FOR FURTHER INFORMATION AT THE COMPANY:

Julia Gouw

Chief Financial Officer

(626) 768-6898

EAST WEST BANCORP REPORTS RECORD

EARNINGS OF $32.1 MILLION FOR FIRST QUARTER 2006

Pasadena, CA - April 17, 2006 - East West Bancorp, Inc. (Nasdaq: EWBC), parent company of East West Bank, one of the nation’s premier community banks, today reported financial results for first quarter 2006. Fully diluted earnings per share for the first quarter increased 25% to a record $0.55 per share from $0.44 in the prior year period.

Highlights for the First Quarter

·   Record net income of $32.1 million, up 36% from prior year

·   Record net interest income of $83.0 million, up 33% from prior year

·   Net interest margin of 4.18%

·   Record total assets of $9.28 billion

·   Record gross loans of $7.66 billion

·   Record total deposits of $7.02 billion

·   Total nonperforming assets were 0.15% of total assets

·   Efficiency ratio of 36.76%

·   Successful close of the Standard Bank acquisition

Financial Summary

First quarter net income was a record $32.1 million, up 36% from $23.5 million reported in the prior year period. Diluted earnings per share for first quarter 2006 rose to a record $0.55, up 25% from $0.44 reported in the prior year period. For the quarter, return on average equity totaled 16.72%, while return on average assets totaled 1.50%. The effective tax rate for the quarter equaled 38.10%, compared to 35.80% for the prior year period. Pretax income for the first quarter of 2006 totaled $51.8 million, a 41% or $15.1 million increase over the year ago figure. The increase in earnings in first quarter 2006 was primarily a result of higher net interest income.

“Our first quarter 2006 results indicate we are well underway to achieving our 10^th year of solid growth and record net income.East West has achieved these results despite an environment that included volatile interest rates and increased market competition throughout our industry,” stated Dominic Ng, Chairman, President and Chief Executive Officer of East West. “During the first quarter, we realized strong balance sheet and earnings growth through meaningful loan and core deposit growth and the completion of the Standard Bank acquisition. This growth was supported by an improvement in our already strong credit quality, as we experienced a decline in nonperforming assets from year-end 2005.”

“We were very pleased to end the first quarter with the successful close of the Standard Bank acquisition. With this acquisition, East West expanded its market in California with the addition of six new branches, $728 million in deposits and thousands of new customers,” continued Ng.

On March 17, 2006, East West completed the acquisition of Standard Bank, an $895 million asset federal savings bank headquartered in Monterey Park, California, operating through six branches throughout the Los Angeles marketplace. The final consideration paid for the acquisition of Standard Bank was $200.3 million, consisting of approximately 3.6 million shares of newly issued common stock and $66.4 million in cash. East West issued $30.0 million in junior subordinated debt securities to partially fund the acquisition.

Management Guidance

Based on the results of the first quarter and management’s expectations for the rest of the year, the Company has maintained its previously stated guidance of earnings per share for 2006. Including the estimated accretion from the acquisition of Standard Bank, management expects earnings per share to be $2.25 to $2.29 for the full year of 2006. This is an increase of $0.28 to $0.32 cents per share from 2005.

The EPS guidance is based on the following assumptions:

·   Annualized loan growth of 15% to 17% for the remainder of 2006

·   Annualized deposit growth of 14% to 16% for the remainder of 2006

·   An efficiency ratio between 37% and 38%

·   An effective tax rate between 38% and 39%

·   A stable or marginally increasing interest rate environment and a net interest margin between 4.10% and 4.15%

·   Implementation FASB 123R, resulting in a quarterly stock option expense of approximately $300 thousand after tax

Ng also provided updated guidance on the Bank’s outlook for the full-year 2006, “We believe that we are positioned for good growth and earnings for the year. Credit quality remains at high levels and we anticipate continued expansion in loans and deposits, despite increasing competition on both fronts. We believe these factors will help to mitigate uncertainty over short-term and long-term rates and any resulting compression in interest rate margins. These expectations have led us to maintain our prior EPS guidance, resulting in a full-year 2006 earnings per share growth of 14% to 16% over 2005.”

Balance Sheet Summary

At March 31, 2006, total assets were $9.28 billion compared to $8.28 billion at December 31, 2005. Gross loans at March 31, 2006 totaled $7.66 billion compared to $6.79 billion at year-end 2005. Excluding the impact of the Standard Bank acquisition, organic growth for the quarter was a solid $367.9 million, or 22% annualized. Growth in construction, single family real estate and commercial business loans added the largest dollar impact to our organic growth during the quarter.

