Open the filing on EDGAREAST WEST BANCORP REPORTS NET INCOME FOR FIRST QUARTER OF 2026 OF $358 MILLION AND DILUTED EARNINGS PER SHARE OF $2.57, BOTH UP 23% YEAR-OVER-YEAR,
DRIVEN BY RECORD LEVELS OF QUARTERLY FEE INCOME, LOANS AND DEPOSITS
Pasadena, California - April 21, 2026 - East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, reported first quarter 2026 net income of $358 million, or $2.57 per diluted share. Total loans and deposits both reached new records as of March 31, 2026, at $58.1 billion and $68.9 billion, respectively. Return on average assets was 1.79%, return on average common equity was 16.0%, and book value per share grew 14% year-over-year.
“East West reported record loans, deposits, and fee income in the first quarter, generating a 17% return on average tangible common equity,” said Dominic Ng, Chairman and Chief Executive Officer. “Our balance sheet growth reflects the strength of our customer relationships and the success of the clients we serve. This performance was complemented by 12% year-over-year growth in fee income, driven by notable strength in wealth management and deposit account fees.”
“Credit performance remained resilient, with net charge-offs and nonperforming asset levels stable, while we bolstered our allowance for loan losses to 1.44% of loans,” Ng continued. “We continued to operate from a position of capital strength, which enabled us to support our customers with confidence while also returning capital to our shareholders. Looking ahead, we are well positioned to deliver top-tier shareholder returns through industry-leading profitability, strong balance sheet growth, and prudent risk management,” concluded Ng.
FINANCIAL HIGHLIGHTS
| Three Months Ended | March 31, 2026 % Change | |
|---|
| ($ in millions, except per share data) | March 31, 2026 | Dec. 31, 2025 | | March 31, 2025 | Qtr-o-Qtr | Yr-o-Yr |
|---|
| Total Revenue | $774 | $758 | | $692 | 2% | | 12% | |
|---|
| Pre-tax, Pre-provision Income | 493 | 497 | | 440 | (1) | | 12 | |
|---|
| Net Income | 358 | 356 | | 290 | - | | 23 | |
|---|
| Diluted Earnings per Share | $2.57 | $2.55 | | $2.08 | 1 | | 23 | |
|---|
| Book Value per Share | $65.70 | $64.68 | | $57.54 | 2 | | 14 | |
|---|
| Tangible Book Value per Share | $62.27 | $61.27 | | $54.13 | 2% | | 15% | |
|---|
| Return on Average Assets | 1.79% | 1.77% | | 1.56% | 2 bps | 23 bps |
|---|
| Return on Average Common Equity | 16.04% | 16.11% | | 14.96% | -7 bps | 108 bps |
|---|
| Return on Average Tangible Common Equity | 16.92% | 17.03% | | 15.92% | -11 bps | 100 bps |
|---|
| Total Stockholders’ Equity to Assets Ratio | 10.86% | 11.06% | | 10.41% | -20 bps | 45 bps |
|---|
| Tangible Common Equity Ratio | 10.35% | 10.54% | | 9.85% | -19 bps | 50 bps |
|---|
| Total Assets | $82,886 | $80,435 | | $76,165 | 3% | | 9% | |
|---|
Return on average tangible common equity, tangible book value per share, and tangible common equity ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 12.
Pre-tax, pre-provision income is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP financial measures in Table 11.
BALANCE SHEET
- Assets - Total assets were $82.9 billion as of March 31, 2026, an increase of $2.5 billion, or 3%, from $80.4 billion as of December 31, 2025. Year-over-year, total assets grew $6.7 billion, or 9%, from $76.2 billion as of March 31, 2025.
First quarter 2026 average interest-earning assets of $78.0 billion were up $1.3 billion, or 2%, from $76.6 billion in the fourth quarter, primarily reflecting a $1.4 billion increase in average total loans outstanding, while $0.4 billion of average securities growth was driven by a $0.5 billion decrease in average interest-bearing cash and deposits with banks.
- Loans - Total loans reached a record $58.1 billion as of March 31, 2026, an increase of $1.2 billion, or 2%, from $56.9 billion as of December 31, 2025. Year-over-year, total loans were up $3.9 billion, or 7%, from $54.3 billion as of March 31, 2025.
First quarter 2026 average total loans grew by $1.4 billion, or 3%, to $57.1 billion, from $55.6 billion in the fourth quarter of 2025.
- Deposits - Total deposits reached a record $68.9 billion as of March 31, 2026, an increase of $1.8 billion from $67.1 billion as of December 31, 2025, primarily reflecting growth in money market and noninterest-bearing demand deposits. Noninterest-bearing deposits made up 25% of total deposits as of March 31, 2026. Year-over-year, total deposits increased $5.9 billion, or 9%, from $63.1 billion as of March 31, 2025.
First quarter 2026 total average deposits of $67.5 billion increased $0.7 billion from the fourth quarter of 2025, primarily reflecting growth in average noninterest-bearing demand, money market, and checking deposits, partly offset by a decrease in average time deposits.
- Capital - As of March 31, 2026, stockholders’ equity was $9.0 billion, up 1% quarter-over-quarter. The total stockholders’ equity to assets ratio was 10.86% as of March 31, 2026, compared with 11.06% as of December 31, 2025.
Book value per share was $65.70 as of March 31, 2026, up $1.02, or 2% quarter-over-quarter. As of March 31, 2026, tangible book value per share was $62.27, up $1.00, or 2% quarter-over-quarter.
East West’s regulatory capital ratios are well in excess of requirements for well-capitalized institutions, and well above regional bank averages.
CAPITAL STRENGTH
Capital metrics as of March 31, 2026, December 31, 2025, and March 31, 2025 are presented below.
| EWBC Capital | |
| ($ in millions) | March 31, 2026 | December 31, 2025 | March 31, 2025 |
| Risk-Weighted Assets (“RWA”) | $58,559 | $57,760 | $55,366 |
| Risk-based capital ratios: | | | |
| Total capital ratio | 16.45% | 16.41% | 15.63% |
| CET1 capital ratio | 15.13% | 15.10% | 14.32% |
| Tier 1 capital ratio | 15.13% | 15.10% | 14.32% |
| Leverage ratio | 10.95% | 10.95% | 10.46% |
| Total stockholders’ equity to assets ratio | 10.86% | 11.06% | 10.41% |
| Tangible common equity ratio | 10.35% | 10.54% | 9.85% |
(a)The Company’s March 31, 2026 regulatory capital ratios and RWA are preliminary.
(b)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.
(c)Tangible common equity ratio is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP measures in Table 12.
Tangible book value per share is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP measures in Table 12.
OPERATING RESULTS
First Quarter Earnings - First quarter 2026 net income was $358 million, an increase of $2 million from the fourth quarter, and 23% from $290 million for the first quarter of 2025. First quarter 2026 diluted earnings per share (“EPS”) was $2.57, an increase of 1% from $2.55 per diluted share for the fourth quarter, and an increase of 23% from $2.08 per diluted share for the year-ago quarter.
First Quarter 2026 Compared to Fourth and First Quarter 2025
Net Interest Income and Net Interest Margin
Net interest income totaled $671 million in the first quarter, an increase of $13 million, or 2%, from $658 million in the prior quarter and $71 million, or 12% from the first quarter of 2025. Net interest margin was 3.49%, an increase of 8 basis points from the prior quarter and 14 basis points from the year-ago quarter.
- The average loan yield was 6.11%, down 9 basis points from the prior quarter. The average interest-earning asset yield was 5.49%, down 6 basis points from the prior quarter.
- The average cost of interest-bearing deposits was 2.84%, a 21 basis point decrease from the prior quarter. The average cost of funds was 2.21%, down 16 basis points from the prior quarter.
