East West Bancorp: Second Quarter 2025 Investor Update

East West Bancorp, Inc.

2Q25 Investor Update

June 2025

Updated Management Outlook: Full Year 2025

Earnings Drivers FY 2025 Expectations vs. FY 2024 Results FY 2025 Expectation

Interest Rate Outlook  Assumes May 31st forward curve

End of Period Loans  Growing in the range of 4% to 6% Y-o-Y

Net Interest Income Total Revenue

• Trending above 6%

• Trending above 6%

  Best-in-Class Efficiency

Total Operating Noninterest Expense(1)  Growing in the range of 7% to 9% Y-o-Y

Net Charge-offs  In the range of 25bps to 35bps

Tax Items

• Effective tax rate of ~23%

• Amortization of tax credit and CRA investment expense in the range of $70 to $80 million

  Appendix
  
  
  Financial Highlights

  1Q25 $290 million net income available to common equity, $2.08 diluted quarterly earnings per share

Growing Loans, Optimizing Deposits

• Record total quarterly revenue

  Increasing Revenue

  
  
  

• NII up 2% Q-o-Q

• NIM expanded 11bps Q-o-Q

• Record quarterly fee income of $88mm

  • Strong customer activity across the

board

Improving

Asset Quality

• Nonaccrual loans down 2bps Q-o-Q to 28bps

• Net charge-offs of $15mm (12bps)

• Nonperforming assets down 2bps Q-o-Q to 24bps

• Bolstered ALLL to 1.35%, reflecting changes in the economic forecast

• 15.0% ROACE (~16% ROTCE1)

  Operating from a Position of Strength

  
  
  

• 1.56% Return on Average Assets (ROAA)

• 9.9% Tangible Common Equity (TCE)1 ratio

• 14.3% Common Equity Tier 1 (CET1) ratio

• Ample on and off balance-sheet liquidity

Loans

Steady, balanced growth is supporting diversification and margin expansion

Average Loans End of Period Total Loan Growth by Category (4Q24 to 1Q25)

($ in billions)

($ in millions)

Residential mortgage

& other consumer

CRE (ex. Multifamily)

$207

$200

15.2

15.4

15.7

15.9

16.1

5.0

5.0

5.1

5.0

5.0

15.4

15.3

15.1

15.3

15.4

+6%

-1%

C&I $64

-

1Q24 2Q24 3Q24 4Q24 1Q25

Multifamily

$55

C&I

Residential mortgage & other consumer

Multifamily

CRE (ex. Multifamily)

Deposits

Optimized mix to further lower cost; with growing average balances across most categories

Average Deposits End of Period Total Deposit Growth by Category (4Q24 to 1Q25)

($ in billions) ($ in millions)

$69

$(281)

360)

$60.6

$61.9

$62.6

$57.4

$58.7

23.2

19.3

21.0

22.3

22.9

13.6

13.7

14.2

14.3

14.8

9.5

9.3

9.5

9.7

9.5

15.0

14.7

14.6

15.0

15.1

Time $449

Money Market

+9%

-

Noninterest-bearing Demand

+1%

IB Checking & Savings $(

1Q24 2Q24 3Q24 4Q24 1Q25

Time MMDA IB Checking & Savings Noninterest-bearing Demand (DDA)

Net Interest Income & Net Interest Margin

Grew NII 2% and NIM 11bps Q-o-Q, with continued disciplined reduction in deposit cost

Net Interest Income (NII) & Net Interest Margin (NIM) End of Period Interest-bearing Deposit Cost (2Q24 to 1Q25)

($ in millions)

NII NIM

3.73%

3.43%

3.30%

$600

$588

$573

$565

$553

3.27%

3.34%

3.24%

3.24%

3.35%

1Q24 2Q24 3Q24 4Q24 1Q25

End of Period Interest-bearing Deposit Cost

6.30.24 9.30.24 12.31.24 03.31.25

Fee Income

Higher customer activity supported a record quarter

Fee Income1

($ in millions)

$88

Commercial and Consumer Deposit-Related Fees

Lending Fees

Foreign Exchange Income

Highlights

vs. Prior Quarter

• Fee income1 of $88mm, up nearly $7mm, or +8% from $81mm

  • Wealth management, customer derivatives, and lending fee growth all reflect higher customer activity

