EX-99.1 2 ewbc9918k12312024.htm EX-99.1

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

NEWS RELEASE |  |  |

EAST WEST BANCORP REPORTS RECORD NET INCOME FOR FULL YEAR 2024
OF $1.2 BILLION AND DILUTED EARNINGS PER SHARE OF $8.33; INCREASES DIVIDEND AND REPURCHASE AUTHORIZATION
Pasadena, California – January 23, 2025 – East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, reported its financial re sults for the full year and fourth quarter of 2024. Full year 2024 net income was $1.2 billion, or $8.33 per diluted share. Fourth quarter 2024 net income was $293 million, or $2.10 per diluted share. Full-year returns on average assets were 1.60%, returns on average common equity were 15.9%, and book value per share grew 12% year-over-year.
“Looking back on 2024, East West marked another year of record revenue, net income and EPS, generating a 17% return on average tangible common equity 1 for shareholders,” said Dominic Ng, Chairman and Chief Executive Officer. “We grew deposits by over $7 billion, reflecting the strength of our customer relationships. Fee income grew 12% year-over-year to a new record level, with notable strength in wealth management, lending, and deposit account fees,” said Ng.
“East West’s mission has always been to support the communities we serve. Our sympathy goes out to everyone affected by the devastating wildfires in Southern California, and our deep thanks goes out to the firefighters, public service workers, and volunteers on the front lines,” stated Ng. “During this unprecedented time, I am proud of the actions East West is taking to support our customers, our community, and our associates. I would like to extend special gratitude to East West’s associates for their continued dedication to our clients.”
“Given our strong capital base and industry-leading profitability, we are pleased to announce an incremental $300 million of share repurchase authorization. As we start a new year, we are also pleased to announce a 9% increase in our common stock dividend,” concluded Ng.
FINANCIAL HIGHLIGHTS

|  |  | Year Ended |  |  |  |  |  | Year-over-Year Change
| ($ in millions, except per share data) |  | December 31, 2024 |  | December 31, 2023 |  |  |  |  |  |  |  |  |  | $ |  | %
| Total Revenue (FTE) |  | $2,619 |  | $2,609 |  |  |  |  |  |  |  |  |  | $10 |  | 0 | %
| Pre-tax, Pre-provision Income 2 |  | 1,661 |  | 1,586 |  |  |  |  |  |  |  |  |  | 75 |  | 5 |
| Net Income |  | 1,166 |  | 1,161 |  |  |  |  |  |  |  |  |  | 5 |  | 0 |
| Diluted Earnings per Share |  | $8.33 |  | $8.18 |  |  |  |  |  |  |  |  |  | $0.15 |  | 2 |
| Book Value per Share |  | $55.79 |  | $49.64 |  |  |  |  |  |  |  |  |  | $6.15 |  | 12 |
| Tangible Book Value per Share 1 |  | $52.39 |  | $46.27 |  |  |  |  |  |  |  |  |  | $6.12 |  | 13 | %
| Return on Average Common Equity |  | 15.93% |  | 17.91% |  |  |  |  |  |  |  |  |  | — |  | -198 bps
| Return on Average Tangible Common Equity 1 |  | 17.05% |  | 19.35% |  |  |  |  |  |  |  |  |  | — |  | -230 bps
| Total Stockholders’ Equity to Assets Ratio |  | 10.17% |  | 9.98% |  |  |  |  |  |  |  |  |  | — |  | 19 bps
| Tangible Common Equity Ratio 1 |  | 9.60% |  | 9.37% |  |  |  |  |  |  |  |  |  | — |  | 23 bps
| Total Assets |  | $75,976 |  | $69,613 |  |  |  |  |  |  |  |  |  | $6,363 |  | 9 | %

1 Return on average tangible common equity, tangible book value per share, and tangible common equity ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 13.
2 Pre-tax, pre-provision income is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP financial measures in Table 12.

1

BALANCE SHEET
•Assets – Total assets were $76.0 billion as of December 31, 2024, an increase of $1.5 billion from $74.5 billion as of September 30, 2024. Total cash, resale agreements, and debt securities grew 6% quarter-over-quarter. Year-over-year, total assets grew $6.4 billion, or 9%, from $69.6 billion as of December 31, 2023.
Fourth quarter 2024 average interest-earning assets of $72.2 billion were up $1.9 billion, or 3%, from $70.3 billion in the third quarter, primarily reflecting increases of $1.5 billion in average available-for-sale (“AFS”) debt securities and $0.8 billion in average total loans outstanding, partly offset by a $0.4 billion decrease in average interest-bearing cash and deposits with banks.
•Loans – Total loans were $53.7 billion as of December 31, 2024, an increase of nearly $0.5 billion from $53.3 billion as of September 30, 2024. Year-over-year, total loans were up $1.5 billion, or 3%, from $52.2 billion as of December 31, 2023.
Fourth quarter 2024 average loans of $53.2 billion grew $0.8 billion, or 1.5%, from the third quarter of 2024. The increase was primarily driven by growth in our C&I and residential mortgage lending portfolios.
•Deposits – Total deposits were $63.2 billion as of December 31, 2024, an increase of $1.5 billion, or 2%, from $61.7 billion as of September 30, 2024, primarily reflecting growth in noninterest-bearing demand and money market deposits. Noninterest-bearing deposits made up 24% of total deposits as of December 31, 2024. Year-over-year, total deposits increased $7.1 billion from $56.1 billion as of December 31, 2023.
Fourth quarter 2024 average deposits of $61.9 billion increased $1.4 billion from the third quarter of 2024, with growth in average time, noninterest-bearing demand, interest-bearing checking, and money market deposits.
•Capital – As of December 31, 2024, stockholders’ equity was $7.7 billion, up 1% quarter-over-quarter. The total stockholders’ equity to assets ratio was 10.17% as of December 31, 2024, compared with 10.29% as of September 30, 2024.
Book value per share was $55.79 as of December 31, 2024, up $0.49, or 1% quarter-over-quarter. As of December 31, 2024, tangible book value per share 3 was $52.39, up $0.49, or 1% quarter-over-quarter.
East West’s regulatory capital ratios are well in excess of regulatory requirements for well-capitalized institutions, and well above regional bank averages.
CAPITAL STRENGTH
The following table presents capital metrics as of December 31, 2024, September 30, 2024 and December 31, 2023.

EWBC Capital |  |
($ in millions) |  | December 31, 2024 (a) |  | September 30, 2024 (a) |  | December 31, 2023 (a) |  |  |  |  |  |
Risk-Weighted Assets (“RWA”) (b) |  | $54,949 |  | $54,291 |  | $53,663 |  |  |  |  |  |
Risk-based capital ratios: |  |  |  |  |  |  |  |  |  |  |  |
Total capital ratio |  | 15.59% |  | 15.39% |  | 14.76% |  |  |  |  |  |
CET1 capital ratio |  | 14.28% |  | 14.08% |  | 13.31% |  |  |  |  |  |
Tier 1 capital ratio |  | 14.28% |  | 14.08% |  | 13.31% |  |  |  |  |  |
Leverage ratio |  | 10.42% |  | 10.40% |  | 10.21% |  |  |  |  |  |
Total stockholders’ equity to assets ratio |  | 10.17% |  | 10.29% |  | 9.98% |  |  |  |  |  |
Tangible common equity ratio (c) |  | 9.60% |  | 9.72% |  | 9.37% |  |  |  |  |  |

(a)The Company has elected to use the 2020 Current Expected Credit Losses (CECL) transition provision in the calculation of its December 31, 2024, September 30, 2024, and December 31, 2023 regulatory capital ratios. The Company’s December 31, 2024 regulatory capital ratios and RWA are preliminary.
(b)Under regulatory guidelines, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories based on the nature of the obligor, or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar value in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total RWA.
(c)Tangible common equity ratio is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP measures in Table 13.

3 Tangible book value per share is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP measures in Table 13.

2

OPERATING RESULTS
Full Year Earnings - Full year 2024 net income was a record $1.2 billion or $8.33 per diluted share, up 0.4% and 2% year-over-year, respectively. Full year revenue was a record $2.6 billion, an increase of $6 million year-over-year. Full year pre-tax, pre-provision income 4 was a record $1.7 billion, an increase of $74 million, or 5% year-over-year.
Fourth Quarter Earnings – Fourth quarter 2024 net income was $293 million or $2.10 per diluted share. Fourth quarter 2024 revenue was $676 million, up $19 million, or 3% quarter-over-quarter. Pre-tax, pre-provision income 4 totaled $427 million in the fourth quarter.
Fourth Quarter 2024 Compared to Third Quarter 2024
Net Interest Income and Net Interest Margin
Net interest income totaled $588 million in the fourth quarter, an increase of 3% from $573 million in the third quarter of 2024. Net interest margin (“NIM”) was 3.24%, unchanged from the third quarter.
•The average loan yield was 6.50%, down 23 basis points from the third quarter. The average interest-earning asset yield was 5.84%, down 25 basis points from the third quarter.
•The average cost of funds was 2.87%, down 25 basis points from the third quarter. The average cost of interest-bearing deposits was 3.63%, a 30-basis point decrease from the third quarter.
Noninterest Income
Noninterest income totaled $88 million in the fourth quarter, an increase of $4 million, or 4% from $84 million in the third quarter.
•Fee incom e 5 of $81 million was unchanged from the third quarter.
•Foreign exchange income increased $3 million in the fourth quarter, primarily reflecting a favorable change in mark-to-market adjustments on foreign exchange positions.
•Lending fees of $25 million were down $2 million in the fourth quarter, primarily reflecting lower syndication activity.
•Wealth management fees decreased $1 million quarter-over-quarter, reflecting lower customer activity.
•Derivative mark-to-market and credit valuation adjustments on customer and other deriv atives was a gain of $4 million in the fourth quarter, compared with a loss of $4 million in the third quarter.
•Other investment income decreased $3 million quarter-over-quarter, reflecting lower income from investments in the fourth quarter.
Noninterest Expense
Total noninterest expense totaled $250 million in the fourth quarter, which included $19 million in tax credit and Community Reinvestment Act (“CRA”) investment amortization and $5 million of net other real estate owned (OREO) write-downs.
•Total operating noninterest expense was $231 million, an increase of $10 million, or 5% quarter-over-quarter, including $5 million of net OREO write-downs.
•Compensation and employee benefits were $140 million, an increase of $4 million, or 3%.
•Deposit account expense was $11 million, a decrease of $1 million, or 11% quarter-over-quarter.
•Occupancy and equipment expense was $16 million, a decrease of $1 million, or 4% quarter-over-quarter.
•Deposit insurance premiums and regulatory assessments were $6 million, a $3 million decrease reflecting a $3 million reversal of Federal Deposit Insurance Corporation (“FDIC”) Special Assessment-related expense.
•The efficiency ratio was 36.9% in the fourth quarter, compared with 34.3% in the third quarter.

4 Pre-tax, pre-provision income is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP financial measures in Table 12.
5 Fee income includes deposit account and lending fees, foreign exchange income, wealth management fees, and customer derivative income. Refer to Table 3 for additional fee and noninterest income information.