Noninterest Income
Noninterest income totaled a record $103 million in the first quarter, an increase of $2 million, or 2% from the fourth quarter and $10 million, or 11% from the first quarter of 2025. Record fee income of $99 million increased $12 million, or 13% from $87 million in the prior quarter and $11 million, or 12% from the first quarter of 2025.
- Wealth management fees, customer derivative income, commercial and consumer deposit-related fees, and foreign exchange income increased a combined $14 million in the first quarter, reflecting higher customer activity.
- Lending and loan servicing fees decreased $2 million in the first quarter, primarily due to lower syndication fees.
- Other income decreased $6 million quarter-over-quarter, primarily reflecting valuation adjustments on loans held-for-sale.
- Other investment income decreased $4 million quarter-over-quarter, primarily due to recoveries related to the Company’s investment in DC Solar in the prior quarter.
Noninterest Expense
Total noninterest expense was $280 million in the first quarter, which included $22 million of amortization for tax credit and Community Reinvestment Act investments. Total operating noninterest expense was $258 million, an increase of $14 million from the fourth quarter and $22 million, or 9%, from the first quarter of 2025.
- Compensation and employee benefits were $173 million, an increase of $21 million, reflecting seasonal factors, stock-based compensation associated with long-term incentive programs, and higher incentive compensation.
- Deposit insurance premiums and regulatory assessments were $9 million, an increase of $5 million quarter-over-quarter, reflecting a higher FDIC special assessment reversal in the prior quarter.
- Other operating expense was $37 million, a decrease of $5 million, primarily reflecting lower legal and professional expenses.
- Other real estate owned (“OREO”) expense decreased $7 million in the first quarter.
- The efficiency ratio was 36.2% in the first quarter, compared with 34.5% in the prior quarter.
TAX RELATED ITEMS
First quarter 2026 income tax expense was $100 million and the effective tax rate was 21.8%, compared with income tax expense of $111 million and 23.7% in the fourth quarter of 2025, primarily due to discrete tax benefits related to stock-based compensation in the first quarter.
Fee income includes commercial and consumer deposit-related fees, lending and loan servicing fees, foreign exchange income, wealth management fees, and customer derivative income. Refer to Table 3 for additional fee and noninterest income information.
ASSET QUALITY
As of March 31, 2026, the credit quality of our loan portfolio remained stable.
- First quarter 2026 net charge-offs were $12 million, or annualized 0.09% of average loans held-for-investment (“HFI”), compared with $12 million, or annualized 0.08% of average loans HFI, for the fourth quarter of 2025.
- The nonperforming assets ratio was 0.26% of total assets as of March 31, 2026, unchanged from the prior quarter. Nonperforming assets increased $8 million to $216 million as of March 31, 2026, from $208 million as of December 31, 2025.
- The allowance for loan losses increased to $836 million, or 1.44% of loans HFI, as of March 31, 2026, compared with $810 million, or 1.42% of loans HFI, as of December 31, 2025, driven by loan growth and a change in portfolio mix.
- First quarter 2026 provision for credit losses was $36 million, compared with $30 million in the fourth quarter of 2025.
DIVIDEND PAYOUT AND CAPITAL ACTIONS
East West’s Board of Directors has declared the second quarter 2026 dividend for the Company’s common stock. The common stock cash dividend of $0.80 per share is payable on May 18, 2026 to shareholders of record as of May 4, 2026.
East West repurchased approximately 938,000 shares of common stock during the first quarter of 2026 for $98 million. $117 million of East West’s share repurchase authorization remains available.
About East West
East West provides financial services that help customers reach further and connect to new opportunities. East West Bancorp, Inc. is a public company (Nasdaq: “EWBC”) with total assets of $82.9 billion as of March 31, 2026. The Company’s wholly-owned subsidiary, East West Bank, is the largest independent bank headquartered in Southern California, and operates over 110 locations in the United States and Asia. The Bank’s markets in the United States include California, Georgia, Illinois, Massachusetts, Nevada, New York, Texas, and Washington. For more information on East West, visit www.eastwestbank.com.
Conference Call
East West will host a conference call to discuss first quarter 2026 earnings with the public on Tuesday, April 21, 2026, at 2:00 p.m. PT/5:00 p.m. ET. The public and investment community are invited to listen as management discusses first quarter 2026 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, a listen-only live broadcast of the call, and information to access a replay one hour after the call will all be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.
Forward-Looking Statements
Forward-looking statements notice
Certain matters set forth herein (including any exhibits hereto) contain “forward-looking statements” intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. East West Bancorp, Inc. (referred to herein on an unconsolidated basis as “East West” and on a consolidated basis as the “Company,” “we,” “our” or “EWBC”) may make forward-looking statements in other documents that it files with, or furnishes to, the United States (“U.S.”) Securities and Exchange Commission (“SEC”) and management may make forward-looking statements to analysts, investors, media members and others. Forward-looking statements are those that do not relate to historical facts and that are based on current assumptions, beliefs, estimates, expectations and projections, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Forward-looking statements may relate to various matters, including the Company’s financial condition, results of operations, plans, objectives, future performance, business or industry, and usually can be identified by the use of forward-looking words, such as “anticipates,” “assumes,” “believes,” “can,” “continues,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “likely,” “may,” “might,” “objective,” “plans,” “potential,” “projects,” “remains,” “should,” “target,” “trend,” “will,” “would,” or similar expressions or variations thereof, and the negative thereof, although these terms are not the exclusive means of identifying such statements. You should not place undue reliance on forward-looking statements, as they are subject to known and unknown risks and uncertainties.
Forward-looking statements notice
Factors that might cause future results to differ materially from historical performance and any forward-looking statements include, but are not limited to: changes in local, regional and global business, economic and political conditions and natural or geopolitical events; the soundness of other financial institutions and the impacts related to or resulting from bank failures and other industry volatility, including potential increased regulatory requirements, Federal Deposit Insurance Corporation (“FDIC”) insurance premiums and assessments, and deposit withdrawals; changes in trade, tariff, tax, monetary and fiscal policies; changes in immigration laws and enforcement practices, or travel and visa related policies; current or potential disputes between the U.S., the People’s Republic of China and other countries; changes in the commercial and consumer real estate markets; changes in consumer or commercial spending, savings and borrowing habits, patterns and behaviors; the Company’s ability to compete effectively against financial institutions and other entities, including as a result of emerging technologies; the success and timing of the Company’s business strategies; the Company’s ability to retain key officers and employees; changes in market interest rates, competition, regulatory requirements and product mix; changes in the Company’s costs of operation, compliance and expansion; disruption, failure in, or breach of, the Company’s operational or security systems or infrastructure, or those of third party vendors with which the Company does business, including as a result of cyber-attacks, and the disclosure or misuse of confidential information; the adequacy of the Company’s risk management framework; future credit quality and performance, including expectations regarding future credit losses and allowance levels; adverse changes to the Company’s credit ratings; legal proceedings, regulatory investigations and their resolution; the Company’s capital requirements and its ability to generate capital internally or raise capital on favorable terms; the impact on the Company’s liquidity due to changes in its ability to receive dividends from subsidiaries; any strategic acquisitions or divestitures; and the introduction of new or expanded products and services or other events that may directly or indirectly result in a negative impact on the financial performance of the Company and its customers.
