UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 95-4703316 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 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 number 0 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 EAST WEST BANCORP, INC. ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to For the quarterly period ended June 30, 2023 Commission file number 000-24939 or Yes ☒ No ☐ 95-4703316 Securities registered pursuant to Section 12(b) of the Act: (Exact name of registrant as ...

East West Bancorp, Inc. (NASDAQ:EWBC) Q2 2023 Results Conference Call July 20, 2023 11:30 AM ET Company Participants Diana Trinh - Vice President and Investor Relations Officer Dominic Ng - Chairman and Chief Executive Office Irene Oh - Chief Financial Officer Conference Call Participants Ebrahim Poonawala - Bank of America Jared Shaw - Wells Fargo Securities Dave Rochester - Compass Point Manan Gosalia - Morgan Stanley Brandon King - Truist Matthew Clark - Piper Sandler Gary Tenner - DA Davidson Chris McGr ...

[Forward-Looking Statements](index=3&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section contains forward-looking statements intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, based on current assumptions and subject to risks and uncertainties - This section contains forward-looking statements intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, based on current assumptions and subject to risks and uncertainties[10](index=10&type=chunk) - Key factors that could cause future results to differ materially include changes in global economy, bank failures, regulatory changes, interest rates, and geopolitical events[11](index=11&type=chunk)[13](index=13&type=chunk) [PART I — FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Item 1. Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents unaudited consolidated financial statements for Q1 2023, reflecting increased cash from borrowings and higher net income due to net interest income growth [Consolidated Balance Sheet](index=5&type=section&id=Consolidated%20Balance%20Sheet) Total assets increased to **$67.2 billion** by March 31, 2023, driven by a **$2.45 billion** rise in cash from **$4.5 billion** in new short-term borrowings, while deposits slightly decreased Consolidated Balance Sheet Highlights (Unaudited) | Metric | March 31, 2023 ($ in thousands) | December 31, 2022 ($ in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$67,244,898** | **$64,112,150** | | Cash and cash equivalents | $5,934,194 | $3,481,784 | | Loans held-for-investment, net | $48,298,155 | $47,606,785 | | **Total Liabilities** | **$60,935,567** | **$58,127,538** | | Total deposits | $54,737,402 | $55,967,849 | | Short-term borrowings | $4,500,000 | $0 | | **Total Stockholders' Equity** | **$6,309,331** | **$5,984,612** | [Consolidated Statement of Income](index=6&type=section&id=Consolidated%20Statement%20of%20Income) Net income for Q1 2023 increased 36% to **$322.4 million**, driven by a 44% rise in net interest income to **$599.9 million**, with diluted EPS at **$2.27** Consolidated Statement of Income Highlights (Unaudited) | Metric | Three Months Ended March 31, 2023 ($ in thousands) | Three Months Ended March 31, 2022 ($ in thousands) | | :--- | :--- | :--- | | Net interest income | $599,861 | $415,613 | | Provision for credit losses | $20,000 | $8,000 | | Noninterest income | $59,978 | $79,743 | | Noninterest expense | $218,447 | $189,450 | | **Net Income** | **$322,439** | **$237,652** | | **Diluted EPS** | **$2.27** | **$1.66** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, financial instruments, and segments, highlighting ASU 2022-02 adoption, unrealized securities losses, loan portfolio growth, and **$4.5 billion** in new BTFP borrowings - The company adopted ASU 2022-02 on January 1, 2023, eliminating accounting guidance for Troubled Debt Restructurings (TDRs), resulting in a **$6.0 million** increase to the allowance for loan losses and a corresponding **$4.3 million** after-tax decrease to opening retained earnings[35](index=35&type=chunk) - As of March 31, 2023, the Available-for-Sale (AFS) debt securities portfolio had gross unrealized losses of **$771.9 million**, primarily attributed to interest rate movements rather than credit impairment, with no allowance for credit losses recorded[75](index=75&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) - Total loans held-for-investment grew to **$48.9 billion** as of March 31, 2023, with the allowance for loan losses at **$619.9 million**, up from **$595.6 million** at year-end 2022, driven by loan growth and changes in economic outlook[120](index=120&type=chunk)[159](index=159&type=chunk) - In March 2023, the company borrowed **$4.5 billion** from the Federal Reserve's Bank Term Funding Program (BTFP) with a maturity date of March 19, 2024, and an interest rate of 4.37%, enhancing liquidity[174](index=174&type=chunk)[176](index=176&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=57&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial performance, noting a 36% net income increase to **$322.4 million** driven by net interest income growth and a **$4.5 billion** BTFP borrowing to enhance liquidity [Results of Operations](index=61&type=section&id=Results%20of%20Operations) Q1 2023 net income rose 36% to **$322.4 million**, driven by a 44% surge in net interest income to **$599.9 million**, despite a **$10.0 million** AFS debt security write-off Key Performance Metrics | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net Income | $322.4M | $237.7M | | Diluted EPS | $2.27 | $1.66 | | ROA | 2.01% | 1.56% | | ROE | 21.15% | 16.50% | | Net Interest Margin | 3.96% | 2.87% | | Efficiency Ratio | 33.11% | 38.25% | - The increase in net interest income was primarily driven by a **252 basis point** increase in the yield on average interest-earning assets, which outpaced the **150 basis point** increase in the average cost of deposits[221](index=221&type=chunk)[223](index=223&type=chunk)[227](index=227&type=chunk) [Balance Sheet Analysis](index=69&type=section&id=Balance%20Sheet%20Analysis) Total assets grew to **$67.2 billion** due to BTFP borrowings, loans increased to **$48.9 billion**, and deposits decreased to **$54.7 billion**, improving the uninsured deposit ratio to **44%** - Total loans held-for-investment reached **$48.9 billion**, a 1% increase from year-end 2022, driven by growth in residential mortgage and CRE loans[269](index=269&type=chunk) - Total deposits decreased by **$1.2 billion** (2%) from year-end 2022, with noninterest-bearing demand deposits falling by **$2.7 billion** and money market deposits falling by **$3.0 billion**, partially offset by a **$2.8 billion** increase in time deposits[298](index=298&type=chunk)[299](index=299&type=chunk) - The company's domestic uninsured deposit ratio improved to **44%** as of March 31, 2023, compared to **50%** as of December 31, 2022[300](index=300&type=chunk) [Regulatory Capital and Ratios](index=79&type=section&id=Regulatory%20Capital%20and%20Ratios) The company and Bank maintained strong capital positions, exceeding all 'well-capitalized' requirements, with a CET1 ratio of **13.1%** and Total capital ratio of **14.5%** Company Capital Ratios | Ratio | March 31, 2023 | Minimum for Well-Capitalized* | | :--- | :--- | :--- | | Common Equity Tier 1 | 13.1% | 6.5% (Bank) | | Tier 1 Capital | 13.1% | 8.0% (Bank) | | Total Capital | 14.5% | 10.0% (Bank) | | Tier 1 Leverage | 10.0% | 5.0% (Bank) | *Well-capitalized requirements shown are for the Bank subsidiary [Risk Management](index=80&type=section&id=Risk%20Management) The company's ERM framework maintains strong credit quality with nonperforming assets at **0.14%**, increased liquidity to **$30.7 billion** via BTFP, and remains asset sensitive to interest rates - Nonperforming assets decreased by 6% to **$93.4 million**, representing **0.14%** of total assets as of March 31, 2023[319](index=319&type=chunk) - Total available liquidity sources, including cash and borrowing capacity, increased to **$30.7 billion** as of March 31, 2023, from **$26.5 billion** at year-end 2022, bolstered by borrowings from the BTFP[336](index=336&type=chunk) - The company's net interest income is asset sensitive, with a simulation showing a **4.8%** increase over 12 months in a **+100 bps** instantaneous rate shock scenario[349](index=349&type=chunk)[350](index=350&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=93&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section cross-references detailed market risk disclosures found in Item 2 (MD&A – Risk Management) and Note 6 (Derivatives) of the financial statements [Item 4. Controls and Procedures](index=93&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period[375](index=375&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, the company's internal controls[377](index=377&type=chunk) [PART II — OTHER INFORMATION](index=94&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=94&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions in the ordinary course of business, none of which are expected to have a material adverse effect on its financial condition - The company is a party to various legal actions arising in the ordinary course of business but does not expect them to have a material adverse effect on its financial condition[185](index=185&type=chunk)[186](index=186&type=chunk)[380](index=380&type=chunk) [Item 1A. Risk Factors](index=94&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors from the 2022 Form 10-K, focusing on risks from recent bank failures, including increased FDIC premiums, regulatory changes, and heightened liquidity risk, leading to **$4.5 billion** in BTFP borrowings - The failures of Silicon Valley Bank, Signature Bank, and First Republic Bank have created industry disruption and could lead to increased FDIC premiums or special assessments[381](index=381&type=chunk)[382](index=382&type=chunk) - The company faces enhanced liquidity risk due to the proportion of its deposits that exceed FDIC insurance limits, which could lead to significant withdrawals in a short period[383](index=383&type=chunk) - To manage liquidity risk in the current environment, the company borrowed **$4.5 billion** from the Federal Reserve's Bank Term Funding Program (BTFP) during the first quarter of 2023[383](index=383&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=95&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or share repurchase activities during Q1 2023 - There were no unregistered sales of equity securities or share repurchases during Q1 2023[385](index=385&type=chunk)

