EAST WEST BANCORP INC

Our MD&A analyzes the financial condition and results of operations of the Company for 2024 and 2023. Some tables include additional periods to comply with disclosure requirements or to illustrate trends in greater depth. The page locations of specific sections that we refer to are presented in the table of contents. To review our financial condition and results of operations for 2023 and a comparison between 2023 and 2022 results, see Item 7. MD&A of our 2023 Form 10-K, which was filed with the SEC on February 29, 2024.

(1)For additional information regarding the reconciliation of these non-U.S. GAAP financial measures, refer to Item 7. MD&A — Reconciliation of GAAP to Non-GAAP Financial Measuresin this Form 10-K.

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

The Company’s 2024 net income was $1.2 billion, a $4 million or 0.4% increase from 2023. The increase was primarily due to a decrease in noninterest expense and an increase in noninterest income, partially offset by higher provision for credit losses, lower net interest income before provision for credit losses, and higher income tax expense. Noteworthy items about the Company’s performance for 2024 included:

•Net interest income and net interest margin. Year-over-year net interest income before provision for credit losses decreased $34 million or 1% to $2.3 billion in 2024. Full year 2024 net interest margin was 3.27%, a 34 bp decrease year-over-year.

•Earnings per share growth. Full year 2024 basic and diluted EPS each expanded 2% to $8.39 and $8.33, respectively.

•Efficiency ratio improvement. The efficiency ratio was 36.65% in 2024, a 257 bp improvement compared with 2023. The improvement in the efficiency ratio primarily reflected a year-over-year decrease in the amortization of tax credit and CRA investments due to the expanded application of the proportional amortization method (“PAM”) since the adoption of Accounting Standards Update (“ASU”) 2023-02, Investments — Equity Method and Joint Ventures on January 1, 2024, and a decrease in the FDIC charge.

•Asset growth. Total assets reached $76.0 billion as of December 31, 2024, an increase of $6.4 billion or 9% year-over-year, primarily driven by an increase in AFS debt securities of $4.7 billion or 75%, and loan growth of $1.5 billion or 3%.

•Deposit growth. Total deposits were $63.2 billion as of December 31, 2024, an increase of $7.1 billion or 13% year-over-year, primarily reflecting growth across the Consumer and Business Banking, and Commercial Banking segments.

•Strong capital levels. Stockholders’ equity was $7.7 billion as of December 31, 2024, up from $7.0 billion as of December 31, 2023. Book value per share of $55.79 as of December 31, 2024, increased $6.15 or 12% from December 31, 2023. Tangible book value per share of $52.39 as of December 31, 2024, increased $6.12 or 13% from 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 7. MD&A — Reconciliation of GAAP to Non-GAAP Financial Measuresin this Form 10-K.