EAST WEST BANCORP INC

Liquidity. Liquidity risk is the risk that the Company will be unable to meet its obligations as they come due without incurring unacceptable losses or significantly increasing funding costs. Liquidity risk also includes the risk of unexpected deposit outflows and the inability to access funding sources at a reasonable cost when needed. Effective liquidity management is essential to supporting the Company’s operating activities, balance sheet strategy and overall financial strength. The Company’s liquidity management framework is designed to maintain sufficient liquidity to meet expected and unexpected cash flow obligations under both normal and stressed market conditions. To achieve this objective, the Company maintains a diversified funding profile, readily available liquid assets, and access to a broad range of funding sources.

The ROC oversees the Company’s liquidity risk management framework. At the management level, the Company’s Asset/Liability Committee (“ALCO”) establishes the liquidity guidelines that govern the day-to-day active management of the Company’s liquidity position by requiring sufficient asset-based liquidity to cover potential funding requirements and avoid over-dependence on volatile, less reliable funding markets. These guidelines are established and monitored for both the Bank and East West on a stand-alone basis to support East West’s ability to serve as a source of strength for its subsidiaries. The ALCO regularly monitors the Company’s liquidity status and related management processes, and provides regular reports on the Company’s liquidity position relative to policy limits and guidelines to the Board of Directors. The Company believes its liquidity management practices have been effective under normal operating and stressed market conditions.

The Company also maintains a contingency funding plan that outlines escalation procedures, management actions, roles and responsibilities, and communication protocols to address potential liquidity stress events. The contingency funding framework incorporates a series of internal and external early warning indicators designed to identify emerging liquidity risks and facilitate timely management response. The contingency funding plan is reviewed and tested periodically, including through simulated liquidity stress scenarios, to evaluate the effectiveness of response strategies and organizational readiness.

Liquidity Sources — Deposits. Deposits remain the Company’s primary source of funding and provide a stable and cost-effective source of liquidity. Our loans are primarily funded by deposits, which amounted to $71.5 billion as of September 30, 2026, compared with $67.1 billion as of December 31, 2025. The Company’s loan-to-deposit ratio was 84% and 85% as of September 30, 2026 and December 31, 2025, respectively, reflecting continued loan growth supported by a strong deposit base. For further discussion of deposit trends and compositions, see Item 2. MD&A — Balance Sheet Analysis — Depositsin this Form 10-Q.

Other Liquidity Sources. In addition to deposits, the Company maintains access to diversified wholesale funding sources and the capital markets to support its liquidity needs. The availability and cost of these funding sources may be influenced by market conditions, market liquidity and the Company’s credit profile. Management actively monitors funding diversification and liquidity capacity to mitigate concentration and refinancing risks.

As of September 30, 2026, outstanding FHLB advances totaled $3.0 billion, consistent with the total as of December 31, 2025. The FHLB advances as of September 30, 2026 consisted of term borrowings with fixed and floating interest rates ranging from 3.87% to 4.10% and remaining maturities ranging from 20 days to one year. The Company had $964 million of gross repurchase agreements as of September 30, 2026, all of which matured during October 2026. No repurchase agreements were outstanding as of December 31, 2025. Long-term debt, consisting of junior subordinated debt that qualifies as Tier 2 regulatory capital, totaled $33 million and $32 million as of September 30, 2026 and December 31, 2025, respectively.

To support its liquidity management framework, the Company pledges eligible loans or debt securities to the FHLB and the Federal Reserve Bank (“FRB”) discount window as collateral, and maintains securities prepositioned for access to the FRBStanding Repurchase Agreement Facility (“SRF”). The Company regularly monitors the availability and sufficiency of eligible collateral and maintains operational readiness to access these funding sources. Borrowing capacity is dependent on the eligibility and valuation of pledged collateral and is subject to applicable FHLB and FRB requirements. The Company remained within all established liquidity risk limits as of September 30, 2026, and believes its available liquidity sources were sufficient to meet both expected and potential contingent funding needs.

