ex99-1.htm

FOR FURTHER INFORMATION AT THE COMPANY:

Irene Oh

Chief Financial Officer

(626) 768-6360

EAST WEST BANCORP REPORTS THIRD QUARTER 2010 NET INCOME OF $47.0 MILLION OR $0.27 PER SHARE

Pasadena, CA – October 25, 2010 – East West Bancorp, Inc. (Nasdaq: EWBC), parent company of East West Bank, one of the nation’s premier regional banks, today reported financial results for the third quarter of 2010. For the third quarter of 2010, net income was $47.0 million and net income available to common stockholders was $0.27 per diluted share.

“We are pleased to report strong third quarter earnings of $47.0 million, an increase of 29% from the second quarter of 2010. East West has consistently improved core profitability each and every quarter in 2010,” stated Dominic Ng, Chairman and Chief Executive Officer of East West. “During the third quarter we grew non-covered commercial and trade finance loan balances by $167.3 million or 11% to $1.7 billion. We grew core deposits by $290.3 million or 4% to a record $8.5 billion and total deposits to a record high of $15.3 billion.”

“For East West, credit costs have now declined for the past four consecutive quarters. Quarter over quarter, net charge-offs decreased $10.1 million or 18%, provision for loan losses decreased $16.6 million or 30% and nonperforming assets remained under 1% of total assets.”

Ng concluded, “Last week we seamlessly completed the core systems integration of Washington First International Bank. With the integrations of both United Commercial Bank and Washington First International Bank behind us, East West is 100% focused on profitably growing our core business and serving our customers.”

2010 Quarterly Results Summary

	For the three months ended,									% Change
Dollars in millions, except per share	September 30, 2010			June 30, 2010			March 31, 2010			Q3 vs. Q2 2010
Net income (loss)	$	47.0		$	36.3		$	24.9			29	%
Net income (loss) available to common shareholders		40.2			30.2			18.8			33	%
Earnings per share (diluted)		0.27			0.21			0.13			29	%

Return on average assets		0.93	%		0.73	%		0.49	%		27	%
Return on average common equity		8.11	%		6.26	%		4.71	%		30	%

Tier 1 risk-based capital ratio		17.9	%		18.9	%		18.9	%		-5	%
Total risk-based capital ratio		19.7	%		20.8	%		20.9	%		-5	%

East West has increased profitability each quarter of 2010, growing net income 46% in the second quarter to $36.3 million and 29% in the third quarter to $47.0 million. Quarter over quarter, diluted earnings per share grew $0.08 or 62% in the second quarter and $0.06 or 29% in the third quarter.

Third Quarter 2010 Highlights

·	Third Quarter Earnings – For the third quarter 2010, net income was $47.0 million, an increase of $10.6 million over net income of $36.3 million reported in the second quarter of 2010 and an increase of $115.5 million over a net loss of $68.5 million reported in the third quarter of 2009.

Strong Net Interest Margin –The core net interest margin, excluding the net impact to interest income of $5.5 million resulting from the disposition of covered loans, totaled 3.98% for the quarter. The third quarter core net interest margin of 3.98% reflected no change from the second quarter and an increase from 3.20% in the third quarter of 2009. (See reconciliation of the GAAP financial measure to this non-GAAP financial measure in the tables attached.)

·	Strong C&I Loan Growth – Quarter to date, non-covered commercial and trade finance loans grew $167.3 million or 11% to $1.7 billion.

·	Significant Deposit Growth – Core deposits grew to a record $8.5 billion as of September 30, 2010, an increase of $290.3 million or 4% from June 30, 2010. Additionally, time deposits grew $89.0 million or 1% resulting in total deposits of a record $15.3 billion as of September 30, 2010.

·	Net Charge-offs Down 18% from Q2 2010, Down 70% from Q3 2009 – Net charge-offs declined to $45.1 million, a decrease of $10.1 million or 18% from the prior quarter and a decrease of $106.2 million or 70% from the third quarter of 2009.

·	Nonperforming Assets Remains Below 1% – Nonperforming assets remain low at $196.3 million, or 0.96% of total assets. This is the fourth consecutive quarter East West has reported a nonperforming assets to total assets ratio under 1.00%.

Reduction in Noninterest Expense – Total noninterest expense excluding expenses to be reimbursed by the FDIC, totaled $92.1 million in the third quarter, a decrease of $10.2 million or 10% as compared to the second quarter of 2010. This figure represents an improvement from our noninterest expense guidance of $105 million. (See reconciliation of the GAAP financial measure to this non-GAAP financial measure in the tables attached.)

·	Strong Capital Levels – As of September 30, 2010, East West’s Tier 1 risk-based capital and total risk-based capital ratios were 17.9% and 19.7%, respectively, significantly higher than the well-capitalized requirements of 6% and 10%, respectively.

Management Guidance

The Company is providing guidance for the fourth quarter and the full year of 2010. Management currently estimates that fully diluted earnings per share for the fourth quarter of 2010 will range from $0.28 to $0.31 per diluted share resulting in earnings per share for the full year 2010 of $0.89 to $0.92. This EPS guidance is based on the following assumptions:

·	Stable balance sheet with an increase in average earning assets to $17.9 billion,

·	A stable interest rate environment and a net interest margin between 4.00% and 4.10%,

·	Provision for loan losses of approximately $25 million to $30 million for the quarter,

·	Total noninterest expense of approximately $95 million, net of amounts to be reimbursed by the FDIC,

·	Effective tax rate of approximately 36%.

Balance Sheet Summary

At September 30, 2010, total assets were $20.4 billion as compared to $20.0 billion at June 30, 2010. During the third quarter, total loans decreased $157.8 million or 1% to $13.6 billion as a result of a decrease in covered loan balances of $300.0 million, offset by an increase in non-covered loans of $142.2 million. Investment securities increased $830.3 million or 40% during the quarter to $2.9 billion as a result of purchases of $1.7 billion of short-term corporate securities and agency securities, offset by sales of $177.4 million, as well as normal maturities, calls and paydowns. Deposits increased $379.3 million or 3% to $15.3 billion. During the quarter, we continued to deploy cash and short-term investments into shorter duration investment securities.

