EAST WEST BANCORP INC

For the period ended Jun 30, 2025. Filed Aug 7, 2025.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2025 · Filed Aug 7, 2025

EWBC$130.97+1.7%Stored close · as of Nov 9, 2026

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Contents

Net Interest Income

The Company’s primary source of revenue is net interest income, which is the interest income earned on interest-earning assets less interest expense paid on interest-bearing liabilities. Net interest margin is the ratio of net interest income to average interest-earning assets. Net interest income and net interest margin are impacted by several factors, including changes in average balances and the composition of interest-earning assets and funding sources, market interest rate fluctuations and the slope of the yield curve, repricing characteristics and maturity of interest-earning assets and interest-bearing liabilities, the volume of noninterest-bearing sources of funds and asset quality.

Net interest income and net interest margin for the second quarter and first half of 2025 increased year-over-year. These year-over-year increases primarily reflected the increase in AFS debt securities and lower deposit funding costs, partially offset by lower yields on loans and interest-bearing cash and deposits with banks. The increases in the net interest income and net interest margin for the first half of 2025, compared with the same prior year period, were also supported by a decrease in Bank Term Funding Program (“BTFP”) and short-term borrowings, partially offset byan increase in Federal Home Loan Bank (“FHLB”) advances.

Average interest-earning assets were $73.9 billion for the second quarter of 2025, an increase of $5.9 billion or 9% from the second quarter of 2024. For the first half of 2025, average interest-earning assets were $73.3 billion, an increase of $5.2 billion or 8% from the first half of 2024. The year-over-year increases in average interest-earning assets primarily reflected increases in AFS debt securities and loan growth, partially offset by a decrease in interest-bearing cash and deposits with banks.

The yield on average interest-earning assets for the second quarter of 2025 was 5.75%, a decrease of 36 bps from the second quarter of 2024. The yield on average interest-earning assets for the first half of 2025 was 5.75%, a decrease of 33 bps from the first half of 2024. The year-over-year decrease in the yield on average interest-earning assets primarily reflected the impact of lower benchmark interest rates on the loan portfolio.

Average loan yields were 6.40% and 6.39% for the second quarter and first half of 2025, respectively, representing a 33 bps decrease from both prior year periods. The year-over-year decreases in the average loan yields reflected the loan portfolio’s sensitivity to lower benchmark interest rates. Approximately 58% of loans held-for-investment were variable rateas of June 30, 2025 and 2024.

Deposits are an important source of funding for the Company. Average deposits were $63.7 billion for the second quarter of 2025, which increased $5.0 billion or 9%, from the second quarter of 2024. Average deposits were $63.2 billion for the first half of 2025, which increased $5.1 billion or 9%, from the first half of 2024.

Average noninterest-bearing deposits were $15.1 billion for the second quarter of 2025, an increase of $450 million or 3% from the second quarter of 2024. For the first half of 2025, average noninterest-bearing deposits were$15.1 billion, an increase of $300 million or 2% from the first half of 2024. Average noninterest-bearing deposits made up 24% and 25% of average deposits for the second quarters of 2025 and 2024, respectively, and 24% and 26% for the first halves of 2025 and 2024, respectively.

The average cost of deposits of 2.52% for the second quarter and 2.53% for the first half of 2025, decreased 44 bps and 37 bps, respectively, compared withthe prior year periods. The average cost of interest-bearing deposits of 3.31% for the second quarter and 3.33% for the first half of 2025, decreased 63 bps and 56 bps, respectively, compared with the prior year periods. These year-over-year decreases primarily reflected the impacts of lower benchmark interest rates and the Company’s efforts to reduce deposit costs.

The average cost of funds calculation includes deposits, short-term borrowings, FHLB advances, securities sold under repurchase agreements (“repurchase agreements”), and long-term debt. The average cost of funds of 2.63% for the second quarter and 2.64% for the first half of 2025, decreased 48 bps and 40 bps during the second quarter and first half of 2025, respectively, compared withthe prior year periods. The year-over-year decreases were mainly driven by the decrease in the cost of deposits as discussed above.

The Company utilizes various tools to manage interest rate risk. Refer to the Interest Rate Risk Management section of Item 2. MD&A — Risk Management — Market Risk Managementin this Form 10-Q.

