Financial Performance - The company reported net income available to common equity of $310 million, resulting in diluted quarterly earnings per share of $2.24[9] - Record quarterly revenue reached $703 million, driven by record net interest income (NII) of $617 million[13] - The company's Return on Average Assets (ROAA) was 1.62%, and the Return on Average Common Equity (ROACE) was 15.4% (16.7% Adjusted ROTCE)[13] Balance Sheet and Loan Portfolio - Total average loans increased by 2% quarter-over-quarter, with strong growth in C&I and residential mortgage sectors[12] - Total average deposits also grew by 2% quarter-over-quarter, supported by strong growth from commercial and consumer customers, and a reduction in average deposit cost[12] - Average loans reached $54.3 billion, with C&I loans at $17.4 billion and residential mortgages at $5 billion[18] - Average deposits totaled $63.7 billion, showing year-over-year growth of 9%[14] Asset Quality - Criticized loans decreased by 14 basis points quarter-over-quarter to 2.15%[9] - Nonaccrual loans decreased by 3 basis points quarter-over-quarter to 25 basis points, with nonperforming assets at 22 basis points[12] - Net charge-offs were $15 million, equivalent to 11 basis points annualized[12] - The company bolstered its Allowance for Loan Losses (ALLL) to 1.38%, reflecting changes in the economic outlook[12] Capital and Ratios - The company's Tangible Common Equity (TCE) ratio stood at 10%, and the Common Equity Tier 1 (CET1) ratio was 14.5%[13] - The company repurchased $2 million shares in 2Q25, with $241 million remaining available under the share repurchase authorization[51] Outlook - The company expects full-year 2025 loan growth in the range of 4% to 6% year-over-year and net interest income trending above 7%[53]

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) This section provides an overview of East West Bancorp's strong Q2 2025 financial performance, highlighting record revenue, net interest income, and key financial metrics [Second Quarter 2025 Overview](index=1&type=section&id=Second%20Quarter%202025%20Overview) East West Bancorp reported strong financial results for Q2 2025, achieving record quarterly revenue and net interest income, with net income reaching $310 million, or $2.24 per diluted share, alongside record growth in total loans and deposits and resilient credit trends - East West Bancorp achieved record quarterly revenue and net interest income in **Q2 2025**[1](index=1&type=chunk) - Total loans and deposits reached new records of **$55.0 billion** and **$65.0 billion**, respectively, as of June 30, 2025[1](index=1&type=chunk) - Credit trends were resilient, with criticized loans and nonperforming assets declining quarter-over-quarter, and the tangible common equity ratio grew to **10%**[1](index=1&type=chunk) Q2 2025 Key Financial Metrics | Metric | Value ($) | | :----------------------------------- | :---------- | | Net Income | $310 million | | Diluted EPS | $2.24 | | Return on Average Common Equity | 15.4% | | Total Stockholders' Equity to Assets Ratio | 10.5% | | Book Value per Share (QoQ growth) | $1.97 | | Tangible Book Value per Share (QoQ growth) | $1.97 | [Key Financial Highlights (Table)](index=1&type=section&id=Key%20Financial%20Highlights%20%28Table%29) The financial highlights table provides a comparative overview of key performance indicators for the three months ended June 30, 2025, versus March 31, 2025, showing quarter-over-quarter changes in dollar amounts and percentages Financial Highlights (QoQ Change) | ($ in millions, except per share data) | June 30, 2025 | March 31, 2025 | $ Change | % Change | | :----------------------------------- | :------------ | :------------- | :------- | :------- | | Total Revenue | $703 | $692 | $11 | 2 % | | Net Income | 310 | 290 | 20 | 7 | | Diluted Earnings per Share | $2.24 | $2.08 | $0.16 | 8 | | Book Value per Share | $59.51 | $57.54 | $1.97 | 3 | | Tangible Book Value per Share | $56.10 | $54.13 | $1.97 | 4 % | | Return on Average Assets | 1.62% | 1.56% | — | 6 bps | | Return on Average Common Equity | 15.42% | 14.96% | — | 46 bps | | Total Assets | $78,158 | $76,165 | $1,993 | 3 % | [Balance Sheet Analysis](index=2&type=section&id=Balance%20Sheet%20Analysis) This section analyzes East West Bancorp's balance sheet, detailing robust growth in assets, loans, and deposits, alongside sustained capital strength [Assets, Loans, and Deposits](index=2&type=section&id=Assets%2C%20Loans%2C%20and%20Deposits) East West Bancorp's balance sheet demonstrated robust growth in Q2 2025, with total assets increasing by $2.0 billion quarter-over-quarter and $5.7 billion year-over-year, as both total loans and deposits reached new record highs driven by broad-based growth Balance Sheet Growth (QoQ & YoY) | Metric | June 30, 2025 | March 31, 2025 | Qtr-o-Qtr Change | June 30, 2024 | Yr-o-Yr Change | | :-------------------- | :------------ | :------------- | :--------------- | :------------ | :--------------- | | Total Assets | $78.2 billion | $76.2 billion | +$2.0 billion (3%) | $72.5 billion | +$5.7 billion (8%) | | Total Loans | $55.0 billion | $54.3 billion | +$0.7 billion | $52.8 billion | +$2.2 billion (4%) | | Total Deposits | $65.0 billion | $63.1 billion | +$2.0 billion | $60.0 billion | +$5.0 billion (8%) | - Average interest-earning assets increased by **$1.2 billion (2%)** quarter-over-quarter, primarily due to a **$0.9 billion** increase in average total loans and a **$0.7 billion** increase in average AFS debt securities[3](index=3&type=chunk) - Noninterest-bearing deposits constituted **24%** of total deposits as of June 30, 