8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

July 23, 2020

EAST WEST BANCORP, INC.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)

000-24939

(Commission File Number)

95-4703316

(IRS Employer Identification No.)

135 N Los Robles Ave., 7th Floor, Pasadena, California 91101

(Address of principal executive offices) (Zip code)

(626) 768-6000

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: 

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 Par Value	EWBC	The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

On July 23, 2020, East West Bancorp, Inc. (the “Company”) announced, via press release, its financial results for the quarter ended June 30, 2020 (the “Press Release”). The Press Release is available on the Company’s website. The Press Release is “furnished” as Exhibit 99.1 to this Current Report on Form 8-K pursuant to General Instruction B.2 of Form 8-K and the information provided in Item 2.02 of this report, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities under that Section. The information provided in Item 2.02 of this report, including Exhibit 99.1, shall not be deemed incorporated by reference into any filings the Company has made or may make under the Securities Act of 1933 (the “Securities Act”) or the Exchange Act, except as otherwise expressly stated in such filing.

Item 7.01. Regulation FD Disclosure

On July 23, 2020, the Company will hold a conference call to discuss its financial results for the quarter ended June 30, 2020, including the Press Release and other matters relating to the Company. The Company has also made available on its website presentation materials containing certain historical and forward-looking information relating to the Company (the “Presentation Materials”). The Presentation Materials are furnished as Exhibit 99.2 and are incorporated by reference in this Item 7.01. All information in Exhibit 99.2 is presented as of the particular date or dates referenced therein, and the Company does not undertake any obligation to, and disclaims any duty to, update any of the information provided. The information provided in Item 7.01 of this report, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that Section, nor shall the information or Exhibit 99.2 be deemed incorporated by reference in any filings the Company has made or may make under the Exchange Act or the Securities Act, except as otherwise expressly stated in such filing.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

99.1	Press Release, dated July 23, 2020.
99.2	Presentation Presentation Materials, dated July 23, 2020.
104	Cover Page Interactive Data (formatted as Inline XBRL). Filed herewith.

2

SIGNATURE

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	EAST WEST BANCORP, INC.
Date: July 23, 2020	By:	/s/ Irene H. Oh
		Irene H. Oh
		Executive Vice President and Chief Financial Officer

3

EX-99.1

	Exhibit 99.1
	East West Bancorp, Inc.
	135 N. Los Robles Ave., 7th Fl.
	Pasadena, CA 91101
	Tel. 626.768.6000

NEWS RELEASE

FOR INVESTOR INQUIRIES, CONTACT:
Irene Oh	Julianna Balicka
Chief Financial Officer	Director of Strategy and Corporate Development
T: (626) 768-6360	T: (626) 768-6985
E: irene.oh@eastwestbank.com	E: julianna.balicka@eastwestbank.com

EAST WEST BANCORP REPORTS NET INCOME FOR SECOND QUARTER 2020

OF $99.4 MILLION AND DILUTED EARNINGS PER SHARE OF $0.70

Pasadena, California— July 23, 2020 – East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, the financial bridge between the United States and Greater China, today reported its financial results for the second quarter of 2020. For the second quarter of 2020, net income was $99.4 million or $0.70 per diluted share. Second quarter 2020 return on average assets was 0.83% and return on average equity was 8.02%.

“East West is steadfast in its commitment to support our existing and new customers and the communities we operate in. Despite the challenges presented by adapting to the COVID-19 pandemic, total loans grew $1.3 billion, or 15% annualized, to a record $37.2 billion as of June 30, 2020 from $35.9 billion as of March 31, 2020,” stated Dominic Ng, Chairman and Chief Executive Officer of East West.

“During the second quarter, East West funded $1.8 billion of Paycheck Protection Program loans for over 7,200 customers. In addition, residential mortgage loans grew by 12% annualized and total commercial real estate loans grew by 9% annualized. This well-balanced loan growth demonstrates the strength of East West’s business model and our ability to generate responsible and attractive growth, even under difficult economic conditions.”

“Total deposits grew $2.0 billion, or 21% annualized, to a record $40.7 billion as of June 30, 2020 from $38.7 billion as of March 31, 2020,” continued Ng. “Second quarter 2020 deposit growth was driven by strong growth in noninterest-bearing demand and in low-cost money market deposits. Further, we proactively reduced higher-cost deposit balances. Overall, the average cost of deposits declined by 35 basis points quarter-over-quarter.”

“East West’s adjusted¹ pre-tax, pre-provision profitability ratio remained strong at over 2% for the second quarter of 2020, despite the very low interest rate environment. During the quarter, we further strengthened our allowance for loan losses coverage to 1.70% of our loan portfolio, to reflect a more adverse macroeconomic outlook,” added Ng.

“We added to our already substantial levels of liquidity by participating in the Paycheck Protection Program Liquidity Facility, bolstering our balance sheet capacity to serve our customers. Quarter-over-quarter, our capital increased and our high capital ratios position us in a place of strength,” concluded Ng. “I wish to thank all of our associates for all of their hard work, dedication and adaptability in serving our customers in these unprecedented and challenging times.”

¹ See reconciliation of GAAP to non-GAAP financial measures in Table 14.

1

SUMMARY OF THE QUARTER

•Second Quarter Earnings — Second quarter 2020 net income was $99.4 million and diluted earnings per share (“EPS”) were $0.70, compared to first quarter 2020 net income of $144.8 million and diluted EPS of $1.00.

•Record Loans — Total loans of $37.2 billion as of June 30, 2020 increased by $1.3 billion, or 15% annualized, from $35.9 billion as of March 31, 2020. As of June 30, 2020, Paycheck Protection Program (“PPP”) loans were $1.7 billion.

Second quarter 2020 average loans of $37.1 billion grew $2.0 billion, or 23% linked quarter annualized. Loan growth during the quarter came from each of East West’s major loan portfolios, with the strongest growth from commercial and industrial (“C&I”), driven by PPP loan growth. Commercial real estate and residential mortgage loans contributed to the growth during the quarter as well.

•Record Deposits— Total deposits of $40.7 billion as of June 30, 2020 increased by $2.0 billion, or 21% annualized, from $38.7 billion as of March 31, 2020.

Second quarter 2020 average deposits of $39.9 billion grew $2.4 billion, or 26% linked quarter annualized, primarily driven by growth in noninterest-bearing demand accounts. Average non-interest bearing deposits increased to 34% of total deposits in the second quarter, up from 30% in the first quarter of 2020. Deposit growth in the second quarter was attributable to strong growth from consumer and small business commercial customers, as well as to PPP funds held in deposit accounts, partially offset by the intentional run-off of higher-cost balances.

•Balance Sheet Management – During the second quarter of 2020, the Company participated in the PPP Liquidity Facility (“PPPLF”), adding $1.4 billion to low-cost funding at a rate of 35 basis points. Also during the second quarter, East West prepaid $150.0 million of repurchase agreements and incurred a debt extinguishment cost of $8.7 million.

•Net Interest Income and Net Interest Margin — Second quarter 2020 net interest income (“NII”) was $343.8 million, a decrease of $18.9 million or 5% from first quarter 2020 NII of $362.7 million. Second quarter 2020 net interest margin (“NIM”) was 3.04%, a 40 basis point compression from 3.44% in the first quarter of 2020. The changes in the NII and in the NIM reflect the quarter-over-quarter drop in the average Prime and LIBOR interest rates.

•Noninterest Expense and Efficiency Ratio — Second quarter 2020 noninterest expense totaled $187.7 million, including $153.3 million of adjusted² noninterest expense. Adjusted noninterest expense of $153.3 million decreased by $7.3 million, or 5%, from $160.6 million in the first quarter of 2020. Correspondingly, the adjusted² efficiency ratio was 38.1% in the second quarter, compared to 38.5% in the first quarter.

•Asset QualityMetrics — The allowance for loan losses (“ALLL”) totaled $632.1 million, or 1.70% of loans held-for-investment (“HFI”), as of June 30, 2020, compared to $557.0 million, or 1.55% of loans HFI, as of March 31, 2020.

Second quarter 2020 provision for credit losses was $102.4 million, compared to $73.9 million for the first quarter of 2020. Second quarter 2020 net charge-offs were $19.2 million, or annualized 0.21% of average loans HFI, compared to annualized 0.01% of average loans HFI in the first quarter of 2020. Nonperforming assets were $202.2 million, or 0.41% of total assets, as of June 30, 2020, compared to 0.33% of total assets as of March 31, 2020.

•Capital Levels— Capital levels for East West are strong. As of June 30, 2020, stockholders’ equity was $5.0 billion, or $35.25 per share. Tangible equity³ per common share was $31.86 as of June 30, 2020, an increase of 2% from $31.27 as of March 31, 2020. As of June 30, 2020, the tangible equity to tangible assets ratio³ was 9.2%, the common equity tier 1 (“CET1”) capital ratio was 12.7%, and the total risk-based capital ratio was 14.4%.

² See reconciliation of GAAP to non-GAAP financial measures in Table 14.

³ See reconciliation of GAAP to non-GAAP financial measures in Table 15.

2

OPERATING RESULTS

Second Quarter 2020 Compared to First Quarter 2020

Net Interest Income and Net Interest Margin

Net interest income totaled $343.8 million, a decrease of 5% from $362.7 million. Net interest margin of 3.04% decreased by 40 basis points from 3.44%.

•Interest and fees earned on PPP loans contributed $21.3 million to interest income, and interest expense paid on the related PPPLF was $0.5 million.

•Average interest-earning assets of $45.4 billion grew $3.1 billion, or 29% linked quarter annualized. Average loan growth of $2.0 billion, or 23% linked quarter annualized, was mainly due to growth from PPP loans. The average balance of PPP loans was $1.5 billion in the second quarter of 2020.

•Average interest-bearing deposits were essentially flat at $26.4 billion. Average noninterest-bearing deposits of $13.5 billion grew $2.4 billion, or 87% linked quarter annualized. The average balance of the PPPLF, classified as long-term debt, was $530.3 million.

•The average loan yield contracted by 73 basis points to 3.98%, down from 4.71%, reflecting materially lower interest rates during the second quarter.

•The yield on average interest-earning assets contracted by 73 basis points to 3.53%, down from 4.26%.

•The average cost of interest-bearing deposits decreased by 46 basis points to 0.71%, down from 1.17%. The average cost of deposits decreased by 35 basis points to 0.47%, down from 0.82%.

Noninterest Income

Noninterest income totaled $58.6 million, an 8% increase from $54.0 million.

•Gains on sales of available-for-sale debt securities were $9.6 million, driven by $131.6 million in sales of municipal bonds during the second quarter.

•Lending fees of $21.9 million increased by $6.2 million, primarily reflecting an increase in the valuation of warrants received as part of lending relationships.

•The largest linked-quarter decreases in noninterest income were a $3.3 million decrease in foreign exchange income and a $2.3 million decrease in wealth management fees, both reflecting a decrease in customer-driven transactions during the second quarter.

Noninterest Expense

Noninterest expense totaled $187.7 million, a 5% increase from $178.9 million.

•Second quarter noninterest expense consisted of $153.3 million of adjusted noninterest expense, $24.8 million in amortization of tax credit and other investments, $8.7 million of debt extinguishment cost, and $0.9 million in amortization of core deposit intangibles.

•During the second quarter, the Company prepaid $150.0 million of repurchase agreements and incurred a debt extinguishment cost of $8.7 million.

•Adjusted noninterest expense of $153.3 million decreased by $7.3 million, or 5%, from $160.6 million. The largest linked-quarter change was a $5.0 million decrease in compensation and employee benefits expense, followed by a $1.9 million decrease in other operating expenses and a $1.7 million decrease in legal expense.

•The adjusted efficiency ratio was 38.1% in the second quarter, compared to 38.5% in the first quarter.

3

TAX RELATED ITEMS

Second quarter 2020 income tax expense was $12.9 million and the effective tax rate was 12%, compared to income tax expense of $19.2 million and an effective tax rate of 12% for the first quarter of 2020.

ASSET QUALITY

The allowance for loan losses totaled $632.1 million, or 1.70% of loans HFI, as of June 30, 2020, compared to $557.0 million, or 1.55% of loans HFI, as of March 31, 2020.

1

•Second quarter 2020 provision for credit losses was $102.4 million, compared to $73.9 million for the first quarter of 2020, and $19.2 million for the second quarter of 2019. Second quarter 2020 provision for credit losses was primarily driven by a more adverse macroeconomic forecast as of June 30, 2020, relative to March 31, 2020, as well as loan risk rating downgrades.

•Second quarter 2020 net charge-offs were $19.2 million, or annualized 0.21% of average loans HFI, compared to first quarter 2020 net charge-offs of $0.9 million, or annualized 0.01% of average loans HFI, and net charge-offs of $7.6 million, or annualized 0.09% of average loans HFI, for the second quarter of 2019. Second quarter 2020 net charge-offs were largely from loans in the oil and gas industry.

•Nonperforming assets were $202.2 million, or 0.41% of total assets, as of June 30, 2020, compared to nonperforming assets of $150.9 million, or 0.33% of total assets, as of March 31, 2020, and $119.3 million, or 0.28% of total assets, as of June 30, 2019. The increase in nonperforming assets was largely due to inflows to nonaccrual status of oil and gas and commercial real estate loans, partially offset by pay-offs and charge-offs of C&I loans.

