East West Bancorp: 4Q25 Basel III Regulatory Capital Disclosures Report

Page

Disclosure Map 3

Scope of Application 5

Capital Structure 6

Capital Adequacy 7

Capital Conservation Buffer 8

Risk Management 9

Credit Risk: General Disclosures 9

General Disclosure for Counterparty Credit Risk-Related Exposures 15

Credit Risk Mitigation 16

Securitization 17

Equities Not Subject to the Market Risk Rule 18

Interest Rate Risk for Non-trading Activities 18

Appendix 1 - Forward-looking statements 21

‌DISCLOSURE MAP

The table below identifies where the disclosures related to topics referenced in this Pillar 3 disclosure report can be found in East West Bancorp, Inc.'s (referred to herein on an unconsolidated basis as "East West" and on a consolidated basis as the "Company," "we," "our," or "EWBC") Annual Report on Form 10-K for the year ended December 31, 2025 (the "Company's 2025 Form 10-K").

Note 16

Scope of Application 5Background and overview; Regulatory capital Item 1 - Business,

6, no difference in the basis for consolidating entities

Basis of presentation Note 1

6

Capital Structure Capital instruments - Summary information of all regulatory capital instruments.

Note 16

7 Regulatory capital Note 16

7

Capital Adequacy Capital management - Discussion of the Bank's capital adequacy assessment.

Regulatory Capital and Ratios

Credit Risk: General Disclosures

9-10 General credit risk disclosures Credit Risk Management,

Note 4 & 6

11-12

Exposure types/Impaired loans/Allowance for credit losses

12-14

Industry and geographic distribution; maturity information

Loan Portfolio, Nonperforming Asset, Note 6

Loan Portfolio, Note 6 &12

Interest Rate Risk for Non-trading Activities

Nonmarketable equity securities, realized and unrealized gains (losses)

18

18 - 19 Overview

Note 2, 4 & 7

Interest Rate Risk Management

20 Earnings Sensitivity Interest Rate Risk Management

The tables below provide page references to our 2025 Form 10-K for certain topics and financial information listed in the table on the previous page.

Loan Portfolio 49-54

Risk Management 58-59

Nonperforming Assets 60

Derivatives 70-71

Note 1 - Summary of Significant Accounting Policies 86, 88-89

Note 3 - Securities Purchased under Resale Agreements 107

Note 5 - Derivatives 115, 119-120

Note 7 - Affordable Housing Partnership, Tax Credit and Community Reinvestment Act Investments, Net 138-139

Note 16 - Regulatory Requirements and Matters 149-150

‌SCOPE OF APPLICATION

‌East West is a registered bank holding company that offers a full range of banking services to individuals and businesses through its subsidiary bank, East West Bank and its subsidiaries ("East West Bank" or the "Bank"). The Bank is the Company's principal asset and provides a full range of consumer and commercial products and services through the Consumer and Business Banking, and Commercial Banking segments, with the remaining functions included in the Treasury and Other segment. The Company operates in the United States ("U.S.") and Asia. In the U.S., the Bank's corporate headquarters and main administrative offices are located in California, and its branches are located in California, Texas, New York, Washington, Georgia, Massachusetts and Nevada. In Asia, the Company's presence includes branches in Hong Kong and China, and representative offices in China and Singapore. The Bank has a banking subsidiary based in China - East West Bank (China) Limited. As of December 31, 2025, the Company and the Bank were classified as "well capitalized" and not subject to any capital distribution restrictions. For additional information on dividend restrictions and transfers of funds, refer to Item 1. Business - Supervision and Regulation - Dividends and Other Transfers of Funds in the Company's 2025 Form 10-K.

