EX-99.1 2 ewbc9918k12312022.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 RECORD NET INCOME FOR FULL YEAR 2022
OF $1.1 BILLION AND RECORD DILUTED EARNINGS PER SHARE OF $7.92;
INCREASES DIVIDEND BY 20%
Pasadena, California – January 26, 2023 – East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, reported its financial results for the full year and fourth quarter of 2022. Full year 2022 net income was a record $1.1 billion, or $7.92 per diluted share, which grew 30% year-over-year. Fourth quarter 2022 net income was $336.8 million, or $2.37 per diluted share, which grew 56% year-over-year. Total loans reached a record $48.2 billion as of December 31, 2022, up 16% year-over-year, and total deposits grew to a record $56.0 billion, up 5% from a year ago.
“2023 marks the 50th anniversary of East West. I am very proud of the milestones and growth that East West has achieved throughout its history. We have distinguished ourselves with a long, well-established track record of strong financial performance,” stated Dominic Ng, Chairman and Chief Executive Officer of East West. “For the fourth quarter of 2022, we earned an industry-leading 2.1% return on average assets and 25.0% return on average tangible equity 1.”
“East West Federal Savings Bank was founded in 1973 with a mission to serve the financial needs of Asian immigrants in Los Angeles, who were overlooked by mainstream banks. As our customers grew and prospered, achieving their personal and business ambitions, so did East West. With over $60 billion in total assets and annual earnings over $1 billion, East West has grown to be the largest independent bank headquartered in Southern California. Our customer base and geographic footprint expanded, along with the breadth and technological sophistication of our lending, deposit, and fee-based products and services. Today, we provide a seamless banking experience for clients on both sides of the Pacific, executing on our vision to be the bridge between the East and the West,” continued Ng.
“In celebrating our 50th anniversary, we are honored to be the bank of choice for our customers, and thankful and proud of all our associates for their dedication to our clients and East West. We are positive about 2023 and expect to continue our track record of outstanding profitability, achieved through solid revenue growth and disciplined expense management, while maintaining healthy capital levels. As we start the year, we are pleased to announce a 20% increase in our common stock dividend,” concluded Ng.

1 Return on average tangible equity is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP measures in Table 13.

1

FINANCIAL HIGHLIGHTS

|  |  | Twelve Months Ended |  |  |  |  |  | Year-over-Year Change
| ($ in millions, except per share data) |  | December 31, 2022 |  |  |  |  |  |  |  |  |  | $ |  | %
| Total Loans |  | $48,228 |  |  |  |  |  |  |  |  |  | $6,534 |  | 16%
| Total Deposits |  | 55,968 |  |  |  |  |  |  |  |  |  | 2,617 |  | 5
| Total Revenue |  | $2,345 |  |  |  |  |  |  |  |  |  | $527 |  | 29%
| Adj. Pre-tax, Pre-provision Income 2 |  | 1,600 |  |  |  |  |  |  |  |  |  | 454 |  | 40
| Net Income |  | 1,128 |  |  |  |  |  |  |  |  |  | 255 |  | 29
| Diluted Earnings per Share |  | $7.92 |  |  |  |  |  |  |  |  |  | $1.82 |  | 30%

BALANCE SHEET
•Record Assets – Total assets reached $64.1 billion as of December 31, 2022, an increase of $1.5 billion or 2.5% from $62.6 billion as of September 30, 2022. Year-over-year, total assets grew $3.2 billion or 5.3% from $60.9 billion as of December 31, 2021.
Fourth quarter 2022 average interest-earning assets of $60.4 billion were up $897.5 million, or 1.5% (6.0% annualized), from $59.5 billion in the third quarter of 2022. Quarter-over-quarter, average loan growth of $752.6 million and growth in interest-bearing cash and deposits with banks of $696.7 million was partially offset by decreases in debt securities and assets purchased under resale agreements.
•Record Loans – Total loans reached $48.2 billion as of December 31, 2022, an increase of $771.3 million, or 1.6% (6.4% annualized), from $47.5 billion as of September 30, 2022. Year-over-year, total loans grew $6.5 billion, or 15.7%, from $41.7 billion as of December 31, 2021.
Fourth quarter 2022 average loans of $47.6 billion grew $752.6 million, or 1.6% (6.4% annualized), from the third quarter. Average loan growth was well-balanced across all our major loan categories of commercial real estate, commercial & industrial, and residential mortgage.
•Record Deposits – Total deposits were $56.0 billion as of December 31, 2022, an increase of $2.1 billion, or 3.9% (15.5% annualized), from $53.9 billion as of September 30, 2022. Year-over-year, deposits grew $2.6 billion, or 4.9%, from $53.4 billion as of December 31, 2021.
Fourth quarter 2022 average deposits of $55.0 billion increased $932.2 million, or 1.7% (6.8% annualized) from the third quarter, driven by growth in time deposits, partially offset by declines in other deposit categories. Growth in time deposits in the fourth quarter reflected a successful branch-based CD campaign. Average noninterest-bearing deposits made up 39% of average total deposits in the fourth quarter of 2022, compared with 41% in the third quarter of 2022 and 44% in the fourth quarter of 2021.
•Strong Capital Levels – As of December 31, 2022, stockholders’ equity was $6.0 billion, or $42.46 per common share, up 5.7% quarter-over-quarter, and tangible equity 3 per common share was $39.10, up 6.2% from September 30, 2022. As of December 31, 2022, the stockholders’ equity to assets ratio was 9.33%, an increase of 28 basis points quarter-over-quarter, and the tangible equity to tangible assets ratio 3 was 8.66%, an increase of 31 basis points quarter-over-quarter. The common equity tier 1 (“CET1”) capital ratio was 12.7%, and the total risk-based capital ratio was 14.0% as of December 31, 2022; all regulatory capital ratios expanded quarter-over-quarter.
•Dividend Increase – The first quarter 2023 common stock dividend was increased by 20%, or eight cents per share. The new quarterly dividend is $0.48 per share, up from $0.40 per share. The new annual dividend is $1.92 per share, compared with $1.60 per share previously.

2 Adjusted pre-tax, pre-provision income is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP measures in Table 12.
3 Tangible equity and the tangible equity to tangible assets ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 13.

2

OPERATING RESULTS
Full Year Earnings – Full year 2022 net income was $1.1 billion, an increase of 29.2% from $873.0 million for the full year 2021. Full year 2022 diluted earnings per share were $7.92, an increase of 29.8% from $6.10 per diluted share for the full year 2021.
Fourth Quarter Earnings – Fourth quarter 2022 net income was $336.8 million, an increase of 14.0% (55.6% annualized) from $295.3 million for the third quarter of 2022, and an increase of 54.6% from $217.8 million for the fourth quarter of 2021. Fourth quarter 2022 diluted earnings per share were $2.37, an increase of 13.9% (55.2% annualized) from $2.08 per diluted share for the third quarter 2022, and an increase of 55.9% from $1.52 per diluted share for the year-ago quarter.
Fourth Quarter 2022 Compared to Third Quarter 2022
Net Interest Income and Net Interest Margin
Record net interest income (“NII”) totaled $605.5 million, an increase of 9.7% (38.6% annualized) from $551.8 million. Net interest margin (“NIM”) of 3.98% expanded 30 basis points from 3.68%.
•NII growth and NIM expansion were driven by higher earning asset yields, partially offset by higher cost of funds.
•The average loan yield was 5.59%, up 84 basis points from the third quarter. The average interest-earning asset yield was 5.00%, up 81 basis points from the third quarter. Average loans made up 79% of average interest-earning assets in the fourth quarter of 2022, essentially unchanged from the third quarter of 2022.
•The average cost of funds was 1.11%, up 56 basis points from the third quarter. The average cost of deposits was 1.06%, up 55 basis points, and the average cost of interest-bearing deposits was 1.74%, up 88 basis points from the third quarter.
•The changes in yields and rates reflected rising benchmark interest rates.
Noninterest Income
Noninterest income totaled $64.9 million in the fourth quarter, a decrease of $10.6 million, or 14.1%, from $75.6 million in the third quarter.
•Fee income and net gains on sales of loans were $66.0 million, a decrease of $3.1 million, or 4.5% (17.7% annualized), from $69.0 million in the third quarter.
•Interest rate contracts (“IRC”) and other derivative income was a loss of $0.6 million in the fourth quarter, compared with income of $8.8 million in the third quarter. The quarter-over-quarter decrease of $9.4 million was due to an unfavorable change in the credit valuation adjustment. The mark-to-market on IRC and other derivatives was $(4.6) million in the fourth quarter, compared with $4.8 million in the third quarter. Customer-driven IRC revenue of $4.0 million in the fourth quarter was essentially unchanged from the third quarter.
Noninterest Expense
Noninterest expense totaled $257.1 million in the fourth quarter, compared with $216.0 million in the third quarter. Fourth quarter noninterest expense consisted of $192.1 million of adjusted noninterest expense 4, $64.6 million in amortization of tax credit and other investments, and $0.4 million in amortization of core deposit intangibles.
•Adjusted noninterest expense of $192.1 million decreased $3.5 million, or 1.8% (7.1% annualized), from $195.6 million in the third quarter, largely driven by lower compensation and employee benefits expense.
•Amortization of tax credit and other investments totaled $64.6 million in the fourth quarter, compared with $19.9 million in the third 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 28.7% in the fourth quarter, compared with 31.2% in the third quarter.
TAX RELATED ITEMS
Full year 2022 income tax expense was $283.6 million, and the effective tax rate was 20.1%, compared with income tax expense of $183.4 million and an effective tax rate of 17.4% for the full year 2021. Fourth quarter 2022 income tax expense was $51.6 million, and the effective tax rate was 13.3%, compared with income tax expense of $89.0 million and an effective tax rate of 23.2% for the third quarter of 2022.