2025[3](index=3&type=chunk) [Capital Strength](index=2&type=section&id=Capital%20Strength) East West maintained strong capital levels, exceeding regulatory requirements for well-capitalized institutions and regional bank averages, with stockholders' equity growing 3% quarter-over-quarter and key capital ratios improving Capital Metrics (QoQ & YoY) | EWBC Capital | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :------------ | | Total capital ratio | 15.82% | 15.63% | 15.05% | | CET1 capital ratio | 14.51% | 14.32% | 13.74% | | Tier 1 capital ratio | 14.51% | 14.32% | 13.74% | | Leverage ratio | 10.60% | 10.46% | 10.36% | | Total stockholders' equity to assets ratio | 10.49% | 10.41% | 9.96% | | Tangible common equity ratio | 9.95% | 9.85% | 9.37% | - Stockholders' equity increased to **$8.2 billion**, up **3%** quarter-over-quarter[3](index=3&type=chunk) - Book value per share was **$59.51**, up **$1.97 (3%)** quarter-over-quarter, and tangible book value per share was **$56.10**, up **$1.97 (4%)** quarter-over-quarter[3](index=3&type=chunk) [Condensed Consolidated Balance Sheet (Table 1)](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheet%20%28Table%201%29) Table 1 presents the condensed consolidated balance sheet, detailing assets, liabilities, and stockholders' equity as of June 30, 2025, March 31, 2025, and June 30, 2024, along with quarter-over-quarter and year-over-year percentage changes Condensed Consolidated Balance Sheet Highlights | Metric | June 30, 2025 | March 31, 2025 | Qtr-o-Qtr % Change | June 30, 2024 | Yr-o-Yr % Change | | :----------------------------------- | :------------ | :------------- | :----------------- | :------------ | :----------------- | | Total assets | $78,158,067 | $76,165,013 | 2.6 % | $72,468,272 | 7.9 % | | Loans held-for-investment ("HFI") | 54,200,768 | 53,517,878 | 1.3 | 52,084,115 | 4.1 | | Deposits | 65,029,493 | 63,052,105 | 3.1 | 59,999,785 | 8.4 | | Total liabilities | 69,956,300 | 68,235,548 | 2.5 | 65,253,158 | 7.2 | | Stockholders' equity | 8,201,767 | 7,929,465 | 3.4 | 7,215,114 | 13.7 | | Book value per share | $59.51 | $57.54 | 3.4 % | $52.06 | 14.3 % | | Tangible book value per share | $56.10 | $54.13 | 3.6 | $48.65 | 15.3 | [Total Loans and Deposits Detail (Table 2)](index=8&type=section&id=Total%20Loans%20and%20Deposits%20Detail%20%28Table%202%29) Table 2 provides a detailed breakdown of total loans and deposits by category and segment, illustrating the composition and growth trends across different loan types and deposit products/regions Loans HFI by Category (QoQ & YoY) | Loans HFI | June 30, 2025 | March 31, 2025 | Qtr-o-Qtr % Change | June 30, 2024 | Yr-o-Yr % Change | | :-------------------------- | :------------ | :------------- | :----------------- | :------------ | :----------------- | | Commercial and industrial ("C&I") | $17,822,881 | $17,460,744 | 2.1 % | $16,875,009 | 5.6 % | | Total CRE | 20,667,403 | 20,529,960 | 0.7 | 20,327,598 | 1.7 | | Total residential mortgage | 16,420,962 | 16,211,399 | 1.3 | 15,509,148 | 5.9 | | Total loans HFI | 54,961,184 | 54,252,734 | 1.3 | 52,767,909 | 4.2 | Deposits by Product (QoQ & YoY) | Deposits by product | June 30, 2025 | March 31, 2025 | Qtr-o-Qtr % Change | June 30, 2024 | Yr-o-Yr % Change | | :-------------------------- | :------------ | :------------- | :----------------- | :------------ | :----------------- | | Noninterest-bearing demand | $15,470,239 | $15,169,775 | 2.0 % | $14,922,741 | 3.7 % | | Interest-bearing checking | 8,143,893 | 7,591,847 | 7.3 | 7,758,081 | 5.0 | | Money market | 15,420,318 | 14,885,732 | 3.6 | 13,775,908 | 11.9 | | Time deposits | 24,311,340 | 23,664,707 | 2.7 | 21,770,687 | 11.7 | | Total deposits | $65,029,493 | $63,052,105 | 3.1 % | $59,999,785 | 8.4 % | Deposits by Segment/Region (QoQ & YoY) | Deposits by segment/region | June 30, 2025 | March 31, 2025 | Qtr-o-Qtr % Change | June 30, 2024 | Yr-o-Yr % Change | | :------------------------- | :------------ | :------------- | :----------------- | :------------ | :----------------- | | Consumer and Business Banking - U.S. | $33,407,064 | $33,023,739 | 1.2 % | $31,108,589 | 7.4 % | | Commercial Banking - U.S. | 23,595,005 | 22,571,582 | 4.5 | 23,064,569 | 2.3 | | International Branches | 3,579,005 | 3,524,223 | 1.6 | 3,376,971 | 6.0 | | Treasury and Other - U.S. | 4,448,419 | 3,932,561 | 13.1 | 2,449,656 | 81.6 | | Total deposits | $65,029,493 | $63,052,105 | 3.1 % | $59,999,785 | 8.4 % | [Operating Results](index=3&type=section&id=Operating%20Results) This section reviews East West Bancorp's Q2 2025 operating results, including record revenue, net interest income, noninterest income and expense trends, and tax-related items [Second Quarter Earnings Overview](index=3&type=section&id=Second%20Quarter%20Earnings%20Overview) East West reported record revenue of $703 million in Q2 2025, a 2% increase quarter-over-quarter, primarily driven by record net interest income, with pre-tax, pre-provision income also growing by 2% to $449 million, contributing to a net income of $310 million Q2 2025 Earnings Overview | Metric | Q2 2025 | Q1 2025 | Qtr-o-Qtr Change | | :-------------------------- | :------ | :------ | :--------------- | | Total Revenue | $703 million | $692 million | +$11 million (2%) | | Pre-tax, Pre-provision Income | $449 million | $441 million | +$8 million (2%) | | Net Income | $310 million | $290 million | +$20 million (7%) | | Diluted EPS | $2.24 | $2.08 | +$0.16 (8%) | [Net Interest Income and Net Interest Margin](index=3&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income reached a record $617 million in Q2 2025, increasing by 3% quarter-over-quarter, while