3

TAX RELATED ITEMS
Full year 2024 income tax expense was $316 million, and the effective tax rate was 21.3%, compared with income tax expense of $299 million and an effective tax rate of 20.5% for the full year of 2023. Fourth quarter 2024 income tax expense was $63 million, and the effective tax rate was 17.6%, compared with income tax expense of $90 million and 23.2% in the third quarter of 2024, primarily reflecting lower pre-tax income in the fourth quarter.
ASSET QUALITY
As of December 31, 2024, the credit quality of our loan portfolio remained solid.
•Nonperforming assets decreased $1 million to $194 million as of December 31, 2024, from $195 million as of September 30, 2024. The nonperforming assets ratio was 0.26% of total assets as of December 31, 2024, unchanged from the prior quarter.
•The criticized loans ratio increased 10 basis points quarter-over-quarter to 2.18% of loans held-for-investment (“HFI”) as of December 31, 2024, compared with 2.08% as of September 30, 2024. Criticized loans increased $63 million quarter-over-quarter to $1.2 billion as of December 31, 2024. The quarter-over-quarter change primarily reflects increases related to C&I and commercial real estate loans.
•The special mention loans ratio decreased five basis points quarter-over-quarter to 0.83% of loans HFI as of December 31, 2024, compared with 0.88% as of September 30, 2024, while the classified loans ratio increased 15 basis points to 1.35%.
•Net OREO balances decreased $6 million quarter-over-quarter to $35 million, compared with $41 million for the third quarter of 2024.
•Fourth quarter 2024 net charge-offs were $64 million, or annualized 0.48% of average loans HFI, compared with $29 million, or annualized 0.22% of average loans HFI, for the third quarter of 2024. Full year 2024 net charge-offs were $139 million, or 0.26% of average loans HFI.
•The allowance for loan losses increased to $702 million, or 1.31% of loans HFI, as of December 31, 2024, compared with $696 million, or 1.31% of loans HFI, as of September 30, 2024.
•Fourth quarter 2024 provision for credit losses was $70 million, compared with $42 million in the third quarter of 2024.
DIVIDEND PAYOUT AND CAPITAL ACTIONS
East West’s Board of Directors has declared the first quarter 2025 dividend for the Company’s common stock. The common stock cash dividend of $0.60 per share is payable on February 17, 2025 to shareholders of record as of February 3, 2025. This represents a 9% increase, or five cents per share, to the quarterly common stock dividend, up from $0.55 per share previously. The new annual dividend equivalent is $2.40 per share, compared with $2.20 per share previously.
East West repurchased approximately 200 thousand shares of common stock during the fourth quarter of 2024 for $20 million. On January 22, 2025, East West’s Board of Directors authorized the repurchase of up to $300 million of additional East West stock, resulting in $329 million of total current authorization available.
4

Conference Call
East West will host a conference call to discuss fourth quarter and full year 2024 earnings with the public on Thursday, January 23, 2025, at 2:00 p.m. PT/5:00 p.m. ET. The public and investment community are invited to listen as management discusses fourth quarter and full year 2024 results and operating developments.
•The following dial-in information is provided for participation in the conference call: calls within the U.S. or Canada – (877) 506-6399; international calls – (412) 902-6699.
•A presentation to accompany the earnings call, a listen-only live broadcast of the call, and information to access a replay one hour after the call will all be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.
For Investor Inquiries, Contact:

Adrienne Atkinson
Director of Investor Relations
T: (626) 788-7536
E: adrienne.atkinson@eastwestbank.com

About East West
East West provides financial services that help customers reach further and connect to new opportunities. East West Bancorp, Inc. is a public company (Nasdaq: “EWBC”) with total assets of $76.0 billion as of December 31, 2024. The Company’s wholly-owned subsidiary, East West Bank, is the largest independent bank headquartered in Southern California, and operates over 110 locations in the United States and Asia. The Bank’s markets in the United States include California, Georgia, Illinois, Massachusetts, Nevada, New York, Texas, and Washington. For more information on East West, visit www.eastwestbank.com.
5

Forward-Looking Statements
Certain matters set forth herein (including any exhibits hereto) contain “forward-looking statements” that are intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. East West Bancorp, Inc. (referred to herein on an unconsolidated basis as “East West” and on a consolidated basis as the “Company,” “we,” “us,” “our” or “EWBC”) may make forward-looking statements in other documents that it files with, or furnishes to, the United States (“U.S.”) Securities and Exchange Commission (“SEC”) and management may make forward-looking statements to analysts, investors, media members and others. Forward-looking statements are those that do not relate to historical facts and that are based on current assumptions, beliefs, estimates, expectations and projections, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Forward-looking statements may relate to various matters, including the Company’s financial condition, results of operations, plans, objectives, future performance, business or industry, and usually can be identified by the use of forward-looking words, such as “anticipates,” “assumes,” “believes,” “can,” “continues,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “likely,” “may,” “might,” “objective,” “plans,” “potential,” “projects,” “remains,” “should,” “target,” “trend,” “will,” “would,” or similar expressions or variations thereof, and the negative thereof, but these terms are not the exclusive means of identifying such statements. You should not place undue reliance on forward-looking statements, as they are subject to risks and uncertainties.
Factors that might cause future results to differ materially from historical performance and any forward-looking statements include, but are not limited to: changes in local, regional and global business, economic and political conditions and natural or geopolitical events; the soundness of other financial institutions and the impacts related to or resulting from bank failures and other industry volatility, including potential increased regulatory requirements, FDIC insurance premiums and assessments, and deposit withdrawals; changes in laws or the regulatory environment, including trade, monetary and fiscal policies and laws and current or potential disputes between the U.S. and the People’s Republic of China; changes in the commercial and consumer real estate markets; changes in consumer or commercial spending, savings and borrowing habits, and patterns and behaviors; the Company’s ability to compete effectively against financial institutions and other entities, including as a result of emerging technologies; the success and timing of the Company’s business strategies; the Company’s ability to retain key officers and employees; changes in key variable market interest rates, competition, regulatory requirements and product mix; changes in the Company’s costs of operation, compliance and expansion; disruption, failure in, or breach of, the Company’s operational or security systems or infrastructure, or those of third party vendors with which the Company does business, including as a result of cyber-attacks, and the disclosure or misuse of confidential information; the adequacy of the Company’s risk management framework; future credit quality and performance, including expectations regarding future credit losses and allowance levels; adverse changes to the Company’s credit ratings; legal proceedings, regulatory investigations and their resolution; the Company’s capital requirements and its ability to generate capital internally or raise capital on favorable terms; the impact on the Company’s liquidity due to changes in the Company’s ability to receive dividends from its subsidiaries; any strategic acquisitions or divestitures and the introduction of new or expanded products and services or other events that may directly or indirectly result in a negative impact on the financial performance of the Company and its customers.
For a more detailed discussion of some of the factors that might cause such differences, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024 under the heading Item 1A. Risk Factors. You should treat forward-looking statements as speaking only as of the date they are made and based only on information then actually known to the Company. The Company does not undertake, and specifically disclaims any obligation to update or revise any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.
6

EAST WEST BANCORP, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEET |
($ and shares in thousands, except per share data) |
(unaudited) |
Table 1 |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  | December 31, 2024 % or Basis Point Change |
|  |  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023 |  | Qtr-o-Qtr |  | Yr-o-Yr |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |
| Cash and cash equivalents, and deposits with banks |  | $ | 5,298,940 |  | $ | 4,976,174 |  | $ | 4,625,482 |  | 6.5 | % |  | 14.6 | % |  |
| Securities purchased under resale agreements (“resale agreements”) |  | 425,000 |  | 425,000 |  | 785,000 |  | — |  |  | (45.9) |  |  |
| Available-for-sale (“AFS”) debt securities (amortized cost of $11,505,775, $10,667,293 and $6,916,491) |  | 10,846,811 |  | 10,133,877 |  | 6,188,337 |  | 7.0 |  |  | 75.3 |  |  |
| Held-to-maturity (“HTM”) debt securities, at amortized cost (fair value of $2,387,754, $2,510,352 and $2,453,971) |  | 2,917,413 |  | 2,928,399 |  | 2,956,040 |  | (0.4) |  |  | (1.3) |  |  |
| Total cash, resale agreements and debt securities |  | 19,488,164 |  | 18,463,450 |  | 14,554,859 |  | 5.5 |  |  | 33.9 |  |  |
| Loans held-for-sale (“HFS”) |  | — |  | — |  | 116 |  | — |  |  | (100.0) |  |  |
| Loans held-for-investment (“HFI”) (net of allowance for loan losses of $702,052, $696,485 and $668,743) |  | 53,024,585 |  | 52,556,696 |  | 51,542,039 |  | 0.9 |  |  | 2.9 |  |  |
| Affordable housing partnership, tax credit and Community Reinvestment Act (“CRA”) investments, net |  | 926,640 |  | 924,439 |  | 905,036 |  | 0.2 |  |  | 2.4 |  |  |
| Goodwill |  | 465,697 |  | 465,697 |  | 465,697 |  | — |  |  | — |  |  |
| Operating lease right-of-use assets |  | 81,967 |  | 82,775 |  | 94,024 |  | (1.0) |  |  | (12.8) |  |  |
| Other assets |  | 1,989,422 |  | 1,990,663 |  | 2,051,113 |  | (0.1) |  |  | (3.0) |  |  |
| Total assets |  | $ | 75,976,475 |  | $ | 74,483,720 |  | $ | 69,612,884 |  | 2.0 | % |  | 9.1 | % |  |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |
| Deposits |  | $ | 63,175,023 |  | $ | 61,700,115 |  | $ | 56,092,438 |  | 2.4 | % |  | 12.6 | % |  |
| Bank Term Funding Program (“BTFP”) borrowings |  | — |  | — |  | 4,500,000 |  | — |  |  | (100.0) |  |  |
| Federal Home Loan Bank (“FHLB”) advances |  | 3,500,000 |  | 3,500,000 |  | — |  |  | — |  |  | 100.0 |  |  |
| Long-term debt and finance lease liabilities |  | 35,974 |  | 36,055 |  | 153,011 |  | (0.2) |  |  | (76.5) |  |  |
| Operating lease liabilities |  | 89,263 |  | 90,369 |  | 102,353 |  | (1.2) |  |  | (12.8) |  |  |
| Accrued expenses and other liabilities |  | 1,453,161 |  | 1,492,642 |  | 1,814,248 |  | (2.6) |  |  | (19.9) |  |  |
| Total liabilities |  | 68,253,421 |  | 66,819,181 |  | 62,662,050 |  | 2.1 |  |  | 8.9 |  |  |
| Stockholders’ equity |  | 7,723,054 |  | 7,664,539 |  | 6,950,834 |  | 0.8 |  |  | 11.1 |  |  |
| Total liabilities and stockholders’ equity |  | $ | 75,976,475 |  | $ | 74,483,720 |  | $ | 69,612,884 |  | 2.0 | % |  | 9.1 | % |  |
| Total cash, resale agreements and debt securities/total assets |  | 25.65 | % |  | 24.79 | % |  | 20.91 | % |  | 86 |  | bps | 474 |  | bps |
| Total stockholders’ equity to assets ratio |  | 10.17 | % |  | 10.29 | % |  | 9.98 | % |  | (12) |  |  | 19 |  |  |
| Tangible common equity (“TCE”) ratio (1) |  | 9.60 | % |  | 9.72 | % |  | 9.37 | % |  | (12) |  | bps | 23 |  | bps |
| Book value per share |  | $ | 55.79 |  | $ | 55.30 |  | $ | 49.64 |  | 0.9 | % |  | 12.4 | % |  |
| Tangible book value (1) per share |  | $ | 52.39 |  | $ | 51.90 |  | $ | 46.27 |  | 0.9 |  |  | 13.2 |  |  |
| Number of common shares at period-end |  | 138,437 |  | 138,609 |  | 140,027 |  | (0.1) | % |  | (1.1) | % |  |

