EAST WEST BANCORP INC
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
View on SEC.govAbout this filing
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
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Regulatory Capital and Ratios
The federal banking agencies have risk-based capital adequacy requirements intended to ensure that banking organizations maintain capital that is commensurate with the degree of risk associated with their operations. The Company and the Bank are each subject to these regulatory capital adequacy requirements. See Item 1. Business — Supervision and Regulation — Regulatory Capital Requirementsand Regulatory Capital-Related Developmentin the Company’s 2024 Form 10-K for additional details.
The following table presents the Company’s and the Bank’s capital ratios as of June 30, 2025 and December 31, 2024 under the Basel III Capital Rules, and those required by regulatory agencies for capital adequacy and well-capitalized classification purposes:
| Basel III Capital Rules | |||||||
|---|---|---|---|---|---|---|---|
| June 30, 2025 · December 31, 2024 (1) | |||||||
| Company | Bank | Company | Bank | Minimum Regulatory Requirements | Minimum Regulatory Requirements including Capital Conservation Buffer | Well-Capitalized Requirements | |
| Risk-based capital ratios: | |||||||
| Common Equity Tier 1 (“CET1”) capital (2) | 14.5% | 13.6% | 14.3% | 13.4% | 4.5% | 7.0% | 6.5% |
| Tier 1 capital (3) | 14.5% | 13.6% | 14.3% | 13.4% | 6.0% | 8.5% | 8.0% |
| Total capital | 15.8% | 14.9% | 15.6% | 14.7% | 8.0% | 10.5% | 10.0% |
| Tier 1 leverage (2) | 10.6% | 10.0% | 10.4% | 9.8% | 4.0% | 4.0% | 5.0% |
(1)The Current Expected Credit Losses (“CECL”) transition provision permits certain banking organizations to exclude from regulatory capital the initial adoption impact of CECL, plus 25% of the cumulative changes in the allowance for credit losses under CECL for each period until December 31, 2021, followed by a three-year phase-out period in which the aggregate benefit is reduced by 25% in 2022, 50% in 2023 and 75% in 2024. Our capital ratios as of December 31, 2024 include a delay of 25% of the estimated impact of CECL on regulatory capital. The CECL transition was no longer in effect as of June 30, 2025.
(2)CET1 capital and Tier 1 leverage well-capitalized requirements apply to the Bank only. There are no well-capitalized requirements on CET1 capital ratio or Tier 1 leverage ratio for bank holding companies.
(3)Well-capitalized Tier 1 capital ratio requirements for the Company and the Bank are 6.0% and 8.0%, respectively.
The Company is committed to maintaining strong capital levels to assure its investors, customers and regulators that the Company and the Bank are financially sound. As of both June 30, 2025 and December 31, 2024, the Company and the Bank continued to exceed all “well-capitalized” capital requirements and the minimum capital requirements under the Basel III Capital Rules. Total risk-weighted assets increased $1.3 billion to $56.3 billion from December 31, 2024. The increase in the risk-weighted assets was mainly due to loan growth.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.