EAST WEST BANCORP INC
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
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Sep 30, 2025 · Filed Nov 7, 2025
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Loan Portfolio
The Company offers a broad range of financial products designed to meet the credit needs of its borrowers. The Company’s loan portfolio segments include commercial loans, which consist of C&I, CRE, multifamily residential, and construction and land loans, as well as consumer loans, which consist of single-family residential, home equity lines of credit (“HELOCs”) and other consumer loans.
The loan composition of the Company’s held-for-investment portfolio was unchanged between September 30, 2025 and December 31, 2024, as presented in the chart below.
Total loans held-for-investment of $55.8 billion as of September 30, 2025 increased $2.0 billion or 4% from December 31, 2024, reflecting well-balanced growth across our major loan types. For additional information on our loans held-for-investment outstanding balances, see Note 6 — Loans Receivable and Allowance for Credit Losses to the Consolidated Financial Statements in this Form 10-Q.
Commercial
The commercial loan portfolio, which includes C&I and total CRE loans, comprised 70% of total loans held-for-investment as of both September 30, 2025 and December 31, 2024. The Company actively monitors the commercial lending portfolio for credit risk and reviews credit exposures for sensitivity to changing economic conditions.
Commercial — Commercial and Industrial Loans. Total C&I loan commitments were $26.8 billion and $25.8 billion as of September 30, 2025 and December 31, 2024, respectively, with a utilization rate of 67% as of both dates. As of September 30, 2025, total C&I loans were $18.0 billion, up $604 million or 3% from December 31, 2024. The C&I loan portfolio includes loans and financing for businesses across a wide spectrum of industries. The Company offers a variety of C&I products, including but not limited to commercial business lending, working capital lines of credit, trade finance, letters of credit, asset-based lending, asset-backed finance, project finance and equipment financing. Additionally, the Company has a portfolio of broadly syndicated C&I loans, which represent revolving or term loan facilities that are marketed and sold primarily to institutional investors. This portfolio totaled $926 million and $845 million as of September 30, 2025 and December 31, 2024, respectively. The majority of the C&I loans had variable interest rates as of both September 30, 2025 and December 31, 2024.
The C&I portfolio is well-diversified by industry. The Company monitors concentrations within the C&I loan portfolio by industry and customer exposure, and has exposure limits by industry and loan product. The following table presents the industry mix within the Company’s C&I loan portfolio as of September 30, 2025 and December 31, 2024:
| September 30, 2025 | December 31, 2024 | |||
|---|---|---|---|---|
| ($ in thousands) | Amount | % | Amount | % |
| Industry: | ||||
| Real estate investment & management | $2,288,810 | 13% | $2,381,186 | 14% |
| Capital call lending | 2,245,484 | 13% | 2,230,457 | 13% |
| Media & entertainment | 2,170,293 | 12% | 2,031,242 | 12% |
| Financial services | 1,126,813 | 6% | 1,005,216 | 6% |
| Manufacturing & wholesale | 1,109,317 | 6% | 1,074,073 | 6% |
| Infrastructure & clean energy | 1,080,645 | 6% | 963,165 | 6% |
| Food production & distribution | 975,328 | 5% | 664,135 | 4% |
| Tech & telecom | 685,106 | 4% | 770,521 | 4% |
| Healthcare services | 660,225 | 4% | 685,549 | 4% |
| Hospitality & leisure | 595,761 | 3% | 575,815 | 3% |
| Oil & gas | 529,410 | 3% | 576,605 | 3% |
| Art finance | 506,101 | 3% | 548,065 | 3% |
| Other | 4,028,236 | 22% | 3,891,129 | 22% |
| Total C&I | $18,001,529 | 100% | $17,397,158 | 100% |
Commercial — Total Commercial Real Estate Loans. The total CRE portfolio consists of CRE, multifamily residential, and construction and land loans. The Company’s underwriting parameters for CRE loans are established in compliance with supervisory guidance, including property type, geography and loan-to-value (“LTV”).