the net interest margin remained stable at 3.35% Net Interest Income and Margin | Metric | Q2 2025 | Q1 2025 | Qtr-o-Qtr Change | | :-------------------- | :------ | :------ | :--------------- | | Net Interest Income | $617 million | $600 million | +$17 million (3%) | | Net Interest Margin | 3.35% | 3.35% | Unchanged | | Average Loan Yield | 6.40% | 6.39% | +1 bps | | Average Cost of Funds | 2.63% | 2.64% | -1 bps | | Average Cost of Interest-Bearing Deposits | 3.31% | 3.34% | -3 bps | [Noninterest Income](index=3&type=section&id=Noninterest%20Income) Total noninterest income was $86 million in Q2 2025, with fee income at $81 million, as other income increased significantly while foreign exchange, customer derivative, and wealth management income decreased from prior quarter's record levels Noninterest Income Breakdown (QoQ) | Noninterest Income Category | Q2 2025 | Q1 2025 | Qtr-o-Qtr Change | | :-------------------------------- | :------ | :------ | :--------------- | | Total Noninterest Income | $86 million | $92 million | -$6 million (-6.4%) | | Total Fee Income | $81 million | $88 million | -$7 million (-8.9%) | | Other Income | $5.662 million | $2.819 million | +$2.843 million (100.9%) | | Foreign Exchange Income | $13.715 million | $15.837 million | -$2.122 million (-13.4%) | | Customer Derivative Income | $3.645 million | $5.539 million | -$1.894 million (-34.2%) | | Wealth Management Fees | $10.725 million | $13.679 million | -$2.954 million (-21.6%) | - Other income increased primarily due to greater returns from bank-owned life insurance holdings[11](index=11&type=chunk) - Lending and loan servicing fees were down **$1 million**, reflecting lower syndication activity[11](index=11&type=chunk) [Noninterest Expense](index=3&type=section&id=Noninterest%20Expense) Total noninterest expense was $256 million in Q2 2025, including $26 million for amortization of tax credit and CRA investments, while operating noninterest expense decreased by $7 million quarter-over-quarter Noninterest Expense Breakdown (QoQ) | Noninterest Expense Category | Q2 2025 | Q1 2025 | Qtr-o-Qtr Change | | :----------------------------------- | :------ | :------ | :--------------- | | Total Noninterest Expense | $256 million | $252 million | +$4 million (1.5%) | | Total Operating Noninterest Expense | $230 million | $236 million | -$7 million (-2.8%) | | Compensation and Employee Benefits | $145 million | $146 million | -$2 million (-1.1%) | | Deposit Insurance Premiums and Regulatory Assessments | $9 million | $10 million | -$1 million (-12.1%) | | Other Operating Expense | $37 million | $42 million | -$5 million (-11.6%) | | Amortization of Tax Credit and CRA Investments | $26 million | $16 million | +$10 million (66.7%) | - Compensation and employee benefits decreased primarily due to higher seasonal costs in the first quarter[11](index=11&type=chunk) - Deposit insurance premiums decreased due to a **$1 million** reversal of FDIC Special Assessment-related expense[11](index=11&type=chunk) - The efficiency ratio remained stable at **36.4%** in Q2 2025[11](index=11&type=chunk) [Tax Related Items](index=3&type=section&id=Tax%20Related%20Items) Q2 2025 income tax expense was $92 million, with an effective tax rate of 22.9%, including a one-time $6 million incremental tax expense from the California single sales factor apportionment method (CA SSF), resulting in an adjusted effective tax rate of 21.3% Tax Expense and Effective Tax Rate (QoQ) | Metric | Q2 2025 | Q1 2025 | Qtr-o-Qtr Change | | :-------------------------- | :------ | :------ | :--------------- | | Income Tax Expense | $92 million | $101 million | -$9 million (-8.8%) | | Effective Tax Rate | 22.9% | 25.8% | -292 bps | | Adjusted Income Tax Expense (excl. CA SSF) | $86 million | $101 million | -$15 million | | Adjusted Effective Tax Rate (excl. CA SSF) | 21.3% | 25.8% | -451 bps | - The decrease in adjusted effective tax rate reflects the timing of certain renewable energy tax credit investments that closed in the second quarter[10](index=10&type=chunk) [Condensed Consolidated Statement of Income (QoQ - Table 3)](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Income%20%28QoQ%20-%20Table%203%29) Table 3 presents the condensed consolidated statement of income for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, highlighting quarter-over-quarter and year-over-year changes in key income and expense categories Condensed Consolidated Statement of Income (QoQ) | Metric | June 30, 2025 | March 31, 2025 | Qtr-o-Qtr % Change | | :----------------------------------- | :------------ | :------------- | :----------------- | | Interest and dividend income | $1,058,999 | $1,031,802 | 2.6% | | Interest expense | 441,925 | 431,601 | 2.4 | | Net interest income before provision for credit losses | 617,074 | 600,201 | 2.8 | | Provision for credit losses | 45,000 | 49,000 | (8.2) | | Total noninterest income | 86,178 | 92,102 | (6.4)% | | Total noninterest expense | 256,020 | 252,148 | 1.5 | | Income before income taxes | 402,232 | 391,155 | 2.8 | | Net income | $310,253 | $290,270 | 6.9% | | Diluted EPS | $2.24 | $2.08 | 7.3 | [Condensed Consolidated Statement of Income (YoY - Table 4)](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Income%20%28YoY%20-%20Table%204%29) Table 4 provides the condensed consolidated statement of income for the six months ended June 30, 2025, compared to June 30, 2024, detailing year-over-year changes in revenue, expenses, and net income Condensed Consolidated Statement of Income (YoY) | Metric | June 30, 2025 (Six Months) | June 30, 2024 (Six Months) | Yr-o-Yr % Change | | :----------------------------------- | :------------------------- | :------------------------- | :----------------- | | Interest and dividend income | $2,090,801 | $2,058,031 | 1.6% | | Interest expense | 873,526 | 939,663 | (7.0) | | Net interest income before provision for credit losses | 1,217,275 | 1,118,368 | 8.8 | | Provision for credit losses | 94,000 | 62,000 | 51.6 | | Total noninterest income | 178,280 | 162,658 | 9.6% | | Total noninterest expense | 508,168 | 482,306 | 5.4 | | Income before income taxes | 793,387 | 736,720 | 7.7 | | Net income | $600,523 | $573,305 | 4.7% | | Diluted EPS | $4.32 | $4.09 | 5.5 | [Asset Quality](index=5&type=section&id=Asset%20Quality) This section assesses East West Bancorp's asset quality, focusing on credit quality trends, allowance for loan losses, and off-balance sheet credit exposures [Credit Quality Overview](index=5&type=section&id=Credit%20Quality%20Overview) East West's loan portfolio maintained resilient credit quality as of June 30, 2025, with criticized loans and nonperforming assets both decreasing quarter-over-quarter, while the allowance for loan losses increased due to changes in the economic outlook Credit Quality Metrics (QoQ) | Metric | June 30, 2025 | March 31, 2025 | Qtr-o-Qtr Change | | :----------------------------------- | :------------ | :------------- | :--------------- | | Criticized Loans Ratio (of loans HFI) | 2.15% | 2.29% | -14 bps | | Criticized Loans | $1.2 billion | $1.245 billion | -$62 million | | Nonperforming Assets | $172 million | $182 million | -$11 million | | Nonperforming Assets Ratio (of total assets) | 0.22% | 0.24% | -2 bps | | Net Charge-offs (annualized of average loans HFI) | 0.11% | 0.12% | -0.01% | | Allowance for Loan Losses | $760 million | $735 million | +$25 million | | Allowance for Loan Losses (of loans HFI) | 1.38% | 1.35% | +3 bps | | Provision for Credit Losses | $45 million | $49 million | -$4 million | - The decrease in criticized loans primarily reflects decreases related to C&I, multifamily, and residential mortgage loans[16](index=16&type=chunk) - Special mention loans ratio decreased **10 basis points** to **0.81%** of loans HFI, and classified loans ratio decreased **4 basis points** to **1.34%**[16](index=16&type=chunk) [Allowance for Loan Losses & Off-Balance Sheet Credit Exposures (Table 10)](index=16&type=section&id=Allowance%20for%20Loan%20Losses%20%26%20Off-Balance%20Sheet%20Credit%20Exposures%20%28Table%2010%29) Table 10 details the changes in the allowance for loan losses and allowance for unfunded credit commitments by loan category for the three and six months ended June 30, 2025, March 31, 2025, and June 30, 2024, showing provisions, charge-offs, and recoveries Allowance for Loan Losses Activity (Q2 2025) | Loan Category | ALLL, March 31, 2025 | Provision for Credit Losses | Net (Charge-offs) Recoveries | ALLL, June 30, 2025 | | :-------------------- | :------------------- | :-------------------------- | :--------------------------- | :------------------ | | C&I | $421,288 | $27,595 | ($6,647) | $442,291 | | CRE | $212,899 | $8,007 | ($8,288) | $212,618 | | Multifamily Residential | $32,324 | ($3,274) | $23 | $29,073 | | Construction and Land | $15,199 | $2,654 | $3 | $17,856 | | Single Family Residential | $46,929 | $5,064 | $4 | $51,997 | | HELOCs | $4,879 | $369 | $8 | $5,256 | | Other Consumer | $1,338 | ($259) | $246 | $1,325 | | Total | $734,856 | $40,156 | ($14,651) | $760,416 | Allowance for Unfunded Credit Commitments (QoQ) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------------------ | :------------ | :------------- | :------------ | | Allowance for unfunded credit commitments, end of period | $45,307 | $40,464 | $38,783 | | Provision for credit losses on unfunded credit commitments | $4,844 | $938 | $238 | [Criticized Loans, Nonperforming Assets, Credit Quality Ratios (Table 11)](index=18&type=section&id=Criticized%20Loans%2C%20Nonperforming%20Assets%2C%20Credit%20Quality%20Ratios%20%28Table%2011%29) Table 11 provides a detailed breakdown of criticized loans, nonperforming assets, and various credit quality ratios, along with the composition of the allowance for loan losses by portfolio, as of June 30, 2025, March 31, 2025, and June 30, 2024 Criticized Loans and Nonperforming Assets | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------- | :------------ | :------------- | :------------ | | Special mention loans | $446,665 | $494,444 | $435,679 | | Classified loans | 736,228 | 750,570 | 644,564 | | Total criticized loans | $1,182,893 | $1,245,014 | $1,080,243 | | Total nonperforming assets | $171,678 | $182,203 | $196,282 | Credit Quality Ratios | Ratio | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------------------------------- | :------------ | :------------- | :------------ | | Annualized quarterly net charge-offs to average loans HFI | 0.11 % | 0.12 % | 0.18 % | | Criticized loans to loans HFI | 2.15 % | 2.29 % | 2.05 % | | Nonperforming assets to total assets | 0.22 % | 0.24 % | 0.27 % | | Allowance for loan losses to loans HFI | 1.38 % | 1.35 % | 1.30 % | Composition of ALLL by Portfolio (June 30, 2025) | Loan Category | ALLL | ALLL/Loans HFI | | :-------------------------- | :------- | :------------- | | C&I | $442,291 | 2.48 % | | Total CRE | $259,547 | 1.26 | | Residential mortgage & consumer | $58,578 | 0.36 | | Total loans | $760,416 | 1.38 % | [Capital Actions & Shareholder Returns](index=5&type=section&id=Capital%20Actions%20%26%20Shareholder%20Returns) This section outlines East West Bancorp's capital management strategies, including dividend declarations and share repurchase activities, demonstrating