4 Adjusted noninterest expense and the adjusted efficiency ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 12.

3

ASSET QUALITY
The asset quality of our loan portfolio continued to be solid and stable, with decreases in both classified and special mention loans, as well as very low nonperforming asset and net charge-off ratios. Provision for credit losses was $25.0 million for the fourth quarter of 2022, compared with $27.0 million for the third quarter of 2022.
•Criticized loans decreased $9.2 million, or 1.0%, quarter-over-quarter to $896.0 million as of December 31, 2022, down from $905.2 million as of September 30, 2022. Classified loans decreased 1.6% quarter-over-quarter to $427.5 million, and special mention loans decreased 0.5% to $468.5 million.
•The criticized loans ratio decreased five basis points quarter-over-quarter to 1.86% of loans held-for-investment (“HFI”) as of December 31, 2022, down from 1.91% as of September 30, 2022. The classified loans ratio decreased three basis points quarter-over-quarter to 0.89%, and the special mention loans ratio decreased two basis points to 0.97%.
•As of December 31, 2022, nonperforming assets were $99.8 million, or 0.16% of total assets, compared with $97.0 million, or 0.16% of total assets, as of September 30, 2022.
•Fourth quarter 2022 net charge-offs were $10.1 million, or annualized 0.08% of average loans HFI, compared with net charge-offs of $6.6 million, or annualized 0.06% of average loans HFI, for the third quarter of 2022.
•The allowance for loan losses totaled $595.6 million, or 1.24% of loans HFI, as of December 31, 2022, compared with $582.5 million, or 1.23% of loans HFI, as of September 30, 2022.
CAPITAL STRENGTH
Capital levels for East West are strong. The following table presents the regulatory capital metrics as of December 31, 2022, September 30, 2022 and December 31, 2021.

EWBC Risk-Based Capital Ratios |  |
($ in millions) |  | December 31, 2022 (a) |  | September 30, 2022 (a) |  | December 31, 2021 (a) |  |  |  |  |  |
CET1 capital ratio |  | 12.7% |  | 12.3% |  | 12.8% |  |  |  |  |  |
Tier 1 capital ratio |  | 12.7% |  | 12.3% |  | 12.8% |  |  |  |  |  |
Total capital ratio |  | 14.0% |  | 13.6% |  | 14.1% |  |  |  |  |  |
Leverage ratio |  | 9.8% |  | 9.6% |  | 9.0% |  |  |  |  |  |
Risk-Weighted Assets (“RWA”) (b) |  | $50,087 |  | $49,266 |  | $43,585 |  |  |  |  |  |

(a)The Company has elected to use the 2020 CECL transition provision in the calculation of its December 31, 2022, September 30, 2022 and December 31, 2021 regulatory capital ratios. The Company’s December 31, 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 first quarter 2023 dividends for the Company’s common stock. The common stock cash dividend of $0.48 per share is payable on February 21, 2023, to stockholders of record on February 6, 2023. This represents a 20% increase, or eight cents per share, to the quarterly common stock dividend, up from $0.40 per share previously. The new annual dividend is $1.92 per share, compared with $1.60 per share previously.
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 fourth quarter of 2022.
4

Conference Call
East West will host a conference call to discuss fourth quarter and full year 2022 earnings with the public on Thursday, January 26, 2023, at 8:30 a.m. PT/11:30 a.m. ET. The public and investment community are invited to listen as management discusses fourth quarter and full year 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 January 26, 2023, at 11:30 a.m. PT/2:30 p.m. ET through February 26, 2023. 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: 4372128.
5

About East West
East West Bancorp, Inc. is a public company with total assets of $64.1 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 Asia. 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. East West also has a representative office in Singapore. 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, beliefs, estimates, assumptions 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, 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.
There are various 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, capital or financial market disruption, supply chain disruption, level of inflation, interest rate environment, housing prices, employment levels, rate of growth and general business conditions, which could result in, among other things, reduced demand for loans, reduced 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 portfolio; changes in local, regional and global business, economic and political conditions and geopolitical events, such as the military conflict between Russia and Ukraine; 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; 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 trade, 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; the impact from potential changes to income tax laws and regulations, federal spending and economic stimulus programs; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit; the Company’s ability to compete effectively against financial institutions 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; the 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 strategic acquisitions or divestitures; changes in the equity and debt securities markets; fluctuations in the Company’s stock price; 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; 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. You should treat forward-looking statements as speaking only as of the date they are made and 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.
6

EAST WEST BANCORP, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEET |
($ and shares in thousands, except per share data) |
(unaudited) |
Table 1 |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  | December 31, 2022 % or Basis Point Change |
|  |  | December 31, 2022 |  | September 30, 2022 |  | December 31, 2021 |  | Qtr-o-Qtr |  | Yr-o-Yr |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |
| Cash and due from banks |  | $ | 534,980 |  | $ | 554,260 |  | $ | 527,317 |  | (3.5) | % |  | 1.5 | % |  |
| Interest-bearing cash with banks |  | 2,946,804 |  | 1,609,093 |  | 3,385,618 |  | 83.1 |  |  | (13.0) |  |  |
| Cash and cash equivalents |  | 3,481,784 |  | 2,163,353 |  | 3,912,935 |  | 60.9 |  |  | (11.0) |  |  |
| Interest-bearing deposits with banks |  | 139,021 |  | 630,543 |  | 736,492 |  | (78.0) |  |  | (81.1) |  |  |
| Assets purchased under resale agreements (“resale agreements”) |  | 792,192 |  | 892,986 |  | 2,353,503 |  | (11.3) |  |  | (66.3) |  |  |
| Available-for-sale (“AFS”) debt securities (amortized cost of $6,879,225, $6,771,354 and $10,087,179) |  | 6,034,993 |  | 5,906,090 |  | 9,965,353 |  | 2.2 |  |  | (39.4) |  |  |
| Held-to-maturity (“HTM”) debt securities, at amortized cost (fair value of $2,455,171 and $2,459,135 in 2022) |  | 3,001,868 |  | 3,012,667 |  | — |  | (0.4) |  |  | 100.0 |  |  |
| Loans held-for-sale (“HFS”) |  | 25,644 |  | 14,500 |  | 635 |  | 76.9 |  |  | NM |  |
| Loans held-for-investment (''HFI'') (net of allowance for loan losses of $595,645, $582,517 and $541,579) |  | 47,606,785 |  | 46,859,738 |  | 41,152,202 |  | 1.6 |  |  | 15.7 |  |  |
| Investments in qualified affordable housing partnerships, tax credit and other investments, net |  | 763,256 |  | 725,254 |  | 628,263 |  | 5.2 |  |  | 21.5 |  |  |
| Goodwill |  | 465,697 |  | 465,697 |  | 465,697 |  | — |  |  | — |  |  |
| Operating lease right-of-use assets |  | 103,681 |  | 105,411 |  | 98,632 |  | (1.6) |  |  | 5.1 |  |  |
| Other assets |  | 1,697,229 |  | 1,799,822 |  | 1,556,989 |  | (5.7) |  |  | 9.0 |  |  |
| Total assets |  | $ | 64,112,150 |  | $ | 62,576,061 |  | $ | 60,870,701 |  | 2.5 | % |  | 5.3 | % |  |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |
| Deposits |  | $ | 55,967,849 |  | $ | 53,857,362 |  | $ | 53,350,532 |  | 3.9 | % |  | 4.9 | % |  |
| Federal funds purchased |  | — |  | 200,000 |  | — |  | (100.0) |  |  | — |  |  |
| FHLB advances |  | — |  | 324,920 |  | 249,331 |  | (100.0) |  |  | (100.0) |  |  |
| Assets sold under repurchase agreements (“repurchase agreements”) |  | 300,000 |  | 611,785 |  | 300,000 |  | (51.0) |  |  | — |  |  |
| Long-term debt and finance lease liabilities |  | 152,400 |  | 152,610 |  | 151,997 |  | (0.1) |  |  | 0.3 |  |  |
| Operating lease liabilities |  | 111,931 |  | 113,477 |  | 105,534 |  | (1.4) |  |  | 6.1 |  |  |
| Accrued expenses and other liabilities |  | 1,595,358 |  | 1,655,239 |  | 876,089 |  | (3.6) |  |  | 82.1 |  |  |
| Total liabilities |  | 58,127,538 |  | 56,915,393 |  | 55,033,483 |  | 2.1 |  |  | 5.6 |  |  |
| Stockholders’ equity |  | 5,984,612 |  | 5,660,668 |  | 5,837,218 |  | 5.7 |  |  | 2.5 |  |  |
| Total liabilities and stockholders’ equity |  | $ | 64,112,150 |  | $ | 62,576,061 |  | $ | 60,870,701 |  | 2.5 | % |  | 5.3 | % |  |
| Book value per common share |  | $ | 42.46 |  | $ | 40.17 |  | $ | 41.13 |  | 5.7 | % |  | 3.2 | % |  |
| Tangible equity (1) per common share |  | $ | 39.10 |  | $ | 36.80 |  | $ | 37.79 |  | 6.2 |  |  | 3.5 |  |  |
| Number of common shares at period-end |  | 140,948 |  | 140,918 |  | 141,908 |  | 0.0 |  |  | (0.7) |  |  |
| Total stockholders’ equity to total assets ratio |  | 9.33 | % |  | 9.05 | % |  | 9.59 | % |  | 28 |  | bps | (26) |  | bps |
| Tangible equity to tangible assets ratio (1) |  | 8.66 | % |  | 8.35 | % |  | 8.88 | % |  | 31 |  | bps | (22) |  | bps |

