East West Bancorp, Inc. (NASDAQ:EWBC) Q2 2021 Earnings Conference Call July 22, 2021 11:30 AM ET Company Participants Julianna Balicka - Director, Investor Relations Dominic Ng - Chairman & Chief Executive Officer Irene Oh - Chief Financial Officer Conference Call Participants Ebrahim Poonawala - Bank of America Ken Zerbe - Morgan Stanley Jared Shaw - Wells Fargo Securities Vilas Abraham - UBS Matthew Clark - Piper Sandler Dave Rochester - Compass Point Elan Zanger - Jefferies Brandon King - Truist Chris M ...

Financial Highlights - Net income for Q2 2021 was $225 million [6] - Diluted EPS for Q2 2021 was $1.57 [6] - Total revenue for Q2 2021 reached $445 million [6] - Record loans reached $40.1 billion [6,7,10,14] - Record deposits reached $52.6 billion [6,7] - Record demand deposits reached $21.8 billion [6,7] Balance Sheet Strength (as of June 30, 2021) - Total assets were $59.855 billion, a $2.981 billion increase from the previous quarter [6] - Customer deposits totaled $52.583 billion, a $3.036 billion increase from the previous quarter [6] - Gross loans (excluding PPP) were $38.640 billion, a $1.124 billion increase from the previous quarter [6] - PPP loans decreased to $1.433 billion from $2.073 billion in the previous quarter [6,13] - Total stockholders' equity was $5.548 billion, a $263 million increase from the previous quarter [6] Asset Quality - Criticized loans decreased by 15% Q-o-Q, representing 2.6% of loans HFI [24] - Nonperforming assets decreased by 13% Q-o-Q, representing 0.38% of total assets [24] - ALLL coverage of loans was 1.46% as of June 30, 2021 [6,27]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each classTrading Symbol(s)Name of each exchange on which registered Common Stock, par value $0.001 per share EWBC The Nasdaq Global Select Market FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission ...

East West Bancorp, Inc. (NASDAQ:EWBC) Q4 2020 Results Earnings Conference Call January 28, 2021 11:30 AM ET Company Participants Julianna Balicka - Director, Strategy & Corporate Development Dominic Ng - Chairman & CEO Irene Oh - CFO Conference Call Participants Ebrahim Poonawala - Bank of America Ken Zerbe - Morgan Stanley Michael Young - Truist Securities Dave Rochester - Compass Point. Chris McGratty - KBW Jared Shaw - Wells Fargo Securities Matthew Clark - Piper Sandler Brock Vandervliet - UBS David Chi ...

| --- | --- | |-----------------------|-------| | | | | | | | | | | | | | EWBC Earnings Results | | NK Forward-Looking Statements Forward-Looking Statements Certain matters set forth herein (including any exhibits hereto) constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including forwardlooking statements relating to our current business plans and expectations regarding future operating results. Forward-looking statements may include, but ar ...

