EAST WEST BANCORP INC

The following table presents the components of noninterest expense for the third quarters and first nine months of 2026 and 2025:

Noninterest expense was $283 million for the third quarter of 2026, an increase of $6 million or 2% compared with the third quarter of 2025. The increase was primarily driven by higher amortization of tax credit and CRA investments, computer- and software-related expense, occupancy and equipment expense, and deposit insurance premiums and regulatory assessments. These increases were partially offset by lower compensation and employee benefits, lower other operating expense, improved OREO results, and decreases in certain other noninterest expense categories. For the first nine months of 2026, noninterest expense was $854 million, an increase of $69 million or 9% compared with the first nine months of 2025. The increase was primarily driven by higher compensation and employee benefits, amortization of tax credit and CRA investments, computer- and software-related expense, and occupancy and equipment expense, partially offset by improved OREO results and decreases in certain other noninterest expense categories.

Compensation and employee benefits were $170 million for the third quarter of 2026, a decrease of $6 million or 3% compared with the third quarter of 2025. The decrease primarily reflected lower stock compensation expense resulting from changes in the recognition of equity award expense for retirement-eligible employees in the prior-year period, partially offset by staffing growth. For the first nine months of 2026, compensation and employee benefits were $515 million, an increase of $48 million or 10% compared with the first nine months of 2025. The increase was primarily driven by staffing growth, higher incentive compensation, and increased employer matching contributions under the Company’s 401(k) plan, partially offset by lower stock compensation expense resulting from the same change in equity award expense recognition for retirement-eligible employees in the prior-year period.

Occupancy and equipment expense was $19 million for the third quarter of 2026, an increase of $2 million or 13% compared with the third quarter of 2025. For the first nine months of 2026, occupancy and equipment expense was $57 million, an increase of $8 million or 17% compared with the first nine months of 2025. The increases were primarily attributable to higher depreciation expense associated with leasehold improvements and a building acquired during the first quarter of 2026, as well as higher rental expense, partially offset by increased rental income.

Computer- and software-related expense was $18 million for the third quarter of 2026, an increase of $5 million or 39% compared with the third quarter of 2025. For the first nine months of 2026, computer- and software-related expense was $48 million, an increase of $8 million or 21% compared with the first nine months of 2025. The increases primarily reflected a write-off of certain technology-related assets, and higher software subscription, licensing and technology infrastructure costs associated with ongoing investments in cybersecurity, digital capabilities, automation initiatives and operational scalability to support the Company’s growth.

Deposit insurance premiums and regulatory assessments were $11 million for the third quarter of 2026, an increase of $2 million or 22% compared with the third quarter of 2025. For the first nine months of 2026, deposit insurance premiums and regulatory assessments were $30 million, an increase of $2 million or 5% compared with the first nine months of 2025. The increases primarily reflected lower reversals of previously recognized FDIC charges during 2026 compared with 2025. For additional information on the FDIC charges, refer to Item 1. Business — Supervision and Regulation — FDIC Deposit Insurance Assessmentsin the Company’s 2025 Form 10-K.

OREO income was $185 thousand for the third quarter of 2026, compared with OREO expense of $2 million for the third quarter of 2025. For the first nine months of 2026, OREO expense was $2 million, a decrease of $4 million or 69% compared with the first nine months of 2025. The improvement was primarily due to higher gains on the sale of OREO properties.

Other operating expense was $33 million for the third quarter of 2026, a decrease of $3 million or 9% compared with the third quarter of 2025. For the first nine months of 2026, other operating expense was $108 million, a decrease of $3 million or 2% compared with the first nine months of 2025. The decreases were mainly due to legal expense recoveries associated with the resolution of problem loans.

Amortization of tax credit and CRA investments was $24 million for the third quarter of 2026, an increase of $8 million or 51% compared with the third quarter of 2025. For the first nine months of 2026, amortization of tax credit and CRA investments was $69 million, an increase of $11 million or 19% compared with the first nine months of 2025. The increases primarily reflected the volume and timing of tax credit investments placed in service during the respective periods.