NM - Not meaningful.
(1)Tangible equity and the tangible equity to tangible assets ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 13.
7

EAST WEST BANCORP, INC. AND SUBSIDIARIES
TOTAL LOANS AND DEPOSITS DETAIL
($ in thousands)
(unaudited)
Table 2
|  |  |  |  |  |  |  |  | December 31, 2022 % Change
|  |  | December 31, 2022 |  | September 30, 2022 |  | December 31, 2021 |  | Qtr-o-Qtr |  | Yr-o-Yr
Loans: |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |
| Commercial and industrial (“C&I”) (1) |  | $ | 15,711,095 |  |  | $ | 15,625,072 |  |  | $ | 14,150,608 |  |  | 0.6 | % |  | 11.0 | %
| Commercial real estate (“CRE”): |  |  |  |  |  |  |  |  |  |
| CRE |  | 13,857,870 |  |  | 13,573,157 |  |  | 12,155,047 |  |  | 2.1 |  |  | 14.0 |
| Multifamily residential |  | 4,573,068 |  |  | 4,559,302 |  |  | 3,675,605 |  |  | 0.3 |  |  | 24.4 |
| Construction and land |  | 638,420 |  |  | 556,894 |  |  | 346,486 |  |  | 14.6 |  |  | 84.3 |
| Total CRE |  | 19,069,358 |  |  | 18,689,353 |  |  | 16,177,138 |  |  | 2.0 |  |  | 17.9 |
Consumer: |  |  |  |  |  |  |  |  |  |
| Residential mortgage: |  |  |  |  |  |  |  |  |  |
| Single-family residential |  | 11,223,027 |  |  | 10,855,345 |  |  | 9,093,702 |  |  | 3.4 |  |  | 23.4 |
| Home equity lines of credit (“HELOCs”) |  | 2,122,655 |  |  | 2,184,924 |  |  | 2,144,821 |  |  | (2.8) |  |  | (1.0) |
| Total residential mortgage |  | 13,345,682 |  |  | 13,040,269 |  |  | 11,238,523 |  |  | 2.3 |  |  | 18.7 |
| Other consumer |  | 76,295 |  |  | 87,561 |  |  | 127,512 |  |  | (12.9) |  |  | (40.2) |
Total loans HFI (2) |  | 48,202,430 |  |  | 47,442,255 |  |  | 41,693,781 |  |  | 1.6 |  |  | 15.6 |
Loans HFS |  | 25,644 |  |  | 14,500 |  |  | 635 |  |  | 76.9 |  |  | NM
| Total loans (2) |  | 48,228,074 |  |  | 47,456,755 |  |  | 41,694,416 |  |  | 1.6 |  |  | 15.7 |
Allowance for loan losses |  | (595,645) |  |  | (582,517) |  |  | (541,579) |  |  | 2.3 |  |  | 10.0 |
| Net loans (2) |  | $ | 47,632,429 |  |  | $ | 46,874,238 |  |  | $ | 41,152,837 |  |  | 1.6 |  |  | 15.7 |
Deposits: |  |  |  |  |  |  |  |  |  |
| Noninterest-bearing demand |  | $ | 21,051,090 |  |  | $ | 21,645,394 |  |  | $ | 22,845,464 |  |  | (2.7) | % |  | (7.9) | %
| Interest-bearing checking |  | 6,672,165 |  |  | 6,822,343 |  |  | 6,524,721 |  |  | (2.2) |  |  | 2.3 |
| Money market |  | 12,265,024 |  |  | 12,113,292 |  |  | 13,130,300 |  |  | 1.3 |  |  | (6.6) |
| Savings |  | 2,649,037 |  |  | 2,917,770 |  |  | 2,888,065 |  |  | (9.2) |  |  | (8.3) |
| Time deposits |  | 13,330,533 |  |  | 10,358,563 |  |  | 7,961,982 |  |  | 28.7 |  |  | 67.4 |
| Total deposits |  | $ | 55,967,849 |  |  | $ | 53,857,362 |  |  | $ | 53,350,532 |  |  | 3.9 | % |  | 4.9 | %

NM - Not meaningful.
(1)Includes $99.0 million, $110.9 million and $534.2 million of Paycheck Protection Program (“PPP”) loans as of December 31, 2022, September 30, 2022 and December 31, 2021, respectively. Excluding PPP loans, total loans were $48.13 billion, $47.35 billion and $41.16 billion as of December 31, 2022, September 30, 2022 and December 31, 2021, respectively.
(2)Includes $(70.4) million, $(60.3) million and $(50.7) million of net deferred loan fees and net unamortized premiums as of December 31, 2022, September 30, 2022 and December 31, 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 |  | December 31, 2022 % Change
|  |  | December 31, 2022 |  | September 30, 2022 |  | December 31, 2021 |  | Qtr-o-Qtr |  | Yr-o-Yr
Interest and dividend income (1) |  | $ | 761,212 |  |  | $ | 628,236 |  |  | $ | 422,708 |  |  | 21.2 | % |  | 80.1 | %
Interest expense |  | 155,705 |  |  | 76,427 |  |  | 17,011 |  |  | 103.7 |  |  | 815.3 |
Net interest income before provision for (reversal of) credit losses |  | 605,507 |  |  | 551,809 |  |  | 405,697 |  |  | 9.7 |  |  | 49.3 |
Provision for (reversal of) credit losses |  | 25,000 |  |  | 27,000 |  |  | (10,000) |  |  | (7.4) |  |  | NM
Net interest income after provision for (reversal of) credit losses |  | 580,507 |  |  | 524,809 |  |  | 415,697 |  |  | 10.6 |  |  | 39.6 |
Noninterest income |  | 64,927 |  |  | 75,552 |  |  | 71,489 |  |  | (14.1) |  |  | (9.2) |
Noninterest expense |  | 257,110 |  |  | 215,973 |  |  | 210,105 |  |  | 19.0 |  |  | 22.4 |
Income before income taxes |  | 388,324 |  |  | 384,388 |  |  | 277,081 |  |  | 1.0 |  |  | 40.1 |
Income tax expense |  | 51,561 |  |  | 89,049 |  |  | 59,285 |  |  | (42.1) |  |  | (13.0) |
Net income |  | $ | 336,763 |  |  | $ | 295,339 |  |  | $ | 217,796 |  |  | 14.0 | % |  | 54.6 | %
Earnings per share (“EPS”) |  |  |  |  |  |  |  |  |  |
- Basic |  | $ | 2.39 |  |  | $ | 2.10 |  |  | $ | 1.53 |  |  | 14.0 | % |  | 55.7 | %
- Diluted |  | $ | 2.37 |  |  | $ | 2.08 |  |  | $ | 1.52 |  |  | 13.9 |  |  | 55.9 |
Weighted-average number of shares outstanding |  |  |  |  |  |  |  |  |  |
- Basic |  | 140,947 |  |  | 140,917 |  |  | 141,907 |  |  | 0.0 | % |  | (0.7) | %
- Diluted |  | 142,138 |  |  | 142,011 |  |  | 143,323 |  |  | 0.1 |  |  | (0.8) |
|  |  | Three Months Ended |  | December 31, 2022 % Change
|  |  | December 31, 2022 |  | September 30, 2022 |  | December 31, 2021 |  | Qtr-o-Qtr |  | Yr-o-Yr
Noninterest income: |  |  |  |  |  |  |  |  |  |
| Lending fees |  | $ | 19,339 |  |  | $ | 20,289 |  |  | $ | 20,739 |  |  | (4.7) | % |  | (6.8) | %
| Deposit account fees |  | 22,112 |  |  | 23,636 |  |  | 20,028 |  |  | (6.4) |  |  | 10.4 |
| Interest rate contracts and other derivative (loss) income |  | (638) |  |  | 8,761 |  |  | 1,932 |  |  | NM |  | NM
| Foreign exchange income |  | 14,015 |  |  | 10,083 |  |  | 13,343 |  |  | 39.0 |  |  | 5.0 |
| Wealth management fees |  | 6,071 |  |  | 8,903 |  |  | 5,291 |  |  | (31.8) |  |  | 14.7 |
| Net gains on sales of loans |  | 443 |  |  | 2,129 |  |  | 2,308 |  |  | (79.2) |  |  | (80.8) |
| Gains on sales of AFS debt securities |  | — |  |  | — |  |  | 390 |  |  | — |  |  | (100.0) |
| Other investment income (loss) |  | 1,127 |  |  | (580) |  |  | 2,982 |  |  | NM |  | (62.2) |
| Other income |  | 2,458 |  |  | 2,331 |  |  | 4,476 |  |  | 5.4 |  |  | (45.1) |
Total noninterest income |  | $ | 64,927 |  |  | $ | 75,552 |  |  | $ | 71,489 |  |  | (14.1) | % |  | (9.2) | %
Noninterest expense: |  |  |  |  |  |  |  |  |  |
| Compensation and employee benefits |  | $ | 120,422 |  |  | $ | 127,580 |  |  | $ | 114,743 |  |  | (5.6) | % |  | 4.9 | %
| Occupancy and equipment expense |  | 15,648 |  |  | 15,920 |  |  | 15,846 |  |  | (1.7) |  |  | (1.2) |
| Deposit insurance premiums and regulatory assessments |  | 4,930 |  |  | 4,875 |  |  | 4,772 |  |  | 1.1 |  |  | 3.3 |
| Deposit account expense |  | 8,437 |  |  | 6,707 |  |  | 4,307 |  |  | 25.8 |  |  | 95.9 |
| Data processing |  | 3,641 |  |  | 3,725 |  |  | 4,175 |  |  | (2.3) |  |  | (12.8) |
| Computer software expense |  | 7,504 |  |  | 6,889 |  |  | 7,494 |  |  | 8.9 |  |  | 0.1 |
| Other operating expense |  | 31,923 |  |  | 30,403 |  |  | 26,968 |  |  | 5.0 |  |  | 18.4 |
| Amortization of tax credit and other investments |  | 64,605 |  |  | 19,874 |  |  | 31,800 |  |  | 225.1 |  |  | 103.2 |
Total noninterest expense |  | $ | 257,110 |  |  | $ | 215,973 |  |  | $ | 210,105 |  |  | 19.0 | % |  | 22.4 | %