    $81

    $81

    $77

    $71

    27

    27

    26

    26

    25

    26

    24

    26

    25

    23

    16

    13

    13

    16

    11

    9

    3

    10

    14

    11

    10

    4

    4

    4

    5

    
    
    

    +46%

Wealth Management Fees Customer Derivative Income

1Q24 2Q24 3Q24 4Q24 1Q25

$234

$231 $236

Compensation and Employee Benefits

Highlights

vs. Prior Quarter

• Total operating noninterest expense of

  $236mm

  • Excludes $16mm of tax credit and CRA investment amortization expense

Efficiency Ratio3 and Operating Noninterest Expense/Average Assets Ratio

34.3%

36.9%

36.4%

1.20%

1.22%

1.27%

3Q24

4Q24

1Q25

Efficiency Ratio

Noninterest Expense / Avg. Assets

Computer and Software Related Expenses, All Other

Deposit-Related Expenses2 Occupancy and Equipment

1Q24 2Q24 3Q24 4Q24 1Q25

1. Total noninterest expense excluding amortization of tax credit and CRA investments

   
   
   

2. Deposit-related expenses include deposit account expenses and deposit insurance premiums and regulatory assessments, including FDIC special deposit 10

   insurance assessment charges and reversals of $10 million, $2 million, $(3) million, and $833 thousand for 1Q24, 2Q24, 4Q24, and 1Q25 respectively

3. See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company's earnings press releases

Asset Quality Metrics

Operating from a position of strength with solid trends and declining net charge-offs and nonperforming assets

Provision for Credit Losses & Net Charge-offs Nonperforming Assets

($ in millions)

Provision for credit losses

Net charge-offs

$70

$64

$49

$37

$42

$25 $23

$23

$29

$15

1Q24 2Q24 3Q24 4Q24 1Q25

($ in millions)

Multifamily

OREO and Other

CRE (ex. MFR)

Resi. mortgage & consumer

C&I

$196

$195

$165

5

5

$194

5

$182

5

5

5

03.31.24 06.30.24 09.30.24 12.31.24 03.31.25

NCO ratio (ann.) 0.17% 0.18% 0.22% 0.48% 0.12%

NPA / Total assets 0.23% 0.27% 0.26% 0.26% 0.24%

Criticized Loans / Loans HFI Criticized Ratio by Loans HFI Portfolio

Classified loans / Loans HFI Special mention loans / Loans HFI

03.31.25

2.30%

2.05%

2.08%

2.18%

2.29%

0.91%

1.38%

C&I CRE (ex. Multifamily) Multifamily Resi mortgage & consumer

3.76%

2.92% 3.07% 2.67% 2.99% 3.08%

1.45% 1.69% 1.81%

0.51% 0.52% 0.65%

Allowance for Loan Losses

Bolstered reserves by $33 million quarter-over-quarter

Allowance for Loan Losses (ALLL)

($ in millions)

$696

$702

$684

$670

1.29%

1.30%

1.31%

1.31%

1.35%

$735

Highlights

• Bolstered ALLL in light of changes to

the economic outlook

- Increased reserves by $33mm, driven primarily by changes in the impact of the economic forecast

03.31.24 06.30.24 09.30.24 12.31.24 03.31.25

ALLL ALLL/Loans HFI

Composition of ALLL by Portfolio

($ in millions)



Headquartered in Pasadena, California



Founded in 1973 - over 50 years in operation



Over 25 years on Nasdaq

Roots in the U.S. Asian-American immigrant community, expanded to bridge businesses across the Pacific

ROTCE1

21.3%

16.7%17.2%

17.1%

19.4%

15.2%

17.0%

14.2%

10.0%

12.4%

2020 2021 2022 2023 2024

1.8%

1.7%

1.6%

1.2%

1.3%

1.5%

1.1%

1.0%

0.8%

1.0%

ROAA

Award-winning Company

#1 Top Performing Bank in 2024, $50+ Billion (Bank Director) #1 Top Performing Bank in 2022, $10+ Billion (S&P Global) Outstanding CRA Rating

2020 2021 2022 2023 2024

Peer Median2 EWBC

Source: S&P Capital IQ

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, 03.31.25)

C&I

$17.5bn

Total Loan Portfolio

$54.3bn

CRE

$20.5bn

General

Real Estate Investment & Mgmt.