Average earning assets for the first quarter of 2006 equaled $8.07 billion, 37% higher than the first quarter of 2005. The growth in average earning assets was driven by a 35% or $1.84 billion increase in average loans to $7.08 billion. The yield on average earning assets for the quarter was 6.90%, an increase of 105 basis points from the year ago quarter and an increase of 36 basis points from the previous quarter. The yield on average loans receivable for the quarter was 7.21%, an increase of 110 basis points from the year ago quarter and an increase of 37 basis points from the previous quarter. The rise in the yield on average earning assets was attributable to increases in market interest rates and the corresponding repricing of our loan portfolio.

Total deposits at March 31, 2006 were $7.02 billion compared to $6.26 billion at December 31, 2005. Excluding the impact of the Standard Bank acquisition, organic deposit growth for the quarter was $36.6 million, or 2% annualized. Core deposits at March 31, 2006 totaled $3.44 billion compared to $3.11 billion at year-end 2005. Excluding the impact of the Standard Bank acquisition, organic core deposit growth for the quarter was $133.6 million, or 17% annualized.

Average total deposits for the first quarter grew to $6.21 billion, 35% above the figure for the prior year period, while average core deposits totaled $2.98 billion, 28% greater than a year ago. The growth in average deposits is a result of substantial increases in average time deposits of 41% or $940.8 million, money market deposits of 66% or $409.3 million and noninterest bearing demand deposits 13% or $133.4 million.

The average cost of deposits for the first quarter of 2006 was 2.54%, a 111 basis point increase from the year ago quarter and a 40 basis point increase from the previous quarter. The average cost of funds for the first quarter equaled 2.86%, a 122 basis point increase from the prior year and a 41 basis point increase from the prior quarter. The rise in the cost of deposits for both the year-to-date and quarter-to-date periods was attributable to increases in market interest rates and ongoing competition for deposits.

First Quarter Operating Results

Net interest income for the first quarter increased to a record $83.0 million, 33% or $20.8 million greater than the first quarter of 2005 and 2% or $1.7 million greater on a sequential quarter basis. The interest margin for the quarter of 4.18% reflected a decrease of 11 basis points from the year ago margin and a decrease of 2 basis points from the previous quarter margin. The decrease in margin for both the sequential quarter and the previous year was primarily driven by continued competition in loan and deposit pricing. To a lesser extent, the net interest margin also decreased due to the impact of the assets acquired from Standard Bank. We expect net interest margin to be between 4.10% and 4.15% for the remainder of the year as banks continue to compete aggressively for loans and deposits.

East West recorded $3.3 million in loan loss provisions during the first quarter of 2006, compared to $4.4 million during the first quarter of 2005 and $2.5 million during the previous quarter. Based on the projected growth of the loan portfolio during the remainder of 2006, management anticipates that the provision for loan losses should be comparable to the first quarter for the remainder of the year.

Noninterest income for the first quarter totaled $8.9 million, 37% or $2.4 million higher than the first quarter of 2005 and 21% or $1.5 million higher than the sequential quarter. The year-over-year increase in noninterest income is due to an increase in gain on investment securities available-for-sale of 283% or $1.3 million, compared to prior year. Core noninterest income, excluding the impact of gain on sales of investment securities and fixed assets, totaled $7.1 million during the quarter, 18% or $1.1 million higher than the prior year figure and 9% or $568 thousand higher than the sequential quarter. The increase in core noninterest income year-over-year was largely a result of higher branch fees due to the increased number of customer accounts. This increase in branch fees was partially offset by a decrease in letters of credit fees and commissions due to lower credit enhancement fees.

Noninterest expense totaled $36.8 million for the first quarter of 2006, 33% or $9.1 million higher than a year ago and 1% or $285 thousand lower than the previous quarter. This increase from prior year was largely due to increased staffing levels and an overall increase in operating costs due to the acquisition of United National Bank in the third quarter of 2005. Occupancy expense has also increased due to the recent relocation and expansion of our corporate offices. Other operating expenses increased $3.2 million or 38% during the quarter compared to the same period in prior year. This increase in other operating expenses was primarily a result of our overall expansion. Additionally, other operating expenses increased due to our increased advertising and marketing efforts and higher deposit-related costs resulting from growth in commercial deposits. Based on the expected growth of the Bank, management estimates that noninterest expenses should increase by 25% to 28% for the year, compared to 2005.

East West generated a 36.76% efficiency ratio for the first quarter of 2006, compared to 37.01% a year ago. Management believes that an efficiency ratio between 37% and 38% remains achievable for the full-year 2006.

