EAST WEST BANCORP INC

The Company maintains a strong capital base to support its anticipated asset growth, operating needs, and credit risks, and to ensure that the Company and the Bank are in compliance with all regulatory capital guidelines. The Company engages in regular capital planning processes on at least an annual basis to optimize the use of available capital and to appropriately plan for future capital needs, allocating capital to existing and future business activities. Furthermore, the Company conducts capital stress tests as part of its capital planning process. The stress tests enable the Company to assess the impact of adverse changes in the economy and interest rates on its capital base.

On March 3, 2020, the Company’s Board of Directors authorized the repurchase of $500 million of the Company’s common stock. During the fourth quarter of 2023, the Company repurchased $82 million of common stock or 1,506,091 shares, at an average price of $54.56 per share. In comparison, the Company repurchased $100 million of common stock or 1,385,517 shares, at an average price of $72.17 per share in 2022. The total remaining available capital authorized for repurchase as of December 31, 2023 was $172 million.

The Company’s stockholders’ equity was $7.0 billion as of December 31, 2023, an increase of $966 million or 16% from $6.0 billion as of December 31, 2022. The increase in the Company’s stockholders’ equity was primarily due to 2023 net income of $1.2 billion, partially offset by cash dividends declared of $274 million. For other factors that contributed to the changes in stockholders’ equity, refer to Item 8. Financial Statements — Consolidated Statement of Changes in Stockholders’ Equityin this Form 10-K.

Book value was $49.64 per common share as of December 31, 2023, an increase of 17% from $42.46 per common share as of December 31, 2022, primarily due to the factors described above. Tangible book value per share was $46.27 as of December 31, 2023, compared with $39.10 as of December 31, 2022. For additional details, see the reconciliation of non-GAAP measures presented under Item 7. MD&A—Reconciliation of GAAP to Non-GAAP Financial Measuresin this Form 10-K.

The Company paid a cash dividend of $1.92 per share in 2023, compared with $1.60 per share in 2022, an increase of 20%. In January 2024, the Company’s Board of Directors declared a first quarter 2024 cash dividend of $0.55 per share, which represents a 15% increase or seven cents per share, from the previous quarterly cash dividend of $0.48 per share. The dividend was paid on February 15, 2024, to stockholders of record as of February 2, 2024.