PART I — FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for East West Bancorp, Inc. as of September 30, 2020, including balance sheet, income statement, and detailed notes [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2020, total assets increased to **$50.37 billion**, up 14% from **$44.20 billion** at year-end 2019, driven by loans and cash, with liabilities growing to **$45.25 billion** due to a 12% increase in deposits to **$41.68 billion** and higher long-term debt, while equity rose slightly to **$5.13 billion** Consolidated Balance Sheet Highlights (Unaudited, $ in millions) | Financial Metric | September 30, 2020 | December 31, 2019 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Assets** | **50,371.5** | **44,196.1** | **14.0%** | | Cash and cash equivalents | 4,506.9 | 3,261.1 | 38.2% | | Loans held-for-investment, net | 36,818.9 | 34,420.3 | 7.0% | | **Total Liabilities** | **45,245.4** | **39,178.5** | **15.5%** | | Total deposits | 41,680.6 | 37,324.3 | 11.7% | | Long-term debt and finance lease liabilities | 1,579.3 | 152.3 | 937.2% | | **Total Stockholders' Equity** | **5,126.1** | **5,017.6** | **2.2%** | [Consolidated Statement of Income](index=5&type=section&id=Consolidated%20Statement%20of%20Income) Net income for Q3 2020 was **$159.5 million**, a 7% decrease year-over-year, and **$403.7 million** for the nine months, down 17% due to a significant increase in provision for credit losses Statement of Income Summary (Unaudited, $ in millions) | Metric | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Net interest income | 324.1 | 369.8 | 1,030.6 | 1,099.6 | | Provision for credit losses | 10.0 | 38.3 | 186.3 | 80.1 | | Noninterest income | 49.6 | 51.5 | 162.3 | 146.4 | | Noninterest expense | 167.7 | 176.6 | 534.2 | 541.2 | | **Net Income** | **159.5** | **171.4** | **403.7** | **485.8** | | **Diluted EPS** | **$1.12** | **$1.17** | **$2.82** | **$3.33** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail financial statements, including accounting policies, fair value measurements, and specifics on securities, derivatives, loans, and the adoption of the CECL standard in 2020 - The Company adopted ASU 2016-13 (CECL) on January 1, 2020, resulting in a **$125.2 million** increase to the allowance for loan losses, a **$10.5 million** increase to the allowance for unfunded credit commitments, and a corresponding after-tax decrease to opening retained earnings of **$98.0 million**[32](index=32&type=chunk) - Under the Paycheck Protection Program (PPP), the Company originated over 7,400 loans with an outstanding balance of **$1.77 billion** as of September 30, 2020, with no allowance for loan losses recorded due to SBA guarantee[53](index=53&type=chunk) - The Company elected not to apply Troubled Debt Restructuring (TDR) classification to COVID-19 related loan modifications for borrowers current as of December 31, 2019, in accordance with the CARES Act[52](index=52&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=65&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, balance sheet changes, and risk management, highlighting the impact of COVID-19 and maintaining strong capital and liquidity despite economic headwinds - The COVID-19 pandemic caused significant economic disruption, leading to a **133% increase** in the provision for credit losses to **$186.3 million** for the first nine months of 2020[314](index=314&type=chunk) - As part of its pandemic response, the company funded over 7,400 PPP loans totaling **$1.77 billion** and drew **$1.43 billion** from the Federal Reserve's PPPLF as of September 30, 2020[299](index=299&type=chunk) - The company applied the CECL Capital Transition rule, temporarily delaying the accounting standard's effects on regulatory capital for two years, followed by a three-year transition period[302](index=302&type=chunk) [Results of Operations](index=72&type=section&id=Results%20of%20Operations) Q3 2020 net interest income decreased 12% to **$324.1 million** with net interest margin compressing 87 bps to 2.72% due to lower rates, while noninterest income and expense saw modest declines, and the effective tax rate decreased to 14.5% Net Interest Income and Margin Comparison | Metric | Q3 2020 | Q3 2019 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $324.1M | $369.8M | (12%) | | Net Interest Margin | 2.72% | 3.59% | (87 bps) | - The decrease in net interest income and margin was primarily driven by a cumulative **175 basis point** reduction in the federal funds rate since September 30, 2019, which lowered yields on interest-earning assets[317](index=317&type=chunk)[330](index=330&type=chunk) [Balance Sheet Analysis](index=84&type=section&id=Balance%20Sheet%20Analysis) Total assets grew 14% to **$50.37 billion** from year-end 2019, driven by an 8% increase in loans to **$37.44 billion** and a 37% increase in AFS debt securities, while total deposits rose 12% to **$41.68 billion**, fueled by a 35% surge in noninterest-bearing demand deposits, with capital ratios remaining strong - Total loans increased by **$2.66 billion** (8%) since year-end 2019, with growth driven by PPP loan funding in the C&I portfolio, as well as growth in commercial real estate and single-family residential loans[322](index=322&type=chunk) - Total deposits grew by **$4.36 billion** (12%) since year-end 2019, primarily from a **$3.84 billion** increase in noninterest-bearing demand deposits, which grew to comprise **36%** of total deposits[323](index=323&type=chunk)[464](index=464&type=chunk) Regulatory Capital Ratios | Ratio | September 30, 2020 | Well-Capitalized Requirement | | :--- | :--- | :--- | | CET1 capital | 12.8% | 6.5% | | Tier 1 capital | 12.8% | 8.0% | | Total capital | 14.5% | 10.0% | | Tier 1 leverage | 9.8% | 5.0% | [Risk Management](index=100&type=section&id=Risk%20Management) The company's risk management focuses on credit, liquidity, and market risks, with nonperforming assets rising to 0.52% and allowance for loan losses increasing to 1.65% due to the pandemic, while liquidity remained strong and the company maintained an asset-sensitive position - Nonperforming assets increased to **$259.9 million** (**0.52%** of total assets) as of September 30, 2020, up from **$121.5 million** (**0.27%** of total assets) at year-end 2019, primarily driven by inflows of C&I oil & gas loans and CRE loans to nonaccrual status[495](index=495&type=chunk) - The allowance for loan losses to loans held-for-investment ratio increased to **1.65%** at September 30, 2020, from **1.03%** at December 31, 2019, due to CECL adoption and COVID-19's adverse economic impact[324](index=324&type=chunk) - The company's net interest income simulation shows an asset-sensitive position, projecting a **6.9% increase** in net interest income over 12 months with a **+100 basis point** instantaneous rate shock[560](index=560&type=chunk)[561](index=561&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=121&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the detailed discussion of market risk, including interest rate risk, provided in the Management's Discussion and Analysis section of this report [Item 4. Controls and Procedures](index=121&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2020, with no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of September 30, 2020[606](index=606&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[608](index=608&type=chunk) PART II — OTHER INFORMATION [Item 1. Legal Proceedings](index=122&type=section&id=Item%201.%20Legal%20Proceedings) The company is party to various legal actions arising in the normal course of business, with further details provided in Note 10 of the Consolidated Financial Statements - The company is involved in various legal actions in the ordinary course of business, with further details provided in Note 10 of the financial statements[611](index=611&type=chunk) [Item 1A. Risk Factors](index=122&type=section&id=Item%201A.%20Risk%20Factors) This section updates the company's risk factors, primarily focusing on the uncertain and ongoing impacts of the COVID-19 pandemic on business, financial condition, credit risk, market volatility, and operational challenges - The COVID-19 pandemic is identified as a primary risk factor, with potential continued adverse impacts on business operations, financial condition, liquidity, and results of operations, the extent of which remains uncertain[612](index=612&type=chunk) - The pandemic could continue to negatively affect borrowers' ability to meet their obligations, potentially leading to increased charge-offs and provisions for credit losses, especially given the concentration of loans secured by real estate[617](index=617&type=chunk) - Increased remote work has heightened cybersecurity risks, as it may create more opportunities for cybercriminals to exploit vulnerabilities and employees may be more susceptible to phishing and social engineering attempts[615](index=615&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=124&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company had no unregistered equity sales in Q3 2020 but repurchased **4,471,682 shares** for **$146.0 million** in March 2020, with **$354.0 million** remaining available under the repurchase program as of September 30, 2020 - The company repurchased **4,471,682 shares** of common stock during the first nine months of 2020 at an average price of **$32.64 per share**, with all repurchases occurring in March 2020[622](index=622&type=chunk) - As of September 30, 2020, approximately **$354.0 million** remained available for future repurchases under the company's publicly announced stock repurchase program[622](index=622&type=chunk) [Item 6. Exhibits](index=125&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including employment agreement amendments, CEO and CFO certifications, and Interactive Data Files (XBRL)