Asset Quality

Overall, asset quality improved in the first quarter of 2006. We experienced a significant reduction in loan delinquencies and losses. Total nonperforming assets dropped to $13.8 million or a low 0.15% of total assets at March 31, 2006, compared to $30.1 million, or 0.36% of total assets at December 31, 2005. The decrease in nonperforming assets primarily resulted from loans either that paid off or were brought current. During the quarter, we foreclosed on one commercial real estate property valued at $2.8 million. Nonaccrual loans at March 31, 2006 were $11.0 million or 0.14% of total loans, compared to $24.1 million or 0.36% of total loans, at December 31, 2005. As of March 31, 2006, we had no loans past due but not on nonaccrual status, compared to $5.7 million as of December 31, 2005. These loans either that paid off or were brought current during the quarter.

Net loan recoveries for the quarter totaled $46 thousand or 0.00% of average loans. This compares to net chargeoffs of $765 thousand or an annualized 0.06% of average loans for the first quarter of 2005 and net chargeoffs $375 thousand or an annualized 0.02% of average loans for the previous quarter. Management believes that asset quality continues to be strong and that nonperforming assets should continue to be below 0.50% of total assets and that net chargeoffs should remain below an annualized 0.35% for the full year 2006.

The allowance for loan losses at March 31, 2006 was $75.5 million or 0.99% of total loans and 687% of nonaccrual loans, compared to $68.6 million or 1.01% of total loans and 284% of nonaccrual loans at December 31, 2005. $4.1 million was added to the allowance for loan losses during the quarter due to the allowance acquired from Standard Bank. At March 31, 2006, the allowance for unfunded loan commitments and off-balance sheet credit exposures amounted to $11.7 million, compared to $11.1 million at December 31, 2005.

Capitalization

East West continues to remain well capitalized under all regulatory guidelines. At March 31, 2006, our Tier I risk-based capital ratio was 9.26%, total risk-based capital ratio was 11.27% and Tier I leverage ratio was 8.96%. During the quarter, we issued $30.0 million in junior subordinated debt securities through a pooled trust preferred offering, which qualifies for Tier I capital. Total stockholders’ equity as of March 31, 2006 was $903.5 million, representing a book value of $14.91 per share.

About East West

East West Bancorp is a publicly owned company, with $9.3 billion in assets, whose stock is traded on the Nasdaq National Market under the symbol “EWBC”. The company's wholly owned subsidiary, East West Bank, is the second largest independent commercial bank headquartered in Los Angeles with 62 branch locations. East West Bank serves the community with 61 branch locations across Southern and Northern California, one branch location in Houston, Texas and a Beijing Representative Office in China. For more information on East West Bancorp, visit the company's website at www.eastwestbank.com.

Forward-Looking Statements

This release may contain forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and accordingly, the cautionary statements contained in East West Bancorp’s Annual Report on Form 10-K for the year ended Dec. 31, 2005 (See Item I -- Business, and Item 7 -- Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations), and other filings with the Securities and Exchange Commission are incorporated herein by reference. These factors include, but are not limited to: the effect of interest rate and currency exchange fluctuations; competition in the financial services market for both deposits and loans; EWBC’s ability to efficiently incorporate acquisitions into its operations; the ability of EWBC and its subsidiaries to increase its customer base; the effect of regulatory and legislative action, including California tax legislation and an announcement by the state’s Franchise Tax Board regarding the taxation of Registered Investment Companies; and regional and general economic conditions. Actual results and performance in future periods may be materially different from any future results or performance suggested by the forward-looking statements in this release. Such forward-looking statements speak only as of the date of this release. East West expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in the Bank’s expectations of results or any change in event.