NM - Not meaningful.
(1)Includes $293 thousand, $524 thousand and $9.6 million of interest income related to PPP loans for the three months ended December 31, 2022, September 30, 2022 and December 31, 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
|  |  | Year Ended |  | December 31, 2022 % Change
|  |  | December 31, 2022 |  | December 31, 2021 |  | Yr-o-Yr
Interest and dividend income (1) |  | $ | 2,321,231 |  |  | $ | 1,618,734 |  |  | 43.4%
Interest expense |  | 275,350 |  |  | 87,163 |  |  | 215.9
Net interest income before provision for (reversal of) credit losses |  | 2,045,881 |  |  | 1,531,571 |  |  | 33.6
Provision for (reversal of) credit losses |  | 73,500 |  |  | (35,000) |  |  | NM
Net interest income after provision for (reversal of) credit losses |  | 1,972,381 |  |  | 1,566,571 |  |  | 25.9
Noninterest income |  | 298,666 |  |  | 285,895 |  |  | 4.5
Noninterest expense |  | 859,393 |  |  | 796,089 |  |  | 8.0
Income before income taxes |  | 1,411,654 |  |  | 1,056,377 |  |  | 33.6
Income tax expense |  | 283,571 |  |  | 183,396 |  |  | 54.6
Net income |  | $ | 1,128,083 |  |  | $ | 872,981 |  |  | 29.2%
EPS |  |  |  |  |  |
- Basic |  | $ | 7.98 |  |  | $ | 6.16 |  |  | 29.7%
- Diluted |  | $ | 7.92 |  |  | $ | 6.10 |  |  | 29.8
Weighted-average number of shares outstanding |  |  |  |  |  |
- Basic |  | 141,326 |  |  | 141,826 |  |  | (0.4)%
- Diluted |  | 142,492 |  |  | 143,140 |  |  | (0.5)
|  |  | Year Ended |  | December 31, 2022 % Change
|  |  | December 31, 2022 |  | December 31, 2021 |  | Yr-o-Yr
Noninterest income: |  |  |  |  |  |
| Lending fees |  | $ | 79,208 |  |  | $ | 77,704 |  |  | 1.9%
| Deposit account fees |  | 88,435 |  |  | 71,261 |  |  | 24.1
| Interest rate contracts and other derivative income |  | 29,057 |  |  | 22,913 |  |  | 26.8
| Foreign exchange income |  | 48,158 |  |  | 48,977 |  |  | (1.7)
| Wealth management fees |  | 27,565 |  |  | 25,751 |  |  | 7.0
| Net gains on sales of loans |  | 6,411 |  |  | 8,909 |  |  | (28.0)
| Gains on sales of AFS debt securities |  | 1,306 |  |  | 1,568 |  |  | (16.7)
| Other investment income |  | 7,037 |  |  | 16,852 |  |  | (58.2)
| Other income |  | 11,489 |  |  | 11,960 |  |  | (3.9)
Total noninterest income |  | $ | 298,666 |  |  | $ | 285,895 |  |  | 4.5%
Noninterest expense: |  |  |  |  |  |
| Compensation and employee benefits |  | $ | 477,635 |  |  | $ | 433,728 |  |  | 10.1%
| Occupancy and equipment expense |  | 62,501 |  |  | 62,996 |  |  | (0.8)
| Deposit insurance premiums and regulatory assessments |  | 19,449 |  |  | 17,563 |  |  | 10.7
| Deposit account expense |  | 25,508 |  |  | 16,152 |  |  | 57.9
| Data processing |  | 14,517 |  |  | 16,263 |  |  | (10.7)
| Computer software expense |  | 28,259 |  |  | 30,600 |  |  | (7.7)
| Other operating expense |  | 118,166 |  |  | 96,330 |  |  | 22.7
| Amortization of tax credit and other investments |  | 113,358 |  |  | 122,457 |  |  | (7.4)
Total noninterest expense |  | $ | 859,393 |  |  | $ | 796,089 |  |  | 8.0%

NM - Not meaningful.
(1)Includes $7.3 million and $55.2 million of interest income related to PPP loans for the years ended December 31, 2022 and 2021, respectively.
10

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED AVERAGE BALANCES
($ in thousands)
(unaudited)
Table 5 |  |  |  |  |  |
|  | Three Months Ended |  | December 31, 2022 % Change |  | Year Ended |  | December 31, 2022 % Change
|  |  | December 31, 2022 |  | September 30, 2022 |  | December 31, 2021 |  | Qtr-o-Qtr |  | Yr-o-Yr |  | December 31, 2022 |  | December 31, 2021 |  | Yr-o-Yr
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C&I (1) |  | $ | 15,496,386 |  |  | $ | 15,282,661 |  |  | $ | 13,592,203 |  |  | 1.4% |  | 14.0% |  | $ | 15,013,560 |  |  | $ | 13,656,720 |  |  | 9.9%
| CRE: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CRE |  | 13,699,042 |  |  | 13,533,482 |  |  | 11,954,535 |  |  | 1.2 |  | 14.6 |  | 13,145,204 |  |  | 11,663,144 |  |  | 12.7
| Multifamily residential |  | 4,604,628 |  |  | 4,531,351 |  |  | 3,434,274 |  |  | 1.6 |  | 34.1 |  | 4,252,605 |  |  | 3,213,582 |  |  | 32.3
| Construction and land |  | 591,962 |  |  | 532,800 |  |  | 340,940 |  |  | 11.1 |  | 73.6 |  | 499,044 |  |  | 445,333 |  |  | 12.1
| Total CRE |  | 18,895,632 |  |  | 18,597,633 |  |  | 15,729,749 |  |  | 1.6 |  | 20.1 |  | 17,896,853 |  |  | 15,322,059 |  |  | 16.8
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Single-family residential |  | 10,988,102 |  |  | 10,676,022 |  |  | 9,031,677 |  |  | 2.9 |  | 21.7 |  | 10,106,609 |  |  | 8,742,565 |  |  | 15.6
| HELOCs |  | 2,145,416 |  |  | 2,216,355 |  |  | 2,052,383 |  |  | (3.2) |  | 4.5 |  | 2,208,725 |  |  | 1,859,073 |  |  | 18.8
| Total residential mortgage |  | 13,133,518 |  |  | 12,892,377 |  |  | 11,084,060 |  |  | 1.9 |  | 18.5 |  | 12,315,334 |  |  | 10,601,638 |  |  | 16.2
| Other consumer |  | 81,596 |  |  | 81,870 |  |  | 126,557 |  |  | (0.3) |  | (35.5) |  | 93,711 |  |  | 136,280 |  |  | (31.2)
| Total loans (2) |  | $ | 47,607,132 |  |  | $ | 46,854,541 |  |  | $ | 40,532,569 |  |  | 1.6% |  | 17.5% |  | $ | 45,319,458 |  |  | $ | 39,716,697 |  |  | 14.1%
Interest-earning assets |  | $ | 60,376,151 |  |  | $ | 59,478,689 |  |  | $ | 58,944,082 |  |  | 1.5% |  | 2.4% |  | $ | 59,309,062 |  |  | $ | 56,256,388 |  |  | 5.4%
Total assets |  | $ | 64,252,730 |  |  | $ | 63,079,444 |  |  | $ | 62,183,137 |  |  | 1.9% |  | 3.3% |  | $ | 62,838,282 |  |  | $ | 59,251,091 |  |  | 6.1%
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Noninterest-bearing demand |  | $ | 21,419,290 |  |  | $ | 22,423,633 |  |  | $ | 24,019,333 |  |  | (4.5)% |  | (10.8)% |  | $ | 22,784,258 |  |  | $ | 21,271,410 |  |  | 7.1%
| Interest-bearing checking |  | 6,543,349 |  |  | 6,879,632 |  |  | 6,462,471 |  |  | (4.9) |  | 1.3 |  | 6,696,200 |  |  | 6,543,817 |  |  | 2.3
| Money market |  | 12,197,782 |  |  | 12,351,571 |  |  | 12,920,174 |  |  | (1.2) |  | (5.6) |  | 12,443,437 |  |  | 12,428,025 |  |  | 0.1
| Savings |  | 2,747,166 |  |  | 2,961,634 |  |  | 2,841,352 |  |  | (7.2) |  | (3.3) |  | 2,901,940 |  |  | 2,746,933 |  |  | 5.6
| Time deposits |  | 12,076,193 |  |  | 9,435,063 |  |  | 8,072,917 |  |  | 28.0 |  | 49.6 |  | 9,473,744 |  |  | 8,493,511 |  |  | 11.5
| Total deposits |  | $ | 54,983,780 |  |  | $ | 54,051,533 |  |  | $ | 54,316,247 |  |  | 1.7% |  | 1.2% |  | $ | 54,299,579 |  |  | $ | 51,483,696 |  |  | 5.5%
Interest-bearing liabilities |  | $ | 34,372,853 |  |  | $ | 32,703,323 |  |  | $ | 31,011,536 |  |  | 5.1% |  | 10.8% |  | $ | 32,322,744 |  |  | $ | 31,077,459 |  |  | 4.0%
Stockholders’ equity |  | $ | 5,834,623 |  |  | $ | 5,772,638 |  |  | $ | 5,786,237 |  |  | 1.1% |  | 0.8% |  | $ | 5,783,025 |  |  | $ | 5,559,212 |  |  | 4.0%