For a more detailed discussion of some of the factors that might cause future results to differ materially from historical performance and any forward-looking statements, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 27, 2026 under the heading Item 1A. Risk Factors and the Company’s subsequent filings with the SEC. Forward-looking statements speak only as of the date they are made and are based solely on information then actually known to the Company. The Company does not undertake, and expressly disclaims any obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of such statements, except as required by law.
| | | | | March 31, 2026% or Basis Point Change |
|---|
| | March 31, 2026 | December 31, 2025 | March 31, 2025 | Qtr-o-Qtr | Yr-o-Yr |
|---|
| Cash and cash equivalents, and deposits with banks | $4,449,368 | $4,204,328 | $3,481,072 | 5.8% | 27.8% |
|---|
| Securities purchased under resale agreements (“resale agreements”) | 425,000 | 425,000 | 425,000 | - | - |
|---|
| Available-for-sale (“AFS”) debt securities (amortized cost of $14,546,038, $13,619,781 and $12,962,469) | 14,093,483 | 13,212,220 | 12,384,912 | 6.7 | 13.8 |
|---|
| Held-to-maturity (“HTM”) debt securities, at amortized cost (fair value of $2,453,003, $2,479,746 and $2,435,292) | 2,858,978 | 2,870,058 | 2,905,341 | (0.4) | (1.6) |
|---|
| Total cash, resale agreements and debt securities | 21,826,829 | 20,711,606 | 19,196,325 | 5.4 | 13.7 |
|---|
| Loans held-for-sale (“HFS”) | 27,585 | 20,976 | - | 31.5 | 100.0 |
|---|
| Loans held-for-investment (“HFI”) (net of allowance for loan losses of $835,874, $809,773 and $734,856) | 57,264,875 | 56,068,399 | 53,517,878 | 2.1 | 7.0 |
|---|
| Affordable housing partnership, tax credit and Community Reinvestment Act (“CRA”) investments, net | 983,976 | 969,492 | 930,058 | 1.5 | 5.8 |
|---|
| Goodwill | 465,697 | 465,697 | 465,697 | - | - |
|---|
| Operating lease right-of-use assets | 134,129 | 125,407 | 80,239 | 7.0 | 67.2 |
|---|
| Other assets | 2,183,061 | 2,073,420 | 1,974,816 | 5.3 | 10.5 |
|---|
| Total assets | $82,886,152 | $80,434,997 | $76,165,013 | 3.0% | 8.8% |
|---|
| Deposits | $68,919,555 | $67,082,701 | $63,052,105 | 2.7% | 9.3% |
|---|
| Federal Home Loan Bank (“FHLB”) advances | 3,000,000 | 3,000,000 | 3,500,000 | | - | (14.3) |
|---|
| Securities sold under repurchase agreements (“repurchase agreements”) | 494,027 | - | 270,111 | 100.0 | 82.9 |
|---|
| Long-term debt and finance lease liabilities | 35,545 | 35,645 | 35,880 | (0.3) | (0.9) |
|---|
| Operating lease liabilities | 148,731 | 138,206 | 87,157 | 7.6 | 70.6 |
|---|
| Accrued expenses and other liabilities | 1,288,859 | 1,279,243 | 1,290,295 | 0.8 | (0.1) |
|---|
| Total liabilities | 73,886,717 | 71,535,795 | 68,235,548 | 3.3 | 8.3 |
|---|
| Stockholders’ equity | 8,999,435 | 8,899,202 | 7,929,465 | 1.1 | 13.5 |
|---|
| Total liabilities and stockholders’ equity | $82,886,152 | $80,434,997 | $76,165,013 | 3.0% | 8.8% |
|---|
| Total cash, resale agreements and debt securities/total assets | 26.33% | | 25.75% | | 25.20% | | 58bps | 113bps |
|---|
| Total stockholders’ equity to assets ratio | 10.86% | | 11.06% | | 10.41% | | (20) | 45 |
|---|
| Tangible common equity (“TCE”) ratio | 10.35% | | 10.54% | | 9.85% | | (19)bps | 50bps |
|---|
| Book value per share | $65.70 | $64.68 | $57.54 | 1.6% | 14.2% |
|---|
| Tangible book value per share | $62.27 | $61.27 | $54.13 | 1.6 | 15.0 |
|---|
| Number of common shares at period-end | 136,979 | 137,579 | 137,802 | (0.4)% | (0.6)% |
|---|
| EAST WEST BANCORP, INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE SHEET |
| ($ and shares in thousands, except per share data) |
| (unaudited) |
| Table 1 | | | | | |
| Assets | | | | | |
| Liabilities and Stockholders’ Equity | | | | | |
(1)The TCE ratio and the tangible book value are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 12.
| | | | | March 31, 2026% Change |
|---|
| | March 31, 2026 | December 31, 2025 | March 31, 2025 | Qtr-o-Qtr | Yr-o-Yr |
|---|
| Commercial and industrial (“C&I”) | $19,550,953 | $18,650,755 | $17,460,744 | 4.8% | 12.0% |
|---|
| Commercial real estate (“CRE”): | | | | | |
|---|
| CRE | 15,491,057 | 15,407,088 | 14,868,361 | 0.5 | 4.2 |
|---|
| Multifamily residential | 5,129,247 | 5,112,328 | 5,007,969 | 0.3 | 2.4 |
|---|
| Construction and land | 811,999 | 742,357 | 653,630 | 9.4 | 24.2 |
|---|
| Total CRE | 21,432,303 | 21,261,773 | 20,529,960 | 0.8 | 4.4 |
|---|
| Residential mortgage: | | | | | |
|---|
| Single-family residential | 15,119,709 | 15,002,549 | 14,383,562 | 0.8 | 5.1 |
|---|
| Home equity lines of credit (“HELOCs”) | 1,945,867 | 1,911,897 | 1,827,837 | 1.8 | 6.5 |
|---|
| Total residential mortgage | 17,065,576 | 16,914,446 | 16,211,399 | 0.9 | 5.3 |
|---|
| Other consumer | 51,917 | 51,198 | 50,631 | 1.4 | 2.5 |
|---|
| EAST WEST BANCORP, INC. AND SUBSIDIARIES |
| TOTAL LOANS AND DEPOSITS DETAIL |
| ($ in thousands) |
| (unaudited) |
| Table 2 | | | | | |
| Loans: | | | | | |
| Commercial: | | | | | |
| Consumer: | | | | | |
| Total loans HFI | 58,100,749 | 56,878,172 | 54,252,734 | 2.1 | 7.1 |
| Loans HFS | 27,585 | 20,976 | - | 31.5 | 100.0 |
| Total loans | 58,128,334 | 56,899,148 | 54,252,734 | 2.2 | 7.1 |
| Allowance for loan and lease losses (“ALLL”) | (835,874) | (809,773) | (734,856) | 3.2 | 13.7 |
| Net loans | $57,292,460 | $56,089,375 | $53,517,878 | 2.1% | 7.1% |
| Deposits by product: | | | | | |
| Noninterest-bearing demand | $17,480,959 | $16,697,099 | $15,169,775 | 4.7% | 15.2% |
| Interest-bearing checking | 8,069,468 | 7,989,255 | 7,591,847 | 1.0 | 6.3 |
| Money market | 16,226,097 | 15,439,729 | 14,885,732 | 5.1 | 9.0 |
| Savings | 1,731,547 | 1,671,804 | 1,740,044 | 3.6 | (0.5) |
| Time deposits | 25,411,484 | 25,284,814 | 23,664,707 | 0.5 | 7.4 |
| Total deposits | $68,919,555 | $67,082,701 | $63,052,105 | 2.7% | 9.3% |
| Deposits by segment/region: | | | | | |
| Consumer and Business Banking - U.S. | $35,847,814 | $34,494,368 | $33,023,738 | 3.9% | 8.6% |
| Commercial Banking - U.S. | 24,829,606 | 24,115,647 | 22,569,920 | 3.0 | 10.0 |
| International Branches | 3,906,121 | 3,875,631 | 3,524,223 | 0.8 | 10.8 |
| Treasury and Other - U.S. | 4,336,014 | 4,597,055 | 3,934,224 | (5.7) | 10.2 |
| Total deposits | $68,919,555 | $67,082,701 | $63,052,105 | 2.7% | 9.3% |
| Loan-to-deposit ratio | 84.34% | 84.82% | 86.04% | (48)bps | (170)bps |
(1)Includes $17 million, $26 million and $36 million of net deferred loan fees and net unamortized premiums as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(2)Excludes deposits presented under International Branches.