CAPITAL STRENGTH

Capital levels for East West are strong. The following table presents the regulatory capital ratios as of June 30, 2020, March 31, 2020, and June 30, 2019.

EWBC Regulatory Capital Metrics	Basel III
($ in millions)	June 30, 2020 (a)			March 30, 2020 (a)			June 30, 2019			Minimum Capital Ratio		Well Capitalized Ratio		Minimum Capital Ratio + Conservation Buffer (b)
Risk-Based Capital Ratios:
CET 1 capital ratio	12.7		%	12.4		%	12.5		%	4.5	%	6.5	%	7.0	%
Tier 1 capital ratio	12.7		%	12.4		%	12.5		%	6.0	%	8.0	%	8.5	%
Total capital ratio	14.4		%	13.9		%	13.9		%	8.0	%	10.0	%	10.5	%
Leverage ratio	9.7		%	10.2		%	10.4		%	4.0	%	5.0	%	4.0	%
Risk-Weighted Assets (“RWA”) (c)	$	36,199		$	36,548		$	34,154		N/A		N/A		N/A

N/A Not applicable.

(a)The Company has elected to use the 2020 CECL transition provision in the calculation of its June 30, 2020 and March 31, 2020 regulatory capital ratios. The Company’s June 30, 2020 regulatory capital ratios and RWA are preliminary.

(b)An additional 2.5% capital conservation buffer above the minimum capital ratios are required in order to avoid limitations on distributions, including dividend payments and certain discretionary bonus payments to executive officers.

(c)Under regulatory guidelines, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories based on the nature of the obligor, or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar value in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total RWA.

4

DIVIDEND PAYOUT AND CAPITAL ACTIONS

East West’s Board of Directors has declared third quarter 2020 dividends for the Company’s common stock. The common stock cash dividend of $0.275 per share is payable on August 17, 2020 to shareholders of record on August 4, 2020.

On March 3, 2020, East West’s Board of Directors authorized the repurchase of up to $500 million of East West’s common stock. East West did not repurchase any shares during the second quarter of 2020 under this authorization.

Conference Call

East West will host a conference call to discuss second quarter 2020 earnings with the public on Thursday, July 23, 2020 at 8:30 a.m. PT/11:30 a.m. ET. The public and investment community are invited to listen as management discusses second quarter 2020 results and operating developments.

•The following dial-in information is provided for participation in the conference call: calls within the U.S. – (877) 506-6399; calls within Canada – (855) 669-9657; international calls – (412) 902-6699.

•A presentation to accompany the earnings call will be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.

•A listen-only live broadcast of the call will also be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.

•A replay of the conference call will be available on July 23, 2020 at 11:30 a.m. Pacific Time through August 23, 2020. The replay numbers are: within the U.S. – (877) 344-7529; within Canada – (855) 669-9658; International calls – (412) 317-0088; and the replay access code is: 10145315.

About East West

East West Bancorp, Inc. is a publicly owned company with total assets of $49.4 billion 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 banks headquartered in California, operating over 125 locations in the United States and Greater China. U.S. markets include California, Georgia, Massachusetts, Nevada, New York, Texas and Washington. In Greater China, East West’s presence includes full service branches in Hong Kong, Shanghai, Shantou and Shenzhen, and representative offices in Beijing, Chongqing, Guangzhou, and Xiamen. For more information on East West, visit the Company’s website at www.eastwestbank.com.

5

Forward-Looking Statements

Certain matters set forth herein (including any exhibits hereto) constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to our current business plans and expectations regarding future operating results. Forward-looking statements may include, but are not limited to, the use of forward-looking language, such as “likely result in,” “expects,” “anticipates,” “estimates,” “forecasts,” “projects,” “intends to,” “assumes,” or may include other similar words or phrases, such as “believes,” “plans,” “trend,” “objective,” “continues,” “remains,” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” “may,” “might,” “can,” or similar verbs, and the negative thereof. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to, the impact of disease pandemics, such as the worldwide spread of COVID-19, on us, our operations and our customers and employees; and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address it, which may precipitate or exacerbate one or more of the below-mentioned and/or other risks, and significantly disrupt or prevent us from operating its business in the ordinary course for an extended period; changes in governmental policy and regulation, including measures taken in response to economic, business, political and social conditions, such as the Small Business Administration’s Payment Protection Program, the Board of Governors of the Federal Reserve Board System’s (the “Federal Reserve”) efforts to provide liquidity to the U.S. financial system, including changes in government interest rate policies, and to provide credit to private commercial and municipal borrowers, and other program designed to address the effects of the COVID-19 pandemic, as well as the resulting effect of all such items on our operations, liquidity and capital position, and on the financial condition of our borrowers and other customers; changes in the U.S. economy, including an economic slowdowns or recession, inflation, deflation, employment levels, rate of growth and general business conditions; the changes and effects thereof in trade, monetary and fiscal policies and laws, including the ongoing trade dispute between the United States (“U.S.”) and the People’s Republic of China; fluctuations in our stock price; changes in income tax laws and regulations; our ability to compete effectively against other financial institutions in our banking markets; success and timing of our business strategies; our ability to retain key officers and employees; impact on our funding costs, net interest income and net interest margin from changes in key variable market interest rates, competition, regulatory requirements and our product mix; changes in our costs of operation, compliance and expansion; our ability to adopt and successfully integrate new technologies into our business in a strategic manner; impact of benchmark interest rate reform in the U.S. that resulted in the Secured Overnight Financing Rate selected as the preferred alternative reference rate to the London Interbank Offered Rate; impact of failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business, including as a result of cyber attacks; and other similar matters which could result in, among other things, confidential and/or proprietary information being disclosed or misused; adequacy of our risk management framework, disclosure controls and procedures and internal control over financial reporting; future credit quality and performance, including our expectations regarding future credit losses and allowance levels; impact of adverse changes to our credit ratings from major credit rating agencies; impact of adverse judgments or settlements in litigation; changes in the commercial and consumer real estate markets; changes in consumer spending and savings habits; impact on our international operations due to political developments, disease pandemics, wars or other hostilities that may disrupt or increase volatility in securities or otherwise affect economic conditions; changes in laws or the regulatory environment including regulatory reform initiatives and policies of the U.S. Department of Treasury, the Federal Reserve, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the U.S. Securities and Exchange Commission, the Consumer Financial Protection Bureau and the California Department of Business Oversight — Division of Financial Institutions; impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on our business, business practices, cost of operations and executive compensation; heightened regulatory and governmental oversight and scrutiny of our business practices, including dealings with consumers; impact of reputational risk from negative publicity, fines and penalties and other negative consequences from regulatory violations and legal actions and from our interactions with business partners, counterparties, service providers and other third parties; impact of regulatory enforcement actions; changes in accounting standards as may be required by the Financial Accounting Standards Board or other regulatory agencies and their impact on critical accounting policies and assumptions; impact of other potential federal tax changes and spending cuts; our capital requirements and our ability to generate capital internally or raise capital on favorable terms; impact on our liquidity due to changes in our ability to receive dividends from our subsidiaries; any future strategic acquisitions or divestitures; continuing consolidation in the financial services industry; changes in the equity and debt securities markets; fluctuations in foreign currency exchange rates; a recurrence of significant turbulence or disruption in the capital or financial markets, which could result in, among other things, a reduction in the availability of funding or increases in funding costs, a reduction in investor demand for mortgage loans and declines in asset values and/or recognition of other-than-temporary impairment on securities held in our available-for-sale debt securities portfolio; impact of natural or man-made disasters or calamities, such as wildfires or conflicts or other events that may directly or indirectly result in a negative impact on our financial performance; and other factors set forth in our public reports including our Annual Report on Form 10-K for the year ended December 31, 2019 and our Quarterly Reports on Form 10-Q, and particularly the discussion of risk factors within those documents. In addition to the risk factors enumerated above, the economic impact of the COVID-19 pandemic could cause actual outcome to differ, possibly materially, from our forward-looking statement due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control. Given the ongoing and dynamic nature of the circumstances, it is difficult to predict the full impact of the COVID-19 pandemic on our business. The extent to which the COVID-19 pandemic impacts us will depend on future developments that are uncertain and unpredictable, including the scope, severity and duration of the pandemic and its impact on our customers, the actions taken by governmental authorities in response to the pandemic as well as its impact on global and regional economies, and the pace of recovery when the COVID-19 pandemic subsides, among others. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, our results could differ materially from those expressed in, implied or projected by such forward-looking statements. We assume no obligation to update or revise such forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

6

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
($ and shares in thousands, except per share data)
(unaudited)
Table 1
											June 30, 2020 % or Basis Point Change
		June 30, 2020			March 31, 2020			June 30, 2019			Qtr-o-Qtr			Yr-o-Yr
Assets
	Cash and due from banks	$	602,974		$	427,415		$	425,949		41.1	%		41.6	%
	Interest-bearing cash with banks	3,930,528			2,652,627			3,195,665			48.2			23.0
	Cash and cash equivalents	4,533,502			3,080,042			3,621,614			47.2			25.2
	Interest-bearing deposits with banks	531,591			293,509			150,273			81.1			253.8
	Securities purchased under resale agreements (“resale agreements”) (1)	1,260,000			860,000			1,010,000			46.5			24.8
	Available-for-sale (“AFS”) debt securities (amortized cost of $3,823,714 and $3,660,413 as of June 30, 2020 and March 31, 2020, respectively)	3,884,574			3,695,943			2,592,913			5.1			49.8
	Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stock	78,963			78,745			78,093			0.3			1.1
	Loans held-for-sale (“HFS”)	3,875			1,594			3,879			143.1			(0.1)
	Loans held-for-investment (''HFI'') (net of allowance for loan losses of $632,071, $557,003 (2) and $330,625)	36,597,341			35,336,390			33,399,752			3.6			9.6
	Investments in qualified affordable housing partnerships, net	201,888			198,653			198,466			1.6			1.7
	Investments in tax credit and other investments, net	251,318			268,330			210,387			(6.3)			19.5
	Goodwill	465,697			465,697			465,697			—			—
	Operating lease right-of-use assets	94,898			101,381			109,032			(6.4)			(13.0)
	Other assets	1,503,946			1,568,261			1,052,252			(4.1)			42.9
	Total assets	$	49,407,593		$	45,948,545		$	42,892,358		7.5	%		15.2	%
Liabilities and Stockholders’ Equity
	Deposits	$	40,672,678		$	38,686,958		$	36,477,542		5.1	%		11.5	%
	Short-term borrowings	52,851			66,924			19,972			(21.0)			164.6
	Federal funds purchased	200,000			—			—			100.0			100.0
	FHLB advances	656,759			646,336			745,074			1.6			(11.9)
	Securities sold under repurchase agreements (“repurchase agreements”) (1)	300,000			450,000			50,000			(33.3)			500.0
	Long-term debt and finance lease liabilities (3)	1,580,442			152,162			152,506			938.7			936.3
	Operating lease liabilities	102,708			109,356			117,448			(6.1)			(12.6)
	Accrued expenses and other liabilities	854,912			933,824			595,223			(8.5)			43.6
	Total liabilities	44,420,350			41,045,560			38,157,765			8.2			16.4
	Stockholders’ equity (2)	4,987,243			4,902,985			4,734,593			1.7			5.3
	Total liabilities and stockholders’ equity	$	49,407,593		$	45,948,545		$	42,892,358		7.5	%		15.2	%
	Book value per common share	$	35.25		$	34.67		$	32.53		1.7	%		8.4	%
	Tangible equity (4) per common share	$	31.86		$	31.27		$	29.20		1.9			9.1
	Number of common shares at period-end	141,486			141,435			145,547			0.0			(2.8)
	Tangible equity to tangible assets ratio (4)	9.21		%	9.73		%	10.02		%	(52)		bps	(81)		bps

(1)Resale and repurchase agreements are reported net when the transactions are eligible for netting under Accounting Standards Codification (“ASC”) 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. There was no netting of repurchase agreements against resale agreements as of June 30, 2020 and March 31, 2020. $400 million of gross repurchase agreements were eligible for netting against gross resale agreements as of June 30, 2019.

(2)OnJanuary 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments using the modified retrospective approach. The March 31, 2020 Allowance for loan loss reflects an increase of $125.2 million as a result of adopting ASU 2016-13. We recorded an after-tax decrease to opening retained earnings of $98.0 million as of January 1, 2020.

(3)Includes $1.43 billion of advances from the Paycheck Protection Program Liquidity Facility (“PPPLF”).

(4)See reconciliation of GAAP to non-GAAP financial measures in Table 15.