Financial Data and Key Metrics Changes - For Q1 2023, the company reported an adjusted return on average assets of 2.05% and a return on average tangible common equity of 23% [4] - Net income for Q1 2023 was $322 million, with diluted earnings per share of $2.27, adjusted earnings per share increased by 40% year-over-year [86] - The common equity Tier 1 ratio was 13.06%, up 38 basis points quarter-over-quarter, and the total capital ratio was 14.5%, up 50 basis points [6] Business Line Data and Key Metrics Changes - Total loans reached $48.9 billion, an increase of $697 million or 1% from the previous quarter [76] - Commercial real estate loans totaled $19.4 billion, up 2% from the previous quarter and up 14% year-over-year [89] - Average loan yield for Q1 2023 was 6.14%, an increase of 55 basis points quarter-over-quarter [34] Market Data and Key Metrics Changes - Average deposits were $54.7 billion, a decrease of $1.2 billion or 2% from the previous quarter [87] - The domestic uninsured deposit ratio improved to 41% as of April 19, 2023 [83] - The average cost of deposits for Q1 was 160 basis points, up 54 basis points from the previous quarter [27] Company Strategy and Development Direction - The company aims for loan growth in the range of 5% to 7% for 2023, with net interest income growth expected to be between 16% to 18% [38] - The management emphasized a conservative approach to liquidity management, maintaining high capital ratios and a diversified loan portfolio [46] - The company is focused on maintaining a granular deposit base and avoiding overconcentration in any particular sector or client [40][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong asset quality and proactive measures to monitor the loan portfolio [20] - The current economic environment is expected to be challenging, but the company is well-positioned to navigate potential stress in the commercial real estate market [60][66] - The effective tax rate for 2023 is anticipated to be approximately 20%, reflecting ongoing tax credit investments [44] Other Important Information - The company recorded a provision for credit losses of $20 million in Q1, down from $25 million in the previous quarter [12] - The average loan-to-deposit ratio was 88% in Q1 2023 [32] - The company declared a quarterly common dividend of $0.48, payable on May 15, 2023 [88] Q&A Session Summary Question: How has the recent banking disruption affected deposit strategies? - Management stated that the strategy remains conservative, focusing on maintaining a diversified deposit base and avoiding concentration in any particular client or sector [48][52] Question: What is the outlook for commercial real estate? - Management acknowledged concerns in the market but emphasized that their portfolio is well-positioned with low loan-to-value ratios and proactive customer engagement [59][66] Question: Are there opportunities for capital deployment in the current market? - Management indicated that while the market is uncertain, they are always looking for opportunistic investments and maintaining a strong capital position [95][96]