As a bank holding company, East West is subject to primary regulation, supervision, and examination by the Federal Reserve under the Bank Holding Company Act of 1956, as amended. The Company is also subject to the disclosure and regulatory requirements of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the rules and regulations adopted by the U.S. Securities and Exchange Commission ("SEC") thereunder. The Bank is regulated, supervised, and examined by the Federal Reserve, the California Department of Financial Protection and Innovation, and, with respect to consumer laws, the Consumer Financial Protection Bureau. East West Bank is a California state-chartered bank, and its deposits are insured by the Federal Deposit Insurance Corporation ("FDIC"). As the insurer of the Bank's deposits, the FDIC also has back-up examination and other regulatory authority over the Bank.

In addition, the Bank and its foreign subsidiaries and branches are regulated by the foreign regulatory agencies in the international jurisdictions where we have a presence, including the People's Bank of China, China's National Financial Regulatory Administration, the Hong Kong Monetary Authority, the Hong Kong Securities and Futures Commission, and the Monetary Authority of Singapore.

East West also has a wholly-owned nonbank subsidiary, East West Markets, LLC ("East West Markets"), which is an SEC-registered broker-dealer and a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"). East West Markets is subject to regulatory requirements from several regulatory bodies, including the SEC, FINRA, and state securities regulators.

The federal banking agencies have imposed capital adequacy requirements, known as the Basel III Capital Rules, intended to ensure that banking organizations maintain capital that is commensurate with the degree of risk associated with their operations. The Basel III Capital Rules define the components of regulatory capital, including Common Equity Tier 1 ("CET1"), Tier 1 and Tier 2 capital, and set forth minimum capital adequacy ratios of capital to risk-weighted assets and total assets. The Basel III Capital Rules also prescribe a standardized approach for risk-weighting assets and include a number of risk-weighting categories that affect the denominator in banking institutions' regulatory capital ratios.

The Company applies the Basel III Capital Rules as a standardized approach banking organization and is not currently subject to the market risk rules, which apply only to banking organizations with significant trading activities. To be considered adequately capitalized, standardized approach banking organizations are required to maintain minimum capital ratios of at least 4.5% CET1 capital to risk-weighted assets, 6.0% Tier 1 capital to risk-weighted assets, 8.0% total risk-based capital (i.e., Tier 1 plus Tier 2 capital) to risk-weighted assets and a 4.0% Tier 1 leverage ratio of Tier 1 capital to average total consolidated assets.

The Company produces the Pillar 3 Regulatory Disclosures quarterly to update market participants regarding the Company's risk management practices and regulatory capital ratios as required under the U.S. Basel III rules. This report provides information on the Company's capital structure, risk exposures, risk assessment processes, risk-weighted assets and overall capital adequacy, including information on the methodologies used to calculate risk-weighted assets.

The Company's 2025 Form 10-K contains management's discussion and analysis of the overall risk profile of the Company and related management strategies. The information presented herein should be read in conjunction with the Company's 2025 Form 10-K, as well as the Consolidated Financial Statements for Holding Companies - FR Y-9C ("FR Y-9C") and Consolidated Reports of Condition and Income for a Bank with Domestic and Foreign Offices - FFIEC 031 ("Call Report") dated December 31, 2025. The disclosure map included in this report provides a cross-reference to the Company's 2025 Form 10-K for the disclosures required by the Basel III Capital Rules. These Basel III regulatory capital disclosures have not been audited by our external auditors. This report may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that does not describe historical or current facts is a forward-looking statement, as discussed further in Appendix 1 of this report.

‌The principles of consolidation used for the Company's 2025 Form 10-K and for regulatory reporting conform with U.S. Generally Accepted Accounting Principles ("GAAP") and include the accounts of East West and its subsidiaries. The Basel III Regulatory Capital Disclosures and East West's regulatory capital ratio calculations are prepared on a fully consolidated basis. All intercompany balances and transactions have been eliminated in consolidation.

‌CAPITAL STRUCTURE

‌The Company's qualifying regulatory capital instruments primarily consist of common shareholders' equity. For additional information on the Company's shareholders' equity, see the Company's "Consolidated Balance Sheets" in the Company's 2025 Form 10-K.