7

EAST WEST BANCORP, INC. AND SUBSIDIARIES
TOTAL LOANS AND DEPOSITS DETAIL
($ in thousands)
(unaudited)
Table 2
								June 30, 2020 % Change
		June 30, 2020		March 31, 2020		June 30, 2019		Qtr-o-Qtr		Yr-o-Yr
Loans:
Commercial:
	Commercial and industrial (“C&I”) (1)	$	13,422,691	$	12,590,764	$	12,402,967	6.6	%	8.2	%
	Commercial real estate (“CRE”):
	CRE	10,902,114		10,682,242		9,663,624		2.1		12.8
	Multifamily residential	3,032,385		2,902,601		2,577,154		4.5		17.7
	Construction and land	567,716		606,209		674,798		(6.3)		(15.9)
	Total CRE	14,502,215		14,191,052		12,915,576		2.2		12.3
Consumer:
	Residential mortgage:
	Single-family residential	7,660,094		7,403,723		6,494,882		3.5		17.9
	Home equity lines of credit (“HELOCs”)	1,461,951		1,452,862		1,575,150		0.6		(7.2)
	Total residential mortgage	9,122,045		8,856,585		8,070,032		3.0		13.0
	Other consumer	182,461		254,992		341,802		(28.4)		(46.6)
Total loans HFI (2)		37,229,412		35,893,393		33,730,377		3.7		10.4
Loans HFS		3,875		1,594		3,879		143.1		(0.1)
	Total loans (2)	37,233,287		35,894,987		33,734,256		3.7		10.4
Allowance for loan losses		(632,071)		(557,003)		(330,625)		13.5		91.2
	Net loans (2)	$	36,601,216	$	35,337,984	$	33,403,631	3.6		9.6
Deposits:
	Noninterest-bearing demand	$	13,940,420	$	11,833,397	$	10,599,088	17.8	%	31.5	%
	Interest-bearing checking	5,280,887		5,467,508		5,083,675		(3.4)		3.9
	Money market	10,002,624		9,302,246		8,009,325		7.5		24.9
	Savings	2,186,199		2,117,274		2,188,738		3.3		(0.1)
	Time deposits	9,262,548		9,966,533		10,596,716		(7.1)		(12.6)
	Total deposits	$	40,672,678	$	38,686,958	$	36,477,542	5.1	%	11.5	%

(1)Includes $1.75 billion of Paycheck Protection Program (“PPP”) loans as of June 30, 2020.

(2)Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(72.1) million, $(50.3) million, and $(43.8) million as of June 30, 2020, March 31, 2020 and June 30, 2019, respectively. Net origination fees related to PPP loans were $(25.4) million as of June 30, 2020.

8

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
($ and shares in thousands, except per share data)
(unaudited)
Table 3
		Three Months Ended						June 30, 2020 % Change
		June 30, 2020		March 31, 2020		June 30, 2019		Qtr-o-Qtr		Yr-o-Yr
Interest and dividend income (1)		$	398,776	$	449,190	$	474,844	(11.2)	%	(16.0)	%
Interest expense		55,001		86,483		107,518		(36.4)		(48.8)
Net interest income before provision for credit losses		343,775		362,707		367,326		(5.2)		(6.4)
Provision for credit losses		102,443		73,870		19,245		38.7		432.3
Net interest income after provision for credit losses		241,332		288,837		348,081		(16.4)		(30.7)
Noninterest income		58,637		54,049		52,759		8.5		11.1
Noninterest expense		187,696		178,876		177,663		4.9		5.6
Income before income taxes		112,273		164,010		223,177		(31.5)		(49.7)
Income tax expense		12,921		19,186		72,797		(32.7)		(82.3)
Net income		$	99,352	$	144,824	$	150,380	(31.4)	%	(33.9)	%
Earnings per share (“EPS”)
- Basic		$	0.70	$	1.00	$	1.03	(29.8)	%	(32.0)	%
- Diluted		$	0.70	$	1.00	$	1.03	(29.7)		(32.0)
Weighted-average number of shares outstanding
- Basic		141,486		144,814		145,546		(2.3)	%	(2.8)	%
- Diluted		141,827		145,285		146,052		(2.4)		(2.9)
		Three Months Ended						June 30, 2020 % Change
		June 30, 2020		March 31, 2020		June 30, 2019		Qtr-o-Qtr		Yr-o-Yr
Noninterest income:
	Lending fees	$	21,946	$	15,773	$	16,423	39.1	%	33.6	%
	Deposit account fees	10,872		10,447		9,607		4.1		13.2
	Foreign exchange income	4,562		7,819		7,286		(41.7)		(37.4)
	Wealth management fees	3,091		5,353		3,800		(42.3)		(18.7)
	Interest rate contracts and other derivative income	6,107		7,073		10,398		(13.7)		(41.3)
	Net gains on sales of loans	132		950		15		(86.1)		780.0
	Gains on sales of AFS debt securities	9,640		1,529		1,447		530.5		566.2
	Other investment income	966		1,921		706		(49.7)		36.8
	Other income	1,321		3,184		3,077		(58.5)		(57.1)
Total noninterest income		$	58,637	$	54,049	$	52,759	8.5	%	11.1	%
Noninterest expense:
	Compensation and employee benefits	$	96,955	$	101,960	$	100,531	(4.9)	%	(3.6)	%
	Occupancy and equipment expense	16,217		17,076		17,362		(5.0)		(6.6)
	Deposit insurance premiums and regulatory assessments	3,700		3,427		2,919		8.0		26.8
	Legal expense	1,530		3,197		2,355		(52.1)		(35.0)
	Data processing	4,480		3,826		3,460		17.1		29.5
	Consulting expense	1,413		1,217		2,069		16.1		(31.7)
	Deposit related expense	3,353		3,563		3,338		(5.9)		0.4
	Computer software expense	7,301		6,166		6,211		18.4		17.5
	Other operating expense	19,248		21,119		22,679		(8.9)		(15.1)
	Amortization of tax credit and other investments	24,759		17,325		16,739		42.9		47.9
	Repurchase agreements’ extinguishment cost	8,740		—		—		100.0		100.0
Total noninterest expense		$	187,696	$	178,876	$	177,663	4.9	%	5.6	%

(1)Includes $21.3 million of interest income related to PPP loans for the three months ended June 30, 2020.

9

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
($ and shares in thousands, except per share data)
(unaudited)
Table 4
		Six Months Ended				June 30, 2020 % Change
		June 30, 2020		June 30, 2019		Yr-o-Yr
Interest and dividend income (1)		$	847,966	$	938,155	(9.6)	%
Interest expense		141,484		208,368		(32.1)
Net interest income before provision for credit losses		706,482		729,787		(3.2)
Provision for credit losses		176,313		41,824		321.6
Net interest income after provision for credit losses		530,169		687,963		(22.9)
Noninterest income		112,686		94,890		18.8
Noninterest expense		366,572		364,585		0.5
Income before income taxes		276,283		418,268		(33.9)
Income tax expense		32,107		103,864		(69.1)
Net income		$	244,176	$	314,404	(22.3)	%
EPS
- Basic		$	1.71	$	2.16	(21.1)	%
- Diluted		$	1.70	$	2.15	(21.0)
Weighted-average number of shares outstanding
- Basic		143,150		145,402		(1.5)	%
- Diluted		143,560		146,016		(1.7)
		Six Months Ended				June 30, 2020 % Change
		June 30, 2020		June 30, 2019		Yr-o-Yr
Noninterest income:
	Lending fees	$	37,719	$	31,392	20.2	%
	Deposit account fees	21,319		19,075		11.8
	Foreign exchange income	12,381		12,301		0.7
	Wealth management fees	8,444		7,574		11.5
	Interest rate contracts and other derivative income	13,180		13,614		(3.2)
	Net gains on sales of loans	1,082		930		16.3
	Gains on sales of AFS debt securities	11,169		3,008		271.3
	Other investment income	2,887		1,908		51.3
	Other income	4,505		5,088		(11.5)
Total noninterest income		$	112,686	$	94,890	18.8	%
Noninterest expense:
	Compensation and employee benefits	$	198,915	$	202,830	(1.9)	%
	Occupancy and equipment expense	33,293		34,680		(4.0)
	Deposit insurance premiums and regulatory assessments	7,127		6,007		18.6
	Legal expense	4,727		4,580		3.2
	Data processing	8,306		6,617		25.5
	Consulting expense	2,630		4,128		(36.3)
	Deposit related expense	6,916		6,842		1.1
	Computer software expense	13,467		12,289		9.6
	Other operating expense	40,367		44,968		(10.2)
	Amortization of tax credit and other investments	42,084		41,644		1.1
	Repurchase agreements’ extinguishment cost	8,740		—		100.0
Total noninterest expense		$	366,572	$	364,585	0.5	%

(1)Includes $21.3 million of interest income related to PPP loans for the six months ended June 30, 2020.

10

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED AVERAGE BALANCES
($ in thousands)
(unaudited)
Table 5
		Three Months Ended						June 30, 2020 % Change				Six Months Ended				June 30, 2020 % Change
		June 30, 2020		March 31, 2020		June 30, 2019		Qtr-o-Qtr		Yr-o-Yr		June 30, 2020		June 30, 2019		Yr-o-Yr
Loans:
Commercial:
	C&I (1)	$	13,560,719	$	12,166,178	$	12,003,277	11.5	%	13.0	%	$	12,863,449	$	11,925,003	7.9	%
	CRE:
	CRE	10,812,399		10,485,683		9,501,566		3.1		13.8		10,649,041		9,439,946		12.8
	Multifamily residential	2,987,311		2,889,844		2,510,271		3.4		19.0		2,938,577		2,504,320		17.3
	Construction and land	594,965		641,079		675,967		(7.2)		(12.0)		618,022		630,459		(2.0)
	Total CRE	14,394,675		14,016,606		12,687,804		2.7		13.5		14,205,640		12,574,725		13.0
Consumer:
	Residential mortgage:
	Single-family residential	7,506,546		7,257,367		6,373,715		3.4		17.8		7,381,956		6,263,246		17.9
	HELOCs	1,444,933		1,442,450		1,607,311		0.2		(10.1)		1,443,692		1,629,637		(11.4)
	Total residential mortgage	8,951,479		8,699,817		7,981,026		2.9		12.2		8,825,648		7,892,883		11.8
	Other consumer	234,900		271,367		309,267		(13.4)		(24.0)		253,134		307,033		(17.6)
	Total loans (2)	$	37,141,773	$	35,153,968	$	32,981,374	5.7	%	12.6	%	$	36,147,871	$	32,699,644	10.5	%
Interest-earning assets		$	45,413,242	$	42,362,531	$	39,461,101	7.2	%	15.1	%	$	43,887,886	$	39,105,030	12.2	%
Total assets		$	48,228,914	$	44,755,509	$	41,545,441	7.8	%	16.1	%	$	46,492,211	$	41,144,152	13.0	%
Deposits:
	Noninterest-bearing demand	$	13,534,873	$	11,117,710	$	10,237,868	21.7	%	32.2	%	$	12,326,291	$	10,155,079	21.4	%
	Interest-bearing checking	4,687,178		5,001,672		5,221,110		(6.3)		(10.2)		4,844,425		5,245,845		(7.7)
	Money market	9,893,816		9,013,381		7,856,055		9.8		25.9		9,453,599		7,967,831		18.6
	Savings	2,149,965		2,076,270		2,106,626		3.5		2.1		2,113,118		2,099,058		0.7
	Time deposits	9,634,696		10,264,007		9,904,726		(6.1)		(2.7)		9,949,351		9,658,181		3.0
	Total deposits	$	39,900,528	$	37,473,040	$	35,326,385	6.5	%	12.9	%	$	38,686,784	$	35,125,994	10.1	%
Interest-bearing liabilities		$	28,362,618	$	27,593,341	$	25,860,541	2.8	%	9.7	%	$	27,977,979	$	25,657,814	9.0	%
Stockholders’ equity		$	4,982,446	$	5,022,005	$	4,684,348	(0.8)	%	6.4	%	$	5,002,226	$	4,611,231	8.5	%

(1)Includes average balance of PPP loans of $1.47 billion and $732.5 million for the three and six months ended June 30, 2020, respectively.

(2)Includes loans HFS.

11

EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 6
		Three Months Ended
		June 30, 2020						March 31, 2020
		Average				Average		Average				Average
		Balance		Interest		Yield/Rate (1)		Balance		Interest		Yield/Rate (1)
Assets
Interest-earning assets:
	Interest-bearing cash and deposits with banks	$	3,435,920	$	4,564	0.53	%	$	2,973,006	$	11,108	1.50	%
	Resale agreements (2)	1,037,473		5,514		2.14	%	882,142		5,625		2.56	%
	AFS debt securities	3,719,209		21,004		2.27	%	3,274,740		20,142		2.47	%
	Loans (3)	37,141,773		367,393		3.98	%	35,153,968		411,869		4.71	%
	FHLB and FRB stock	78,867		301		1.54	%	78,675		446		2.28	%
	Total interest-earning assets	45,413,242		398,776		3.53	%	42,362,531		449,190		4.26	%
Noninterest-earning assets:
	Cash and due from banks	498,908						510,512
	Allowance for loan losses	(566,473)						(492,297)
	Other assets	2,883,237						2,374,763
	Total assets	$	48,228,914					$	44,755,509
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
	Checking deposits	$	4,687,178	$	5,404	0.46	%	$	5,001,672	$	10,246	0.82	%
	Money market deposits	9,893,816		8,093		0.33	%	9,013,381		22,248		0.99	%
	Savings deposits	2,149,965		1,445		0.27	%	2,076,270		1,817		0.35	%
	Time deposits	9,634,696		31,457		1.31	%	10,264,007		42,092		1.65	%
	Federal funds purchased and other short-term borrowings	242,185		265		0.44	%	59,978		556		3.73	%
	FHLB advances	653,665		3,343		2.06	%	693,357		4,166		2.42	%
	Repurchase agreements (2)	418,681		3,540		3.40	%	332,417		3,991		4.83	%
	Long-term debt and finance lease liabilities	682,432		1,454		0.86	%	152,259		1,367		3.61	%
	Total interest-bearing liabilities	28,362,618		55,001		0.78	%	27,593,341		86,483		1.26	%
Noninterest-bearing liabilities and stockholders’ equity:
	Demand deposits	13,534,873						11,117,710
	Accrued expenses and other liabilities	1,348,977						1,022,453
	Stockholders’ equity	4,982,446						5,022,005
	Total liabilities and stockholders’ equity	$	48,228,914					$	44,755,509
Interest rate spread						2.75	%					3.00	%
Net interest income and net interest margin				$	343,775	3.04	%			$	362,707	3.44	%

(1)Annualized.