commitment to shareholder returns [Dividend Payout and Capital Actions](index=5&type=section&id=Dividend%20Payout%20and%20Capital%20Actions) East West's Board of Directors declared a third-quarter 2025 common stock cash dividend of $0.60 per share, and the company repurchased approximately 26 thousand shares for $2 million during Q2 2025, with $241 million remaining under its share repurchase authorization - Third quarter 2025 common stock cash dividend declared at **$0.60 per share**, payable on August 15, 2025, to shareholders of record as of August 4, 2025[14](index=14&type=chunk) - East West repurchased approximately **26 thousand shares** of common stock for **$2 million** during Q2 2025[14](index=14&type=chunk) - **$241 million** of the share repurchase authorization remains available[14](index=14&type=chunk) [Selected Financial Data & Ratios](index=11&type=section&id=Selected%20Financial%20Data%20%26%20Ratios) This section presents selected financial data and ratios, including average balances, yields, rates, and key performance indicators, for comprehensive financial analysis [Selected Average Balances (Table 5)](index=11&type=section&id=Selected%20Average%20Balances%20%28Table%205%29) Table 5 presents selected average balances for loans, interest-earning assets, total assets, and deposits for the three and six months ended June 30, 2025, and comparative periods, illustrating growth trends in average portfolio sizes Selected Average Balances (QoQ & YoY) | Metric | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | Qtr-o-Qtr % Change | June 30, 2024 (3 Months) | Yr-o-Yr % Change | | :-------------------------- | :----------------------- | :------------------------ | :----------------- | :----------------------- | :----------------- | | Total loans | $54,281,432 | $53,337,711 | 1.8% | $51,918,788 | 4.6% | | Interest-earning assets | $73,903,125 | $72,690,586 | 1.7% | $68,050,050 | 8.6% | | Total assets | $76,862,028 | $75,624,952 | 1.6% | $71,189,200 | 8.0% | | Total deposits | $63,677,832 | $62,637,582 | 1.7% | $58,680,799 | 8.5% | Selected Average Balances (Six Months YoY) | Metric | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | Yr-o-Yr % Change | | :-------------------------- | :----------------------- | :----------------------- | :----------------- | | Total loans | $53,812,179 | $51,921,814 | 3.6% | | Interest-earning assets | $73,314,428 | $68,086,048 | 7.7% | | Total assets | $76,246,907 | $71,433,798 | 6.7% | | Total deposits | $63,160,581 | $58,061,601 | 8.8% | [Quarter-to-Date Average Balances, Yields and Rates (Table 6 & 7)](index=12&type=section&id=Quarter-to-Date%20Average%20Balances%2C%20Yields%20and%20Rates%20%28Table%206%20%26%207%29) Tables 6 and 7 provide detailed quarter-to-date average balances, interest income/expense, and average yields/rates for interest-earning assets and interest-bearing liabilities, comparing Q2 2025 with Q1 2025 and Q2 2024, respectively, illustrating the dynamics of net interest income and net interest margin Average Yields and Rates (QoQ - Q2 2025 vs Q1 2025) | Metric | June 30, 2025 | March 31, 2025 | | :----------------------------------- | :------------ | :------------- | | Average interest-earning asset yield | 5.75 % | 5.76 % | | Average loan yield | 6.40 % | 6.39 % | | Average cost of interest-bearing deposits | 3.31 % | 3.34 % | | Average cost of funds | 3.39 % | 3.43 % | | Net interest margin | 3.35 % | 3.35 % | Average Yields and Rates (YoY - Q2 2025 vs Q2 2024) | Metric | June 30, 2025 | June 30, 2024 | | :----------------------------------- | :------------ | :------------ | | Average interest-earning asset yield | 5.75 % | 6.11 % | | Average loan yield | 6.40 % | 6.73 % | | Average cost of interest-bearing deposits | 3.31 % | 3.94 % | | Average cost of funds | 3.39 % | 4.07 % | | Net interest margin | 3.35 % | 3.27 % | [Year-to-Date Average Balances, Yields and Rates (Table 8)](index=14&type=section&id=Year-to-Date%20Average%20Balances%2C%20Yields%20and%20Rates%20%28Table%208%29) Table 8 presents year-to-date average balances, interest income/expense, and average yields/rates for interest-earning assets and interest-bearing liabilities for the six months ended June 30, 2025, compared to June 30, 2024, providing a broader view of performance trends Year-to-Date Average Yields and Rates (YoY) | Metric | June 30, 2025 (Six Months) | June 30, 2024 (Six Months) | | :----------------------------------- | :------------------------- | :------------------------- | | Average interest-earning asset yield | 5.75 % | 6.08 % | | Average loan yield | 6.39 % | 6.72 % | | Average cost of interest-bearing deposits | 3.33 % | 3.89 % | | Average cost of funds | 3.41 % | 4.00 % | | Net interest margin | 3.35 % | 3.30 % | [Selected Ratios (Table 9)](index=15&type=section&id=Selected%20Ratios%20%28Table%209%29) Table 9 compiles selected financial ratios, including profitability, interest rate, efficiency, and credit quality ratios, for the three and six months ended June 30, 2025, with comparative periods, offering a comprehensive view of the company's financial health and operational efficiency Selected Ratios (QoQ - Q2 2025 vs Q1 2025) | Ratio | June 30, 2025 | March 31, 2025 | Qtr-o-Qtr Change | | :----------------------------------- | :------------ | :------------- | :--------------- | | Return on average assets | 1.62 % | 1.56 % | 6 bps | | Return on average common equity | 15.42 % | 14.96 % | 46 | | Net interest margin | 3.35 % | 3.35 % | — | | Efficiency ratio | 36.41 % | 36.42 % | (1) | | Effective tax rate | 22.87 % | 25.79 % | (292) | | Loan-to-deposit ratio | 84.54 % | 86.04 % | (150) | Selected