(1)Average balances of PPP loans were $104.6 million, $127.6 million and $677.2 million for the three months ended December 31, 2022, September 30, 2022 and December 31, 2021, respectively, and $215.4 million and $1.39 billion for the years ended December 31, 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 |  |
|  |  | December 31, 2022 |  | September 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 |  | $ | 2,983,726 |  |  | $ | 23,986 |  |  | 3.19 | % |  | $ | 2,287,010 |  |  | $ | 9,080 |  |  | 1.58 | % |  |
| Resale agreements |  | 833,170 |  |  | 6,062 |  |  | 2.89 | % |  | 1,037,292 |  |  | 6,769 |  |  | 2.59 | % |  |
| AFS debt securities |  | 5,869,336 |  |  | 46,224 |  |  | 3.12 | % |  | 6,204,729 |  |  | 38,383 |  |  | 2.45 | % |  |
| HTM debt securities |  | 3,004,412 |  |  | 12,747 |  |  | 1.68 | % |  | 3,017,063 |  |  | 12,709 |  |  | 1.67 | % |  |
| Loans (2) |  | 47,607,132 |  |  | 671,323 |  |  | 5.59 | % |  | 46,854,541 |  |  | 560,452 |  |  | 4.75 | % |  |
| FHLB and FRB stock |  | 78,375 |  |  | 870 |  |  | 4.40 | % |  | 78,054 |  |  | 843 |  |  | 4.28 | % |  |
| Total interest-earning assets |  | 60,376,151 |  |  | 761,212 |  |  | 5.00 | % |  | 59,478,689 |  |  | 628,236 |  |  | 4.19 | % |  |
Noninterest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Cash and due from banks |  | 640,509 |  |  |  |  |  |  | 615,836 |  |  |  |  |  |  |
| Allowance for loan losses |  | (583,271) |  |  |  |  |  |  | (566,369) |  |  |  |  |  |  |
| Other assets |  | 3,819,341 |  |  |  |  |  |  | 3,551,288 |  |  |  |  |  |  |
| Total assets |  | $ | 64,252,730 |  |  |  |  |  |  | $ | 63,079,444 |  |  |  |  |  |  |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Checking deposits |  | $ | 6,543,349 |  |  | $ | 16,735 |  |  | 1.01 | % |  | $ | 6,879,632 |  |  | $ | 8,493 |  |  | 0.49 | % |  |
| Money market deposits |  | 12,197,782 |  |  | 62,246 |  |  | 2.02 | % |  | 12,351,571 |  |  | 33,101 |  |  | 1.06 | % |  |
| Savings deposits |  | 2,747,166 |  |  | 2,714 |  |  | 0.39 | % |  | 2,961,634 |  |  | 2,268 |  |  | 0.30 | % |  |
| Time deposits |  | 12,076,193 |  |  | 65,772 |  |  | 2.16 | % |  | 9,435,063 |  |  | 25,032 |  |  | 1.05 | % |  |
| Federal funds purchased and other short-term borrowings |  | 47,142 |  |  | 374 |  |  | 3.15 | % |  | 211,794 |  |  | 1,177 |  |  | 2.20 | % |  |
| FHLB advances |  | 40,178 |  |  | 225 |  |  | 2.22 | % |  | 86,243 |  |  | 392 |  |  | 1.80 | % |  |
| Repurchase agreements |  | 568,520 |  |  | 5,507 |  |  | 3.84 | % |  | 624,821 |  |  | 4,421 |  |  | 2.81 | % |  |
| Long-term debt and finance lease liabilities |  | 152,523 |  |  | 2,132 |  |  | 5.55 | % |  | 152,565 |  |  | 1,543 |  |  | 4.01 | % |  |
| Total interest-bearing liabilities |  | 34,372,853 |  |  | 155,705 |  |  | 1.80 | % |  | 32,703,323 |  |  | 76,427 |  |  | 0.93 | % |  |
Noninterest-bearing liabilities and stockholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Demand deposits |  | 21,419,290 |  |  |  |  |  |  | 22,423,633 |  |  |  |  |  |  |
| Accrued expenses and other liabilities |  | 2,625,964 |  |  |  |  |  |  | 2,179,850 |  |  |  |  |  |  |
| Stockholders’ equity |  | 5,834,623 |  |  |  |  |  |  | 5,772,638 |  |  |  |  |  |  |
| Total liabilities and stockholders’ equity |  | $ | 64,252,730 |  |  |  |  |  |  | $ | 63,079,444 |  |  |  |  |  |  |
Interest rate spread |  |  |  |  |  | 3.20 | % |  |  |  |  |  | 3.26 | % |  |
Net interest income and net interest margin |  |  |  | $ | 605,507 |  |  | 3.98 | % |  |  |  | $ | 551,809 |  |  | 3.68 | % |  |

(1)Annualized.
(2)Includes loans HFS. Average balances of PPP loans were $104.6 million and $127.6 million for the three months ended December 31, 2022 and September 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 |  |
| December 31, 2022 |  | December 31, 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 |  | $ | 2,983,726 |  |  | $ | 23,986 |  |  | 3.19 | % |  | $ | 6,050,870 |  |  | $ | 3,750 |  |  | 0.25 | % |  |
| Resale agreements |  | 833,170 |  |  | 6,062 |  |  | 2.89 | % |  | 2,440,636 |  |  | 9,162 |  |  | 1.49 | % |  |
| AFS debt securities |  | 5,869,336 |  |  | 46,224 |  |  | 3.12 | % |  | 9,842,691 |  |  | 42,367 |  |  | 1.71 | % |  |
| HTM debt securities |  | 3,004,412 |  |  | 12,747 |  |  | 1.68 | % |  | — |  |  | — |  |  | — | % |  |
| Loans (2) |  | 47,607,132 |  |  | 671,323 |  |  | 5.59 | % |  | 40,532,569 |  |  | 366,936 |  |  | 3.59 | % |  |
| FHLB and FRB stock |  | 78,375 |  |  | 870 |  |  | 4.40 | % |  | 77,316 |  |  | 493 |  |  | 2.53 | % |  |
| Total interest-earning assets |  | 60,376,151 |  |  | 761,212 |  |  | 5.00 | % |  | 58,944,082 |  |  | 422,708 |  |  | 2.85 | % |  |
Noninterest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Cash and due from banks |  | 640,509 |  |  |  |  |  |  | 652,126 |  |  |  |  |  |  |
| Allowance for loan losses |  | (583,271) |  |  |  |  |  |  | (558,645) |  |  |  |  |  |  |
| Other assets |  | 3,819,341 |  |  |  |  |  |  | 3,145,574 |  |  |  |  |  |  |
| Total assets |  | $ | 64,252,730 |  |  |  |  |  |  | $ | 62,183,137 |  |  |  |  |  |  |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Checking deposits |  | $ | 6,543,349 |  |  | $ | 16,735 |  |  | 1.01 | % |  | $ | 6,462,471 |  |  | $ | 1,846 |  |  | 0.11 | % |  |
| Money market deposits |  | 12,197,782 |  |  | 62,246 |  |  | 2.02 | % |  | 12,920,174 |  |  | 3,172 |  |  | 0.10 | % |  |
| Savings deposits |  | 2,747,166 |  |  | 2,714 |  |  | 0.39 | % |  | 2,841,352 |  |  | 1,734 |  |  | 0.24 | % |  |
| Time deposits |  | 12,076,193 |  |  | 65,772 |  |  | 2.16 | % |  | 8,072,917 |  |  | 6,617 |  |  | 0.33 | % |  |
| Federal funds purchased and other short-term borrowings |  | 47,142 |  |  | 374 |  |  | 3.15 | % |  | 730 |  |  | — |  |  | — | % |  |
| FHLB advances |  | 40,178 |  |  | 225 |  |  | 2.22 | % |  | 249,048 |  |  | 856 |  |  | 1.36 | % |  |
| Repurchase agreements |  | 568,520 |  |  | 5,507 |  |  | 3.84 | % |  | 313,075 |  |  | 2,018 |  |  | 2.56 | % |  |
| Long-term debt and finance lease liabilities |  | 152,523 |  |  | 2,132 |  |  | 5.55 | % |  | 151,769 |  |  | 768 |  |  | 2.01 | % |  |
| Total interest-bearing liabilities |  | 34,372,853 |  |  | 155,705 |  |  | 1.80 | % |  | 31,011,536 |  |  | 17,011 |  |  | 0.22 | % |  |
Noninterest-bearing liabilities and stockholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Demand deposits |  | 21,419,290 |  |  |  |  |  |  | 24,019,333 |  |  |  |  |  |  |
| Accrued expenses and other liabilities |  | 2,625,964 |  |  |  |  |  |  | 1,366,031 |  |  |  |  |  |  |
| Stockholders’ equity |  | 5,834,623 |  |  |  |  |  |  | 5,786,237 |  |  |  |  |  |  |
| Total liabilities and stockholders’ equity |  | $ | 64,252,730 |  |  |  |  |  |  | $ | 62,183,137 |  |  |  |  |  |  |
Interest rate spread |  |  |  |  |  | 3.20 | % |  |  |  |  |  | 2.63 | % |  |
Net interest income and net interest margin |  |  |  | $ | 605,507 |  |  | 3.98 | % |  |  |  | $ | 405,697 |  |  | 2.73 | % |  |