Regulators include other non-common forms of capital (e.g., subordinated debt and preferred stock) in their calculations of capital adequacy. The junior subordinated debt issued in connection with East West's trust preferred securities qualifies as Tier 2 capital under the Basel III Capital Rules. For additional information regarding the terms of East West's outstanding junior subordinated debt, see Note 10 - Federal Home Loan Bank Advances and Long-Term Debt in the Company's 2025 Form 10-K.

‌The following table presents the Company's capital composition as of December 31, 2025:

‌CAPITAL ADEQUACY

‌The Company's Board of Directors provides the ultimate oversight responsibility and accountability over capital planning. The Board and a Board-level committee, the Risk Oversight Committee ("ROC"), meet at least quarterly to review the Company's material risks and exposures and to ensure the adequacy of capital under both normal and stressed operating environments.

The Company's senior management and the Board are committed to achieving its capital targets in order to reach its capital goals, which include meeting or exceeding regulatory requirements. To achieve these capital goals, the Company has established policies and procedures to continuously monitor its capital levels and to maintain contingency plans. Monitoring activities include the evaluation of the Company's on-going capital needs, stress testing, and the assessment of the impact of stressed conditions under multiple scenarios; these activities also include the maintenance of capital buffers in consideration of other factors, such as the current credit and interest rate environment. The combination of these policies and procedures, and monitoring activities enables the Company to maintain adequate capital composition and levels to absorb losses, promote public confidence, provide protection to depositors, and meet regulatory requirements. The Company continued to exceed the "Well Capitalized" thresholds under Prompt Corrective Action regulations.

‌The following table presents the Company's standardized approach risk-weighted assets as of December 31, 2025. For more information on the Company's risk-weighted assets, see Schedule HC-R, Regulatory Capital, in the Company's FR Y-9C dated December 31, 2025:

‌CAPITAL CONSERVATION BUFFER

‌The Basel III Capital Rules require the Company to maintain a minimum 2.5% "capital conservation buffer" on top of each of the minimum risk-based capital ratios for the purpose of absorbing losses during periods of economic stress. This effectively results in minimum ratios of (1) CET1 to risk-weighted assets of at least 7.0%, (2) Tier 1 capital to risk-weighted assets of at least 8.5%, and (3) Total capital to risk-weighted assets of at least 10.5%. Banking organizations with risk-based capital ratios that meet or exceed the minimum requirements but do not exceed the capital conservation buffer will face constraints on dividends, equity repurchases, and discretionary bonus payments. The severity of the constraint depends on the amount of the shortfall and the institution's "eligible retained income," which is defined as the greater of (1) the reporting institution's net income for the four preceding calendar quarters, net of any distributions and associated tax effects not already reflected in net income or (2) the average of the reporting institution's net income over the four preceding calendar quarters. As of December 31, 2025, the Company's eligible retained income was $992 million. The Company and Bank have capital ratios exceeding the 2.5% minimum capital conservation buffer and are not subject to any such limitations as of December 31, 2025. For additional discussion and disclosure, see the Company's December 31, 2025 FR Y-9C Schedule HC-R, the Bank's December 31, 2025 Call Report Schedule RC-R, and Item 7. MD&A - Balance Sheet Analysis - Regulatory Capital and Ratios in the Company's 2025 Form 10-K.

‌The following table summarizes capital conservation buffer-related information for both the Company and the Bank as of December 31, 2025:

‌RISK MANAGEMENT

In the normal course of business, the Company is exposed to a variety of risks, some of which are inherent to the financial services industry and others, which are more specific to the Company's business. The Company operates under a Board-approved enterprise risk management ("ERM") program. The Company's ERM program outlines the company-wide approach to risk management and oversight, and describes the structures and practices employed to manage current and emerging risks inherent to the Company. The Company's ERM program incorporates risk management throughout the organization in identifying, managing, monitoring, and reporting risks. It identifies the Company's major risk categories as: credit, liquidity, market, operational, reputational, legal, compliance, Bank Secrecy Act/Anti-Money Laundering & Office of Foreign Assets Control, strategic, and technology risk.

