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. The Company repurchased $144 million of common stock or 1,943,346 shares, at an average cost of $74.33 per share in 2024. In comparison, the Company repurchased $82 million of common stock or 1,506,091 shares, at an average cost of $54.56 per share in 2023. As of December 31, 2024, the total remaining amount under the repurchase authorization was $29 million, excluding excise taxes and commissions. In addition, on January 22, 2025, East West’s Board of Directors authorized the repurchase of up to an additional $300 million East West stock.

The Company’s stockholders’ equity as of December 31, 2024 increased $772 million or 11% to $7.7 billion from December 31, 2023. The increase was primarily due to $1.2 billion of net income, partially offset by $310 million of cash dividends declared and $144 million of common stock repurchases. 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.

The Company paid a cash dividend of $2.20 per share in 2024, an increase of 15% from 2023. In January 2025, the Company’s Board of Directors declared a first quarter 2025 cash dividend of $0.60 per share, which represents a 9% or five cents per share increase from the previous quarter. The dividend was paid on February 17, 2025, to stockholders of record as of February 3, 2025.