Gross loans at September 30, 2010 totaled $13.6 billion compared to $13.7 billion at June 30, 2010. During the quarter non-covered loan balances increased $142.2 million or 2%, to $8.6 billion at September 30, 2010. This increase in non-covered loans was largely driven by a $167.3 million increase in commercial and trade finance loans and a $111.4 million increase in consumer loans. The increases in the commercial and trade finance and consumer portfolios were partially offset by reduction in the commercial real estate,

construction and land portfolios. The net increase in non-covered loans was offset by decreases in the covered loan portfolio. Covered loans totaled $5.0 billion at September 30, 2010, as compared to $5.3 billion at June 30, 2010. The decrease in the covered loan portfolio was due to expected amortization paydowns, payoff and charge-off activity.

Deposit balances increased to a record $15.3 billion at September 30, 2010, compared to $14.9 billion at June 30, 2010. Total core deposits increased to a record $8.5 billion as of September 30, 2010, or an increase of $290.3 million or 4% from June 30, 2010. The increase in core deposits was largely driven by a $175.7 million or 7% increase in noninterest-bearing demand deposits which grew to a record $2.6 billion as of September 30, 2010.

Third Quarter 2010 Operating Results

Net Interest Income

Although the low interest rate environment continues to be a challenge for the industry, our net interest income has remained solid. Throughout 2010, East West has focused on maintaining a strong loan yield, improving the yield on other earning assets and growing low-cost core deposits. East West reduced the cost of deposits to 0.75% for the third quarter of 2010, down from 0.80% in the second quarter of 2010 and 1.24% in the third quarter of 2009. Further, through strategic actions taken earlier in 2010 to lower borrowing costs, East West has reduced the costs of funds to 1.11% for the third quarter of 2010, as compared to 1.17% for the second quarter of 2010 and 1.88% in the third quarter of 2009.

The core net interest margin, excluding the net impact to interest income of $5.5 million resulting from the disposition of covered loans, totaled 3.98% for the quarter, reflecting no change from the second quarter and an increase compared to 3.20% in the third quarter of 2009. The net impact of $5.5 million relates to dispositions of covered loans including early payoffs as well as charge-offs. (See reconciliation of the GAAP financial measure to this non-GAAP financial measure in the tables attached.) Management believes that this adjusted net interest margin provides more clarity on the core net interest income and net interest margin, comparability to prior periods and the ongoing performance of the Company.

Noninterest Income

Noninterest income for the third quarter totaled $29.3 million, compared to noninterest income of $35.7 million in the second quarter of 2010 and a loss of $11.9 million in the third quarter of 2009. Noninterest income for the second quarter of 2010 included a purchase accounting gain of $19.5 million from the acquisition of Washington First International Bank (WFIB). The loss in the third quarter of 2009 was primarily due to impairment losses on investment securities.

Included within noninterest income for the third quarter is an increase in the FDIC indemnification asset and receivable of $5.8 million. This amount is primarily comprised of an increase of $7.8 million due to expenses reimbursable by the FDIC offset by a decrease of $5.5 million due to the disposition of covered loans. Of the $7.8 million of expenses reimbursable by the FDIC, $4.6 million is related to net writedowns and expenses on other real estate owned, and $3.2 million is related to legal and other loan related expenses. Additionally, we recorded a net increase of $3.5 million related to discount accretion on the FDIC indemnification asset, settlement adjustments and recoveries.

During the third quarter we recorded $4.2 million in gains on sales of loans, primarily from the sale of student loans. We also sold $177.4 million in investment securities at a gain of $2.8 million and recorded impairment losses on investment securities totaling $888 thousand related to pooled trust preferred securities.

As compared to the third quarter of 2009, branch fees increased by $3.3 million or 70%, letters of credit fees and commissions increased $904 thousand or 46%, and ancillary loan fees increased $1.1 million or 93%, primarily due to the acquisition of United Commercial Bank (UCB). In total, fees and other operating income increased $7.2 million or 71% for the third quarter of 2010 as compared to third quarter of 2009. A summary of these fees and other operating income items is detailed below:

	Quarter Ended		Quarter Ended		% Change
	September 30, 2010		September 30, 2009		(Yr/Yr)
Noninterest income:
Branch fees	$	7,976	$	4,679		70	%
Letters of credit fees and commissions		2,888		1,984		46	%
Ancillary loan fees		2,367		1,227		93	%
Other operating income		4,178		2,294		82	%
Total fees & other operating income	$	17,409	$	10,184		71	%

Noninterest Expense

Noninterest expense totaled $99.9 million for the third quarter of 2010 compared to $125.3 million for the second quarter of 2010. The primary reason for the decrease in noninterest expense was due to a decrease in other real estate owned expenses to $5.7 million in the third quarter, compared to $21.0 million in the second quarter. In the second quarter, other real estate owned expenses were largely related to writedowns on covered assets which were foreclosed on. Additionally, in the third quarter, we recorded gains on sale of other real estate owned of $3.4 million, largely related to one asset, which reduced the net other real estate owned expenses to $5.7 million. Further, we recorded prepayment penalties of $3.9 million on FHLB advances in the second quarter which were included in other operating expenses. There were no FHLB advance prepayments in the third quarter.

A summary of the noninterest expenses for the third quarter, compared to the second quarter is detailed below:

	Quarter Ended		Quarter Ended
($ in thousands)	September 30, 2010		June 30, 2010
Total noninterest expense:	$	99,945	$	125,318
Amounts to be reimbursed on covered assets (80% of actual expense amount)		7,834		19,103
Prepayment penalty for FHLB advances		-		3,900
Noninterest expense excluding reimbursement amounts and prepayment penalty for FHLB advances	$	92,111	$	102,315

Under the loss share agreements with the FDIC, 80% of eligible expenses on covered assets are reimbursable from the FDIC. In the third quarter, we incurred $9.8 million in expenses on covered loans and other real estate owned, 80% or $7.8 million of which we expect to be reimbursed by the FDIC and which is recorded as an increase to the FDIC receivable as noninterest income.

