quarter 2022 diluted earnings per share were $2.08, an increase of 15%, or 58% annualized, from $1.81 per diluted share for the second quarter 2022, and an increase of 32% from $1.57 per diluted share for the year-ago quarter.
Third Quarter 2022 Compared to Second Quarter 2022
Net Interest Income and Net Interest Margin
Record net interest income (“NII”) totaled $551.8 million, an increase of 17%, or 66% annualized, from $473.0 million. Net interest margin (“NIM”) of 3.68% expanded 45 basis points from 3.23%.
•NII growth and NIM expansion were driven by expanding earning asset yields and loan growth, partially offset by an increase in the cost of funds.
•The average loan yield was 4.75%, up 80 basis points from the second quarter. The average interest-earning asset yield was 4.19%, up 77 basis points from the second quarter. Average loans made up 79% of average interest-earning assets in the third quarter of 2022, compared with 76% in the second quarter of 2022.
•The average cost of funds was 0.55%, up 35 basis points from the second quarter. The average cost of deposits was 0.51%, up 34 basis points, and the average cost of interest-bearing deposits was 0.86%, up 56 basis points from the second quarter.
•The changes in yields and rates reflected rising benchmark interest rates.
Noninterest Income
Noninterest income totaled $75.6 million in the third quarter, a decrease of $2.9 million, or 4%, from $78.4 million in the second quarter.
•Fee income and net gains on sales of loans were $69.0 million, an increase of $4.2 million, or 7% (26% annualized), from $64.8 million in the second quarter. Growth in wealth management fees, deposit account fees and gains on sale of SBA loans was partially offset by decreased foreign exchange income.
Noninterest Expense
Noninterest expense totaled $216.0 million in the third quarter, compared with $196.9 million in the second quarter. Third quarter noninterest expense consisted of $195.6 million of adjusted noninterest expense 4, $19.9 million in amortization of tax credit and other investments, and $0.5 million in amortization of core deposit intangibles.
•Adjusted noninterest expense of $195.6 million increased $14.2 million, or 8% annualized, from $181.4 million in the second quarter, driven by higher compensation and employee benefits.
•Amortization of tax credit and other investments totaled $19.9 million in the third quarter, compared with $15.0 million in the second quarter. Quarter-over-quarter variability in the amortization of tax credits and other investments partially reflects the impact of investments that close in a given period.
•The adjusted efficiency ratio 4 was 31.2% in the third quarter, compared with 32.9% in the second quarter.
TAX RELATED ITEMS
Third quarter 2022 income tax expense was $89.0 million compared with income tax expense of $82.7 million for the second quarter of 2022. The year-to-date effective tax rate for the first nine months of 2022 was 22.7%.

4 See reconciliation of GAAP to non-GAAP financial measures in Table 12.

3

ASSET QUALITY
The asset quality of our loan portfolio continued to be solid and stable.
•Criticized loans decreased $117.4 million, or 11%, quarter-over-quarter to $905.2 million as of September 30, 2022, down from $1,022.6 million as of June 30, 2022. Special mention loans decreased 20% quarter-over-quarter to $471.0 million, and classified loans were essentially unchanged at $434.2 million.
•The criticized loans ratio decreased 29 basis points quarter-over-quarter to 1.91% of loans held-for-investment (“HFI”) as of September 30, 2022, down from 2.20% as of June 30, 2022. The special mention loans ratio decreased 28 basis points quarter-over-quarter to 0.99%, and the classified loans ratio decreased one basis point to 0.92%.
•As of September 30, 2022, nonperforming assets were $97.0 million, or 0.16% of total assets, compared with $89.9 million, or 0.14% of total assets, as of June 30, 2022.
•Third quarter 2022 net charge-offs were $6.6 million, or annualized 0.06% of average loans HFI, compared with net recoveries of $6.6 million, or annualized 0.06% of average loans HFI, for the second quarter of 2022.
•The allowance for loan losses totaled $582.5 million, or 1.23% of loans HFI, as of September 30, 2022, compared with $563.3 million, or 1.21% of loans HFI, as of June 30, 2022. The quarter-over-quarter build in the allowance coverage largely reflects the current macroeconomic outlook and loan growth during the quarter.
Provision for credit losses was $27.0 million for the third quarter of 2022, compared with $13.5 million for the second quarter of 2022.
CAPITAL STRENGTH
Capital levels for East West are strong. The following table presents the regulatory capital metrics as of September 30, 2022, June 30, 2022 and September 30, 2021.

EWBC Risk-Based Capital Ratios |  |
($ in millions) |  | September 30, 2022 (a) |  | June 30, 2022 (a) |  | September 30, 2021 (a) |  |  |  |  |  |
CET1 capital ratio |  | 12.3% |  | 12.0% |  | 12.8% |  |  |  |  |  |
Tier 1 capital ratio |  | 12.3% |  | 12.0% |  | 12.8% |  |  |  |  |  |
Total capital ratio |  | 13.6% |  | 13.2% |  | 14.2% |  |  |  |  |  |
Leverage ratio |  | 9.6% |  | 9.3% |  | 8.8% |  |  |  |  |  |
Risk-Weighted Assets (“RWA”) (b) |  | $49,254 |  | $48,499 |  | $42,128 |  |  |  |  |  |

(a)The Company has elected to use the 2020 CECL transition provision in the calculation of its September 30, 2022, June 30, 2022 and September 30, 2021 regulatory capital ratios. The Company’s September 30, 2022 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.
DIVIDEND PAYOUT AND CAPITAL ACTIONS
East West’s Board of Directors has declared fourth quarter 2022 dividends for the Company’s common stock. The common stock cash dividend of $0.40 per share is payable on November 15, 2022, to stockholders of record on November 1, 2022.
On March 3, 2020, East West’s Board of Directors authorized the repurchase of up to $500 million of East West’s common stock, of which $254 million remains available. East West did not repurchase any shares during the third quarter of 2022.
4

Conference Call
East West will host a conference call to discuss third quarter 2022 earnings with the public on Thursday, October 20, 2022, at 8:30 a.m. PT/11:30 a.m. ET. The public and investment community are invited to listen as management discusses third quarter 2022 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 will be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.
•A listen-only live broadcast of the call will also be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.
•A replay of the conference call will be available on October 20, 2022, at 11:30 a.m. PT/2:30 p.m. ET through November 20, 2022. The replay numbers are: within the U.S. – (877) 344-7529; within Canada – (855) 669-9658; international calls – (412) 317-0088; and the replay access code is: 3874614.
5

About East West
East West Bancorp, Inc. is a public company with total assets of $62.6 billion and is traded on the Nasdaq Global Select Market under the symbol “EWBC”. The Company’s wholly-owned subsidiary, East West Bank, is the largest independent bank headquartered in Southern California, operating over 120 locations in the United States and in China. The Company’s markets in the United States include California, Georgia, Illinois, Massachusetts, Nevada, New York, Texas and Washington. In China, East West’s presence includes full-service branches in Hong Kong, Shanghai, Shantou and Shenzhen, and representative offices in Beijing, Chongqing, Guangzhou, and Xiamen. For more information on East West, visit the Company’s website at www.eastwestbank.com.
Forward-Looking Statements
Certain matters set forth herein (including any exhibits hereto) contain forward-looking statements that are intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. In addition, the Company may make forward-looking statements in other documents that it files with, or furnishes to, the 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 expectations, estimates and projections about the Company’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. These statements may relate to the Company’s financial condition, results of operations, plans, objectives, future performance and/or business and usually can be identified by the use of forward-looking language, 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, and the negative thereof. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including, but not limited to, those described below. 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. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company.
There are a number of important factors that could cause future results to differ materially from historical performance and any forward-looking statements. Factors that might cause such differences, include, but are not limited to: changes in the global economy, including an economic slowdown, market or supply chain disruption, level of inflation, interest rate environment, housing prices, employment levels, rate of growth and general business conditions; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit; changes in local, regional and global business, economic and political conditions and geopolitical events; the economic, financial, reputational and other impacts of the ongoing Coronavirus Disease 2019 (“COVID-19”) pandemic, including variants thereof, and any other pandemic, epidemic or health-related crisis, as well as a deterioration of asset quality and an increase in credit losses due to the COVID-19 pandemic; changes in laws or the regulatory environment, including regulatory reform initiatives and policies of the U.S. Department of the Treasury, the Board of Governors of the Federal Reserve System (“Federal Reserve”), the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the SEC, the Consumer Financial Protection Bureau, and the California Department of Financial Protection and Innovation - Division of Financial Institutions; changes and effects thereof in trade, monetary and fiscal policies and laws, including the ongoing economic and political disputes between the U.S. and the People’s Republic of China and the monetary policies of the Federal Reserve; changes in the commercial and consumer real estate markets; changes in consumer or commercial spending, savings and borrowing habits, and patterns and behaviors; fluctuations in the Company’s stock price; the impact from potential changes to income tax laws and regulations, federal spending and economic stimulus programs; the Company’s ability to compete effectively against financial institutions in its banking markets and other entities, including as a result of emerging technologies; the soundness of other financial institutions; the success and timing of the Company’s business strategies; the Company’s ability to retain key officers and employees; impact on the Company’s funding costs, net interest income and net interest margin from changes in key variable market interest rates, competition, regulatory requirements and the Company’s product mix; changes in the Company’s costs of operation, compliance and expansion; the Company’s ability to adopt and successfully integrate new technologies into its business in a strategic manner; the impact of the benchmark interest rate reform in the U.S. including the transition away from the U.S. dollar (“USD”) London Interbank Offered Rate (“LIBOR”) to alternative reference rates; the impact of communications or technology 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 other similar matters which could result in, among other things, confidential and/or proprietary information being disclosed or misused, and materially impact the Company’s ability to provide services to its clients; the adequacy of the Company’s risk management framework, disclosure controls and procedures and internal control over financial reporting; future credit quality and performance, including the Company’s expectations regarding future credit losses and allowance levels; the impact of adverse changes to the Company’s credit ratings from major credit rating agencies; impact of adverse judgments or settlements in litigation; the impact on the Company’s operations due to political developments, pandemics, wars, civil unrest, terrorism or other hostilities that may disrupt or increase volatility in securities or otherwise affect business and economic conditions; heightened regulatory and governmental oversight and scrutiny of the Company’s business practices, including dealings with consumers; the impact of reputational risk from negative publicity, fines, penalties and other negative consequences from regulatory violations, legal actions and the Company’s interactions with business partners, counterparties, service providers and other third parties; the impact of regulatory investigations and enforcement actions; changes in accounting standards as may be required by the Financial Accounting Standards Board or other regulatory agencies and their impact on critical accounting policies and assumptions; 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 future strategic acquisitions or divestitures; changes in the equity and debt securities markets; fluctuations in foreign currency exchange rates; the impact of increased focus on social, environmental and sustainability matters, which may affect the Company’s operations as well as those of its customers and the economy more broadly; significant turbulence or disruption in the capital or financial markets, which could result in, among other things, reduced investor demand for loans, a reduction in the availability of funding or increases in funding costs, declines in asset values and/or recognition of allowance for credit losses on securities held in the Company’s debt securities and equity securities portfolio; and the impact of climate change, natural or man-made disasters or calamities, such as wildfires, droughts and earthquakes, all of which are particularly common in California, or other events that may directly or indirectly result in a negative impact on the Company’s financial performance.
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, 2021 under the heading Item 1A. Risk Factors and the information set forth under Item 1A. Risk Factors in the Company’s Quarterly Reports on Form 10-Q. 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.
6