EAST WEST BANCORP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(unaudited)
Assets	March 31, 2006			December 31, 2005			% Change
Cash and cash equivalents	$	133,726		$	151,192			(12	)
Interest bearing deposits in other banks		1,059			-			100
Securities purchased under resale agreements		100,000			50,000			100
Investment securities available-for-sale		850,018			869,837			(2	)
Loans receivable (net of allowance for loan losses
of $75,493 and 68,635)		7,576,528			6,724,320			13
Premiums on deposits acquired, net		25,737			18,853			37
Goodwill		244,145			143,254			70
Other assets		349,322			320,800			9
Total assets	$	9,280,535		$	8,278,256			12
Liabilities and Stockholders' Equity
Deposits	$	7,023,676		$	6,258,587			12
Fed funds purchased		5,500			91,500			(94	)
Federal Home Loan Bank advances		738,958			617,682			20
Securities sold under repurchase agreements		325,000			325,000			0
Notes payable		8,833			8,833			0
Accrued expenses and other liabilities		91,022			89,421			2
Long-term debt		184,023			153,095			20
Total liabilities		8,377,012			7,544,118			11
Stockholders' equity		903,523			734,138			23
Total liabilities and stockholders' equity	$	9,280,535		$	8,278,256			12
Book value per share	$	14.91		$	12.99			15
Number of shares at period end		60,602			56,519			7
		March 31, 2006			December 31, 2005			% Change
Loans receivable
Real estate - single family	$	648,415		$	509,151			27
Real estate - multifamily		1,597,442			1,239,836			29
Real estate - commercial		3,512,886			3,321,520			6
Real estate - construction		767,925			640,654			20
Commercial		718,833			643,296			12
Trade finance		219,350			230,771			(5	)
Consumer		192,018			208,797			(8	)
Total gross loans receivable		7,656,869			6,794,025			13
Unearned fees, premiums and discounts		(4,848	)		(1,070	)		353
Allowance for loan losses		(75,493	)		(68,635	)		10
Net loans receivable	$	7,576,528		$	6,724,320			13
Deposits
Noninterest-bearing demand	$	1,389,675		$	1,331,992			4
Interest-bearing checking		472,327			472,611			0
Money market		1,121,378			978,678			15
Savings		452,428			326,806			38
Total core deposits		3,435,808			3,110,087			10
Time deposits less than $100,000		1,165,273			927,793			26
Time deposits $100,000 or greater		2,422,595			2,220,707			9
Total time deposits		3,587,868			3,148,500			14
Total deposits	$	7,023,676		$	6,258,587			12

EAST WEST BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(unaudited)
	Quarter Ended March 31,						%
	2006			2005			Change
Interest and dividend income	$	137,302		$	84,756			62
Interest expense		(54,254	)		(22,534	)		141
Net interest income before provision for loan losses		83,048			62,222			33
Provision for loan losses		(3,333	)		(4,370	)		(24	)
Net interest income after provision for loan losses		79,715			57,852			38
Noninterest income		8,890			6,500			37
Noninterest expense		(36,823	)		(27,718	)		33
Income before provision for income taxes		51,782			36,634			41
Income taxes		(19,731	)		(13,115	)		50
Net income	$	32,051		$	23,519			36
Net income per share, basic	$	0.56		$	0.45			24
Net income per share, diluted	$	0.55		$	0.44			25
Shares used to compute per share net income:
- Basic		56,807			52,245			9
- Diluted		58,292			53,963			8
		Quarter Ended March 31,						%
		2006			2005			Change
Noninterest income:
Branch fees	$	2,539		$	1,593			59
Letters of credit fees and commissions		2,172			2,537			(14	)
Net gain on investment securities available-for-sale		1,716			448			283
Ancillary loan fees		779			517			51
Income from secondary market activities		139			192			(28	)
Other operating income		1,545			1,213			27
Total noninterest income	$	8,890		$	6,500			37
Noninterest expense:
Compensation and employee benefits	$	16,169		$	12,854			26
Occupancy and equipment expense		4,777			3,258			47
Amortization of premiums on deposits acquired		1,765			603			193
Amortization of investments in affordable
housing partnerships		1,265			1,681			(25	)
Data processing		760			569			34
Deposit insurance premiums and regulatory
assessments		316			223			42
Other operating expense		11,771			8,530			38
Total noninterest expense	$	36,823		$	27,718			33