(3)Deposits of our Hong Kong branch and China subsidiary bank branches are a subset of Commercial Banking segment deposits.
(4)Treasury and Other segment deposits reflect wholesale, public funds, and brokered deposits, primarily managed by the Company’s Treasury department.
| | Three Months Ended | March 31, 2026% Change |
|---|
| | March 31, 2026 | December 31, 2025 | March 31, 2025 | Qtr-o-Qtr | Yr-o-Yr |
|---|
| EAST WEST BANCORP, INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENT OF INCOME |
| ($ and shares in thousands, except per share data) |
| (unaudited) |
| Table 3 | | | | | |
| Interest and dividend income | $1,055,510 | $1,072,863 | $1,031,802 | (1.6)% | 2.3% |
| Interest expense | 384,317 | 415,039 | 431,601 | (7.4) | (11.0) |
| Net interest income before provision for credit losses | 671,193 | 657,824 | 600,201 | 2.0 | 11.8 |
| Provision for credit losses | 36,000 | 30,000 | 49,000 | 20.0 | (26.5) |
| Net interest income after provision for credit losses | 635,193 | 627,824 | 551,201 | 1.2% | 15.2% |
| Noninterest income: | | | | | |
| Commercial and consumer deposit-related fees | 30,619 | 29,495 | 27,075 | 3.8 | 13.1 |
| Lending and loan servicing fees | 26,070 | 28,567 | 26,230 | (8.7) | (0.6) |
| Foreign exchange income | 15,447 | 14,862 | 15,837 | 3.9 | (2.5) |
| Wealth management fees | 22,260 | 11,034 | 13,679 | 101.7 | 62.7 |
| Customer derivative income | 4,595 | 3,427 | 5,539 | 34.1 | (17.0) |
| Total fee income | 98,991 | 87,385 | 88,360 | 13.3 | 12.0 |
| Derivative mark-to-market and credit valuation adjustments | 934 | 1,035 | (1,470) | (9.8) | NM |
| Net gains on AFS debt securities | 616 | 29 | 131 | NM | 370.2 |
| Other investment income | 2,956 | 7,223 | 2,262 | (59.1) | 30.7 |
| Other (loss) income | (941) | 4,758 | 2,819 | NM | NM |
| Total noninterest income | 102,556 | 100,430 | 92,102 | 2.1% | 11.4% |
| Noninterest expense: | | | | | |
| Compensation and employee benefits | 172,665 | 151,892 | 146,435 | 13.7% | 17.9% |
| Occupancy and equipment expense | 18,248 | 17,181 | 15,689 | 6.2 | 16.3 |
| Computer and software related expenses | 14,747 | 15,028 | 13,314 | (1.9) | 10.8 |
| Deposit insurance premiums and regulatory assessments | 8,859 | 3,563 | 10,385 | 148.6 | (14.7) |
| Deposit account expense | 7,533 | 7,977 | 9,042 | (5.6) | (16.7) |
| Other real estate owned (“OREO”) (income) expense | (264) | 7,114 | 4,166 | NM | NM |
| Other operating expense | 36,542 | 41,426 | 37,375 | (11.8) | (2.2) |
| Total operating noninterest expense | 258,330 | 244,181 | 236,406 | 5.8 | 9.3 |
| Amortization of tax credit and CRA investments | 21,984 | 17,124 | 15,742 | 28.4 | 39.7 |
| Total noninterest expense | 280,314 | 261,305 | 252,148 | 7.3 | 11.2 |
| Income before income taxes | 457,435 | 466,949 | 391,155 | (2.0) | 16.9 |
| Income tax expense | 99,639 | 110,678 | 100,885 | (10.0) | (1.2) |
| Net income | $357,796 | $356,271 | $290,270 | 0.4% | 23.3% |
| Earnings per share (“EPS”) | | | | | |
| - Basic | $2.59 | $2.58 | $2.10 | 0.6% | 23.4% |
| - Diluted | $2.57 | $2.55 | $2.08 | 0.7 | 23.4 |
| Weighted-average number of shares outstanding | | | | |
| - Basic | 138,054 | 138,302 | 138,201 | (0.2)% | (0.1)% |
| - Diluted | 138,919 | 139,102 | 139,291 | (0.1) | (0.3) |
NM - Not meaningful.
(1)Includes DC Solar recoveries of $3 million in Other investment income and $700 thousand in Other operating expense for the three months ended December 31, 2025. Includes $1 million of DC Solar recoveries in Amortization of tax credit and CRA investments for the three months ended December 31, 2025.
(2)Includes $6 million and $4 million of additional compensation expense from the change in equity award expense recognition for retirement eligible employees for the three months ended March 31, 2026 and December 31, 2025, respectively.
(3)Includes $1 million and $7 million of FDIC special assessment reversals for the three months ended March 31, 2026 and December 31, 2025, respectively. Includes $833 thousand of FDIC special assessment charges for the three months ended March 31, 2025.
| | Three Months Ended | March 31, 2026% Change |
|---|
| | March 31, 2026 | December 31, 2025 | March 31, 2025 | Qtr-o-Qtr | Yr-o-Yr |
|---|
| C&I | $18,752,867 | $17,747,561 | $16,865,399 | 5.7% | 11.2% |
|---|
| CRE: | | | | | |
|---|
| CRE | 15,424,498 | 15,299,691 | 14,731,881 | 0.8 | 4.7 |
|---|
| Multifamily residential | 5,131,257 | 5,053,711 | 4,965,448 | 1.5 | 3.3 |
|---|
| Construction and land | 766,414 | 742,191 | 675,686 | 3.3 | 13.4 |
|---|
| Total CRE | 21,322,169 | 21,095,593 | 20,373,015 | 1.1 | 4.7 |
|---|
| Residential mortgage: | | | | | |
|---|
| Single-family residential | 15,013,979 | 14,873,723 | 14,238,697 | 0.9 | 5.4 |
|---|
| HELOCs | 1,914,101 | 1,876,303 | 1,811,022 | 2.0 | 5.7 |
|---|
| Total residential mortgage | 16,928,080 | 16,750,026 | 16,049,719 | 1.1 | 5.5 |
|---|
| Other consumer | 51,533 | 47,216 | 49,578 | 9.1 | 3.9 |
|---|
| Total loans | $57,054,649 | $55,640,396 | $53,337,711 | 2.5% | 7.0% |
|---|
| EAST WEST BANCORP, INC. AND SUBSIDIARIES |
| SELECTED AVERAGE BALANCES |
| ($ in thousands) |
| (unaudited) |
| Table 4 | | | | | |
| Loans: | | | | | |
| Commercial: | | | | | |
| Consumer: | | | | | |
| Interest-earning assets | $77,967,079 | $76,643,821 | $72,690,586 | 1.7% | 7.3% |
| Total assets | $81,080,258 | $79,741,088 | $75,624,952 | 1.7% | 7.2% |
| Deposits: | | | | | |
| Noninterest-bearing demand | $16,877,461 | $16,392,284 | $15,104,028 | 3.0% | 11.7% |
| Interest-bearing checking | 7,652,611 | 7,497,730 | 7,749,665 | 2.1 | (1.3) |
| Money market | 16,203,527 | 15,992,899 | 14,833,615 | 1.3 | 9.2 |
| Savings | 1,701,913 | 1,675,200 | 1,752,946 | 1.6 | (2.9) |
| Time deposits | 25,112,122 | 25,273,335 | 23,197,328 | (0.6) | 8.3 |
| Total deposits | $67,547,634 | $66,831,448 | $62,637,582 | 1.1% | 7.8% |
(1)Includes loans HFS.