The following table presents the interest spread, net interest margin, average balances, interest income and expense, and the average yield/rate by asset and liability component for the second quarters of 2025 and 2024:

	Three Months Ended June 30,
2025 · 2024
($ in thousands) · Average Balance · Interest · Average Yield/Rate (1) · Average Balance · Interest · Average Yield/Rate (1)
ASSETS
Interest-earning assets:
Interest-bearing cash and deposits with banks	$3,699,036		$34,935			3.79%		$4,058,515			$49,406		4.90%
Securities purchased under resale agreements (“resale agreements”)	425,000		1,624			1.53%		485,000			1,885		1.56%
Debt securities:
AFS (2)(3)	12,435,531		141,496			4.56%		8,481,948			99,242		4.71%
Held-to-maturity (“HTM”) (2)	2,896,410		12,292			1.70%		2,941,150			12,490		1.71%
Total debt securities (2)	15,331,941		153,788			4.02%		11,423,098			111,732		3.93%
Loans:
Commercial and industrial (“C&I”) (2)	17,363,095		303,791			7.02%		16,209,659			322,648		8.01%
Commercial real estate (“CRE”) (2)	20,535,145		319,666			6.24%		20,270,816			323,106		6.41%
Residential mortgage	16,336,054		241,666			5.93%		15,386,858			221,966		5.80%
Other consumer	47,138		572			4.87%		51,455			721		5.64%
Total loans (2)(4)(5)	54,281,432		865,695			6.40%		51,918,788			868,441		6.73%
Restricted equity securities	165,716		2,957			7.16%		164,649			2,950		7.21%
Total interest-earning assets	$73,903,125		$1,058,999			5.75%		$68,050,050			$1,034,414		6.11%
Noninterest-earning assets:
Cash and due from banks	350,343						468,374
Allowance for loan losses	(745,121)						(675,346)
Other assets	3,353,681						3,346,122
Total assets	$76,862,028						$71,189,200
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Checking deposits	$7,597,103		$47,013			2.48%		$7,467,801			$52,680		2.84%
Money market deposits	15,325,928		124,282			3.25%		13,724,230			135,405		3.97%
Savings deposits	1,745,220		3,700			0.85%		1,795,242			5,004		1.12%
Time deposits	23,894,775		225,593			3.79%		21,028,737			238,393		4.56%
Total interest-bearing deposits	48,563,026		400,588			3.31%		44,016,010			431,482		3.94%
Short-term borrowings and federal funds purchased	659		1			0.61%		2,889			32		4.45%
FHLB advances	3,500,003		39,313			4.51%		3,500,001			48,840		5.61%
Repurchase agreements	119,061		1,352			4.55%		4,104			58		5.68%
Long-term debt and finance lease liabilities	35,811		671			7.52%		36,335			773		8.56%
Total interest-bearing liabilities	$52,218,560		$441,925			3.39%		$47,559,339			$481,185		4.07%
Noninterest-bearing liabilities and stockholders’ equity:
Demand deposits	15,114,806						14,664,789
Accrued expenses and other liabilities	1,458,680						1,877,572
Stockholders’ equity	8,069,982						7,087,500
Total liabilities and stockholders’ equity	$76,862,028						$71,189,200
Interest rate spread				2.36%						2.04%
Net interest income and net interest margin		$617,074			3.35%				$553,229			3.27%

(1)Annualized.

(2)Yields on tax-exempt securities and loans are not presented on a tax-equivalent basis.

(3)Includes the amortization of net premiums on AFS debt securities of $10 million for the second quarters of 2025 and 2024.

(4)Average balances include nonperforming loans and loans held-for-sale.

(5)Loans include the accretion of net deferred loan fees and amortization of net premiums, which totaled $13 million and $14 million for the second quarters of 2025 and 2024, respectively.

	Six Months Ended June 30,
2025 · 2024
($ in thousands) · Average Balance · Interest · Average Yield/Rate (1) · Average Balance · Interest · Average Yield/Rate (1)
ASSETS
Interest-earning assets:
Interest-bearing cash and deposits with banks	$3,906,499		$74,072			3.82%		$4,960,016			$123,788		5.02%
Resale agreements	425,000		3,234			1.53%		605,330			8,000		2.66%
Debt securities:
AFS (2)(3)	12,102,837		277,015			4.62%		7,524,158			162,100		4.33%
HTM (2)	2,902,373		24,557			1.71%		2,945,918			25,024		1.71%
Total debt securities (2)	15,005,210		301,572			4.05%		10,470,076			187,124		3.59%
Loans:
C&I (2)	17,115,622		597,205			7.04%		16,230,641			648,458		8.03%
CRE (2)	20,454,528		631,052			6.22%		20,342,200			647,193		6.40%
Residential mortgage	16,193,678		476,557			5.93%		15,294,601			437,640		5.75%
Other consumer	48,351		1,293			5.39%		54,372			1,539		5.69%
Total loans (2)(4)(5)	53,812,179		1,706,107			6.39%		51,921,814			1,734,830		6.72%
Restricted equity securities	165,540		5,816			7.08%		128,812			4,289		6.70%
Total interest-earning assets	$73,314,428		$2,090,801			5.75%		$68,086,048			$2,058,031		6.08%
Noninterest-earning assets:
Cash and due from banks	347,797						457,070
Allowance for loan losses	(730,768)						(677,231)
Other assets	3,315,450						3,567,911
Total assets	$76,246,907						$71,433,798
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Checking deposits	$7,672,963		$94,924			2.49%		$7,581,615			$106,501		2.82%
Money market deposits	15,081,131		240,300			3.21%		13,680,220			270,066		3.97%
Savings deposits	1,749,062		7,147			0.82%		1,802,405			9,124		1.02%
Time deposits	23,547,978		450,198			3.86%		20,187,490			451,990		4.50%
Total interest-bearing deposits	48,051,134		792,569			3.33%		43,251,730			837,681		3.89%
BTFP, short-term borrowings and federal funds purchased	544		7			2.59%		1,933,707			42,138		4.38%
FHLB advances	3,500,002		78,179			4.50%		2,027,474			56,579		5.61%
Repurchase agreements	63,183		1,429			4.56%		3,327			93		5.62%
Long-term debt and finance lease liabilities	35,864		1,342			7.55%		81,076			3,172		7.87%
Total interest-bearing liabilities	$51,650,727		$873,526			3.41%		$47,297,314			$939,663		4.00%
Noninterest-bearing liabilities and stockholders’ equity:
Demand deposits	15,109,447						14,809,871
Accrued expenses and other liabilities	1,516,650						2,286,584
Stockholders’ equity	7,970,083						7,040,029
Total liabilities and stockholders’ equity	$76,246,907						$71,433,798
Interest rate spread				2.34%						2.08%
Net interest income and net interest margin		$1,217,275			3.35%				$1,118,368			3.30%

