East West Bancorp, Inc. · NASDAQ:EWBC
East West Bancorp — Q2 2025 Earnings Presentation
29 slides from East West Bancorp's earnings presentation, Jul 22, 2025
Slide 1: East West Bancorp, Inc. 2Q Earnings Presentation
East West Bancorp, Inc. 2Q Earnings Presentation 2Q July 22, 2025 25
Slide 2: Forward-Looking Statements and Additional Information
Forward-Looking Statements and Additional Information In this presentation, “we”, “our”, “us”, “East West” and the “Company” refer to East West Bancorp, Inc., and its consolidated subsidiaries unless the context indicates otherwise. Forward-Looking Statements This presentation contains forward-looki
Slide 3: Financial Highlights
Financial Highlights 2Q25 $310 million net income available to common equity, $2.24 diluted quarterly earnings per share ▪ Total average loans up 2% Q-o-Q ▪ Record quarterly revenue of $703mm − Strong growth in C&I and residential mortgage ▪ Record quarterly NII of $617mm Balanced Loan ▪ Total avera
Slide 4: Deposits
Deposits Sustained growth, with meaningful traction across products Average Deposits End of Period Deposit Growth by Category (1Q25 to 2Q25) ($ in billions) ($ in millions) Y-o-Y Q-o-Q +9% +3% $62.6 $63.7 $61.9 $60.6 $58.7 Time $647 +3% 23.2 23.9 +14% 22.3 22.9 21.0 Money Market $535 +4% 14.2 14.3 1
Slide 5: Loans
Loans Prudent growth in our focus categories is bolstering diversification and supporting interest income Average Loans End of Period Loan Growth by Category (1Q25 to 2Q25) ($ in billions) ($ in millions) Y-o-Y Q-o-Q $53.3 $54.3 +5% +1% $52.4 $53.2 $51.9 17.0 16.8 17.4 +7% C&I $362 +2% 16.2 16.5 Res
Slide 6: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin Grew NII 3% Q-o-Q with continued disciplined reduction in deposit cost Net Interest Income (NII) & Net Interest Margin (NIM) Highlights ($ in millions) Hedge Impact NII NIM ▪ $6mm negative impact to NII from cash $617 flow hedges (3bps to NIM) in 2Q25 $600 ▪
Slide 7: Fee Income
Fee Income Sustained execution supporting continued strength Fee Income1 Highlights ($ in millions) vs. Prior Quarter Y-o-Y +5% ▪ Fee income1 of $81mm, total noninterest $88 income of $86mm $81 $81 $81 $77 − Other income up $3mm, reflecting 27 greater benefit from bank-owned life 26 Commercial and C
Slide 8: Operating Expense & Efficiency
Operating Expense & Efficiency Maintaining best-in-class efficiency Total Operating Noninterest Expense1 Highlights ($ in millions) vs. Prior Quarter Y-o-Y +5% ▪ Total operating noninterest expense of $236 $231 $230 $230mm $219 $220 − Excludes $26mm of tax credit and CRA investment amortization expe
Slide 9: Asset Quality Metrics
Asset Quality Metrics Resilient trends: criticized and nonperforming loans both declining Provision for Credit Losses & Net Charge-offs Nonperforming Assets ($ in millions) ($ in millions) $196 $195 $194 $80 5 5 5 $182 $70 $172 $70 $64 Multifamily 30 35 5 49 29 $60 14 33 $49 42 5 9 Provision for $45
Slide 10: Allowance for Loan Losses
Allowance for Loan Losses Bolstered reserves by $25 million quarter-over-quarter, reflecting changes in our economic outlook Allowance for Loan Losses (ALLL) Highlights ($ in millions) $770 $760 ▪ Bolstered ALLL in light of changes to 1.44% $750 $735 the economic outlook $730 1.38% 1.39% $710 $696 $
Slide 11: Capital
Capital Operating from a position of strength Tangible Common Equity Ratio1 Regulatory Capital Ratios2 Highlights 10.4% 10.4% 10.4% 10.5% 10.6% 10.0% ▪ Declared 3Q25 dividend of $0.60 9.9% 9.7% 5.0% ‒ Payable on August 15, 2025 to 9.6% 9.4% shareholders of record on August 4, Leverage Ratio 2025 13.
