EAST WEST BANCORP INC

The following table presents the components of noninterest expense for the first quarters of 2025 and 2024:

First quarter 2025 noninterest expense of $252 million increased $6 million or 2%, compared with the first quarter of 2024. The increase was primarily due to increases in other operating expense, compensation and employee benefits, amortization of tax credit and CRA investments, and computer software and data processing expenses, partially offset by decreases in deposit insurance premiums and regulatory assessments and deposit account expense.

Compensation and employee benefits were $146 million for the first quarter of 2025, an increase of $5 million or 3%, compared with the first quarter of 2024. The increase was primarily driven by annual merit increases and staffing growth.

Deposit account expense was $9 million for the first quarter of 2025, a decrease of $3 million or 26%, compared with the first quarter of 2024, driven primarily by lower balances and referral rates paid on certain deposit accounts.

Computer and software related expenses were $13 million for the first quarter of 2025, an increase of $2 million or 17%, compared with the first quarter of 2024. The increase primarily reflected increased software licensing costs and higher data processing fees.

Deposit insurance premiums and regulatory assessments was $10 million for the first quarter of 2025, a decrease of $9 million or 47%, compared with the first quarter of 2024. The decrease was primarily due to a $1 million FDIC special assessment charge (“FDIC charge”) recorded in the first quarter of 2025, compared with a $10 million FDIC charge recorded in the first quarter of 2024. Adjustments to the FDIC charge pertain primarily to changes in the FDIC’s estimated losses to the Deposit Insurance Fund. For additional information on the FDIC charge, refer to Item 1. Business — Supervision and Regulation — FDIC Deposit Insurance Assessmentsin the Company’s 2024 Form 10-K.

Other operating expense was $42 million for the first quarter of 2025, an increase of $9 million or 28%, compared with the first quarter of 2024. The increase was primarily due to $4 million in other real estate owned (“OREO”) write-downs, and $4 million increase in expenses related to problem loans and foreclosure.

Amortization of tax credit and CRA investments was $16 million for the first quarter of 2025, an increase of $3 million or 19%, compared with the first quarter of 2024. The variance was primarily due to the timing of tax credit investments that closed in a given period.