EAST WEST BANCORP INC

The Company offers a broad range of lending products to meet the financing needs of its commercial and consumer borrowers. The loan portfolio segments consist of commercial loans, which include C&I, CRE, multifamily residential, and construction and land loans, as well as consumer loans, which include single-family residential (“SFR”), home equity loans and other consumer loans.

The composition of the loan portfolio remained generally consistent as of September 30, 2026 compared with December 31, 2025, as illustrated in the charts below.

Total loans held-for-investment increased $2.8 billion or 5% to $59.7 billion as of September 30, 2026, from December 31, 2025, reflecting broad-based growth across the Company’s major loan portfolios. For additional information regarding loans held-for-investment, 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, consisting of C&I and CRE loans, represented 70% of total loans held-for-investment as of both September 30, 2026 and December 31, 2025. The Company actively monitors the commercial loan portfolio for credit risk and reviews exposures for sensitivity to changes in economic and market conditions.

Commercial — Commercial and Industrial Loans. Total C&I loans increased $1.1 billion or 6% to $19.8 billion as of September 30, 2026. Total C&I loan commitments increased to $29.1 billion as of September 30, 2026 from $27.7 billion as of December 31, 2025, with a utilization rate of 68% as of September 30, 2026, compared with 67% as of December 31, 2025.

The C&I loan portfolio supports a broad range of commercial customers through diverse commercial business lending, working capital lines of credit, trade finance, letters of credit, asset-based lending, asset-backed finance, project finance, equipment financing and other commercial banking products. The majority of the C&I loans had variable interest rates as of both September 30, 2026 and December 31, 2025.

The Company’s portfolio of broadly syndicated C&I loans includes revolving or term loan facilities that are marketed and sold primarily to institutional investors. This portfolio totaled $1.1 billion and $1.0 billion as of September 30, 2026 and December 31, 2025, respectively. Loans to non-depository financial institutions (“NDFI”) totaled $8.1 billion and $7.6 billion as of September 30, 2026 and December 31, 2025, respectively. The NDFI portfolio is diversified across many lending areas, including capital call and management fee lending in our fund finance group, business credit, private equity, and mortgage credit facilities in our structured finance group, film and music library loans in our entertainment group, oil and gas royalty loans in our energy lending group, as well as loans to insurance companies and securities broker-dealers.

The C&I loan portfolio is diversified across a broad range of industries and customer relationships. The Company manages concentration risk through ongoing monitoring of industry, borrower and product exposures, and maintains exposure limits by industry and loan product as part of its credit risk management framework. The following table presents the industry composition of the Company’s C&I loan portfolio as of September 30, 2026 and December 31, 2025:

(1)Prior-period balances have been reclassified for comparability.

Commercial — Total Commercial Real Estate Loans. The Company’s total CRE portfolio consists of CRE, multifamily residential, and construction and land loans. Credit risk is managed through underwriting standards and ongoing portfolio monitoring, including limits and reviews based on property type, geographical concentration, loan-to-value (“LTV”) ratios, and debt service coverage based on parameters established in compliance with supervisory guidance for CRE loans.

The Company’s total CRE loan portfolio remains well-diversified across property types with an average loan size of $3 million as of both September 30, 2026 and December 31, 2025. The following table presents the composition of the Company’s total CRE loans by property type as of September 30, 2026 and December 31, 2025:

(1)Weighted-average LTV is calculated using the most recent available appraisal and current loan commitment for each loan.

The following tables summarize the Company’s CRE, multifamily residential, and construction and land loans by geography as of September 30, 2026 and December 31, 2025. The geographic composition of the portfolio remained generally consistent with the Company's branch footprint and customer base, with California representing the largest concentration. The Company evaluates geographic concentrations in conjunction with local economic conditions, property market fundamentals, and portfolio performance as part of its ongoing credit risk management framework.

California represented 68% of total CRE loans as of both September 30, 2026 and December 31, 2025. As a result, portfolio performance may be influenced by economic conditions, CRE market activity, property values, and other market-specific factors within California. Changes in these factors could affect borrower repayment capacity, collateral values and the level of allowance for credit losses. For additional information regarding risks associated with the Company’s geographic concentration, see Item 1A. Risk Factors — Risks Related to Geographic and Political Uncertaintiesand Risks Related to Financial Mattersin the Company’s 2025 Form 10-K.