| | Three Months Ended |
|---|
| | March 31, 2026 | December 31, 2025 |
|---|
| | Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate |
|---|
| Interest-bearing cash and deposits with banks | $3,865,615 | $29,851 | 3.13% | $4,357,892 | $37,839 | 3.44% |
|---|
| Resale agreements | 425,000 | 1,625 | 1.55% | 425,000 | 1,625 | 1.52% |
|---|
| Debt securities: | | | | | | |
|---|
| AFS | 13,609,231 | 148,164 | 4.42% | 13,196,788 | 149,608 | 4.50% |
|---|
| HTM | 2,861,401 | 12,014 | 1.70% | 2,873,386 | 12,195 | 1.68% |
|---|
| Total debt securities | 16,470,632 | 160,178 | 3.94% | 16,070,174 | 161,803 | 3.99% |
|---|
| Loans: | | | | | | |
|---|
| C&I | 18,752,867 | 297,315 | 6.43% | 17,747,561 | 299,013 | 6.68% |
|---|
| CRE | 21,322,169 | 315,923 | 6.01% | 21,095,593 | 322,936 | 6.07% |
|---|
| Residential mortgage | 16,928,080 | 244,884 | 5.87% | 16,750,026 | 246,404 | 5.84% |
|---|
| Other consumer | 51,533 | 756 | 5.95% | 47,216 | 683 | 5.74% |
|---|
| Total loans | 57,054,649 | 858,878 | 6.11% | 55,640,396 | 869,036 | 6.20% |
|---|
| FHLB and FRB stock | 151,183 | 4,978 | 13.35% | 150,359 | 2,560 | 6.75% |
|---|
| Total interest-earning assets | $77,967,079 | $1,055,510 | 5.49% | $76,643,821 | $1,072,863 | 5.55% |
|---|
| Cash and due from banks | 450,219 | | | 439,881 | | |
|---|
| Allowance for loan, lease and securities’ losses | (836,828) | | | (800,633) | | |
|---|
| Other assets | 3,499,788 | | | 3,458,019 | | |
|---|
| Total assets | $81,080,258 | | | $79,741,088 | | |
|---|
| Checking deposits | $7,652,611 | $39,445 | 2.09% | $7,497,730 | $41,613 | 2.20% |
|---|
| Money market deposits | 16,203,527 | 104,878 | 2.62% | 15,992,899 | 114,245 | 2.83% |
|---|
| Savings deposits | 1,701,913 | 3,010 | 0.72% | 1,675,200 | 3,019 | 0.71% |
|---|
| Time deposits | 25,112,122 | 208,079 | 3.36% | 25,273,335 | 228,446 | 3.59% |
|---|
| Total interest-bearing deposits | 50,670,173 | 355,412 | 2.84% | 50,439,164 | 387,323 | 3.05% |
|---|
| Short-term borrowings and federal funds purchased | 567 | 4 | 2.86% | 1,391 | 12 | 3.42% |
|---|
| FHLB advances | 2,577,223 | 25,004 | 3.93% | 2,508,153 | 26,553 | 4.20% |
|---|
| Repurchase agreements | 350,075 | 3,290 | 3.81% | 45,974 | 505 | 4.36% |
|---|
| Long-term debt and finance lease liabilities | 35,566 | 607 | 6.92% | 35,663 | 646 | 7.19% |
|---|
| Total interest-bearing liabilities | $53,633,604 | $384,317 | 2.91% | $53,030,345 | $415,039 | 3.11% |
|---|
| Demand deposits | 16,877,461 | | | 16,392,284 | | |
|---|
| Accrued expenses and other liabilities | 1,521,820 | | | 1,544,144 | | |
|---|
| Stockholders’ equity | 9,047,373 | | | 8,774,315 | | |
|---|
| Total liabilities and stockholders’ equity | $81,080,258 | | | $79,741,088 | | |
|---|
| Total deposits | $67,547,634 | $355,412 | 2.13% | $66,831,448 | $387,323 | 2.30% |
|---|
| EAST WEST BANCORP, INC. AND SUBSIDIARIES |
| QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES |
| ($ in thousands) |
| (unaudited) |
| Table 5 | | | | | | |
| Assets | | | | | | |
| Interest-earning assets: | | | | | | |
| Noninterest-earning assets: | | | | | | |
| Liabilities and Stockholders’ Equity | | | | | | |
| Interest-bearing liabilities: | | | | | | |
| Noninterest-bearing liabilities and stockholders’ equity: | | | | | |
| Interest rate spread | | | 2.58% | | | 2.44% |
| Net interest income and net interest margin | | $671,193 | 3.49% | | $657,824 | 3.41% |
(1)Annualized.
(2)Includes loans HFS.
| Three Months Ended |
|---|
| March 31, 2026 | March 31, 2025 | |
|---|
| Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | |
|---|
| Interest-bearing cash and deposits with banks | $3,865,615 | $29,851 | 3.13% | $4,087,664 | $39,137 | 3.88% |
|---|
| Resale agreements | 425,000 | 1,625 | 1.55% | 425,000 | 1,610 | 1.54% |
|---|
| Debt securities: | | | | | | |
|---|
| AFS | 13,609,231 | 148,164 | 4.42% | 11,766,446 | 135,519 | 4.67% |
|---|
| HTM | 2,861,401 | 12,014 | 1.70% | 2,908,402 | 12,265 | 1.71% |
|---|
| Total debt securities | 16,470,632 | 160,178 | 3.94% | 14,674,848 | 147,784 | 4.08% |
|---|
| Loans: | | | | | | |
|---|
| C&I | 18,752,867 | 297,315 | 6.43% | 16,865,399 | 293,414 | 7.06% |
|---|
| CRE | 21,322,169 | 315,923 | 6.01% | 20,373,015 | 311,386 | 6.20% |
|---|
| Residential mortgage | 16,928,080 | 244,884 | 5.87% | 16,049,719 | 234,891 | 5.94% |
|---|
| Other consumer | 51,533 | 756 | 5.95% | 49,578 | 721 | 5.90% |
|---|
| Total loans | 57,054,649 | 858,878 | 6.11% | 53,337,711 | 840,412 | 6.39% |
|---|
| FHLB and FRB stock | 151,183 | 4,978 | 13.35% | 165,363 | 2,859 | 7.01% |
|---|
| Total interest-earning assets | $77,967,079 | $1,055,510 | 5.49% | $72,690,586 | $1,031,802 | 5.76% |
|---|
| Cash and due from banks | 450,219 | | | 373,827 | | |
|---|
| Allowance for loan, lease and securities’ losses | (836,828) | | | (716,255) | | |
|---|
| Other assets | 3,499,788 | | | 3,276,794 | | |
|---|
| Total assets | $81,080,258 | | | $75,624,952 | | |
|---|
| Checking deposits | $7,652,611 | $39,445 | 2.09% | $7,749,665 | $47,911 | 2.51% |
|---|
| Money market deposits | 16,203,527 | 104,878 | 2.62% | 14,833,615 | 116,018 | 3.17% |
|---|
| Savings deposits | 1,701,913 | 3,010 | 0.72% | 1,752,946 | 3,447 | 0.80% |
|---|
| Time deposits | 25,112,122 | 208,079 | 3.36% | 23,197,328 | 224,605 | 3.93% |
|---|
| Total interest-bearing deposits | 50,670,173 | 355,412 | 2.84% | 47,533,554 | 391,981 | 3.34% |
|---|
| Short-term borrowings and federal funds purchased | 567 | 4 | 2.86% | 428 | 6 | 5.69% |
|---|
| FHLB advances | 2,577,223 | 25,004 | 3.93% | 3,500,001 | 38,866 | 4.50% |
|---|
| Repurchase agreements | 350,075 | 3,290 | 3.81% | 6,684 | 77 | 4.67% |
|---|
| Long-term debt and finance lease liabilities | 35,566 | 607 | 6.92% | 35,919 | 671 | 7.58% |
|---|
| Total interest-bearing liabilities | $53,633,604 | $384,317 | 2.91% | $51,076,586 | $431,601 | 3.43% |
|---|
| Demand deposits | 16,877,461 | | | 15,104,028 | | |
|---|
| Accrued expenses and other liabilities | 1,521,820 | | | 1,575,264 | | |
|---|
| Stockholders’ equity | 9,047,373 | | | 7,869,074 | | |
|---|
| Total liabilities and stockholders’ equity | $81,080,258 | | | $75,624,952 | | |
|---|
| Total deposits | $67,547,634 | $355,412 | 2.13% | $62,637,582 | $391,981 | 2.54% |
|---|
| EAST WEST BANCORP, INC. AND SUBSIDIARIES |
| QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES |
| ($ in thousands) |
| (unaudited) |
| Table 6 | | | | | | |
| Assets | | | | | | |
| Interest-earning assets: | | | | | | |
| Noninterest-earning assets: | | | | | | |
| Liabilities and Stockholders’ Equity | | | | | | |
| Interest-bearing liabilities: | | | | | | |
| Noninterest-bearing liabilities and stockholders’ equity: | | | | | |
| Interest rate spread | | | 2.58% | | | 2.33% |
| Net interest income and net interest margin | | $671,193 | 3.49% | | $600,201 | 3.35% |
(1)Annualized.