Workforce and Diversity - As of December 31, 2022, the Company had 3,155 full-time equivalent employees, with a compensation and employee benefits expense of $477.6 million, representing 56% of total noninterest expense[29] - The Company achieved 20% internal promotions in 2022, with over 600 employees advancing their careers[35] - The workforce composition as of December 31, 2022, included 62% female employees and 74% Asian minorities[31] - The Company is the largest FDIC-insured, minority-operated depository institution in the U.S., serving diverse communities across eight states[30] - Employee participation in the 401(k) plan was 94% as of December 31, 2022[36] - The Company’s commitment to diversity is reflected in its Board composition, which received the "Best Board" ranking in Bank Director's 2022 study[32] Financial Performance - Net income for 2022 reached $1,128,083, representing a 29.2% increase compared to $872,981 in 2021[374] - Earnings per share (EPS) for 2022 was $7.98, up from $6.16 in 2021, reflecting a 29.5% increase[372] - Total interest and dividend income for 2022 was $2,321,231, an increase of 43.4% from $1,618,734 in 2021[372] - Net interest income after provision for credit losses rose to $1,972,381 in 2022, up 25.9% from $1,566,571 in 2021[372] - Total noninterest income increased to $298,666 in 2022, a rise of 4.4% from $285,895 in 2021[372] - Total noninterest expense for 2022 was $859,393, an increase of 7.9% from $796,089 in 2021[372] Capital and Regulatory Compliance - East West Bank is classified as "well capitalized" as of December 31, 2022, exceeding the minimum capital adequacy requirements including a capital conservation buffer[51] - The Bank is required to maintain a minimum CET1 capital ratio of at least 4.5% to risk-weighted assets under Basel III Capital Rules[51] - The Bank's capital ratios include a total risk-based capital ratio of at least 8.0% to risk-weighted assets[51] - The Company adopted a five-year transition for the current expected credit loss accounting standard (CECL) in 2020, with effects being phased in from January 1, 2022, to December 31, 2024[54] - The Bank is subject to various statutory and regulatory restrictions on its ability to pay dividends, which may be limited based on its financial condition[64] Economic and Market Risks - The Bank's operations are particularly susceptible to adverse economic conditions in California, which could impact its consumer and commercial business[87] - Economic and political tensions between the U.S. and China, including tariffs, may negatively impact the company's business and customer demand[88] - The ongoing impacts of the COVID-19 pandemic, including inflation and supply-demand imbalances, may continue to adversely affect the company's financial condition[91] - Rising interest rates may lead to increased funding costs and lower loan production, adversely affecting net interest income and overall profitability[95] - Inflationary pressures, exacerbated by geopolitical events, could negatively impact consumer and business confidence, affecting the company's results of operations[96] Credit and Loan Management - The allowance for credit losses may not be adequate to cover actual losses, potentially leading to significant adverse effects on operating results[109] - The company has a concentration of real estate loans in California, which could result in higher credit losses if the California real estate market deteriorates[111] - The provision for credit losses was $73,500 in 2022, a reversal from a credit loss of $(35,000) in 2021[381] Operational and Compliance Risks - Cybersecurity risks have increased significantly, with potential for material harm to operations and reputation due to breaches or attacks[118] - Compliance with evolving privacy laws and regulations is critical, as mishandling personal information could lead to litigation and regulatory fines[121] - The company faces significant financial and reputational risks from lawsuits, which could lead to substantial financial obligations and impact customer retention[134] - Maintaining good standing with regulators is crucial for business continuity, as violations could lead to enforcement actions and reputational damage[129] Growth and Expansion - The company is considering further expansion through acquisitions, which may lead to integration challenges and potential dilution of existing stockholders' interests[126] - The company operated in over 120 locations in the U.S. and China as of December 31, 2022, indicating continued market presence and expansion[387] Asset Management and Valuation - The Company tests goodwill for impairment annually, and significant declines in expected cash flows could necessitate future impairment charges[137] - The Company applies a zero credit loss assumption to certain HTM debt securities that are guaranteed or issued by the U.S. government or government-sponsored enterprises[410] Tax and Regulatory Changes - The Inflation Reduction Act of 2022 includes tax measures that may affect the Company's operations, such as a corporate alternative minimum tax and an excise tax on stock buy-backs[82] - The Anti-Money Laundering Act of 2020 introduced significant changes to U.S. AML law, including new beneficial ownership reporting requirements and enhanced penalties for violations[73]

EWBC Earnings Results Fourth Quarter and Full Year 2022 January 26, 2023 Forward-Looking Statements This presentation contains forward-looking statements that are intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of the management of East West Bancorp, Inc. (the "Company") and are subject to significant risks and uncertainties. You should not place undue reliance o ...

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 September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commis ...

East West Bancorp, Inc. (NASDAQ:EWBC) Q3 2022 Earnings Conference Call October 20, 2022 11:30 AM ET Company Participants Julianna Balicka - Head of IR Dominic Ng - Chairman and CEO Irene Oh - CFO Conference Call Participants Ebrahim Poonawala - Bank of America Merrill Lynch Chris McGratty - KBW Clark Wright - D.A. Davidson Jared Shaw - Wells Fargo Brandon King - Truist Securities Operator Good day, and welcome to the East West Bancorp Third Quarter 2022 Earnings Call. All participants will be in a listen - ...

| --- | --- | |-----------------------------------------------------------|-------| | | | | | | | EWBC Earnings Results Third Quarter 2022 October 20, 2022 | | ANK Forward-Looking Statements Forward-Looking Statements This presentation contains forward-looking statements that are intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of the management of East West Banco ...