Ratios (YoY - Q2 2025 vs Q2 2024) | Ratio | June 30, 2025 | June 30, 2024 | Yr-o-Yr Change | | :----------------------------------- | :------------ | :------------ | :--------------- | | Return on average assets | 1.62 % | 1.63 % | (1) bps | | Return on average common equity | 15.42 % | 16.36 % | (94) | | Net interest margin | 3.35 % | 3.27 % | 8 | | Efficiency ratio | 36.41 % | 37.01 % | (60) | | Effective tax rate | 22.87 % | 20.92 % | 195 | | Loan-to-deposit ratio | 84.54 % | 87.98 % | (344) | [Non-GAAP Reconciliations](index=19&type=section&id=Non-GAAP%20Reconciliations) This section provides reconciliations of GAAP to non-GAAP financial measures, including adjusted effective tax rate, net income, fully taxable equivalent (FTE) metrics, and tangible book value [Adjusted Effective Tax Rate and Adjusted Net Income (Table 12)](index=19&type=section&id=Adjusted%20Effective%20Tax%20Rate%20and%20Adjusted%20Net%20Income%20%28Table%2012%29) Table 12 reconciles GAAP effective tax rate and net income to adjusted non-GAAP measures, primarily by excluding the one-time impact of the California single sales factor apportionment method (CA SSF) and certain FDIC special assessment/DC Solar adjustments, to provide better comparability to prior periods Effective Tax Rate Reconciliation (QoQ & YoY) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------- | :------------ | | Effective tax rate | 22.87 % | 25.79 % | 20.92 % | | Adjusted effective tax rate | 21.28 % | 25.79 % | 20.92 % | Adjusted Net Income Reconciliation (QoQ & YoY) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------- | :------------ | | Net income | $310,253 | $290,270 | $288,230 | | Adjusted net income | $316,046 | $290,855 | $287,338 | | Adjusted return on average assets | 1.65 % | 1.56 % | 1.62 % | | Adjusted return on average common equity | 15.71 % | 14.99 % | 16.31 % | - The CA SSF adoption on June 30, 2025, resulted in **$6 million** of additional income tax expense in Q2 2025[58](index=58&type=chunk)[62](index=62&type=chunk) [FTE and Pre-tax, Pre-provision Income (Table 13)](index=20&type=section&id=FTE%20and%20Pre-tax%2C%20Pre-provision%20Income%20%28Table%2013%29) Table 13 reconciles GAAP net interest income and total revenue to their fully taxable equivalent (FTE) counterparts, and calculates pre-tax, pre-provision income and efficiency ratios (GAAP and FTE), providing a standardized view of core operating performance FTE and Pre-tax, Pre-provision Income (QoQ & YoY) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :----------------------------------- | :------------ | :------------- | :------------ | | Net interest income before provision for credit losses | $617,074 | $600,201 | $553,229 | | FTE net interest income before provision for credit losses | $618,677 | $601,347 | $554,733 | | Total revenue | $703,252 | $692,303 | $637,400 | | Total revenue (FTE) | $704,855 | $693,449 | $638,904 | | Pre-tax, pre-provision income | $448,835 | $441,301 | $402,972 | | Efficiency ratio (FTE) | 36.32 % | 36.36 % | 36.93 % | Adjusted Diluted EPS Reconciliation (QoQ & YoY) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------- | :------------ | | Diluted EPS | $2.24 | $2.08 | $2.06 | | Adjusted diluted EPS | $2.28 | $2.09 | $2.06 | [Tangible Book Value and TCE Ratio (Table 14)](index=21&type=section&id=Tangible%20Book%20Value%20and%20TCE%20Ratio%20%28Table%2014%29) Table 14 reconciles GAAP stockholders' equity and total assets to tangible book value and tangible assets, respectively, by adjusting for goodwill and mortgage servicing assets, and presents return on average tangible common equity (TCE) and adjusted return on average TCE, which are key non-GAAP measures for banking industry analysis Tangible Book Value and TCE Ratio (QoQ & YoY) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :----------------------------------- | :------------ | :------------- | :------------ | | Stockholders' equity | $8,201,767 | $7,929,465 | $7,215,114 | | Tangible book value | $7,731,442 | $7,458,828 | $6,743,514 | | Book value per share | $59.51 | $57.54 | $52.06 | | Tangible book value per share | $56.10 | $54.13 | $48.65 | | Total assets | $78,158,067 | $76,165,013 | $72,468,272 | | Tangible assets | $77,687,742 | $75,694,376 | $71,996,672 | | TCE ratio | 9.95 % | 9.85 % | 9.37 % | Return on Average TCE (QoQ & YoY) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------- | :------------ | | Return on average TCE | 16.39 % | 15.92 % | 17.54 % | | Adjusted return on average TCE | 16.69 % | 15.96 % | 17.48 % | [Company Information](index=5&type=section&id=Company%20Information) This section provides essential company information, including conference call details, an overview of East West Bancorp, and important disclosures regarding forward-looking statements [Conference Call Information](index=5&type=section&id=Conference%20Call%20Information) East West Bancorp hosted a conference call on July 22, 2025, to discuss its second quarter 2025 earnings, with details for public and investment community access, including dial-in numbers and website resources, provided - Conference call held on Tuesday, July 22, 2025, at **2:00 p.m. PT/5:00 p.m. ET**[15](index=15&type=chunk) - Dial-in information: U.S. - **(877) 506-6399**; Canada – **(855) 669-9657**; International – **(412) 902-6699**[17](index=17&type=chunk) - Presentation, live broadcast, and replay access available on the Investor Relations page of **www.eastwestbank.com/investors**[17](index=17&type=chunk) [About East West](index=6&type=section&id=About%20East%20West) East West Bancorp, Inc. (Nasdaq: EWBC) is the parent company of East West Bank, the largest