(2)There was no netting of repurchase agreements against resale agreements for the three months ended June 30, 2020. Average balances of resale and repurchase agreements for the three months ended March 31, 2020 have been reported net, pursuant to ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. The weighted-average yields of gross resale agreements were 2.14% and 2.50% for the three months ended June 30, 2020 and March 31, 2020, respectively. The weighted-average interest rates of gross repurchase agreements were 3.40% and 4.10% for the three months ended June 30, 2020 and March 31, 2020, respectively.

(3)Includes loans HFS.

12

EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 7
		Three Months Ended
		June 30, 2020						June 30, 2019
		Average				Average		Average				Average
		Balance		Interest		Yield/Rate (1)		Balance		Interest		Yield/Rate (1)
Assets
Interest-earning assets:
	Interest-bearing cash and deposits with banks	$	3,435,920	$	4,564	0.53	%	$	2,852,060	$	16,800	2.37	%
	Resale agreements (2)	1,037,473		5,514		2.14	%	999,835		7,404		2.98	%
	AFS debt securities	3,719,209		21,004		2.27	%	2,551,383		15,685		2.47	%
	Loans (3)	37,141,773		367,393		3.98	%	32,981,374		434,450		5.28	%
	FHLB and FRB stock	78,867		301		1.54	%	76,449		505		2.65	%
	Total interest-earning assets	45,413,242		398,776		3.53	%	39,461,101		474,844		4.83	%
Noninterest-earning assets:
	Cash and due from banks	498,908						439,449
	Allowance for loan losses	(566,473)						(321,335)
	Other assets	2,883,237						1,966,226
	Total assets	$	48,228,914					$	41,545,441
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
	Checking deposits	$	4,687,178	$	5,404	0.46	%	$	5,221,110	$	15,836	1.22	%
	Money market deposits	9,893,816		8,093		0.33	%	7,856,055		28,681		1.46	%
	Savings deposits	2,149,965		1,445		0.27	%	2,106,626		2,477		0.47	%
	Time deposits	9,634,696		31,457		1.31	%	9,904,726		50,970		2.06	%
	Federal funds purchased and other short-term borrowings	242,185		265		0.44	%	35,575		361		4.07	%
	FHLB advances	653,665		3,343		2.06	%	533,841		4,011		3.01	%
	Repurchase agreements (2)	418,681		3,540		3.40	%	50,000		3,469		27.83	%
	Long-term debt and finance lease liabilities	682,432		1,454		0.86	%	152,608		1,713		4.50	%
	Total interest-bearing liabilities	28,362,618		55,001		0.78	%	25,860,541		107,518		1.67	%
Noninterest-bearing liabilities and stockholders’ equity:
	Demand deposits	13,534,873						10,237,868
	Accrued expenses and other liabilities	1,348,977						762,684
	Stockholders’ equity	4,982,446						4,684,348
	Total liabilities and stockholders’ equity	$	48,228,914					$	41,545,441
Interest rate spread						2.75	%					3.16	%
Net interest income and net interest margin				$	343,775	3.04	%			$	367,326	3.73	%

(1)Annualized.

(2)There was no netting of repurchase agreements against resale agreements for the three months ended June 30, 2020. Average balances of resale and repurchase agreements for the three months ended June 30, 2019 have been reported net, pursuant to ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. The weighted-average yields of gross resale agreements were 2.14% and 2.71% for the three months ended June 30, 2020 and 2019, respectively. The weighted-average interest rates of gross repurchase agreements were 3.40% and 4.93% for the three months ended June 30, 2020 and 2019, respectively.

(3)Includes loans HFS.

13

EAST WEST BANCORP, INC. AND SUBSIDIARIES
YEAR-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 8
		Six Months Ended
		June 30, 2020						June 30, 2019
		Average				Average		Average				Average
		Balance		Interest		Yield/Rate (1)		Balance		Interest		Yield/Rate (1)
Assets
Interest-earning assets:
	Interest-bearing cash and deposits with banks	$	3,204,463	$	15,672	0.98	%	$	2,716,128	$	32,210	2.38	%
	Resale agreements (2)	959,807		11,139		2.33	%	1,017,320		15,310		3.03	%
	AFS investment securities	3,496,974		41,146		2.37	%	2,596,590		31,433		2.44	%
	Loans (3)	36,147,871		779,262		4.34	%	32,699,644		857,984		5.29	%
	FHLB and FRB stock	78,771		747		1.91	%	75,348		1,218		3.26	%
	Total interest-earning assets	43,887,886		847,966		3.89	%	39,105,030		938,155		4.84	%
Noninterest-earning assets:
	Cash and due from banks	504,710						453,725
	Allowance for loan losses	(529,385)						(317,909)
	Other assets	2,629,000						1,903,306
	Total assets	$	46,492,211					$	41,144,152
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
	Checking deposits	$	4,844,425	$	15,650	0.65	%	$	5,245,845	$	30,091	1.16	%
	Money market deposits	9,453,599		30,341		0.65	%	7,967,831		58,915		1.49	%
	Savings deposits	2,113,118		3,262		0.31	%	2,099,058		4,704		0.45	%
	Time deposits	9,949,351		73,549		1.49	%	9,658,181		96,259		2.01	%
	Federal funds purchased and other short-term borrowings	151,081		821		1.09	%	47,939		977		4.11	%
	FHLB advances	673,511		7,509		2.24	%	436,475		6,990		3.23	%
	Repurchase agreements (2)	375,549		7,531		4.03	%	50,000		6,961		28.07	%
	Long-term debt and finance lease liabilities	417,345		2,821		1.36	%	152,485		3,471		4.59	%
	Total interest-bearing liabilities	27,977,979		141,484		1.02	%	25,657,814		208,368		1.64	%
Noninterest-bearing liabilities and stockholders’ equity:
	Demand deposits	12,326,291						10,155,079
	Accrued expenses and other liabilities	1,185,715						720,028
	Stockholders’ equity	5,002,226						4,611,231
	Total liabilities and stockholders’ equity	$	46,492,211					$	41,144,152
Interest rate spread						2.87	%					3.20	%
Net interest income and net interest margin				$	706,482	3.24	%			$	729,787	3.76	%

(1)Annualized

(2)Average balances of resale and repurchase agreements have been reported net, pursuant to ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. The weighted-average yields of gross resale agreements were 2.32% and 2.77% for the six months ended June 30, 2020 and 2019, respectively. The weighted-average interest rates of gross repurchase agreements were 3.76% and 4.97% for the six months ended June 30, 2020 and 2019, respectively.

(3)Includes loans HFS.

14

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED RATIOS
(unaudited)
Table 9
		Three Months Ended (1)							June 30, 2020 Basis Point Change
		June 30, 2020		March 31, 2020		June 30, 2019			Qtr-o-Qtr		Yr-o-Yr
	Return on average assets	0.83	%	1.30	%	1.45	%		(47)	bps	(62)	bps
	Adjusted return on average assets (2)	0.83	%	1.30	%	1.74	%		(47)		(91)
	Return on average equity	8.02	%	11.60	%	12.88	%		(358)		(486)
	Adjusted return on average equity (2)	8.02	%	11.60	%	15.45	%		(358)		(743)
	Return on average tangible equity (2)	8.96	%	12.93	%	14.51	%		(397)		(555)
	Adjusted return on average tangible equity (2)	8.96	%	12.93	%	17.39	%		(397)		(843)
	Interest rate spread	2.75	%	3.00	%	3.16	%		(25)		(41)
	Net interest margin	3.04	%	3.44	%	3.73	%		(40)		(69)
	Average loan yield	3.98	%	4.71	%	5.28	%		(73)		(130)
	Yield on average interest-earning assets	3.53	%	4.26	%	4.83	%		(73)		(130)
	Average cost of interest-bearing deposits	0.71	%	1.17	%	1.57	%		(46)		(86)
	Average cost of deposits	0.47	%	0.82	%	1.11	%		(35)		(64)
	Average cost of funds	0.53	%	0.90	%	1.19	%		(37)		(66)
	Adjusted pre-tax, pre-provision profitability ratio (2)	2.08	%	2.30	%	2.51	%		(22)		(43)
	Adjusted noninterest expense/average assets (2)	1.28	%	1.44	%	1.54	%		(16)		(26)
	Efficiency ratio	46.64	%	42.92	%	42.29	%		372		435
	Adjusted efficiency ratio (2)	38.09	%	38.54	%	38.03	%		(45)	bps	6	bps
		Six Months Ended (1)				June 30, 2020 Basis Point Change
		June 30, 2020		June 30, 2019		Yr-o-Yr
	Return on average assets	1.06	%	1.54	%	(48)		bps
	Adjusted return on average assets (2)	1.06	%	1.71	%	(65)
	Return on average equity	9.82	%	13.75	%	(393)
	Adjusted return on average equity (2)	9.82	%	15.28	%	(546)
	Return on average tangible equity (2)	10.95	%	15.50	%	(455)
	Adjusted return on average tangible equity (2)	10.95	%	17.21	%	(626)
	Interest rate spread	2.87	%	3.20	%	(33)
	Net interest margin	3.24	%	3.76	%	(52)
	Average loan yield	4.34	%	5.29	%	(95)
	Yield on average interest-earning assets	3.89	%	4.84	%	(95)
	Average cost of interest-bearing deposits	0.94	%	1.53	%	(59)
	Average cost of deposits	0.64	%	1.09	%	(45)
	Average cost of funds	0.71	%	1.17	%	(46)
	Adjusted pre-tax, pre-provision profitability ratio (2)	2.19	%	2.47	%	(28)
	Adjusted noninterest expense/average assets (2)	1.36	%	1.57	%	(21)
	Efficiency ratio	44.75	%	44.21	%	54
	Adjusted efficiency ratio (2)	38.31	%	38.88	%	(57)		bps

(1)Annualized except for efficiency ratio.

(2)See reconciliation of GAAP to non-GAAP financial measures in Tables 13, 14 and 15.

15

EAST WEST BANCORP, INC. AND SUBSIDIARIES
ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE-SHEET CREDIT EXPOSURES
($ in thousands)
(unaudited)
Table 10
ASU 2016-13 replaced the incurred loss methodology used in calculating the allowance for loan losses with a current expected credit loss model (“CECL”). The Company adopted ASU 2016-13 using the modified retrospective approach on January 1, 2020. As a result, prior comparative periods have not been adjusted for the CECL model. In addition, ASU 2016-13 introduces the concept of Purchased Credit Deteriorated (“PCD”) financial assets, which replaces purchased credit-impaired (“PCI”) assets. For PCD assets, the initial allowance for loan losses is added to the purchase price and is considered to be part of the PCD loan amortized cost basis, hence, there is no income statement impact on acquisition. This contrasts with PCI loans where allowance for loan losses only reflects losses that are incurred by the Company after the acquisition. The allowance for loan losses is evaluated each quarter and adjusted as necessary by recognizing a loan loss expense or a reversal of loan loss expense. There were no PCD loans during the three and six months ended June 30, 2020.
		Three Months Ended June 30, 2020
		Commercial								Consumer						Total
				CRE						Residential Mortgage
		C&I		CRE		Multi-Family Residential		Construction and Land		Single- Family Residential		HELOCs		Other Consumer
Allowance for loan losses, March 31, 2020		$	362,629	$	132,819	$	16,530	$	11,018	$	26,822	$	3,881	$	3,304	$	557,003
Provision for (reversal of) credit losses on loans	(a)	37,862		43,315		7,908		7,526		(1,667)		205		(849)		94,300
Gross charge-offs		(20,378)		(320)		—		—		—		(221)		(30)		(20,949)
Gross recoveries		602		226		620		7		159		2		93		1,709
Total net (charge-offs) recoveries		(19,776)		(94)		620		7		159		(219)		63		(19,240)
Foreign currency translation adjustment		8		—		—		—		—		—		—		8
Allowance for loan losses, June 30, 2020		$	380,723	$	176,040	$	25,058	$	18,551	$	25,314	$	3,867	$	2,518	$	632,071
		Three Months Ended March 31, 2020
		Commercial								Consumer						Total
				CRE						Residential Mortgage
		C&I		CRE		Multi-Family Residential		Construction and Land		Single- Family Residential		HELOCs		Other Consumer
Allowance for loan losses, December 31, 2019		$	238,376	$	40,509	$	22,826	$	19,404	$	28,527	$	5,265	$	3,380	$	358,287
Impact of ASU 2016-13 adoption		74,237		72,169		(8,112)		(9,889)		(3,670)		(1,798)		2,221		125,158
Allowance for loan losses, January 1, 2020		$	312,613	$	112,678	$	14,714	$	9,515	$	24,857	$	3,467	$	5,601	$	483,445
Provision for (reversal of) credit losses on loans	(a)	60,618		11,435		1,281		1,482		1,700		412		(2,272)		74,656
Gross charge-offs		(11,977)		(954)		—		—		—		—		(26)		(12,957)
Gross recoveries		1,575		9,660		535		21		265		2		1		12,059
Total net (charge-offs) recoveries		(10,402)		8,706		535		21		265		2		(25)		(898)
Foreign currency translation adjustment		(200)		—		—		—		—		—		—		(200)
Allowance for loan losses, March 31, 2020		$	362,629	$	132,819	$	16,530	$	11,018	$	26,822	$	3,881	$	3,304	$	557,003