EAST WEST BANCORP, INC.
SELECTED FINANCIAL INFORMATION
(Dollars in thousands)
(unaudited)
Average Balances	Quarter Ended March 31,						%
	2006			2005			Change
Loans receivable
Residential first mortgage	$	565,054		$	350,214			61
Real estate - multifamily		1,314,616			1,131,729			16
Real estate - commercial		3,369,088			2,608,237			29
Real estate - construction		692,535			378,008			83
Commercial		723,416			429,448			68
Trade finance		214,153			157,963			36
Consumer		199,943			180,935			11
Total loans receivable		7,078,805			5,236,534			35
Investment securities available-for-sale		838,142			579,986			45
Earning assets		8,067,012			5,877,973			37
Total assets		8,568,248			6,180,502			39
Deposits
Noninterest-bearing demand	$	1,178,752		$	1,045,326			13
Interest-bearing checking		438,484			335,850			31
Money market		1,027,211			617,948			66
Savings		337,329			330,172			2
Total core deposits		2,981,776			2,329,296			28
Time deposits less than $100,000		993,794			769,485			29
Time deposits $100,000 or greater		2,232,937			1,516,440			47
Total time deposits		3,226,731			2,285,925			41
Total deposits		6,208,507			4,615,221			35
Interest-bearing liabilities		6,511,849			4,534,894			44
Stockholders' equity		766,854			520,032			47
Selected Ratios		Quarter Ended March 31,						%
		2006			2005			Change
For The Period
Return on average assets		1.50	%		1.52	%		(2	)
Return on average equity		16.72	%		18.09	%		(8	)
Interest rate spread		3.52	%		3.83	%		(8	)
Net interest margin		4.18	%		4.29	%		(3	)
Yield on earning assets		6.90	%		5.85	%		18
Cost of deposits		2.54	%		1.43	%		78
Cost of funds		2.86	%		1.64	%		74
Noninterest expense/average assets (1)		1.58	%		1.65	%		(4	)
Efficiency ratio (1)		36.76	%		37.01	%		(1	)
Net chargeoffs to average loans (2)		0.00	%		0.06	%		(100	)
Period End
Tier 1 risk-based capital ratio		9.26	%		9.68	%		(4	)
Total risk-based capital ratio		11.27	%		10.78	%		5
Tier 1 leverage capital ratio		8.96	%		8.83	%		1
Nonperforming assets to total assets		0.15	%		0.14	%		7
Nonaccrual loans to total loans		0.14	%		0.07	%		100
Allowance for loan losses to total loans		0.99	%		1.00	%		(1	)
Allowance for loan losses and unfunded loan commitments to total loans		1.14	%		1.15	%		(1	)
Allowance for loan losses to nonaccrual loans		687.05	%		1408.31	%		(51	)
(1) Excludes the amortization of intangibles and investments in affordable housing partnerships.
(2) Annualized.

EAST WEST BANCORP, INC.
QUARTER TO DATE AVERAGE BALANCES, YIELDS AND RATES PAID
(Dollars in thousands)
(unaudited)
	Quarter Ended March 31,
	2006								2005
	Average								Average
	Volume			Interest		Yield (1)			Volume			Interest		Yield (1)
	(Dollars in Thousands)
ASSETS
Interest-earning assets:
Short-term investments	$	10,816		$	121		4.54	%	$	7,043		$	42		2.42	%
Interest bearing deposits in other banks		255			2		3.18	%		-			-		-
Securities purchased under resale agreements		78,889			1,347		6.92	%		-			-		-
Investment securities available-for-sale		838,142			9,215		4.46	%		579,986			5,257		3.68	%
Loans receivable		7,078,805			125,871		7.21	%		5,236,534			78,896		6.11	%
FHLB and FRB stock		60,105			746		5.03	%		54,410			561		4.18	%
Total interest-earning assets		8,067,012			137,302		6.90	%		5,877,973			84,756		5.85	%
Noninterest-earning assets:
Cash and due from banks		142,453								102,019
Allowance for loan losses		(70,429	)							(52,397	)
Other assets		429,212								252,907
Total assets	$	8,568,248							$	6,180,502
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Checking accounts		438,484			1,326		1.23	%		335,850			633		0.76	%
Money market accounts		1,027,211			7,834		3.09	%		617,948			2,960		1.94	%
Savings deposits		337,329			337		0.41	%		330,172			190		0.23	%
Time deposits less than $100,000		993,794			7,836		3.20	%		769,485			3,866		2.04	%
Time deposits $100,000 or greater		2,232,937			21,556		3.92	%		1,516,440			8,642		2.31	%
Fed funds purchased		102,014			1,119		4.45	%		5,456			42		3.12	%
Federal Home Loan Bank advances		896,830			8,708		3.94	%		902,067			5,181		2.33	%
Securities sold under repurchase agreements		325,000			2,877		3.59	%		-			-		-
Long-term debt		158,250			2,661		6.82	%		57,476			1,020		7.20	%
Total interest-bearing liabilities		6,511,849			54,254		3.38	%		4,534,894			22,534		2.02	%
Noninterest-bearing liabilities:
Demand deposits		1,178,752								1,045,326
Other liabilities		110,793								80,250
Stockholders' equity		766,854								520,032
Total liabilities and stockholders' equity	$	8,568,248							$	6,180,502
Interest rate spread							3.52	%							3.83	%
Net interest income and net margin				$	83,048		4.18	%				$	62,222		4.29	%
(1) Annualized.