(1)Annualized.
(2)Includes loans HFS. Average balances of PPP loans were $104.6 million and $677.2 million for the three months ended December 31, 2022 and December 31, 2021, respectively.
13

EAST WEST BANCORP, INC. AND SUBSIDIARIES
YEAR-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 8 |  |
| Year Ended |  |
December 31, 2022 |  | December 31, 2021 |  |
Average |  |  |  | Average |  | Average |  |  |  | Average |  |
Balance |  | Interest |  | Yield/Rate |  | Balance |  | Interest |  | Yield/Rate |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Interest-bearing cash and deposits with banks |  | $ | 3,127,234 |  |  | $ | 41,113 |  |  | 1.31 | % |  | $ | 6,071,896 |  |  | $ | 15,531 |  |  | 0.26 | % |  |
| Resale agreements |  | 1,398,080 |  |  | 29,767 |  |  | 2.13 | % |  | 2,107,157 |  |  | 32,239 |  |  | 1.53 | % |  |
| AFS debt securities |  | 6,629,945 |  |  | 152,514 |  |  | 2.30 | % |  | 8,281,234 |  |  | 143,983 |  |  | 1.74 | % |  |
| HTM debt securities |  | 2,756,382 |  |  | 46,392 |  |  | 1.68 | % |  | — |  |  | — |  |  | — | % |  |
| Loans (1) |  | 45,319,458 |  |  | 2,048,301 |  |  | 4.52 | % |  | 39,716,697 |  |  | 1,424,900 |  |  | 3.59 | % |  |
| FHLB and FRB stock |  | 77,963 |  |  | 3,144 |  |  | 4.03 | % |  | 79,404 |  |  | 2,081 |  |  | 2.62 | % |  |
| Total interest-earning assets |  | 59,309,062 |  |  | 2,321,231 |  |  | 3.91 | % |  | 56,256,388 |  |  | 1,618,734 |  |  | 2.88 | % |  |
Noninterest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Cash and due from banks |  | 652,673 |  |  |  |  |  |  | 615,255 |  |  |  |  |  |  |
| Allowance for loan losses |  | (559,746) |  |  |  |  |  |  | (592,211) |  |  |  |  |  |  |
| Other assets |  | 3,436,293 |  |  |  |  |  |  | 2,971,659 |  |  |  |  |  |  |
| Total assets |  | $ | 62,838,282 |  |  |  |  |  |  | $ | 59,251,091 |  |  |  |  |  |  |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Checking deposits |  | $ | 6,696,200 |  |  | $ | 29,808 |  |  | 0.45 | % |  | $ | 6,543,817 |  |  | $ | 13,023 |  |  | 0.20 | % |  |
| Money market deposits |  | 12,443,437 |  |  | 107,442 |  |  | 0.86 | % |  | 12,428,025 |  |  | 15,041 |  |  | 0.12 | % |  |
| Savings deposits |  | 2,901,940 |  |  | 8,550 |  |  | 0.29 | % |  | 2,746,933 |  |  | 7,496 |  |  | 0.27 | % |  |
| Time deposits |  | 9,473,744 |  |  | 106,038 |  |  | 1.12 | % |  | 8,493,511 |  |  | 33,599 |  |  | 0.40 | % |  |
| Federal funds purchased and other short-term borrowings |  | 81,719 |  |  | 1,801 |  |  | 2.20 | % |  | 1,584 |  |  | 42 |  |  | 2.65 | % |  |
| FHLB advances |  | 105,966 |  |  | 1,754 |  |  | 1.66 | % |  | 404,789 |  |  | 6,881 |  |  | 1.70 | % |  |
| Repurchase agreements |  | 467,413 |  |  | 14,362 |  |  | 3.07 | % |  | 306,845 |  |  | 7,999 |  |  | 2.61 | % |  |
| Long-term debt and finance lease liabilities |  | 152,325 |  |  | 5,595 |  |  | 3.67 | % |  | 151,955 |  |  | 3,082 |  |  | 2.03 | % |  |
| Total interest-bearing liabilities |  | 32,322,744 |  |  | 275,350 |  |  | 0.85 | % |  | 31,077,459 |  |  | 87,163 |  |  | 0.28 | % |  |
Noninterest-bearing liabilities and stockholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Demand deposits |  | 22,784,258 |  |  |  |  |  |  | 21,271,410 |  |  |  |  |  |  |
| Accrued expenses and other liabilities |  | 1,948,255 |  |  |  |  |  |  | 1,343,010 |  |  |  |  |  |  |
| Stockholders’ equity |  | 5,783,025 |  |  |  |  |  |  | 5,559,212 |  |  |  |  |  |  |
| Total liabilities and stockholders’ equity |  | $ | 62,838,282 |  |  |  |  |  |  | $ | 59,251,091 |  |  |  |  |  |  |
Interest rate spread |  |  |  |  |  | 3.06 | % |  |  |  |  |  | 2.60 | % |  |
Net interest income and net interest margin |  |  |  | $ | 2,045,881 |  |  | 3.45 | % |  |  |  | $ | 1,531,571 |  |  | 2.72 | % |  |

(1)Includes loans HFS. Average balances of PPP loans were $215.4 million and $1.39 billion for the years ended December 31, 2022 and 2021, respectively.
14

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED RATIOS
(unaudited)
Table 9
|  | Three Months Ended (1) |  | December 31, 2022 Basis Point Change
|  |  | December 31, 2022 |  | September 30, 2022 |  | December 31, 2021 |  | Qtr-o-Qtr |  | Yr-o-Yr |
| Return on average assets |  | 2.08 | % |  | 1.86 | % |  | 1.39 | % |  | 22 |  | bps | 69 |  | bps
| Return on average equity |  | 22.90 | % |  | 20.30 | % |  | 14.93 | % |  | 260 |  |  | 797 |  |
| Tangible return on average tangible equity (2) |  | 24.96 | % |  | 22.16 | % |  | 16.32 | % |  | 280 |  |  | 864 |  |
| Interest rate spread |  | 3.20 | % |  | 3.26 | % |  | 2.63 | % |  | (6) |  |  | 57 |  |
| Net interest margin |  | 3.98 | % |  | 3.68 | % |  | 2.73 | % |  | 30 |  |  | 125 |  |
| Average loan yield |  | 5.59 | % |  | 4.75 | % |  | 3.59 | % |  | 84 |  |  | 200 |  |
| Yield on average interest-earning assets |  | 5.00 | % |  | 4.19 | % |  | 2.85 | % |  | 81 |  |  | 215 |  |
| Average cost of interest-bearing deposits |  | 1.74 | % |  | 0.86 | % |  | 0.18 | % |  | 88 |  |  | 156 |  |
| Average cost of deposits |  | 1.06 | % |  | 0.51 | % |  | 0.10 | % |  | 55 |  |  | 96 |  |
| Average cost of funds |  | 1.11 | % |  | 0.55 | % |  | 0.12 | % |  | 56 |  |  | 99 |  |
| Adjusted pre-tax, pre-provision profitability ratio (3) |  | 2.95 | % |  | 2.72 | % |  | 1.91 | % |  | 23 |  |  | 104 |  |
| Adjusted noninterest expense/average assets (3) |  | 1.19 | % |  | 1.23 | % |  | 1.13 | % |  | (4) |  |  | 6 |  |
| Efficiency ratio |  | 38.35 | % |  | 34.43 | % |  | 44.03 | % |  | 392 |  |  | (568) |  |
| Adjusted efficiency ratio (3) |  | 28.66 | % |  | 31.18 | % |  | 37.24 | % |  | (252) |  | bps | (858) |  | bps
|  |  | Year Ended |  | December 31, 2022 Basis Point Change |  |  |  |
|  |  | December 31, 2022 |  | December 31, 2021 |  | Yr-o-Yr |  |  |  |  |
| Return on average assets |  | 1.80 | % |  | 1.47 | % |  | 33 |  | bps |  |  |
| Return on average equity |  | 19.51 | % |  | 15.70 | % |  | 381 |  |  |  |  |  |
| Tangible return on average tangible equity (2) |  | 21.29 | % |  | 17.24 | % |  | 405 |  |  |  |  |  |
| Interest rate spread |  | 3.06 | % |  | 2.60 | % |  | 46 |  |  |  |  |  |
| Net interest margin |  | 3.45 | % |  | 2.72 | % |  | 73 |  |  |  |  |  |
| Average loan yield |  | 4.52 | % |  | 3.59 | % |  | 93 |  |  |  |  |  |
| Yield on average interest-earning assets |  | 3.91 | % |  | 2.88 | % |  | 103 |  |  |  |  |  |
| Average cost of interest-bearing deposits |  | 0.80 | % |  | 0.23 | % |  | 57 |  |  |  |  |  |
| Average cost of deposits |  | 0.46 | % |  | 0.13 | % |  | 33 |  |  |  |  |  |
| Average cost of funds |  | 0.50 | % |  | 0.17 | % |  | 33 |  |  |  |  |  |
| Adjusted pre-tax, pre-provision profitability ratio (3) |  | 2.55 | % |  | 1.94 | % |  | 61 |  |  |  |  |  |
| Adjusted noninterest expense/average assets (3) |  | 1.18 | % |  | 1.13 | % |  | 5 |  |  |  |  |  |
| Efficiency ratio |  | 36.65 | % |  | 43.80 | % |  | (715) |  |  |  |  |  |
| Adjusted efficiency ratio (3) |  | 31.74 | % |  | 36.91 | % |  | (517) |  | bps |  |  |