Capital Call Lending

Media & Entertainment Manufacturing and Wholesale

Financial Services

Infrastructure & Clean Energy

Industries with 1% of total loans outstanding1

(1) Industries with 1% of total loans outstanding: Art Finance, Consumer Finance, Food Production & Distribution, Equipment Finance, Healthcare Services, Hospitality & Leisure, Oil & Gas, Tech & Telecom

Multifamily

Retail

Industrial

Hotel

Office

All other CRE Healthcare Construction and Land

15

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 03.31.25)

>70%

(as of 03.31.25)

Total Portfolio

Size

Weighted

Avg. LTV1

Average

Loan Size

>65% to 70%

5%

3%

>60% to 65%

13%

>55% to 60%

15%

49%

Average LTV1

<=50%

49%

>50% to 55%

15%

Total CRE $20.5 49% $3

• Fewer than 25% of CRE loans have an LTV over 60%

  
  
  

  16

  1. Weighted average LTV is based on most recent LTV, using most recent available appraisal and current loan commitment

  2. Construction & Land average size based on total commitment

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 03.31.25)

Washington Other NY, 1% 6%

Manhattan, 1%

Other Regions

6%

(as of 03.31.25)

Loan Size

Balance ($ in mm)

No. of Loans

Avg.

Loan Size ($ in mm)

Weighted Avg. LTV (%)

New Jersey

3%

Other TX 4%

37%

Other Los Angeles

County

Dallas 4%

Houston 3%

Other CA, 1%

7%

San Francisco

9%

Other Bay Area

12%

Other SoCal

6%

Downtown Los Angeles and Adjacent Neighborhoods

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 03.31.25)

Washington

Other Regions

12%

3%

28%

Other Los Angeles

County

(as of 03.31.25)

Loan Size

Balance ($ in mm)

No. of Loans

Avg.

Loan Size ($ in mm)

Weighted Avg. LTV (%)

Other NY

5%

Manhattan

3%

New Jersey, 1%

Other TX, 2%

Dallas, 2%

Houston 6%

4%

Other

CA 2%

San Francisco

10%

Other

18%

Other SoCal

4%

Downtown

Los Angeles and Adjacent Neighborhoods

Bay Area

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 03.31.25)

Nevada

Other Regions

6%

(as of 03.31.25)

Loan Size

Balance ($ in mm)

No. of Loans

Avg.

Loan Size ($ in mm)

Weighted Avg. LTV (%)

Arizona 3%

4%

Washington

3%

31%

Other Los Angeles

County

Other NY 3%

Manhattan, 2%

Oklahoma Other Texas, 1%

Dallas

Houston

3%

2%

7%

6%

Other

CA 6%

8%

3%

12%

Other

Downtown Los Angeles and

Adjacent Neighborhoods

San Francisco

Other Bay Area

SoCal

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 03.31.25

>60%

11%

>55% to 60%

27%

<=50%

50%

>50%

to 55%

12%

(as of 03.31.25) Outstandings

• $16.2bn loans outstanding

  51%

  Average LTV1

  Resi. Mortgage Distribution by Geography3

  (as of 03.31.25)

  $438,000

  Average loan size2

   +1% Q-o-Q and +6% Y-o-Y

  Originations

• $0.8bn in 1Q25, unchanged from the prior quarter

• Primarily originated through East West Bank branches

  Single-family Residential

• $14.4bn loans outstanding

  
  
  

  Other 9%

  Texas 2%

  Washington 6%

  New York 25%

  Southern California 42%

  Northern California 16%

   +1% Q-o-Q and +6% Y-o-Y

  HELOC

  • $1.8bn loans outstanding

  • $3.5bn in undisbursed commitments

  • 34% utilization, unchanged from 12.31.24

  • 77% of commitments in first lien position

    1. Combined LTV for 1st and 2nd liens; based on commitment

       Cash and Securities

       Enhanced liquidity while supporting earnings with high-quality liquid assets

       Average Total Securities Portfolio and Cash

       ($ in billions)