(1)The TCE ratio and the tangible book value 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, 2024 % Change
|  |  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023 |  | Qtr-o-Qtr |  | Yr-o-Yr
Loans: |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |
| Commercial and industrial (“C&I”) |  | $ | 17,397,158 |  |  | $ | 17,068,002 |  |  | $ | 16,581,079 |  |  | 1.9 | % |  | 4.9 | %
| Commercial real estate (“CRE”): |  |  |  |  |  |  |  |  |  |
| CRE |  | 14,655,340 |  |  | 14,568,209 |  |  | 14,777,081 |  |  | 0.6 |  |  | (0.8) |
| Multifamily residential |  | 4,953,442 |  |  | 5,141,481 |  |  | 5,023,163 |  |  | (3.7) |  |  | (1.4) |
| Construction and land |  | 666,162 |  |  | 693,775 |  |  | 663,868 |  |  | (4.0) |  |  | 0.3 |
| Total CRE |  | 20,274,944 |  |  | 20,403,465 |  |  | 20,464,112 |  |  | (0.6) |  |  | (0.9) |
Consumer: |  |  |  |  |  |  |  |  |  |
| Residential mortgage: |  |  |  |  |  |  |  |  |  |
| Single-family residential |  | 14,175,446 |  |  | 13,963,097 |  |  | 13,383,060 |  |  | 1.5 |  |  | 5.9 |
| Home equity lines of credit (“HELOCs”) |  | 1,811,628 |  |  | 1,760,716 |  |  | 1,722,204 |  |  | 2.9 |  |  | 5.2 |
| Total residential mortgage |  | 15,987,074 |  |  | 15,723,813 |  |  | 15,105,264 |  |  | 1.7 |  |  | 5.8 |
| Other consumer |  | 67,461 |  |  | 57,901 |  |  | 60,327 |  |  | 16.5 |  |  | 11.8 |
Total loans HFI (1) |  | 53,726,637 |  |  | 53,253,181 |  |  | 52,210,782 |  |  | 0.9 |  |  | 2.9 |
Loans HFS |  | — |  |  | — |  |  | 116 |  |  | — |  |  | (100.0) |
| Total loans (1) |  | 53,726,637 |  |  | 53,253,181 |  |  | 52,210,898 |  |  | 0.9 |  |  | 2.9 |
Allowance for loan losses |  | (702,052) |  |  | (696,485) |  |  | (668,743) |  |  | 0.8 |  |  | 5.0 |
| Net loans (1) |  | $ | 53,024,585 |  |  | $ | 52,556,696 |  |  | $ | 51,542,155 |  |  | 0.9 | % |  | 2.9 | %
Deposits by product: |  |  |  |  |  |  |  |  |  |
| Noninterest-bearing demand |  | $ | 15,450,428 |  |  | $ | 14,690,864 |  |  | $ | 15,539,872 |  |  | 5.2 | % |  | (0.6) | %
| Interest-bearing checking |  | 7,940,692 |  |  | 8,052,720 |  |  | 7,558,908 |  |  | (1.4) |  |  | 5.1 |
| Money market |  | 14,816,511 |  |  | 14,021,042 |  |  | 13,108,727 |  |  | 5.7 |  |  | 13.0 |
| Savings |  | 1,751,620 |  |  | 1,718,378 |  |  | 1,841,467 |  |  | 1.9 |  |  | (4.9) |
| Time deposits |  | 23,215,772 |  |  | 23,217,111 |  |  | 18,043,464 |  |  | 0.0 |  |  | 28.7 |
| Total deposits |  | $ | 63,175,023 |  |  | $ | 61,700,115 |  |  | $ | 56,092,438 |  |  | 2.4 | % |  | 12.6 | %
Deposits by segment/region: |  |  |  |  |  |  |  |  |  |
| Consumer and Business Banking - U.S. (2) |  | $ | 32,832,926 |  |  | $ | 32,104,904 |  |  | $ | 28,571,255 |  |  | 2.3 | % |  | 14.9 | %
| Commercial Banking - U.S. (2) |  | 23,405,769 |  |  | 23,212,616 |  |  | 22,059,662 |  |  | 0.8 |  |  | 6.1 |
| International Branches (3) |  | 3,412,262 |  |  | 3,307,793 |  |  | 3,172,221 |  |  | 3.2 |  |  | 7.6 |
| Treasury and Other - U.S. (4) |  | 3,524,066 |  |  | 3,074,802 |  |  | 2,289,299 |  |  | 14.6 |  |  | 53.9 |
| Total deposits |  | $ | 63,175,023 |  |  | $ | 61,700,115 |  |  | $ | 56,092,437 |  |  | 2.4 | % |  | 12.6 | %

(1)Includes $46 million, $52 million and $71 million of net deferred loan fees and net unamortized premiums as of December 31, 2024, September 30, 2024 and December 31, 2023, respectively.
(2)Excludes deposits presented under International Branches.
(3)Deposits of our Hong Kong branch and China subsidiary, primarily a subset of Commercial Banking segment deposits.
(4)Treasury and Other segment deposits reflect wholesale, public funds, and brokered deposits, primarily managed by the Company’s Treasury department.
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, 2024 % Change |  |
|  |  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023 |  | Qtr-o-Qtr |  | Yr-o-Yr |  |
Interest and dividend income |  | $ | 1,059,266 |  |  | $ | 1,075,899 |  |  | $ | 990,378 |  |  | (1.5)% |  | 7.0% |  |
Interest expense |  | 471,640 |  |  | 503,177 |  |  | 415,544 |  |  | (6.3) |  | 13.5 |  |
Net interest income before provision for credit losses |  | 587,626 |  |  | 572,722 |  |  | 574,834 |  |  | 2.6 |  | 2.2 |  |
Provision for credit losses |  | 70,000 |  |  | 42,000 |  |  | 37,000 |  |  | 66.7 |  | 89.2 |  |
Net interest income after provision for credit losses |  | 517,626 |  |  | 530,722 |  |  | 537,834 |  |  | (2.5)% |  | (3.8)% |  |
Noninterest income: |  |  |  |  |  |  |  |  |  |  |  |
| Deposit account fees |  | 26,468 |  |  | 26,815 |  |  | 23,828 |  |  | (1.3)% |  | 11.1% |  |
| Lending fees |  | 24,737 |  |  | 26,453 |  |  | 22,077 |  |  | (6.5) |  | 12.0 |  |
| Foreign exchange income |  | 16,643 |  |  | 13,569 |  |  | 13,404 |  |  | 22.7 |  | 24.2 |  |
| Wealth management fees |  | 9,829 |  |  | 10,683 |  |  | 7,780 |  |  | (8.0) |  | 26.3 |  |
| Customer derivative income |  | 3,782 |  |  | 3,774 |  |  | 6,297 |  |  | 0.2 |  | (39.9) |  |
| Total fee income | 81,459 |  |  | 81,294 |  |  | 73,386 |  |  | 0.2 |  | 11.0 |  |
| Derivative mark-to-market and credit valuation adjustments |  | 3,811 |  |  | (4,480) |  |  | (7,242) |  |  | NM |  | NM |  |
| Net gains on sales of loans |  | 8 |  |  | 21 |  |  | 3,675 |  |  | (61.9) |  | (99.8) |  |
| Net gains on AFS debt securities |  | 90 |  |  | 145 |  |  | 3,138 |  |  | (37.9) |  | (97.1) |  |
| Other investment (loss) income |  | (590) |  |  | 2,800 |  |  | 1,673 |  |  | NM |  | NM |  |
| Other income |  | 3,388 |  |  | 4,615 |  |  | 5,273 |  |  | (26.6) |  | (35.7) |  |
Total noninterest income |  | 88,166 |  |  | 84,395 |  |  | 79,903 |  |  | 4.5% |  | 10.3% |  |
Noninterest expense: |  |  |  |  |  |  |  |  |  |  |  |
| Compensation and employee benefits |  | 139,870 |  |  | 135,464 |  |  | 130,794 |  |  | 3.3% |  | 6.9% |  |
| Occupancy and equipment expense |  | 16,384 |  |  | 17,001 |  |  | 15,735 |  |  | (3.6) |  | 4.1 |  |
| Deposit account expense |  | 10,923 |  |  | 12,229 |  |  | 11,390 |  |  | (10.7) |  | (4.1) |  |
| Computer and software related expenses |  | 13,099 |  |  | 11,436 |  |  | 11,315 |  |  | 14.5 |  | 15.8 |  |
| Deposit insurance premiums and regulatory assessments (1) |  | 6,201 |  |  | 9,178 |  |  | 78,553 |  |  | (32.4) |  | (92.1) |  |
| Other operating expense |  | 44,108 |  |  | 34,892 |  |  | 38,130 |  |  | 26.4 |  | 15.7 |  |
| Total operating noninterest expense | 230,585 |  |  | 220,200 |  |  | 285,917 |  |  | 4.7 |  | (19.4) |  |
| Amortization of tax credit and CRA investments (2) |  | 19,383 |  |  | 5,600 |  |  | 4,581 |  |  | 246.1 |  | 323.1 |  |
Total noninterest expense |  | 249,968 |  |  | 225,800 |  |  | 290,498 |  |  | 10.7 |  | (14.0) |  |
Income before income taxes |  | 355,824 |  |  | 389,317 |  |  | 327,239 |  |  | (8.6) |  | 8.7 |  |
Income tax expense |  | 62,709 |  |  | 90,151 |  |  | 88,286 |  |  | (30.4) |  | (29.0) |  |
Net income |  | $ | 293,115 |  |  | $ | 299,166 |  |  | $ | 238,953 |  |  | (2.0)% |  | 22.7% |  |
Earnings per share (“EPS”) |  |  |  |  |  |  |  |  |  |  |  |
- Basic |  | $ | 2.11 |  |  | $ | 2.16 |  |  | $ | 1.70 |  |  | (2.0)% |  | 24.4% |  |
- Diluted |  | $ | 2.10 |  |  | $ | 2.14 |  |  | $ | 1.69 |  |  | (2.2) |  | 24.0 |  |
Weighted-average number of shares outstanding |  |  |  |  |  |  |  |  |  |
- Basic |  | 138,604 |  |  | 138,606 |  |  | 140,595 |  |  | 0.0% |  | (1.4)% |  |
- Diluted |  | 139,883 |  |  | 139,648 |  |  | 141,409 |  |  | 0.2 |  | (1.1) |  |