(1)Annualized except for efficiency ratio.
(2)Tangible return on average tangible equity is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP measures in Table 13.
(3)Adjusted pre-tax, pre-provision profitability ratio, adjusted noninterest expense/average assets and the adjusted efficiency ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP 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 December 31, 2022
|  |  | Commercial |  |  |  |  | Consumer |  |
|  |  | C&I |  |  |  |  |  |  | Total CRE |  |  |  |  | Total Residential Mortgage |  | Other Consumer |  | Total
Allowance for loan losses, September 30, 2022 |  |  | $ | 371,749 |  |  |  |  |  |  |  | $ | 178,487 |  |  |  |  |  | $ | 30,587 |  |  | $ | 1,694 |  |  | $ | 582,517 |
(Reversal of) provision for credit losses on loans | (a) |  | (263) |  |  |  |  |  |  |  | 13,790 |  |  |  |  |  | 9,363 |  |  | (118) |  |  | 22,772 |
Gross charge-offs |  |  | (416) |  |  |  |  |  |  |  | (10,804) |  |  |  |  |  | — |  |  | (16) |  |  | (11,236) |
Gross recoveries |  |  | 136 |  |  |  |  |  |  |  | 873 |  |  |  |  |  | 89 |  |  | — |  |  | 1,098 |
Total net (charge-offs) recoveries |  |  | (280) |  |  |  |  |  |  |  | (9,931) |  |  |  |  |  | 89 |  |  | (16) |  |  | (10,138) |
Foreign currency translation adjustment |  |  | 494 |  |  |  |  |  |  |  | — |  |  |  |  |  | — |  |  | — |  |  | 494 |
Allowance for loan losses, December 31, 2022 |  |  | $ | 371,700 |  |  |  |  |  |  |  | $ | 182,346 |  |  |  |  |  | $ | 40,039 |  |  | $ | 1,560 |  |  | $ | 595,645 |

|  |  | 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 December 31, 2021
|  |  | Commercial |  |  |  |  | Consumer |  |  |
|  |  | C&I |  |  |  |  |  |  | Total CRE |  |  |  |  | Total Residential Mortgage |  | Other Consumer |  | Total |
Allowance for loan losses, September 30, 2021 |  |  | $ | 342,142 |  |  |  |  |  |  |  | $ | 192,260 |  |  |  |  |  | $ | 21,684 |  |  | $ | 4,318 |  |  | $ | 560,404 |  |
Provision for (reversal of) credit losses on loans | (a) |  | 2,395 |  |  |  |  |  |  |  | (9,416) |  |  |  |  |  | (1,519) |  |  | (940) |  |  | (9,480) |  |
Gross charge-offs |  |  | (12,328) |  |  |  |  |  |  |  | (2,872) |  |  |  |  |  | — |  |  | (1,454) |  |  | (16,654) |  |
Gross recoveries |  |  | 5,605 |  |  |  |  |  |  |  | 836 |  |  |  |  |  | 430 |  |  | — |  |  | 6,871 |  |
Total net (charge-offs) recoveries |  |  | (6,723) |  |  |  |  |  |  |  | (2,036) |  |  |  |  |  | 430 |  |  | (1,454) |  |  | (9,783) |  |
Foreign currency translation adjustment |  |  | 438 |  |  |  |  |  |  |  | — |  |  |  |  |  | — |  |  | — |  |  | 438 |  |
Allowance for loan losses, December 31, 2021 |  |  | $ | 338,252 |  |  |  |  |  |  |  | $ | 180,808 |  |  |  |  |  | $ | 20,595 |  |  | $ | 1,924 |  |  | $ | 541,579 |  |

16

EAST WEST BANCORP, INC. AND SUBSIDIARIES
ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE-SHEET CREDIT EXPOSURES
($ in thousands)
(unaudited)
Table 10 (continued)
|  |  | Year Ended December 31, 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) |  | 37,604 |  |  |  |  |  |  |  | 17,430 |  |  |  |  |  | 19,991 |  |  | (258) |  |  | 74,767 |
Gross charge-offs |  |  | (18,738) |  |  |  |  |  |  |  | (18,108) |  |  |  |  |  | (968) |  |  | (106) |  |  | (37,920) |
Gross recoveries |  |  | 16,824 |  |  |  |  |  |  |  | 2,216 |  |  |  |  |  | 421 |  |  | — |  |  | 19,461 |
Total net charge-offs |  |  | (1,914) |  |  |  |  |  |  |  | (15,892) |  |  |  |  |  | (547) |  |  | (106) |  |  | (18,459) |
Foreign currency translation adjustment |  |  | (2,242) |  |  |  |  |  |  |  | — |  |  |  |  |  | — |  |  | — |  |  | (2,242) |
Allowance for loan losses, December 31, 2022 |  |  | $ | 371,700 |  |  |  |  |  |  |  | $ | 182,346 |  |  |  |  |  | $ | 40,039 |  |  | $ | 1,560 |  |  | $ | 595,645 |

|  |  | Year Ended December 31, 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) |  | (39,732) |  |  |  |  |  |  |  | 6,782 |  |  |  |  |  | 2,710 |  |  | 1,286 |  |  | (28,954) |  |  |  |
Gross charge-offs |  |  | (32,490) |  |  |  |  |  |  |  | (31,514) |  |  |  |  |  | (1,091) |  |  | (1,497) |  |  | (66,592) |  |  |  |
Gross recoveries |  |  | 11,906 |  |  |  |  |  |  |  | 3,937 |  |  |  |  |  | 766 |  |  | 5 |  |  | 16,614 |  |  |  |
Total net charge-offs |  |  | (20,584) |  |  |  |  |  |  |  | (27,577) |  |  |  |  |  | (325) |  |  | (1,492) |  |  | (49,978) |  |  |
Foreign currency translation adjustment |  |  | 528 |  |  |  |  |  |  |  | — |  |  |  |  |  | — |  |  | — |  |  | 528 |  |  |
Allowance for loan losses, December 31, 2021 |  |  | $ | 338,252 |  |  |  |  |  |  |  | $ | 180,808 |  |  |  |  |  | $ | 20,595 |  |  | $ | 1,924 |  |  | $ | 541,579 |  |  |  |

|  |  | Three Months Ended |  | Year Ended
|  |  | December 31, 2022 |  | September 30, 2022 |  | December 31, 2021 |  | December 31, 2022 |  | December 31, 2021
Unfunded Credit Facilities |  |  |  |  |  |  |  |  |  |  |
Allowance for unfunded credit commitments, beginning of period (1) |  |  | $ | 24,041 |  |  | $ | 24,304 |  |  | $ | 28,036 |  |  | $ | 27,514 |  |  | $ | 33,577 |
Provision for (reversal of) credit losses on unfunded credit commitments | (b) |  | 2,228 |  |  | (274) |  |  | (520) |  |  | (1,267) |  |  | (6,046) |
Foreign currency translation adjustment |  |  | (5) |  |  | 11 |  |  | (2) |  |  | 17 |  |  | (17) |
Allowance for unfunded credit commitments, end of period (1) |  |  | $ | 26,264 |  |  | $ | 24,041 |  |  | $ | 27,514 |  |  | $ | 26,264 |  |  | $ | 27,514 |
Provision for (reversal of) credit losses | (a)+(b) |  | $ | 25,000 |  |  | $ | 27,000 |  |  | $ | (10,000) |  |  | $ | 73,500 |  |  | $ | (35,000) |