EAST WEST BANCORP, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEET |
($ and shares in thousands, except per share data) |
(unaudited) |
Table 1 |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  | September 30, 2022 % or Basis Point Change |
|  |  | September 30, 2022 |  | June 30, 2022 |  | September 30, 2021 |  | Qtr-o-Qtr |  | Yr-o-Yr |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |
| Cash and due from banks |  | $ | 554,260 |  | $ | 688,936 |  | $ | 594,631 |  | (19.5) | % |  | (6.8) | % |  |
| Interest-bearing cash with banks |  | 1,609,093 |  | 1,213,117 |  | 4,258,270 |  | 32.6 |  |  | (62.2) |  |  |
| Cash and cash equivalents |  | 2,163,353 |  | 1,902,053 |  | 4,852,901 |  | 13.7 |  |  | (55.4) |  |  |
| Interest-bearing deposits with banks |  | 630,543 |  | 712,709 |  | 855,162 |  | (11.5) |  |  | (26.3) |  |  |
| Assets purchased under resale agreements (“resale agreements”) |  | 892,986 |  | 1,422,794 |  | 2,596,142 |  | (37.2) |  |  | (65.6) |  |  |
| Available-for-sale (“AFS”) debt securities (amortized cost of $6,771,354, $6,891,522 and $9,783,180) |  | 5,906,090 |  | 6,255,504 |  | 9,713,006 |  | (5.6) |  |  | (39.2) |  |  |
| Held-to-maturity (“HTM”) debt securities, at amortized cost (fair value of $2,459,135 and $2,656,549 in 2022) |  | 3,012,667 |  | 3,028,302 |  | — |  | (0.5) |  |  | 100.0 |  |  |
| Loans held-for-sale (“HFS”) |  | 14,500 |  | 28,464 |  | — |  | (49.1) |  |  | 100.0 |  |  |
| Loans held-for-investment (''HFI'') (net of allowance for loan losses of $582,517, $563,270 and $560,404) |  | 46,859,738 |  | 45,938,806 |  | 39,921,301 |  | 2.0 |  |  | 17.4 |  |  |
| Investments in qualified affordable housing partnerships, tax credit and other investments, net |  | 725,254 |  | 634,304 |  | 664,795 |  | 14.3 |  |  | 9.1 |  |  |
| Goodwill |  | 465,697 |  | 465,697 |  | 465,697 |  | — |  |  | — |  |  |
| Operating lease right-of-use assets |  | 105,411 |  | 107,588 |  | 99,785 |  | (2.0) |  |  | 5.6 |  |  |
| Other assets |  | 1,799,822 |  | 1,898,062 |  | 1,790,321 |  | (5.2) |  |  | 0.5 |  |  |
| Total assets |  | $ | 62,576,061 |  | $ | 62,394,283 |  | $ | 60,959,110 |  | 0.3 | % |  | 2.7 | % |  |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |
| Deposits |  | $ | 53,857,362 |  | $ | 54,343,354 |  | $ | 53,356,190 |  | (0.9) | % |  | 0.9 | % |  |
| Federal funds purchased |  | 200,000 |  | — |  | — |  | 100.0 |  |  | 100.0 |  |  |
| FHLB advances |  | 324,920 |  | 174,776 |  | 248,898 |  | 85.9 |  |  | 30.5 |  |  |
| Assets sold under repurchase agreements (“repurchase agreements”) |  | 611,785 |  | 611,785 |  | 300,000 |  | — |  |  | 103.9 |  |  |
| Long-term debt and finance lease liabilities |  | 152,610 |  | 152,663 |  | 151,795 |  | (0.0) |  |  | 0.5 |  |  |
| Operating lease liabilities |  | 113,477 |  | 115,387 |  | 107,107 |  | (1.7) |  |  | 5.9 |  |  |
| Accrued expenses and other liabilities |  | 1,655,239 |  | 1,386,836 |  | 1,104,919 |  | 19.4 |  |  | 49.8 |  |  |
| Total liabilities |  | 56,915,393 |  | 56,784,801 |  | 55,268,909 |  | 0.2 |  |  | 3.0 |  |  |
| Stockholders’ equity |  | 5,660,668 |  | 5,609,482 |  | 5,690,201 |  | 0.9 |  |  | (0.5) |  |  |
| Total liabilities and stockholders’ equity |  | $ | 62,576,061 |  | $ | 62,394,283 |  | $ | 60,959,110 |  | 0.3 | % |  | 2.7 | % |  |
| Book value per common share |  | $ | 40.17 |  | $ | 39.81 |  | $ | 40.10 |  | 0.9 | % |  | 0.2 | % |  |
| Tangible equity (1) per common share |  | $ | 36.80 |  | $ | 36.44 |  | $ | 36.75 |  | 1.0 |  |  | 0.1 |  |  |
| Number of common shares at period-end |  | 140,918 |  | 140,917 |  | 141,884 |  | 0.0 |  |  | (0.7) |  |  |
| Tangible equity to tangible assets ratio (1) |  | 8.35 | % |  | 8.29 | % |  | 8.62 | % |  | 6 |  | bps | (27) |  | bps |

(1)See reconciliation of GAAP to non-GAAP financial measures in Table 13.
7

EAST WEST BANCORP, INC. AND SUBSIDIARIES
TOTAL LOANS AND DEPOSITS DETAIL
($ in thousands)
(unaudited)
Table 2
|  |  |  |  |  |  |  |  | September 30, 2022 % Change
|  |  | September 30, 2022 |  | June 30, 2022 |  | September 30, 2021 |  | Qtr-o-Qtr |  | Yr-o-Yr
Loans: |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |
| Commercial and industrial (“C&I”) (1) |  | $ | 15,625,072 |  |  | $ | 15,377,117 |  |  | $ | 13,831,649 |  |  | 1.6 | % |  | 13.0 | %
| Commercial real estate (“CRE”): |  |  |  |  |  |  |  |  |  |
| CRE |  | 13,573,157 |  |  | 13,566,748 |  |  | 11,818,065 |  |  | — |  |  | 14.9 |
| Multifamily residential |  | 4,559,302 |  |  | 4,443,704 |  |  | 3,340,378 |  |  | 2.6 |  |  | 36.5 |
| Construction and land |  | 556,894 |  |  | 515,857 |  |  | 376,921 |  |  | 8.0 |  |  | 47.7 |
| Total CRE |  | 18,689,353 |  |  | 18,526,309 |  |  | 15,535,364 |  |  | 0.9 |  |  | 20.3 |
Consumer: |  |  |  |  |  |  |  |  |  |
| Residential mortgage: |  |  |  |  |  |  |  |  |  |
| Single-family residential |  | 10,855,345 |  |  | 10,234,473 |  |  | 9,021,801 |  |  | 6.1 |  |  | 20.3 |
| Home equity lines of credit (“HELOCs”) |  | 2,184,924 |  |  | 2,280,080 |  |  | 1,963,622 |  |  | (4.2) |  |  | 11.3 |
| Total residential mortgage |  | 13,040,269 |  |  | 12,514,553 |  |  | 10,985,423 |  |  | 4.2 |  |  | 18.7 |
| Other consumer |  | 87,561 |  |  | 84,097 |  |  | 129,269 |  |  | 4.1 |  |  | (32.3) |
Total loans HFI (2) |  | 47,442,255 |  |  | 46,502,076 |  |  | 40,481,705 |  |  | 2.0 |  |  | 17.2 |
Loans HFS |  | 14,500 |  |  | 28,464 |  |  | — |  |  | (49.1) |  |  | 100.0 |
| Total loans (2) |  | 47,456,755 |  |  | 46,530,540 |  |  | 40,481,705 |  |  | 2.0 |  |  | 17.2 |
Allowance for loan losses |  | (582,517) |  |  | (563,270) |  |  | (560,404) |  |  | 3.4 |  |  | 3.9 |
| Net loans (2) |  | $ | 46,874,238 |  |  | $ | 45,967,270 |  |  | $ | 39,921,301 |  |  | 2.0 |  |  | 17.4 |
Deposits: |  |  |  |  |  |  |  |  |  |
| Noninterest-bearing demand |  | $ | 21,645,394 |  |  | $ | 23,028,831 |  |  | $ | 23,175,471 |  |  | (6.0) | % |  | (6.6) | %
| Interest-bearing checking |  | 6,822,343 |  |  | 7,094,726 |  |  | 6,530,601 |  |  | (3.8) |  |  | 4.5 |
| Money market |  | 12,113,292 |  |  | 11,814,402 |  |  | 12,555,879 |  |  | 2.5 |  |  | (3.5) |
| Savings |  | 2,917,770 |  |  | 3,027,819 |  |  | 2,855,597 |  |  | (3.6) |  |  | 2.2 |
| Time deposits |  | 10,358,563 |  |  | 9,377,576 |  |  | 8,238,642 |  |  | 10.5 |  |  | 25.7 |
| Total deposits |  | $ | 53,857,362 |  |  | $ | 54,343,354 |  |  | $ | 53,356,190 |  |  | (0.9) | % |  | 0.9 | %

