EAST WEST BANCORP INC

The following discussion provides information about the results of operations, financial condition, liquidity and capital resources of East West Bancorp, Inc. (referred to herein on an unconsolidated basis as “East West” and on a consolidated basis as the “Company,” “we,” “our” or “EWBC”) and its subsidiaries, including its subsidiary bank, East West Bank and its subsidiaries (referred to herein as “East West Bank” or the “Bank”). This information is intended to facilitate the understanding and assessment of significant changes and trends related to the Company’s results of operations and financial condition. This discussion and analysis should be read in conjunction with the Consolidated Financial Statements and the accompanying notes presented elsewhere in this Quarterly Report on Form 10-Q (this “Form 10-Q”), and the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) on February 27, 2026 (the “Company’s 2025 Form 10-K”).

Organization and Strategy

East West is a bank holding company incorporated in Delaware on August 26, 1998, and is registered under the Bank Holding Company Act of 1956, as amended. The Company commenced business on December 30, 1998 when, pursuant to a reorganization, it acquired all of the voting stock of the Bank, which became its principal asset. The Bank is an independent commercial bank headquartered in California that focuses on the financial service needs of individuals and businesses that operate in both the U.S. and Asia. Through over 110 locations in the U.S. and Asia, the Company provides a full range of consumer and commercial products and services through the following three business segments: (1) Consumer and Business Banking and (2) Commercial Banking, with the remaining operations recorded in (3) Treasury and Other. The Company’s principal activity is lending to and accepting deposits from businesses and individuals. We are committed to enhancing long-term shareholder value by growing loans, deposits and revenue, improving profitability, and investing for the future while managing risks, expenses and capital. Our business model is built on customer loyalty and engagement, understanding our customers’ financial goals, and meeting our customers’ financial needs through our diverse products and services. We expect our relationship-focused business model to continue generating organic growth from existing customers and to expand our targeted customer bases. As of September 30, 2026, the Company had $86.0 billion in total assets and approximately 3,500 full-time equivalent employees. For additional information on our strategy, and the products and services provided by the Bank, see Item 1. Business — Organizationand Banking Servicesin the Company’s 2025 Form 10-K.

Current Developments

Economic Developments

During the nine months ended September 30, 2026, the economic environment was impacted by shifting interest rates, persistent inflationary pressures, geopolitical developments, and evolving trade and tariff policies. In September 2026, the Federal Reserve increased the federal funds rate for the first time since July 2023. Higher long-term interest rates continued to affect borrowing costs and activity in certain interest rate-sensitive sectors. In addition, geopolitical developments, changes in global trade conditions, and economic conditions in China contributed to uncertainty in cross-border business activity and financial markets. The Company continues to monitor economic, market, regulatory, and geopolitical developments, including those affecting U.S.-China trade and commercial activity, to assess their potential impact on its customers, business, financial condition, results of operations, and credit quality.

Further discussion of the potential impacts on the Company’s business due to the economic environment has been provided in Item 1A. — Risk Factors — Risks Related to Geographic and Political Uncertaintiesand — Risks Related to Financial Mattersin the Company’s 2025 Form 10-K.

Regulatory Updates

In March 2026, the federal banking agencies issued proposed revisions to the U.S. regulatory capital framework that would modify certain aspects of the standardized approach for calculating regulatory capital requirements, including the treatment of certain exposure categories that are relevant to the Company. The Company continues to monitor these proposals and evaluate their potential impact on its regulatory capital position.

In June 2026, the Federal Deposit Insurance Corporation (“FDIC”) issued two proposals that would modify certain requirements applicable to the Bank. The first proposal would streamline resolution planning requirements for insured depository institutions, including increasing the applicability threshold to institutions with $100 billion or more in total assets and reducing certain filing requirements. The second proposal would revise deposit insurance assessment rates for institutions with total assets of $30 billion or more, including the Bank, and provide opportunities for assessment rate reductions based on specific resolution preparedness and data accessibility criteria. The Company continues to evaluate these proposals and their impact on the Bank.

In June 2026, the California Air Resources Board (“CARB”) proposed revisions to the implementation of California’s climate requirements under SB 253, including deferring the initial reporting deadline for Scope 1 and Scope 2 greenhouse gas emissions disclosures to November 10, 2026. In September 2026, CARB issued guidance regarding the initial reporting cycle and implementation of new reporting requirements. In October 2026, the California Office of Administrative Law approved CARB's initial regulation, formalizing the November 10, 2026 reporting deadline. The Company continues to monitor these regulatory developments and evaluate their potential impact on its reporting obligations, disclosure controls and procedures and reporting processes.