(2)Includes loans HFS.
| Three Months Ended | March 31, 2026Basis Point Change |
|---|
| | March 31, 2026 | December 31, 2025 | March 31, 2025 | Qtr-o-Qtr | Yr-o-Yr |
|---|
| Return on average assets | 1.79% | 1.77% | 1.56% | 2bps | 23bps |
|---|
| Adjusted return on average assets | 1.79% | 1.73% | 1.56% | 6 | 23 |
|---|
| Return on average common equity | 16.04% | 16.11% | 14.96% | (7) | 108 |
|---|
| Adjusted return on average common equity | 16.01% | 15.72% | 14.99% | 29 | 102 |
|---|
| Return on average TCE | 16.92% | 17.03% | 15.92% | (11) | 100 |
|---|
| Adjusted return on average TCE | 16.89% | 16.62% | 15.96% | 27 | 93 |
|---|
| Interest rate spread | 2.58% | 2.44% | 2.33% | 14 | 25 |
|---|
| Net interest margin | 3.49% | 3.41% | 3.35% | 8 | 14 |
|---|
| Average loan yield | 6.11% | 6.20% | 6.39% | (9) | (28) |
|---|
| Yield on average interest-earning assets | 5.49% | 5.55% | 5.76% | (6) | (27) |
|---|
| Average cost of interest-bearing deposits | 2.84% | 3.05% | 3.34% | (21) | (50) |
|---|
| Average cost of deposits | 2.13% | 2.30% | 2.54% | (17) | (41) |
|---|
| Average cost of funds | 2.21% | 2.37% | 2.64% | (16) | (43) |
|---|
| Operating noninterest expense/average assets | 1.29% | 1.21% | 1.27% | 8 | 2 |
|---|
| Efficiency ratio | 36.23% | 34.46% | 36.42% | 177 | (19) |
|---|
| Adjusted efficiency ratio | 36.36% | 35.74% | 36.30% | 62 | 6 |
|---|
| Efficiency ratio (fully taxable equivalent) (“FTE”) | 36.17% | 34.42% | 36.36% | 175 | (19) |
|---|
| Adjusted efficiency ratio (FTE) | 36.30% | 35.70% | 36.24% | 60 | 6 |
|---|
| Effective tax rate | 21.78% | 23.70% | 25.79% | (192)bps | (401)bps |
|---|
| EAST WEST BANCORP, INC. AND SUBSIDIARIES |
| SELECTED RATIOS |
| (unaudited) |
| Table 7 | | | | | |
(1)Annualized except for efficiency ratio and effective tax rate.
(2)Adjusted return on average assets and adjusted return on average common equity are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP financial measures in Table 10.
(3)Return on average TCE and adjusted return on average TCE are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP financial measures in Table 12.
(4)Adjusted efficiency ratio, efficiency ratio (FTE) and adjusted efficiency ratio (FTE) are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP financial measures in Table 11.
| | Three Months Ended March 31, 2026 | |
|---|
| | Commercial | Consumer | | |
|---|
| | | CRE | Residential Mortgage | | |
|---|
| EAST WEST BANCORP, INC. AND SUBSIDIARIES | |
| ALLOWANCE FOR CREDIT LOSSES | |
| ($ in thousands) | |
| (unaudited) | |
| Table 8 | | | | | | | | | |
| ($ in thousands) | | C&I | CRE | Multifamily Residential | Construction and Land | Single-Family Residential | HELOCs | Other Consumer | Total |
| ALLL, December 31, 2025 | | $475,613 | $221,494 | $36,555 | $15,468 | $53,463 | $5,804 | $1,376 | $809,773 |
| Provision for (reversal of) credit losses on loans | (a) | 17,892 | 11,160 | 2,880 | 2,593 | 3,519 | 92 | (262) | 37,874 |
| Gross charge-offs | | (18,385) | (1,305) | - | (893) | (121) | - | (75) | (20,779) |
| Gross recoveries | | 7,918 | 453 | 11 | 2 | 22 | 3 | 251 | 8,660 |
| Total net (charge-offs) recoveries | | (10,467) | (852) | 11 | (891) | (99) | 3 | 176 | (12,119) |
| Foreign currency translation adjustment | | 346 | - | - | - | - | - | - | 346 |
| ALLL, March 31, 2026 | | $483,384 | $231,802 | $39,446 | $17,170 | $56,883 | $5,899 | $1,290 | $835,874 |
| | Three Months Ended December 31, 2025 | |
|---|
| | Commercial | Consumer | | |
|---|
| | | CRE | Residential Mortgage | | |
|---|
| ($ in thousands) | | C&I | CRE | Multifamily Residential | Construction and Land | Single-Family Residential | HELOCs | Other Consumer | Total |
| ALLL, September 30, 2025 | | $441,538 | $227,167 | $35,187 | $18,530 | $60,876 | $6,113 | $1,109 | $790,520 |
| Provision for (reversal of) credit losses on loans | (a) | 43,968 | (3,839) | 1,358 | (3,065) | (7,611) | (306) | 293 | 30,798 |
| Gross charge-offs | | (10,532) | (1,989) | (1) | - | (48) | (6) | (26) | (12,602) |
| Gross recoveries | | 417 | 155 | 11 | 3 | 246 | 3 | - | 835 |
| Total net (charge-offs) recoveries | | (10,115) | (1,834) | 10 | 3 | 198 | (3) | (26) | (11,767) |
| Foreign currency translation adjustment | | 222 | - | - | - | - | - | - | 222 |
| ALLL, December 31, 2025 | | $475,613 | $221,494 | $36,555 | $15,468 | $53,463 | $5,804 | $1,376 | $809,773 |
| | Three Months Ended March 31, 2025 | |
|---|
| | Commercial | Consumer | | |
|---|
| | | CRE | Residential Mortgage | | |
|---|
| ($ in thousands) | | C&I | CRE | Multifamily Residential | Construction and Land | Single-Family Residential | HELOCs | Other Consumer | Total |
| ALLL, December 31, 2024 | | $384,319 | $218,677 | $32,117 | $17,497 | $44,816 | $3,132 | $1,494 | $702,052 |
| Provision for (reversal of) credit losses on loans | (a) | 36,370 | 8,105 | 201 | (305) | 2,072 | 1,739 | (120) | 48,062 |
| Gross charge-offs | | (988) | (13,937) | (4) | (1,996) | (9) | - | (49) | (16,983) |
| Gross recoveries | | 1,564 | 54 | 10 | 3 | 50 | 8 | 13 | 1,702 |
| Total net recoveries (charge-offs) | | 576 | (13,883) | 6 | (1,993) | 41 | 8 | (36) | (15,281) |
| Foreign currency translation adjustment | | 23 | - | - | - | - | - | - | 23 |
| ALLL, March 31, 2025 | | $421,288 | $212,899 | $32,324 | $15,199 | $46,929 | $4,879 | $1,338 | $734,856 |
| | Three Months Ended |
|---|
| EAST WEST BANCORP, INC. AND SUBSIDIARIES |
| ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE-SHEET CREDIT EXPOSURES |
| ($ in thousands) |
| (unaudited) |
| Table 8 (continued) | | | | |
| ($ in thousands) | | March 31, 2026 | December 31, 2025 | March 31, 2025 |
| Unfunded Credit Facilities | | | | |
| Allowance for unfunded credit commitments, beginning of period | | $48,690 | $48,390 | $39,526 |
| (Reversal of) provision for credit losses on unfunded credit commitments | (b) | (1,682) | 302 | 938 |
| Foreign currency translation adjustment | | (3) | (2) | - |
| Allowance for unfunded credit commitments, end of period | | $47,005 | $48,690 | $40,464 |
| Provision for credit losses: | | | | |
| Provision for credit losses on loans and unfunded credit commitments | (a)+(b) | $36,192 | $31,100 | $49,000 |
| Reversal of credit losses on AFS debt securities | (c) | (192) | (1,100) | - |
| Total provision for credit losses | (a)+(b)+(c) | $36,000 | $30,000 | $49,000 |
(1)Included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheet.