The ROC of the Board of Directors monitors the ERM program through such identified enterprise risk categories and provides oversight of the Company's risk appetite and control environment. The ROC provides focused oversight of the Company's identified enterprise risk categories on behalf of the full Board of Directors. Under the authority of the ROC, management committees apply targeted strategies to manage the risks to which the Company's operations are exposed.

The Company's ERM program is executed along the three lines of defense model, which provides for a consistent and standardized risk management control environment across the enterprise. The first line of defense is comprised of revenue generating, operational and support units. The second line of defense is comprised of risk management and control functions that provide independent risk oversight of first line activities and report to the Chief Risk Officer. The Chief Risk Officer reports to both the ROC and the Chief Executive Officer. The third line of defense is comprised of the Internal Audit and Independent Asset Review ("IAR") functions. Internal Audit reports to the Chief Audit Executive ("CAE") who reports to the Board's Audit Committee. Internal Audit provides assurance and evaluates the effectiveness of risk management, control and governance processes as established by the Company. IAR serves as an internal loan review and independent credit risk monitoring function within the Bank that works under the direction of the CAE and reports to the Audit Committee. IAR provides management and the Audit Committee with an objective and independent assessment of the Bank's credit profile and credit risk management processes.

‌CREDIT RISK: GENERAL DISCLOSURES

Credit risk is the risk that a borrower or a counterparty will fail to perform according to the terms and conditions of a loan, investment or derivative and expose the Company to loss. Credit risk exists with many of the Company's assets and exposures such as loans, debt securities and certain derivatives. The majority of the Company's credit risk is associated with lending activities.

The ROC has primary oversight responsibility for the identified enterprise risk categories including credit risk. The ROC monitors management's assessment of asset quality, credit risk trends, credit quality administration, underwriting standards, and portfolio credit risk management strategies and processes, such as diversification and liquidity, all of which enable management to control credit risk. At the management level, the Credit Risk Management Committee ("CRMC") has primary oversight responsibility for credit risk. The Senior Credit Supervision function manages credit policy for the line of business transactional credit risk, assuring that all exposure is risk-rated according to the requirements of the credit risk rating policy. The Senior Credit Supervision function, in connection with the ERM function, also evaluates and reports the overall credit risk exposure to senior management and the ROC, including concentration limits and key risk indicators. Reporting directly to the Board's Audit Committee, the IAR function provides additional validation support to the Company's robust credit risk management culture by performing an independent and objective assessment of underwriting and documentation quality, and serves as an assurance function for the risk rating of the Company's loan portfolios. A key focus of our credit risk management is adherence to a well-controlled underwriting and loan monitoring process.

‌For information on the Company's credit risk policies for nonaccrual loans and the allowance for loan losses, refer to "Loans Held-for-Investment" and "Allowance for Loan Losses" in Note 1 - Summary of Significant Accounting Policies and Note 6 - Loans Receivable and Allowance for Credit Losses in the Company's 2025 Form 10-K.

The Company's debt securities portfolio includes U.S. Treasury, U.S. government agency, U.S. government-sponsored agency, and U.S. government-sponsored enterprise debt and mortgage-backed securities that are issued, guaranteed, or otherwise supported by the U.S. government, for which a zero credit loss assumption is applied when determining any allowance for credit losses. For additional information on the Company's allowance for credit losses on debt securities, refer to "Allowance for Credit Losses on Available-for-Sale Debt Securities" and "Allowance for Credit Losses on Held-to-Maturity Debt Securities" in Note 4 - Securities in the Company's 2025 Form 10-K. For additional information on debt securities, refer to Note 4 - Securities and Item 7. MD&A - Balance Sheet Analysis - Debt Securities in the Company's 2025 Form 10-K.

For the Company's credit risk policies on derivatives, refer to the "General Disclosure for Counterparty Credit Risk-Related Exposures" section of this report. For additional information on the derivatives portfolio, refer to Note 5 - Derivatives and Item 7. MD&A - Market Risk Management - Derivatives in the Company's 2025 Form 10-K.