(1)Includes $110.9 million, $153.3 million and $807.3 million of Paycheck Protection Program (“PPP”) loans as of September 30, 2022, June 30, 2022 and September 30, 2021, respectively. Excluding PPP loans, total loans were $47.35 billion, $46.38 billion and $39.67 billion as of September 30, 2022, June 30, 2022 and September 30, 2021, respectively.
(2)Includes $(60.3) million, $(56.2) million and $(54.3) million of net deferred loan fees and net unamortized premiums as of September 30, 2022, June 30, 2022 and September 30, 2021, respectively.
8

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
($ and shares in thousands, except per share data)
(unaudited)
Table 3
|  |  | Three Months Ended |  | September 30, 2022 % Change
|  |  | September 30, 2022 |  | June 30, 2022 |  | September 30, 2021 |  | Qtr-o-Qtr |  | Yr-o-Yr
Interest and dividend income (1) |  | $ | 628,236 |  |  | $ | 499,754 |  |  | $ | 415,307 |  |  | 25.7 | % |  | 51.3 | %
Interest expense |  | 76,427 |  |  | 26,802 |  |  | 19,601 |  |  | 185.2 |  |  | 289.9 |
Net interest income before provision for (reversal of) credit losses |  | 551,809 |  |  | 472,952 |  |  | 395,706 |  |  | 16.7 |  |  | 39.4 |
Provision for (reversal of) credit losses |  | 27,000 |  |  | 13,500 |  |  | (10,000) |  |  | 100.0 |  |  | NM
Net interest income after provision for (reversal of) credit losses |  | 524,809 |  |  | 459,452 |  |  | 405,706 |  |  | 14.2 |  |  | 29.4 |
Noninterest income |  | 75,552 |  |  | 78,444 |  |  | 73,109 |  |  | (3.7) |  |  | 3.3 |
Noninterest expense |  | 215,973 |  |  | 196,860 |  |  | 205,384 |  |  | 9.7 |  |  | 5.2 |
Income before income taxes |  | 384,388 |  |  | 341,036 |  |  | 273,431 |  |  | 12.7 |  |  | 40.6 |
Income tax expense |  | 89,049 |  |  | 82,707 |  |  | 47,982 |  |  | 7.7 |  |  | 85.6 |
Net income |  | $ | 295,339 |  |  | $ | 258,329 |  |  | $ | 225,449 |  |  | 14.3 | % |  | 31.0 | %
Earnings per share (“EPS”) |  |  |  |  |  |  |  |  |  |
- Basic |  | $ | 2.10 |  |  | $ | 1.83 |  |  | $ | 1.59 |  |  | 14.7 | % |  | 31.9 | %
- Diluted |  | $ | 2.08 |  |  | $ | 1.81 |  |  | $ | 1.57 |  |  | 14.6 |  |  | 32.0 |
Weighted-average number of shares outstanding |  |  |  |  |  |  |  |  |  |
- Basic |  | 140,917 |  |  | 141,429 |  |  | 141,880 |  |  | (0.4) | % |  | (0.7) | %
- Diluted |  | 142,011 |  |  | 142,372 |  |  | 143,143 |  |  | (0.3) |  |  | (0.8) |
|  |  | Three Months Ended |  | September 30, 2022 % Change
|  |  | September 30, 2022 |  | June 30, 2022 |  | September 30, 2021 |  | Qtr-o-Qtr |  | Yr-o-Yr
Noninterest income: |  |  |  |  |  |  |  |  |  |
| Lending fees |  | $ | 20,289 |  |  | $ | 20,142 |  |  | $ | 17,516 |  |  | 0.7 | % |  | 15.8 | %
| Deposit account fees |  | 23,636 |  |  | 22,372 |  |  | 18,508 |  |  | 5.6 |  |  | 27.7 |
| Interest rate contracts and other derivative income |  | 8,761 |  |  | 9,801 |  |  | 7,156 |  |  | (10.6) |  |  | 22.4 |
| Foreign exchange income |  | 10,083 |  |  | 11,361 |  |  | 13,101 |  |  | (11.2) |  |  | (23.0) |
| Wealth management fees |  | 8,903 |  |  | 6,539 |  |  | 5,598 |  |  | 36.2 |  |  | 59.0 |
| Net gains on sales of loans |  | 2,129 |  |  | 917 |  |  | 3,329 |  |  | 132.2 |  |  | (36.0) |
| Gains on sales of AFS debt securities |  | — |  |  | 28 |  |  | 354 |  |  | (100.0) |  |  | (100.0) |
| Other investment (loss) income |  | (580) |  |  | 4,863 |  |  | 5,349 |  |  | (111.9) |  |  | (110.8) |
| Other income |  | 2,331 |  |  | 2,421 |  |  | 2,198 |  |  | (3.7) |  |  | 6.1 |
Total noninterest income |  | $ | 75,552 |  |  | $ | 78,444 |  |  | $ | 73,109 |  |  | (3.7) | % |  | 3.3 | %
Noninterest expense: |  |  |  |  |  |  |  |  |  |
| Compensation and employee benefits |  | $ | 127,580 |  |  | $ | 113,364 |  |  | $ | 105,751 |  |  | 12.5 | % |  | 20.6 | %
| Occupancy and equipment expense |  | 15,920 |  |  | 15,469 |  |  | 15,851 |  |  | 2.9 |  |  | 0.4 |
| Deposit insurance premiums and regulatory assessments |  | 4,875 |  |  | 4,927 |  |  | 4,641 |  |  | (1.1) |  |  | 5.0 |
| Deposit account expense |  | 6,707 |  |  | 5,671 |  |  | 4,136 |  |  | 18.3 |  |  | 62.2 |
| Data processing |  | 3,725 |  |  | 3,486 |  |  | 3,575 |  |  | 6.9 |  |  | 4.2 |
| Computer software expense |  | 6,889 |  |  | 6,572 |  |  | 8,426 |  |  | 4.8 |  |  | (18.2) |
| Consulting expense |  | 1,620 |  |  | 2,021 |  |  | 1,635 |  |  | (19.8) |  |  | (0.9) |
| Legal expense |  | 689 |  |  | 1,047 |  |  | 2,363 |  |  | (34.2) |  |  | (70.8) |
| Other operating expense |  | 28,094 |  |  | 29,324 |  |  | 20,998 |  |  | (4.2) |  |  | 33.8 |
| Amortization of tax credit and other investments |  | 19,874 |  |  | 14,979 |  |  | 38,008 |  |  | 32.7 |  |  | (47.7) |
Total noninterest expense |  | $ | 215,973 |  |  | $ | 196,860 |  |  | $ | 205,384 |  |  | 9.7 | % |  | 5.2 | %

NM - Not meaningful.
(1)Includes $524 thousand, $1.4 million and $15.2 million of interest income related to PPP loans for the three months ended September 30, 2022, June 30, 2022 and September 30, 2021, respectively.
9