       Highlights

       $18.8

       $19.2

       $16.1

       $17.7

       $16.0

       $10.2

       3.19%

       4.03%

       3.93%

       $12.7

       $11.9

       3.98%

       $14.2

       4.08%

       $15.1

       $4.1

Total Securities & Resale Agreements Cash & Equivalent Total Securities Average Yield

1Q24 2Q24 3Q24 4Q24 1Q25

Securities Portfolio Composition by Risk-Weighted Asset (RWA) Distribution

$4.4

$0.1

$0.7

($ in billions, as of 03.31.25)

• Securities portfolio well-positioned as a source of liquidity, interest rate risk management, and earnings support

  • Total securities average yield up 10bps Q-o-Q

  • 95% of investment portfolio 0% - 20% risk-weighted (HQLA)

  • 56% fixed-rate securities, 44% floating

  • Portfolio includes ~$7bn of Ginnie Mae

  0% RWA

  1%‒20% RWA

  $10.1

  floating-rate securities

  $15.3bn Securities Portfolio

21%‒50% RWA

51%‒100% RWA

Loan Yields

Hedge Impact and Outlook Loan Portfolio by Index Rate

(as of 03.31.25)

• $7mm negative impact to 1Q25 NII from cash flow hedges (4bps to NIM)

• $1bn of forward starting hedges expected to come on in 2H25, with a blended receive-fixed rate of ~4%

• $1bn of negative carry swaps rolled off in 1Q, which provided significant lift to hedge impact in February and March

Fixed rate

28%

21%

21%

30%

Hybrid in fixed rate period

Variable - SOFR

Variable - Prime, all other rates

Average Loan Rate by Portfolio

C&I

CRE

Residential Mortgage

8.06%

8.01%

7.93%

7.42%

7.06%

6.39% 6.41% 6.44% 6.22% 6.20%

5.71% 5.80% 5.86% 5.86% 5.94%

*47% had customer-level interest rate derivative contracts 04.15.25 rate sheet price for 30-year fixed: 6.750%

Deposit and Funding Cost

Average Deposit and Liability Cost

3.85%

3.92%

3.94%

4.07%

3.93%

4.05%

3.63%

3.71%

3.34%

3.43%

2.84%

2.96%

2.98%

2.75%

2.54%

1Q24 2Q24 3Q24 4Q24 1Q25

Average cost of deposits Average cost of interest-bearing deposits Average cost of interest-bearing liabilities

Average Deposit Rate by Portfolio

Interest-bearing Checking

2.51%

2.81% 2.84% 2.98% 2.82%

Money Market

Time

3.97% 3.97%

3.82%

3.32%

3.17%

3.93%

4.44% 4.56% 4.55% 4.31%

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 of fully taxable equivalent ("FTE") net interest

income and total revenue. The FTE adjustment relates to tax exempt interest on certain investment securities and loans. Efficiency ratio represents noninterest expenses divided by total revenue (FTE). Pre-tax, pre-provision income represents total revenue (FTE) less noninterest expense.

Three Months Ended

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 adjustments below. Adjusted diluted EPS represents diluted EPS adjusted for the tax-effected adjustments below. 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. During the first quarters of 2025 and 2024, the Company recorded $833 thousand and $10 million, respectively, of pre-tax FDIC special assessment charges. The Company recorded a $3 million FDIC special assessment reversal during the fourth quarter of 2024. Pre-tax FDIC special assessment charges/reversals are included in Deposit insurance premiums and regulatory assessments on the Condensed Consolidated Statement of Income. During the fourth quarter of 2024, the Company recorded $343 thousand 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.

25

(1) Applied statutory tax rate of 29.73% for the three months ended March 31, 2025 and December 31, 2024. Applied statutory tax rate of 29.56% for the three months ended March 31, 2024

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 book value per share and TCE ratio are non-GAAP financial measures. Tangible book value and tangible assets represent stockholders' equity and total assets, respectivel y, 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.

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 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

27

1. Applied statutory tax rate of 29.73% for the three months ended March 31, 2025 and December 31, 2024. Applied statutory tax rate of 29.56% for the three months ended March 31, 2024

2. Annualized