EAST WEST BANCORP INC

Third quarter 2024 income tax expense was $90 million and the effective tax rate was 23.2%, compared with third quarter 2023 income tax expense of $66 million and an effective tax rate of 18.6%. For the first nine months of 2024, income tax expense was $254 million and the effective tax rate was 22.5%, compared with income tax expense of $210 million and an effective tax rate of 18.6% for the same period in 2023. The year-over-year increases in income tax expense and effective tax rate were primarily due to the impacts related to the expanded application of PAM on the Company’s tax credit investments since the adoption of ASU 2023-02 on January 1, 2024 and the timing of tax credit investments that closed in a given period. $22 million and $65 million of investment amortization was recognized as a component of income tax expense during the three and nine months ended September 30, 2024, respectively, which is related to the expanded application of PAM. For additional information on the PAM, see Note 2 — Current Accounting Developments and Summary of Significant Accounting Policiesand Note 8 — Affordable Housing Partnership, Tax Credit and Community Reinvestment Act Investments, Net.