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
($ and shares in thousands, except per share data)
(unaudited)
Table 4
|  |  | Nine Months Ended |  | September 30, 2022 % Change
|  |  | September 30, 2022 |  | September 30, 2021 |  | Yr-o-Yr
Interest and dividend income (1) |  | $ | 1,560,019 |  |  | $ | 1,196,026 |  |  | 30.4%
Interest expense |  | 119,645 |  |  | 70,152 |  |  | 70.6
Net interest income before provision for (reversal of) credit losses |  | 1,440,374 |  |  | 1,125,874 |  |  | 27.9
Provision for (reversal of) credit losses |  | 48,500 |  |  | (25,000) |  |  | NM
Net interest income after provision for (reversal of) credit losses |  | 1,391,874 |  |  | 1,150,874 |  |  | 20.9
Noninterest income |  | 233,739 |  |  | 214,406 |  |  | 9.0
Noninterest expense |  | 602,283 |  |  | 585,984 |  |  | 2.8
Income before income taxes |  | 1,023,330 |  |  | 779,296 |  |  | 31.3
Income tax expense |  | 232,010 |  |  | 124,111 |  |  | 86.9
Net income |  | $ | 791,320 |  |  | $ | 655,185 |  |  | 20.8%
EPS |  |  |  |  |  |
- Basic |  | $ | 5.59 |  |  | $ | 4.62 |  |  | 21.1%
- Diluted |  | $ | 5.55 |  |  | $ | 4.58 |  |  | 21.2
Weighted-average number of shares outstanding |  |  |  |  |  |
- Basic |  | 141,453 |  |  | 141,799 |  |  | (0.2)%
- Diluted |  | 142,601 |  |  | 143,051 |  |  | (0.3)
|  |  | Nine Months Ended |  | September 30, 2022 % Change
|  |  | September 30, 2022 |  | September 30, 2021 |  | Yr-o-Yr
Noninterest income: |  |  |  |  |  |
| Lending fees |  | $ | 59,869 |  |  | $ | 56,965 |  |  | 5.1%
| Deposit account fees |  | 66,323 |  |  | 51,233 |  |  | 29.5
| Interest rate contracts and other derivative income |  | 29,695 |  |  | 20,981 |  |  | 41.5
| Foreign exchange income |  | 34,143 |  |  | 35,634 |  |  | (4.2)
| Wealth management fees |  | 21,494 |  |  | 20,460 |  |  | 5.1
| Net gains on sales of loans |  | 5,968 |  |  | 6,601 |  |  | (9.6)
| Gains on sales of AFS debt securities |  | 1,306 |  |  | 1,178 |  |  | 10.9
| Other investment income |  | 5,910 |  |  | 13,870 |  |  | (57.4)
| Other income |  | 9,031 |  |  | 7,484 |  |  | 20.7
Total noninterest income |  | $ | 233,739 |  |  | $ | 214,406 |  |  | 9.0%
Noninterest expense: |  |  |  |  |  |
| Compensation and employee benefits |  | $ | 357,213 |  |  | $ | 318,985 |  |  | 12.0%
| Occupancy and equipment expense |  | 46,853 |  |  | 47,150 |  |  | (0.6)
| Deposit insurance premiums and regulatory assessments |  | 14,519 |  |  | 12,791 |  |  | 13.5
| Deposit account expense |  | 17,071 |  |  | 11,845 |  |  | 44.1
| Data processing |  | 10,876 |  |  | 12,088 |  |  | (10.0)
| Computer software expense |  | 20,755 |  |  | 23,106 |  |  | (10.2)
| Consulting expense |  | 5,474 |  |  | 4,978 |  |  | 10.0
| Legal expense |  | 2,454 |  |  | 5,840 |  |  | (58.0)
| Other operating expense |  | 78,315 |  |  | 58,544 |  |  | 33.8
| Amortization of tax credit and other investments |  | 48,753 |  |  | 90,657 |  |  | (46.2)
Total noninterest expense |  | $ | 602,283 |  |  | $ | 585,984 |  |  | 2.8%

NM - Not meaningful.
(1)Includes $7.0 million and $45.6 million of interest income related to PPP loans for the nine months ended September 30, 2022 and 2021, respectively.
10

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED AVERAGE BALANCES
($ in thousands)
(unaudited)
Table 5 |  |  |  |  |  |
|  | Three Months Ended |  | September 30, 2022 % Change |  | Nine Months Ended |  | September 30, 2022 % Change
|  |  | September 30, 2022 |  | June 30, 2022 |  | September 30, 2021 |  | Qtr-o-Qtr |  | Yr-o-Yr |  | September 30, 2022 |  | September 30, 2021 |  | Yr-o-Yr
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C&I (1) |  | $ | 15,282,661 |  |  | $ | 14,986,876 |  |  | $ | 13,531,338 |  |  | 2.0% |  | 12.9% |  | $ | 14,850,849 |  |  | $ | 13,678,462 |  |  | 8.6%
| CRE: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CRE |  | 13,533,482 |  |  | 13,049,058 |  |  | 11,747,607 |  |  | 3.7 |  | 15.2 |  | 12,958,562 |  |  | 11,564,946 |  |  | 12.1
| Multifamily residential |  | 4,531,351 |  |  | 4,112,411 |  |  | 3,248,281 |  |  | 10.2 |  | 39.5 |  | 4,133,975 |  |  | 3,139,209 |  |  | 31.7
| Construction and land |  | 532,800 |  |  | 475,933 |  |  | 415,812 |  |  | 11.9 |  | 28.1 |  | 467,731 |  |  | 480,514 |  |  | (2.7)
| Total CRE |  | 18,597,633 |  |  | 17,637,402 |  |  | 15,411,700 |  |  | 5.4 |  | 20.7 |  | 17,560,268 |  |  | 15,184,669 |  |  | 15.6
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Single-family residential |  | 10,676,022 |  |  | 9,624,242 |  |  | 8,962,533 |  |  | 10.9 |  | 19.1 |  | 9,809,549 |  |  | 8,645,135 |  |  | 13.5
| HELOCs |  | 2,216,355 |  |  | 2,290,378 |  |  | 1,912,629 |  |  | (3.2) |  | 15.9 |  | 2,230,060 |  |  | 1,793,928 |  |  | 24.3
| Total residential mortgage |  | 12,892,377 |  |  | 11,914,620 |  |  | 10,875,162 |  |  | 8.2 |  | 18.5 |  | 12,039,609 |  |  | 10,439,063 |  |  | 15.3
| Other consumer |  | 81,870 |  |  | 87,590 |  |  | 141,951 |  |  | (6.5) |  | (42.3) |  | 97,794 |  |  | 139,557 |  |  | (29.9)
| Total loans (2) |  | $ | 46,854,541 |  |  | $ | 44,626,488 |  |  | $ | 39,960,151 |  |  | 5.0% |  | 17.3% |  | $ | 44,548,520 |  |  | $ | 39,441,751 |  |  | 12.9%
Interest-earning assets |  | $ | 59,478,689 |  |  | $ | 58,668,677 |  |  | $ | 58,239,480 |  |  | 1.4% |  | 2.1% |  | $ | 58,949,457 |  |  | $ | 55,350,645 |  |  | 6.5%
Total assets |  | $ | 63,079,444 |  |  | $ | 62,232,841 |  |  | $ | 61,359,533 |  |  | 1.4% |  | 2.8% |  | $ | 62,361,618 |  |  | $ | 58,263,002 |  |  | 7.0%
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Noninterest-bearing demand |  | $ | 22,423,633 |  |  | $ | 23,887,452 |  |  | $ | 23,169,323 |  |  | (6.1)% |  | (3.2)% |  | $ | 23,244,247 |  |  | $ | 20,345,370 |  |  | 14.2%
| Interest-bearing checking |  | 6,879,632 |  |  | 6,712,890 |  |  | 6,646,515 |  |  | 2.5 |  | 3.5 |  | 6,747,710 |  |  | 6,571,231 |  |  | 2.7
| Money market |  | 12,351,571 |  |  | 12,319,930 |  |  | 12,604,827 |  |  | 0.3 |  | (2.0) |  | 12,526,222 |  |  | 12,262,173 |  |  | 2.2
| Savings |  | 2,961,634 |  |  | 2,970,007 |  |  | 2,792,702 |  |  | (0.3) |  | 6.0 |  | 2,954,098 |  |  | 2,715,114 |  |  | 8.8
| Time deposits |  | 9,435,063 |  |  | 8,239,571 |  |  | 8,283,265 |  |  | 14.5 |  | 13.9 |  | 8,596,728 |  |  | 8,635,249 |  |  | (0.4)
| Total deposits |  | $ | 54,051,533 |  |  | $ | 54,129,850 |  |  | $ | 53,496,632 |  |  | (0.1)% |  | 1.0% |  | $ | 54,069,005 |  |  | $ | 50,529,137 |  |  | 7.0%
Interest-bearing liabilities |  | $ | 32,703,323 |  |  | $ | 30,957,475 |  |  | $ | 31,039,410 |  |  | 5.6% |  | 5.4% |  | $ | 31,631,865 |  |  | $ | 31,099,675 |  |  | 1.7%
Stockholders’ equity |  | $ | 5,772,638 |  |  | $ | 5,682,427 |  |  | $ | 5,680,306 |  |  | 1.6% |  | 1.6% |  | $ | 5,765,637 |  |  | $ | 5,482,705 |  |  | 5.2%

(1)Average balances of PPP loans were $127.6 million, $223.2 million and $1.11 billion for the three months ended September 30, 2022, June 30, 2022 and September 30, 2021, respectively, and $252.8 million and $1.63 billion for the nine months ended September 30, 2022 and 2021, respectively.
(2)Includes loans HFS.
11

EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES |  |
($ in thousands) |  |
(unaudited) |  |
Table 6 |  |
|  |  | Three Months Ended |  |
|  |  | September 30, 2022 |  | June 30, 2022 |  |
|  |  | Average |  |  |  | Average |  | Average |  |  |  | Average |  |
|  |  | Balance |  | Interest |  | Yield/Rate (1) |  | Balance |  | Interest |  | Yield/Rate (1) |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Interest-bearing cash and deposits with banks |  | $ | 2,287,010 |  |  | $ | 9,080 |  |  | 1.58 | % |  | $ | 2,797,711 |  |  | $ | 4,787 |  |  | 0.69 | % |  |
| Resale agreements |  | 1,037,292 |  |  | 6,769 |  |  | 2.59 | % |  | 1,641,723 |  |  | 8,553 |  |  | 2.09 | % |  |
| AFS debt securities |  | 6,204,729 |  |  | 38,383 |  |  | 2.45 | % |  | 6,503,677 |  |  | 33,438 |  |  | 2.06 | % |  |
| HTM debt securities |  | 3,017,063 |  |  | 12,709 |  |  | 1.67 | % |  | 3,021,239 |  |  | 12,738 |  |  | 1.69 | % |  |
| Loans (2) |  | 46,854,541 |  |  | 560,452 |  |  | 4.75 | % |  | 44,626,488 |  |  | 439,416 |  |  | 3.95 | % |  |
| FHLB and FRB stock |  | 78,054 |  |  | 843 |  |  | 4.28 | % |  | 77,839 |  |  | 822 |  |  | 4.24 | % |  |
| Total interest-earning assets |  | 59,478,689 |  |  | 628,236 |  |  | 4.19 | % |  | 58,668,677 |  |  | 499,754 |  |  | 3.42 | % |  |
Noninterest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Cash and due from banks |  | 615,836 |  |  |  |  |  |  | 712,884 |  |  |  |  |  |  |
| Allowance for loan losses |  | (566,369) |  |  |  |  |  |  | (545,489) |  |  |  |  |  |  |
| Other assets |  | 3,551,288 |  |  |  |  |  |  | 3,396,769 |  |  |  |  |  |  |
| Total assets |  | $ | 63,079,444 |  |  |  |  |  |  | $ | 62,232,841 |  |  |  |  |  |  |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Checking deposits |  | $ | 6,879,632 |  |  | $ | 8,493 |  |  | 0.49 | % |  | $ | 6,712,890 |  |  | $ | 3,178 |  |  | 0.19 | % |  |
| Money market deposits |  | 12,351,571 |  |  | 33,101 |  |  | 1.06 | % |  | 12,319,930 |  |  | 8,892 |  |  | 0.29 | % |  |
| Savings deposits |  | 2,961,634 |  |  | 2,268 |  |  | 0.30 | % |  | 2,970,007 |  |  | 1,864 |  |  | 0.25 | % |  |
| Time deposits |  | 9,435,063 |  |  | 25,032 |  |  | 1.05 | % |  | 8,239,571 |  |  | 8,554 |  |  | 0.42 | % |  |
| Federal funds purchased and other short-term borrowings |  | 211,794 |  |  | 1,177 |  |  | 2.20 | % |  | 64,145 |  |  | 241 |  |  | 1.51 | % |  |
| FHLB advances |  | 86,243 |  |  | 392 |  |  | 1.80 | % |  | 138,960 |  |  | 559 |  |  | 1.61 | % |  |
| Repurchase agreements |  | 624,821 |  |  | 4,421 |  |  | 2.81 | % |  | 359,778 |  |  | 2,418 |  |  | 2.70 | % |  |
| Long-term debt and finance lease liabilities |  | 152,565 |  |  | 1,543 |  |  | 4.01 | % |  | 152,194 |  |  | 1,096 |  |  | 2.89 | % |  |
| Total interest-bearing liabilities |  | 32,703,323 |  |  | 76,427 |  |  | 0.93 | % |  | 30,957,475 |  |  | 26,802 |  |  | 0.35 | % |  |
Noninterest-bearing liabilities and stockholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Demand deposits |  | 22,423,633 |  |  |  |  |  |  | 23,887,452 |  |  |  |  |  |  |
| Accrued expenses and other liabilities |  | 2,179,850 |  |  |  |  |  |  | 1,705,487 |  |  |  |  |  |  |
| Stockholders’ equity |  | 5,772,638 |  |  |  |  |  |  | 5,682,427 |  |  |  |  |  |  |
| Total liabilities and stockholders’ equity |  | $ | 63,079,444 |  |  |  |  |  |  | $ | 62,232,841 |  |  |  |  |  |  |
Interest rate spread |  |  |  |  |  | 3.26 | % |  |  |  |  |  | 3.07 | % |  |
Net interest income and net interest margin |  |  |  | $ | 551,809 |  |  | 3.68 | % |  |  |  | $ | 472,952 |  |  | 3.23 | % |  |

(1)Annualized.
(2)Includes loans HFS. Average balances of PPP loans were $127.6 million and $223.2 million for the three months ended September 30, 2022 and June 30, 2022, respectively.
12

EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES |  |
($ in thousands) |  |
(unaudited) |  |
Table 7 |  |
|  | Three Months Ended |  |
| September 30, 2022 |  | September 30, 2021 |  |
| Average |  |  |  | Average |  | Average |  |  |  | Average |  |
| Balance |  | Interest |  | Yield/Rate (1) |  | Balance |  | Interest |  | Yield/Rate (1) |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Interest-bearing cash and deposits with banks |  | $ | 2,287,010 |  |  | $ | 9,080 |  |  | 1.58 | % |  | $ | 7,036,823 |  |  | $ | 4,521 |  |  | 0.25 | % |  |
| Resale agreements |  | 1,037,292 |  |  | 6,769 |  |  | 2.59 | % |  | 2,382,741 |  |  | 8,957 |  |  | 1.49 | % |  |
| AFS debt securities |  | 6,204,729 |  |  | 38,383 |  |  | 2.45 | % |  | 8,782,682 |  |  | 37,826 |  |  | 1.71 | % |  |
| HTM debt securities |  | 3,017,063 |  |  | 12,709 |  |  | 1.67 | % |  | — |  |  | — |  |  | — | % |  |
| Loans (2) |  | 46,854,541 |  |  | 560,452 |  |  | 4.75 | % |  | 39,960,151 |  |  | 363,503 |  |  | 3.61 | % |  |
| FHLB and FRB stock |  | 78,054 |  |  | 843 |  |  | 4.28 | % |  | 77,083 |  |  | 500 |  |  | 2.57 | % |  |
| Total interest-earning assets |  | 59,478,689 |  |  | 628,236 |  |  | 4.19 | % |  | 58,239,480 |  |  | 415,307 |  |  | 2.83 | % |  |
Noninterest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Cash and due from banks |  | 615,836 |  |  |  |  |  |  | 627,640 |  |  |  |  |  |  |
| Allowance for loan losses |  | (566,369) |  |  |  |  |  |  | (584,827) |  |  |  |  |  |  |
| Other assets |  | 3,551,288 |  |  |  |  |  |  | 3,077,240 |  |  |  |  |  |  |
| Total assets |  | $ | 63,079,444 |  |  |  |  |  |  | $ | 61,359,533 |  |  |  |  |  |  |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Checking deposits |  | $ | 6,879,632 |  |  | $ | 8,493 |  |  | 0.49 | % |  | $ | 6,646,515 |  |  | $ | 3,186 |  |  | 0.19 | % |  |
| Money market deposits |  | 12,351,571 |  |  | 33,101 |  |  | 1.06 | % |  | 12,604,827 |  |  | 3,446 |  |  | 0.11 | % |  |
| Savings deposits |  | 2,961,634 |  |  | 2,268 |  |  | 0.30 | % |  | 2,792,702 |  |  | 1,943 |  |  | 0.28 | % |  |
| Time deposits |  | 9,435,063 |  |  | 25,032 |  |  | 1.05 | % |  | 8,283,265 |  |  | 7,395 |  |  | 0.35 | % |  |
| Federal funds purchased and other short-term borrowings |  | 211,794 |  |  | 1,177 |  |  | 2.20 | % |  | 620 |  |  | — |  |  | — | % |  |
| FHLB advances |  | 86,243 |  |  | 392 |  |  | 1.80 | % |  | 248,614 |  |  | 857 |  |  | 1.37 | % |  |
| Repurchase agreements |  | 624,821 |  |  | 4,421 |  |  | 2.81 | % |  | 310,997 |  |  | 2,012 |  |  | 2.57 | % |  |
| Long-term debt and finance lease liabilities |  | 152,565 |  |  | 1,543 |  |  | 4.01 | % |  | 151,870 |  |  | 762 |  |  | 1.99 | % |  |
| Total interest-bearing liabilities |  | 32,703,323 |  |  | 76,427 |  |  | 0.93 | % |  | 31,039,410 |  |  | 19,601 |  |  | 0.25 | % |  |
Noninterest-bearing liabilities and stockholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Demand deposits |  | 22,423,633 |  |  |  |  |  |  | 23,169,323 |  |  |  |  |  |  |
| Accrued expenses and other liabilities |  | 2,179,850 |  |  |  |  |  |  | 1,470,494 |  |  |  |  |  |  |
| Stockholders’ equity |  | 5,772,638 |  |  |  |  |  |  | 5,680,306 |  |  |  |  |  |  |
| Total liabilities and stockholders’ equity |  | $ | 63,079,444 |  |  |  |  |  |  | $ | 61,359,533 |  |  |  |  |  |  |
Interest rate spread |  |  |  |  |  | 3.26 | % |  |  |  |  |  | 2.58 | % |  |
Net interest income and net interest margin |  |  |  | $ | 551,809 |  |  | 3.68 | % |  |  |  | $ | 395,706 |  |  | 2.70 | % |  |

(1)Annualized.
(2)Includes loans HFS. Average balances of PPP loans were $127.6 million and $1.11 billion for the three months ended September 30, 2022 and September 30, 2021, respectively.
13