Management anticipates that in the fourth quarter of 2010, noninterest expense will be approximately $95 million, net of amounts reimbursable from the FDIC.

The effective tax rate for the third quarter was 36.1% compared to 38.1% in the prior quarter and 43.5% in the prior year period. The effective tax rate is reduced from the statutory tax rate primarily due to the utilization of tax credits related to affordable housing investments.

Credit Management

Credit metrics continue to improve. For the fourth consecutive quarter, both net charge-offs and the provision for loan losses have declined. The provision for loan losses was $38.6 million for the third quarter of 2010, a decrease of $16.6 million or 30% compared to the previous quarter and a decrease of $120.6 million or 76% from the third quarter of 2009. Total net charge-offs decreased to $45.1 million for the third quarter, a decrease of $10.1 million or 18% from the previous quarter and a decrease of $106.2 million or 70% from the third quarter of 2009. Management expects that the provision for loan losses will continue to decrease and range from $25 million to $30 million for the fourth quarter of 2010.

Nonperforming assets, excluding covered assets have remained low at $196.3 million or 0.96% of total assets at September 30, 2010. This compares to 1.84% of total assets at September 30, 2009. Nonperforming assets, excluding covered assets, as of September 30, 2010 included nonaccrual loans totaling $179.4 million and REO assets totaling $16.9 million.

Credit quality has remained stable in our commercial real estate portfolio. Net charge-offs on commercial real estate loans were low at 1.36%, annualized, of total average commercial real estate loans for the third quarter. Nonperforming commercial real estate loans increased by $41.2 million, but still remain low at 1.74% of total non-covered commercial real estate loans. Land and construction loan balances have declined even further during the quarter to less than 3% of total assets at September 30, 2010.

Notwithstanding the improvements noted above, we have maintained a strong allowance for non-covered loan losses at $240.3 million or 2.79% of non-covered loans receivable at September 30, 2010, to cover inherent losses in the portfolio. This compares to an allowance for loan losses of $249.5 million or 2.94% at June 30, 2010 and $230.7 million or 2.74% of outstanding loans at September 30, 2009.

As discussed above, all loans acquired from UCB and WFIB were recorded at estimated fair value as of the acquisition dates. East West entered into loss sharing agreements with the FDIC that cover future losses incurred on nearly all the UCB and WFIB legacy loans.

Capital Strength

Capital Strength
(Dollars in millions)
				Well Capitalized Regulatory Requirement			Total Excess Above Well Capitalized Requirement

	September 30, 2010

Tier 1 leverage capital ratio		10.8	%		5.00	%	$	1,131
Tier 1 risk-based capital ratio		17.9	%		6.00	%		1,407
Total risk-based capital ratio		19.7	%		10.00	%		1,145
Tangible common equity to tangible asset		7.96	%		N/A			N/A
Tangible common equity to risk weighted assets ratio		13.5	%		4.00	%*		1,121

As there is no stated regulatory guideline for this ratio, the SCAP guideline of 4.00% tangible common equity has been used.

East West remains committed to maintaining strong capital levels that exceed regulatory requirements. As of the end of the third quarter of 2010, our Tier 1 leverage capital ratio totaled 10.8%, Tier 1 risk-based capital ratio totaled 17.9% and the total risk-based capital ratio totaled 19.7%. East West exceeds well capitalized requirements for all regulatory guidelines by over $1.0 billion.

Dividend Payout

East West’s Board of Directors has declared fourth quarter dividends on the common stock and Series A Preferred Stock. The common stock cash dividend of $0.01 is payable on or about November 24, 2010 to shareholders of record on November 10, 2010. The dividend on the Series A Preferred Stock of $20.00 per share is payable on November 1, 2010 to shareholders of record on October 15, 2010.

About East West

East West Bancorp is a publicly owned company with $20.4 billion in assets and is traded on the Nasdaq Global Select Market under the symbol “EWBC”. The Company’s wholly owned subsidiary, East West Bank, is one of the largest independent commercial banks headquartered in California with over 130 locations worldwide, including the U.S. markets of California, New York, Georgia, Massachusetts, Texas and Washington. In Greater China, East West’s presence includes a full service branch in Hong Kong and representative offices in Beijing, Shanghai, Shenzhen and Taipei. Through a wholly-owned subsidiary bank, East West’s presence in Greater China also includes full service branches in Shanghai and Shantou and representative offices in Beijing and Guangzhou. 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, 2009 (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 borrowers to perform as required under the terms of their loans; effect of additional provisions for loan losses; effect of any goodwill impairment, 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)

	September 30, 2010			June 30, 2010			December 31, 2009
Assets
Cash and cash equivalents	$	934,694		$	1,185,944		$	835,141
Short-term investments		381,799			447,168			510,788
Securities purchased under resale agreements		350,000			230,000			227,444
Investment securities		2,907,349			2,077,011			2,564,081
Loans receivable, excluding covered loans (net of allowance for loan
losses of $240,286, $249,462 and $238,833)		8,323,684			8,177,966			8,246,685
Covered loans, net		4,975,502			5,275,492			5,598,155
Total loans receivable, net		13,299,186			13,453,458			13,844,840
Federal Home Loan Bank and Federal Reserve stock		216,738			223,395			217,002
FDIC indemnification asset		874,759			947,011			1,091,814
Other real estate owned, net		16,936			16,562			13,832
Other real estate owned covered, net		137,353			113,999			44,273
Premiums on deposits acquired, net		82,755			86,106			89,735
Goodwill		337,438			337,438			337,438
Other assets		878,239			849,229			782,824
Total assets	$	20,417,246		$	19,967,321		$	20,559,212