The Company’s total CRE loan portfolio is well-diversified by property type with an average CRE loan size of $3 million as of both September 30, 2025 and December 31, 2024. The following table summarizes the Company’s total CRE loans by property type as of September 30, 2025 and December 31, 2024:
| September 30, 2025 | December 31, 2024 | |||||
|---|---|---|---|---|---|---|
| ($ in thousands) | Amount | % | Weighted Avg. LTV (%) (1) | Amount | % | Weighted Avg. LTV (%) (1) |
| Property types: | ||||||
| Multifamily | $5,037,986 | 24% | 50% | $4,953,442 | 24% | 51% |
| Retail | 4,473,727 | 21% | 47% | 4,347,032 | 21% | 48% |
| Industrial | 4,159,097 | 20% | 46% | 3,972,389 | 20% | 46% |
| Hotel | 2,440,187 | 12% | 51% | 2,404,385 | 12% | 52% |
| Office | 2,189,667 | 10% | 52% | 2,125,210 | 11% | 54% |
| Healthcare | 841,584 | 4% | 51% | 788,806 | 4% | 52% |
| Construction and land | 776,587 | 4% | 50% | 666,162 | 3% | 49% |
| Other | 1,126,203 | 5% | 49% | 1,017,518 | 5% | 50% |
| Total CRE loans | $21,045,038 | 100% | 49% | $20,274,944 | 100% | 50% |
(1)Weighted average LTV is based on most recent LTV, using the most recent available appraisal and current loan commitment.
The following tables provide a summary of the Company’s CRE, multifamily residential, and construction and land loans by geography as of September 30, 2025 and December 31, 2024. The distribution of the total CRE loan portfolio largely reflects the Company’s geographical branch footprint, which is primarily concentrated in California.
| ($ in thousands) | CRE | % | Multifamily Residential | % | Construction and Land | % | Total CRE | % |
|---|---|---|---|---|---|---|---|---|
| Geographic markets: | ||||||||
| Southern California | $7,805,978 | 51% | $2,335,477 | 46% | $294,813 | 38% | $10,436,268 | 50% |
| Northern California | 2,735,099 | 18% | 950,517 | 19% | 171,423 | 22% | 3,857,039 | 18% |
| California | 10,541,077 | 69% | 3,285,994 | 65% | 466,236 | 60% | 14,293,307 | 68% |
| Texas | 1,186,004 | 8% | 520,743 | 11% | 144,962 | 19% | 1,851,709 | 9% |
| New York | 804,797 | 5% | 266,171 | 5% | 31,142 | 4% | 1,102,110 | 5% |
| Washington | 509,126 | 3% | 158,943 | 3% | 9,916 | 1% | 677,985 | 3% |
| Arizona | 312,184 | 2% | 205,330 | 4% | 41,257 | 5% | 558,771 | 3% |
| Nevada | 297,196 | 2% | 154,791 | 3% | — | —% | 451,987 | 2% |
| Other markets | 1,580,783 | 11% | 445,312 | 9% | 83,074 | 11% | 2,109,169 | 10% |
| Total loans | $15,231,167 | 100% | $5,037,284 | 100% | $776,587 | 100% | $21,045,038 | 100% |
| ($ in thousands) | CRE | % | Multifamily Residential | % | Construction and Land | % | Total CRE | % |
|---|---|---|---|---|---|---|---|---|
| Geographic markets: | ||||||||
| Southern California | $7,516,638 | 51% | $2,316,404 | 47% | $230,297 | 35% | $10,063,339 | 50% |
| Northern California | 2,693,768 | 19% | 992,406 | 20% | 163,633 | 24% | 3,849,807 | 19% |
| California | 10,210,406 | 70% | 3,308,810 | 67% | 393,930 | 59% | 13,913,146 | 69% |
| Texas | 1,091,626 | 8% | 467,796 | 9% | 131,963 | 20% | 1,691,385 | 8% |
| New York | 732,694 | 5% | 249,357 | 5% | 44,597 | 7% | 1,026,648 | 5% |
| Washington | 493,972 | 3% | 155,022 | 3% | 10,401 | 1% | 659,395 | 3% |
| Arizona | 348,877 | 2% | 182,955 | 4% | 23,903 | 4% | 555,735 | 3% |
| Nevada | 293,927 | 2% | 139,292 | 3% | — | —% | 433,219 | 2% |
| Other markets | 1,483,838 | 10% | 450,210 | 9% | 61,368 | 9% | 1,995,416 | 10% |
| Total loans | $14,655,340 | 100% | $4,953,442 | 100% | $666,162 | 100% | $20,274,944 | 100% |
The percentage of total CRE loans located in California was 68% and 69%, as of September 30, 2025 and December 31, 2024, respectively. Changes in California’s economy and real estate values could have a significant impact on the collectability of these loans and the required level of allowance for loan and lease losses (“ALLL”). For additional information related to the higher degree of risk from a downturn in the California economic and real estate markets, see Item 1A. Risk Factors — Risks Related to Geopolitical Uncertaintiesand Risks Related to Financial Mattersin the Company’s 2024 Form 10-K.