EAST WEST BANCORP, INC. AND SUBSIDIARIES
YEAR-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 8 |  |
| Nine Months Ended |  |
September 30, 2022 |  | September 30, 2021 |  |
Average |  |  |  | Average |  | Average |  |  |  | Average |  |
Balance |  | Interest |  | Yield/Rate (1) |  | Balance |  | Interest |  | Yield/Rate (1) |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Interest-bearing cash and deposits with banks |  | $ | 3,175,596 |  |  | $ | 17,127 |  |  | 0.72 | % |  | $ | 6,078,982 |  |  | $ | 11,781 |  |  | 0.26 | % |  |
| Resale agreements |  | 1,588,452 |  |  | 23,705 |  |  | 2.00 | % |  | 1,994,776 |  |  | 23,077 |  |  | 1.55 | % |  |
| AFS debt securities |  | 6,886,268 |  |  | 106,290 |  |  | 2.06 | % |  | 7,755,029 |  |  | 101,616 |  |  | 1.75 | % |  |
| HTM debt securities |  | 2,672,797 |  |  | 33,645 |  |  | 1.68 | % |  | — |  |  | — |  |  | — | % |  |
| Loans (2) |  | 44,548,520 |  |  | 1,376,978 |  |  | 4.13 | % |  | 39,441,751 |  |  | 1,057,964 |  |  | 3.59 | % |  |
| FHLB and FRB stock |  | 77,824 |  |  | 2,274 |  |  | 3.91 | % |  | 80,107 |  |  | 1,588 |  |  | 2.65 | % |  |
| Total interest-earning assets |  | 58,949,457 |  |  | 1,560,019 |  |  | 3.54 | % |  | 55,350,645 |  |  | 1,196,026 |  |  | 2.89 | % |  |
Noninterest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Cash and due from banks |  | 656,772 |  |  |  |  |  |  | 602,830 |  |  |  |  |  |  |
| Allowance for loan losses |  | (551,818) |  |  |  |  |  |  | (603,523) |  |  |  |  |  |  |
| Other assets |  | 3,307,207 |  |  |  |  |  |  | 2,913,050 |  |  |  |  |  |  |
| Total assets |  | $ | 62,361,618 |  |  |  |  |  |  | $ | 58,263,002 |  |  |  |  |  |  |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Checking deposits |  | $ | 6,747,711 |  |  | $ | 13,073 |  |  | 0.26 | % |  | $ | 6,571,231 |  |  | $ | 11,177 |  |  | 0.23 | % |  |
| Money market deposits |  | 12,526,222 |  |  | 45,196 |  |  | 0.48 | % |  | 12,262,173 |  |  | 11,869 |  |  | 0.13 | % |  |
| Savings deposits |  | 2,954,098 |  |  | 5,836 |  |  | 0.26 | % |  | 2,715,114 |  |  | 5,762 |  |  | 0.28 | % |  |
| Time deposits |  | 8,596,728 |  |  | 40,266 |  |  | 0.63 | % |  | 8,635,250 |  |  | 26,982 |  |  | 0.42 | % |  |
| Federal funds purchased and other short-term borrowings |  | 93,370 |  |  | 1,427 |  |  | 2.04 | % |  | 1,871 |  |  | 42 |  |  | 3.00 | % |  |
| FHLB advances |  | 128,137 |  |  | 1,529 |  |  | 1.60 | % |  | 457,273 |  |  | 6,025 |  |  | 1.76 | % |  |
| Repurchase agreements |  | 433,340 |  |  | 8,855 |  |  | 2.73 | % |  | 304,745 |  |  | 5,981 |  |  | 2.62 | % |  |
| Long-term debt and finance lease liabilities |  | 152,259 |  |  | 3,463 |  |  | 3.04 | % |  | 152,018 |  |  | 2,314 |  |  | 2.04 | % |  |
| Total interest-bearing liabilities |  | 31,631,865 |  |  | 119,645 |  |  | 0.51 | % |  | 31,099,675 |  |  | 70,152 |  |  | 0.30 | % |  |
Noninterest-bearing liabilities and stockholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Demand deposits |  | 23,244,247 |  |  |  |  |  |  | 20,345,370 |  |  |  |  |  |  |
| Accrued expenses and other liabilities |  | 1,719,869 |  |  |  |  |  |  | 1,335,252 |  |  |  |  |  |  |
| Stockholders’ equity |  | 5,765,637 |  |  |  |  |  |  | 5,482,705 |  |  |  |  |  |  |
| Total liabilities and stockholders’ equity |  | $ | 62,361,618 |  |  |  |  |  |  | $ | 58,263,002 |  |  |  |  |  |  |
Interest rate spread |  |  |  |  |  | 3.03 | % |  |  |  |  |  | 2.59 | % |  |
Net interest income and net interest margin |  |  |  | $ | 1,440,374 |  |  | 3.27 | % |  |  |  | $ | 1,125,874 |  |  | 2.72 | % |  |

(1)Annualized.
(2)Includes loans HFS. Average balances of PPP loans were $252.8 million and $1.63 billion for the nine months ended September 30, 2022 and 2021, respectively.
14

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED RATIOS
(unaudited)
Table 9
|  | Three Months Ended (1) |  | September 30, 2022 Basis Point Change
|  |  | September 30, 2022 |  | June 30, 2022 |  | September 30, 2021 |  | Qtr-o-Qtr |  | Yr-o-Yr |
| Return on average assets |  | 1.86 | % |  | 1.66 | % |  | 1.46 | % |  | 20 |  | bps | 40 |  | bps
| Return on average equity |  | 20.30 | % |  | 18.23 | % |  | 15.75 | % |  | 207 |  |  | 455 |  |
| Tangible return on average tangible equity (2) |  | 22.16 | % |  | 19.94 | % |  | 17.25 | % |  | 222 |  |  | 491 |  |
| Interest rate spread |  | 3.26 | % |  | 3.07 | % |  | 2.58 | % |  | 19 |  |  | 68 |  |
| Net interest margin |  | 3.68 | % |  | 3.23 | % |  | 2.70 | % |  | 45 |  |  | 98 |  |
| Average loan yield |  | 4.75 | % |  | 3.95 | % |  | 3.61 | % |  | 80 |  |  | 114 |  |
| Yield on average interest-earning assets |  | 4.19 | % |  | 3.42 | % |  | 2.83 | % |  | 77 |  |  | 136 |  |
| Average cost of interest-bearing deposits |  | 0.86 | % |  | 0.30 | % |  | 0.21 | % |  | 56 |  |  | 65 |  |
| Average cost of deposits |  | 0.51 | % |  | 0.17 | % |  | 0.12 | % |  | 34 |  |  | 39 |  |
| Average cost of funds |  | 0.55 | % |  | 0.20 | % |  | 0.14 | % |  | 35 |  |  | 41 |  |
| Adjusted pre-tax, pre-provision profitability ratio (3) |  | 2.72 | % |  | 2.38 | % |  | 1.95 | % |  | 34 |  |  | 77 |  |
| Adjusted noninterest expense/average assets (3) |  | 1.23 | % |  | 1.17 | % |  | 1.08 | % |  | 6 |  |  | 15 |  |
| Efficiency ratio |  | 34.43 | % |  | 35.70 | % |  | 43.81 | % |  | (127) |  |  | (938) |  |
| Adjusted efficiency ratio (3) |  | 31.18 | % |  | 32.90 | % |  | 35.55 | % |  | (172) |  | bps | (437) |  | bps
|  |  | Nine Months Ended (1) |  | September 30, 2022 Basis Point Change |  |  |  |
|  |  | September 30, 2022 |  | September 30, 2021 |  | Yr-o-Yr |  |  |  |  |
| Return on average assets |  | 1.70 | % |  | 1.50 | % |  | 20 |  | bps |  |  |
| Return on average equity |  | 18.35 | % |  | 15.98 | % |  | 237 |  |  |  |  |  |
| Tangible return on average tangible equity (2) |  | 20.04 | % |  | 17.56 | % |  | 248 |  |  |  |  |  |
| Interest rate spread |  | 3.03 | % |  | 2.59 | % |  | 44 |  |  |  |  |  |
| Net interest margin |  | 3.27 | % |  | 2.72 | % |  | 55 |  |  |  |  |  |
| Average loan yield |  | 4.13 | % |  | 3.59 | % |  | 54 |  |  |  |  |  |
| Yield on average interest-earning assets |  | 3.54 | % |  | 2.89 | % |  | 65 |  |  |  |  |  |
| Average cost of interest-bearing deposits |  | 0.45 | % |  | 0.25 | % |  | 20 |  |  |  |  |  |
| Average cost of deposits |  | 0.26 | % |  | 0.15 | % |  | 11 |  |  |  |  |  |
| Average cost of funds |  | 0.29 | % |  | 0.18 | % |  | 11 |  |  |  |  |  |
| Adjusted pre-tax, pre-provision profitability ratio (3) |  | 2.41 | % |  | 1.94 | % |  | 47 |  |  |  |  |  |
| Adjusted noninterest expense/average assets (3) |  | 1.18 | % |  | 1.13 | % |  | 5 |  |  |  |  |  |
| Efficiency ratio |  | 35.98 | % |  | 43.72 | % |  | (774) |  |  |  |  |  |
| Adjusted efficiency ratio (3) |  | 32.98 | % |  | 36.80 | % |  | (382) |  | bps |  |  |

(1)Annualized except for efficiency ratio.
(2)See reconciliation of GAAP to non-GAAP financial measures in Table 13.
(3)See reconciliation of GAAP to non-GAAP financial measures in Table 12.
15

EAST WEST BANCORP, INC. AND SUBSIDIARIES
ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE SHEET CREDIT EXPOSURES
($ in thousands)
(unaudited)
Table 10
|  |  | Three Months Ended September 30, 2022
|  |  | Commercial |  |  |  |  | Consumer |  |
|  |  | C&I |  |  |  |  |  |  | Total CRE |  |  |  |  | Total Residential Mortgage |  | Other Consumer |  | Total
Allowance for loan losses, June 30, 2022 |  |  | $ | 363,282 |  |  |  |  |  |  |  | $ | 173,479 |  |  |  |  |  | $ | 25,060 |  |  | $ | 1,449 |  |  | $ | 563,270 |
Provision for credit losses on loans | (a) |  | 9,575 |  |  |  |  |  |  |  | 11,163 |  |  |  |  |  | 6,281 |  |  | 255 |  |  | 27,274 |
Gross charge-offs |  |  | (6,894) |  |  |  |  |  |  |  | (6,226) |  |  |  |  |  | (775) |  |  | (10) |  |  | (13,905) |
Gross recoveries |  |  | 7,172 |  |  |  |  |  |  |  | 71 |  |  |  |  |  | 21 |  |  | — |  |  | 7,264 |
Total net recoveries (charge-offs) |  |  | 278 |  |  |  |  |  |  |  | (6,155) |  |  |  |  |  | (754) |  |  | (10) |  |  | (6,641) |
Foreign currency translation adjustment |  |  | (1,386) |  |  |  |  |  |  |  | — |  |  |  |  |  | — |  |  | — |  |  | (1,386) |
Allowance for loan losses, September 30, 2022 |  |  | $ | 371,749 |  |  |  |  |  |  |  | $ | 178,487 |  |  |  |  |  | $ | 30,587 |  |  | $ | 1,694 |  |  | $ | 582,517 |