Liabilities and Stockholders' Equity
Deposits	$	15,297,971		$	14,918,694		$	14,987,613
Federal Home Loan Bank advances		1,018,074			1,022,011			1,805,387
Securities sold under repurchase agreements		1,045,664			1,051,192			1,026,870
Subordinated debt and trust preferred securities		235,570			235,570			235,570
Other borrowings		28,328			35,504			67,040
Accrued expenses and other liabilities		406,879			365,386			152,073
Total liabilities		18,032,486			17,628,357			18,274,553
Stockholders' equity		2,384,760			2,338,964			2,284,659
Total liabilities and stockholders' equity	$	20,417,246		$	19,967,321		$	20,559,212
Book value per common share	$	13.75		$	13.31		$	14.47
Number of common shares at period end		146,508			147,939			109,963

Ending Balances
	September 30, 2010			June 30, 2010			December 31, 2009
Loans receivable
Real estate - single family	$	1,059,913		$	1,033,155		$	930,840
Real estate - multifamily		971,155			985,194			1,025,849
Real estate - commercial		3,425,852			3,500,273			3,606,179
Real estate - land		259,979			297,364			370,394
Real estate - construction		317,165			354,547			458,292
Commercial		1,696,173			1,528,863			1,512,709
Consumer		886,124			774,746			624,784
Total loans receivable, excluding covered loans		8,616,361			8,474,142			8,529,047
Covered loans, net		4,975,502			5,275,492			5,598,155
Total loans receivable		13,591,863			13,749,634			14,127,202
Unearned fees, premiums and discounts		(52,391	)		(46,714	)		(43,529	)
Allowance for loan losses on non-covered loans		(240,286	)		(249,462	)		(238,833	)
Net loans receivable	$	13,299,186		$	13,453,458		$	13,844,840

Deposits
Noninterest-bearing demand	$	2,571,750		$	2,396,087		$	2,291,259
Interest-bearing checking		762,633			685,572			667,177
Money market		4,190,448			4,162,129			3,138,866
Savings		955,278			946,043			991,520
Total core deposits		8,480,109			8,189,831			7,088,822
Time deposits		6,817,862			6,728,863			7,898,791
Total deposits	$	15,297,971		$	14,918,694		$	14,987,613

EAST WEST BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(unaudited)

	Quarter Ended
	September 30, 2010			June 30, 2010			September 30, 2009

Interest and dividend income	$	231,400		$	253,533		$	147,924
Interest expense		(48,595	)		(49,910	)		(52,044	)
Net interest income before provision for loan losses		182,805			203,623			95,880
Provision for loan losses		(38,648	)		(55,256	)		(159,244	)
Net interest income (loss) after provision for loan losses		144,157			148,367			(63,364	)
Noninterest income (loss)		29,315			35,685			(11,880	)
Noninterest expense		(99,945	)		(125,318	)		(46,064	)
Income (loss) before benefit for income taxes		73,527			58,734			(121,308	)
Provision (benefit) for income taxes		26,576			22,386			(52,777	)
Net income (loss)		46,951			36,348			(68,531	)
Preferred stock dividend, inducement, and amortization of preferred stock discount		(6,732	)		(6,147	)		(10,620	)
Net income (loss) available to common stockholders	$	40,219		$	30,201		$	(79,151	)
Net income (loss) per share, basic	$	0.27		$	0.21		$	(0.91	)
Net income (loss) per share, diluted	$	0.27		$	0.21		$	(0.91	)
Shares used to compute per share net income (loss):
- Basic		146,454			146,372			86,538
- Diluted		147,113			147,131			86,538


	Quarter Ended
	September 30, 2010			June 30, 2010			September 30, 2009
Noninterest income (loss):
Branch fees	$	7,976		$	8,219		$	4,679
Increase (decrease) in FDIC indemnification asset and FDIC receivable		5,826			(9,424	)		-
Net gain on sale of loans		4,177			8,073			8
Letters of credit fees and commissions		2,888			2,865			1,984
Net gain on sale of investment securities		2,791			5,847			2,177
Impairment loss on investment securities		(888	)		(4,642	)		(24,249	)
Ancillary loan fees		2,367			2,369			1,227
Gain on acquisition		-			19,476			-
Other operating income		4,178			2,902			2,294
Total noninterest income (loss)	$	29,315		$	35,685		$	(11,880	)

Noninterest expense:
Compensation and employee benefits	$	38,693		$	41,579		$	15,875
Occupancy and equipment expense		13,963			13,115			6,262
Loan related expenses		6,316			5,254			2,197
Other real estate owned expense		5,694			20,983			767
Deposit insurance premiums and regulatory assessments		5,676			4,528			6,057
Legal expense		5,301			6,183			1,323
Amortization of premiums on deposits acquired		3,352			3,310			1,069
Data processing		2,646			3,046			1,079
Consulting expense		1,612			1,919			759
Amortization of investments in affordable housing partnerships		1,442			2,638			1,709
Other operating expense		15,250			22,763			8,967
Total noninterest expense	$	99,945		$	125,318		$	46,064

EAST WEST BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(unaudited)

	Year To Date
	September 30, 2010			September 30, 2009

Interest and dividend income	$	803,636		$	439,180
Interest expense		(155,484	)		(175,359	)
Net interest income before provision for loan losses		648,152			263,821
Provision for loan losses		(170,325	)		(388,666	)
Net interest income (loss) after provision for loan losses		477,827			(124,845	)
Noninterest income (loss)		56,549			(24,285	)
Noninterest expense		(364,173	)		(155,382	)
Income (loss) before benefit for income taxes		170,203			(304,512	)
Provision (benefit) for income taxes		61,988			(126,790	)
Net income (loss) before extraordinary item		108,215			(177,722	)
Extraordinary item, net of tax		-			(5,366	)
Net income (loss) after extraordinary item	$	108,215		$	(183,088	)
Preferred stock dividend, inducement, and amortization of preferred stock discount		(19,017	)		(42,986	)
Net income (loss) available to common stockholders	$	89,198		$	(226,074	)
Net income (loss) per share, basic	$	0.66		$	(3.19	)
Net income (loss) per share, diluted	$	0.61		$	(3.19	)
Shares used to compute per share net income (loss):
- Basic		134,396			70,967
- Diluted		146,993			70,967