Commercial — Commercial Real Estate Loans. The Company focuses on providing financing to experienced real estate investors and developers who have moderate levels of leverage, many of whom are long-time customers of the Bank. The Company seeks to underwrite loans with conservative standards for cash flows, debt service coverage and LTV. Owner-occupied properties comprised 20% of the CRE loans as of both September 30, 2025 and December 31, 2024. The remainder were non-owner-occupied properties, where 50% or more of the debt service for the loan is typically provided by rental income from an unaffiliated third party.
Interest rates on CRE loans may be fixed, variable or hybrid. The Company offers derivative hedging products to our customers to manage their interest rate risks. As of September 30, 2025, of the 57% of our CRE portfolio that had variable rates, 53% had customer-level interest rate derivative contracts in place. In comparison, as of December 31, 2024, of the 57% of our CRE portfolio that had variable rates, 54% had customer-level interest rate derivative contracts in place.
Commercial — Multifamily Residential Loans. The multifamily residential loan portfolio is largely comprised of loans secured by residential properties with five or more units. The Company offers a variety of first lien mortgages, including fixed- and variable-rate loans, as well as hybrid loans with interest rates that adjust annually after an initial fixed rate period of three to ten years. The Company also offers hedging products to our customers to manage their interest rate risks. As of September 30, 2025, of the 49% of our multifamily residential portfolio that had variable rates, 55% had customer-level interest rate derivative contracts in place. In comparison, as of December 31, 2024, of the 50% of our multifamily residential portfolio that had variable rates, 50% had customer-level interest rate derivative contracts in place.
Commercial — Construction and Land Loans. Construction and land loans provide financing for a portfolio of projects diversified by real estate property type. Construction loan exposure was comprised of $590 million in loans outstanding, and $473 million in unfunded commitments as of September 30, 2025, compared with $506 million in loans outstanding, and $391 million in unfunded commitments as of December 31, 2024. Land loans totaled $187 million and $160 million as of September 30, 2025 and December 31, 2024, respectively.