		Three Months Ended June 30, 2019
		Commercial								Consumer						Total
				CRE						Residential Mortgage
		C&I		CRE		Multi-Family Residential		Construction and Land		Single- Family Residential		HELOCs		Other Consumer
Allowance for loan losses, March 31, 2019		$	189,757	$	39,224	$	19,169	$	22,349	$	35,759	$	7,401	$	4,235	$	317,894
Provision for (reversal of) credit losses on loans	(a)	26,140		(1,250)		58		173		(3,068)		(1,224)		(98)		20,731
Gross charge-offs		(11,745)		—		—		—		—		—		(14)		(11,759)
Gross recoveries		1,713		1,837		53		439		72		—		7		4,121
Total net (charge-offs) recoveries		(10,032)		1,837		53		439		72		—		(7)		(7,638)
Foreign currency translation adjustment		(362)		—		—		—		—		—		—		(362)
Allowance for loan losses, June 30, 2019		$	205,503	$	39,811	$	19,280	$	22,961	$	32,763	$	6,177	$	4,130	$	330,625

16

EAST WEST BANCORP, INC. AND SUBSIDIARIES
ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE-SHEET CREDIT EXPOSURES
($ in thousands)
(unaudited)
Table 10 (continued)
		Six Months Ended June 30, 2020
		Commercial								Consumer						Total
				CRE						Residential Mortgage
		C&I		CRE		Multi-Family Residential		Construction and Land		Single- Family Residential		HELOCs		Other Consumer
Allowance for loan losses, December 31, 2019		$	238,376	$	40,509	$	22,826	$	19,404	$	28,527	$	5,265	$	3,380	$	358,287
Impact of ASU 2016-13 adoption		74,237		72,169		(8,112)		(9,889)		(3,670)		(1,798)		2,221		125,158
Allowance for loan losses, January 1, 2020		$	312,613	$	112,678	$	14,714	$	9,515	$	24,857	$	3,467	$	5,601	$	483,445
Provision for (reversal of) credit losses on loans	(a)	98,480		54,750		9,189		9,008		33		617		(3,121)		168,956
Gross charge-offs		(32,355)		(1,274)		—		—		—		(221)		(56)		(33,906)
Gross recoveries		2,177		9,886		1,155		28		424		4		94		13,768
Total net (charge-offs) recoveries		(30,178)		8,612		1,155		28		424		(217)		38		(20,138)
Foreign currency translation adjustment		(192)		—		—		—		—		—		—		(192)
Allowance for loan losses, June 30, 2020		$	380,723	$	176,040	$	25,058	$	18,551	$	25,314	$	3,867	$	2,518	$	632,071

		Six Months Ended June 30, 2019
		Commercial								Consumer						Total
				CRE						Residential Mortgage
		C&I		CRE		Multi-Family Residential		Construction and Land		Single- Family Residential		HELOCs		Other Consumer
Allowance for loan losses, December 31. 2018		$	189,117	$	40,666	$	19,885	$	20,290	$	31,340	$	5,774	$	4,250	$	311,322
Provision for (reversal of) credit losses on loans	(a)	41,404		(2,914)		(939)		2,169		1,349		401		(99)		41,371
Gross charge-offs		(28,989)		—		—		—		—		—		(28)		(29,017)
Gross recoveries		3,964		2,059		334		502		74		2		7		6,942
Total net (charge-offs) recoveries		(25,025)		2,059		334		502		74		2		(21)		(22,075)
Foreign currency translation adjustment		7		—		—		—		—		—		—		7
Allowance for loan losses, June 30, 2019		$	205,503	$	39,811	$	19,280	$	22,961	$	32,763	$	6,177	$	4,130	$	330,625

		Three Months Ended						Six Months Ended
		June 30, 2020		March 31, 2020		June 30, 2019		June 30, 2020		June 30, 2019
Unfunded Credit Facilities
Allowance for unfunded credit commitments, beginning of period (1)		$	20,829	$	11,158	$	14,505	$	11,158	$	12,566
Impact of ASU 2016-13 adoption		—		10,457		—		10,457		—
Provision for (reversal of) credit losses on unfunded credit commitments	(b)	8,143		(786)		(1,486)		7,357		453
Allowance for unfunded credit commitments, end of period (1)		$	28,972	$	20,829	$	13,019	$	28,972	$	13,019
Provision for credit losses	(a) + (b)	$	102,443	$	73,870	$	19,245	$	176,313	$	41,824

1

(1)Included in Accrued expense and other liabilities on the Consolidated Balance Sheet.

17

	EAST WEST BANCORP, INC. AND SUBSIDIARIES
	CREDIT QUALITY
	($ in thousands)
	(unaudited)
Table 11
The Company adopted ASU 2016-13 using the modified retrospective approach on January 1, 2020. As a result, prior comparative periods have not been adjusted. PCI loans prior to the adoption of ASU 2016-13 were classified as PCD loans as of January 1, 2020. Nonaccrual loans as of June 30, 2020 and March 31, 2020 include all loans that are 90 or more days past due, unless the loan is well-collateralized or guaranteed by government agencies, and in the process of collection. Nonaccrual loans presented as of June 30, 2019 included only Non-PCI nonaccrual loans.
Nonperforming Assets		June 30, 2020			March 31, 2020			June 30, 2019
		Total Nonaccrual loans			Total Nonaccrual loans			Non-PCI Nonaccrual Loans
Commercial:
	C&I	$	84,823		$	89,079		$	73,150
	CRE:
	CRE	56,577			6,298			20,914
	Multifamily residential	774			803			1,027
	Total CRE	57,351			7,101			21,941
Consumer:
	Residential mortgage:
	Single-family residential	20,070			17,536			13,075
	HELOCs	14,068			10,446			7,344
	Total residential mortgage	34,138			27,982			20,419
	Other consumer	2,508			2,506			2,504
	Total nonaccrual loans	178,820			126,668			118,014
Other real estate owned, net		19,504			19,504			130
Other nonperforming assets		3,890			4,758			1,167
	Total nonperforming assets	$	202,214		$	150,930		$	119,311
Credit Quality Ratios		June 30, 2020			March 31, 2020			June 30, 2019
Nonperforming assets to total assets		0.41		%	0.33		%	0.28		%
Nonaccrual loans to loans HFI		0.48		%	0.35		%	0.35		%
Allowance for loan losses to loans HFI		1.70		%	1.55		%	0.98		%
Allowance for loan losses to nonaccrual loans		353.47		%	439.73		%	280.16		%
Annualized quarterly net charge-offs to average loans HFI		0.21		%	0.01		%	0.09		%

18

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
($ in thousands)
(unaudited)
Table 12
During the second quarter of 2019, the Company reversed $30.1 million of certain previously claimed tax credits related to the DC Solar tax credit investments (“DC Solar”). The table below shows the computation of the Company’s effective tax rate excluding the impact of the DC Solar tax credits reversal. Management believes that excluding the impact of the DC Solar tax credits reversal from the effective tax rate computation allows comparability to prior periods.
		Three Months Ended									Six Months Ended
		June 30, 2020			March 31, 2020			June 30, 2019			June 30, 2020			June 30, 2019
Income tax expense	(a)	$	12,921		$	19,186		$	72,797		$	32,107		$	103,864
Less: Reversal of certain previously claimed tax credits related to DC Solar	(b)	—			—			(30,104)			—			(30,104)
Adjusted income tax expense	(c)	$	12,921		$	19,186		$	42,693		$	32,107		$	73,760
Income before income taxes	(d)	112,273			164,010			223,177			276,283			418,268
Effective tax rate	(a)/(d)	11.5		%	11.7		%	32.6		%	11.6		%	24.8		%
Less: Reversal of certain previously claimed tax credits related to DC Solar	(b)/(d)	—		%	—		%	(13.5)		%	—		%	(7.2)		%
Adjusted effective tax rate	(c)/(d)	11.5		%	11.7		%	19.1		%	11.6		%	17.6		%

19

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
($ and shares in thousands, except for per share data)
(unaudited)
Table 13
During the first and second quarters of 2019, the Company recorded a $7.0 million pre-tax impairment charge and reversed $30.1 million of certain previously claimed tax credits related to the DC Solar tax credit investments (“DC Solar”), respectively. Management believes that presenting the computations of the adjusted net income, adjusted diluted earnings per common share, adjusted return on average assets and adjusted return on average equity that adjust for the above discussed non-recurring items provides clarity to financial statement users regarding the ongoing performance of the Company and allows comparability to prior periods.
		Three Months Ended
		June 30, 2020			March 31, 2020			June 30, 2019
Net income	(a)	$	99,352		$	144,824		$	150,380
Add: Reversal of certain previously claimed tax credits related to DC Solar		—			—			30,104
Adjusted net income	(b)	$	99,352		$	144,824		$	180,484
Diluted weighted-average number of shares outstanding		141,827			145,285			146,052
Diluted EPS		$	0.70		$	1.00		$	1.03
Diluted EPS impact of reversal of certain previously claimed tax credits related to DC Solar		—			—			0.21
Adjusted diluted EPS		$	0.70		$	1.00		$	1.24
Average total assets	(c)	$	48,228,914		$	44,755,509		$	41,545,441
Average stockholders’ equity	(d)	$	4,982,446		$	5,022,005		$	4,684,348
Return on average assets (1)	(a)/(c)	0.83		%	1.30		%	1.45		%
Adjusted return on average assets (1)	(b)/(c)	0.83		%	1.30		%	1.74		%
Return on average equity (1)	(a)/(d)	8.02		%	11.60		%	12.88		%
Adjusted return on average equity (1)	(b)/(d)	8.02		%	11.60		%	15.45		%
		Six Months Ended
		June 30, 2020			June 30, 2019
Net income	(e)	$	244,176		$	314,404
Add: Impairment charge related to DC Solar (2)		—			6,978
Tax effect of adjustments (3)		—			(2,063)
Add: Reversal of certain previously claimed tax credits related to DC Solar		—			30,104
Adjusted net income	(f)	$	244,176		$	349,423
Diluted weighted average number of shares outstanding		143,560			146,016
Diluted EPS		$	1.70		$	2.15
Diluted EPS impact of impairment charge related to DC Solar, net of tax		—			0.03
Diluted EPS impact of reversal of certain previously claimed tax credits related to DC Solar		—			0.21
Adjusted diluted EPS		$	1.70		$	2.39
Average total assets	(g)	$	46,492,211		$	41,144,152
Average stockholders’ equity	(h)	$	5,002,226		$	4,611,231
Return on average assets (1)	(e)/(g)	1.06		%	1.54		%
Adjusted return on average assets (1)	(f)/(g)	1.06		%	1.71		%
Return on average equity (1)	(e)/(h)	9.82		%	13.75		%
Adjusted return on average equity (1)	(f)/(h)	9.82		%	15.28		%

(1)Annualized.

(2)Included in Amortization of tax credit and other investments on the Consolidated Statement of Income.

(3)Applied statutory rate of 29.56% for the three and six months ended June 30, 2019.

20

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
($ in thousands)
(unaudited)
Table 14
Adjusted efficiency ratio represents adjusted noninterest expense divided by revenue. Adjusted pre-tax, pre-provision profitability ratio represents revenue less adjusted noninterest expense, divided by average total assets. Adjusted noninterest expense excludes the amortization of tax credit and other investments, the amortization of core deposit intangibles, and the extinguishment cost on repurchase agreements. 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.
		Three Months Ended
		June 30, 2020			March 31, 2020			June 30, 2019
Net interest income before provision for credit losses	(a)	$	343,775		$	362,707		$	367,326
Total noninterest income		58,637			54,049			52,759
Total revenue	(b)	$	402,412		$	416,756		$	420,085
Total noninterest expense	(c)	$	187,696		$	178,876		$	177,663
Less: Amortization of tax credit and other investments		(24,759)			(17,325)			(16,739)
Amortization of core deposit intangibles		(931)			(953)			(1,152)
Repurchase agreements’ extinguishment cost		(8,740)			—			—
Adjusted noninterest expense	(d)	$	153,266		$	160,598		$	159,772
Efficiency ratio	(c)/(b)	46.64		%	42.92		%	42.29		%
Adjusted efficiency ratio	(d)/(b)	38.09		%	38.54		%	38.03		%
Adjusted pre-tax, pre-provision income	(b)-(d) = (e)	$	249,146		$	256,158		$	260,313
Average total assets	(f)	$	48,228,914		$	44,755,509		$	41,545,441
Adjusted pre-tax, pre-provision profitability ratio (1)	(e)/(f)	2.08		%	2.30		%	2.51		%
Adjusted noninterest expense/average assets (1)	(d)/(f)	1.28		%	1.44		%	1.54		%
		Six Months Ended
		June 30, 2020			June 30, 2019
Net interest income before provision for credit losses	(g)	$	706,482		$	729,787
Total noninterest income		112,686			94,890
Total revenue	(h)	819,168			824,677
Total noninterest expense	(i)	$	366,572		$	364,585
Less: Amortization of tax credit and other investments		(42,084)			(41,644)
Amortization of core deposit intangibles		(1,884)			(2,326)
Repurchase agreements’ extinguishment cost		(8,740)			—
Adjusted noninterest expense	(j)	$	313,864		$	320,615
Efficiency ratio	(i)/(h)	44.75		%	44.21		%
Adjusted efficiency ratio	(j)/(h)	38.31		%	38.88		%
Adjusted pre-tax, pre-provision income	(h)-(j) = (k)	$	505,304		$	504,062
Average total assets	(l)	$	46,492,211		$	41,144,152
Adjusted pre-tax, pre-provision profitability ratio (1)	(k)/(l)	2.19		%	2.47		%
Adjusted noninterest expense /average assets (1)	(j)/(l)	1.36		%	1.57		%

(1)Annualized.