| EAST WEST BANCORP, INC. AND SUBSIDIARIES |
| CRITICIZED LOANS, NONPERFORMING ASSETS, CREDIT QUALITY RATIOS AND |
| COMPOSITION OF ALLOWANCE BY PORTFOLIO |
| ($ in thousands) |
| (unaudited) |
| Table 9 |
| Criticized Loans | March 31, 2026 | December 31, 2025 | March 31, 2025 |
| Special mention loans | $316,230 | $344,876 | $494,444 |
| Classified loans | 913,386 | 796,273 | 750,570 |
| Total criticized loans | $1,229,616 | $1,141,149 | $1,245,014 |
(1)Excludes loans HFS.
| Nonperforming Assets | March 31, 2026 | December 31, 2025 | March 31, 2025 |
| Nonaccrual loans: | | | |
| Commercial: | | | |
| C&I | $61,063 | $52,244 | $75,579 |
| Total CRE | 56,104 | 66,648 | 10,108 |
| Consumer: | | | |
| Total residential mortgage | 63,452 | 46,808 | 67,416 |
| Other consumer | 29 | 142 | 97 |
| Total nonaccrual loans | 180,648 | 165,842 | 153,200 |
| OREO, net | 14,917 | 21,183 | 29,003 |
| Nonperforming loans HFS | 20,759 | 20,976 | - |
| Total nonperforming assets | $216,324 | $208,001 | $182,203 |
| Credit Quality Ratios | March 31, 2026 | December 31, 2025 | March 31, 2025 |
| Annualized quarterly net charge-offs to average loans HFI | 0.09% | 0.08% | 0.12% |
| Special mention loans to loans HFI | 0.54% | 0.61% | 0.91% |
| Classified loans to loans HFI | 1.57% | 1.40% | 1.38% |
| Criticized loans to loans HFI | 2.12% | 2.01% | 2.29% |
| Nonperforming assets to total assets | 0.26% | 0.26% | 0.24% |
| Nonaccrual loans to loans HFI | 0.31% | 0.29% | 0.28% |
| ALLL to loans HFI | 1.44% | 1.42% | 1.35% |
| Composition of ALLL by Portfolio | March 31, 2026 | December 31, 2025 | March 31, 2025 |
| Loan Category | ALLL | ALLL/ Loans HFI | ALLL | ALLL/ Loans HFI | ALLL | ALLL/ Loans HFI |
| C&I | $483,384 | 2.47% | $475,613 | 2.55% | $421,288 | 2.41% |
| Total CRE | 288,418 | 1.35 | 273,517 | 1.29 | 260,422 | 1.27 |
| Multifamily | 39,446 | 0.77 | 36,555 | 0.72 | 32,324 | 0.65 |
| Office | 65,546 | 2.87 | 62,091 | 2.78 | 62,265 | 2.90 |
| All other CRE | 183,426 | 1.31 | 174,871 | 1.26 | 165,833 | 1.24 |
| Residential mortgage & consumer | 64,072 | 0.37 | 60,643 | 0.36 | 53,146 | 0.33 |
| Total loans | $835,874 | 1.44% | $809,773 | 1.42% | $734,856 | 1.35% |
| | Three Months Ended |
|---|
| | March 31, 2026 | December 31, 2025 | March 31, 2025 |
|---|
| EAST WEST BANCORP, INC. AND SUBSIDIARIES |
| GAAP TO NON-GAAP RECONCILIATION |
| ($ in thousands) |
| (unaudited) |
| Table 10 | | | | |
| Adjusted net income and adjusted diluted EPS represent net income and diluted EPS adjusted for the tax-effected impacts of the FDIC special assessment and DC Solar adjustments. Management believes that presenting the computations of the adjusted net income, adjusted diluted EPS, adjusted return on average assets and adjusted return on average common equity provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods. •FDIC special assessment reversals/charges are included in Deposit insurance premiums and regulatory assessments on the Condensed Consolidated Statement of Income. •Recoveries related to the Company’s investment in DC Solar are included in Amortization of tax credit and CRA investments, Other investment income (as applicable) and Other operating expense (as applicable) on the Condensed Consolidated Statement of Income. |
| Net income | (a) | $357,796 | $356,271 | $290,270 |
| Less/Add: FDIC special assessment (reversal) charge | (b) | (1,015) | (6,874) | 833 |
| Less: DC Solar recoveries | (b) | - | (4,997) | - |
| Tax effects of adjustments | (b) | 284 | 3,326 | (248) |
| Adjusted net income | (c)=(a)+∑(b) | $357,065 | $347,726 | $290,855 |
| Diluted weighted-average number of shares outstanding | (d) | 138,919 | 139,102 | 139,291 |
| Diluted EPS | (e) | $2.57 | $2.55 | $2.08 |
| Less/Add: FDIC special assessment (reversal) charge | (f) | - | (0.05) | 0.01 |
| Less: DC Solar recoveries | (f) | - | (0.03) | - |
| Tax effects of adjustments | (f) | - | 0.03 | - |
| Adjusted diluted EPS | (g)=(e)+∑(f) | $2.57 | $2.50 | $2.09 |
| Average total assets | (h) | $81,080,258 | $79,741,088 | $75,624,952 |
| Average stockholders’ equity | (i) | $9,047,373 | $8,774,315 | $7,869,074 |
| Return on average assets | (a)/(h) | 1.79% | 1.77% | 1.56% |
| Adjusted return on average assets | (c)/(h) | 1.79% | 1.73% | 1.56% |
| Return on average common equity | (a)/(i) | 16.04% | 16.11% | 14.96% |
| Adjusted return on average common equity | (c)/(i) | 16.01% | 15.72% | 14.99% |
(1)Applied statutory tax rate of 28.02% for the three months ended March 31, 2026 and December 31, 2025. Applied statutory tax rate of 29.73% for the three months ended March 31, 2025.