|  |  | Three Months Ended June 30, 2022 |  |
|  |  | Commercial |  |  |  |  | Consumer |  |  |  |  |
|  |  | C&I |  |  |  |  |  |  | Total CRE |  |  |  |  | Total Residential Mortgage |  | Other Consumer |  | Total |  |  |
Allowance for loan losses, March 31, 2022 |  |  | $ | 339,446 |  |  |  |  |  |  |  | $ | 182,296 |  |  |  |  |  | $ | 21,958 |  |  | $ | 1,985 |  |  | $ | 545,685 |  |  |  |
Provision for (reversal of) credit losses on loans | (a) |  | 19,030 |  |  |  |  |  |  |  | (9,181) |  |  |  |  |  | 3,122 |  |  | (502) |  |  | 12,469 |  |  |  |
Gross charge-offs |  |  | (240) |  |  |  |  |  |  |  | (679) |  |  |  |  |  | (193) |  |  | (34) |  |  | (1,146) |  |  |  |
Gross recoveries |  |  | 6,514 |  |  |  |  |  |  |  | 1,043 |  |  |  |  |  | 173 |  |  | — |  |  | 7,730 |  |  |  |
Total net recoveries (charge-offs) |  |  | 6,274 |  |  |  |  |  |  |  | 364 |  |  |  |  |  | (20) |  |  | (34) |  |  | 6,584 |  |  |  |
Foreign currency translation adjustment |  |  | (1,468) |  |  |  |  |  |  |  | — |  |  |  |  |  | — |  |  | — |  |  | (1,468) |  |  |  |
Allowance for loan losses, June 30, 2022 |  |  | $ | 363,282 |  |  |  |  |  |  |  | $ | 173,479 |  |  |  |  |  | $ | 25,060 |  |  | $ | 1,449 |  |  | $ | 563,270 |  |  |  |

|  |  | Three Months Ended September 30, 2021
|  |  | Commercial |  |  |  |  | Consumer |  |  |
|  |  | C&I |  |  |  |  |  |  | Total CRE |  |  |  |  | Total Residential Mortgage |  | Other Consumer |  | Total |
Allowance for loan losses, June 30, 2021 |  |  | $ | 362,528 |  |  |  |  |  |  |  | $ | 199,530 |  |  |  |  |  | $ | 19,468 |  |  | $ | 4,198 |  |  | $ | 585,724 |  |
(Reversal of) provision for credit losses on loans | (a) |  | (23,364) |  |  |  |  |  |  |  | 8,527 |  |  |  |  |  | 2,972 |  |  | 130 |  |  | (11,735) |  |
Gross charge-offs |  |  | (1,154) |  |  |  |  |  |  |  | (16,903) |  |  |  |  |  | (912) |  |  | (10) |  |  | (18,979) |  |
Gross recoveries |  |  | 4,203 |  |  |  |  |  |  |  | 1,106 |  |  |  |  |  | 156 |  |  | — |  |  | 5,465 |  |
Total net recoveries (charge-offs) |  |  | 3,049 |  |  |  |  |  |  |  | (15,797) |  |  |  |  |  | (756) |  |  | (10) |  |  | (13,514) |  |
Foreign currency translation adjustment |  |  | (71) |  |  |  |  |  |  |  | — |  |  |  |  |  | — |  |  | — |  |  | (71) |  |
Allowance for loan losses, September 30, 2021 |  |  | $ | 342,142 |  |  |  |  |  |  |  | $ | 192,260 |  |  |  |  |  | $ | 21,684 |  |  | $ | 4,318 |  |  | $ | 560,404 |  |

16

EAST WEST BANCORP, INC. AND SUBSIDIARIES
ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE-SHEET CREDIT EXPOSURES
($ in thousands)
(unaudited)
Table 10 (continued)
|  |  | Nine Months Ended September 30, 2022
|  |  | Commercial |  |  |  |  | Consumer |  |
|  |  | C&I |  |  |  |  |  |  | Total CRE |  |  |  |  | Total Residential Mortgage |  | Other Consumer |  | Total
Allowance for loan losses, December 31, 2021 |  |  | $ | 338,252 |  |  |  |  |  |  |  | $ | 180,808 |  |  |  |  |  | $ | 20,595 |  |  | $ | 1,924 |  |  | $ | 541,579 |
Provision for (reversal of) credit losses on loans | (a) |  | 37,867 |  |  |  |  |  |  |  | 3,640 |  |  |  |  |  | 10,628 |  |  | (140) |  |  | 51,995 |
Gross charge-offs |  |  | (18,322) |  |  |  |  |  |  |  | (7,304) |  |  |  |  |  | (968) |  |  | (90) |  |  | (26,684) |
Gross recoveries |  |  | 16,688 |  |  |  |  |  |  |  | 1,343 |  |  |  |  |  | 332 |  |  | — |  |  | 18,363 |
Total net charge-offs |  |  | (1,634) |  |  |  |  |  |  |  | (5,961) |  |  |  |  |  | (636) |  |  | (90) |  |  | (8,321) |
Foreign currency translation adjustment |  |  | (2,736) |  |  |  |  |  |  |  | — |  |  |  |  |  | — |  |  | — |  |  | (2,736) |
Allowance for loan losses, September 30, 2022 |  |  | $ | 371,749 |  |  |  |  |  |  |  | $ | 178,487 |  |  |  |  |  | $ | 30,587 |  |  | $ | 1,694 |  |  | $ | 582,517 |

|  |  | Nine Months Ended September 30, 2021 |  |  |
|  |  | Commercial |  |  |  |  | Consumer |  |  |  |  |
|  |  | C&I |  |  |  |  |  |  | Total CRE |  |  |  |  | Total Residential Mortgage |  | Other Consumer |  | Total |  |  |
Allowance for loan losses, December 31, 2020 |  |  | $ | 398,040 |  |  |  |  |  |  |  | $ | 201,603 |  |  |  |  |  | $ | 18,210 |  |  | $ | 2,130 |  |  | $ | 619,983 |  |  |  |
(Reversal of) provision for credit losses on loans | (a) |  | (42,127) |  |  |  |  |  |  |  | 16,198 |  |  |  |  |  | 4,229 |  |  | 2,226 |  |  | (19,474) |  |  |  |
Gross charge-offs |  |  | (20,162) |  |  |  |  |  |  |  | (28,642) |  |  |  |  |  | (1,091) |  |  | (43) |  |  | (49,938) |  |  |  |
Gross recoveries |  |  | 6,301 |  |  |  |  |  |  |  | 3,101 |  |  |  |  |  | 336 |  |  | 5 |  |  | 9,743 |  |  |  |
Total net charge-offs |  |  | (13,861) |  |  |  |  |  |  |  | (25,541) |  |  |  |  |  | (755) |  |  | (38) |  |  | (40,195) |  |  |
Foreign currency translation adjustment |  |  | 90 |  |  |  |  |  |  |  | — |  |  |  |  |  | — |  |  | — |  |  | 90 |  |  |
Allowance for loan losses, September 30, 2021 |  |  | $ | 342,142 |  |  |  |  |  |  |  | $ | 192,260 |  |  |  |  |  | $ | 21,684 |  |  | $ | 4,318 |  |  | $ | 560,404 |  |  |  |

|  |  | Three Months Ended |  | Nine Months Ended
|  |  | September 30, 2022 |  | June 30, 2022 |  | September 30, 2021 |  | September 30, 2022 |  | September 30, 2021
Unfunded Credit Facilities |  |  |  |  |  |  |  |  |  |  |
Allowance for unfunded credit commitments, beginning of period (1) |  |  | $ | 24,304 |  |  | $ | 23,262 |  |  | $ | 26,300 |  |  | $ | 27,514 |  |  | $ | 33,577 |
(Reversal of) provision for credit losses on unfunded credit commitments | (b) |  | (274) |  |  | 1,031 |  |  | 1,735 |  |  | (3,495) |  |  | (5,526) |
Foreign currency translation adjustment |  |  | 11 |  |  | 11 |  |  | 1 |  |  | 22 |  |  | (15) |
Allowance for unfunded credit commitments, end of period (1) |  |  | $ | 24,041 |  |  | $ | 24,304 |  |  | $ | 28,036 |  |  | $ | 24,041 |  |  | $ | 28,036 |
Provision for (reversal of) credit losses | (a)+(b) |  | $ | 27,000 |  |  | $ | 13,500 |  |  | $ | (10,000) |  |  | $ | 48,500 |  |  | $ | (25,000) |