Consumer
Residential mortgage loans are primarily originated through the Bank’s branch network. The average total residential mortgage loan size was $439 thousand and $437 thousand as of September 30, 2025 and December 31, 2024, respectively. The following tables summarize the Company’s single-family residential and HELOC loan portfolios by geography and lien priority as of September 30, 2025 and December 31, 2024:
| ($ in thousands) | Single-Family Residential | % | HELOCs | % | Total Residential Mortgage | % |
|---|---|---|---|---|---|---|
| Geographic markets: | ||||||
| Southern California | $5,889,281 | 40% | $866,015 | 47% | $6,755,296 | 41% |
| Northern California | 1,995,362 | 13% | 389,192 | 21% | 2,384,554 | 14% |
| California | 7,884,643 | 53% | 1,255,207 | 68% | 9,139,850 | 55% |
| New York | 4,132,813 | 28% | 275,571 | 15% | 4,408,384 | 26% |
| Washington | 745,233 | 5% | 190,133 | 10% | 935,366 | 6% |
| Massachusetts | 542,513 | 4% | 69,499 | 4% | 612,012 | 4% |
| Georgia | 507,814 | 4% | 20,990 | 1% | 528,804 | 3% |
| Nevada | 483,999 | 3% | 35,452 | 2% | 519,451 | 3% |
| Texas | 505,048 | 3% | — | —% | 505,048 | 3% |
| Other markets | 18,848 | 0% | 5,556 | 0% | 24,404 | 0% |
| Total | $14,820,911 | 100% | $1,852,408 | 100% | $16,673,319 | 100% |
| Lien priority: | ||||||
| First mortgage | $14,820,911 | 100% | $1,302,321 | 70% | $16,123,232 | 97% |
| Junior lien mortgage | — | —% | 550,087 | 30% | 550,087 | 3% |
| Total | $14,820,911 | 100% | $1,852,408 | 100% | $16,673,319 | 100% |
| ($ in thousands) | Single-Family Residential | % | HELOCs | % | Total Residential Mortgage | % |
|---|---|---|---|---|---|---|
| Geographic markets: | ||||||
| Southern California | $5,475,929 | 39% | $853,858 | 47% | $6,329,787 | 39% |
| Northern California | 1,825,462 | 13% | 379,692 | 21% | 2,205,154 | 14% |
| California | 7,301,391 | 52% | 1,233,550 | 68% | 8,534,941 | 53% |
| New York | 4,303,815 | 31% | 266,529 | 15% | 4,570,344 | 29% |
| Washington | 715,968 | 5% | 187,220 | 10% | 903,188 | 6% |
| Massachusetts | 457,147 | 3% | 66,181 | 4% | 523,328 | 3% |
| Georgia | 466,790 | 3% | 20,040 | 1% | 486,830 | 3% |
| Nevada | 447,097 | 3% | 32,578 | 2% | 479,675 | 3% |
| Texas | 468,461 | 3% | — | —% | 468,461 | 3% |
| Other markets | 14,777 | 0% | 5,530 | 0% | 20,307 | 0% |
| Total | $14,175,446 | 100% | $1,811,628 | 100% | $15,987,074 | 100% |
| Lien priority: | ||||||
| First mortgage | $14,175,446 | 100% | $1,322,957 | 73% | $15,498,403 | 97% |
| Junior lien mortgage | — | —% | 488,671 | 27% | 488,671 | 3% |
| Total | $14,175,446 | 100% | $1,811,628 | 100% | $15,987,074 | 100% |
Consumer — Single-Family Residential Loans. The Company offers a variety of single-family residential mortgage loan programs, including fixed- and variable-rate loans, as well as hybrid loans with interest rates that adjust on a regular basis, typically annually, after an initial fixed rate period. The Company was in a first lien position in all of its single-family residential loans as of both September 30, 2025 and December 31, 2024. Many of these loans are reduced documentation loans, for which a substantial down payment is required, resulting in a low LTV ratio at origination, typically 65% or less. The weighted-average LTV ratio was 52% as of both September 30, 2025 and December 31, 2024. These loans have historically experienced low delinquency and loss rates.
Consumer — Home Equity Lines of Credit. Total HELOC commitments were $5.5 billion and $5.3 billion as of September 30, 2025 and December 31, 2024, respectively, with a utilization rate of 34% as of both dates. Substantially all of the Company’s unfunded HELOC commitments are unconditionally cancellable. The Company was in a first lien position for 70% and 73% of total outstanding HELOCs as of September 30, 2025 and December 31, 2024, respectively. Many of these loans are reduced documentation loans, which have a low LTV ratio at origination, typically 65% or less. The weighted-average LTV ratio was 46% as of both September 30, 2025 and December 31, 2024. As a result, these loans have historically experienced low delinquency and loss rates. Substantially all of the Company’s HELOCs were variable-rate as of both September 30, 2025 and December 31, 2024.
All originated commercial and consumer loans are subject to the Company’s conservative underwriting guidelines and loan origination standards. Management believes that the Company’s underwriting criteria and procedures adequately consider the unique risks associated with these products. The Company conducts quality control procedures and periodic audits, including the review of lending and legal requirements, to ensure that the Company is in compliance with these requirements.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.