(2)Annualized.
| | Three Months Ended |
|---|
| | March 31, 2026 | December 31, 2025 | March 31, 2025 |
|---|
| EAST WEST BANCORP, INC. AND SUBSIDIARIES |
| GAAP TO NON-GAAP RECONCILIATION |
| ($ in thousands) |
| (unaudited) |
| Table 11 | | | | |
| The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Non-GAAP measures used consist of FTE net interest income and total revenue. The FTE adjustment relates to tax exempt interest on certain investment securities and loans. Adjusted total revenue and adjusted total revenue (FTE) reflect the DC Solar recoveries (as applicable). Adjusted noninterest expense reflects the FDIC special assessment and DC Solar recoveries. Efficiency ratio (FTE) represents noninterest expense divided by total revenue (FTE). Adjusted efficiency ratio and adjusted efficiency ratio (FTE) reflect the impacts of the aforementioned adjustments. Pre-tax, pre-provision income (FTE) represents total revenue (FTE) less noninterest expense. Adjusted pre-tax, pre-provision income (FTE) represents adjusted total revenue (FTE) less adjusted noninterest expense. |
| Net interest income before provision for credit losses | (a) | $671,193 | $657,824 | $600,201 |
| FTE adjustment | (b) | 1,250 | 830 | 1,146 |
| FTE net interest income before provision for credit losses | (c)=(a)+(b) | 672,443 | 658,654 | 601,347 |
| Total noninterest income | (d) | 102,556 | 100,430 | 92,102 |
| Total revenue | (e)=(a)+(d) | 773,749 | 758,254 | 692,303 |
| Total revenue (FTE) | (f)=(c)+(d) | $774,999 | $759,084 | $693,449 |
| Less: DC Solar recoveries | (g) | - | (3,337) | - |
| Adjusted total revenue | (h)=(e)+(g) | 773,749 | 754,917 | 692,303 |
| Adjusted total revenue (FTE) | (i)=(f)+(g) | $774,999 | $755,747 | $693,449 |
| Total noninterest expense | (j) | $280,314 | $261,305 | $252,148 |
| Add/less: FDIC special assessment reversal (charge) | (k) | 1,015 | 6,874 | (833) |
| Add: DC Solar recoveries | (k) | - | 1,660 | - |
| Adjusted noninterest expense | (l)=(j)+∑(k) | $281,329 | $269,839 | $251,315 |
| Efficiency ratio | (j)/(e) | 36.23% | 34.46% | 36.42% |
| Adjusted efficiency ratio | (l)/(h) | 36.36% | 35.74% | 36.30% |
| Efficiency ratio (FTE) | (j)/(f) | 36.17% | 34.42% | 36.36% |
| Adjusted efficiency ratio (FTE) | (l)/(i) | 36.30% | 35.70% | 36.24% |
| Pre-tax, pre-provision income (“PTPP”) | (e)-(j) | $493,435 | $496,949 | $440,155 |
| PTPP (FTE) | (f)-(j) | $494,685 | $497,779 | $441,301 |
| Adjusted PTPP (FTE) | (i)-(l) | $493,670 | $485,908 | $442,134 |
(1)Included in Other investment income for the three months ended December 31, 2025.
(2)Amounts were included in Amortization of tax credit and CRA investments, except for $700 thousand which was included in Other operating expense for the three months ended December 31, 2025.
| | March 31, 2026 | December 31, 2025 | March 31, 2025 |
|---|
| EAST WEST BANCORP, INC. AND SUBSIDIARIES |
| GAAP TO NON-GAAP RECONCILIATION |
| ($ in thousands) |
| (unaudited) |
| Table 12 | | | | |
| The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible book value, tangible book value per share and TCE ratio are non-GAAP financial measures. Tangible book value and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and mortgage servicing assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and are used by banking regulators and analysts, the Company has included them below for discussion. |
| Common stock | | $171 | $170 | $170 |
| Additional paid-in capital | | 2,131,219 | 2,111,316 | 2,043,898 |
| Retained earnings | | 8,547,820 | 8,301,522 | 7,517,711 |
| Treasury stock | | (1,291,555) | (1,168,196) | (1,137,299) |
| Accumulated other comprehensive income: | | | | |
| AFS debt securities net unrealized losses | | (383,753) | (353,233) | (482,175) |
| Cash flow hedges net unrealized gains | | 12,034 | 28,209 | 10,493 |
| Foreign currency translation adjustments | | (16,501) | (20,586) | (23,333) |
| Total accumulated other comprehensive loss | | (388,220) | (345,610) | (495,015) |
| Stockholders’ equity | (a) | $8,999,435 | $8,899,202 | $7,929,465 |
| Less: Goodwill | | (465,697) | (465,697) | (465,697) |
| Mortgage servicing assets | | (3,978) | (4,119) | (4,940) |
| Tangible book value | (b) | $8,529,760 | $8,429,386 | $7,458,828 |
| Number of common shares at period-end | (c) | 136,979 | 137,579 | 137,802 |
| Book value per share | (a)/(c) | $65.70 | $64.68 | $57.54 |
| Tangible book value per share | (b)/(c) | $62.27 | $61.27 | $54.13 |
| Total assets | (d) | $82,886,152 | $80,434,997 | $76,165,013 |
| Less: Goodwill | | (465,697) | (465,697) | (465,697) |
| Mortgage servicing assets | | (3,978) | (4,119) | (4,940) |
| Tangible assets | (e) | $82,416,477 | $79,965,181 | $75,694,376 |
| Total stockholders’ equity to assets ratio | (a)/(d) | 10.86% | 11.06% | 10.41% |
| TCE ratio | (b)/(e) | 10.35% | 10.54% | 9.85% |
| | Three Months Ended |
|---|
| | March 31, 2026 | December 31, 2025 | March 31, 2025 |
|---|
| EAST WEST BANCORP, INC. AND SUBSIDIARIES |
| GAAP TO NON-GAAP RECONCILIATION |
| ($ in thousands) |
| (unaudited) |
| Table 12 (continued) | | | | |
| Return on average TCE represents tangible net income divided by average tangible book value. Tangible net income excludes the after-tax impacts of the amortization of mortgage servicing assets. Adjusted return on average TCE represents adjusted tangible net income divided by average tangible book value. Adjusted tangible net income is tangible net income excluding the tax-effected impacts of the FDIC special assessment and DC Solar adjustments. Given that the use of such measures and ratios is more prevalent in the banking industry, and are used by banking regulators and analysts, the Company has included them below for discussion. |
| Net income | (f) | $357,796 | $356,271 | $290,270 |
| Add: Amortization of mortgage servicing assets | | 149 | 249 | 293 |
| Tax effect of amortization adjustment | | (42) | (70) | (87) |
| Tangible net income | (g) | $357,903 | $356,450 | $290,476 |
| Less/Add: FDIC special assessment (reversal) charge | | (1,015) | (6,874) | 833 |
| Less: DC Solar recoveries | | - | (4,997) | - |
| Tax effects of adjustments | | 284 | 3,326 | (248) |
| Adjusted tangible net income | (h) | $357,172 | $347,905 | $291,061 |
| Average stockholders’ equity | (i) | $9,047,373 | $8,774,315 | $7,869,074 |
| Less: Average goodwill | | (465,697) | (465,697) | (465,697) |
| Average mortgage servicing assets | | (4,025) | (4,270) | (5,120) |
| Average tangible book value | (j) | $8,577,651 | $8,304,348 | $7,398,257 |
| Return on average common equity | (f)/(i) | 16.04% | 16.11% | 14.96% |
| Return on average TCE | (g)/(j) | 16.92% | 17.03% | 15.92% |
| Adjusted return on average TCE | (h)/(j) | 16.89% | 16.62% | 15.96% |
(1)Applied statutory tax rate of 28.02% for the three months ended March 31, 2026 and December 31, 2025. Applied statutory tax rate of 29.73% for the three months ended March 31, 2025.
(2)Annualized.
Contacts
East West Bancorp, Inc.
135 N. Los Robles Ave.
Pasadena, CA 91101
Tel. 626.768.6000
For Investor Inquiries, Contact: Adrienne Atkinson · Director of Investor Relations and Corporate Development · T: (626) 788-7536 · E: adrienne.atkinson@eastwestbank.com
For Media Inquiries, Contact: Angie Tang · Director of Corporate Communications · T: (626) 768-6853 · E: angie.tang@eastwestbank.com