Financial Performance - The company's net income for 3Q20 was $159.5 million, with diluted EPS of $1.12[2, 33] - Total revenue for 3Q20 was $374 million[2] - Adjusted efficiency ratio for 3Q20 was 41.3%[2] - Return on average assets was 1.58% in 3Q19, 0.83% in 2Q20 and 1.26% in 3Q20[2] Balance Sheet - Record loans reached $37.4 billion as of 09/30/20[2, 4] - Record deposits reached $41.7 billion as of 09/30/20[2, 4] - Record demand deposits reached $14.9 billion as of 09/30/20[2] - Book value per share was $36.22 as of 09/30/20, a 3% increase Q-o-Q and 8% increase Y-o-Y[6] Loan Portfolio - Total CRE loans amounted to $14.7 billion as of 09/30/20, representing 39% of total loans[9, 12] - C&I loans (excluding PPP) totaled $11.5 billion, representing 31% of total loans[4, 9] - PPP loans amounted to $1.8 billion as of 09/30/20, representing 5% of total loans[4, 9] Asset Quality - Loans on COVID-19 related deferral were $1.3 billion as of 10/20/20, representing 3.4% of total loans, down from 4.2% as of 09/30/20 and 8.0% as of 06/30/20[24]

East West Bancorp, Inc. (NASDAQ:EWBC) Q3 2020 Results Earnings Conference Call October 22, 2020 11:30 AM ET Company Participants Julianna Balicka - Director, Strategy & Corporate Development Dominic Ng - Chairman & CEO Irene Oh - CFO Conference Call Participants Ebrahim Poonawala - Bank of America Ken Zerbe - Morgan Stanley Jared Shaw - Wells Fargo Chris McGratty - KBW Dave Rochester - Compass Point Gary Tenner - D.A. Davidson Matthew Clark - Piper Sandler David Chiaverini - Wedbush Securities Brock Vanderv ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.001 Par Value EWBC The Nasdaq Global Select Market FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file num ...

East West Bancorp, Inc. (NASDAQ:EWBC) Q2 2020 Earnings Conference Call July 23, 2020 11:30 AM ET Company Participants Julianna Balicka - Director, Strategy & Corporate Development Dominic Ng - Chairman & CEO Irene Oh - CFO Conference Call Participants Ebrahim Poonawala - Bank of America Jared Shaw - Wells Fargo Ken Zerbe - Morgan Stanley Michael Young - SunTrust Chris McGratty - KBW Lana Chan - BMO Capital Markets Dave Rochester - Compass Point David Chiaverini - Wedbush Securities Brock Vandervliet - UBS O ...