EAST WEST BANCORP INC

The following table presents income before income taxes, income tax expense and the effective tax rate for the third quarters and first nine months of 2026 and 2025:

Income tax expense was $113 million for the third quarter of 2026, resulting in an effective tax rate of 22.7%, compared with $97 million and an effective tax rate of 20.8% for the same period in 2025. For the first nine months of 2026, income tax expense was $316 million, and the effective tax rate was 22.3%, compared with $290 million and 23.0%, respectively, for the same period in 2025. The increase in income tax expense for both periods was primarily driven by higher pre-tax income, while the three month period additionally reflected lower tax benefits from tax credits. The increase for the nine month period further reflected the partial derecognition of a purchased tax credit in 2026, partially offset by the release of valuation allowance associated with foreign tax credits. Income tax expense and effective tax rate for the nine months ended September 30, 2025 also reflected the impact of a one-time revaluation of deferred tax assets resulting from the adoption of California’s revised state tax apportionment methodology.