NM - Not meaningful.
(1)Includes $3 million of FDIC special assessment reversal and $70 million of FDIC special assessment charges for the three months ended December 31, 2024 and 2023, respectively.
(2)Includes $343 thousand, $11 million and $4 million in DC Solar recoveries for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, 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, 2024 % Change
|  |  | December 31, 2024 |  | December 31, 2023 |  | Yr-o-Yr
Interest and dividend income |  | $ | 4,193,196 |  |  | $ | 3,693,805 |  |  |  | 13.5% |
Interest expense |  | 1,914,480 |  |  | 1,381,551 |  |  |  | 38.6 |
Net interest income before provision for credit losses |  | 2,278,716 |  |  | 2,312,254 |  |  |  | (1.5) |
Provision for credit losses |  | 174,000 |  |  | 125,000 |  |  |  | 39.2 |
Net interest income after provision for credit losses |  | 2,104,716 |  |  | 2,187,254 |  |  |  | (3.8)% |
Noninterest income: |  |  |  |  |  |  |  |
| Deposit account fees |  | 103,880 |  |  | 93,811 |  |  |  | 10.7% |
| Lending fees |  | 98,455 |  |  | 83,876 |  |  |  | 17.4 |
| Foreign exchange income |  | 54,605 |  |  | 48,276 |  |  |  | 13.1 |
| Wealth management fees |  | 38,627 |  |  | 26,994 |  |  |  | 43.1 |
| Customer derivative income |  | 14,923 |  |  | 23,216 |  |  |  | (35.7) |
| Total fee income | 310,490 |  |  | 276,173 |  |  |  | 12.4 |
| Derivative mark-to-market and credit valuation adjustments |  | 1,478 |  |  | (3,016) |  |  |  | NM |
| Net gains on sales of loans |  | 44 |  |  | 3,634 |  |  |  | (98.8) |
| Net gains (losses) on AFS debt securities (1) |  | 2,069 |  |  | (6,862) |  |  |  | NM |
| Other investment income |  | 5,611 |  |  | 9,348 |  |  |  | (40.0) |
| Other income |  | 15,526 |  |  | 15,987 |  |  |  | (2.9) |
Total noninterest income |  | 335,218 |  |  | 295,264 |  |  |  | 13.5% |
Noninterest expense |  |  |  |  |  |  |  |
| Compensation and employee benefits |  | 550,734 |  |  | 508,538 |  |  |  | 8.3% |
| Occupancy and equipment expense |  | 64,399 |  |  | 62,763 |  |  |  | 2.6 |
| Deposit account expense |  | 47,390 |  |  | 43,143 |  |  |  | 9.8 |
| Computer and software related expenses |  | 47,271 |  |  | 44,475 |  |  |  | 6.3 |
| Deposit insurance premiums and regulatory assessments (2) |  | 45,736 |  |  | 103,308 |  |  |  | (55.7) |
| Other operating expense (3) |  | 148,301 |  |  | 140,222 |  |  |  | 5.8 |
| Total operating noninterest expense | 903,831 |  |  | 902,449 |  |  |  | 0.2 |
| Amortization of tax credit and CRA investments (4) |  | 54,242 |  |  | 120,299 |  |  |  | (54.9) |
Total noninterest expense |  | 958,073 |  |  | 1,022,748 |  |  |  | (6.3) |
Income before income taxes |  | 1,481,861 |  |  | 1,459,770 |  |  |  | 1.5 |
Income tax expense |  | 316,275 |  |  | 298,609 |  |  |  | 5.9 |
Net income |  | $ | 1,165,586 |  |  | $ | 1,161,161 |  |  |  | 0.4% |
EPS |  |  |  |  |  |  |  |
- Basic |  | $ | 8.39 |  |  | $ | 8.23 |  |  |  | 2.0% |
- Diluted |  | $ | 8.33 |  |  | $ | 8.18 |  |  |  | 1.8 |
Weighted-average number of shares outstanding |  |  |  |  |  |  |  |
- Basic |  | 138,898 |  |  | 141,164 |  |  |  | (1.6)% |
- Diluted |  | 139,958 |  |  | 141,902 |  |  |  | (1.4) |

NM - Not meaningful.
(1)Includes $7 million of net losses on an AFS debt security for the twelve months ended December 31, 2023.
(2)Includes $9 million and $70 million of FDIC special assessment charges for the twelve months ended December 31, 2024 and 2023, respectively.
(3)Include s $4 million of repurchase agreements’ extinguishment cost for the twelve months ended December 31, 2023.
(4)Includes $15 million and $9 million of DC Solar recoveries for the twelve months ended December 31, 2024 and 2023, respectively.
10

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED AVERAGE BALANCES
($ in thousands)
(unaudited)
Table 5 |  |  |  |  |  |
|  |  | Three Months Ended |  | December 31, 2024 % Change |  | Year Ended |  | December 31, 2024 % Change
|  |  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023 |  | Qtr-o-Qtr |  | Yr-o-Yr |  | December 31, 2024 |  | December 31, 2023 |  | Yr-o-Yr
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C&I |  | $ | 17,010,327 |  |  | $ | 16,492,589 |  |  | $ | 15,948,678 |  |  | 3.1% |  | 6.7% |  | $ | 16,492,472 |  |  | $ | 15,499,899 |  |  | 6.4%
| CRE: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CRE |  | 14,580,509 |  |  | 14,483,163 |  |  | 14,723,027 |  |  | 0.7 |  | (1.0) |  | 14,587,444 |  |  | 14,312,459 |  |  | 1.9
| Multifamily residential |  | 5,046,676 |  |  | 5,127,659 |  |  | 4,939,119 |  |  | (1.6) |  | 2.2 |  | 5,061,821 |  |  | 4,756,885 |  |  | 6.4
| Construction and land |  | 680,374 |  |  | 661,840 |  |  | 752,783 |  |  | 2.8 |  | (9.6) |  | 666,748 |  |  | 754,928 |  |  | (11.7)
| Total CRE |  | 20,307,559 |  |  | 20,272,662 |  |  | 20,414,929 |  |  | 0.2 |  | (0.5) |  | 20,316,013 |  |  | 19,824,272 |  |  | 2.5
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Single-family residential |  | 14,048,515 |  |  | 13,846,946 |  |  | 13,097,056 |  |  | 1.5 |  | 7.3 |  | 13,753,295 |  |  | 12,274,776 |  |  | 12.0
| HELOCs |  | 1,775,587 |  |  | 1,754,361 |  |  | 1,732,348 |  |  | 1.2 |  | 2.5 |  | 1,751,500 |  |  | 1,881,008 |  |  | (6.9)
| Total residential mortgage |  | 15,824,102 |  |  | 15,601,307 |  |  | 14,829,404 |  |  | 1.4 |  | 6.7 |  | 15,504,795 |  |  | 14,155,784 |  |  | 9.5
| Other consumer |  | 59,273 |  |  | 53,958 |  |  | 59,245 |  |  | 9.9 |  | 0.0 |  | 55,500 |  |  | 65,181 |  |  | (14.9)
| Total loans (1) |  | $ | 53,201,261 |  |  | $ | 52,420,516 |  |  | $ | 51,252,256 |  |  | 1.5% |  | 3.8% |  | $ | 52,368,780 |  |  | $ | 49,545,136 |  |  | 5.7%
Interest-earning assets |  | $ | 72,150,099 |  |  | $ | 70,263,495 |  |  | $ | 65,505,724 |  |  | 2.7% |  | 10.1% |  | $ | 69,718,884 |  |  | $ | 64,039,402 |  |  | 8.9%
Total assets |  | $ | 75,121,440 |  |  | $ | 73,268,158 |  |  | $ | 69,421,959 |  |  | 2.5% |  | 8.2% |  | $ | 72,821,842 |  |  | $ | 67,757,505 |  |  | 7.5%
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Noninterest-bearing demand |  | $ | 14,973,805 |  |  | $ | 14,606,511 |  |  | $ | 15,884,525 |  |  | 2.5% |  | (5.7)% |  | $ | 14,799,961 |  |  | $ | 17,192,978 |  |  | (13.9)%
| Interest-bearing checking |  | 7,998,098 |  |  | 7,762,719 |  |  | 7,608,234 |  |  | 3.0 |  | 5.1 |  | 7,731,828 |  |  | 7,658,414 |  |  | 1.0
| Money market |  | 14,313,494 |  |  | 14,201,258 |  |  | 12,824,121 |  |  | 0.8 |  | 11.6 |  | 13,970,375 |  |  | 11,680,540 |  |  | 19.6
| Savings |  | 1,731,414 |  |  | 1,744,644 |  |  | 1,873,276 |  |  | (0.8) |  | (7.6) |  | 1,770,041 |  |  | 2,128,943 |  |  | (16.9)
| Time deposits |  | 22,931,856 |  |  | 22,270,124 |  |  | 17,216,367 |  |  | 3.0 |  | 33.2 |  | 21,400,834 |  |  | 16,301,856 |  |  | 31.3
| Total deposits |  | $ | 61,948,667 |  |  | $ | 60,585,256 |  |  | $ | 55,406,523 |  |  | 2.3% |  | 11.8% |  | $ | 59,673,039 |  |  | $ | 54,962,731 |  |  | 8.6%

(1)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, 2024 |  | September 30, 2024 |  |
|  |  | Average Balance |  | Interest |  | Average Yield/Rate (1) |  | Average Balance |  | Interest |  | Average Yield/Rate (1) |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Interest-bearing cash and deposits with banks |  | $ | 4,585,135 |  |  | $ | 47,946 |  |  | 4.16 | % |  | $ | 4,987,191 |  |  | $ | 60,060 |  |  | 4.79 | % |  |
| Resale agreements |  | 425,000 |  |  | 1,591 |  |  | 1.49 | % |  | 443,261 |  |  | 1,663 |  |  | 1.49 | % |  |
| Debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AFS |  | 10,852,569 |  |  | 125,628 |  |  | 4.61 | % |  | 9,316,232 |  |  | 111,552 |  |  | 4.76 | % |  |
| HTM |  | 2,921,096 |  |  | 12,330 |  |  | 1.68 | % |  | 2,931,033 |  |  | 12,431 |  |  | 1.69 | % |  |
| Total debt securities |  | 13,773,665 |  |  | 137,958 |  |  | 3.98 | % |  | 12,247,265 |  |  | 123,983 |  |  | 4.03 | % |  |
| Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C&I |  | 17,010,327 |  |  | 317,374 |  |  | 7.42 | % |  | 16,492,589 |  |  | 328,619 |  |  | 7.93 | % |  |
| CRE |  | 20,307,559 |  |  | 317,526 |  |  | 6.22 | % |  | 20,272,662 |  |  | 328,254 |  |  | 6.44 | % |  |
| Residential mortgage |  | 15,824,102 |  |  | 233,147 |  |  | 5.86 | % |  | 15,601,307 |  |  | 229,727 |  |  | 5.86 | % |  |
| Other consumer |  | 59,273 |  |  | 749 |  |  | 5.03 | % |  | 53,958 |  |  | 753 |  |  | 5.55 | % |  |
| Total loans (2) |  | 53,201,261 |  |  | 868,796 |  |  | 6.50 | % |  | 52,420,516 |  |  | 887,353 |  |  | 6.73 | % |  |
| FHLB and FRB stock |  | 165,038 |  |  | 2,975 |  |  | 7.17 | % |  | 165,262 |  |  | 2,840 |  |  | 6.84 | % |  |
| Total interest-earning assets |  | $ | 72,150,099 |  |  | $ | 1,059,266 |  |  | 5.84 | % |  | $ | 70,263,495 |  |  | $ | 1,075,899 |  |  | 6.09 | % |  |
Noninterest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Cash and due from banks |  | 381,012 |  |  |  |  |  |  | 341,856 |  |  |  |  |  |  |
| Allowance for loan losses |  | (707,689) |  |  |  |  |  |  | (691,399) |  |  |  |  |  |  |
| Other assets |  | 3,298,018 |  |  |  |  |  |  | 3,354,206 |  |  |  |  |  |  |
| Total assets |  | $ | 75,121,440 |  |  |  |  |  |  | $ | 73,268,158 |  |  |  |  |  |  |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Checking deposits |  | $ | 7,998,098 |  |  | $ | 56,640 |  |  | 2.82 | % |  | $ | 7,762,719 |  |  | $ | 58,226 |  |  | 2.98 | % |  |
| Money market deposits |  | 14,313,494 |  |  | 119,420 |  |  | 3.32 | % |  | 14,201,258 |  |  | 136,384 |  |  | 3.82 | % |  |
| Savings deposits |  | 1,731,414 |  |  | 3,829 |  |  | 0.88 | % |  | 1,744,644 |  |  | 4,811 |  |  | 1.10 | % |  |
| Time deposits |  | 22,931,856 |  |  | 248,533 |  |  | 4.31 | % |  | 22,270,124 |  |  | 254,650 |  |  | 4.55 | % |  |
| Total interest-bearing deposits |  | 46,974,862 |  |  | 428,422 |  |  | 3.63 | % |  | 45,978,745 |  |  | 454,071 |  |  | 3.93 | % |  |
| Short-term borrowings and federal funds purchased |  | 783 |  |  | 9 |  |  | 4.57 | % |  | 1,170 |  |  | 16 |  |  | 5.44 | % |  |
| FHLB advances |  | 3,500,001 |  |  | 42,429 |  |  | 4.82 | % |  | 3,440,219 |  |  | 48,261 |  |  | 5.58 | % |  |
| Assets sold under repurchase agreements (“repurchase agreements”) |  | 4,337 |  |  | 55 |  |  | 5.05 | % |  | 3,455 |  |  | 49 |  |  | 5.64 | % |  |
| Long-term debt and finance lease liabilities |  | 36,123 |  |  | 725 |  |  | 7.98 | % |  | 36,084 |  |  | 780 |  |  | 8.60 | % |  |
| Total interest-bearing liabilities |  | $ | 50,516,106 |  |  | $ | 471,640 |  |  | 3.71 | % |  | $ | 49,459,673 |  |  | $ | 503,177 |  |  | 4.05 | % |  |
Noninterest-bearing liabilities and stockholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |
| Demand deposits |  | 14,973,805 |  |  |  |  |  |  | 14,606,511 |  |  |  |  |  |  |
| Accrued expenses and other liabilities |  | 1,900,205 |  |  |  |  |  |  | 1,758,641 |  |  |  |  |  |  |
| Stockholders’ equity |  | 7,731,324 |  |  |  |  |  |  | 7,443,333 |  |  |  |  |  |  |
| Total liabilities and stockholders’ equity |  | $ | 75,121,440 |  |  |  |  |  |  | $ | 73,268,158 |  |  |  |  |  |  |
| Total deposits |  | $ | 61,948,667 |  |  | $ | 428,422 |  |  | 2.75 | % |  | $ | 60,585,256 |  |  | $ | 454,071 |  |  | 2.98 | % |  |
Interest rate spread |  |  |  |  |  | 2.13 | % |  |  |  |  |  | 2.04 | % |  |
Net interest income and net interest margin |  |  |  | $ | 587,626 |  |  | 3.24 | % |  |  |  | $ | 572,722 |  |  | 3.24 | % |  |