21

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
($ in thousands)
(unaudited)
Table 15
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible equity and tangible equity to tangible assets ratio are non-GAAP financial measures. Tangible equity and tangible assets represent stockholders’ equity and total assets, respectively, 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 such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.
		June 30, 2020			March 31, 2020			June 30, 2019
Stockholders’ equity	(a)	$	4,987,243		$	4,902,985		$	4,734,593
Less: Goodwill		(465,697)			(465,697)			(465,697)
Other intangible assets (1)		(13,490)			(14,769)			(18,952)
Tangible equity	(b)	$	4,508,056		$	4,422,519		$	4,249,944
Total assets	(c)	$	49,407,593		$	45,948,545		$	42,892,358
Less: Goodwill		(465,697)			(465,697)			(465,697)
Other intangible assets (1)		(13,490)			(14,769)			(18,952)
Tangible assets	(d)	$	48,928,406		$	45,468,079		$	42,407,709
Total stockholders’ equity to total assets ratio	(a)/(c)	10.09		%	10.67		%	11.04		%
Tangible equity to tangible assets ratio	(b)/(d)	9.21		%	9.73		%	10.02		%

Adjusted return on average tangible equity represents adjusted tangible net income divided by average tangible equity. Adjusted tangible net income excludes the after-tax impacts of the amortization of core deposit intangibles and mortgage servicing assets, impairment charge and the reversal of certain previously claimed tax credits related to DC Solar (where applicable). Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.
		Three Months Ended									Six Months Ended
		June 30, 2020			March 31, 2020			June 30, 2019			June 30, 2020			June 30, 2019
Net Income		$	99,352		$	144,824		$	150,380		$	244,176		$	314,404
Add: Amortization of core deposit intangibles		931			953			1,152			1,884			2,326
Amortization of mortgage servicing assets		458			584			1,013			1,042			1,337
Tax effect of adjustments (2)		(394)			(436)			(640)			(830)			(1,083)
Tangible net income	(e)	$	100,347		$	145,925		$	151,905		$	246,272		$	316,984
Add: Impairment charge related to DC Solar (3)		—			—			—			—			6,978
Tax effect of adjustment (2)		—			—			—			—			(2,063)
Add: Reversal of certain previously claimed tax credits related to DC Solar		—			—			30,104			—			30,104
Adjusted tangible net income	(f)	$	100,347		$	145,925		$	151,905		$	246,272		$	352,003
Average stockholders’ equity		$	4,982,446		$	5,022,005		$	4,684,348		$	5,002,226		$	4,611,231
Less: Average goodwill		(465,697)			(465,697)			(465,697)			(465,697)			(465,629)
Average other intangible assets (1)		(14,247)			(15,588)			(20,380)			(14,918)			(21,116)
Average tangible equity	(g)	$	4,502,502		$	4,540,720		$	4,198,271		$	4,521,611		$	4,124,486
Return on average tangible equity (4)	(e)/(g)	8.96		%	12.93		%	14.51		%	10.95		%	15.50		%
Adjusted return on average tangible equity (4)	(f)/(g)	8.96		%	12.93		%	17.39		%	10.95		%	17.21		%

(1)Includes core deposit intangibles and mortgage servicing assets.

(2)Applied statutory rate of 28.35% for the three and six months ended June 30, 2020, and the three months ended March 31, 2020. Applied statutory rate of 29.56% for the three and six months ended June 30, 2019.

(3)Included in Amortization of tax credit and other investments on the Consolidated Statement of Income.

(4)Annualized.

22

EX-99.2

EWBC Earnings Results Second Quarter 2020 July 23, 2020

Forward-Looking Statements Forward-Looking Statements Certain matters set forth herein (including any exhibits hereto) constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to our current business plans and expectations regarding future operating results. Forward-looking statements may include, but are not limited to, the use of forward-looking language, such as “likely result in,” “expects,” “anticipates,” “estimates,” “forecasts,” “projects,” “intends to,” “assumes,” or may include other similar words or phrases, such as “believes,” “plans,” “trend,” “objective,” “continues,” “remains,” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” “may,” “might,” “can,” or similar verbs, and the negative thereof. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to, the impact of disease pandemics, such as the worldwide spread of COVID-19, on us, our operations and our customers and employees; and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address it, which may precipitate or exacerbate one or more of the below-mentioned and/or other risks, and significantly disrupt or prevent us from operating its business in the ordinary course for an extended period; changes in governmental policy and regulation, including measures taken in response to economic, business, political and social conditions, such as the Small Business Administration’s Payment Protection Program, the Board of Governors of the Federal Reserve Board System’s (the “Federal Reserve”) efforts to provide liquidity to the U.S. financial system, including changes in government interest rate policies, and to provide credit to private commercial and municipal borrowers, and other program designed to address the effects of the COVID-19 pandemic, as well as the resulting effect of all such items on our operations, liquidity and capital position, and on the financial condition of our borrowers and other customers; changes in the U.S. economy, including an economic slowdowns or recession, inflation, deflation, employment levels, rate of growth and general business conditions; the changes and effects thereof in trade, monetary and fiscal policies and laws, including the ongoing trade dispute between the United States (“U.S.”) and the People’s Republic of China; fluctuations in our stock price; changes in income tax laws and regulations; our ability to compete effectively against other financial institutions in our banking markets; success and timing of our business strategies; our ability to retain key officers and employees; impact on our funding costs, net interest income and net interest margin from changes in key variable market interest rates, competition, regulatory requirements and our product mix; changes in our costs of operation, compliance and expansion; our ability to adopt and successfully integrate new technologies into our business in a strategic manner; impact of benchmark interest rate reform in the U.S. that resulted in the Secured Overnight Financing Rate selected as the preferred alternative reference rate to the London Interbank Offered Rate; impact of failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business, including as a result of cyber attacks; and other similar matters which could result in, among other things, confidential and/or proprietary information being disclosed or misused; adequacy of our risk management framework, disclosure controls and procedures and internal control over financial reporting; future credit quality and performance, including our expectations regarding future credit losses and allowance levels; impact of adverse changes to our credit ratings from major credit rating agencies; impact of adverse judgments or settlements in litigation; changes in the commercial and consumer real estate markets; changes in consumer spending and savings habits; impact on our international operations due to political developments, disease pandemics, wars or other hostilities that may disrupt or increase volatility in securities or otherwise affect economic conditions; changes in laws or the regulatory environment including regulatory reform initiatives and policies of the U.S. Department of Treasury, the Federal Reserve, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the U.S. Securities and Exchange Commission, the Consumer Financial Protection Bureau and the California Department of Business Oversight — Division of Financial Institutions; impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on our business, business practices, cost of operations and executive compensation; heightened regulatory and governmental oversight and scrutiny of our business practices, including dealings with consumers; impact of reputational risk from negative publicity, fines and penalties and other negative consequences from regulatory violations and legal actions and from our interactions with business partners, counterparties, service providers and other third parties; impact of regulatory enforcement actions; changes in accounting standards as may be required by the Financial Accounting Standards Board or other regulatory agencies and their impact on critical accounting policies and assumptions; impact of other potential federal tax changes and spending cuts; our capital requirements and our ability to generate capital internally or raise capital on favorable terms; impact on our liquidity due to changes in our ability to receive dividends from our subsidiaries; any future strategic acquisitions or divestitures; continuing consolidation in the financial services industry; changes in the equity and debt securities markets; fluctuations in foreign currency exchange rates; a recurrence of significant turbulence or disruption in the capital or financial markets, which could result in, among other things, a reduction in the availability of funding or increases in funding costs, a reduction in investor demand for mortgage loans and declines in asset values and/or recognition of other-than-temporary impairment on securities held in our available-for-sale debt securities portfolio; impact of natural or man-made disasters or calamities, such as wildfires or conflicts or other events that may directly or indirectly result in a negative impact on our financial performance; and other factors set forth in our public reports including our Annual Report on Form 10-K for the year ended December 31, 2019 and our Quarterly Reports on Form 10-Q, and particularly the discussion of risk factors within those documents. In addition to the risk factors enumerated above, the economic impact of the COVID-19 pandemic could cause actual outcome to differ, possibly materially, from our forward-looking statement due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control. Given the ongoing and dynamic nature of the circumstances, it is difficult to predict the full impact of the COVID-19 pandemic on our business. The extent to which the COVID- 19 pandemic impacts us will depend on future developments that are uncertain and unpredictable, including the scope, severity and duration of the pandemic and its impact on our customers, the actions taken by governmental authorities in response to the pandemic as well as its impact on global and regional economies, and the pace of recovery when the COVID-19 pandemic subsides, among others. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, our results could differ materially from those expressed in, implied or projected by such forward-looking statements. We assume no obligation to update or revise such forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. 2

East West Response to COVID-19 Employees SBA Paycheck Protection Program . Developed detailed return to office plan with . Processed and funded $1.8 billion for over phased return for associates. 7,200 small to medium-sized businesses and . Continue work-from-home plans for nonprofit organizations during 2Q20. associates who can perform work remotely. . Prepared locations: temperature screening, . Funds used to support over 170,000 plexiglass panels, PPE. employees. . All branches resumed normal business . Median loan size: $60,000. hours, including all 13 that were temporarily . Over 60% of loans under $100,000. closed due to COVID-19. COVID-19 Related Payment Deferrals Active Deferrals as of 6/30/2020 # of Deferrals $ of Deferrals % Deferred LTV of Deferred . 90% are 3-month deferrals. C&I 72 140 mil 1.2% N/A . Of the $1.6bn C&I and CRE loan CRE 235 1,431 mil 9.9% 53.4% Subtotal 307 1,571 mil 6.0% N/A deferrals, 45% are still making Residential Mortgage 2,917 1,309 mil 14.3% 50.7% partial payments during the Total Loans 3,224 2,880 mil 7.7% N/A deferral period. 3

Summary of Second Quarter 2020 Results Profitability: Returns on Assets & Equity 2.00% 40.0% 2Q20 1.74% 1.67% 1.58% Net Income 30.0% 1.30% $99 million 17.4% 15.7% 16.6% 0.83% 20.0% 12.9% 9.0% 2Q20 15.5% 14.1% 14.9% 10.0% 11.6% Diluted EPS 8.0% 0.00% 0.0% $0.70 2Q19* 3Q19 4Q19* 1Q20 2Q20 ROAA ROAE ROATE* Total Revenue * See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases. ROAA, ROAE & ROATE adjusted in 2Q19 & 4Q19 for non-GAAP items. $402 million Pre-Tax, Pre-Provision Income & PTPP Ratio Record Loans $260 $263 $266 $256 $249 4.00% $37.2 billion $250 3.50% $200 2.51% 3.00% 2.42% 2.37% 2.30% 2.08% 2.50% Record Deposits $150 $ $ in millions 2.50% 2.00% 2.30% $40.7 billion $100 1.83% 1.50% 1.00% $50 1.42% 0.50% 0.25% Adj.* Efficiency Ratio $- 0.00% 2Q19 3Q19 4Q19 1Q20 2Q20 38.1% Adj.* PTPP income Adj.* PTPP profitability ratio Avg. Fed Funds rate * See reconciliation of GAAP to non-GAAP financial measures in the appendix and in the Company’s Earnings Press Releases. 4

2Q20: Summary Balance Sheet $ in millions, except per share data 06.30.20 03.31.20 % Change Notable Items Cash equivalents & ST investments $ 5,065 $ 3,374 50% Strong, well-diversified balance sheet. AFS debt securities & repo assets 5,145 4,556 13% Gross loans (ex. PPP) $ 35,487 $ 35,895 -1% . Total loan growth: $1.3bn, +15% annualized. PPP loans 1,747 - NM . Total deposit growth: $2.0bn, +21% Total loans, net of discounts $ 37,233 $ 35,895 4% annualized. Allowance for loan losses ("ALLL") (632) (557) 13% . Loan-to-deposit ratio of 91.5% as of Net Loans $ 36,601 $ 35,338 4% 06.30.20, decrease from 92.8% as of Other assets 2,597 2,681 -3% 03.31.20: reflects strong deposit growth in Total Assets $ 49,408 $ 45,949 8% 2Q20. Customer deposits $ 40,673 $ 38,687 5% . Greater China loans: $1.2bn as of Short-term borrowings 253 67 278% 06.30.20, -2% Q-o-Q. FHLB advances & repo funding 957 1,096 -13% . Greater China deposits: $2.2bn as of PPP Liquidity Facility 1,428 - NM 06.30.20, +7% Q-o-Q. Other LT debt & finance lease liab. 152 152 0% . Funded the PPP loans through the Paycheck Other liabilities 958 1,043 -8% Protection Program Liquidity Facility Total Liabilities $ 44,420 $ 41,046 8% (“PPPLF”) by drawing on $1.4bn, Total Stockholders' Equity $ 4,987 $ 4,903 2% strengthening already substantial liquidity and bolstering balance sheet capacity to Book value per share $ 35.25 $ 34.67 2% serve customers. Tangible equity per share $ 31.86 $ 31.27 2% . Strong liquidity: available borrowing capacity Gross loans / deposits 91.5% 92.8% (124) bp of $15.7bn as of 06.30.20, up from $13.0bn ALLL / gross loans 1.70% 1.55% 15 bp as of 03.31.20. 5