Commercial — Commercial Real Estate Loans. The Company primarily provides financing to experienced real estate investors and developers with moderate levels of leverage, many of whom are long-time customers of the Bank. Credit risk is managed through underwriting standards that evaluate borrower cash flows, debt service coverage, collateral values and LTV ratios. Owner-occupied properties represented 19% and 20% of the CRE loans as of September 30, 2026 and December 31, 2025, respectively. The remaining CRE loans were secured by non-owner-occupied, income-producing properties, where 50% or more of the debt service for the loan relies on rental income generated by third-party tenants.

CRE loans may have fixed, variable or hybrid interest rate structures. To assist borrowers in managing interest rate risk, the Company offers derivative hedging products. As of September 30, 2026, 64% of our CRE portfolio had variable rates, of which 42% had customer-level interest rate derivative contracts in place. By comparison, as of December 31, 2025, 61% of our CRE portfolio had variable interest rates, of which 50% had customer-level interest rate derivative contracts in place.

Commercial — Multifamily Residential Loans. The multifamily residential loan portfolio primarily consists of loans secured by residential properties with five or more dwelling 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 typically adjust annually following an initial fixed-rate period of three to 10 years.

Interest rate risk within the multifamily residential loan portfolio is influenced by variable-rate exposure and borrowers’ use of hedging strategies. As of September 30, 2026, 59% of our multifamily residential loan portfolio had variable interest rates, of which 42% had customer-level interest rate derivative contracts in place. In comparison, as of December 31, 2025, 57% of our multifamily residential loan portfolio had variable rates, of which 45% had customer-level interest rate derivative contracts in place.

Commercial — Construction and Land Loans. The construction and land loan portfolio provides financing for a diversified range of real estate projects across multiple property types. Construction loan exposure totaled $816 million as of September 30, 2026, consisting of $463 million in funded loans and $353 million in unfunded commitments, compared with $963 million as of December 31, 2025, consisting of $544 million in funded loans and $419 million in unfunded commitments.

Land loans totaled $292 million and $198 million as of September 30, 2026 and December 31, 2025, respectively. The Company actively monitors construction and land loan exposures through underwriting standards, project-specific reviews, and ongoing oversight of borrower performance, project progress, and collateral values.

Consumer

The residential mortgage loan portfolio consists of SFR and home equity loans that are primarily originated through the Bank’s branch network. The average residential mortgage loan size was $444 thousand and $439 thousand as of September 30, 2026 and December 31, 2025, respectively. The following tables present the geographic distribution and lien priority composition of the Company’s residential mortgage loan portfolios as of September 30, 2026 and December 31, 2025:

Consumer — SFR Loans — Traditional. The Company’s traditional SFR loan portfolio consists of fixed-rate, variable-rate and hybrid loans with hybrid loans generally repricing annually, following an initial fixed-rate period. The Company held a first lien position on all SFR loans as of both September 30, 2026 and December 31, 2025. A significant portion of the loan portfolio consists of reduced-documentation loans that generally require substantial borrower equity contributions at origination, resulting in low origination LTV ratios, typically 65% or less. The weighted-average LTV ratio was 48% and 49% as of September 30, 2026 and December 31, 2025, respectively. The combination of first-lien positions and low borrower leverage has historically resulted in very low delinquency and loss rates.

Consumer — SFR Loans — BTHO. The Company’s BTHO program is designed to expand access to home ownership for creditworthy low- to moderate-income borrowers. The Company held a first lien position on all BTHO loans as of September 30, 2026 and December 31, 2025. The weighted-average LTV ratio was 87% and 88% as of September 30, 2026 and December 31, 2025, respectively.

Consumer — Home Equity Loans. The Company's home equity loan portfolio consists primarily of revolving home equity lines of credit, as well as closed-end home equity loans. Total home equity commitments were $5.9 billion and $5.5 billion as of September 30, 2026 and December 31, 2025, respectively, with a utilization rate of 35% as of both dates. Substantially all unfunded home equity commitments are unconditionally cancellable. The Company held a first lien position on 69% and 70% of total outstanding home equity loans as of September 30, 2026 and December 31, 2025, respectively. Similar to the traditional SFR portfolio, a significant portion of home equity loans are reduced-documentation loans with relatively low LTV ratios, typically 65% or less. The weighted-average LTV ratio was 46% as of both September 30, 2026 and December 31, 2025. As a result, these loans have historically experienced low delinquency and loss rates. Substantially all home equity loans had variable interest rates as of September 30, 2026 and December 31, 2025.

Commercial and consumer loans are originated in accordance with the Company’s underwriting and credit administration standards, which are designed to evaluate borrower repayment capacity, collateral values, cash flows, leverage, and other relevant risk factors. The Company performs quality control reviews and periodic audits of lending activities including assessments of underwriting practices, documentation standards, and compliance with regulatory and legal requirements.