independent bank headquartered in Southern California, with $78.2 billion in total assets as of June 30, 2025, operating over 110 locations across the United States and Asia - East West Bancorp, Inc. (Nasdaq: EWBC) had total assets of **$78.2 billion** as of June 30, 2025[18](index=18&type=chunk) - Its wholly-owned subsidiary, East West Bank, is the largest independent bank headquartered in Southern California[18](index=18&type=chunk) - The bank operates over **110 locations** in the United States (California, Georgia, Illinois, Massachusetts, Nevada, New York, Texas, Washington) and Asia[18](index=18&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) The report includes forward-looking statements, which are based on current assumptions and projections and are subject to known and unknown risks and uncertainties, cautioning readers that actual results may differ materially due to various factors - Forward-looking statements are based on current assumptions, beliefs, estimates, expectations, and projections, many of which are inherently uncertain and beyond the Company's control[19](index=19&type=chunk) - Factors that might cause future results to differ materially include changes in economic and political conditions, regulatory environment, real estate markets, consumer behavior, competition, operational/security systems, credit quality, and capital requirements[20](index=20&type=chunk) - The Company does not undertake any obligation to update or revise any forward-looking statements except as required by law[21](index=21&type=chunk)

Core Viewpoint - East West Bancorp (EWBC) is expected to report quarterly earnings of $2.23 per share, reflecting a 7.7% increase year-over-year, with revenues projected at $699.03 million, a 9.6% increase compared to the previous year [1]. Earnings Projections - Over the last 30 days, the consensus EPS estimate has been revised upward by 0.6%, indicating analysts' reassessment of their initial forecasts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Key Metrics Analysis - Analysts predict a 'Net interest margin' of 3.3%, unchanged from the previous year [5]. - The 'Efficiency ratio' is estimated at 36.9%, slightly improved from 37.1% year-over-year [5]. - The 'Average Balance - Total interest-earning assets' is projected to be $73.10 billion, up from $68.05 billion a year ago [5]. Capital Ratios - The 'Tier 1 capital ratio' is expected to reach 14.6%, an increase from 13.7% in the same quarter last year [6]. - The 'Total capital ratio' is forecasted at 15.7%, up from 15.1% year-over-year [6]. - The 'Adjusted efficiency ratio' is estimated at 34.9%, compared to 34.3% in the same quarter last year [6]. Loan and Asset Projections - The 'Leverage ratio' is expected to be 10.8%, an increase from 10.4% year-over-year [7]. - 'Total nonaccrual loans' are projected at $161.04 million, down from $165.88 million a year ago [7]. - 'Total nonperforming assets' are estimated to be $199.69 million, slightly up from $196.28 million year-over-year [7]. Income Forecasts - 'Net Interest Income' is projected to be $609.92 million, compared to $553.23 million in the same quarter last year [8]. - 'Total Noninterest Income' is expected to reach $90.39 million, up from $84.67 million year-over-year [8]. - 'Commercial and consumer deposit-related fees' are forecasted at $27.44 million, compared to $25.65 million in the same quarter last year [9]. Stock Performance - Shares of East West Bancorp have increased by 14.6% over the past month, outperforming the Zacks S&P 500 composite, which rose by 5.4% [9].

Core Viewpoint - East West Bancorp, Inc. (EWBC) is positioned favorably for an upcoming earnings report, with positive trends indicated by recent earnings estimate revisions [1][2]. Earnings Estimate Revisions - Analysts have recently raised their earnings estimates for EWBC, which is typically a precursor to an earnings beat [2]. - The Most Accurate Estimate for the current quarter stands at $2.24 per share, slightly above the Zacks Consensus Estimate of $2.23 per share, indicating a positive adjustment in expectations [3]. Earnings ESP and Historical Performance - EWBC has a Zacks Earnings ESP of +0.47%, suggesting a favorable outlook heading into earnings season [3]. - Historical data shows that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of delivering positive surprises and have averaged over 28% in annual returns [4]. Investment Consideration - Given the positive earnings estimate revisions and the current Zacks Rank of 3 (Hold), EWBC may be a stock worth considering for investors ahead of the earnings report [5].

Group 1 - East West Bancorp, Inc (NASDAQ: EWBC) is highlighted as a top stock due to three unexplored reasons [1] - The fundamentals of East West Bancorp are described as very good, indicating strong financial health [1] - The article expresses an interest in discussing obscure stocks alongside well-known companies like HSBC and Watches of Switzerland [1]

Core Viewpoint - East West Bancorp (EWBC) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [4][6]. - For East West Bancorp, the recent increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to upward pressure on its stock price [5][8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of performance, where Zacks Rank 1 stocks have generated an average annual return of +25% since 1988 [7][9]. - The upgrade of East West Bancorp to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - East West Bancorp is projected to earn $8.82 per share for the fiscal year ending December 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 2% over the past three months [8].