(1)Included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheet.
17

| EAST WEST BANCORP, INC. AND SUBSIDIARIES |
| CRITICIZED LOANS, NONPERFORMING ASSETS AND CREDIT QUALITY RATIOS |
| ($ in thousands) |
| (unaudited) |
Table 11 |
Criticized Loans |  | September 30, 2022 |  | June 30, 2022 |  | September 30, 2021 |
Special mention loans |  | $ | 470,964 |  |  | $ | 590,227 |  |  | $ | 448,497 |  |
Classified loans |  | 434,242 |  |  | 432,414 |  |  | 561,787 |  |
Total criticized loans (1) |  | $ | 905,206 |  |  | $ | 1,022,641 |  |  | $ | 1,010,284 |  |
Nonperforming Assets |  | September 30, 2022 |  | June 30, 2022 |  | September 30, 2021 |
Nonaccrual loans: |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |
| C&I |  | $ | 47,988 |  |  | $ | 40,053 |  |  | $ | 97,157 |  |
| Total CRE |  | 11,209 |  |  | 12,742 |  |  | 15,359 |  |
Consumer: |  |  |  |  |  |  |
| Total residential mortgage |  | 23,309 |  |  | 37,129 |  |  | 18,153 |  |
| Other consumer |  | 37 |  |  | 11 |  |  | 2,491 |  |
| Total nonaccrual loans |  | 82,543 |  |  | 89,935 |  |  | 133,160 |  |
Other real estate owned, net |  | — |  |  | — |  |  | 28,800 |  |
Other nonperforming assets |  | — |  |  | — |  |  | 10,681 |  |
Nonperforming loans HFS |  | 14,500 |  |  | — |  |  | — |  |
| Total nonperforming assets |  | $ | 97,043 |  |  | $ | 89,935 |  |  | $ | 172,641 |  |
Credit Quality Ratios |  | September 30, 2022 |  | June 30, 2022 |  | September 30, 2021 |
Annualized quarterly net charge-offs (recoveries) to average loans HFI |  | 0.06 | % |  | (0.06) | % |  | 0.13 | % |
Special mention loans to loans HFI |  | 0.99 | % |  | 1.27 | % |  | 1.11 | % |
Classified loans to loans HFI |  | 0.92 | % |  | 0.93 | % |  | 1.39 | % |
Criticized loans to loans HFI |  | 1.91 | % |  | 2.20 | % |  | 2.50 | % |
Nonperforming assets to total assets |  | 0.16 | % |  | 0.14 | % |  | 0.28 | % |
Nonaccrual loans to loans HFI |  | 0.17 | % |  | 0.19 | % |  | 0.33 | % |
Allowance for loan losses to loans HFI |  | 1.23 | % |  | 1.21 | % |  | 1.38 | % |

(1)Excludes loans HFS.
18

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 revenue. Adjusted pre-tax, pre-provision profitability ratio represents total revenue less adjusted noninterest expense, divided by average total assets. Adjusted noninterest expense excludes the amortization of tax credit and other investments and the amortization of core deposit intangibles. Management believes that the measures and ratios presented below provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods.
|  |  |  | Three Months Ended
|  |  |  | September 30, 2022 |  | June 30, 2022 |  | September 30, 2021
Net interest income before provision for (reversal of) credit losses |  |  |  | $ | 551,809 |  |  | $ | 472,952 |  |  | $ | 395,706 |
Total noninterest income |  |  |  | 75,552 |  |  | 78,444 |  |  | 73,109 |
Total revenue |  | (a) |  | $ | 627,361 |  |  | $ | 551,396 |  |  | $ | 468,815 |
Total noninterest expense |  | (b) |  | $ | 215,973 |  |  | $ | 196,860 |  |  | $ | 205,384 |
Less: Amortization of tax credit and other investments |  |  |  | (19,874) |  |  | (14,979) |  |  | (38,008) |
Amortization of core deposit intangibles |  |  |  | (485) |  |  | (488) |  |  | (705) |
Adjusted noninterest expense |  | (c) |  | $ | 195,614 |  |  | $ | 181,393 |  |  | $ | 166,671 |
Efficiency ratio |  | (b)/(a) |  | 34.43 | % |  | 35.70 | % |  | 43.81 | %
Adjusted efficiency ratio |  | (c)/(a) |  | 31.18 | % |  | 32.90 | % |  | 35.55 | %
Adjusted pre-tax, pre-provision income |  | (a)-(c) = (d) |  | $ | 431,747 |  |  | $ | 370,003 |  |  | $ | 302,144 |
Average total assets |  | (e) |  | $ | 63,079,444 |  |  | $ | 62,232,841 |  |  | $ | 61,359,533 |
Adjusted pre-tax, pre-provision profitability ratio (1) |  | (d)/(e) |  | 2.72 | % |  | 2.38 | % |  | 1.95 | %
Adjusted noninterest expense/average assets (1) |  | (c)/(e) |  | 1.23 | % |  | 1.17 | % |  | 1.08 | %
|  |  |  | Nine Months Ended |  |
|  |  |  | September 30, 2022 |  | September 30, 2021 |  |
Net interest income before provision for (reversal of) credit losses |  |  |  | $ | 1,440,374 |  |  | $ | 1,125,874 |  |  |
Total noninterest income |  |  |  | 233,739 |  |  | 214,406 |  |  |
Total revenue |  | (f) |  | $ | 1,674,113 |  |  | $ | 1,340,280 |  |  |
Total noninterest expense |  | (g) |  | $ | 602,283 |  |  | $ | 585,984 |  |  |
Less: Amortization of tax credit and other investments |  |  |  | (48,753) |  |  | (90,657) |  |  |
Amortization of core deposit intangibles |  |  |  | (1,484) |  |  | (2,147) |  |  |
Adjusted noninterest expense |  | (h) |  | $ | 552,046 |  |  | $ | 493,180 |  |  |
Efficiency ratio |  | (g)/(f) |  | 35.98 | % |  | 43.72 | % |  |
Adjusted efficiency ratio |  | (h)/(f) |  | 32.98 | % |  | 36.80 | % |  |
Adjusted pre-tax, pre-provision income |  | (f)-(h) = (i) |  | $ | 1,122,067 |  |  | $ | 847,100 |  |  |
Average total assets |  | (j) |  | $ | 62,361,618 |  |  | $ | 58,263,002 |  |  |
Adjusted pre-tax, pre-provision profitability ratio (1) |  | (i)/(j) |  | 2.41 | % |  | 1.94 | % |  |
Adjusted noninterest expense/average assets (1) |  | (h)/(j) |  | 1.18 | % |  | 1.13 | % |  |

(1)Annualized.
19

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 equity and tangible equity to tangible assets ratio are non-GAAP financial measures. Tangible equity 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.
|  |  |  | September 30, 2022 |  | June 30, 2022 |  | September 30, 2021
Stockholders’ equity |  | (a) |  | $ | 5,660,668 |  |  | $ | 5,609,482 |  |  | $ | 5,690,201 |
Less: Goodwill |  |  |  | (465,697) |  |  | (465,697) |  |  | (465,697) |
Other intangible assets (1) |  |  |  | (8,667) |  |  | (8,537) |  |  | (9,849) |
Tangible equity |  | (b) |  | $ | 5,186,304 |  |  | $ | 5,135,248 |  |  | $ | 5,214,655 |
Total assets |  | (c) |  | $ | 62,576,061 |  |  | $ | 62,394,283 |  |  | $ | 60,959,110 |
Less: Goodwill |  |  |  | (465,697) |  |  | (465,697) |  |  | (465,697) |
Other intangible assets (1) |  |  |  | (8,667) |  |  | (8,537) |  |  | (9,849) |
Tangible assets |  | (d) |  | $ | 62,101,697 |  |  | $ | 61,920,049 |  |  | $ | 60,483,564 |
Total stockholders’ equity to total assets ratio |  | (a)/(c) |  | 9.05 | % |  | 8.99 | % |  | 9.33 | %
Tangible equity to tangible assets ratio |  | (b)/(d) |  | 8.35 | % |  | 8.29 | % |  | 8.62 | %

Tangible return on average tangible equity represents tangible net income divided by average tangible equity. Tangible net income excludes the after-tax impacts of the amortization of core deposit intangibles and mortgage servicing assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.
|  |  |  | Three Months Ended |  | Nine Months Ended
|  |  |  | September 30, 2022 |  | June 30, 2022 |  | September 30, 2021 |  | September 30, 2022 |  | September 30, 2021
Net income |  | (e) |  | $ | 295,339 |  |  | $ | 258,329 |  |  | $ | 225,449 |  |  | $ | 791,320 |  |  | $ | 655,185 |
Add: Amortization of core deposit intangibles |  |  |  | 485 |  |  | 488 |  |  | 705 |  |  | 1,484 |  |  | 2,147 |
Amortization of mortgage servicing assets |  |  |  | 340 |  |  | 364 |  |  | 430 |  |  | 1,096 |  |  | 1,264 |
Tax effect of amortization adjustments (2) |  |  |  | (237) |  |  | (245) |  |  | (322) |  |  | (742) |  |  | (968) |
Tangible net income |  | (f) |  | $ | 295,927 |  |  | $ | 258,936 |  |  | $ | 226,262 |  |  | $ | 793,158 |  |  | $ | 657,628 |
Average stockholders’ equity |  | (g) |  | $ | 5,772,638 |  |  | $ | 5,682,427 |  |  | $ | 5,680,306 |  |  | $ | 5,765,637 |  |  | $ | 5,482,705 |
Less: Average goodwill |  |  |  | (465,697) |  |  | (465,697) |  |  | (465,697) |  |  | (465,697) |  |  | (465,697) |
Average other intangible assets (1) |  |  |  | (8,379) |  |  | (8,827) |  |  | (10,135) |  |  | (8,801) |  |  | (10,847) |
Average tangible equity |  | (h) |  | $ | 5,298,562 |  |  | $ | 5,207,903 |  |  | $ | 5,204,474 |  |  | $ | 5,291,139 |  |  | $ | 5,006,161 |
Return on average equity (3) |  | (e)/(g) |  | 20.30 | % |  | 18.23 | % |  | 15.75 | % |  | 18.35 | % |  | 15.98 | %
Tangible return on average tangible equity (3) |  | (f)/(h) |  | 22.16 | % |  | 19.94 | % |  | 17.25 | % |  | 20.04 | % |  | 17.56 | %

(1)Includes core deposit intangibles and mortgage servicing assets.
(2)Applied statutory tax rate of 28.77% for the three and nine months ended September 30, 2022, and the three months ended June 30, 2022. Applied statutory tax rate of 28.37% for the three and nine months ended September 30, 2021.
(3)Annualized.
20