EAST WEST BANCORP INC

(1)For additional information regarding the reconciliation of these non-U.S. Generally Accepted Accounting Principles (“GAAP”) financial measures, refer to Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) — Reconciliation of GAAP to Non-GAAP Financial Measuresin this Form 10-Q.

(2)Efficiency ratio is calculated as noninterest expense divided by total revenue.

The Company’s third quarter 2024 net income was $299 million, an increase of $11 million or 4%, from third quarter 2023 net income of $288 million. The increase was primarily due to lower noninterest expense and higher noninterest income, partially offset by higher income tax expense. Net income for the first nine months of 2024 was $872 million, a decrease of $50 million or 5%, from the first nine months of 2023 net income of $922 million. The decrease was primarily due to lower net interest income, higher income tax expense and provision for credit losses, partially offset by higher noninterest income and lower noninterest expense. Noteworthy aspects of the Company’s performance for the third quarter and the first nine months of 2024 included:

•Net interest income and net interest margin. Third quarter 2024 net interest income before provision for credit losses was $573 million, an increase of $2 million from the third quarter of 2023. Third quarter 2024 net interest margin of 3.24% declined 24 bps year-over-year. For the first nine months of 2024, net interest income before provision for credit losses was$1.7 billion, adecrease of$46 million or 3%, year-over-year. The net interest margin for the first nine months of 2024 was 3.28%, down 38 bps year-over-year.

•Profitability ratios. Third quarter 2024 ROA, ROE and the return on average TCE of 1.62%, 15.99% and 17.08%, respectively, were down year-over-year. ROA, ROE and the return on average TCE of 1.62%, 16.24% and 17.40%, respectively, for the first nine months of 2024, were also down year-over-year. Return on average TCE is a non-GAAP financial measure. For additional details, see the reconciliation of non-GAAP financial measures presented under Item 2. MD&A — Reconciliation of GAAP to Non-GAAP Financial Measures in this Form 10-Q.

•Efficiency ratios. Third quarter 2024 efficiency ratio of 34.40% improved 452 bps from 38.92% for the same period in 2023, while the FTE efficiency ratio of 34.38% improved 451 bps from 38.89% for the same period in 2023. For the first nine months of 2024, the efficiency ratio of 36.58% improved 92 bps from 37.50% for the same period in 2023, while the FTE efficiency ratio of 36.51% improved 96 bps from 37.47% for the same period in 2023. The FTE efficiency ratio is a non-GAAP financial measure, see Item 2. MD&A — Reconciliation of GAAP to Non-GAAP Financial Measures in this Form 10-Q.

•Asset growth. Total assets reached $74.5 billion as of September 30, 2024, an increase of $4.9 billion or 7%, from December 31, 2023, primarily driven by a $3.9 billion or 64% increase in available-for-sale (“AFS”) debt securities and a $1.0 billion or 2% increase in loans held-for-investment.

•Deposit growth. Total deposits were $61.7 billion as of September 30, 2024, an increase of $5.6 billion or 10%, from December 31, 2023, primarily reflecting growth across the Commercial and Consumer and Business Banking segments.

•Strong capital levels. Stockholders’ equity was $7.7 billion as of September 30, 2024, up 10% from $7.0 billion as of December 31, 2023. Book value per share of $55.30 as of September 30, 2024, was up 11%, compared with $49.64 as of December 31, 2023. Tangible book value per share of $51.90 as of September 30, 2024, was up 12%, compared with $46.27 as of December 31, 2023. Tangible book value per share is a non-GAAP financial measure. For additional details, see the reconciliation of non-GAAP financial measures presented under Item 2. MD&A - Reconciliation of GAAP to non-GAAP Financial Measures in this Form 10-Q.