2Q20: Strong Capital Ratios . Growing Equity: Book value per share of $35.25 as of 06.30.20: +2% Q-o-Q and +8% Y-o-Y. . Tangible equity* per share of $31.86 as of 06.30.20: +2% Q-o-Q and +9% Y-o-Y. . Tangible equity* to tangible assets ratio of 9.2% as of 06.30.20. . Increasing risk-based capital ratios: CET1 capital, Tier 1 capital & total capital ratios all increased Q-o-Q as of 06.30.20. . Capital return to shareholders: . Dividend: Quarterly common stock dividend of 27.5 cents per share, or annualized $1.10 per share. . No buybacks during 2Q20. 13.9% 14.4% 12.4% 12.7% 12.4% 12.7% 10.5% 10.2% 9.7% 8.5% 7.0% 5.0% CET1 Tier 1 Total Leverage capital ratio capital ratio capital ratio ratio Higher of the Regulatory requirement for the Minimum Capital Ratio + 2.5% Conservation Buffer, EWBC as of 03.31.20 EWBC as of 06.30.20 or the Well Capitalized Ratio Note: regulatory capital ratios as of 06.30.20 are preliminary. * See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s Earnings Press Releases. 6

2Q20: Record Loans of $37.2 billion Loan Mix as of 06.30.20: $37.2 billion* . EOP loan growth: 4% Q-o-Q (+15% LQA). ($ in billions) . Avg. loan growth: 6% Q-o-Q (+23% LQA). $1.7 $9.3 5% . C&I: 2Q growth from PPP. 25% . PPP: average balance of $1.5bn in 2Q20. . Real estate portfolio growth: total CRE: +11% LQA; $11.7 $14.5 31% residential mortgage: +12% LQA. 39% . As of 06.30.20, total C&I commitments of $16.1bn: $11.7bn in loans outstanding (ex. PPP) plus $4.5bn in C&I (ex. PPP) PPP Total CRE Residential mortgage & other consumer undisbursed commitments. . C&I loan line utilization: 72% as of 06.30.20, down Average Loans & Growth 45 $45.0 from 75% as of 03.31.20, and up from 71% as of 12.31.19. $37.1 $40.0 40 $34.4 $35.2 $33.0 $33.7 +9% +23% 1.5 35 $35.0 +8% +9% . Undertook rigorous loan portfolio review in 2Q20, 30 9.0 9.1 $30.0 8.3 8.6 8.8 covering over 50% of the C&I and CRE loan 25 $25.0 portfolios. 20 $20.0 12.7 12.9 13.4 14.0 14.4 15 $15.0 $ $ in billions 10 $10.0 5 12.0 12.2 12.2 12.2 12.1 $5.0 0 $- 2Q19 3Q19 4Q19 1Q20 2Q20 * Loan balances of $37.2bn as of 06.30.20 are net of deferred loan fees, unearned C&I (ex. PPP) PPP Total CRE Residential mortgage & other consumer fees, unamortized premiums and unaccreted discounts of $(72.1) million. PPP balances LQA avg. loan growth of $1.75bn as of 06.30.20 are net of origination fees of $(25.4). 7

06.30.20: Diversified Commercial Loan Portfolio Total Loans: C&I Loans by Industry as % of Total Loans Outstanding Total Residential Mortgage & 3% General Manufacturing & Wholesale Other Consumer Other Consumer 3% Oil & Gas 25% 3% Private Equity $11.7 billion 2% Entertainment $37.2 C&I 2% Real Estate Related 2% Technology & Life Science billion 31% 2% Consumer Goods 2% Clean Energy Total Loans 1% Healthcare 1% Grocers & Food Producers Total CRE 39% 10% All Other C&I PPP 5% Oil & Gas exposure: . Loans O/S: $1.3bn loans as of 06.30.20, down 6% Q-o-Q from $1.4bn. . Total commitments: $1.6bn as of 06.30.20, down by 8% Q-o-Q from $1.8bn. . Allowance for loan loss coverage: 9% of O&G portfolio. . Portfolio mix: 62% E&P; 32% midstream & downstream; 6% oilfield services & other. . E&P production mix through 2020: by volume: 29% oil, 55% gas & 16% NGL; by revenue: 58% oil, 33% gas & 9% NGL. . Production hedged: 73% oil and 74% gas hedged for 2020; and 46% oil and 61% gas hedged for 2021. 8

06.30.20: Diversified Commercial Real Estate Portfolio Total Loans: Total CRE Loans by Property Type as % of Total CRE Geographic Distribution Total Loans Outstanding Total Residential Other WA 8% Mortgage & 3% Other Consumer Retail, 9% TX 25% 6% NY PPP $14.5 billion MFR, 8% 6% $14.5 5% $37.2 Total CRE billion billion 39% Office, 7% SoCal Total CRE 54% Total Loans Industrial, 6% loans NorCal 23% C&I Hotel, 5% 31% All Other CRE, 4% . Geographic distribution reflects EWBC’s branch footprint. . Owner-occupied loans in CRE: $2.2bn, or 6% of total loans outstanding. . Included in All Other CRE are construction & land loans of $568mm, or 1.5% of total loans. Total construction & land exposure of $935mm comprises loans O/S plus $367mm in undisbursed commitments. 9

06.30.20: Low LTV Commercial Real Estate Portfolio LTV Distribution of Total CRE LTV & Size by Property Type > 70% >65% to 70% Average Weight. Avg. 7% 4% ($ in mm) Loan Size LTV Retail $ 2.2 mm 50% Multifamily 1.2 mm 52% >60% to 65% Office 3.8 mm 54% 16% $2.3 million Industrial 2.3 mm 51% Avg. size <=50% 52% 40% Hotel 8.2 mm 54% Construction & Weigh. avg. LTV 9.5 mm* 52% >55% to 60% Land 17% Other 1.9 mm 49% >50% to 55% Total CRE $ 2.3 mm 52% 16% * Construction & Land avg. size based on total commitment. . High percentage of CRE loans have full recourse & personal guarantees from individuals or guarantors with substantial net worth. . Many of our customers have long-term relationships with East West Bank. 10

06.30.20: Low LTV Single Family Mortgage Portfolio Geographic Distribution of SFR LTV Distribution SFR >60% 7% <=50% 32% $385,000 $7.7 billion Avg. outstanding Single-family SFR size mortgage >55% to 60% 53% 47% Avg. LTV >50% to 55% 14% . Single-family residential (SFR): $7.7bn as of 06.30.20, primarily originated through East West Bank branches. . Residential mortgage origination volume: $777mm in 2Q20, comprising $567mm of SFR and $210mm of HELOC originations, increased 6% Q-o-Q. Transaction volume picked up in May and June after a slower April. . Refinance transactions: 68% of residential mortgage origination volume in 2Q20, vs. 62% in 1Q20. 11

06.30.20: Low LTV HELOC Portfolio Geographic Distribution of HELOC LTV* Distribution HELOC >60% :: 3% Other WA 5% 10% >55% to 60% NY 33% $362,000 13% $1.5 billion SoCal Avg. HELOC 48% commitment HELOC <=50% Loan balance 49% 57% Avg. LTV* NorCal 24% * Combined LTV for 1st and 2nd >50% to 55% liens. Based on 7% commitment. . Home Equity Line of Credit (HELOC): $1.5bn loans outstanding plus $1.6bn in undisbursed commitments, for total commitment of $3.1bn as of 06.30.20. Utilization rate of 48% in 2Q20. . Similar to SFR loans, HELOCs primarily originated through East West Bank branches. . As of 06.30.20, 84% of HELOCs were in first lien position. 12

2Q20: Allowance for Loan Losses & Credit Costs Allowance for Loan Losses Coverage Ratio Provision for Credit Losses & Net Charge-offs 0.70% $632 4.80% 220 0.50% $557 0.26% $483 0.21% 0.30% $500 3.60% 0.09% 0.10% 0.01% $358 0.10% $311 102 $ $ in millions 2.40% 110 1.70% -0.10% 1.39% 1.55% 74 0.96% 1.03% $ in millions -0.30% 1.20% 38 19 22 19 19 -0.50% 8 8 1 $- 0.00% - -0.70% 12.31.18 12.31.19 01.01.20 (CECL) 03.31.20 06.30.20 2Q19 3Q19 4Q19 1Q20 2Q20 Allowance for loan losses ALLL/Loans HFI Provision for credit losses Net Charge-offs NCO ratio Composition of ALLL Over Time: . Allowance coverage of loans HFI: 1.70% as of 06.30.20. Total: $632 Total:1.70% . ALLL coverage change by loan type: Total: $557 31 0.34% . C&I (ex. PPP): 3.3%, +38bp Q-o-Q Total: $483 34 . Oil & Gas: 9.0%, +112bps Q-o-Q. 220 1.51% . All Other C&I: 2.6%, +28bps Q-o-Q. 33 160 Total: $358 . Total CRE: 1.5%, +38bps Q-o-Q (hotel, retail). 137 37 . Resi. mortgage & other consumer: 0.3%, -3bps Q-o-Q. 83 . 2Q20 provision for credit losses of $102mm: coverage portfolioby . Provision primarily driven by a more adverse macroeconomic 363 381 3.26% 313 $ in millions; ratio is allowance allowance isratio $ in millions; forecast as of 06.30.20, relative to 03.31.20, as well as loan 238 risk rating downgrades. 0 . Charge-offs primarily from oil & gas: $14mm or 64% of gross 12.31.19 01.01.20 (CECL) 03.31.20 06.30.20 06.30.20 charge-offs in 2Q20. ALLL by Loan Type: C&I (ex. PPP) Total CRE Residential mortgage & other consumer 13

2Q20: Asset Quality Metrics Special Mention Loans Total: $576mm Classified Loans 21.6% Total: $674mm $6 $36 1% 5% 11.0% 36 0.4% $140 $164 24% 19824% Classified:1.4% $276 SM: 41% $276 30 0.3% 1.8% of 1.5% of 48% total loans total loans 104 0.7% 164 1.6% 4.8% 4.1% 2.9% $154 $198 2.7% 27% 2.3% 30% 258 2.3% 1.6% 1.0% 1.1% 1.4% 276 21.6% 0.7% 0.3% Special mention Special loan mention portfolio byratio 0.2% 0.4% 0.1% loan byratio portfolio Classified 55 4.1% - 03.31.20: 1.5% of loans 06.30.20: 1.5% of loans 03.31.20: 1.2% of loans 06.30.20: 1.8% of loans 03.31.20 03.31.20 Ratio 06.30.20 06.30.20 Ratio C&I: oil & gas All Other C&I (ex. PPP) CRE Resi. mortgage & consumer Nonperforming Assets & NPA Ratio . Criticized loans: 3.4% of total loans as of 06.30.20: $1,250mm. 220 $202 . Special mention: 1.5% of total loans: $576mm. . Classified: 1.8% of total loans. $674mm as of 06.30.20. $151 $115 $122 . Nonaccrual loans: 0.48% of total loans as of 06.30.20. $93 $179mm as of 06.30.20. $ $ in millions 0.41% . Q-o-Q increase largely due to inflows of oil & gas and 0.33% CRE loans, partially offset by pay-offs and charge-offs of 0.31% 0.27% 0.23% C&I loans. 0 12.31.17 12.31.18 12.31.19 03.31.20 06.30.20 . Accruing loans 30-89 days past due: 0.30% of total Nonaccrual loans OREO & other NPA NPAs/Total assets loans as of 06.30.20. $113mm as of 06.30.20. Nonaccrual loans prior to January 1, 2020 include only Non-PCI nonaccrual loans due to adoption of ASU 2016-13 on January 1, 2020. 14