	Year To Date
	September 30, 2010			September 30, 2009
Noninterest income (loss):
Decrease in FDIC indemnification asset and FDIC receivable	$	(47,170	)	$	-
Impairment loss on investment securities		(10,329	)		(61,896	)
Net gain on sale of investment securities		24,749			7,378
Gain on acquisition		27,571			-
Branch fees		24,953			14,463
Net gain on sale of loans		12,250			19
Letters of credit fees and commissions		8,493			5,768
Ancillary loan fees		6,425			4,812
Other operating income		9,607			5,171
Total noninterest income (loss)	$	56,549		$	(24,285	)

Noninterest expense:
Compensation and employee benefits	$	131,051		$	49,492
Other real estate owned expense		44,689			16,480
Occupancy and equipment expense		39,022			19,950
Deposit insurance premiums and regulatory assessments		21,785			18,950
Loan related expenses		14,567			5,274
Legal expense		14,391			4,856
Prepayment penalty for FHLB advances		13,832			-
Amortization of premiums on deposits acquired		10,046			3,286
Data processing		8,174			3,362
Amortization of investments in affordable housing partnerships		7,117			5,121
Consulting expense		5,672			1,879
Other operating expense		53,827			26,732
Total noninterest expense	$	364,173		$	155,382

EAST WEST BANCORP, INC.
SELECTED FINANCIAL INFORMATION
(In thousands)
(unaudited)

Average Balances	Quarter Ended
	September 30, 2010			June 30, 2010			September 30, 2009
Loans receivable
Real estate - single family	$	1,051,914		$	989,744		$	888,106
Real estate - multifamily		984,589			998,090			1,036,080
Real estate - commercial		3,452,114			3,530,045			3,552,897
Real estate - land		273,571			317,291			460,256
Real estate - construction		342,388			383,846			855,446
Commercial		1,591,042			1,492,560			1,360,223
Consumer		803,430			845,104			318,758
Total loans receivable, excluding covered loans		8,499,048			8,556,680			8,471,766
Covered loans		5,105,793			5,137,863			-
Total loans receivable		13,604,841			13,694,543			8,471,766
Investment securities		2,482,951			2,202,676			2,327,346
Earning assets		17,692,002			17,525,796			11,911,186
Total assets		20,097,142			19,886,269			12,635,277

Deposits
Noninterest-bearing demand	$	2,436,031		$	2,300,228		$	1,335,131
Interest-bearing checking		731,267			663,936			342,922
Money market		4,162,847			3,968,293			2,160,722
Savings		960,927			961,374			421,844
Total core deposits		8,291,072			7,893,831			4,260,619
Time deposits		6,719,637			6,714,972			4,398,704
Total deposits		15,010,709			14,608,803			8,659,323
Interest-bearing liabilities		14,910,922			14,874,635			9,625,524
Stockholders' equity		2,360,025			2,310,623			1,543,822


Selected Ratios	Quarter Ended
	September 30, 2010			June 30, 2010			September 30, 2009
For The Period
Return on average assets		0.93	%		0.73	%		-2.17	%
Return on average common equity		8.11	%		6.26	%		-27.12	%
Interest rate spread (2)		3.90	%		4.45	%		2.78	%
Net interest margin (2)		4.10	%		4.66	%		3.20	%
Yield on earning assets (2)		5.19	%		5.80	%		4.93	%
Cost of deposits		0.75	%		0.80	%		1.24	%
Cost of funds		1.11	%		1.17	%		1.88	%
Noninterest expense/average assets (1)		1.89	%		2.32	%		1.37	%
Efficiency ratio (3)		47.64	%		56.56	%		39.99	%

(1) Excludes the amortization of intangibles, amortization and impairment loss of premiums on deposits acquired, amortization of investments in affordable housing partnerships and prepayment penalty for FHLB advances.
(2) Yields on certain securities have been adjusted upward to a "fully taxable equivalent" basis in order to reflect the effect of income which is exempt from federal income taxation at the current statutory tax rate.
(3) Represents noninterest expense, excluding the amortization of intangibles, amortization and impairment loss of premiums on deposits acquired, investments in affordable housing partnerships and prepayment penalty for FHLB advances, divided by the aggregate of net interest income before provision for loan losses, excluding nonrecurring adjustments and noninterest income, excluding impairment loss on investment securities and gain on acquisition and the decrease in FDIC indemnification asset and FDIC receivable.

EAST WEST BANCORP, INC.
SELECTED FINANCIAL INFORMATION
(In thousands)
(unaudited)

Average Balances	Year To Date
	September 30, 2010			September 30, 2009
Loans receivable
Real estate - single family	$	990,806		$	695,034
Real estate - multifamily		1,017,883			852,216
Real estate - commercial		3,519,178			3,511,979
Real estate - land		315,618			521,696
Real estate - construction		391,444			1,051,940
Commercial		1,496,885			1,411,609
Consumer		793,670			261,128
Total loans receivable, excluding covered loans		8,525,484			8,305,602
Covered loans		5,175,251			-
Total loans receivable		13,700,735			8,305,602
Investment securities		2,291,588			2,546,488
Earning assets		17,584,474			11,874,514
Total assets		20,049,938			12,584,000

Deposits
Noninterest-bearing demand	$	2,323,950		$	1,292,852
Interest-bearing checking		672,817			351,933
Money market		3,868,588			1,826,626
Savings		971,381			416,011
Total core deposits		7,836,736			3,887,422
Time deposits		6,914,615			4,586,027
Total deposits		14,751,351			8,473,449
Interest-bearing liabilities		15,191,062			9,627,681
Stockholders' equity		2,321,690			1,538,284


