EAST WEST BANCORP INC

For the period ended Mar 31, 2026. Filed May 8, 2026.

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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.

Mar 31, 2026 · Filed May 8, 2026

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 first quarter of 2026 increased year-over-year. The $71 million or 12% year-over-year increase in net interest income, and the 14 bp year-over-year increase in net interest margin primarily reflected lower interest-bearing deposit funding costs and Federal Home Loan Bank (“FHLB”) advances, and increases in loans and AFS debt securities’ average balances, partially offset by lower yields on loans, AFS debt securities, and interest-bearing cash and deposits with banks.

Average interest-earning assets were $78.0 billion for the first quarter of 2026, an increase of $5.3 billion or 7% from the first quarter of 2025. The year-over-year increase in average interest-earning assets primarily reflected loan growth and increases in AFS debt securities, partially offset by decreases in interest-bearing cash and deposits with banks.

The 27 bp year-over-year decrease in the yield on average interest-earning assets to 5.49% for the first quarter of 2026, primarily reflected the impact of lower benchmark interest rates on the loan portfolio.

The average loan yield of 6.11% for the first quarter of 2026, decreased 28 bps, from the first quarter of 2025. The year-over-year decrease in the average loan yield primarily reflected the loan portfolio’s sensitivity to lower benchmark interest rates. Approximately 59% and 58% of loans held-for-investment were variable-rate as of March 31, 2026 and 2025, respectively.

Deposits are an important source of funding for the Company. Average deposits were $67.5 billion for the first quarter of 2026, a $4.9 billion or 8% increase from the first quarter of 2025. The year-over-year increase was primarily driven by growth in time, demand and money market deposits. Average noninterest-bearing deposits were $16.9 billion for the first quarter of 2026, a $1.8 billion or 12% increase from the first quarter of 2025.

The average cost of deposits of 2.13% for the first quarter of 2026, decreased 41 bpsfrom the first quarter of 2025. The average cost of interest-bearing deposits of 2.84% for the first quarter of 2026, decreased 50 bps, from the first quarter of 2025. 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, FHLB advances, securities sold under repurchase agreements (“repurchase agreements”), long-term debt, and short-term borrowings. The average cost of funds of 2.21% for the first quarter of 2026 decreased 43 bps, from the first quarter of 2025. The year-over-year decrease was 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 first quarters of 2026 and 2025:

	Three Months Ended March 31,
2026 · 2025
($ 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	$3,865,615		$29,851			3.13%		$4,087,664			$39,137		3.88%
Securities purchased under resale agreements (“resale agreements”)	425,000		1,625			1.55%		425,000			1,610		1.54%
Debt securities:
AFS (2)(3)	13,609,231		148,164			4.42%		11,766,446			135,519		4.67%
Held-to-maturity (“HTM”) (2)	2,861,401		12,014			1.70%		2,908,402			12,265		1.71%
Total debt securities (2)	16,470,632		160,178			3.94%		14,674,848			147,784		4.08%
Loans:
Commercial and industrial (“C&I”) (2)	18,752,867		297,315			6.43%		16,865,399			293,414		7.06%
Commercial real estate (“CRE”) (2)	21,322,169		315,923			6.01%		20,373,015			311,386		6.20%
Residential mortgage	16,928,080		244,884			5.87%		16,049,719			234,891		5.94%
Other consumer	51,533		756			5.95%		49,578			721		5.90%
Total loans (2)(4)(5)	57,054,649		858,878			6.11%		53,337,711			840,412		6.39%
Restricted equity securities	151,183		4,978			13.35%		165,363			2,859		7.01%
Total interest-earning assets	$77,967,079		$1,055,510			5.49%		$72,690,586			$1,031,802		5.76%
Noninterest-earning assets:
Cash and due from banks	450,219						373,827
Allowance for loan, lease, and securities’ losses	(836,828)						(716,255)
Other assets	3,499,788						3,276,794
Total assets	$81,080,258						$75,624,952
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Checking deposits	$7,652,611		$39,445			2.09%		$7,749,665			$47,911		2.51%
Money market deposits	16,203,527		104,878			2.62%		14,833,615			116,018		3.17%
Savings deposits	1,701,913		3,010			0.72%		1,752,946			3,447		0.80%
Time deposits	25,112,122		208,079			3.36%		23,197,328			224,605		3.93%
Total interest-bearing deposits	50,670,173		355,412			2.84%		47,533,554			391,981		3.34%
Short-term borrowings and federal funds purchased	567		4			2.86%		428			6		5.69%
FHLB advances	2,577,223		25,004			3.93%		3,500,001			38,866		4.50%
Repurchase agreements	350,075		3,290			3.81%		6,684			77		4.67%
Long-term debt and finance lease liabilities	35,566		607			6.92%		35,919			671		7.58%
Total interest-bearing liabilities	$53,633,604		$384,317			2.91%		$51,076,586			$431,601		3.43%
Noninterest-bearing liabilities and stockholders’ equity:
Demand deposits	16,877,461						15,104,028
Accrued expenses and other liabilities	1,521,820						1,575,264
Stockholders’ equity	9,047,373						7,869,074
Total liabilities and stockholders’ equity	$81,080,258						$75,624,952
Total deposits	$67,547,634		$355,412			2.13%		$62,637,582			$391,981		2.54%
Interest rate spread				2.58%						2.33%
Net interest income and net interest margin		$671,193			3.49%				$600,201			3.35%

(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 $1 million and $8 million for the first quarters of 2026 and 2025, respectively.

(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 $11 million and $12 million for the first quarters of 2026 and 2025, 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 March 31,
	Changes Due to
($ in thousands)	Total Change	Volume	Yield/Rate
Interest-earning assets:
Interest-bearing cash and deposits with banks	$(9,286)	$(2,036)	$(7,250)
Resale agreements	15	—	15
Debt securities:
AFS	12,645	20,363	(7,718)
HTM	(251)	(198)	(53)
Total debt securities	12,394	20,165	(7,771)
Loans:
C&I	3,901	31,212	(27,311)
CRE	4,537	14,239	(9,702)
Residential mortgage	9,993	12,732	(2,739)
Other consumer	35	29	6
Total loans	18,466	58,212	(39,746)
Restricted equity securities	2,119	(264)	2,383
Total interest and dividend income	$23,708	$76,077	$(52,369)
Interest-bearing liabilities:
Checking deposits	$(8,466)	$(593)	$(7,873)
Money market deposits	(11,140)	10,070	(21,210)
Savings deposits	(437)	(98)	(339)
Time deposits	(16,526)	17,566	(34,092)
Total interest-bearing deposits	(36,569)	26,945	(63,514)
Short-term borrowings and federal funds purchased	(2)	2	(4)
FHLB advances	(13,862)	(8,078)	(5,784)
Repurchase agreements	3,213	3,230	(17)
Long-term debt and finance lease liabilities	(64)	(7)	(57)
Total interest expense	$(47,284)	$22,092	$(69,376)
Change in net interest income	$70,992	$53,985	$17,007

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