(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 |  | December 31, 2022 |  | September 30, 2022 |  | December 31, 2021 |
Special mention loans |  | $ | 468,471 |  |  | $ | 470,964 |  |  | $ | 384,694 |  |
Classified loans |  | 427,509 |  |  | 434,242 |  |  | 448,362 |  |
Total criticized loans (1) |  | $ | 895,980 |  |  | $ | 905,206 |  |  | $ | 833,056 |  |
Nonperforming Assets |  | December 31, 2022 |  | September 30, 2022 |  | December 31, 2021 |
Nonaccrual loans: |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |
| C&I |  | $ | 50,428 |  |  | $ | 47,988 |  |  | $ | 59,023 |  |
| Total CRE |  | 23,413 |  |  | 11,209 |  |  | 9,942 |  |
Consumer: |  |  |  |  |  |  |
| Total residential mortgage |  | 25,586 |  |  | 23,309 |  |  | 24,164 |  |
| Other consumer |  | 99 |  |  | 37 |  |  | 52 |  |
| Total nonaccrual loans |  | 99,526 |  |  | 82,543 |  |  | 93,181 |  |
Other real estate owned, net |  | 270 |  |  | — |  |  | 363 |  |
Other nonperforming assets |  | — |  |  | — |  |  | 9,938 |  |
Nonperforming loans HFS |  | — |  |  | 14,500 |  |  | — |  |
| Total nonperforming assets |  | $ | 99,796 |  |  | $ | 97,043 |  |  | $ | 103,482 |  |
Credit Quality Ratios |  | December 31, 2022 |  | September 30, 2022 |  | December 31, 2021 |
Annualized quarterly net charge-offs to average loans HFI |  | 0.08 | % |  | 0.06 | % |  | 0.10 | % |
Annual net charge-offs to average loans HFI |  | 0.04 | % |  | N/A |  | 0.13 | % |
Special mention loans to loans HFI |  | 0.97 | % |  | 0.99 | % |  | 0.92 | % |
Classified loans to loans HFI |  | 0.89 | % |  | 0.92 | % |  | 1.08 | % |
Criticized loans to loans HFI |  | 1.86 | % |  | 1.91 | % |  | 2.00 | % |
Nonperforming assets to total assets |  | 0.16 | % |  | 0.16 | % |  | 0.17 | % |
Nonaccrual loans to loans HFI |  | 0.21 | % |  | 0.17 | % |  | 0.22 | % |
Allowance for loan losses to loans HFI |  | 1.24 | % |  | 1.23 | % |  | 1.30 | % |

(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
|  |  |  | December 31, 2022 |  | September 30, 2022 |  | December 31, 2021
Net interest income before provision for (reversal of) credit losses |  |  |  | $ | 605,507 |  |  | $ | 551,809 |  |  | $ | 405,697 |
Total noninterest income |  |  |  | 64,927 |  |  | 75,552 |  |  | 71,489 |
Total revenue |  | (a) |  | $ | 670,434 |  |  | $ | 627,361 |  |  | $ | 477,186 |
Total noninterest expense |  | (b) |  | $ | 257,110 |  |  | $ | 215,973 |  |  | $ | 210,105 |
Less: Amortization of tax credit and other investments |  |  |  | (64,605) |  |  | (19,874) |  |  | (31,800) |
Amortization of core deposit intangibles |  |  |  | (381) |  |  | (485) |  |  | (602) |
Adjusted noninterest expense |  | (c) |  | $ | 192,124 |  |  | $ | 195,614 |  |  | $ | 177,703 |
Efficiency ratio |  | (b)/(a) |  | 38.35 | % |  | 34.43 | % |  | 44.03 | %
Adjusted efficiency ratio |  | (c)/(a) |  | 28.66 | % |  | 31.18 | % |  | 37.24 | %
Adjusted pre-tax, pre-provision income |  | (a)-(c) = (d) |  | $ | 478,310 |  |  | $ | 431,747 |  |  | $ | 299,483 |
Average total assets |  | (e) |  | $ | 64,252,730 |  |  | $ | 63,079,444 |  |  | $ | 62,183,137 |
Adjusted pre-tax, pre-provision profitability ratio (1) |  | (d)/(e) |  | 2.95 | % |  | 2.72 | % |  | 1.91 | %
Adjusted noninterest expense/average assets (1) |  | (c)/(e) |  | 1.19 | % |  | 1.23 | % |  | 1.13 | %
|  |  |  | Year Ended |  |
|  |  |  | December 31, 2022 |  | December 31, 2021 |  |
Net interest income before provision for (reversal of) credit losses |  |  |  | $ | 2,045,881 |  |  | $ | 1,531,571 |  |  |
Total noninterest income |  |  |  | 298,666 |  |  | 285,895 |  |  |
Total revenue |  | (f) |  | $ | 2,344,547 |  |  | $ | 1,817,466 |  |  |
Total noninterest expense |  | (g) |  | $ | 859,393 |  |  | $ | 796,089 |  |  |
Less: Amortization of tax credit and other investments |  |  |  | (113,358) |  |  | (122,457) |  |  |
Amortization of core deposit intangibles |  |  |  | (1,865) |  |  | (2,749) |  |  |
Adjusted noninterest expense |  | (h) |  | $ | 744,170 |  |  | $ | 670,883 |  |  |
Efficiency ratio |  | (g)/(f) |  | 36.65 | % |  | 43.80 | % |  |
Adjusted efficiency ratio |  | (h)/(f) |  | 31.74 | % |  | 36.91 | % |  |
Adjusted pre-tax, pre-provision income |  | (f)-(h) = (i) |  | $ | 1,600,377 |  |  | $ | 1,146,583 |  |  |
Average total assets |  | (j) |  | $ | 62,838,282 |  |  | $ | 59,251,091 |  |  |
Adjusted pre-tax, pre-provision profitability ratio |  | (i)/(j) |  | 2.55 | % |  | 1.94 | % |  |
Adjusted noninterest expense/average assets |  | (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.
|  |  |  | December 31, 2022 |  | September 30, 2022 |  | December 31, 2021
Stockholders’ equity |  | (a) |  | $ | 5,984,612 |  |  | $ | 5,660,668 |  |  | $ | 5,837,218 |
Less: Goodwill |  |  |  | (465,697) |  |  | (465,697) |  |  | (465,697) |
Other intangible assets (1) |  |  |  | (7,998) |  |  | (8,667) |  |  | (9,334) |
Tangible equity |  | (b) |  | $ | 5,510,917 |  |  | $ | 5,186,304 |  |  | $ | 5,362,187 |
Total assets |  | (c) |  | $ | 64,112,150 |  |  | $ | 62,576,061 |  |  | $ | 60,870,701 |
Less: Goodwill |  |  |  | (465,697) |  |  | (465,697) |  |  | (465,697) |
Other intangible assets (1) |  |  |  | (7,998) |  |  | (8,667) |  |  | (9,334) |
Tangible assets |  | (d) |  | $ | 63,638,455 |  |  | $ | 62,101,697 |  |  | $ | 60,395,670 |
Total stockholders’ equity to total assets ratio |  | (a)/(c) |  | 9.33 | % |  | 9.05 | % |  | 9.59 | %
Tangible equity to tangible assets ratio |  | (b)/(d) |  | 8.66 | % |  | 8.35 | % |  | 8.88 | %

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 |  | Year Ended
|  |  |  | December 31, 2022 |  | September 30, 2022 |  | December 31, 2021 |  | December 31, 2022 |  | December 31, 2021
Net income |  | (e) |  | $ | 336,763 |  |  | $ | 295,339 |  |  | $ | 217,796 |  |  | $ | 1,128,083 |  |  | $ | 872,981 |
Add: Amortization of core deposit intangibles |  |  |  | 381 |  |  | 485 |  |  | 602 |  |  | 1,865 |  |  | 2,749 |
Amortization of mortgage servicing assets |  |  |  | 329 |  |  | 340 |  |  | 415 |  |  | 1,425 |  |  | 1,679 |
Tax effect of amortization adjustments (2) |  |  |  | (209) |  |  | (237) |  |  | (293) |  |  | (966) |  |  | (1,274) |
Tangible net income |  | (f) |  | $ | 337,264 |  |  | $ | 295,927 |  |  | $ | 218,520 |  |  | $ | 1,130,407 |  |  | $ | 876,135 |
Average stockholders’ equity |  | (g) |  | $ | 5,834,623 |  |  | $ | 5,772,638 |  |  | $ | 5,786,237 |  |  | $ | 5,783,025 |  |  | $ | 5,559,212 |
Less: Average goodwill |  |  |  | (465,697) |  |  | (465,697) |  |  | (465,697) |  |  | (465,697) |  |  | (465,697) |
Average other intangible assets (1) |  |  |  | (8,378) |  |  | (8,379) |  |  | (9,611) |  |  | (8,695) |  |  | (10,535) |
Average tangible equity |  | (h) |  | $ | 5,360,548 |  |  | $ | 5,298,562 |  |  | $ | 5,310,929 |  |  | $ | 5,308,633 |  |  | $ | 5,082,980 |
Return on average equity |  | (e)/(g) |  | 22.90 | % | (3) | 20.30 | % | (3) | 14.93 | % | (3) | 19.51 | % |  | 15.70 | %
Tangible return on average tangible equity |  | (f)/(h) |  | 24.96 | % | (3) | 22.16 | % | (3) | 16.32 | % | (3) | 21.29 | % |  | 17.24 | %

(1)Includes core deposit intangibles and mortgage servicing assets.
(2)Applied statutory tax rate of 29.37% for the three and twelve months ended December 31, 2022. Applied statutory tax rate of 28.77% for the three months ended September 30, 2022, and for the three and twelve months ended December 31, 2021.
(3)Annualized.
20