Selected Ratios	Year To Date
	September 30, 2010			September 30, 2009
For The Period
Return on average assets		0.72	%		-1.94	%
Return on average common equity		6.47	%		-27.46	%
Interest rate spread (2)		4.74	%		2.51	%
Net interest margin (2)		4.93	%		2.97	%
Yield on earning assets (2)		6.11	%		4.95	%
Cost of deposits		0.83	%		1.50	%
Cost of funds		1.19	%		2.15	%
Noninterest expense/average assets (1)		2.22	%		1.56	%
Efficiency ratio (3)		54.30	%		48.67	%

(1) Excludes the amortization of intangibles, amortization and impairment loss of premiums on deposits acquired, amortization of investments in affordable housing partnerships and prepayment penalty for FHLB advances.
(2) Yields on certain securities have been adjusted upward to a "fully taxable equivalent" basis in order to reflect the effect of income which is exempt from federal income taxation at the current statutory tax rate.
(3) Represents noninterest expense, excluding the amortization of intangibles, amortization and impairment loss of premiums on deposits acquired, investments in affordable housing partnerships and prepayment penalty for FHLB advances, divided by the aggregate of net interest income before provision for loan losses, excluding nonrecurring adjustments and noninterest income, excluding impairment loss on investment securities and gain on acquisition and the decrease in FDIC indemnification asset and FDIC receivable.

EAST WEST BANCORP, INC.
QUARTER TO DATE AVERAGE BALANCES, YIELDS AND RATES PAID
(In thousands)
(unaudited)

	Quarter Ended
	September 30, 2010								September 30, 2009
	Average								Average
	Volume			Interest		Yield (1)			Volume			Interest		Yield (1)

ASSETS
Interest-earning assets:
Short-term investments and interest bearing deposits in other banks	$	736,658		$	2,362		1.27	%	$	897,527		$	1,856		0.82	%
Securities purchased under resale agreements		648,136			2,410		1.46	%		91,033			2,153		9.25	%
Investment securities (2)		2,482,951			15,725		2.51	%		2,327,346			28,567		4.87	%
Loans receivable		8,499,048			116,029		5.42	%		8,471,766			114,512		5.36	%
Loans receivable - covered		5,105,793			94,057		7.31	%		-			-		-
Federal Home Loan Bank and Federal Reserve Bank stocks		219,416			817		1.49	%		123,514			918		2.97	%
Total interest-earning assets		17,692,002			231,400		5.19	%		11,911,186			148,006		4.93	%

Noninterest-earning assets:
Cash and due from banks		668,277								124,708
Allowance for loan losses		(253,078	)							(244,542	)
Other assets		1,989,941								843,925
Total assets	$	20,097,142							$	12,635,277


LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Checking accounts		731,267			550		0.30	%		342,922			286		0.33	%
Money market accounts		4,162,847			7,103		0.68	%		2,160,722			6,830		1.25	%
Savings deposits		960,927			818		0.34	%		421,844			608		0.57	%
Time deposits		6,719,637			20,028		1.18	%		4,398,704			19,246		1.74	%
Federal Home Loan Bank advances		1,020,640			5,725		2.23	%		1,046,056			11,172		4.24	%
Securities sold under repurchase agreements		1,047,697			12,189		4.55	%		1,018,321			12,140		4.66	%
Subordinated debt and trust preferred securities		235,570			1,685		2.80	%		235,570			1,760		2.92	%
Other borrowings		32,337			497		6.01	%		1,385			2		0.57	%
Total interest-bearing liabilities		14,910,922			48,595		1.29	%		9,625,524			52,044		2.15	%

Noninterest-bearing liabilities:
Demand deposits		2,436,031								1,335,131
Other liabilities		390,164								130,800
Stockholders' equity		2,360,025								1,543,822
Total liabilities and stockholders' equity	$	20,097,142							$	12,635,277

Interest rate spread							3.90	%							2.78	%

Net interest income and net interest margin				$	182,805		4.10	%				$	95,962		3.20	%

Net interest income and net interest margin, adjusted (3)				$	177,294		3.98	%

(1) Annualized
(2) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.
(3) Amounts exclude the net impact of covered loan dispositions of $5.5 million.

EAST WEST BANCORP, INC.
YEAR TO DATE AVERAGE BALANCES, YIELDS AND RATES PAID
(In thousands)
(unaudited)

	Year To Date
	September 30, 2010								September 30, 2009
	Average								Average
	Volume			Interest		Yield (1)			Volume			Interest		Yield (1)

ASSETS
Interest-earning assets:
Short-term investments and interest bearing deposits in other banks	$	914,471		$	7,405		1.08	%	$	835,769		$	7,341		1.17	%
Securities purchased under resale agreements		455,824			11,303		3.27	%		64,286			4,695		9.63	%
Investment securities (2)		2,291,588			50,656		2.96	%		2,546,488			88,472		4.65	%
Loans receivable		8,525,484			354,973		5.57	%		8,305,602			336,997		5.42	%
Loans receivable - covered		5,175,251			376,840		9.74	%		-			-		-
Federal Home Loan Bank and Federal Reserve Bank stocks		221,856			2,473		1.49	%		122,369			1,969		2.15	%
Total interest-earning assets		17,584,474			803,650		6.11	%		11,874,514			439,474		4.95	%

Noninterest-earning assets:
Cash and due from banks		547,403								120,493
Allowance for loan losses		(254,153	)							(210,015	)
Other assets		2,172,214								799,008
Total assets	$	20,049,938							$	12,584,000


LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Checking accounts		672,817			1,691		0.34	%		351,933			1,003		0.38	%
Money market accounts		3,868,588			23,405		0.81	%		1,826,626			18,664		1.37	%
Savings deposits		971,381			3,234		0.45	%		416,011			1,969		0.63	%
Time deposits		6,914,615			62,749		1.21	%		4,586,027			73,297		2.14	%
Federal Home Loan Bank advances		1,427,903			20,905		1.96	%		1,200,713			38,191		4.25	%
Securities sold under repurchase agreements		1,039,636			36,775		4.66	%		1,007,912			36,016		4.71	%
Subordinated debt and trust preferred securities		235,570			4,823		2.70	%		235,570			6,211		3.48	%
Other borrowings		60,552			1,902		4.14	%		2,889			8		0.37	%
Total interest-bearing liabilities		15,191,062			155,484		1.37	%		9,627,681			175,359		2.44	%

Noninterest-bearing liabilities:
Demand deposits		2,323,950								1,292,852
Other liabilities		213,236								125,183
Stockholders' equity		2,321,690								1,538,284
Total liabilities and stockholders' equity	$	20,049,938							$	12,584,000

Interest rate spread							4.74	%							2.51	%

Net interest income and net interest margin				$	648,166		4.93	%				$	264,115		2.97	%

Net interest income and net interest margin, adjusted (3)				$	551,080		4.19	%

(1) Annualized
(2) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.
(3) Amounts exclude the net impact of covered loan dispositions of $97.1 million.

EAST WEST BANCORP, INC.
QUARTERLY ALLOWANCE FOR LOAN LOSSES RECAP
(In thousands)
(unaudited)
	Quarter Ended
	9/30/2010			6/30/2010			3/31/2010			12/31/2009			9/30/2009
LOANS
Allowance balance, beginning of period	$	249,462		$	250,517		$	238,833		$	230,650		$	223,700
Allowance for unfunded loan commitments and letters of credit		1,133			(1,115	)		(808	)		(1,161	)		(1,051	)
Provision for loan losses		38,648			55,256			76,421			140,000			159,244

Net Charge-offs:
Real estate - single family		14,620			3,257			3,426			7,083			8,034
Real estate - multifamily		7,526			7,552			4,860			8,425			7,231
Real estate - commercial		11,779			11,836			8,201			13,305			23,105
Real estate - land		4,236			9,765			26,828			20,390			39,988
Real estate - residential construction		3,087			3,086			11,642			48,919			32,535
Real estate - commercial construction		977			8,548			2,029			21,355			23,051
Commercial		2,546			10,563			6,422			5,789			14,956
Trade finance		(7	)		(88	)		(54	)		2,569			2,256
Consumer		293			677			575			2,821			87
Total net charge-offs (recovery)		45,057			55,196			63,929			130,656			151,243
Allowance balance, end of period (3)	$	244,186		$	249,462		$	250,517		$	238,833		$	230,650

UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT:
Allowance balance, beginning of period	$	10,042		$	8,927		$	8,119		$	6,958		$	5,907
Provision for unfunded loan commitments and letters of credit		(1,133	)		1,115			808			1,161			1,051
Allowance balance, end of period	$	8,909		$	10,042		$	8,927		$	8,119		$	6,958
GRAND TOTAL, END OF PERIOD	$	253,095		$	259,504		$	259,444		$	246,952		$	237,608

Nonperforming assets to total assets (1)		0.96	%		0.98	%		0.89	%		0.91	%		1.84	%
Allowance for loan losses on non-covered loans to total gross non-covered loans at end of period		2.79	%		2.94	%		2.93	%		2.80	%		2.74	%
Allowance for loan losses on non-covered loans and unfunded loan commitments to total gross non-covered loans at end of period		2.89	%		3.06	%		3.03	%		2.90	%		2.82	%
Allowance on non-covered loans to non-covered nonaccrual loans at end of period		133.95	%		139.31	%		143.62	%		137.91	%		112.82	%
Nonaccrual loans to total loans (2)		1.32	%		1.30	%		1.27	%		1.23	%		2.43	%

(1) Nonperforming assets excludes covered loans and covered REOs. Total assets includes covered assets.
(2) Nonaccrual loans excludes covered loans. Total loans includes covered loans.
(3) Included in the allowance is $3.9 million related to covered loans. This allowance is related to drawdowns on commitments that were in existence
as of the acquisition dates and therefore, are covered under the loss share agreements with the FDIC. Allowance on these subsequent drawdowns is
accounted for as part of our general allowance.

EAST WEST BANCORP, INC
TOTAL NON-PERFORMING ASSETS, EXCLUDING COVERED ASSETS
(in thousands)
(unaudited)
AS OF SEPTEMBER 30, 2010
	Total Nonaccrual Loans
	90+ Days Delinquent		Under 90+ Days Delinquent		Total Nonaccrual Loans		REO Assets		Total Non-Performing Assets
Loan Type
Real estate - single family	$	5,359	$	-	$	5,359	$	947	$	6,306
Real estate - multifamily		10,386		6,263		16,649		3,088		19,737
Real estate - commercial		28,786		30,799		59,585		6,730		66,315
Real estate - land		32,443		14,760		47,203		4,680		51,883
Real estate - residential construction		2,068		-		2,068		92		2,160
Real estate - commercial construction		17,188		4,077		21,265		830		22,095
Commercial		6,653		20,084		26,737		223		26,960
Trade Finance		-		-		-		-		-
Consumer		427		91		518		346		864
Total	$	103,310	$	76,074	$	179,384	$	16,936	$	196,320

AS OF JUNE 30, 2010
	Total Nonaccrual Loans
	90+ Days Delinquent		Under 90+ Days Delinquent		Total Nonaccrual Loans		REO Assets		Total Non-Performing Assets
Loan Type
Real estate - single family	$	14,835	$	-	$	14,835	$	395	$	15,230
Real estate - multifamily		13,180		5,521		18,701		3,131		21,832
Real estate - commercial		15,778		2,569		18,347		7,047		25,394
Real estate - land		43,775		5,292		49,067		2,541		51,608
Real estate - residential construction		1,454		23,370		24,824		2,272		27,096
Real estate - commercial construction		22,997		449		23,446		830		24,276
Commercial		19,310		8,994		28,304		-		28,304
Trade Finance		-		-		-		-		-
Consumer		1,436		104		1,540		346		1,886
Total	$	132,765	$	46,299	$	179,064	$	16,562	$	195,626