(1)Annualized.
(2)Includes loans HFS.
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, 2024 |  | December 31, 2023 |  |  |
| Average Balance |  | Interest |  | Average Yield/Rate (1) |  | Average Balance |  | Interest |  | Average Yield/Rate (1) |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Interest-bearing cash and deposits with banks |  | $ | 4,585,135 |  |  | $ | 47,946 |  |  | 4.16 | % |  | $ | 4,445,115 |  |  | $ | 56,250 |  |  | 5.02 | % |  |  |
| Resale agreements |  | 425,000 |  |  | 1,591 |  |  | 1.49 | % |  | 785,000 |  |  | 7,232 |  |  | 3.66 | % |  |  |
| Debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AFS |  | 10,852,569 |  |  | 125,628 |  |  | 4.61 | % |  | 5,985,361 |  |  | 58,926 |  |  | 3.91 | % |  |  |
| HTM |  | 2,921,096 |  |  | 12,330 |  |  | 1.68 | % |  | 2,958,294 |  |  | 12,585 |  |  | 1.69 | % |  |  |
| Total debt securities |  | 13,773,665 |  |  | 137,958 |  |  | 3.98 | % |  | 8,943,655 |  |  | 71,511 |  |  | 3.17 | % |  |  |
| Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C&I |  | 17,010,327 |  |  | 317,374 |  |  | 7.42 | % |  | 15,948,678 |  |  | 321,026 |  |  | 7.99 | % |  |  |
| CRE |  | 20,307,559 |  |  | 317,526 |  |  | 6.22 | % |  | 20,414,929 |  |  | 327,194 |  |  | 6.36 | % |  |  |
| Residential mortgage |  | 15,824,102 |  |  | 233,147 |  |  | 5.86 | % |  | 14,829,404 |  |  | 205,371 |  |  | 5.49 | % |  |  |
| Other consumer |  | 59,273 |  |  | 749 |  |  | 5.03 | % |  | 59,245 |  |  | 786 |  |  | 5.26 | % |  |  |
| Total loans (2) |  | 53,201,261 |  |  | 868,796 |  |  | 6.50 | % |  | 51,252,256 |  |  | 854,377 |  |  | 6.61 | % |  |  |
| FHLB and FRB stock |  | 165,038 |  |  | 2,975 |  |  | 7.17 | % |  | 79,698 |  |  | 1,008 |  |  | 5.02 | % |  |  |
| Total interest-earning assets |  | $ | 72,150,099 |  |  | $ | 1,059,266 |  |  | 5.84 | % |  | $ | 65,505,724 |  |  | $ | 990,378 |  |  | 6.00 | % |  |  |
Noninterest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Cash and due from banks |  | 381,012 |  |  |  |  |  |  | 489,055 |  |  |  |  |  |  |  |
| Allowance for loan losses |  | (707,689) |  |  |  |  |  |  | (650,724) |  |  |  |  |  |  |  |
| Other assets |  | 3,298,018 |  |  |  |  |  |  | 4,077,904 |  |  |  |  |  |  |  |
| Total assets |  | $ | 75,121,440 |  |  |  |  |  |  | $ | 69,421,959 |  |  |  |  |  |  |  |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Checking deposits |  | $ | 7,998,098 |  |  | $ | 56,640 |  |  | 2.82 | % |  | $ | 7,608,234 |  |  | $ | 52,170 |  |  | 2.72 | % |  |  |
| Money market deposits |  | 14,313,494 |  |  | 119,420 |  |  | 3.32 | % |  | 12,824,121 |  |  | 123,744 |  |  | 3.83 | % |  |  |
| Savings deposits |  | 1,731,414 |  |  | 3,829 |  |  | 0.88 | % |  | 1,873,276 |  |  | 3,894 |  |  | 0.82 | % |  |  |
| Time deposits |  | 22,931,856 |  |  | 248,533 |  |  | 4.31 | % |  | 17,216,367 |  |  | 183,175 |  |  | 4.22 | % |  |  |
| Total interest-bearing deposits |  | 46,974,862 |  |  | 428,422 |  |  | 3.63 | % |  | 39,521,998 |  |  | 362,983 |  |  | 3.64 | % |  |  |
| Short-term borrowings and federal funds purchased |  | 783 |  |  | 9 |  |  | 4.57 | % |  | 4,500,475 |  |  | 49,570 |  |  | 4.37 | % |  |  |
| Repurchase agreements |  | 4,337 |  |  | 55 |  |  | 5.05 | % |  | 2,876 |  |  | 41 |  |  | 5.66 | % |  |  |
| FHLB advances |  | 3,500,001 |  |  | 42,429 |  |  | 4.82 | % |  | 1 |  |  | — |  |  | — | % |  |  |
| Long-term debt and finance lease liabilities |  | 36,123 |  |  | 725 |  |  | 7.98 | % |  | 153,010 |  |  | 2,950 |  |  | 7.65 | % |  |  |
| Total interest-bearing liabilities |  | $ | 50,516,106 |  |  | $ | 471,640 |  |  | 3.71 | % |  | $ | 44,178,360 |  |  | $ | 415,544 |  |  | 3.73 | % |  |  |
Noninterest-bearing liabilities and stockholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |  |
| Demand deposits |  | 14,973,805 |  |  |  |  |  |  | 15,884,525 |  |  |  |  |  |  |  |
| Accrued expenses and other liabilities |  | 1,900,205 |  |  |  |  |  |  | 2,663,222 |  |  |  |  |  |  |  |
| Stockholders’ equity |  | 7,731,324 |  |  |  |  |  |  | 6,695,852 |  |  |  |  |  |  |  |
| Total liabilities and stockholders’ equity |  | $ | 75,121,440 |  |  |  |  |  |  | $ | 69,421,959 |  |  |  |  |  |  |  |
| Total deposits |  | $ | 61,948,667 |  |  | $ | 428,422 |  |  | 2.75 | % |  | $ | 55,406,523 |  |  | $ | 362,983 |  |  | 2.60 | % |  |  |
Interest rate spread |  |  |  |  |  | 2.13 | % |  |  |  |  |  | 2.27 | % |  |  |
Net interest income and net interest margin |  |  |  | $ | 587,626 |  |  | 3.24 | % |  |  |  | $ | 574,834 |  |  | 3.48 | % |  |  |

(1)Annualized.
(2)Includes loans HFS.
13

EAST WEST BANCORP, INC. AND SUBSIDIARIES
YEAR-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 8 |  |
| Year Ended |  |
December 31, 2024 |  | December 31, 2023 |  |
Average Balance |  | Interest |  | Average Yield/Rate |  | Average Balance |  | Interest |  | Average Yield/Rate |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Interest-bearing cash and deposits with banks |  | $ | 4,936,550 |  |  | $ | 231,794 |  |  | 4.70 | % |  | $ | 4,638,630 |  |  | $ | 220,643 |  |  | 4.76 | % |  |
| Assets purchased under resale agreements (1) |  | 519,263 |  |  | 11,254 |  |  | 2.17 | % |  | 691,223 |  |  | 20,164 |  |  | 2.92 | % |  |
| Debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AFS |  | 8,811,274 |  |  | 399,280 |  |  | 4.53 | % |  | 6,105,999 |  |  | 225,592 |  |  | 3.69 | % |  |
| HTM |  | 2,935,937 |  |  | 49,785 |  |  | 1.70 | % |  | 2,976,237 |  |  | 50,598 |  |  | 1.70 | % |  |
| Total debt securities |  | 11,747,211 |  |  | 449,065 |  |  | 3.82 | % |  | 9,082,236 |  |  | 276,190 |  |  | 3.04 | % |  |
| Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C&I |  | 16,492,472 |  |  | 1,294,451 |  |  | 7.85 | % |  | 15,499,899 |  |  | 1,190,940 |  |  | 7.68 | % |  |
| CRE |  | 20,316,013 |  |  | 1,292,973 |  |  | 6.36 | % |  | 19,824,272 |  |  | 1,227,795 |  |  | 6.19 | % |  |
| Residential mortgage |  | 15,504,795 |  |  | 900,514 |  |  | 5.81 | % |  | 14,155,784 |  |  | 750,813 |  |  | 5.30 | % |  |
| Other consumer |  | 55,500 |  |  | 3,041 |  |  | 5.48 | % |  | 65,181 |  |  | 3,198 |  |  | 4.91 | % |  |
| Total loans (2) |  | 52,368,780 |  |  | 3,490,979 |  |  | 6.67 | % |  | 49,545,136 |  |  | 3,172,746 |  |  | 6.40 | % |  |
| FHLB and FRB stock |  | 147,080 |  |  | 10,104 |  |  | 6.87 | % |  | 82,177 |  |  | 4,062 |  |  | 4.94 | % |  |
| Total interest-earning assets |  | $ | 69,718,884 |  |  | $ | 4,193,196 |  |  | 6.01 | % |  | $ | 64,039,402 |  |  | $ | 3,693,805 |  |  | 5.77 | % |  |
Noninterest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Cash and due from banks |  | 345,056 |  |  |  |  |  |  | 555,689 |  |  |  |  |  |  |
| Allowance for loan losses |  | (688,448) |  |  |  |  |  |  | (625,785) |  |  |  |  |  |  |
| Other assets |  | 3,446,350 |  |  |  |  |  |  | 3,788,199 |  |  |  |  |  |  |
| Total assets |  | $ | 72,821,842 |  |  |  |  |  |  | $ | 67,757,505 |  |  |  |  |  |  |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Checking deposits |  | $ | 7,731,828 |  |  | $ | 221,367 |  |  | 2.86 | % |  | $ | 7,658,414 |  |  | $ | 179,200 |  |  | 2.34 | % |  |
| Money market deposits |  | 13,970,375 |  |  | 525,870 |  |  | 3.76 | % |  | 11,680,540 |  |  | 399,482 |  |  | 3.42 | % |  |
| Savings deposits |  | 1,770,041 |  |  | 17,764 |  |  | 1.00 | % |  | 2,128,943 |  |  | 15,573 |  |  | 0.73 | % |  |
| Time deposits |  | 21,400,834 |  |  | 955,173 |  |  | 4.46 | % |  | 16,301,856 |  |  | 611,295 |  |  | 3.75 | % |  |
| Total interest-bearing deposits |  | 44,873,078 |  |  | 1,720,174 |  |  | 3.83 | % |  | 37,769,753 |  |  | 1,205,550 |  |  | 3.19 | % |  |
| BTFP, short-term borrowings and federal funds purchased |  | 962,061 |  |  | 42,163 |  |  | 4.38 | % |  | 3,591,114 |  |  | 157,002 |  |  | 4.37 | % |  |
| FHLB advances |  | 2,752,733 |  |  | 147,269 |  |  | 5.35 | % |  | 123,288 |  |  | 6,430 |  |  | 5.22 | % |  |
| Repurchase agreements |  | 3,613 |  |  | 197 |  |  | 5.45 | % |  | 34,443 |  |  | 1,497 |  |  | 4.35 | % |  |
| Long-term debt and finance lease liabilities |  | 58,467 |  |  | 4,677 |  |  | 8.00 | % |  | 152,790 |  |  | 11,072 |  |  | 7.25 | % |  |
| Total interest-bearing liabilities |  | $ | 48,649,952 |  |  | $ | 1,914,480 |  |  | 3.94 | % |  | $ | 41,671,388 |  |  | $ | 1,381,551 |  |  | 3.32 | % |  |
Noninterest-bearing liabilities and stockholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |
| Demand deposits |  | 14,799,961 |  |  |  |  |  |  | 17,192,978 |  |  |  |  |  |  |
| Accrued expenses and other liabilities |  | 2,056,755 |  |  |  |  |  |  | 2,410,154 |  |  |  |  |  |  |
| Stockholders’ equity |  | 7,315,174 |  |  |  |  |  |  | 6,482,985 |  |  |  |  |  |  |
| Total liabilities and stockholders’ equity |  | $ | 72,821,842 |  |  |  |  |  |  | $ | 67,757,505 |  |  |  |  |  |  |
| Total deposits |  | $ | 59,673,039 |  |  | $ | 1,720,174 |  |  | 2.88 | % |  | $ | 54,962,731 |  |  | $ | 1,205,550 |  |  | 2.19 | % |  |
Interest rate spread |  |  |  |  |  | 2.07 | % |  |  |  |  |  | 2.45 | % |  |
Net interest income and net interest margin |  |  |  | $ | 2,278,716 |  |  | 3.27 | % |  |  |  | $ | 2,312,254 |  |  | 3.61 | % |  |