Group 1 - East West Bancorp, Inc. (EWBC) has reached a key level of support, indicated by a "golden cross" where the 50-day simple moving average has crossed above the 200-day simple moving average [1][2] - A golden cross is a bullish technical chart pattern that suggests a potential breakout, typically involving a short-term moving average crossing above a longer-term moving average [2][3] - EWBC has experienced a 13.6% increase over the last four weeks, indicating strong upward momentum [4] Group 2 - The company has a positive earnings outlook for the current quarter, with two upward revisions in earnings estimates over the past 60 days [4] - The Zacks Consensus Estimate for EWBC has also increased, reinforcing the bullish sentiment around the stock [4][5] - Investors are encouraged to monitor EWBC for potential gains due to the combination of technical indicators and positive earnings revisions [5]

Core Insights - East West Bancorp (EWBC) has demonstrated a strong track record of wealth creation, particularly for long-term investors [1] Company Performance - An investment in East West Bancorp made at the start of the century would have yielded significant returns, indicating the bank's ability to generate high-quality earnings over time [1]

Core Insights - East West Bancorp, Inc. (EWBC) has revised its net interest income (NII) and revenue guidance for 2025, expecting NII growth at or above the higher end of the previously stated 4-6% range and revenue growth to exceed 6% from an earlier projection of 5-7% [1][3][8] Financial Performance - The company anticipates continued positive impacts on NII due to deposit repricing conducted in the first quarter, which has stabilized the mix of non-interest-bearing and interest-bearing products [2] - Total revenues are now expected to rise more than 6% this year, with a focus on robust fee growth in non-interest income through treasury deposit services and foreign exchange solutions [3][8] Balance Sheet and Growth - EWBC has experienced modest increases in deposits and loans this year, maintaining its loan growth guidance at 4-6% for 2025 [3] - The outlook for total operating non-interest expenses remains unchanged, with an expected increase of 7-9% due to higher headcount and technological expenses, partially offset by lower deposit account expenses [4] Client Management and Strategy - Clients of East West Bancorp have effectively managed tariff impacts over the past nine years by diversifying supply chains and relocating production, demonstrating resilience amid changing trade dynamics [5][8] Shareholder Value - The company has announced an additional share repurchase plan of $300 million, with $244 million of authorization available for repurchase as of March 31, 2025 [6] Stock Performance - Over the past year, EWBC shares have gained 34.2%, outperforming the industry's growth of 24.9% [7]

Summary of East West Bank Conference Call Company Overview - **Company**: East West Bank - **Industry**: Banking and Financial Services Key Points and Arguments Client Sentiment and Tariff Impact - Clients have been proactive in dealing with tariffs for nearly a decade, indicating a consistent approach to trade dynamics [4][5] - Activity levels among clients have stabilized, contrary to expectations of a decline, providing a solid base for the second quarter [5][6] - Clients are making decisions without waiting for clarity on future tariff changes, demonstrating a readiness to adapt [6][7] Supply Chain Adjustments - Many clients have diversified their supply chains, moving production to locations such as Mexico and the U.S. [10][12] - Clients are shipping inventory to mitigate risks associated with tariffs, indicating a strategic approach to inventory management [11][12] Economic Environment - The broader U.S. consumer demand remains strong, positively influencing client performance and bank operations [13][14] - Employment dynamics in Southern California are positive, contributing to a stable economic output [13] Financial Performance - Deposits and loans have increased modestly quarter over quarter, aligning with the bank's guidance [14] - The bank anticipates NII (Net Interest Income) growth above the higher end of previous guidance due to positive trends in loan and deposit growth [20][21] Loan Growth and Asset Sensitivity - Loan growth is projected at 4% to 6%, with current trends suggesting a potential for higher growth [21][24] - The bank is adjusting its asset sensitivity, moving towards a more balanced approach in response to market conditions [31][32] Commercial and Industrial (C&I) Growth - Growth is observed in sectors such as entertainment and alternative energy, with ongoing investments in these areas [34][35] - Trade finance activity has stabilized, contributing positively to the bank's balance sheet [36] Private Credit and NDFI Loans - The bank views its relationship with private credit firms as more of a partnership rather than competition, focusing on lower leverage opportunities [37][40] - NDFI (Non-Depository Financial Institution) loans are growing, particularly in sectors like solar energy, with a low default risk profile [42][44] Residential Mortgage and Commercial Real Estate (CRE) - Residential mortgage growth remains stable, with consistent new volume added to the balance sheet [46] - The bank is strategically managing its CRE exposure to reduce concentration, focusing on existing profitable relationships [47][48] Efficiency and Growth Strategy - East West Bank maintains a better efficiency ratio than peers due to a straightforward business model focused on core markets [52][53] - The bank is expanding into new markets such as Dallas, Houston, and New York, seeking to capitalize on growth opportunities [55][61] Fee Growth Opportunities - The bank is investing in core treasury deposit services and expanding payment processing capabilities, which are expected to drive fee growth [66][70] Credit Quality and Capital Management - Credit quality remains stable, with no significant deterioration observed despite macroeconomic uncertainties [71][72] - The bank's CET1 ratio stands at 14.3%, indicating a strong capital position, with a cautious approach to buybacks in the current environment [75][76] Additional Important Insights - The bank's focus on tailored solutions for core customers allows for targeted growth strategies without overextending resources [52][53] - The management emphasizes the importance of finding the right talent to drive expansion in new markets [56][58] - The bank remains vigilant and opportunistic regarding capital return strategies, adapting to market conditions as necessary [76][77]