Slide 12: Updated Management Outlook: Full Year 2025
Updated Management Outlook: Full Year 2025 Earnings Drivers FY 2025 Expectations vs. FY 2024 Results FY 2025 Expectation Interest Rate Outlook ▪ Assumes June 30th forward curve End of Period Loans ▪ Growing in the range of 4% to 6% Y-o-Y Top Quartile Returns Net Interest Income ▪ Trending above 7% T
Slide 13: Appendix
Appendix ( EAST WEST BANK
Slide 14: East West at a Glance
East West at a Glance 06.30.25 06.30.25 06.30.25 2Q25 $14B Market Cap $78B Assets $65B Deposits 17% Adj. ROTCE1 A Leading Regional Bank with Cross-Border Capabilities... …Producing Consistent Top-Tier Shareholder Returns… ROTCE1 ▪ Headquartered in Pasadena, California 21.3% 19.4% 16.7%17.2% 17.1% 17
Slide 15: Diversified Loan Portfolio
Diversified Loan Portfolio 70% of loans support commercial customers, with broad diversification across industry and asset types Commercial Loans by Type (as % of Total Loans, 06.30.25) Total Loan C&I Portfolio CRE $17.8bn $55.0bn $20.7bn General 6% 9% C&I Multifamily $17.8 32% Media & Entertainment
Slide 16: Commercial Real Estate Portfolio Detail
Commercial Real Estate Portfolio Detail Our CRE portfolio is granular - many loans have full recourse and personal guarantees Distribution by Loan-to-Value (LTV)1 Size and LTV by Property Type (as of 06.30.25) (as of 06.30.25) >70% 3% Total Portfolio Weighted Average >65% to 70% 5% Size Avg. LTV1 Lo
Slide 17: CRE Office – Additional Information
CRE Office – Additional Information Our office portfolio has low LTVs across segments and low average loan sizes CRE Office: Geographic Mix by Metro Area CRE Office by Size Segment (as of 06.30.25) (as of 06.30.25) Other Regions Avg. Weighted Balance No. of Loan Size Loan Size Avg. LTV ($ in mm) Loa
Slide 18: CRE Retail – Additional Information
CRE Retail – Additional Information Our retail portfolio has a weighted average LTV profile of 47% CRE Retail: Geographic Mix by Metro Area CRE Retail by Size Segment (as of 06.30.25) (as of 06.30.25) Other Regions Avg. Weighted Balance No. of Loan Size Loan Size Avg. LTV 12% ($ in mm) Loans ($ in m
Slide 19: CRE Multifamily – Additional Information
CRE Multifamily – Additional Information Our multifamily portfolio is amongst our most granular CRE Multifamily: Geographic Mix by Metro Area CRE Multifamily by Size Segment (as of 06.30.25) (as of 06.30.25) Other Regions Avg. Weighted Balance No. of Nevada Loan Size Loan Size Avg. LTV 6% ($ in mm)
Slide 20: Residential Mortgage Portfolio
Residential Mortgage Portfolio Our residential mortgage portfolio benefits from both low LTVs and smaller average loan size Resi. Mortgage Distribution by LTV1 Portfolio Highlights as of 06.30.25 (as of 06.30.25) Outstandings >60% 11% ▪ $16.4bn loans outstanding 50% $438,000 ▪ +1% Q-o-Q and +6% Y-o-
Slide 21: Cash and Securities
Cash and Securities Enhanced liquidity while supporting earnings with high-quality liquid assets Average Total Securities Portfolio and Cash Highlights ($ in billions) Total Securities & Resale Agreements Cash & Equivalent Total Securities Average Yield ▪ Securities portfolio well-positioned as a $1
Slide 22: Loan Yields
Loan Yields Loan Portfolio by Index Rate Average C&I Loan Rate (as of 06.30.25) 8.01% 7.93% 7.42% 7.06% 7.02% Fixed rate 20% 28% Total fixed Hybrid in fixed rate period rate and hybrid in fixed Variable - SOFR 22% period: 42% Variable - Prime, all other 30% rates 91% variable rate Average Residentia
Slide 23: Deposit and Funding Cost
Deposit and Funding Cost Average Deposit and Liability Cost 3.94% 4.07% 3.93% 4.05% 3.63% 3.71% 3.34% 3.43% 3.31% 3.39% 2.96% 2.98% 2.75% 2.54% 2.52% 2Q24 3Q24 4Q24 1Q25 2Q25 Average cost of deposits Average cost of interest-bearing deposits Average cost of interest-bearing liabilities Average Depos
Slide 24: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) On June 30, 2025, the California single sales factor apportionment method (“CA SSF”) was approved for financial institutions in the 2025 tax year, which res
Slide 25: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Adjusted net income represents net income adjusted for the tax-effected FDIC special assessment and DC Solar adjustments and the impact of the CA SSF. Manag
Slide 26: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Non-GAAP measures used consist
Slide 27: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Adjusted net income represents net income adjusted for the tax-effected FDIC special assessment and DC Solar adjustments and the impact of the CA SSF. (Refe
Slide 28: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible book value, tangible
Slide 29: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Return on average TCE represents tangible net income divided by average tangible book value. Tangible net income excludes the after-tax impacts of the amort