(1)Includes the average balances and interest income for securities and loans purchased under resale agreements for the twelve months ended December 31, 2023. There were no loans purchased under resale agreements for the twelve months ended December 31, 2024.
(2)Includes loans HFS.
14

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED RATIOS
(unaudited)
Table 9
|  | Three Months Ended (1) |  | December 31, 2024 Basis Point Change
|  |  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023 |  | Qtr-o-Qtr |  | Yr-o-Yr |
| Return on average assets |  | 1.55 | % |  | 1.62 | % |  | 1.37 | % |  | (7) |  | bps | 18 |  | bps
| Return on average common equity |  | 15.08 | % |  | 15.99 | % |  | 14.16 | % |  | (91) |  |  | 92 |  |
| Return on average TCE (2) |  | 16.07 | % |  | 17.08 | % |  | 15.26 | % |  | (101) |  |  | 81 |  |
| Interest rate spread |  | 2.13 | % |  | 2.04 | % |  | 2.27 | % |  | 9 |  |  | (14) |  |
| Net interest margin |  | 3.24 | % |  | 3.24 | % |  | 3.48 | % |  | — |  |  | (24) |  |
| Average loan yield |  | 6.50 | % |  | 6.73 | % |  | 6.61 | % |  | (23) |  |  | (11) |  |
| Yield on average interest-earning assets |  | 5.84 | % |  | 6.09 | % |  | 6.00 | % |  | (25) |  |  | (16) |  |
| Average cost of interest-bearing deposits |  | 3.63 | % |  | 3.93 | % |  | 3.64 | % |  | (30) |  |  | (1) |  |
| Average cost of deposits |  | 2.75 | % |  | 2.98 | % |  | 2.60 | % |  | (23) |  |  | 15 |  |
| Average cost of funds |  | 2.87 | % |  | 3.12 | % |  | 2.74 | % |  | (25) |  |  | 13 |  |
| Operating noninterest expense/average assets |  | 1.22 | % |  | 1.20 | % |  | 1.63 | % |  | 2 |  |  | (41) |  |
| Efficiency ratio |  | 36.92 | % |  | 34.34 | % |  | 44.34 | % |  | 258 |  |  | (742) |  |
| Effective tax rate |  | 17.62 | % |  | 23.16 | % |  | 26.98 | % |  | (554) |  | bps | (936) |  | bps
|  |  | Year Ended |  | December 31, 2024 Basis Point Change |  |  |  |  |
|  |  | December 31, 2024 |  | December 31, 2023 |  | Yr-o-Yr |  |  |  |  |
| Return on average assets |  | 1.60 | % |  | 1.71 | % |  | (11) |  | bps |  |  |
| Return on average common equity |  | 15.93 | % |  | 17.91 | % |  | (198) |  |  |  |  |  |
| Return on average TCE (2) |  | 17.05 | % |  | 19.35 | % |  | (230) |  |  |  |  |  |
| Interest rate spread |  | 2.07 | % |  | 2.45 | % |  | (38) |  |  |  |  |  |
| Net interest margin |  | 3.27 | % |  | 3.61 | % |  | (34) |  |  |  |  |  |
| Average loan yield |  | 6.67 | % |  | 6.40 | % |  | 27 |  |  |  |  |  |
| Yield on average interest-earning assets |  | 6.01 | % |  | 5.77 | % |  | 24 |  |  |  |  |  |
| Average cost of interest-bearing deposits |  | 3.83 | % |  | 3.19 | % |  | 64 |  |  |  |  |  |
| Average cost of deposits |  | 2.88 | % |  | 2.19 | % |  | 69 |  |  |  |  |  |
| Average cost of funds |  | 3.02 | % |  | 2.35 | % |  | 67 |  |  |  |  |  |
| Operating noninterest expense/average assets |  | 1.24 | % |  | 1.33 | % |  | (9) |  |  |  |  |  |
| Efficiency ratio |  | 36.59 | % |  | 39.20 | % |  | (261) |  |  |  |  |  |
| Effective tax rate |  | 21.34 | % |  | 20.46 | % |  | 88 |  | bps |  |  |
|  |  |  |  |  |  |  |  | December 31, 2024 Basis Point Change
|  |  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023 |  | Qtr-o-Qtr |  | Yr-o-Yr |
| Loan-to-deposit ratio |  | 85.04 | % |  | 86.31 | % |  | 93.08 | % |  | (127) |  |  | (804) |  |

(1)Annualized except for efficiency ratio and effective tax rate.
(2)Return on average TCE is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP financial measures in Table 13.
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, 2024
|  |  | Commercial |  | Consumer |  |
|  |  |  |  | CRE |  |  | Residential Mortgage |  |  |  |  |
($ in thousands) |  |  | C&I |  | CRE |  | Multifamily Residential |  | Construction and Land |  |  | Single-Family Residential |  | HELOCs |  |  | Other Consumer |  | Total
Allowance for loan losses, September 30, 2024 |  |  | $ | 378,315 |  |  | $ | 221,244 |  |  | $ | 31,782 |  |  | $ | 12,208 |  |  |  | $ | 48,231 |  |  | $ | 3,210 |  |  |  | $ | 1,495 |  |  | $ | 696,485 |
Provision for (reversal of) credit losses on loans | (a) |  | 66,318 |  |  | (2,634) |  |  | 149 |  |  | 5,286 |  |  |  | (3,416) |  |  | (81) |  |  |  | 3,921 |  |  | 69,543 |
Gross charge-offs |  |  | (62,021) |  |  | (1) |  |  | (4) |  |  | — |  |  |  | — |  |  | (5) |  |  |  | (3,922) |  |  | (65,953) |
Gross recoveries |  |  | 2,140 |  |  | 68 |  |  | 190 |  |  | 3 |  |  |  | 1 |  |  | 8 |  |  |  | — |  |  | 2,410 |
Total net (charge-offs) recoveries |  |  | (59,881) |  |  | 67 |  |  | 186 |  |  | 3 |  |  |  | 1 |  |  | 3 |  |  |  | (3,922) |  |  | (63,543) |
Foreign currency translation adjustment |  |  | (433) |  |  | — |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  |  | — |  |  | (433) |
Allowance for loan losses, December 31, 2024 |  |  | $ | 384,319 |  |  | $ | 218,677 |  |  | $ | 32,117 |  |  | $ | 17,497 |  |  |  | $ | 44,816 |  |  | $ | 3,132 |  |  |  | $ | 1,494 |  |  | $ | 702,052 |

|  |  | Three Months Ended September 30, 2024 |  |
|  |  | Commercial |  | Consumer |  |  |  |  |
|  |  |  |  | CRE |  |  | Residential Mortgage |  |  |  |  |  |  |  |
($ in thousands) |  |  | C&I |  | CRE |  | Multifamily Residential |  | Construction and Land |  |  | Single-Family Residential |  | HELOCs |  |  | Other Consumer |  | Total |  |  |
Allowance for loan losses, June 30, 2024 |  |  | $ | 379,984 |  |  | $ | 194,794 |  |  | $ | 40,254 |  |  | $ | 14,322 |  |  |  | $ | 49,523 |  |  | $ | 3,340 |  |  |  | $ | 1,577 |  |  | $ | 683,794 |  |  |  |
Provision for (reversal of) credit losses on loans | (a) |  | 26,416 |  |  | 27,123 |  |  | (8,493) |  |  | (1,975) |  |  |  | (1,293) |  |  | (128) |  |  |  | 67 |  |  | 41,717 |  |  |  |
Gross charge-offs |  |  | (29,260) |  |  | (734) |  |  | — |  |  | (145) |  |  |  | — |  |  | (10) |  |  |  | (149) |  |  | (30,298) |  |  |  |
Gross recoveries |  |  | 838 |  |  | 61 |  |  | 21 |  |  | 6 |  |  |  | 1 |  |  | 8 |  |  |  | — |  |  | 935 |  |  |  |
Total net (charge-offs) recoveries |  |  | (28,422) |  |  | (673) |  |  | 21 |  |  | (139) |  |  |  | 1 |  |  | (2) |  |  |  | (149) |  |  | (29,363) |  |  |  |
Foreign currency translation adjustment |  |  | 337 |  |  | — |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  |  | — |  |  | 337 |  |  |  |
Allowance for loan losses, September 30, 2024 |  |  | $ | 378,315 |  |  | $ | 221,244 |  |  | $ | 31,782 |  |  | $ | 12,208 |  |  |  | $ | 48,231 |  |  | $ | 3,210 |  |  |  | $ | 1,495 |  |  | $ | 696,485 |  |  |  |