2Q20: Record Deposits of $40.7 billion Deposit Mix as of 06.30.20: $40.7 billion . EOP loan-to-deposit ratio of 91.5% as of 06.30.20. ($ in billions) . EOP deposit growth of 5% Q-o-Q (+21% LQA). . Avg. deposit growth of 6% Q-o-Q (+26% LQA). $9.3 . Growth in avg. DDA: $2.4bn (+87% LQA). Avg. DDA 23% $13.9 increased to 34% of total deposits, up from 30% in 1Q20. 34% . Growth driven by strong growth from consumer and small $7.5 business commercial customers, and PPP funds held in 18% deposit accounts. $10.0 . Intentional run-off of higher-cost balances. 25% . Continued decrease in deposit costs: repricing of maturing CDs to lower rates, as well as further run-off of higher-cost DDA MMDA IB Checking & Savings Time balances. Average Deposits . Cost of total deposits: 0.47% avg. rate in 2Q; spot rate as of $39.9 06.30.20: 0.39%. $37.4 $37.5 40 $36.5 $40.0 $35.3 +26% . Cost of IB deposits: 0.71% avg. rate in 2Q; spot rate as of +13% +10% +1% 35 9.6 $35.0 06.30.20: 0.59%. 10.2 10.3 30 9.9 10.3 $30.0 6.9 . Domestic CD spot rate as of 06.30.20: 1.08%. Future 25 7.1 $25.0 7.3 7.2 7.6 maturities of CDs with interest rate >1.00%: 20 $20.0 9.9 . 3Q20: $2.0bn @ blended rate of 1.56%. $15.0 15 $ in billions 8.3 8.6 9.0 7.9 . 4Q20: $1.4bn @ blended rate of 1.45%. 10 $10.0 13.5 . 1Q21: $1.3bn @ blended rate of 1.26%. 5 10.2 10.7 11.0 11.1 $5.0 0 $- . Originations & renewals of CDs in 2Q20: $4.0bn @ blended 2Q19 3Q19 4Q19 1Q20 2Q20 rate of 0.43%. DDA MMDA IB Checking & Savings Time LQA average deposit growth . Compared to $4.6bn @ blended rate of 1.10% in 1Q20. . Q-o-Q decrease in rate reflects fed funds rate cuts in March. 15

2Q20: Summary Income Statement 2Q20 vs. 1Q20 $ in millions, except per share data 2Q20 1Q20 $ Change % Change Notable Items Net Interest Income $ 343.8 $ 362.7 $ (18.9) -5% Fee income & net gains on sales of . Gains on sales of AFS debt securities of 52.2 54.4 (2.2) -4% loans* $10mm, driven by $132mm in sales of Gains on sales of AFS debt securities 9.6 1.5 8.1 530% municipal bonds in 2Q20. Other (3.2) (1.9) (1.3) NM . Debt extinguishment costs of $9mm. Total Noninterest Income* $ 58.6 $ 54.0 $ 4.6 8% Prepaid $150mm of repurchase Total Revenue $ 402.4 $ 416.8 $ (14.3) -3% agreements in 2Q20. Adjusted noninterest expense $ 153.3 $ 160.6 $ (7.3) -5% . Amortization of tax credit & other Debt extinguishment costs 8.7 - 8.7 NM investments: $25mm in 2Q20 vs. $17mm Amortization of tax credit & other 25.7 18.3 7.4 41% in 1Q20. investments + core deposit intangibles Total Noninterest Expense $ 187.7 $ 178.9 $ 8.8 5% . Q-o-Q change reflects valuation Provision for credit losses on loans $ 94.3 $ 74.7 19.7 26% adjustments on other investments, Provision for credit losses on unfunded and timing of tax credit investment. 8.1 (0.8) 8.9 NM commitments . 2Q20 effective tax rate: 12%, Provision for credit losses $ 102.4 $ 73.9 $ 28.6 39% unchanged from 1Q20. Income tax expense 12.9 19.2 (6.3) -33% Effective tax rate 12% 12% 0% . Q-o-Q weighted average diluted shares Net Income $ 99.4 $ 144.8 $ (45.5) -31% decreased by 2% due to stock repurchase activity in Mar. 2020. Diluted EPS $ 0.70 $ 1.00 $ (0.30) -30% Weigh. avg. diluted shares (in mm) 141.8 145.3 (3.5) -2% * See slide 18 for noninterest income detail by category. 16

2Q20: Net Interest Income & Net Interest Margin Net Interest Income & Net Interest Margin . 2Q20 NII: $344mm, down by $19mm or -5% Q-o-Q. 2Q included $21mm of PPP loan income, net of interest expense on PPPLF. 400 $367 $370 $368 $363 . 2Q20 NIM: 3.04%, down 40 bps Q-o-Q. 350 $344 300 . Impact to NIM from change in yields & rates (Q-o-Q): 250 . -65 bps from lower loan yields. 200 3.73% . -10 bps from lower other earning asset yields. 150 3.59% $ $ in millions 3.47% 3.44% . -8 bps from balance sheet mix shift. 100 3.04% 50 . +35 bps from lower funding costs. 0 . +8 bps of impact from PPP. 2Q19 3Q19 4Q19 1Q20 2Q20 . Loan repricing front-loaded in quarter: 31% of portfolio linked NII Net Interest Margin to LIBOR (predominantly 1M) and 27% linked to Prime rates. Average Loan Yield Relative to Prime & 1M LIBOR Avg. Cost of Deposits Relative to Fed Funds 6.00% 6.00% 2.50% 5.50% 5.30% 2.30% 4.91% 5.00% 4.71% 5.00% 5.28% 5.11% 1.83% 4.83% 3.98% 4.00% 4.00% 4.42% 3.00% 2.44% 3.00% 2.17% 3.25% 1.42% 1.79% 2.00% 1.41% 2.00% 1.57% 1.49% 1.34% 1.11% 1.17% 1.05% 0.94% 0.71% 1.00% 0.36% 1.00% 0.82% 0.47% 0.25% 0.00% 0.00% 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 Avg. cost of deposits Avg. cost of IB deposits Avg. loan yield Avg. Prime Rate Avg. 1M LIBOR Rate Avg. Fed Funds Rate 17

2Q20: Noninterest Income Detail Fee Income & Net Gains on Sales of Loans * Total noninterest income: $59mm in 2Q20 vs. 60.0 $54mm in 1Q20. $54.4 $52.5 $52.2 $50.9 . Fee income and net gains on sales of loans: $48.9 50.0 $52mm in 2Q20, down $2mm or -4% Q-o-Q. 14.1 11.6 22% 14.1 11.8 11.1 . Decrease reflects lower customer transaction 40.0 volumes across several fee income lines of 3.1 6% 5.4 business. 3.8 4.8 4.2 4.6 9% 30.0 6.0 7.8 . Lending fees: $22mm in 2Q20, increased by 7.3 8.1 10.9 21% $6mm Q-o-Q, primarily due to an increase in the valuation of warrants received as part of lending $ $ in millions 9.8 9.6 10.4 20.0 9.7 relationships. 10.0 21.9 42% 17.2 16.4 15.0 15.8 Interest Rate Contracts and Other Derivative Income Detail 0.0 ($ in millions) 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 2Q20 Mix Revenue $ 11.8 $ 11.1 $ 14.1 $ 14.1 $ 11.6 Lending fees Deposit account fees Foreign exchange income CVA (1.4) (2.7) 3.7 (7.0) (5.5) Wealth management fees IRC revenue Net gains on sales of loans Total $ 10.4 $ 8.4 $ 17.8 $ 7.1 $ 6.1 * Fee income excludes: credit valuation adjustment (“CVA”) related to interest rate contracts (“IRC”) and other derivatives; net gains on . Revenue – interest rate contracts and other derivatives transaction fees. sales of securities; gains on sale of fixed assets, and other income. . CVA – related to interest rate contracts and other derivatives. 18

2Q20: Operating Expense & Efficiency Adjusted* Noninterest Expense Noninterest Expense & Efficiency Ratio 180.0 $165 $165.3 $160 $159 $161 70.0% $159.8 $158.6 $160.6 $170 $153 160.0 $153.3 26.7 38.0% 37.7% 38.3% 38.5% 38.1% 24.8 26.8 24.2 140.0 21.5 13% 3.2 2.1 1.2 5.4 2.6 6.0 6.1 1.4 1% 3.6 5.4 4% 9.7 11.2 10.0 120.0 9.9 11.8 8% 17.4 17.1 17.1 17.9 16.2 11% $- 0.0% 100.0 2Q19 3Q19 4Q19 1Q20 2Q20 Adj.* noninterest expense Adj.* efficiency ratio 80.0 $ $ in millions 60.0 100.5 97.8 101.1 102.0 97.0 63% . 2Q20 total noninterest expense: $188mm, increase 40.0 of 5% Q-o-Q. . 2Q20 adj.* noninterest expense: $153mm, decrease 20.0 of 5% Q-o-Q and down 4% Y-o-Y. 0.0 . Largest Q-o-Q decrease in compensation and 2Q19 3Q19 4Q19 1Q20 2Q20 2Q20 Mix employee benefits expense, followed by other Comp and employee benefits Occupancy & Equipment operating and legal expense. Computer software & Data processing Deposit & loan related Consulting Other operating expense . Notable decreases in other operating expense: marketing promotion expenses, travel expense. *See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s Earnings Press Releases. 19

APPENDIX

Appendix: GAAP to Non-GAAP Reconciliation EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands, except per share data) (unaudited) During the first and second quarters of 2019, the Company recorded a $7.0 million pre-tax impairment charge and reversed $30.1 million of certain previously claimed tax credits related to the DC Solar tax credit investments (“DC Solar”), respectively. Management believes that presenting the computations of the adjusted net income, adjusted diluted earnings per common share, adjusted return on average assets and adjusted return on average equity that adjust for the above discussed non-recurring items provides clarity to financial statement users regarding the ongoing performance of the Company and allows comparability to prior periods. Three Months Ended June 30, 2020 March 31, 2020 June 30, 2019 Net income (a) $ 99,352 $ 144,824 $ 150,380 Add: Reversal of certain previously claimed tax credits related to DC Solar — — 30,104 Adjusted net income (b) $ 99,352 $ 144,824 $ 180,484 Diluted weighted-average number of shares outstanding 141,827 145,285 146,052 Diluted EPS $ 0.70 $ 1.00 $ 1.03 Diluted EPS impact of reversal of certain previously claimed tax credits related to DC Solar — — 0.21 Adjusted diluted EPS $ 0.70 $ 1.00 $ 1.24 Average total assets (c) $ 48,228,914 $ 44,755,509 $ 41,545,441 Average stockholders’ equity (d) $ 4,982,446 $ 5,022,005 $ 4,684,348 Return on average assets (1) (a)/(c) 0.83 % 1.30 % 1.45 % Adjusted return on average assets (1) (b)/(c) 0.83 % 1.30 % 1.74 % Return on average equity (1) (a)/(d) 8.02 % 11.60 % 12.88 % Adjusted return on average equity (1) (b)/(d) 8.02 % 11.60 % 15.45 % (1) Annualized. 21

Appendix: GAAP to Non-GAAP Reconciliation EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Adjusted efficiency ratio represents adjusted noninterest expense divided by revenue. Adjusted pre-tax, pre-provision profitability ratio represents revenue less adjusted noninterest expense, divided by average total assets. Adjusted noninterest expense excludes the amortization of tax credit and other investments, the amortization of core deposit intangibles, and the extinguishment cost on repurchase agreements. 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. Three Months Ended June 30, 2020 March 31, 2020 June 30, 2019 Net interest income before provision for credit losses (a) $ 343,775 $ 362,707 $ 367,326 Total noninterest income 58,637 54,049 52,759 Total revenue (b) $ 402,412 $ 416,756 $ 420,085 Total noninterest expense (c) $ 187,696 $ 178,876 $ 177,663 Less: Amortization of tax credit and other investments (24,759) (17,325) (16,739) Amortization of core deposit intangibles (931) (953) (1,152) Repurchase agreements’ extinguishment cost (8,740) — — Adjusted noninterest expense (d) $ 153,266 $ 160,598 $ 159,772 Efficiency ratio (c)/(b) 46.64 % 42.92 % 42.29 % Adjusted efficiency ratio (d)/(b) 38.09 % 38.54 % 38.03 % Adjusted pre-tax, pre-provision income (b)-(d) = (e) $ 249,146 $ 256,158 $ 260,313 Average total assets (f) $ 48,228,914 $ 44,755,509 $ 41,545,441 Adjusted pre-tax, pre-provision profitability ratio (1) (e)/(f) 2.08 % 2.30 % 2.51 % Adjusted noninterest expense/average assets (1) (d)/(f) 1.28 % 1.44 % 1.54 % (1) Annualized. 22

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 equity and tangible equity to tangible assets ratio are non-GAAP financial measures. Tangible equity and tangible assets represent stockholders’ equity and total assets, respectively, 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 such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion. (1) Includes core deposit intangibles and mortgage servicing assets. 23

Appendix: GAAP to Non-GAAP Reconciliation (cont’d) EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Adjusted return on average tangible equity represents adjusted tangible net income divided by average tangible equity. Adjusted tangible net income excludes the after-tax impacts of the amortization of core deposit intangibles and mortgage servicing assets, impairment charge and the reversal of certain previously claimed tax credits related to DC Solar (where applicable). Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion. (1) Includes core deposit intangibles and mortgage servicing assets. (2) Applied statutory rate of 28.35% for the three and six months ended June 30, 2020, and the three months ended March 31, 2020. Applied statutory rate of 29.56% for the three and six months ended June 30, 2019. (3) Included in Amortization of tax credit and other investments on the Consolidated Statement of Income. (4) Annualized. 24

XML

Cover Page	Jul. 23, 2020
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jul. 23, 2020
Entity Registrant Name	EAST WEST BANCORP, INC.
Entity Central Index Key	0001069157
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity File Number	000-24939
Entity Tax Identification Number	95-4703316
Entity Address, Address Line One	135 N Los Robles Ave.
Entity Address, Address Line Two	7th Floor
Entity Address, City or Town	Pasadena
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	91101
City Area Code	626
Local Phone Number	768-6000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.001 Par Value
Trading Symbol	EWBC
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false