(1)Annualized.

(2)Yields on tax-exempt securities and loans are not presented on a tax-equivalent basis.

(3)Includes the amortization of net premiums of AFS debt securities of $17 million for the first halves of 2025 and 2024.

(4)Average balances include nonperforming loans and loans held-for-sale.

(5)Loans include the accretion of net deferred loan fees and amortization of net premiums, which totaled $26 million and $28 million for the first halves of 2025 and 2024, respectively.

The following table summarizes the extent to which changes in (1) interest rates, and (2) volume of average interest-earning assets and average interest-bearing liabilities affected the Company’s net interest income for the periods presented. The total change for each category of interest-earning assets and interest-bearing liabilities is segmented into changes attributable to variations in volume and yield/rate. Changes that are not solely due to either volume or yield/rate are allocated proportionally based on the absolute value of the change related to average volume and average yield/rate.

Three Months Ended June 30, · Six Months Ended June 30,
2025 vs. 2024 · 2025 vs. 2024
	Changes Due to			Changes Due to
($ in thousands)	Total Change	Volume	Yield/Rate	Total Change	Volume	Yield/Rate
Interest-earning assets:
Interest-bearing cash and deposits with banks	$(14,471)	$(4,071)	$(10,400)	$(49,716)	$(23,438)	$(26,278)
Resale agreements	(261)	(225)	(36)	(4,766)	(1,971)	(2,795)
Debt securities:
AFS	42,254	45,326	(3,072)	114,915	103,770	11,145
HTM	(198)	(162)	(36)	(467)	(433)	(34)
Total debt securities	42,056	45,164	(3,108)	114,448	103,337	11,111
Loans:
C&I	(18,857)	22,306	(41,163)	(51,253)	33,375	(84,628)
CRE	(3,440)	4,483	(7,923)	(16,141)	3,249	(19,390)
Residential mortgage	19,700	14,403	5,297	38,917	25,388	13,529
Other consumer	(149)	(57)	(92)	(246)	(167)	(79)
Total loans	(2,746)	41,135	(43,881)	(28,723)	61,845	(90,568)
Restricted equity securities	7	23	(16)	1,527	1,269	258
Total interest and dividend income	$24,585	$82,026	$(57,441)	$32,770	$141,042	$(108,272)
Interest-bearing liabilities:
Checking deposits	$(5,667)	$918	$(6,585)	$(11,577)	$1,238	$(12,815)
Money market deposits	(11,123)	14,869	(25,992)	(29,766)	25,481	(55,247)
Savings deposits	(1,304)	(135)	(1,169)	(1,977)	(266)	(1,711)
Time deposits	(12,800)	30,410	(43,210)	(1,792)	68,572	(70,364)
Total interest-bearing deposits	(30,894)	46,062	(76,956)	(45,112)	95,025	(140,137)
BTFP, short-term borrowings and federal funds purchased	(31)	(15)	(16)	(42,131)	(42,097)	(34)
FHLB advances	(9,527)	134	(9,661)	21,600	34,496	(12,896)
Repurchase agreements	1,294	1,308	(14)	1,336	1,357	(21)
Long-term debt and finance lease liabilities	(102)	(11)	(91)	(1,830)	(1,705)	(125)
Total interest expense	$(39,260)	$47,478	$(86,738)	$(66,137)	$87,076	$(153,213)
Change in net interest income	$63,845	$34,548	$29,297	$98,907	$53,966	$44,941

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