|  |  | Three Months Ended December 31, 2023
|  |  | Commercial |  | Consumer |  |  |
|  |  |  |  | CRE |  |  | Residential Mortgage |  |  |  |  |  |
($ in thousands) |  |  | C&I |  | CRE |  | Multifamily Residential |  | Construction and Land |  |  | Single-Family Residential |  | HELOCs |  |  | Other Consumer |  | Total |
Allowance for loan losses, September 30, 2023 |  |  | $ | 383,677 |  |  | $ | 178,040 |  |  | $ | 24,162 |  |  | $ | 9,216 |  |  |  | $ | 54,930 |  |  | $ | 3,795 |  |  |  | $ | 1,703 |  |  | $ | 655,523 |  |
Provision for (reversal of) credit losses on loans | (a) |  | 27,732 |  |  | (6,306) |  |  | 10,151 |  |  | 1,030 |  |  |  | 88 |  |  | 145 |  |  |  | 50 |  |  | 32,890 |  |
Gross charge-offs |  |  | (20,264) |  |  | (1,210) |  |  | (3) |  |  | — |  |  |  | — |  |  | — |  |  |  | (96) |  |  | (21,573) |  |
Gross recoveries |  |  | 1,248 |  |  | 68 |  |  | 65 |  |  | 223 |  |  |  | — |  |  | 7 |  |  |  | — |  |  | 1,611 |  |
Total net (charge-offs) recoveries |  |  | (19,016) |  |  | (1,142) |  |  | 62 |  |  | 223 |  |  |  | — |  |  | 7 |  |  |  | (96) |  |  | (19,962) |  |
Foreign currency translation adjustment |  |  | 292 |  |  | — |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  |  | — |  |  | 292 |  |
Allowance for loan losses, December 31, 2023 |  |  | $ | 392,685 |  |  | $ | 170,592 |  |  | $ | 34,375 |  |  | $ | 10,469 |  |  |  | $ | 55,018 |  |  | $ | 3,947 |  |  |  | $ | 1,657 |  |  | $ | 668,743 |  |

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, 2024
|  |  | Commercial |  | Consumer |  |
|  |  |  |  | CRE |  |  | Residential Mortgage |  |  |  |  |
($ in thousands) |  |  | C&I |  | CRE |  | Multifamily Residential |  | Construction and Land |  |  | Single-Family Residential |  | HELOCs |  |  | Other Consumer |  | Total
Allowance for loan losses, December 31, 2023 |  |  | $ | 392,685 |  |  | $ | 170,592 |  |  | $ | 34,375 |  |  | $ | 10,469 |  |  |  | $ | 55,018 |  |  | $ | 3,947 |  |  |  | $ | 1,657 |  |  | $ | 668,743 |
Provision for (reversal of) credit losses on loans | (a) |  | 110,791 |  |  | 61,908 |  |  | (2,684) |  |  | 9,114 |  |  |  | (10,176) |  |  | (873) |  |  |  | 4,096 |  |  | 172,176 |
Gross charge-offs |  |  | (125,413) |  |  | (14,236) |  |  | (10) |  |  | (2,289) |  |  |  | (35) |  |  | (15) |  |  |  | (4,259) |  |  | (146,257) |
Gross recoveries |  |  | 6,505 |  |  | 413 |  |  | 436 |  |  | 203 |  |  |  | 9 |  |  | 73 |  |  |  | — |  |  | 7,639 |
Total net (charge-offs) recoveries |  |  | (118,908) |  |  | (13,823) |  |  | 426 |  |  | (2,086) |  |  |  | (26) |  |  | 58 |  |  |  | (4,259) |  |  | (138,618) |
Foreign currency translation adjustment |  |  | (249) |  |  | — |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  |  | — |  |  | (249) |
Allowance for loan losses, December 31, 2024 |  |  | $ | 384,319 |  |  | $ | 218,677 |  |  | $ | 32,117 |  |  | $ | 17,497 |  |  |  | $ | 44,816 |  |  | $ | 3,132 |  |  |  | $ | 1,494 |  |  | $ | 702,052 |

|  |  | Year Ended December 31, 2023 |  |  |
|  |  | Commercial |  | Consumer |  |  |  |  |
|  |  |  |  | CRE |  |  | Residential Mortgage |  |  |  |  |  |  |  |
($ in thousands) |  |  | C&I |  | CRE |  | Multifamily Residential |  | Construction and Land |  |  | Single-Family Residential |  | HELOCs |  |  | Other Consumer |  | Total |  |  |
Allowance for loan losses, December 31, 2022 |  |  | $ | 371,700 |  |  | $ | 149,864 |  |  | $ | 23,373 |  |  | $ | 9,109 |  |  |  | $ | 35,564 |  |  | $ | 4,475 |  |  |  | $ | 1,560 |  |  | $ | 595,645 |  |  |  |
Impact of ASU 2022-02 adoption |  |  | 5,683 |  |  | 337 |  |  | 6 |  |  | — |  |  |  | 1 |  |  | 1 |  |  |  | — |  |  | 6,028 |  |  |  |
Allowance for loan losses, January 1, 2023 |  |  | $ | 377,383 |  |  | 150,201 |  |  | 23,379 |  |  | 9,109 |  |  |  | 35,565 |  |  | 4,476 |  |  |  | $ | 1,560 |  |  | $ | 601,673 |  |  |  |
Provision for (reversal of) credit losses on loans | (a) |  | 45,319 |  |  | 27,007 |  |  | 10,454 |  |  | 11,537 |  |  |  | 19,384 |  |  | (424) |  |  |  | 294 |  |  | 113,571 |  |  |  |
Gross charge-offs |  |  | (36,573) |  |  | (7,048) |  |  | (3) |  |  | (10,413) |  |  |  | — |  |  | (138) |  |  |  | (197) |  |  | (54,372) |  |  |  |
Gross recoveries |  |  | 6,803 |  |  | 432 |  |  | 545 |  |  | 236 |  |  |  | 69 |  |  | 33 |  |  |  | — |  |  | 8,118 |  |  |  |
Total net (charge-offs) recoveries |  |  | (29,770) |  |  | (6,616) |  |  | 542 |  |  | (10,177) |  |  |  | 69 |  |  | (105) |  |  |  | (197) |  |  | (46,254) |  |  |  |
Foreign currency translation adjustment |  |  | (247) |  |  | — |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  |  | — |  |  | (247) |  |  |  |
Allowance for loan losses, December 31, 2023 |  |  | $ | 392,685 |  |  | $ | 170,592 |  |  | $ | 34,375 |  |  | $ | 10,469 |  |  |  | $ | 55,018 |  |  | $ | 3,947 |  |  |  | $ | 1,657 |  |  | $ | 668,743 |  |  |  |

|  |  | Three Months Ended |  | Year Ended
($ in thousands) |  |  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023 |  | December 31, 2024 |  | December 31, 2023
Unfunded Credit Facilities |  |  |  |  |  |  |  |  |  |  |
Allowance for unfunded credit commitments, beginning of period (1) |  |  | $ | 39,062 |  |  | $ | 38,783 |  |  | $ | 33,589 |  |  | $ | 37,698 |  |  | $ | 26,264 |
Provision for credit losses on unfunded credit commitments | (b) |  | 457 |  |  | 283 |  |  | 4,110 |  |  | 1,824 |  |  | 11,429 |
Foreign currency translation adjustment |  |  | 7 |  |  | (4) |  |  | — |  |  | 4 |  |  | 6 |
Allowance for unfunded credit commitments, end of period (1) |  |  | $ | 39,526 |  |  | $ | 39,062 |  |  | $ | 37,699 |  |  | $ | 39,526 |  |  | $ | 37,699 |
Provision for credit losses | (a)+(b) |  | $ | 70,000 |  |  | $ | 42,000 |  |  | $ | 37,000 |  |  | $ | 174,000 |  |  | $ | 125,000 |

(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, CREDIT QUALITY RATIOS AND |
COMPOSITION OF ALLOWANCE BY PORTFOLIO |
($ in thousands) |
(unaudited) |
Table 11 |
Criticized Loans |  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023 |
Special mention loans |  | $ | 447,290 |  |  | $ | 468,593 |  |  | $ | 404,241 |  |
Classified loans |  | 725,863 |  |  | 641,642 |  |  | 573,969 |  |
Total criticized loans (1) |  | $ | 1,173,153 |  |  | $ | 1,110,235 |  |  | $ | 978,210 |  |

(1)Excludes loans HFS.

Nonperforming Assets |  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023 |
Nonaccrual loans: |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |
| C&I |  | $ | 86,165 |  |  | $ | 75,272 |  |  | $ | 37,036 |  |
| Total CRE |  | 18,318 |  |  | 19,175 |  |  | 27,918 |  |
Consumer: |  |  |  |  |  |  |
| Total residential mortgage |  | 54,469 |  |  | 52,311 |  |  | 37,788 |  |
| Other consumer |  | 66 |  |  | 102 |  |  | 132 |  |
| Total nonaccrual loans |  | 159,018 |  |  | 146,860 |  |  | 102,874 |  |
Other real estate owned, net |  | 35,077 |  |  | 41,248 |  |  | 11,141 |  |
Other nonperforming assets |  | — |  |  | 7,358 |  |  | — |  |
| Total nonperforming assets |  | $ | 194,095 |  |  | $ | 195,466 |  |  | $ | 114,015 |  |
Credit Quality Ratios |  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023 |
Annualized quarterly net charge-offs to average loans HFI |  | 0.48 | % |  | 0.22 | % |  | 0.15 | % |
Annual net charge-offs to average loans HFI |  | 0.26 | % |  | N/A |  | 0.09 | % |
Special mention loans to loans HFI |  | 0.83 | % |  | 0.88 | % |  | 0.77 | % |
Classified loans to loans HFI |  | 1.35 | % |  | 1.20 | % |  | 1.10 | % |
Criticized loans to loans HFI |  | 2.18 | % |  | 2.08 | % |  | 1.87 | % |
Nonperforming assets to total assets |  | 0.26 | % |  | 0.26 | % |  | 0.16 | % |
Nonaccrual loans to loans HFI |  | 0.30 | % |  | 0.28 | % |  | 0.20 | % |
Allowance for loan losses to loans HFI |  | 1.31 | % |  | 1.31 | % |  | 1.28 | % |

Composition of Allowance (“ALLL”) by Portfolio |  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023 |
Loan Category |  | ALLL |  | ALLL/ Loans HFI |  | ALLL |  | ALLL/ Loans HFI |  | ALLL |  | ALLL/ Loans HFI |
| C&I |  | $ | 384,319 |  |  | 2.21 | % |  | $ | 378,315 |  |  | 2.22 | % |  | $ | 392,685 |  |  | 2.37 | % |
| Total CRE |  | 268,291 |  |  | 1.32 |  |  | 265,234 |  |  | 1.30 |  |  | 215,436 |  |  | 1.05 |  |
| Multifamily |  | 32,117 |  |  | 0.65 |  |  | 31,782 |  |  | 0.62 |  |  | 34,375 |  |  | 0.68 |  |
| Office |  | 68,015 |  |  | 3.20 |  |  | 66,614 |  |  | 3.11 |  |  | 55,252 |  |  | 2.43 |  |
| All other CRE |  | 168,159 |  |  | 1.27 |  |  | 166,838 |  |  | 1.27 |  |  | 125,809 |  |  | 0.96 |  |
| Residential mortgage & consumer |  | 49,442 |  |  | 0.31 |  |  | 52,936 |  |  | 0.34 |  |  | 60,622 |  |  | 0.40 |  |
Total loans |  | $ | 702,052 |  |  | 1.31 | % |  | $ | 696,485 |  |  | 1.31 | % |  | $ | 668,743 |  |  | 1.28 | % |