The Company maintains a diversified portfolio of on-balance-sheet liquidity resources and borrowing capacity, including cash and cash equivalents, prepositioned and unpledged debt securities, and secured borrowing capacity supported by eligible loans and debt securities pledged as collateral. The following table summarizes the Company’s total available liquidity as of September 30, 2026 and December 31, 2025:

The Company’s total available liquidity increased $3.9 billion or 10% to $44.7 billion as of September 30, 2026, from $40.8 billion as of December 31, 2025. The increase was primarily driven by growth in securities prepositioned for the FRB SRF, increased secured borrowing capacity and higher levels of cash and cash equivalents.

Cash Requirements. In the ordinary course of business, the Company enters into contractual and other obligations that may require future cash payments, including customer deposit withdrawals, repayments of short- and long-term borrowings, and other cash commitments. Additional information regarding these obligations is provided in Note 9 — Deposits to the Consolidated Financial Statements in the Company’s 2025 Form 10-K, and Note 7 — Affordable Housing Partnership, Tax Credit and Community Reinvestment Act Investments, Netand Note 8 — Federal Home Loan Bank Advances and Long-Term Debtto the Consolidated Financial Statements in this Form 10-Q.

The Company also enters into off-balance sheet arrangements in the normal course of business, including loan commitments, commercial letters of credit for foreign and domestic trade, standby letters of credit (“SBLCs”), and financial guarantees. Because many of these commitments are expected to expire unused or be only partially utilized, their contractual amounts do not necessarily represent future cash requirements. The Company does not expect these commitments as of September 30, 2026 to have a material current or future impact on the Company’s liquidity, financial condition or results of operations. Additional information about the Company’s loan commitments, commercial letters of credit and SBLCs is provided in Note 9 — Commitments and Contingencies to the Consolidated Financial Statements in this Form 10-Q.

The Consolidated Statement of Cash Flows included in this Form 10-Q summarizes the Company’s sources and uses of cash for the first nine months of 2026 and 2025. Cash generated from operating activities, together with available liquidity resources, supports ongoing business operations, loan growth, investment activities, debt service obligations, dividends, and share repurchases.

Liquidity for East West. In addition to managing liquidity at the Bank level, the Company manages liquidity at the parent company level for various operating needs including dividend payments, common stock repurchases, debt service, capital contributions to subsidiaries and other corporate activities. East West’s primary source of liquidity is cash dividends from its subsidiary, East West Bank, subject to applicable regulatory and statutory restrictions. For additional information regarding these restrictions, see Item 1. Business — Supervision and Regulation — Dividends and Other Transfers of Fundsin the Company’s 2025 Form 10-K.

East West held $967 million in cash and cash equivalents and balances due from the Bank as of September 30, 2026, compared with $664 million in cash and cash equivalents as of December 31, 2025. Management believes that East West has sufficient liquidity to meet the projected cash obligations for at least the next 12 months.

Liquidity Stress Testing. The Company performs liquidity stress testing to evaluate the adequacy of liquidity resources under a range of institution-specific and market-wide stress scenarios. These scenario analyses incorporate assumptions reflecting the Company’s liquidity risk profile, including its balance sheet and off-balance sheet exposures, funding structure, business activities, and organizational structure under institution-specific and market-wide stress conditions. Stress testing is used to identify potential funding gaps across various time horizons and to assess the adequacy of available liquidity sources under adverse conditions. The Company maintains contingency funding plans on both the consolidated and individual legal-entity levels that establish response strategies and funding alternatives for potential liquidity stress events.

As of September 30, 2026, the Company believes it has maintained sufficient liquidity resources to support ongoing operations, meet contractual obligations, and satisfy expected and potential contingent funding requirements under both normal and stressed operating conditions. Management is not aware of any events or uncertainties that are reasonably likely to have a material adverse effect on the Company’s liquidity, capital resources or results of operations. For additional information regarding risks that may affect liquidity, see Item 1A. Risk Factorsin the Company’s 2025 Form 10-K.