AS OF DECEMBER 31, 2009
	Total Nonaccrual Loans
	90+ Days Delinquent		Under 90+ Days Delinquent		Total Nonaccrual Loans		REO Assets		Total Non-Performing Assets
Loan Type
Real estate - single family	$	3,262	$	-	$	3,262	$	264	$	3,526
Real estate - multifamily		10,631		-		10,631		2,118		12,749
Real estate - commercial		11,654		18,450		30,104		5,687		35,791
Real estate - land		27,179		42,666		69,845		4,393		74,238
Real estate - residential construction		17,179		-		17,179		540		17,719
Real estate - commercial construction		-		17,132		17,132		830		17,962
Commercial		8,002		16,765		24,767		-		24,767
Trade Finance		-		-		-		-		-
Consumer		114		146		260		-		260
Total	$	78,021	$	95,159	$	173,180	$	13,832	$	187,012

AS OF SEPTEMBER 30, 2009
	Total Nonaccrual Loans
	90+ Days Delinquent		Under 90+ Days Delinquent		Total Nonaccrual Loans		REO Assets		Total Non-Performing Assets
Loan Type
Real estate - single family	$	6,189	$	-	$	6,189	$	648	$	6,837
Real estate - multifamily		11,211		652		11,863		1,147		13,010
Real estate - commercial		17,381		16,040		33,421		2,330		35,751
Real estate - land		23,568		33,610		57,178		4,020		61,198
Real estate - residential construction		55,130		-		55,130		12,238		67,368
Real estate - commercial construction		10,784		-		10,784		3,680		14,464
Commercial		11,783		13,227		25,010		122		25,132
Trade Finance		3,666		1,785		5,451		-		5,451
Consumer		293		676		969		-		969
Total	$	140,005	$	65,990	$	205,995	$	24,185	$	230,180

EAST WEST BANCORP, INC.
GAAP TO NON-GAAP RECONCILIATION
(In thousands)
(Unaudited)

The tangible common equity to risk weighted asset and tangible common equity to tangible asset ratios is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance to provide additional disclosure. As the use of tangible common equity to tangible asset is more prevalent in the banking industry and with banking regulators and analysts, we have included the tangible common equity to risk-weighted assets and tangible common equity to tangible asset ratios.

	As of
	September 30, 2010
Stockholders' Equity	$	2,384,760
Less:
Preferred Equity		(370,882	)
Goodwill and other intangible assets		(421,309	)
Tangible common equity	$	1,592,569

Risk-weighted assets		11,785,125

Tangible Common Equity to risk-weighted assets		13.5	%

	As of
	September 30, 2010
Total assets	$	20,417,246
Less:
Goodwill and other intangible assets		(421,309	)
Tangible assets	$	19,995,937

Tangible common equity to tangible asset ratio		7.96	%

Operating noninterest income is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance to provide additional disclosure. There are noninterest income line items that are non-core in nature. Operating noninterest income excludes such non-core noninterest income line items. The Company believes that presenting the operating noninterest income provides more clarity to the users of financial statements regarding the core noninterest income amounts.

	Quarter Ended
	September 30, 2010
Noninterest income	$	29,315
Add:
Impairment loss on investment securities		888
Less:
Net gain on sale of investment securities		(2,791	)
Net gain on sale of loans		(4,177	)
Increase in FDIC indemnification asset		(5,826	)
Operating noninterest income (non-GAAP)	$	17,409


	Quarter Ended
	September 30, 2009
Noninterest income	$	(11,880	)
Add:
Impairment loss on investment securities		24,249
Less:
Net gain on sale of investment securities		(2,177	)
Net gain on sale of loans		(8	)
Operating noninterest income (non-GAAP)	$	10,184

EAST WEST BANCORP, INC.
GAAP TO NON-GAAP RECONCILIATION
(In thousands)
(Unaudited)

Operating noninterest expense is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance to provide additional disclosure. These are noninterest expense line items that are non-core in nature. Operating noninterest expense excludes such non-core noninterest expense line items. The Company believes that presenting the operating noninterest expense provides more clarity to the users of financial statements regarding the core noninterest expense amounts.

	Quarter Ended
($ in thousands)	September 30, 2010
Total noninterest expense:	$	99,945
Amounts to be reimbursed on covered assets (80% of actual expense amount)		7,834
Noninterest expense excluding reimbursement amounts	$	92,111

	Quarter Ended
($ in thousands)	June 30, 2010
Total noninterest expense:	$	125,318
Amounts to be reimbursed on covered assets (80% of actual expense amount)		19,103
Prepayment penalty for FHLB advances		3,900
Noninterest expense excluding reimbursement amounts and prepayment penalty for FHLB advances	$	102,315

EAST WEST BANCORP, INC.
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 to provide additional disclosure. The net interest margin includes amounts that are non-core in nature. As such, the Company believes that presenting the net interest income and net interest margin excluding such non-core items provides additional clarity to the users of financial statements regarding the core net interest income and net interest margin, comparability to prior periods and the ongoing performance of the Company.

	Quarter Ended September 30, 2010
	Average Volume		Interest			Yield (1)
Total interest-earning assets	$	17,692,002	$	231,400			5.19	%
Net interest income and net interest margin			$	182,805			4.10	%
Less net impact of covered loan dispositions				(5,511	)
Net interest income and net interest margin, excluding
net impact of covered loan dispositions			$	177,294			3.98	%



	Year to Date September 30, 2010
	Average Volume		Interest			Yield (1)
Total interest-earning assets	$	17,584,474	$	803,650			6.11	%
Net interest income and net interest margin			$	648,166			4.93	%
Less net impact of covered loan dispositions				(97,086	)
Net interest income and net interest margin, excluding
net impact of covered loan dispositions			$	551,080			4.19	%

(1) Annualized.