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 first half of 2024, the Company repurchased 1,742,496 shares at an average price of $70.72 per share at $123 million. The Company did not repurchase any shares during the first half of 2023. The total remaining available capital authorized for repurchase as of June 30, 2024 was $49 million.

The Company’s stockholders’ equity was $7.2 billion as of June 30, 2024, an increase of $264 million or 3.8% from $7.0 billion as of December 31, 2023. The increase in the Company’s stockholders’ equity was primarily due to $573 million of net income, partially offset by $155 million of cash dividends declared and $123 million of common stock repurchases. For other factors that contributed to the changes in stockholders’ equity, refer to Item 1. Consolidated Financial Statements — Consolidated Statement of Changes in Stockholders’ Equity in this Form 10-Q.

Book value per share was $52.06 as of June 30, 2024, an increase of 5% from $49.64 per share as of December 31, 2023, a result of the increase in the Company’s stockholders’ equity as described above. Tangible book value per share was $48.65 as of June 30, 2024, compared with $46.27 as of December 31, 2023. For additional details, see the reconciliation of non-GAAP measures presented under Item 2. MD&A — Reconciliation of GAAP to Non-GAAP Financial Measures in this Form 10-Q.

The Company paid a quarterly common stock cash dividend of $0.55 and $0.48 per share during the second quarters of 2024 and 2023, respectively. In July 2024, the Company’s Board of Directors declared a third quarter 2024 cash dividend of $0.55 per share. The dividend is payable on August 16, 2024, to stockholders of record as of August 2, 2024.