18

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
($ in thousands)
(unaudited)
Table 12 |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Three Months Ended |  | Year Ended
|  |  |  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023 |  | December 31, 2024 |  | December 31, 2023
Net interest income before provision for credit losses |  | (a) |  | $ | 587,626 |  |  | $ | 572,722 |  |  | $ | 574,834 |  |  | $ | 2,278,716 |  |  | $ | 2,312,254 |
Fully taxable equivalent (“FTE”) adjustment |  | (b) |  | 1,276 |  |  | 411 |  |  | 440 |  |  | 4,767 |  |  | 1,728 |
FTE net interest income before provision for credit losses |  | (c)=(a)+(b) |  | 588,902 |  |  | 573,133 |  |  | 575,274 |  |  | 2,283,483 |  |  | 2,313,982 |
Total noninterest income |  | (d) |  | 88,166 |  |  | 84,395 |  |  | 79,903 |  |  | 335,218 |  |  | 295,264 |
Total revenue |  | (e)=(a)+(d) |  | 675,792 |  |  | 657,117 |  |  | 654,737 |  |  | 2,613,934 |  |  | 2,607,518 |
Total revenue (FTE) |  | (f)=(c)+(d) |  | $ | 677,068 |  |  | $ | 657,528 |  |  | $ | 655,177 |  |  | $ | 2,618,701 |  |  | $ | 2,609,246 |
Total noninterest expense |  | (g) |  | $ | 249,968 |  |  | $ | 225,800 |  |  | $ | 290,498 |  |  | $ | 958,073 |  |  | $ | 1,022,748 |
Efficiency ratio |  | (g)/(f) |  | 36.92 | % |  | 34.34 | % |  | 44.34 | % |  | 36.59 | % |  | 39.20 | %
Pre-tax, pre-provision income |  | (f)-(g) |  | $ | 427,100 |  |  | $ | 431,728 |  |  | $ | 364,679 |  |  | $ | 1,660,628 |  |  | $ | 1,586,498 |

The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. ▪During the second, third and fourth quarters of 2024, the Company recorded $3 million, $11 million, and $343 thousand, respectively, in pre-tax DC solar recoveries (included in Amortization of Tax Credit and CRA Investments on the Condensed Consolidated Statement of Income) related to the Company’s investment in DC Solar. The Company recorded $3 million, $2 million, and $4 million in pre-tax DC solar recoveries in the first, second, and fourth quarters of 2023, respectively. ▪During the first and second quarters of 2024, the Company recorded $10 million and $2 million, respectively, in pre-tax FDIC special assessment charges, and a $3 million FDIC special assessment reversal during the fourth quarter of 2024 (included in Deposit insurance premiums and regulatory assessments on the Condensed Consolidated Statement of Income). During the fourth quarter of 2023, the Company recorded $70 million in pre-tax FDIC special assessment charges. ▪During the first and fourth quarters of 2023, the Company recorded a $10 million pre-tax impairment write-off and a $3 million pre-tax gain on the sale of the same AFS debt security (included in Net gains on AFS debt securities on the Condensed Consolidated Statement of Income), respectively. ▪During the first quarter of 2023, the Company recorded $4 million in pre-tax repurchase agreements’ extinguishment cost (included in Other operating expense s on the Condensed Consolidated Statement of Income). Adjusted net income represents net income adjusted for the tax-effected above-mentioned adjustments. Adjusted diluted EPS represents diluted EPS adjusted for the above tax-effected adjustments. Management believes that the measures and ratios presented below provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods.
|  |  |  | Three Months Ended |  | Year Ended
|  |  |  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023 |  | December 31, 2024 |  | December 31, 2023
Net income |  |  |  | $ | 293,115 |  |  | $ | 299,166 |  |  | $ | 238,953 |  |  | $ | 1,165,586 |  |  | $ | 1,161,161 |
Less/Add: FDIC special assessment (reversal) charge |  |  |  | (3,385) |  |  | — |  |  | 69,986 |  |  | 8,800 |  |  | 69,986 |
Less/Add: Net gain/loss on AFS debt security |  |  |  | — |  |  | — |  |  | (3,138) |  |  | — |  |  | 6,862 |
Less: DC Solar recovery |  |  |  | (343) |  |  | (11,201) |  |  | (3,648) |  |  | (14,690) |  |  | (9,218) |
Add: Repurchase agreements’ extinguishment cost |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,872 |
Tax effect of adjustments (1) |  |  |  | 1,109 |  |  | 3,311 |  |  | (18,682) |  |  | 1,751 |  |  | (21,136) |
Adjusted net income |  |  |  | $ | 290,496 |  |  | $ | 291,276 |  |  | $ | 283,471 |  |  | $ | 1,161,447 |  |  | $ | 1,211,527 |
Diluted weighted-average number of shares outstanding |  |  |  | 139,883 |  |  | 139,648 |  |  | 141,409 |  |  | 139,958 |  |  | 141,902 |
Diluted EPS |  |  |  | $ | 2.10 |  |  | $ | 2.14 |  |  | $ | 1.69 |  |  | $ | 8.33 |  |  | $ | 8.18 |
Less/Add: FDIC special assessment (reversal) charge |  |  |  | (0.03) |  |  | — |  |  | 0.49 |  |  | 0.06 |  |  | 0.49 |
Less/Add: Net gain/loss on AFS debt security |  |  |  | — |  |  | — |  |  | (0.02) |  |  | — |  |  | 0.05 |
Less: DC Solar recovery |  |  |  | — |  |  | (0.08) |  |  | (0.03) |  |  | (0.10) |  |  | (0.06) |
Add: Repurchase agreements’ extinguishment cost |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 0.03 |
Tax effect of adjustments (1) |  |  |  | 0.01 |  |  | 0.03 |  |  | (0.13) |  |  | 0.01 |  |  | (0.15) |
Adjusted diluted EPS |  |  |  | $ | 2.08 |  |  | $ | 2.09 |  |  | $ | 2.00 |  |  | $ | 8.30 |  |  | $ | 8.54 |

(1)Applied statutory tax rate of 29.73% for the three and twelve months ended December 31, 2024. Applied statutory tax rate of 29.56% for the three months ended September 30, 2024, and for the three and twelve months ended December 31, 2023.
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 book value, tangible book value per share and TCE ratio are non-GAAP financial measures. Tangible book value and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and are used by banking regulators and analysts, the Company has included them below for discussion.
|  |  |  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023
Common Stock |  |  |  | 170 |  |  | 170 |  |  | 169 |
Additional paid-in capital |  |  |  | 2,030,712 |  |  | 2,018,105 |  |  | 1,980,818 |
Retained earnings |  |  |  | 7,311,542 |  |  | 7,095,587 |  |  | 6,465,230 |
Treasury stock |  |  |  | (1,034,110) |  |  | (1,012,019) |  |  | (874,787) |
Accumulated other comprehensive income: |  |  |  |  |  |  |  |
AFS debt securities net unrealized losses |  |  |  | (542,152) |  |  | (456,493) |  |  | (601,881) |
Cash flow hedges net unrealized (losses) gains |  |  |  | (20,787) |  |  | 39,143 |  |  | 2,624 |
Foreign currency translation adjustments |  |  |  | (22,321) |  |  | (19,954) |  |  | (21,339) |
Total accumulated other comprehensive loss |  |  |  | (585,260) |  |  | (437,304) |  |  | (620,596) |
Stockholders’ equity |  | (a) |  | $ | 7,723,054 |  |  | $ | 7,664,539 |  |  | $ | 6,950,834 |
Less: Goodwill |  |  |  | (465,697) |  |  | (465,697) |  |  | (465,697) |
Other intangible assets (1) |  |  |  | (5,234) |  |  | (5,563) |  |  | (6,602) |
Tangible book value |  | (b) |  | $ | 7,252,123 |  |  | $ | 7,193,279 |  |  | $ | 6,478,535 |
Number of common shares at period-end |  | (c) |  | 138,437 |  |  | 138,609 |  |  | 140,027 |
Book value per share |  | (a)/(c) |  | $ | 55.79 |  |  | $ | 55.30 |  |  | $ | 49.64 |
Tangible book value per share |  | (b)/(c) |  | $ | 52.39 |  |  | $ | 51.90 |  |  | $ | 46.27 |
Total assets |  | (d) |  | $ | 75,976,475 |  |  | $ | 74,483,720 |  |  | $ | 69,612,884 |
Less: Goodwill |  |  |  | (465,697) |  |  | (465,697) |  |  | (465,697) |
Other intangible assets (1) |  |  |  | (5,234) |  |  | (5,563) |  |  | (6,602) |
Tangible assets |  | (e) |  | $ | 75,505,544 |  |  | $ | 74,012,460 |  |  | $ | 69,140,585 |
Total stockholders’ equity to assets ratio |  | (a)/(d) |  | 10.17 | % |  | 10.29 | % |  | 9.98 | %
TCE ratio |  | (b)/(e) |  | 9.60 | % |  | 9.72 | % |  | 9.37 | %

Return on average TCE represents tangible net income divided by average tangible book value. Tangible net income excludes the after-tax impacts of the amortization of core deposit intangibles and mortgage servicing assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and are used by banking regulators and analysts, the Company has included them below for discussion.
|  |  |  | Three Months Ended |  | Year Ended
|  |  |  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023 |  | December 31, 2024 |  | December 31, 2023
Net income |  | (f) |  | $ | 293,115 |  |  | $ | 299,166 |  |  | $ | 238,953 |  |  | $ | 1,165,586 |  |  | $ | 1,161,161 |
Add: Amortization of core deposit intangibles |  |  |  | — |  |  | — |  |  | 441 |  |  | — |  |  | 1,763 |
Amortization of mortgage servicing assets |  |  |  | 334 |  |  | 348 |  |  | 302 |  |  | 1,322 |  |  | 1,328 |
Tax effect of amortization adjustments (2) |  |  |  | (99) |  |  | (103) |  |  | (220) |  |  | (393) |  |  | (914) |
Tangible net income |  | (g) |  | $ | 293,350 |  |  | $ | 299,411 |  |  | $ | 239,476 |  |  | $ | 1,166,515 |  |  | $ | 1,163,338 |
Average stockholders’ equity |  | (h) |  | $ | 7,731,324 |  |  | $ | 7,443,333 |  |  | $ | 6,695,852 |  |  | $ | 7,315,174 |  |  | $ | 6,482,985 |
Less: Average goodwill |  |  |  | (465,697) |  |  | (465,697) |  |  | (465,697) |  |  | (465,697) |  |  | (465,697) |
Average other intangible assets (1) |  |  |  | (5,445) |  |  | (5,790) |  |  | (5,434) |  |  | (5,953) |  |  | (6,542) |
Average tangible book value |  | (i) |  | $ | 7,260,182 |  |  | $ | 6,971,846 |  |  | $ | 6,224,721 |  |  | $ | 6,843,524 |  |  | $ | 6,010,746 |
Return on average common equity |  | (f)/(h) |  | 15.08 | % | (3) | 15.99 | % | (3) | 14.16 | % | (3) | 15.93 | % |  | 17.91 | %
Return on average TCE |  | (g)/(i) |  | 16.07 | % | (3) | 17.08 | % | (3) | 15.26 | % | (3) | 17.05 | % |  | 19.35 | %

(1)Includes core deposit intangibles and mortgage servicing assets. There were no core deposit intangibles in the 2024 periods presented.
(2)Applied statutory tax rate of 29.73% for the three and twelve months ended December 31, 2024. Applied statutory tax rate of 29.56% for the three months ended September 30, 2024, and for the three and twelve months ended December 31, 2023.
(3)Annualized.
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